DEPARTMENT OF DEFENSE APPROPRIATION BILL, 1982

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November 14, 1981
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Approved For Release 2007/03;/03: CIA-RDP89M00610R000100040021-9 [Committee Print] NOTICE This is a draft only, subject to chance until approved by the full Committee Calendar No. 000 97TH CovoRESS 1 SENATE J REPORT 1st Session J 1 No. 97-000 DEPARTMENT OF DEFENSE APPROPRIATION BILL, 1982 NOVEMBER 00 (legislative day, NOVEMBER 00), 1981.-Ordered to be printed Mr. STEVENS, from the Committee on Appropriations, submitted the following REPORT [To accompany H.R. 0000] The Committee on Appropriations, to which was referred the bill (H.R. 0000) making appropriations for the Department of Defense for the fiscal year ending September 30, 1982, and for other purposes, reports the same to the Senate with various amendments. Information is herewith presented relative to the changes made: Amount of bill as passed House (new obligational authority) ............................................................................ $194,532,083,000 Amount of increase recommended by Senate Committee .......................................................................... 13,827,546,000 Total of bill as reported to Senate ......................... 208,359,629,000 Amount of 1982 budget estimate (new obligational authority) ............................................................................ 200,878,234,000 Amount of 1981 appropriations ......................................... 171,350,899,000 The bill as reported to the Senate: Over the fiscal year 1982 budget estimate ................ 7,481,395,000 Over appropriations for fiscal year 1981 ................... 37,008,730,000 DEFENSE REPORT-01 November 14, 1981 6:21 PM roved For Release 2007/03/03: CIA-R DP89M00610R0001000 449r Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 CONTENTS General discussion: Purpose of the bill .......................................................................................................... Significant items and major changes in House bill ................................................. Hearings ............................................................................................................................ Summary of bill .............................................................................................................. Fiscal year 1981 budget amendments ......................................................................... Relationship to authorization ........................................................................................ Compliance with paragraph 8, rule XVI, Standing Rules of the Senate............ Compliance with section 308 of the Budget Control Act ...................................... Reprograming of appropriated funds .......................................................................... TITLE I-MILITARY PERSONNEL General discussion and Committee recommendations ..................................................... Military personnel, Army ...................................................................................................... Military personnel, Navy ....................................................................................................... Military personnel, Marine Corps ........................................................................................ Military personnel, Air Force ............................................................................................... Reserve personnel, Army ........................................................................ ............................... Reserve personnel, Navy ....................................................................................................... Reserve personnel, Marine Corps ........................................................................................ Reserve personnel, Air Force ............................................................................................... National Guard personnel, Army ........................................................................................ National Guard personnel, Air Force ................................................................................. TITLE II-RETIRED MILITARY PERSONNEL Retired pay, Defense .............................................................................................................. TITLE III-OPERATION AND MAINTENANCE General discussion and Committee recommendations ..................................................... Operation and maintenance, Army ...................................................................................... Operation and maintenance, Navy ...................................................................................... Operation and maintenance, Marine Corps ..................................................................... Operation and maintenance, Air Force .............................................................................. Air Force Stock Fund ............................................................................................................ Operation and maintenance, Defense Agencies ................................................................ Defense Stock Fund ............................................................................................................... Operation and maintenance, Army Reserve ...................................................................... Operation and maintenance, Navy Reserve ....................................................................... Operation and maintenance, Marine Corps Reserve ....................................................... Operation and maintenance, Air Force Reserve ............................................................... Operation and maintenance, Army National Guard ........................................................ Operation and maintenance, Air National Guard ............................................................ National Board for the Promotion of Rifle Practice, Army .......................................... Claims, Defense ....................................................................................................................... Court of Military Appeals ..................................................................................................... TITLE IV-PROCUREMENT Aircraft procurement, Army .................................................................................................. Missile procurement, Army ........................................ ........................................................... Procurement of weapons and tracked combat vehicles, Army ...................................... Procurement of ammunition, Army .................................................................................... November 14. 1981 6:21 PM pr roved For Release 2007/03/03: CIA-RD P89M0061 OR00010004 -$J.bs Approved For Release 2007/03/03: CIA-RDP89M00610R000100040021-9 Other procurement, Army ..................................................................................................... Aircraft procurement, Navy .......... ........................................................................................ Weapons procurement, Navy ......................... Shipbuilding and Conversion, Navy .................................................................................... Other procurement, Navv ...................................................................................................... Procurement, Marine Corps .................................................................................................. Aircraft procurement, Air Force .......................................................................................... Missile procurement, Air Force ........................................................................................... Other procurement, Air Force .............................................................................................. Procurement, Defense Agencies ........................................................................................... TITLE V-RESEARCH, DEVELOPMENT, TEST AND EVALUATION General discussion ................................................................................................................... Research, development, test and evaluation, Army ......................................................... Research, development, test and evaluation, Navy .......................................................... Research, development, test and evaluation, Air Force .................................................. Research, development, test and evaluation, Defense Agencies .................................... Director of Test and Evaluation, Defense ........................................................................ TITLE VI-SPECIAL FOREIGN CURRENCY PROGRAM Special foreign currency program ........................................................................................ TITLE VII-GENERAL PROVISIONS General provisions .................................................................................................................. TITLE VIII-RELATED AGENCIES Intelligence community staff ................................................................................................. Payment to the CIA retirement and disability system fund .......................................... Jacket No. 00-000 DEFENSE REPORT-01 November 14. 1981 6:21 PM Abbroved For Release 2007/03/03: CIA-RPP89M00610R00010004 1lg bx Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 BACKGROUND PURPOSE OF THE BILL The purpose of this bill is to make appropriations for the military functions of the Department of Defense for the period October 1, 1981 through September 30, 1982. Functional areas include the pay, al- lowances and support of military personnel, operation and maintenance of the forces, procurement of equipment and systems, and research, development, test and evaluation. Appropriations for military assistance, military construction, family housing and civil defense are provided in other bills. The Subcommittee on Department of Defense Appropriations began hearings on the fiscal year 1982 budget request on March 9, 1981, and concluded them on October 28, 1981, after 32 separate sessions. The subcommittee heard testimony from representatives of the Department of Defense, other Federal agencies, and from the general public. Approximately 8,000 pages of transcript were taken, the unclassified por- tions of which constitute the six-volume public record of testimony on this budget request. SUMMARY OF BILL The Committee considered a total fiscal year 1982 budget request of $200,878,234,000 for the military functions of the Department of Defense, excluding military assistance, military construction, family hous- ing and civil defense. FIscAL YEAR 1982 BUDGET AIMEND t rs Since submission of the fiscal year 1982 budget in January by President Carter, the Reagan administration has transmitted two major budget amendments to the Congress. The first amendment was sub- mitted on March 10, 1981 (printed as H. Doc. 97-29). This amendment requested an additional $25.1 billion in new budget authority above the original fiscal year 1982 request. These additional funds were requested to finance a significant expansion in the military budget with emphasis on readiness and modernization. The second major budget amendment was submitted to the Congress on October 15, 1981 (printed as H. Doc. 97-101). This amendment reduced $7.29 billion from the request. The Committee considered both of these budget amendments and three smaller amendments along with the original fiscal year 1982 re- quest. November 14,1981 6:21 PM roved For Release 2007/03/03: CIA-RDP89M0061 OR00010004001 c /I Approved For Release 2007/03/03: CIA-RDP89M00610R000100040021-9 RELATIONSHIP To AUTHORIZATION Appropriations for the procurement of aircraft, missiles, naval vessels, tracked combat vehicles, torpedoes, and other weapons, operations and maintenance expenses, and for research, development test and evalua- tion require annual authorization pursuant to the provisions of section 412(b) of Public Law 86-149, as amended. As previously noted, the total fiscal year 1982 budget request con- sidered by the Committee was $200,878,234,000. Of this amount, $130,567,451,000 or 65 percent required authorization. The following table depicts these amounts and compares them with levels authorized in the Department of Defense Appropriation Authorization Act, 1982. [In thousands of dollars] Budget Committee estimate recommendation Change Procurement ............................................... $47,660,498 $48,000,598 +$340,100 R.D.T. & E .................................................. 20,319,388 20,402,030 +82,642 Operations and maintenance ................... 62,161,252 62,161,740 +488 Special foreign currency program........... 3,083 3,083 ....................... Total ................................................. 130,144,221 130,567,451 + 423,230 COMPLIANCE Wrrx PARAGRAPH 8, RULE XVI, STANDING RULES OF THE SENATE The recommendations of the Committee include amendments which are not made to carry out provisions of existing law, and are brought to the attention of the Senate in accordance with rule XVI of the Standing Rules of the Senate. The amendments are: 1. A new general provision which states that, none of the funds made available by this Act shall be used in any way for the leasing in the United States of military aircraft or vehicles for which suitable aircraft or vehicles are commercially available in the private sector. 2. A new general provision which states that, during the current fiscal year, for the purpose of conducting a test to evaluate a capitation ap- proach to providing medical care and to that end for the purpose of providing adequate funds in Department of Defense Medical Regions 1 and 7 for medical care, including the expenses of the Civilian Health and Medical Program of the Uniformed Services, funds available to the Department of Defense in the appropriation "Operation and Maintenance, Defense Agencies" for expenses of the Civilian Health and Medical Program of the Uniformed Services may be transferred to ap- propriations available to the military departments for operation and main- tenance and funds available to the military departments for operation and maintenance my be transferred between such appropriations: Provided That funds transferred pursuant to this authority shall be merged with and made available for the same purpose as the appropriation to which transferred Provided further, That the Secretary of Defense shall notify the Congress promptly of all transfers made pursuant to this authority: Provided further, That transfer authority provided herein shall be in addi- tion to that provided in section 733 of this Act. Jacket No. 00-000 DEFENSE REPORT-01 Approved For Release 2007/03/03: CIA-RDP89MOO61 OR000100000$,V. 4,1981 6:21 PM Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 3. A new provision which states that, not to exceed $1,700,000 of the funds available to the Department of Defense for Reserve Personnel shall be available for transfer to appropriations available to the Federal Emergency Management Agency. 4. Under Shipbuilding and Conversion, Navy: To remain available for obligation until September 30, 46 1988: Provided, That of the ap- propriation for "Shipbuilding and Conversion, Navy, " that expired for obligation on September 30, 1981, $119,000,000 shall remain available for obligation until September 30, 1983 For acquisition, construction and improvement, Coast Guard, $300,000,000, to be transferred to the Coast Guard: "Acquisition, Con- struction and Improvements"; RAPID DEPLOYMENT Jor cr TASK FORCE The creation of the rapid deployment joint task force (RDJTF) was an important step in revitalizing U.S. force projection capabilities. Given the importance of the Persian Gulf Region, the efforts of the RDJTFF have been formally directed to that region. The Committee is concerned, however, about the absence of an organized effort to plan and provide for possible power projection requirements in other parts of the world which are also critical to U.S. interests, including the Caribbean. The Committee is also concerned about the present com- mand and control relationships of the RDJTF with the National Command Authority as well as the joint nature of the task force. The Committee views with favor the Secretary of Defense's announce- ment on April 24, 1981, that the RDJTF should evolve within several years into a separate unified command with its own geographic respon- sibilities, service components, forces, intelligence, communications, logis- tics facilities and other support elements. While the creation of a separate unified command in the future may solve current deficiencies, the Committee remains concerhed about what command and control relationships will apply in the interim. To date, the joint task force nature of the present RDJTF has failed to create both plans and organization necessary to meet the Lhreats which the United States may face in Third World areas throughout the 1980's. However, the Committee notes that the traditional role of the U.S. Marine Corps and its current force structure have been designed as one appropriate to quick response to crises around the world. The Committee, therefore, directs the Secretary of Defense to desig- nate the U.S. Marine Corps as the lead service for command and plan- ning of the RDJTF missions. It is the belief of the Committee that the Marine Corps with Navy support is most capable of meeting the mis- sions of the RDJTF. The Secretary of Defense is also directed to provide the Marine Corps and the Navy with the equipment, logistical support, and authority necessary to meet their RDJTF mission. DEPARTMENT OF DEFENSE EFFICIENCY AND COST SAVINGS The Committee supports the need for increased defense spending to meet the threats to U.S. national security interests in the 1980's. The major increase in Soviet defense spending throughout the 1970's as well Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 as Sovient adventurism in Africa, Asia, and Latin America pose a serious threat to U.S. security interests throughout the world. The Committee is also committed to the reduction of overall Federal spending to meet the goals of a balanced budget as well as a sound economy. U.S. national security must be based on a strong economy. The Committee, therefore, views with favor the efforts of the Department of Defense to combat waste, fraud, and abuse within the Department as well as to undertake efforts to make defense programs more efficient. The Congress has provided the Department of Defense with the necessary legislation to use multiyear funding where appropriate. The Committee intends to recommend funds for multiyear funding in those programs where there is low technological risk and where cost savings can be realized. Further, the Department is urged to revise DOD Directive 7200.4 to accommodate the new legislation providing authority for multiyear funding. It is the Committee's understanding that many of the reforms proposed by the Deputy Secretary of Defense can be implemented inter- nally within the Department. The Committee urges the Department to implement these reforms as quickly as possible including, but not limited to, increased use of firm-fixed price contracting, increased use of past performance in source selection, greater competition in both R. & D. and procurement stages of programs, and increased R. & D. funding and competition at the lower-tiered producer level. The Committee is also concerned about the high cost of new programs and directs the Department to provide to the Committee a design-to-cost analysis for all new procurement items. While U.S. strength lies in its technology, the use of high technology can result in cost inefficiency when inappropriately. utilized. The Committee also directs the Secretary of Defense to report to the Committee by March 1, 1982, what steps have been implemented in the Department of Defense to provide for increased efficiency in R. & D. and procurement. The Committee further directs the Secretary to report what proposals requiring congressional action would pro"ide for in- creased efficiency. The Committee has carefully analyzed inflationary trends in the na- tional economy, particularly as they apply to defense activities and pur- chases. Two points became vividly clear: the rate of inflation is not slow- ing to the degree projected in the President's budget, and inflation in defense activities and purchases continues to exceed by a substantial margin the national average. Although the budget anticipated an inflation rate of 8.7 percent for fiscal year 1981, the final composite figure was actually 13.3 percent. And there is no evidence yet that this rate has slowed markedly. These developments make it painfully apparent that the optimistic 8.4-percent inflation rate projection contained in the President's September budget revisions is not attainable. The impact of badly underestimating inflation is severe. It will cut back fiscal year 1981 program levels by more than $2 billion, and the Approved For Release 2007/03/03: CIA-RDP89M0061OR000100048b2~-41, Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 impact in fiscal year 1982 will be much the same if steps are not taken now to finance a more realistic rate. It should be noted parenthentically that the Committee foresaw this problem in its recommendations for supplemental appropriations in fiscal year 1981. Increased funding to minimize the erosion of inflation on the defense budget was recomended, but only a portion of that increase was finally accepted. Based on its analysis, the Committee is recommending an increase above the President's budget and above the authorization levels for fis- cal year 1982 totaling $1.6 billion, which is the amount needed to finance a 10-percent inflation rate. Even this projection is considered moderate, but it at least presents a more realistic approach to the economic realities confronting the Nation. This increase has been allocated as follows: Operation and maintenance .................................................................................. S525,000,000 Procurement .............................................................................................................. 887,000,000 Research, development, test and evaluation ...................................................... 197,000,000 These amounts in turn have been allocated among the various ap- propriation accounts for the services and defense agencies, and the Committee will expect the Department of Defense to report back on how these additions have been distributed among the various principal activities. The Committee is recommending a departure from tradition and including in the bill the funding necessary to support the military pay raises authorized earlier this year in Public Law 97-60, the Uniformed Services Pay Act of 1981. This unusual step is recommended because the regular Defense appropriation bill for fiscal year 1982 is being taken up so late in the session, more than 6 weeks into the new fiscal year. The recommendation also recognizes that, whenever possible, full fund- ing should be addressed in the regular appropriation bill and not deferred needlessly to a future session of Congress. It is the Committee's belief that, to the maximum extent possible, the full costs of the rapidly expanding defense budget should be clearly dis- played. Further, full funding of pay costs, including the October 1, 1981, increases, assures that program levels will not be degraded by a continuing need to absorb pay costs. The total increase recommended for these pay costs is $4.8 billion. REPROGRA.MrNG FLEXIBILITY In response to proposals from Department of Defense, the Committee has reviewed the reprograming guidelines that have been es- tablished for both transfers and reprograming actions. These guidelines include various thresholds on which the Department can shift funds within programs and appropriation accounts with only a simple notifica- tion to the congressional committees of jurisdiction. Beyond those thresholds, prior Committee approval in writing is required before any such transfers or reprogramings can occur. The Committee is aware that these thresholds have not changed in 18 years and that inflation has overtaken them. It is not the Committee's Jacket No. 00-000 DEFENSE REPORT-01 November 14.1981 6k21 Pal ooroved For Release 2007/03/03: CIA-ROP89M00610R000100040O 1819bx I Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 intent to encourage reprogramings and transfers, but it recognizes that a reasonable degree of flexibility is beneficial and economical so long as adequate congressional oversite is not impared. However, the threshold increases recommended to the Committee by the Department appear excessive. In each case they increase the current limitation five times over. The Committee instead is recommending a more moderate increase in the thresholds which are summarized in the following table: REPROGRAMING THRESHOLDS [In millions of dollars] Current DOD recom? mendation Committee recom- mendation Military personnel ......................................................... $5.0 $25.0 $15.0 Procurement: Increase .................................................................. 5.0 25.0 12.0 New start ................................................................ 2.0 10.0 5.0 R.D.T. & E.: Increase .................................................................. 2.0 10.0 5.0 New start (1 year cost) ........................................ 2.0 10.0 5.0 New start (3 year cost) ........................................ 10.0 50.0 15.0 COMPLIANCE WITH SECrION 308 OF THE BUDGET CONTROL Acr Section 308(a) of the Budget Control Act (Public Law 93-344) re- quires that this Committee include in its report specific budgetary in- formation on the status of recommended appropriations relative to the first concurrent resolution. The following table provides these data: BUDGETARY IMPACT OF H.R. 0000 PREPARED BY THE CONGRESSIONAL BUDGET OFFICE PURSUANT TO SEC. 308(a), PUBLIC LAW 93-344 [In millions of dollars] Committee Amount Committee Amount allocation in bill allocation in bill Comparison of amounts in the bill with the Committee allocation to its subcommittees of amounts in the First Concurrent Resolu- tion for 1982: Subcommittee on Defense... 0 0 0 0 Projections of outlays associated with budg- et authority recommended in the bill: 1982 ........................................................................................................... 1983 ........................................................................................................... 1984 ........................................................................................................... 1985 ........................................................................................................... 1986 and future year ............................................................................... Financial assistance to State and local gov- ernments for 1982 in the bill ....................... Includes outlays from prior-year budget authority. 2 Excludes outlays from prior-year budget authority. Jacket No. 00-000 DEFENSE REPORT-01 er 14,1981 6:21 PM AnnrnvPri Far RPl a 2007/03/03 IA-RDP89M0061 OR00010004 ` I ,,r Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 REPROGRAMNGG OF APPROPRIATED FuN. TDs In its report on the fiscal year 1974 Defense appropriations bill (S. Rept. 93-622), the Committee directed the Department of Defense to utilize the available reprograming flexibility in order to meet unanticipated or higher than programed funding requirements. For fis- cal year 1981 the Committee considered 50 reprogramings with a total dollar value of $936.9 million. Forty-four of these reprogramings were approved by the Congress either in whole or in part. The total amount approved was $789.1 million. A statistical summary of these reprogram- ing actions during the last decade is shown below: DEPARTMENT OF DEFENSE REPROGRAMINGS [Dollars in millions] Value of program Number of increase actions proposals Fiscal year: 1970 .......................................................................................... 129 2,431 1971 .......................................................................................... 132 3,266 1972 .......................................................................................... 82 1,866 1973 .......................................................................................... 56 1,453 1974 .......................................................................................... 24 219 1975 .......................................................................................... 45 1,446 1976 (and transition quarter) ................................................. 43 791 1977 .......................................................................................... 55 1,036 1978 .......................................................................................... 66 1,237 1979 .......................................................................................... 60 1,163 1980 .......................................................................................... 71 1,217 1981 .......................................................................................... 50 937 Jacket No. 00-000 DEFENSE REPORT-01 Aooroved For Release 2007/03/03: CIA-RDP89MOO61 OR000100040U21iV. er 14, 1981 6:21 PM Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 MILITARY PERSONNEL Funds appropriated under this title provide for the pay, allowances, subsistence, permanent change of station. travel, and various other en- titlements of the uniformed members of our Armed Forces. The level of active duty military personnel requested in the President's fiscal year 1982 budget is 25,700 above the actual for the end of fiscal year 1981, while the average strength of the Reserve components requested by the administration is 41,800 above the fiscal year 1981 level. The following tables display major elements of the fiscal year 1982 re- quest for military personnel. The functions and activities for which ap- propriations are made are described briefly below: Pay and allowances.-A total of $30.1 billion is requested for the pay and other entitlements of active duty officers, enlisted personnel and cadets at the military academies. This includes basic pay, special and in- centive pays, quarters, uniform and subsistence-except in the case of enlisted personnel-allowances, separation allowances, the U.S.Govern- ment's contribution to the social security fund and other applicable allowances. This function also includes enlistment and reenlistment bonuses in the case of enlisted personnel. Subsistence of enlisted personnel.-This activity reflects the cost of feeding enlisted personnel, either, for food served in dining halls-sub- sistence-in-kind-or in the form of cash allowances for those members authorized to subsist elsewhere. A total of $2.2 billion is requested for this activity in fiscal year 1981. Permanent change of station travel (PCS).-The $2.8 billion requested for this activity in fiscal year 1982 supports the rotation of military per- sonnel between permanent duty stations. It covers the cost of travel of the member and his dependents, either by commercial or organic means, per diem allowances at prescribed rates, transportation and non- temporary storage of household goods, and other related costs. Other military personnel costs.-The $12.9 million requested for this activity provides funds for the apprehension of military deserters, ab- sentees, and escaped military prisoners; and for the payment of death gratuities to beneficiaries of deceased military personnel. Guard and Reserve paid drill and initial training.-The $2.4 billion re- quested for this activity includes the costs of the Selected Reserve, mem- bers of which attend prescribed numbers of inactive duty training as- semblies, ranging from 24 to 48 drill periods per year, as well as 2 weeks active duty for training annually. Other training and support.-This activity, budgeted at $1 billion, sup- ports school and special training for Reservists, administration and sup- port of Guard and Reserve units, and the costs of those members of the individual Ready Reserve who perform only 2 weeks active duty for training each year. This activity also includes the costs to support per- Jacket No. 00-000 DEFENSE Rept.-02 November 14,1981 5:35 PM Approved For Release 2007/03/03: CIA-RDP89M0061 OR00010004 3 2-i1,9x Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 sonnel undergoing training through the Reserve Officers Training Corps and the health professions scholarship program to become commis- sioned officers of the Armed Forces. MILITARY PERSONNEL FISCAL YEAR 1982 BUDGET REQUEST (Dollars in thousands) 1981 actual 1982 estimate 1983 recommended Requested funding by service component: Army ........................................................... $12,148,300 $12,631,700 $14,095,781 Navy ........................................................... $8,920,295 $9,340,090 $10,453,767 Marine Corps ............................................ $2,640,700 $2,807,870 $3,151,526 Air Force ................................................... $10,022,721 $10,440,820 $11,688,381 Army Reserve ........................................... $869,300 $955,200 $1,054,750 Navy Reserve ............................................ $318,758 $329,020 $361,643 Marine Corps Reserve ............................. $120,357 $138,920 $152,212 Air Force Reserve .................................... $277,360 $298,848 $326,399 Army National Guard ............................... $1,168,200 $1,229,100 $1,468,136 Air National Guard ................................... $386,209 $418,192 $475,078 Military manpower: Active Forces (in end strength): Army ............................................................ 781,100 780,300 780,300 Navy ........................................................... 540,200 554,700 554,700 Marine Corps ............................................ 190,600 192,100 192,100 Air Force ................................................... 570,300 580,800 580,800 Total Active Forces .............................. 2,082,200 2,107,900 2,107,900 The Guard and Reserve: Army Reserve ........................................... 215,800 235,300 235,300 Navy Reserve ............................................ 87,700 87,600 87,600 Marine Corps Reserve ............................. 35,800 37,600 37,600 Air Force Reserve .................................... 59,200 62,800 62,800 Army National Guard ............................... 376,800 392,800 392,800 Air National Guard ................................... 97,200 98,600 98,600 SUMMARY OF COMMrITEE. ACTION The Committee is recommending a total of $43,227,673,000 in ap- propriations for Active and Reserve personnel costs in fiscal year 1982. This amount is $4,567,913,000 above the budget request. Explanation of the Committee's actions can be found in the following pages. MILITARY STRENGTH ADJUSTMENTS For the Active Forces, military manpower is authorized each year in terms of end strength, while for the Reserve components the annual authorization is in terms of average strength. The fiscal year 1982 De- fense Authorization Act increased the authorization of the Active Forces by 42,444, over the fiscal year 1981 level, and raised the average DEFENSE Rept.-02 November 14,1981 5:35 PM roved For Release 2007/03/03: CIA-R DP89M00610R0001000 2419x /I Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 strength of the reserve forces by 64,700. The table below summarizes the adjustments in the fiscal year 1982 authorization to the Services manpower requests: Budget request Authorization Change conference from report budget Active Forces: Army ........................................................... 780,300 Navy ........................................................... . 554,700 Marine Corps ............................................ 192,100 Air Force ................................................... 580,800 Reserve Forces: Army Reserve ........................................... 235,300 Navy Reserve ............................................ 87,600 Marine Corps Reserve ............................. 37,600 Air Force Reserve .................................... 62,800 Army National Guard ............................... 392,800 Air National Guard ................................... 98,600 780,300 ...................... 554,600 -100 192,100 ...................... 580,800 ...................... 235 , 300 ...................... 87,600 ...................... 37,600 ...................... 62,800 ...................... 392,800 ...................... 98,600 ...................... The military personnel budget requests are driven primarily by the average strength, or man-year programs, which the services estimate are required to meet their end strength goals. The end strength goal, how- ever, does not automatically dictate a specific man-year program. Estimates for accession planning, attrition and retirements, for example, must be considered in establishing the total man-year program neces- sary to meet the authorized end strength. AcrwE FORCES For the Active Forces, the Committee recommends appropriations totaling $39,389,455,000. This is $4,168,975,000 above the budget re- quest. Military manpower and pay adjustments.-The revised Department of Defense fiscal ' year 1982 budget request reflecting strategic program changes adjusted the manpower and pay of the active Army and Air Force. As regards the former, military end strength for fiscal year 1982 will be held to 780,300, a 6,000 reduction from the original budget re- quest. This action, together with earlier payment of selective reenlist- ment bonuses, has resulted in a net reduction of $52.2 million from the original budget request. The Air Force has adjusted its budget request by a $116 million reduction. Its projected end strength has likewise de- creased 6,000 for a total of 580,800. Additionally, savings in the areas of overseas station allowances, permanent change of station moves, and basic allowance for quarters have been made. DEFENSE Rept.-02 November 14,1981 5:35 PM Approved For Release 2007/03/03: CIA-RDP89M0061OR00010004 22 9bx Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 In another effort to improve military compensation levels and redress personnel shortages throughout the services, Congress passed the Uni- formed Services Pay and Benefits Act of 1981, Public Law 97-60. The purpose of this bill is to increase the pay, allowances, and benefits for members of the military services and certain dependents. The legislation provides for variable increases in the basic pay and allowances for mem- bers, depending on grade and years of service. It also authorizes in- creases in the amounts payable, establishes new authority or modifies ex- isting authority for flight pay, diving duty pay, enlistment bonuses, bonuses for nuclear-qualified officers, hazardous duty pay, and al- lowances for Armed Forces health professions scholarship program par- ticipants. Additionally, the bill provides new authority for temporary lodging entitlements, advance payment of certain travel expenses in- curred in conjuction with permanent change of station moves, travel al- lowances for military members and dependents stationed at certain ad- verse overseas locations or in conjunction with certain emergencies, and it establishes certain limitations on travel and transportation entitle- ments for members separating or being released from active duty. Finally, the bill increases the number of senior Reserve Officers' Train- ing Corps (ROTC) scholarships for the Navy and Air Force, provides extended and increased authority for reimbursement of military mem- bers for alternate quarters when ship-board quarters are uninhabitable, and makes several amendments to enhance the administration of military justice. It is estimated by the Department of Defense that the Uniformed Services Pay and Benefits Act of 1981 requires the following funding for both entitlements and discretionary pay: Military pay raise.-Basic allowance for subsistence (BAS), basic al- lowance for quarters (BAQ), and officer basic pay is increased by 14.3 percent. Enlisted basic pay increases from 10 to 17 percent. Cadet and midshipmen pay is increased 10 percent. Cost: $4,561,147,000. Hazardous duty pay.-Authority is provided for a new special pay for individuals engaged in especially hazardous duties or exposed to severe working conditions (for example, Titan missile fuel handlers). Officers will receive $110 per month; enlisted personnel will receive $83 per month. Enlisted pay for existing categories of hazardous duty such as flight pay is raised to $83 per month. Air weapons controller incentive pay is raised to $125 to $350 per month. Cost: $24,007,000. Aviation career incentive pay.-Officers with over 6 years of aviation service will receive $306 to $400 per month. Payment to officers with more than 25 years of service is allowed. Warrant officer pay rates are increased to the same rates as those of commissioned officers. Moreover, officers receiving the aviation officer continuation bonus are not authorized to receive increased flight pay. The bonus is not authorized in fiscal year 1982 for Air Force officers; authorization for Navy and Marine Corps aviators terminates at the end of fiscal year 1982. Cost: $57,293,000. Submarine duty incentive pay.-This pay is increased for those of- ficers who have served enlisted duty, since this duty will no longer be counted toward total years of service in determining submarine pay Jacket No. 00-000 DEFENSE Rept.-02 November 14, 1981 5:35 PM A-RDP89MOO61OR00010004R6018- Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 eligibility. Moreover, ballistic missile submarine crews on shore rotation will now be entitled to career sea pay. Cost: $7,200,000. Diving duty pay.-This is increased to a maximum $200 per month for officers and $300 per month for enlisted personnel. Additionally, persons receiving this pay are now entitled to receive one other type of hazardous duty incentive pay. Cost: $5,155,000. Enlistment and reenlistment bonuses.-The maximum enlistment bonus for active duty personnel in critical skills is raised from $5,000 to $8,000. A 2-year test program of a $4,000 bonus for 3-year enlistments of high school graduates in Army critical skills is also authorized. Additionally, any unserved period of an enlistment for which no reen- listment bonus has been paid may be considered part of an immediately subsequent term of reenlistment for the purpose of computing reenlist- ment bonuses. Cost: $75,689,000. Nuclear officer bonuses.-A $8,000 bonus is now offered to nuclear qualified officers serving under an agreement executed prior to the new bonus provisions enacted January 1, 1981. Additionally, a $3,000 acces- sion bonus for surface nuclear power applicants is now authorized. Cost: $309,000. Engineering and scientific career continuation pay.-$3,000 per year is now authorized to engineering and scientific officers having 3 to 19 years of service. Cost: $3,700,000. Travel and transportation.-Reimbursement is authorized only when travel is actually performed. Any authorized travel and transportation benefit must be used within 180 days of separation or release from ac- tive duty. Savings: $14,197,000. Mileage allowance.-This is authorized for the shipment of vehicles in connection with a permanent change of station. Cost: $17,108,000. Temporary lodging allowance (TLA).-This is authorized for expenses incurred as a result of a permanent change of station move, not to exceed $110 per day for up to 4 days. This allowance is limited to 2 days within the continental United States when a member moves from the continental United States to overseas. Cost: $95,125,000. Basic allowance for quarters (BAQ) and variable housing allowance (VHA).-BAQ and VHA are authorized for those members deprived of shipboard quarters. Cost: $6,300,000. Reserve Officer Training Corps (ROTC) scholarships.-These are in- creased to a maximum of 8,000 for the Navy and 9,500 for the Air Force. Cost: $659,000. The fiscal year 1982 budget request did not include any of the funds necessary to pay these new entitlements and discretionary pay. Never- theless, it is traditional that entitlements except the pay raise and certain discretionary pay-authorized after the budget request is submitted- are funded in an appropriations bill, with the pay raise funded via a supplemental budget appropriation. Indeed, the fiscal year 1981 appro- priations bill funded the entitlements of the Nunn-Warner amendment and the fiscal year 1981 authorization bill-except the 11.7 percent pay raise. Discretionary pay not funded in the fiscal year 1981 appropria- tions bill was funded via subsequent reprograming or supplemental requests. DEFENSE Rept.-02 November 14. 1981 5:35 PM roved For Release 2007/03/03: CIA-RDP89M0061OR0001000A4Wfil-t! Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 The Committee recommends a chance in the traditional method of funding new entitlements and discretionary pay. Because military per- sonnel pay entitlements are must pay items and because the Committee finds no disagreement with the discretionary pay authorized by the fis- cal year 1982 Defense Authorization Act, it recommends funding what the Department of Defense estimates to be the cost of the 1981 Uni- formed Services Pay and Benefits Act. In this way, the full impact of military personnel costs are able to be immediately recognized and the necessity of a military pay supplemental request is eliminated. Bachelor cost-of-living allowance (COLA).-Military members sta- tioned in high-cost overseas areas receive a COLA to compensate them for the difference between average living costs at overseas stations and average living costs in the continental United States. All military person- nel stationed in designated high-cost overseas areas receive the al- lowance except single members living on military bases. Payment of a COLA in the overseas areas of Alaska and Hawaii is authorized by Title 37, U.S.C. 45. Since fiscal year 1980, the Depart- ment of Defense has requested funding to begin paying a COLA to single enlisted personnel who live in Government quarters and are au- thorized to eat in Government dining facilities. This request is based on the knowledge that military members living on base incur many of the excess expenses their counterparts living on the economy.incur. Car in- surance, dry cleaning, recreation, clothing, and transportation are only some of the items which must be purchased partially or wholly on the local economy. Hence, the provision of a partial COLA at a rate which is 47 percent that of military members without dependents would com- pensate single enlisted personnel for these costs, help alleviate the eco- nomic isolation of single enlistees, and insure a standard of living for single personnel which is equitable to that for married military mem- bers. Traditionally, the House has deleted funding for bachelor COLA. The rationale for the House action has been that individuals targeted to receive this new allowance are provided all their basic amenities by the Government at no cost to themselves. The Committee disagrees with the House rationale. Accordingly, it recommends payment of the budg- et estimate of $26 million for bachelor COLA. Career basic allowance for subsistence (BAS).-Career BAS is an im- portant initiative targeted toward retaining career enlisted personnel in grades E-5 to E-9. The President's budget proposed giving each service the option of allowing its career enlisted force a basic allowance for sub- sistence in lieu of subsisting-in-kind. About 59,000 careerists are ex- pected to opt for this new allowance. Because the Committee recognizes the positive impact this program will have on enlisted morale, it recom- mends that the full $36 million budget request be appropriated. Permanent change of station (PCS).-The Committee recommends an $83.8 million reduction to the $2.8 billion budget request for PCS. The basis of this reduction is threefold: (a) the President has endorsed an Office of Management and Budget initiative to reduce Government travel by $200 million through the implemenation of streamlined pro- DEFENSE Rept.-02 'November 14, 1981 5:35 PM Annrnved For Release 2007/03/03: CIA-RDP89M00610R00010004 119x Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 cedures and greater use of commercial travel services. The Department of Defense share of this savings is approximately $130 million, of which at least $80 million is expected to be achieved in this fiscal year. Accordingly, half of this amount will be taken out of the military personnel accounts; (b) rate increases for Industrial Fund charges and for anticipated inflation for Interstate Commerce Commission (ICC) Land and International Through Government Bill of Lading (ITGBL) household goods shipments materialized at a lower than projected rate for the past fiscal year. Accordingly, the Committee recommends a reduction of $40.7 million. (c) Based on fiscal year 1981 experience, funds to transport mobile homes are overbudgeted by $4.9 million. Additionally, the Committee recommends that the number of PCS moves budgeted for in the fiscal year 1982 budget request be main- tained at that level. An across-the-board reduction in the number of PCS moves had been considered but was rejected based on the follow- ing rationale: approximately 84 percent of fiscal year 1982 permanent change of station moves are associated with accession, separation or rotation moves. The remaining 16 percent are related to training, opera- tion, and unit moves. Because the Department of Defense must move people entering and leaving the service, the number of these moves re- mains fixed. A reduction in rotation and unit moves necessarily implies increased tour lengths and curtailed training regimens. Moreover, opera- tional moves are required to provide needed career development assign- ments, to support weapons systems changes to accommodate unit activa- tions and inactivations, to correct grade and skill imbalances, and to meet Navy sea/shore rotation requirements. For these reasons, 'the Com- mittee has determined that a cut in PCS moves to save money will result in a concomitant reduction in readiness, training, and morale. Unbudgeted reimbursement for air traffic controllers.-Because of the air traffic controllers strike, the Federal Aviation Administration is cur- rently reimbursing the Department of Defense for the services of military air traffic controllers. Accordingly, the Committee recommends an increase in the amounts reimbursable to the various military person- nel accounts. Reenlistment bonuses.-The Committee recommends fully funding the budget request of $628.5 million for reenlistment bonuses. The pres- ent method of awarding a lump-sum payment at the time of a military member's reenlistment is far more preferable to this Committee than is an alternative installment method, even though- the latter would save a substantial amount of money this fiscal year. The Committee is con- vinced that the lump-sum method has a greater positive impact on reen- listmethit rates than does the installment method. Indeed, the Depart- ment of Defense survey data have established that the same reenlist- ment behavior can be obtained from a lower lump-sum amount than from a higher amount paid in four installments. Foreign duty pay.-This special pay is paid to enlisted members resid- ing outside the contiguous United States in areas where many of the conventional living amenities are absent such as Diego Garcia, Alaska, and the Peoples Republic of China. Pay ranges from $8 to $22 per month and has not been revised since 1953. While the Committee con- sidered reducing this pay in an effort to pressure the Department of Jacket No. 00-000 DEFENSE Rept.-02 November 14, 1981 5:35 PM roved For Release 2007/03/03: CIA-RDP89M0061OR0001000416ffl- bbx Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 Defense to review its effectiveness, it has been determined that a severe reduction in this program would result in a negative impact on the morale of the 160,000 service members currently receiving foreign duty pay. Accordingly, the Committee expects the Department of Defense to review the necessity for and the effectiveness of foreign duty pay and to submit to the Committee a report on its recommendations no later than June 1, 1982. Subsistence.-For several years, the Committee has been concerned with Department of Defense management of food service programs, specifically in the accounting for meals and subsistence stocks in the military dining facilities. In response to this concern, the Defense Audit Service recommended in its May 1980 report the establishment of an automated headcount system to better control access to Department of Defense dining halls. In addition to correcting headcount and account- ing procedures, this automated system will be used to improve food ac- countability and control procedures. The Department outlined last year its incremental program to implement the recommendations of the Defense Audit Service. The primary emphasis of the program is on the use of a new plastic identification card which will establish diner eligi- bility for subsistence-in-kind (SIK) diners. At present, the Department of Defense plans to issue the new identification cards to active duty, retired, and dependent personnel during this fiscal year; issue should be complete by the end of fiscal year 1984. Use of the card and the automated system will prevent personnel from eating in several dining facilities during the same meal period and will identify those who return for additional servings within the same facility. Moreover, a special feature of the automated system will prevent the cashier from ringing up an SIK sale when the eligibility sib nal on the cash register indicates the individual must pay for the meal. In conformance with last year's action, the Committee recommends against any cut to subsistence funding penalizing the Department of Defense for poor dining controls. Indeed, the Committee is encouraged by the Department's action in this area. It recognizes that substantial budget cuts in subsistence will most likely result in a request for reprograming since people will have to be fed and the Department is continuing its efforts to correct subsistence abuse. The Committee recommends a budget reduction in SIK funding, however, since food cost increases to date have not occurred to the ex- tent forecast in the fiscal year 1982 budget estimate. Appropriations ac- counts are reduced by $27.3 million. Overseas station allowances.-Likewise, the costs of living overseas did not rise to the level anticipated because of the increased strength of the dollar in relation to foreign currency. The Committee recommends that these allowances be reduced by $20.8 million. Variable housing allowance (VHA).-This entitlement is designed to compensate military personnel for the difference between actual hous- ing costs and the BAQ. VHA is authorized for members when the average cost of housing exceeds the BAQ by 15 percent or more. The Committee recommends full funding of the budget estimate of this en- titlement. It recognizes that Department of Defense believes this budget request to be too low based on last month's annual survey; additional DEFENSE Rept.-02 November 14, 1991 5:35 PM roved For Release 2007/03/03: CIA-RDP89M0061 OR000100040b,22[*bc Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 funds for VHA, however, can be considered in a subsequent reprogram- ing request. Aviation officer continuation bonus.-The Committee recommends deletion of the $47 million request by the Air Force since the bonus is not authorized for fiscal year 1982. The Committee recommends fund- ing the Navy and Marine Corps bonus, however, since its authorization terminates at the end of this fiscal year. Like the Armed Services Committee, the Committee is concerned that the bonus has not been implemented as intended by Congress. It has not been targeted to those areas of critical need. Moreover, the Navy has disregarded the strong recommendations of the Appropri- ations Committee in its reprograming approval that the bonus award require a minimum 2-year commitment. The purpose of the recommen- dation was to prevent bonus recipients from aggrandizing their awards by signing up for numerous 1-year terms rather than a multiyear com- mitment. Since the bonus is based on basic pay, each annual renewal nets additional income. Most recent data from the Department of the Navy demonstrate that the overwhelming majority of aviators who signed up for only 1 year could have made longer commitments. Accordingly, these aviators can receive a higher bonus due to the recent 14.3 percent pay raise. The Committee therefore directs the Department of the Navy to eliminate the 1-year bonus option for both Navy and Marine Corps aviators. Funding of military support to the Federal Emergency Management Agency (FEMA).-The civil defense function performed by the De- partment of Defense was transferred to FEMA upon its establishment in 1979. Beginning in fiscal year 1981, FEMA reimbursed the Depart- ment for the services of individual reservists and reserve units that support civil defense. FEMA neglected to fund for these activities, however, in fiscal year 1982. The Department of Defense has made $1.6 million available for tranfer to FEMA so that individual mobilization designee support continues. The Committee recommends that these funds remain in the Army Reserve and Air Force Reserve appropria- tions accounts so that the subsequent tranfer of money from the De- partment to FEMA takes place. Individual Ready Reserve.-The Committee recommends a reduction of $11.672 million in the four reserve accounts since the Individual Ready Reserve bonus is not authorized for fiscal year 1982. Civilian technicians.-Based on last year's test to detemine the best mix of civilian/military technicians in the Reserve and Guard forces, the Air Force Reserve found that a higher percentage of civilian tech- nicians best suits its needs. The Air Force Reserve has requested that the miliatry personnel account be reduced by $4.6 million and the operations and maintenance account be increased by the same amount to fund its increased requirement for civilian technicians. The Com- mittee recommends that this request be honored. DEFENSE Rept.-02 November 14,1981 5:35 PM roved For Release 2007/03/03: CIA-RDP89M0061OR000100040 419x Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 MILITARY PERSONNEL, ARMY. 1981 appropriation ............................................................................................. S12,148,300,000 1982 budget estimate ......................................................................................... 12,631,700,000 House allowance ................................................................................................. Committee recommendation ............................................................................. 14,095,781,000 The Committee recommends an appropriation of $14,095,781,000 for fiscal year 1982. This is $1,464,081,000 above the budget request. All Committee recommended adjustments to the budget request, in- cluding those items discussed elsewhere in the report, are summarized below: Budget request Committee recommendation Basic. pay ............................................................................ $8,086,707 $9,569,976 Basic allowance for quarters ........................................... 934,404 928,604 Subsistence ........................................................................ 979,854 968,754 Incentive, hazardous duty, aviation pay ......................... 65,878 88,052 Physician and special pay ................................................ 86,728 86,728 Sea and foreign duty pay ................................................ 10,081 10,081 Diving duty pay .................................................................. 61 199 Reenlistment bonuses ....................................................... 139,316 139,316 Proficiency pay .................................................................. 61,518 34,718 Enlistment bonuses ........................................................... 89,039 104,039 Overseas extension pay ................................................... 1,256 1,256 Uniform and clothing allowances .................................... 176,186 176,186 Overseas station allowances ............................................ 140,102 158,202 Variable housing allowances ............................................. 161,890 161,890 Other allowances ............................................................... 24,683 24,683 Separation payments ......................................................... 106,498 106,498 Social security tax payments ........................................... 538,219 538,219 Permanent change of station .......................................... 1,103,100 1,074,600 Other military personnel costs ......................................... 5,040 5,040 Cadets ................................................................................. 27,540 27,540 Less reimbursables ........................................................... -106,400 -108,800 Displayed below are details of the Committee's adjustments: [In thousands of dollars] Budget request Committee recommendation NCO proficiency pay ......................................................... $26,800 -$26,800 Rate and fuel reductions ....................................................................... -22,300 PCS savings ............................................................................................ -14,500 Temporary lodging allowance .......................................... 37,891 -9,000 KATUSA rate error ................................................................................. - 100 Pay longevity ...................................................................... 8,086,707 -7,800 Basic allowance for quarters ........................................... 691,102 -5,800 Overseas station allowances ............................................ 140,102 -11,000 Air traffic controllers .............................................................................. -2,400 Trailer allowances ............................................................. 3,900 - 900 Subsistence ........................................................................ 979,854 -11,000 Pay and Benefits Act ............................................................................. +1,575,681 Noncommissioned officer proficiency pay.-This proposed pay would have paid monthly stipends of $90 to $150 to enlisted members in key DEFENSE Rept.-02 November 14,1981 5:35 PM of roved For Release 2007/03/03: CIA-RDP89M0061OR00010004@b!pk*bc Approved For Release 2007/03/03: CIA-RDP89M00610R000100040021-9 combat arms leadership positions at company, battery, and troop level. The pay was opposed by field commanders, however, and the request was subsequently withdrawn by the Army. The Committee, therefore, has deleted this funding from the Army budget estimate. Skill shortage pay.-This new discretionary pay program offers ap- proximately 11,000 enlisted personnel between $100 and $150 per month in high-technology specialties, such as air defense radar and mis- sile maintenance/electronics mechanics/communications equipment maintenance positions. Personnel must be on their second or subse- quent enlistment to qualify for this pay. The Committee recommends full funding of the $17,300,000 budget estimate since this pay is ex- pected to greatly improve retention rates in critical skill areas. Because this pay is a new initiative which will supplement personnel already receiving reenlistment bonuses, however, the Army is directed to report to the Committee no later than July 1, 1982, on the effect of this pay on critical skill retention. Miscellaneous reductions.-The Committee recommends a reduction of $7 million based on overstated pay longevity calculations; a $9 mil- lion reduction in temporary lodging allowances because of lower than expected inflation rates overseas; and a $5.8 million reduction based on a lower than expected number of personnel receiving this allowance in fiscal year 1982. Proposed Fort Ord reduction.-The Committee is concerned with the Army's plan to reduce the Seventh Infantry Division at Fort Ord, Calif., to cadre status. This unit is a highly mobile, light infantry divi- sion which is less costly to operate and maintain than heavier divisions. The Army is unable to provide the Committee with definite cost data on the planned fiscal year 1983 drawdown and the subsequent buildup in fiscal years 1986 and 1987. Recognizing that the proposed reduction of this unit to cadre strength is in its early planning stages and that the Army has not informed the Committee as to the costs and benefits of its proposal, the Committee instructs the Army that none of the funds appropriated by this act shall be used for a reduction in the size of the Seventh Infantry Division pursuant to a change in status of that division. Jacket No. 00-000 DEFENSE Rept.-02 November 14,1981 5:35 PM Anoroved For Release 2007/03/03: CIA-RDP89M00610R000100040>s}ZI?O.bx Approved For Release 2007/03/03: CIA-RDP89M00610R000100040021-9 MILITARY PERso\1EL, NAVY 1981 appropriation ............................................................................................... S8,893,095.000 1982 budget estimate ........................................................................................... 9,340,090,000 House- allowance ................................................................................................... Committee recommendation ............................................................................... 10,453,767,000 The Committee recommends an appropriation of $10,453,767,000 for fiscal year 1982. This is $1,113,677,000 above the budget request. All Committee recommended adjustments to the budget request, in- cluding those items discussed elsewhere in the report, are summarized below: Budget request Committee recommendation Basic pay ............................................................................ $5,628,217 $6,704,411 Basic allowance for quarters ........................................... 730,441 733,591 Subsistence ........................................................................ 724,599 714,799 Incentive, hazardous duty, aviation pay ......................... 155,775 177,109 Physician and special pay ................................................ 80,714 81,023 Sea and foreign duty pay ................................................ 173,922 168,522 Diving duty pay .................................................................. 2,249 7,137 Reenlistment bonuses ....................................................... 321,601 321,601 Proficiency pay .................................................................. 18,125 18,125 Enlistment bonuses ........................................................... 12,500 50,300 Other special pay .............................................................. 13 13 Uniform and clothing allowances .................................... 108,075 108,075 Overseas station allowances ............................................ 77,310 94,003 Variable housing allowances ............................................ 218,268 221,418 Other allowances ............................................................... 10,465 10,465 Separation payments ......................................................... 83,510 78,110 Social security tax payments ........................................... 374,420 374,420 Permanent change of station .......................................... 669,257 641,616 Other military personnel costs ......................................... 4,868 4,868 Midshipmen ........................................................................ 29,761 29,761 Less reimbursables ........................................................... -84,000 -85,600 Displayed below are details of the Committee's adjustments: [in thousands of dollars] Budget request Committee recommendation Rate and fuel reductions ....................................................................... -$18,400 PCS savings ............................................................................................ -9,500 Separation payments ......................................................... $83,510 -5,400 Sea pay .............................................................................. 169,269 -5,400 Overseas station allowances ............................................ 77,310 -7,700 Subsistence ........................................................................ 724,599 -9,800 Air traffic controllers .............................................................................. =1,600 Trailer allowances ............................................................. 1,700 -1,100 Pay and Benefits Act ............................................................................. +1,172,577 Miscellaneous reductions.-The Committee recommends a reduction of $5.4 million in separation payments since the level of payment for lump sum terminal leave is expected to decrease in this fiscal year, and a $5.4 million reduction in sea pay based on a refinement in the num- ber of officers entitled to this pay. Jacket No. 00-000 DEFENSE. Rept.-03 November 14. 1981 5:38 PM Anoroved For Release 2007/03/03: CIA-RDP89M00610R00010004l -231 x Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 MILITARY PERSONNEL, MARUNTE CORPS 1981 appropriation ............................................................................................... $2,633,300,000 1982 budget estimate ........................................................................................... 2,807,870,000 House allowance ................................................................................................... Committee recommendation ............................................................................... 3,151,526,000 The Committee recommends an appropriation of $3,151,526,000 for fiscal year 1982. This is $343,656,000 above the budget request. All Committee recommended adjustments to the budget request, in- cluding those items discussed elsewhere in the report, are summarized below: Budget request Committee recommendation Basic pay ............................................................................ $1,798,133 $2,125,654 Basic allowance for quarters ........................................... 196,644 196,644 Subsistence ........................................................................ 223,412 219,212 Incentive, hazardous duty, aviation pay ......................... 27,908 30,000 Physician special pay ...................................................................................................... Sea and foreign duty pay ................................................ 7,791 7,137 Diving duty pay .................................................................. 216 . 344 Reenlistment bonuses ....................................................... 57,936 72,936 Proficiency pay .................................................................. 5,478 5,478 Enlistment bonuses ........................................................... 10,930 16,719 Overseas extension pay .................................................................................................. Uniform and clothing allowances .................................... 51,820 51,820 Overseas station allowances ............................................ 21,464 25,679 Variable housing allowances ............................................ 56,484 56,484 Other allowances ......................................... I 3,209 3,209 Separation payments ......................................................... 30,459 28,559 Social security tax payments ........................................... 119,665 119,665 Permanent change of station .......................................... 205,105 200,970 Other military personnel costs ......................................... 2,252 ' 2,252 Cadets ............................................................................................................................... Less reimbursables ........................................................... -11,036 -11,236 Displayed below are details of the Committee's adjustments: [In thousands of dollars] Budget request Committee recommendation PCS savings ............................................................................................ -$2,900 Overseas station allowances ............................................ $21,464 -2,100 Reenlistment bonuses ....................................................... 57,936 + 15,000 Air traffic controllers .............................................................................. -200 Trailer allowances ............................................................. 900 -500 Subsistence ........................................................................ 223,412 -2,700 Separation payments ......................................................... 30,459 -1,900 Flight/sea pay rate errors ..................................................................... -654 Leave rations .......................................................................................... -1,500 Pay and Benefits Act ............................................................................. +341,110 Selective reenlistment bonus.-This bonus is offered to Marines who reenlist for a minimum of 3 years in critical skill specialties such as air- craft maintenance, air defense warfare, and elecLonics maintenance. DEFENSE. Rept.-03 November 14, 1981 5:38 PM roved For Release 2007/03/03: CIA-R DP89M00610R00010004 2119x Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 The bonus has been highly successful in retaining highly trained per- sonnel; accordingly, the Committee recommends a $15 million increase so the Marine Corps can continue the momentum of this retention aid. Miscellaneous reductions.-The Committee recommends a reduction of $1.9 million in separation payments since the number of severance payments is expected to decrease in this fiscal year; a $654,000 reduc- tion in flight and sea pay since the rates used in the budget estimate were overcalculated by this amount; and a $1.5 million reduction in basic allowance for subsistence since the number of personnel entitled to leave rations has decreased. MILITARY PERSONNEL, AIR FORCE 1981 appropriation ............................................................................................... $10,001,821,000 1982 budget estimate .........................................................................................:. 10,440,820,000 House allowance ................................................................................................... Committee recommendation ............................................................................... 11,688,381,000 The Committee recommends an appropriation of $11,688,381,000 for fiscal year 1982. This is $1,247,561,000 above the budget request. All Committee recommended adjustments to the House bill and to the budget request, including those items discussed elsewhere in the report, are summarized below: Budget request Committee recommendation Basic pay ............................................................................ $6,721,409 $7,968,861 Basic allowance for quarters ........................................... 842,977 842,977 Subsistence ........................................................................ 769,087 765,287 Incentive, hazardous duty, aviation pay ......................... 174,374 162,651 Physician special pay ....................................................... 69,939 69,939 Sea and foreign duty pay ................................................ 8,989 8,989 Diving duty pay .................................................................. 2 3 Reenlistment bonuses ....................................................... 99,616 99,616 Proficiency pay .................................................................. 6,478 10,122 Enlistment bonuses ........................................................... 3,784 20,884 Overseas extension pay ................................................... 700 700 Uniform and clothing allowances .................................... 87,386 87,386 Overseas station allowances ............................................ 129,878 155,378 Variable housing allowances ............................................ 205,189 205,189 Other allowances ............................................................... 11,612 11,612 Separation payments .......................................................... . 77,900 77,900 Social security tax payments ........................................... 448,865 448,865 Permanent change of station .......................................... 875,043 854,430 Other military personnel costs ......................................... 1,604 1,604 Cadets ..........................................................................:...... 28,613 28,613 Less reimbursables ........................................................... -122,625 -132,625 Displayed below are details of the Committee's adjustments: Jacket No. 00-000 DEFENSE. Rept.-03 November 14, 1981 5:38 PM IA-RDP89M00610R00010004511X Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 Budget request Committee recommendation Aviation officer continuation bonus ................................ $47,000 -$47,000 PCS savings ............................................................................................ -13,100 Pay longevity ...................................................................... 6,721,409 -12,800 Proficiency pay .................................................................. 6,478 - 56 Air traffic controllers .............................................................................. - 10,000 Trailer allowances ............................................................. 1,500 -600 Subsistence ........................................................................ 769,087 - 3,800 Pay and Benefits Act ............................................................................. +1,334,917 Physicians assistants.--The Committee recommends a reduction of $56,000 to the enlisted proficiency pay account based on the recent au- thorization of commissioned physicians assistants. Miscellaneous reductions.-The Committee recommends a reduction of $12.8 million based on overstated pay longevity calculations. RESERVE PERSON'N'EL, ARMY 1981 appropriation .................................................................................................... 8869,300,000 1982 budget estimate ................................................................................................ 955,200,000 House allowance ........................................................................................................ Committee recommendation .................................................................................... 1,054,750,000 The Committee recommends an appropriation of $1,054,750,000 for fiscal year 1982. This is $99,550,000 above the budget request. All Committee recommended adjustments to the budget request, in- cluding those items discussed elsewhere in the report, are summarized below: Budget request Committee recommendation Unit and individual training: Pay group A ............................................................... $515,120 $583,642 Pay group F ................................................................ 93,701 97,201 Pay group P ................................................................ 1,279 1,379 Other training and support: Pay group D ............................................................... 11,800 13,000 Mobilization training ................................................... 35,196 38,696 School and special training ...................................... 56,511 63,011 Administration and support ....................................... 168,301 182,229 Reserve Officers Training Corps .............................. 43,749 46,049 Health professions scholarship ................................. 15,196 15,196 Branch officers basic course .................................... 13,937 13,937 Chaplain candidate program ..................................... 410 410 Committee adjustments.-The Committee recommends the above changes based on the Pay and Benefits Act (+$106,022,000) and on the elimination of the Individual Ready Reserve bonus (-$6,472,000). Jacket No. 00-000 DEFENSE. Rept.-03 AnnrnvPd Far RPlPase 2007/03/03: CIA-RDP89M0061OR000100048b')-86bx Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 RESERVE PERSONNEL, NAVY 1981 appropriation .................................................................................................. S318,758.000 1982 budget estimate .............................................................................................. 329,020,000 House- allowance ...................................................................................................... Committee recommendation .................................................................................. 361.643.000 The Committee recommends an appropriation of $361,643,000 for fis- cal year 1982. This is $32,623,000 above the budget request. All Committee recommended adjustments to the budget request, in- cluding those items discussed elsewhere in the report, are summarized below: Budget request Committee recommendation Unit and individual training: Pay group A ............................................................... $261,099 $290,965 Pay group F ................................................................ 10,179 11,279 Pay group D ............................................................... 753 853 Other training and support: School and special training ...................................... 12,231 11,469 Administration and support ....................................... 14,743 16,043 Reserve Officers Training Corps .............................. 17,564 18,583 Health professions scholarship ................................. 12,451 12,451 Committee adjustments.-The Committee recommends the above changes based on the Pay and Benefits Act (+$34,023,000) and on the elimination of the Individual Ready Reserve bonus (-$2,300,000). 1979 Reserve deficit. This account ran a deficit in 1979 by over- expending $4,000 and overobligating $266,000. The Committee recom- mends that up to $100,000 of the fiscal year 1982 budget be used to begin payment of debts incurred in 1979, RESERVE PERSONNEL, MARINE CORPS 1981 appropriation .................................................................................................. S120,357,000 1982 budget estimate .............................................................................................. 138,920,000 House allowance ...................................................................................................... Committee recommendation .................................................................................. 152,212,000 The Committee recommends an appropriation of $152,212,000 for fis- cal year 1982. This is $13,292,000 above the budget request. All Committee recommended adjustments to the budget request, in- cluding those items discussed elsewhere in the .report, are summarized below: Jacket No. 00-000 DEFENSE. Rept.-03 November 14. 1981 5:38 PM Oo 1 oOo4 O 18 ' Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 Budget request Committee recommendation Unit and individual training: Pay group A ............................................................... $70,996 $78,366 Pay group F ................................................................ 36,300 39,600 Pay group P ................................................................ 287 287 Individual mobilization augmentees .......................... 1,228 1,228 Other training and support: Mobilization training ................................................... 2,905 3,105 School and special training ...................................... 9,177 9,577 Administration and support ....................................... 12,445 14,106 Reserve Officers Training Corps .............................. 5,612 5,912 Committee adjustments.-The Committee recommends the above changes based on the Pay and Benefits Act (+$13,692,000) and on the elimination of the Individual Ready Reserve bonus (- $400,000). RESERVE PERSONNEL, AIR FORCE 1981 appropriation .................................................................................................... 5277,360.000 1982 budget estimate ................................................................................................ 298,848,000 House allowance ........................................................................................................ Committee recommendation .................................................................................... 326,399,000 The Committee recommends an appropriation of $326,399,000 for fis- cal year 1982. This is $27,551,000 above the budget request. All Committee recommended adjustments to the budget request, in- cluding those items discussed elsewhere in the report, are summarized below: Budget request Committee recommendation Unit and individual training: Pay group A .......................................... :.................... $130,748 $148,870 Pay group F ................................................................ 11,597 12,797 Pay group P ................................................................ 571 571 Pay group D ............................................................... 1,399 1,499 Pay group B ............................................................... 23,915 27,015 Other training and support: School and special training ...................................... 70,611 77,611 Administration and support ....................................... 26,876 23,665 Reserve Officers Training Corps .............................. 20,592 21,832 Health professions scholarship ................................. 12,539 12,539 Committee adjustments.-The Committee recommends the above changes based on the Pay and Benefits Act (+$34,651,000), the elimination of the Individual Ready Reserve bonus (- $2,500,000), and the Reserve request for civilian technician funding (- $4,600,000). Jacket No. 00-000 DEFENSE. Rept.-03 November 14, 1981 5:38 PM Annrov .d For Release 007/0 /03 : IA-RDP89MOO61OR000100040641.b` Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 NATIONAL GUARD PERSONNEL, ARMY 1981 appropriation ............................................................................................... 51,168,200,000 1982 budeet estimate ........................................................................................... 1,299,100,000 House allowance ................................................................................................... Committee recommendation ............................................................................... 1,468,136,000 The Committee recommends an appropriation of $1,468,136,000 for fiscal year 1982. This is $169,036,000 below the budget request. All Committee recommended adjustments to the budget request, in- cluding those items discussed elsewhere in the report, are summarized below: Budget request Committee recommendation Unit and individual training: Pay group A ............................................................... $760,907 $868,517 Pay group F ................................................................ 161,559 179,359 Pay group P ................................................................ . 9,987 11,487 Other training and support: School and special training ...................................... 89,020 98,420 Administration and support ....................................... 277,627 310,353 Committee adjustments.-The Committee recommends the above changes based on the Pay and Benefits Act (+$169,036,000). NATIONAL GUARD PERSONNEL, AIR FORCE 1981 appropriation .................................................................................................... $386,209,000 1982 budget estimate ................................................................................................ 418,192,000 House allowance ........................................................................................................ Committee recommendation .................................................................................... 475,078,000 The Committee recommends an appropriation of $475,078,000 for fis- cal year 1982. This is $56,886,000 above the budget request. All Committee recommended adjustments to the budget request, in- cluding those items discussed elsewhere in the report, are summarized below: Budget request Committee recommendation Unit and individual training: Pay group A ............................................................... $249,447 $287,139 Pay group F ................................................................ 23,332 25,232 Pay group P ................................................................ 1,027 1,127 Other training and support: School and special training ...................................... 63,872 70,472 Administration and support ....................................... 80,514 91,108 Committee adjustments.-The Committee recommends the above changes based on the Pay and Benefits Act (+$56,886,000). Jacket No. 00-000 DEFENSE. Rept.-03 November 14, 1981 5:38 PM Annrnved Fnr Release 2007/03/03: CIA-RDP89M0061OR00010004da -5.bz Approved For Release 2007/03/03: CIA-RDP89M00610R000100040021-9 TITLE II RETIRED MILITARY PERSONNEL RETIRED PAY, DEFENSE 1981 appropriation ................................................................................................ $13,887,800,000 1982 budget estimate ............................................................................................ 14,981,815,000 House allowance .................................................................................................... Committee recommendation ................................................................................ 14,94815.000 The Committee recommends an appropriation of $14,944,815,000 for retired pay. This is an increase of $1,057,015,000 over the fiscal year 1981 appropriation and a decrease of $37,000,000 from the budget esti- mate. The recommended reduction is based on the action of the 1981 Omnibus Reconciliation Act which entitled military personnel not participating in the survivors benefits program to do so. The Commit- tee's recommendation concurs with the Congressional Budget Office estimate of the amount of funding projected to be saved in fiscal year 1982. Appropriations under this title finance retirement pay, as authorized and prescribed by law, for military personnel on the retired lists of the Army, Navy, Marine Corps, and Air Force. This includes payments for nondisability retirement at completion of prescribed lengths of service, for those in temporary or permanent disability status, for Navy and Marine Corps members of the Fleet Reserve who have 20, but less than 30, years' creditable service, and for survivors of deceased members who qualify for continued annuities. The estimates exclude payments to individuals who elect to receive compensation for physical disability from the Veterans Administration. The amounts requested are also ex- clusive of any administrative expense. November 14,1981 5:42 PM Annrnved For Release 2007/03/03: CIA-R DP89M00610R00010004?3n-8?.bs Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 OPERATION AND MAINTENANCE The Committee recommends appropriations totaling $63,368,634,000 in title III, Operation and Maintenance, for fiscal. year 1982. This is $778,513,000 above the budget estimate. The recommendation for the 1982 annual bill does not include amounts to be requested by DOD at a later time for supplemental appropriations to cover civilian pay raises, fuel price increases, and other contingent requirements. The Committee recommendations by appropriation account are com- pared with the budget estimate in the following table: [In thousands of dollars] Fiscal year 1981 enacted Budget estimate Committee roc- ommendation Operation and maintenance: Army ............................................. $13,160,533 $15,207,500 $15,351,400 Army Stock Fund ....................... 34,000 211,300 211,300 Navy ............................................. 17,728,799 19,611,170 19,880,389 Navy Stock Fund ........................ 309 17,435 17,435 Marine Corps .............................. .1,072,206 1,176,940 1,186,440 Marine Corps Stock Fund ......... 4,108 13,334 13,334 Air Force ..................................... ? 14,769,614 16,696,076 16,903,069 Air Force Stock Fund ................ 28,300 107,800 107,800 Defense agencies ....................... 4,380,816 4,635,500 4,778,000 Defense Stock Fund .................. 458,000 79,000 79,000 Army Reserve ............................. 522,793 614,900 619,700 Navy Reserve .............................. 554,172 578,640 565,540 Marine Corps Reserve ............... 28,854 40,299 40,799 Air Force Reserve ...................... 601,980 678,008 682,608 Army National Guard ................. 958,770 1,041,200 1,047,600 Air National Guard ..................... 1,531,907 1,682,468 1,682,568 National Board for the Promotion of Rifle Practice ............................. 845 444 845 Claims, Defense ................................. 141,850 195,500 198,200 Court of Military Appeals .................. 2,310 2,607 2,607 Total, operation and main- tenance ................................. 55,980,234 62,590,121 63,368,634 The Department's budget estimate of $62,590,121,000 includes $3,191,000,000 for inflation and $3,178,400,000 for real program growth over the previous year programs. The Department assumed an average rate of inflation of 8.4 percent. In consideration of the actual rate of in- flation for fiscal year 1981 of 13.3 percent, the Committee is concerned that the Department has assumed an overly optimistic projection for fis- cal year 1982. Inflationary impact in excess of the Department's projec- tion will erode the planned program growth for needed readiness im- provements. Jacket No. 00-000 DEFENSE REPORT-05 Annrnvari Fnr R,-IL-asp 2[1(17/03103. CIA-RDP89M00610R000100046 114' Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 Consequently, the Committee recommends the addition of $525,000,- 000 to the operation and maintenance accounts to provide for an austere inflation projection of 10 percent. The incremental chance be- tween 8.4 percent and 10 percent is illustrated in the following table: Appropriation account Recommended Operation and maintenance: increase Army .................................................................................................................... S110.600.000 Navy ..................................................................................................................... 201.600.000 Marine Corps ..................................................................................................... 9,600.000 Air Force ............................................................................................................ 147.200.000 Defense agencies ................................................................................................ 32.000.000 Army Reserve .................................................................................................... 4.800.000 Navy Reserve ..................................................................................................... 3.200.000 Marine Corps Reserve ...................................................................................... 500,000 Air Force Reserve ............................................................................................. 1.600,000 Army National Guard ...................................................................................... 6.400,000 Air National Guard .......................................................................................... 4,800.000 Claims, Defense ......................................................................................................... 2.700,000 REAL PROPERTY MAINTENANCE AND REPAIR PROGRAMS The following table shows the real property maintenance and repair funding programs and unfunded backlogs for fiscal years 1980 through 1982: Army .............................. $647.2 $743.8 $1,211.3 $1,853.0 $2,370.4 $2,270.2 Navy .............................. 530.2 662.5 710.2 587.0 564.0 585.0 Marine Corps ............... 136.0 167.4 200.4 167.1 177.5 171.7 Air Force ...................... 831.3 859.1 1,191.2 488.6 531.2 347.0 Defense agencies ........ 62.3 82.5 80.5 36.0 54.0 61.1 Reserve forces ............. 105.2 142.2 159.9 143.8 128.0 119.5 The Committee reaffirms its view that the growth of the backlog should be contained at the fiscal year 1978 dollar level, so that the size of the backlog will decline in real terms to a more manageable level over a period of years. This view was expressed in the Committee's reports the past 2 years. The backlog has grown from a total of $2.32 billion in fiscal year 1978 to a projected $3.554 billion at the end of fis- cal year 1982. The Department has made a clear commitment to contain the growth of the backlog of real property maintenance projects as evidenced in the requested funding level of 35 percent over fiscal year 1981 pro- grams. However, real property maintenance projects have been ne- glected for so long and the backlog is accelerating at such a rate that if definitive action is not realized this fiscal year, dedication of future resources for repair and maintenance of these facilities may no longer be cost effective. In recognition of this circumstance, the Committee November 14. 1981 5:43 PM Annrn vPri Fnr RPIPaGP 2007/03/03 - CIA-RDP89M00610R000100040'fi19tX Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 recommends that a total of $400 million be added to the Army, Navy, and Air Force operation and maintenance accounts to further reduce the backlog of maintenance and repair of real property. Specific direc- tion of the additional funds is contained in the appropriate sections of this report under the various appropriation account headings. CONSULTANTS, STUDIES, TECHNICAL SERVICES, AND OTHER MANAGEMENT SUPPORT CONTRACTS In nearly every legislative action in recent years regarding the opera- tions of the Government or budgetary matters, the Congress has ex- pressed a continued concern over the excessive use and misuse of con- tractor support to perform tasks which should be done by Government employees or not performed at all. Despite repeated direction to the contrary, the use of contractor support for "paper" missions seems to be accelerating as an accepted mode for doing the business of the De- partment of Defense. However, the Department is beginning to seek methods to control the use of contractor support and has made some positive steps to this end as evidenced by an overall reduction of $210 million since the January budget submission. Despite the initiatives of control, the problem of attaining visibility of the extent of contractor support still remains. For the past 2 years the Department has submitted a budgetary document which defines and quantifies the types of contractor support functions performed and fur- ther aggregates this information by appropriation account. As support- ing data to the fiscal year 1982 amended budget, the Department es- timated that over $1.5 billion would be used for consultants, studies, technical services, and other management support contracts. By com- parison, it was estimated that over $1.3 billion would be used for these purposes in fiscal year 1980. Despite this voluminous budgetary infor- mation, accounting data estimated that nearly three times the amount reported for this purpose was actually spent. These conflicting reporting mechanisms suggest a myriad of problems, but at a minimum it is clear that there is no relationship between the budget and accounting systems to determine the actual extent to which the department is utilizing con- tractor support. In an effort to yield a better understanding of the use of contractor support, the Committee directs the Department to improve the budget and accounting reporting systems to include the same information es- tablished by identical definitions as supporting data for the fiscal year 1983 budget submission. The current data for the fiscal year 1982 submission estimates that the Navy appropriation accounts comprise over 60 percent of the budg- et request for consultants, studies and analyses, and management sup- port contracts. Regardless of any other proposals, the Committee recom- mends that the Navy accounts be reduced $77 million in order to de- crease the dependence on the use of contractor support services. It should be emphasized that the preponderance of this reduction be ap- plied to the general categories of consultants, contract studies and analyses, and the specific categories of program management support, and other professional and management services by contract. November 14. 1981 5:43 Phi IA-RDP89M00610R00010004'b0i8- Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 Although the largest share of this reduction is applied under the Navy operation and maintenance account, the Committee recognizes that the use of the existing budgetary documents poses the prospect of severe inequities. Consequently, the Department of Defense may pro- pose a redistribution of this reduction to all appropriation accounts, and report to the Committee on the redistribution by a notification reprograming. CIVILIAN HEALTH AND MEDICAL PROGRAM OF THE UNIFORMED SERvICEs (CHAMPUS) COMPETITIVE RATE PROGRAM Biofeedback.-The Committee is concerned that no real progress has yet been made by CHAMPUS in authorizing reimbursement for bio- feedback services. The Committee expressed its initial interest in this matter during its fiscal year 1978 deliberations, and it has consistently raised this issue with the Department of Defense. Indeed, last year the Department reported that an amendment of its regulations had been drafted that would provide biofeedback therapy coverage for the follow- ing medical conditions: headache; idiopathic, essential hypertension; primary idiopathic Raynoud's disease; neuromuscular rehabilitation; gas- trointestinal disorders; and cardiac arrhythmias. The Committee remains convinced that biofeedback therapy is a highly cost-effective modality and accordingly directs CHAMPUS to explore under what conditions these services should be reimbursed. Peer review.-The Committee remains highly impressed by the pio- neering efforts of CHAMPUS to establish professional peer review panels in order to insure that mental health services reimbursed under CHAMPUS are necessary and appropriate. It is the Committee's opin- ion that this particular initiative has been highly instrumental in keep- ing the costs of mental health care at a reasonable level during the past fiscal year. Child and spouse abuse.-During its fiscal years 1980 and 1981 delib- erations, the Committee expressed its concern that the Department of Defense begin to aggressively address the many needs of children and spouses of active duty personnel. The General Accounting Office has reviewed the problem of dependent abuse and has acknowledged that the situation is confounded by the fact that those individuals with the Department of Defense assigned to address child and spouse abuse are at the same time charged with other competing responsibilities. More- over, although the Department has been asked by Congress to identify a budget amount for this effort, it has not done so. Accordingly, the Committee recommends an increase of $10 million so that child ad- vocacy and family counseling programs are established in fiscal year 1982. The Department is expected to use the appropriation on these pro- grams only. Additionally, the Committee asks the Department of Defense to identify in its fiscal year 1983 budget estimate specific funds and resources that will be allocated to correcting the problem of child and spouse abuse. Clinical social worker demonstration project.-The Committee is pleased that the clinical social worker direct reimbursement program, N e 14, 1981 5:43 PM roved For Release 2007/03/03: CIA-RDP89M00610R00010004:W r Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 begun last year, is progressing and that over 360 health billings have been submitted. The Committee understands that there is no evidence to indicate that the overall quality of care has been jeopardized and that the majority of the billings have been at either the same or lower rate than that for prevailing CHAMPUS psychotherapy care. Accord- ingly, the Committee recommends that the pilot project be continued for an additional year, and it expects that during its fiscal year 1983 deliberations, the decision will be made whether to concur with in- dependent reimbursement pursuant to the President's 1978 Commission on Mental Health recommendation. Fraud and abuse.-The Committee agrees with the recent CHAMPUS reorganization that created an Office of Program Integrity and recog- nizes the difficulties associated with assigning a high priority to in- dividual beneficiary or provider fraud. The Committee expects to be kept informed of any further difficulties that CHAMPUS might ex- perience in insuring that allegations of fraud are fully explored. Health maintenance organization (HMO) project.-The Committee is pleased with CHAMPUS implementation of the health maintenance or- ganization demonstration project in Portland, Oreg. This program is ex- pected to continue for 3 years at a minimum in order for the De- partment to obtain sufficient data to assess the possibility of expanding the project. The Committee is especially interested in learning the ex- tent to which CHAMPUS beneficiaries using this "prepaid" approach are more or less satisfied with their health care. Recognizing that retirees are reluctant to participate in the HMO project due to its ex- perimental nature, the Committee urges CHAMPUS to use its authority to explore means of addressing retirees' concern, perhaps by guarantee- ing beneficiaries that additional costs in regaining earlier coverage will be covered by CHAMPUS. The .Committee further expects that CHAMPUS, under this broad authority, will consider exploring other types of health insurance. Inpatient psychiatric care.-The Committee remains concerned that there continues to be excessive reliance on the most costly in-patient psychiatric care treatment modality than is appropriate. This is pri- marily because, unlike the mental health benefit of private sector health care plans, there is no annual limitation under CHAMPUS. The Com- mittee recognizes the concern of CHAMPUS and the mental health community for the 30-day annual limitation on in-patient psychiatric care. CHAMPUS assures the Committee that long-term psychiatric in- patient care is being closely monitored and that the American Psychi- atric Association's peer review committees, in particular, will increase their efforts in this area. Accordingly, the Committee is not recom- mending such a limit. The Committee is disturbed, however, by statistics indicating that the fiscal year 1980 average cost per in-patient psychiatric care was nearly twice that for in-patient surgery or medical care. And, the Committee has reviewed evidence suggesting that a 30- day annual limit would not have the adverse impact that the providers contend. Nonphysician health care providers.-Last year the Committee di- rected the Department to address allegations of morale problems among nonphysician health care providers. The Committee remains concerned November 14, 1981 5:43 PM roved For Release 2007/03/03: CIA-RDP89M0061OR000100040(M-TA9)x Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 that highly competent health care professionals are not allowed to function to the fullest extent of their training. This is partly because the services demonstrate a decided preference to selecting physicians, rather than other health care professionals, when assigning a health care pro- fessional to an administrative position. Further, the Committee is con- cerned that, since administrative skills differ from clinical skills, the use of limited medical resources in this way may not be in the best interest of the services. Accordingly, the Committee directs the Department to renew its attention to this matter and to report to this Committee the extent to which primarily administrative positions are filled by clinicians. This report should include a comparison with generally accepted practices in the civilian community and should describe the extent to which any particular professional discipline may have been systematically favored in such assignments. Nurse-midwives.-The Committee is pleased by the good faith efforts made by CHAMPUS for the direct reimbursement of certified nurse- midwives. The Committee is likewise pleased with the pioneering ef- forts that CHAMPUS has undertaken in establishing national standards for birthing centers. Optometry.-The Committee directs CHAMPUS to continue con- sideration of an increased vision therapy benefits package. Available evidence suggests that approximately 15 percent of private sector em- ployees have routine vision care available through the health care benefits program, and that eye and vision disorders account for the second most chronic national health condition. Further, on a nationwide basis, it is estimated that only half of those requiring some form of vi- sion care actually receive it. Nurse practitioners.-The Committee has supported direct reimburse- ment of nurse practitioners and clinical specialists by CHAMPUS since 1977. The Committee believes that since these individuals are licensed to perform independently at the State level and since they possess a master of arts degree, a nursing degree, and professional certification, there should be no concern about the possible dimunition of quality of care. To date, all evidence provided to the Committee confirms that nurse practitioners/clinical specialists are fully competent to provide as much as 90 percent of the care currently provided by physicians, and in an equally effective manner. Since 1978, certified nurse-midwives have been directly reimbursed. The fiscal year 1980 appropriations bill (Public Law 96-154) permitted direct reimbursement of certified nurse practitioners on an experimental basis. To date, there have been less than 50 billings nationwide. Accordingly, the Committee feels that it is now appropriate to remove the experimental designation and it directs CHAMPUS to provide for their direct reimbursement. Dental plan demonstration project.-The Committee recommends that CHAMPUS explore the possibility of offering a dental benefit plan to its beneficiaries. Accordingly, the Committee has included a general provision (sec. -) that would authorize a special demonstration test during which CHAMPUS could spend up to $50 million during the fis- cal year to provide preventive and basic restorative dental care. The Committee further directs CHAMPUS to obtain information on beneficiary utilization patterns and on potential comprehensive dental benefit package offerings. N " e er 14. 1981 5:43 P`4 roved For Release 2007/03/03: CIA-RDP89M0061OR0001000 ~ 17 W Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 COMPETrrIvE RATE PROGRAM. The Committee recommends the inclusion of a general provision to prohibit the obligation of funds under the competitive rate program of the Department of Defense for the transportation of household goods to or from Alaska and Hawaii. This provision has been included in every Defense Appropriation Act since fiscal year 1979. Despite repeti- tive action and a recent General Accounting Office report which ques- tions the value of the competitive rate program, the Department has not attempted to develop a policy which is both competitive in nature and commercially acceptable. In recognition of this impasse, the Committee directs the Military Traffic Council of the Department of Defense to review proposals )f the moving industry with the objective of develop- ing an alternative rate program to improve competition in the house- hold shipment industry. A report on the findings of this review is ex- pected by March 15, 1982. FEDERAL EMPLOYEE INJURY COMPENSATION SYSTEM Since the fiscal year 1979 Defense Appropriation Act, in each succes- sive year the Congress has adopted a provision to limit payments that the Department of Defense may make to the Department of Labor for the Federal employee compensation fund. These provisions have been included in recognition of the excessively large percentage increases for such payments from year to year. The attempt has been to reduce the amount paid by the Department of Defense into the employee compen- sation fund to an amount equal to the average cost increase of the direct labor for that year. The Committee concurs with other proposals to constrain such payments to a level of $206.1 million which allows for an approximate increase of 7 percent from the fiscal year 1981 level. Section 735 of the bill contains this limitation. FORMAT OF COMMITTEE RECOMMENDATIONS The Committee recommendations for the operation and maintenance accounts of this report are organized by program package to illustrate the variety and types of programs financed through these accounts. Changes to the budget and a comparative fiscal year 1981 program are reflected by these program packages in order to demonstrate the extent to which the Committee has reviewed these programs. Regardless of any other proposals to the contrary, the inclusion of this level of detail does not suggest a new reporting requirement for the Department of Defense. V b 14.1981 5:43 PNI roved For Release 2007/03/03: CIA-RDP89M00610R0001000 `s$~ Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 OPERATION AND MAINTENANCE, ARMY 1981 appropriation ................................................................................................. S13.160.533,000 1982 budget estimate ............................................................................................. 15,207,500,000 House allowance ..................................................................................................... Committee recommendation ................................................................................. 15,351,400,000 The Committee recommends an appropriation of $15,351,400,000. This is $143,900,000 above the budget estimate. This appropriation provides for the activities of the active Army, in- cluding the pay of civilian personnel, operation and maintenance of aircraft, equipment and bases, training, direct care medical programs, and all associated activities. The following detail table provides a program comparison of the Committee recommendations to the budget request. [In thousands of dollars] 1981 Budget Committee enacted amount estimate recommendation GENERAL PURPOSE FORCES Unified commands ..................................... $6,766 $7,749 $7,749 Alaska forces ............................................. 13,323 13,891 13,891 Europe forces ............................................ 765,951 1,046,904 1,015,809 Pacific forces ............................................. 170,557 211,201 211,201 South forces .............................................. 6,457 6,722 6,722 CONUS forces-FORSCOM ...................... 546,681 735,762 721,202 Other CONUS forces ................................ 148,861 197,117 197,117 JCS directed and coordinated exer- cises ........................................................ 51,584 79,623 79,623 Combat development activities ................ 126,447 175,214 175,214 Base operations: FORSCOM and other CONUS .......... 469,976 525,114 525,114 Real property maintenance (RPMA)- United States ................................... 395,832 512,589 576,589 Europe ................................................. 535,191 672,382 612,382 RPMA-Europe ................................... 640,275 859,954 919,954 Pacific .................................................. 183,359 232,464 229,864 RPMA-Pacific .................................... 196,916 226,941 239,941 Economic assumptions .................................................... -166,800 - 166,800 INTELLIGENCE AND COMMUNICATIONS Worldwide military command and CON system-ADP .......................................... 8,730 16,638 16,638 Traffic control and landing systems ....... 19,564 23,318 23,318 Foreign counterintelligence ...................... 5,952 6,135 6,135 Security and investigative activities ........ 12,128 12,277 12,277 Management headquarters-other........... 20 ............................................... Base operations: Other .................................................... 2,812 3,944 3,944 RPMA-other ...................................... 2,484 3,217 3,217 Missidn-info in separate intelligence justification book .................................... 120,235 143,820 140,520 Base operations: Intelligence .......................................... 2,447 1,624 1,624 RPMA-intelligence ............................ 3,788 5,379 5,379 Jacket No. 00-000 DEFENSE REPORT-06 November 14,1981 5:50 PM Annroved For Release 2007/03/03: CIA-RDP89M00610R0001000 `I9x Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 Worldwide military and CON system (WWMCCS) Facility ................................ 11,335 7,764 7,764 Long haul communications ...................... 2731738 302,237 302,237 Communications security .......................... 18,832 18,428 18,428 Management headquarters-communica- tions ......................................................... 27,695 28,544 28.544 Base communications ............................... 144,898 200,595 200,595 Base operations: Communications ................................. 33,976 36,601 36,601 RPMA-Communications ................... 27,239 23,643 23,643 CENTRAL SUPPLY AND MAINTENANCE Supply depot operations .......................... 558,646 683,327 673,527 Supply management operations .............. 163,326 173,242 165,957 Central procurement activities ................. 166,435 207,910 207.910 Logistics administration support .............. 101,464 123,688 123,688 Audiovisual support-logistics element... 3,892 3,161 3,161 Resale commissaries ................................. 166,100 171,782 171,782 Troop issue subsistence activities........... 22,098 28,087 28,087 Management headquarters ....................... 110,431 106,426 106,426 First destination transportation ................ 40,222 28,831 28,831 Second destination transportation........... 799,804 965,203 953,745 Industrial preparedness operations ......... 112,666 111,166 111,166 Logistics support activities ....................... 184,770 167,503 167,503 Overseas port units ................................... 53,697 62,850 62,550 Real estate administration and construc- tion supervision ...................................... 56,295 60,219 60,219 Base operations ......................................... 154,453 159,748 157,248 Base operations RPMA ........................... 124,546 134,893 155,893 Depot maintenance ................................... 955,320 1,070,855 1,070,855 Maintenance support activities ................ 377,239 411,167 393,565 TRAINING AND MEDICAL Recruit training .......................................... 8,773 9,881 9,881 One station training .................................. 22,224 32,950 32,950 Officer acquisition ..................................... 25,678 28,802 28,802 Senior ROTC .............................................. 40,605 45,775 45,775 Specialized training ................................... 159,982 174,012 174,012 Flight training ............................................. 105,198 113,811 113,811 Professional education .............................. 26,907 33,144 33,144 Training support ........................................ 299,680 330,781 328,981 Base operations: Training ............................................... 462,097 532,685 531,285 RPMA-training ................................... 406,432 468,740 510,740 Care in reg defense facilities ................... 278,646 289,380 289,380 Station hospitals and medical clinics ..... 366,281 428,972 4281972 Dental care activities ................................ 54,636 54,800 54,800 Care in nondefense facilities ................... 42,203 43,064 43,064 Education and training-health care ...... 51,335 53,050 53,050 Command-health care ............................ 8,791 8,704 8,704 Recruiting and examining ........................ 14,589 15,360 15,360 Other medical activities ............................ 101,171 105,192 105,192 Audiovisual support ................................... 4,120 5,545 5,545 Base operations: Medical ................................................ 21,792 22,459 22,459 November 14, 1981 5:50 PM Release 2007/03/03: CIA-RDP89M0061OR0001000 S-9 Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 RPMA-medical .................................. 38,606 40,722 40,722 Recruiting activities ................................... 105,889 132,701 132,701 Advertising activities ................................. 58,978 67,770 67,770 Examining activities ................................... 33,216 45,151 45,151 Other personnel activities ......................... 23,611 28,446 28,466 Civilian education ...................................... 69,598 75,271 75,271 Junior reserve officer training program.. 14,958 14,690 14,690 Army continuing education system ......... 106.619 127,390 127,390 Audiovisual support ................................... 8,957 8,606 8,606 Subtotal ............................................ 2,961,572 3,337,854 3,376,654 ADMINISTRATION AND ASSOCIATION ACTIVITY Department headquarters support ........... 93,177 89,294 89,294 Personnel administrative support ............ 91,617 108,784 108,784 Public affairs .............................................. 7,927 7,603 7,603 Criminal investigation activities.., ............. 16,174 18,677 18,677 Servicewide support .................................. 534,925 615,203 612,203 Audiovisual support ................................... 4,779 4,396 4,396 Base operations ......................................... 36,271 35,855 35,855 Base operations-RPMA ........................... 26,107 31,995 31,995 Subtotal ............................................ 810,977 911,807 908,807 MILITARY ASSISTANCE ACTIVITY International military headquarters and agencies .................................................. 108,177 114,553 114,553 Miscellaneous support of other nations. 2,505 2,237 2,237 Subtotal ............................................ 110,682 116 790 116 790 , Inflation adjustment .................................................................................. , 110,600 COMMITTEE ADJUSTMENTS Specific program adjustments recommended by the Committee are as follows: Force modernization/operational support.-Based on the current pro- jection of systems requiring operational support, fewer M-1 tanks and support vehicles will be fielded than originally assumed in the amended request. In addition, operation and maintenance costs appear to be overstated, except in the training base, for the infantry/cavalry fighting vehicles, Hawk missile, TACFIRE, and truck programs. Current pro- jections appear to be reliable due to the impressive upgrade to cost estimating procedures in the Army modernization information memor- andum (AMIM) and the modernization resource information submis- sion (MRIS) reviews. The Committee recommends a reduction of $60 million to reflect this reevaluation of requirements. Pre-positioning of material in configured unit sets (POMCUS).-The amended budget request includes funding for tool kits and repair parts in advance of planned fiscal year 1983 initiatives to process equipment for POMCUS Division set 5. In light of ongoing negotiations with the Federal Republic of Germany to determine the extent of wartime host nation support, the Committee feels that it is ill advised to revise cur- rent plans for the POMCUS program at this time.- Regardless of any proposals to the contrary, the Committee recommends funding at the budget request. Jacket No. 00-000 DEFENSE REPORT-06 \ov b r 4. 1981 5:50 PM Approved For Release 2007/03/03: CIA-RDP89MOO61OR000100c T.ti4 Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 Civilian personnel.-The Committee recommends a reduction of $60 million which is the estimated cost to add 5,000 civilians to convert military positions. Current restrictions on United States direct hire and foreign national indirect hire civilian end strength ceilings preclude the use of funds for additional personnel. Base level commercial equipment.-Current restrictions limit the pur- chase of items with a unit cost in excess of $3,000 to the investment ap- propriation accounts. The Committee recommends the reduction of $23.3 million to reflect the transfer of such items from the operating ac- count to the investment account. Supply depot operations.-The Army requested funding to handle and store 80,000 short tons of ammunition shipments to Europe. However, the existing storage capacity in Europe could only accommodate ship- ments of 50,000 short tons. Therefore, it is recommended that the re- quest be reduced $17.1 million to reflect actual funding requirements for transportation of ammunition to Europe. Base operations.-Other pending proposals recommend the reduction of funds for base operations functions related to quality of life improve- ments, upgrades for facilities in Korea, vehicle maintenance projects in Hawaii, and other real property maintenance initiatives. The Committee views any reductions to the perennially underfunded base operations ac- counts as undesirable in the absence of further justification. SUMMARY OF COMMITTEE ADJUSTMENTS Committee adjustments to the budget estimate, including those not specifically addressed in this report, are summarized in the following table: Operational support ................................................................................................ - $60,000,000 Civilian personnel .................................................................................................... - 60,000,000 Base level commercial equipment ........................................................................ - 23,300,000 Ammunition handling-Europe ............................................................................ - 17,100,000 Inflation ..................................................................................................................... +110,600,000 DOL payments...- ................................................................................................... -3,000.000 Real property maintenance .................................................................................... + 200,000,000 ARMY STOCK FUND 1981 appropriation ....................................................................................................... $34,000,000 1982 budget estimate ................................................................................................... 211,300,000 House allowance ........................................................................................................... Committee recommendation ............................................................................:.......... 211,300,000 This appropriation provides for the purchase of war reserve material. The Army Stock Fund purchases consummable items-repair parts, clothing, and other materials-and holds them for use in the event of an outbreak of hostilities. The Committee recommends an appropriation of $211,300,000, the same as the budget estimate. Jacket No. 00-000 DEFENSE REPORT-06 v 4, 1981 5:50 PSI Approved For Release 2007/03/03: CIA-RDP89M00610R0001000 ' R- Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 OPERATION AND MAINTENANCE, NAVY 1981 appropriation ................................................................................................ S17,728,799,000 1982 budget estimate ............................................................................................ 19,611,170,000 House allowance ................................................................................................................................ Committee recommendation ................................................................................ 19,880,389,000 The Committee recommends an appropriation of $19,880,389,000. This is $269,219,000 above the budget estimate. This appropriation pro- vides for the activities of the active Navy, including the pay of civilian personnel, operation and maintenance of aircraft, vessels, equipment and bases, training, direct care medical programs, and all associated activities. The following detail tabl: provides a program comparison of the Committee recommendations to the budget request. [In thousands of dollars] 1981 Budget Committee enacted amount estimate recommendation STRATEGIC FORCES FBM ship: Operations ........................................... Charter ................................................. Maintenance and mod ....................... FBM supporting programs ........................ Strategic weapons systems ...................... Trident system operational support ......... Trident command and management ....... Fleet command (FBM) .............................. FBM airborne communications ................ FBM ship/shore communications ............ Missile and space defense ....................... Activations/inactivations ........................... Base operations ......................................... Less fiscal year 1982 anticipated pay $74,067 30,045 652,526 15,054 455,248 130,212 3,880 3,760 18,399 17,857 $80,232 24,709 517,555 15,648 478,397 219,112 4,225 3,670 27,598 18,380 $80,232 24,709 517,555 15,648 478,397 219,112 4,225 3,670 27,598 18,380 7,065 7,363 7,363 3,535 ............................................... 97,035 86,157 86,931 -7,822 -7,822 -3,000 -3,000 GENERAL PURPOSE FORCES TACAIR/ASW ............................................. 1,040,889 1,137,935 1,153,935 Fleet air operations support ..................... 156,399 144,210 144,210 Air logistic support ships ......................... 3,667W 3,580 3,580 General purpose ship: Operations ........................................... 1,935,404 2,189,384 2,231,384 Chart ..................................................... 382,212 423,199 423,199 Maintenance and mod ....................... 3,367,823 3,936,825 3,938,725 Operations support ............................ 31,717 30,805 30,805 Base operations ......................................... 1,282,177 1,291,077 1,320,935 Air special support .................................... 23,184 26,980 26,980 Construction battalion operations ........... 36,007 38,925 38,925 Special combat support ............................ 39,076 39,672 39,672 Fleet 'air: Training ............................................... 241,793 271,409 271,409 Training support ................................. 15,605 16,649 16,649 Fleet ship training support ....................... 3,791 4,218 4,218 Fleet comands and staffs ......................... 114,755 208,647 208,647 November 14,1981 5:50 PM 7/03/03: CIA-R DP89M00610R00010004`x Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 Unified commands ..................................... 20,079 22,483 22,483 Undersea surveillance programs ............. 10,160 13,234 13,234 Cruise missile ............................................. 6,999 13,283 13,283 JCS directed and coord. exercises......... 8,194 18,663 18,663 Naval command and control system....... 23,036 27,374 27,374 Foreign currency ....................................... Less fiscal year 1981 anticipated pay Depot level repairable credits .................. CPETE credits ................................................................... -6,600 -6,600 Economic assumptions .................................................... -53,000 -53,000 Subtotal ............................................ 8,664,667 9,692,675 9,782,433 INTELLIGENCE AND COMMUNICATIONS Consolidated cryptological program........ 73,342 77,758 77,977 General defense intelligence program.... 85,471 98,850 98,850 Foreign counterintelligence ...................... 2,589 3,294 3,294 Special activities ........................................ 40,883 50,009 50,009 Station operations (T & CCP) .................. 52,727 62,904 62,904 Leased communications IT & CCP)........ 102,540 117,860 117,860 Equipment installation (T & CCP) ........... 23,079 35,059 35,059 Communications security .......................... 14,282 14,046 14.046 Other telecommunications ........................ 358 406 406 Worldwide military command and con- trol ........................................................... 14,229 14,597 14,597 Management headquarters (T & CCP).. 6,025 6,403 6,403 Environmental support for strategic sys- tems ......................................................... 52,034 56,193 56,193 Environmental support for TAC and sur- veillance system ..................................... 45,791 54,728 54,728 Environmental support for navigation and chart ................................................ 25,546 22,446 22,446 Prediction support to command and control ..................................................... 11,591 11,723 11,723 Naval investigative service ....................... 26,728 30,796 30,796 Naval observatory ...................................... 4,442 4,676 4,676 Base operations ......................................... 102,426 109,457 111,550 Subtotal ............................................ 683,083 771,205 773,517 CENTRAL SUPPLY AND MAINTENANCE Aircraft rework and maintenance (NASC) .................................................... 1,388,492 1,474,115 1,474,115 Air launched weapons rework (NASC)... 57,274 78,089 78,089 Calibration (NASC) .................................... 47,187 59,698 59,698 Ground support equipment rework (NASC) .................................................... 50,376 76,113 76,113 Other aviation support (NASC) ................ 18,593 24,818 24,818 Procurement operations (NASC) ............. 31,447 31,062 31,062 Command and administration (NASC) .... 14,304 14,884 14,884 Operational support-field (NASC) ............ 54,338 53,847 53,847 Industrial preparedness (NASC) .............. 1,351 1,841 1,841 Inactive aircraft storage and disposal (NASC) .................................................... 2,074 1,885 1,885 Field operations (NASC) ........................... 104,294 110,897 110,897 Logistic support services (NASC)............ 50,866 70,833 70,833 Maintenance engineering and support services (NASC) ..................................... 52,574 58,819 58,819 DEFENSE REPORT-06 November 14,1981 5:50 PM Approved For Release 2007/03/03: CIA-RDP89M0061OR0001000 -B19x Approved For Release 2007/03/03: CIA-RDP89M00610R000100040021-9 Material management and information system (NASC) ....................................... 1,867 1,441 1,441 Operational equipment/system testing (NASC) .................................................... 21,145 21,041 21,041 Technical support (NASC) ........................ 76,140 115,325 115,325 ASW technical support (NASC) ............... 11,793 6,740 6,740 Base operating support (NASC) .............. 9,018 11,775 11,775 RSS & I (NSSC) ........................................ 51,179 56.064 56,064 Procurement operations (NSSC) .............. 173,937 186,584 186,584 Command (NSSC) ..................................... 27,951 27,234 27,234 Operational support (NSSC) ..................... 102,783 100,521 100,521 Industrial preparedness (NSSC ................ 1,871 2,496 2,496 Field operations (NSSC) ........................... 45,438 48,390 48,390 Logistics support services (NSSC).......... 19,803 19,549 19,549 Operational equipment/system test (NSSC) .................................................... 11,014 13,418 13,418 Salvage (NSSC) ......................................... 6,670 6,320 6,320 Material management and information system (NSSC) ....................................... 23,316 18,087 18,087 SMS logistics and maintenance (NSSC) .................................................... 78,699 115,331 115,331 Search radar (NSSC) ................................ 22,265 30,922 30,922 Maintenance eng and spt services (NSSC) .................................................... 16,492 24,933 24,933 Ships and ordnance maintenance act. (NSSC) .................................................... 25,850 26,994 26,994 Improvement of operational equipment system (NSSC) ....................................... 34,479 42,411 42,411 ASW support (NSSC) ................................ 84,890 107,682 107,682 Inact ships maintenance facility (NSSC) .................................................... 6,630 6,976 6,976 Major equipment support (NSSC) ........... 30,386 49,837 49,837 Nuclear prop tech logistics (NSSC)........ 32,998 36,188 36,188 Maintenance systems (NSSC) .................. 15,176 17,668 17,668 Electronic support (NSSC) .............................................. 210 210 Technical support (NSSC) ........................ 60,511 76,892 76,892 Surface ordnance maintenance support (NSSC) .................................................... 18,042 24,541 24,541 Planning and engineering pera (NSSC) . 15,092 17,925 17,925 Surface ordnance rework (NSSC)........... 34,164 58,067 58,067 Shipbuilding/electric national rework (NSSC) .................................................... 147,202 83,409 83,409 Calibration (NSSC) .................................... 10,451 15,227 15,227 AS/ASW maintenance support (NSSC).. 91,044 144,928 144,928 Other sea maintenance support (NSSC) .................................................... 42,705 45,460 45,460 Base operations: RPMA (NSSC) ..................................... 22,783 26,533 26,533 Other (NSSC) ...................................... 3,373 8,129 8,129 Command and administration (NESC) .... 5,490 6,342 6,342 Field operations (NESC) ........................... 24,655 23,487 23,487 Operational support-field (NESC) ............ 17,663 17,247 17,247 Procurement operations (NESC) .............. 18,845 18,972 18,972 Air station electrical system (NESC)....... 22,034 34,605 34,605 Shipboard electrical system support (NESC) .................................................... 7,254 7,251 7,251 Tactical electromagnetic programs (NESC) .................................................... 13,696 17,225 17,225 Remote sensors (NESC) ........................... 6,162 6,608 6,608 Shipboard electrical national rework (NESC) .................................................... 27,448 14,648 14,648 November 14,1981 5:50 PM Aooroved For Release 2007/03/03: CIA-RDP89M0061 OR00010004't628 Mi Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 Calibration (NESC) .................................... 19,777 29,052 29,052 Other electrical maintenance support (NESC) .................................................... 9,800 6,331 6.331 Industrial preparedness (NESC) ............... 494 492 492 Logistic support services (NESC)............ 2,701 2,885 2.885 Maintenance engineering and support services (NESC) ..................................... 10,120 10,511 10,511 Shipboard surveillance (NESC) ................ 31,552 37,722 37,722 Electronic support (NESC) ....................... 16,914 16,901 16,901 Undersea surveillance (NESC) ................. 87,191 102,142 102,142 Base operations (NESC) ........................... 4,091 4,360 4,360 Supply depots (NSUPSC) ......................... 162,777 182,425 182,425 Inventory control points (NSUPSC)......... 154,558 169,502 169,502 Procurement operations (NSUPSC)......... 28,447 31,370 31,370 Commissary stores (NSUPSC) ................. 59,552 62,985 62,985 Command (NSUPSC) ................................ 21,297 22.177 22,177 Transportation (NSUPSC) ......................... 402,826 413,314 413,314 Base operations: RPMA (NSUPSC) ................................ 51,370 51,274 51,274 Other (NSUPSC) ................................. 63,700 65,320 65.320 Command (NFEC) ...................................... 13,787 14,350 14,350 Engineering field division (NFEC)............ 44,142 46,126 46,126 Facilities logistic support (NFEC) ............ 42,466 82,139 82,139 Base operations (NFEC) ........................... 125,178 172,269 223,982 Command (CNM) ....................................... 30,241 31,887 26,887 Field operations (CNM) ............................. 11,870 18,258 18,258 Employee comp fund (CNM) .................... 84,800 98,820 86,820 Navy ind. and stock fund support (CNM) ...................................................... 204,256............................................... Base operations (CNM) ............................. 262 263 263 Navy regional data automation centers (CNO) ...................................................... 75,366 93,897 93,897 Logistic support services (CNO) .............. 4,921 8,858 8,858 Base operations (CNO) ............................. 7,575 7,306 7,306 TRN, MED, OTHER GP Recruit training .......................................... 3,003 3,243 3,243 Specialized skills ....................................... 75,827 84,133 84,133 Officer acquisition :.................................... 32,848 35,499 35,499 Professional development and educa- tion .......................................................... 16,268 15,940 15,940 NROTC ........................................................ 21,795 23,702 23,702 Flight training ............................................. 173,761 210,782 209,582 Routine maintenance ................................ 19,318 22,461 22,461 Other training support .............................. 109,997 144,968 144,968 Care, regional defense facilities .............. 92,500 98,971 98,971 Station hospitals and medical clinics ..... 113,114 137,268 137,268 Dental care activities ................................ 10,432 11,048 11,048 Care in nondefense facilities ................... 42,327 45,952 45,952 Other health activities ............................... 28,242 28,080 28,080 Education and training health care ........ 22,314 26,124 26,124 Command-health care ............................... 6,856 7,091 7,091 Recruiting activities ................................... 62,521 66,955 66,955 Advertising activities ................................. 20,214 22,180 22,180 Other personnel services ......................... 56,170 62,024 62.024 Off-duty voluntary education .................... 20,232 22,833 22,833 Civilian education ...................................... 14,339 15,892 15,892 NJROTC ...................................................... 4,299 4,678 4,678 Base operations ......................................... 531,395 568,024 579,286 November 14, 1981 5:50 PM Aooroved For Release 2007/03/03: CIA-RDP89M0061 OR000100040131~$ Vg` Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 ADMINISTRATION AND ASSOCIATION ACTIVITY SECNAV staff offices ................................ 25,256 25.148 25,148 CNO staff offices ....................................... 22,921 25,315 25,315 Navy finance activities .............................. 65,157 71,346 71,346 Navy audit service ..................................... 18,859 18,963 18,963 Board of Inspection and Survey .............. 1,292 1,850 1,850 Naval data automation command............ 8,449 8,863 8,863 Naval Safety Center .................................. 4,368 4,509 4,509 Naval Historical Center ............................. 1,612 1,746 1,746 Judge Advocate General-field .................. 2.032 2,191 2.191 Naval Legal Services Offices ................... 4,414 4,719 4,719 Public affairs .............................................. 2,192 2,264 2,264 Historical ships .......................................... 666 999 999 OPNAV support activity ............................ 5,300 5,380 5,380 Consolidated civilian Personnel Offices . 8,650 8,602 8,602 Naval civilian personnel command-field . 7,341 8,591 8,591 Navy manpower and national analysis centers .................................................... 14,775 16,339 16,339 Management headquarters ....................... 11,157 12,558 12,558 Naval military personnel command ......... 51,494 56,625 56,625 Enlisted Personnel Management Center. 3,251 3,251 3,251 Navy family allowance activity ................. 1,995 2,032 2,032 Navy personnel evaluation boards .......... 3,539 3,622 3,622 Human Resources Management Center. 217 248 248 Base operations ......................................... 100,091 108,806 108,806 Payments for postal services ................... 35,293 37,257 37,257 Vice President's grounds support ........... 162 168 168 White House/MCDEC helicopter sup- port .......................................................... 3,153 3,477 3,477 Congressional travel .................................. 89 112 112 NCR facilities and services staff ............. 616 602 602 Subtotal ............................................ 404,341 435,583 435,583 International headquarters and agen- cies .......................................................... 148 165 165 OTHER ADJUSTMENTS Contract consultant support ................................................................... -70,000 Inflation adjustment .................................................................................. 201,600 Specific program adjustments recommended by the Committee are as follows: Maritime pre-positioning ship program (TAK-X).-The latest budget revision proposed a chartering program to lease ships at a cost of $60 million for fiscal year 1982. However, the Navy did not substantiate the request or provide any outyear estimates to assess the relative advantage of charter versus purchase. Accordingly the authorization conference committee specifically denied the request. Therefore, the Committee recommends that this amount be deleted from the budget request. Ship operations.-Navy reduced ship steaming hours by $173 million in the last budget revision which partially draws down commitments in the Indian Ocean. Other proposals have been recommended to restore November 14. 1981 5:50 PM4 Approved For Release 2007/03/03: CIA-RDP89M0061OR00010004 1-9x Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 $100 million to yield roughly 1 more hour per quarter for ship steaming hours. Recommend the addition of $100 million for this purpose. Other sea maintenance support.-Without regard to any other pro- posals to the contrary, the Committee recommends that funds be provided at the budget request level for the overhaul of crew berthing barges. Failure to overhaul these barges would force the Navy to assign fewer ships' crews to the barges, and seek alternative accommodations away from the industrial facility at a greater expense. Due to the cost in- efficient alternative, the Committee recommends support of this pro- gram at the budget request. Leased satellite communications (LEASAT program).-Navy has iden- tified advance funding need of $59 million for LEASAT due to a change in the financing procedures and leasing agreements. Although this item was identified prior to budget revisions, the Navy did not re- quest any change in funding authority to accommodate this priority. In view of the conference authorization action, the Committee recom- mends that the Navy fund this priority within appropriation funding available. Stores ship "Tarbatness".-The revised budget request provides for funding to lease the stores ship Tarbatness from the British Gov- ernment. Due to the current requirement for additional stores of ships, and regardless of any proposals to the contrary, the Committee recom- mends that funding be provided at the budget request. Ship overhaul-DD-976 U.S.S. "Merrill".-As a direct consequence of the Navy's decision to reactivate the U.S.S. New Jersey at the Long Beach Naval Shipyard, the Navy was forced to reassign a number of ship overhauls which had been planned for this yard prior to that deci- sion. Consequently, the Merrill overhaul was slipped to fiscal year 1984. In view of this action the Committee recommends that $16.4 million be deleted from the request to reflect the realinement of this overhaul beyond fiscal year 1982. Funds are provided for a short industrial period to install the Tomahawk missile system on this ship. Further, the Committee views any increases to the cost of overhauls reassigned from this shipyard as a direct cost associated with the decision to reactivate U.S.S. New Jersey. Naval Arctic Research Laboratory.-The Committee recommends a reduction of $4.3 million to reflect the reversal of the decision to trans- fer control of this facility from the Navy to the Department of the Interior. This amount had been requested to assume the cost of closure and transportation of equipment from this lab. Ship overhaul change orders and advanced funding.-Beginning in fis- cal year 1983 the Committee directs that the Navy budget for ship change orders in the same fiscal year in which the ship is inducted. Further, the Navy should finance the procurement of all long-lead materials through the stock fund to be provided in the same fiscal year in which a ship enters an industrial facility. The effect of this recom- mendation will be to improve the accountability of fiscal year funding provided for ship maintenance. Unlike prior year programs, as of fiscal year 1983 all costs associated with ship overhauls and repair will be charged to the same fiscal year funding as the year that the ship enters overhaul. The recommendation to defer implementation of this financ- Jacket No. 00-000 DEFENSE REPORT-06 November 14. 1981 5:50 PM Ar)r)roved For Release 2007/03/03: CIA-RDP89M00610R000100043t 1St X Approved For Release 2007/03/03: CIA-RDP89M00610R000100040021-9 ing procedure has been made in recognition of the adjustments neces- sary to accommodate this effort in the fiscal year 1983 budget sub- mission. S-3 flying hours.-Committee recommends the reduction of $9 mil- lion from the S-3 aircraft flying hour program due to avionics equipment and maintenance problems which will preclude the ac- complishment of the full flying hour program. Helo maintenance.-It is recommended that $1.2 million be reduced from the request to reflect actual contract cost vice budget estimates for the maintenance of helicopters. Flying hour program.-Committee recommends the addition of $25 million to raise the number of flying hours beyond the constrained program currently budgeted. This recommendation considers current tensions in the Mediterranean and Indian Oceans. Barge operations-Diego Garcia.-Without regard to any proposals to the contrary, the Committee recommends a funding level at the budget request for barge operations on Diego Garcia. Navy conducts all servic- ing of logistics in transports ships from barges assigned to this island base. Transfer of ammunition ships from reserve to active fleet.-The Com- mittee recommends that $20.3 million be added to the budget request to reflect the realinement of funding for Navy ammunition ships which had been tranferred from the reserve to the active fleet. Funds will provide for the operation of the Mauna Kea and Pyro. Chief of naval material-(CNM) headquarters.-This is the head- quarters operation of Navy acquisition and logistics functions. As such, it is the parent command of a multitude of specialized systems com- mands, engineering laboratories and performs as the overall corporate management of systems procurement and resources. CNM headquarters performs very few direct line management functions, but acts as a review and oversight authority. A variety of internal Navy, Office of the Secretary of Defense and congressional reviews have questioned the possible duplication of CNM headquarters as it relates to subordinate commands and its relative impact on the overall program it was designed to manage. In light of this continued speculation, the Committee directs the De- partment of Defense to develop a report in conjunction with the Navy which: examines the role of the CNM headquarters, excluding the Consolidated Civilian Personnel Office, Strategic Systems Project Office, and the Joint Cruise Missile Project Office; proposes several organiza- tional alternatives to the present CNM headquarters concept; and ad- dresses the specific alternative of disestablishment of this headquarters by the end of fiscal year 1983. It is requested that this report be pro- vided to the Committee by February 1, 1982. In the interim, reduction of $5 million is recommended to cancel the emphasize on headquarters control of cost estimating and analysis, reduce management support contracts of CNM headquarters and associated project managers, and a decrease of civilian personnel as planned by the CNM headquarters. Commander-In-Chief, Naval Forces, Europe.-The Commander-In- Chief, U.S. Naval Forces, Europe (CINCUSNAVEUR) performs a number of functional roles including operational control of the 6th November 14, 1981 5:50 PM 00610800010004@ h` Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 Fleet, and supervises the Navy shore activities in Europe. Despite num- erous attempts to reduce management headquarter staffs, this organi- zation is growing despite the overall management headquarters trend of negative or no growth. Regardless of any other proposal to the contrary, the Committee supports funding at the budget request, yet it is the Committee's intention to examine this growth pattern during the up- coming fiscal year 1983 budget reviews. Committee adjustments to the budget estimate, including those not specifically addressed in this report, are summarized in the following table: Committee recommendation Maritime prepositioning ship program (T-AKX) ............................................. - $60,000,000 Ship operations ........................................................................................................ + 100,000,00 U.S.S. Merrill ........................................................................................................... - 16,400,000 Naval Arctic Research Laboratory ....................................................................... -4,300,000 S-3 flying hours ...................................................................................................... 9,000,000 Helo maintenance .................................................................................................... -1,200,000 Flying hours ............................................................................................................. + 25,000,000 Contract consultants ................................................................................................ -70,000,000 Ammunition ships ................................................................................................... + 20,300,000 DOL payments ........................................................................................................ -12,000,000 Inflation ..................................................................................................................... +201,600,000 Real property maintenance .................................................................................... + 100,000,000 Management headquarters-(CNM-HQ) ............................................................ -5,000,000 November 14, 1981 5:50 PM Annrn\/Pd Fnr Release 2007/03/03: CIA-RDP89M0061OR000100040R 2q6--5l.bx Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 NAVY STOCK FUND 1981 appropriation ..................................................................................................... 5309,000,000 1982 budget estimate ................................................................................................. 17,435,000 House allowance ......................................................................................................... Committee recommendation ..................................................................................... 17,435,000 This appropriation provides for the purchase of war reserve material. The Navy Stock Fund purchases consummable items-repair parts, clothing, and other materials-and holds them for use in the event of an outbreak of hostilities. The Committee recommends an appropriation of $17,435,000, the same as the budget estimate. OPERATION AND MAINTENANCE, MARINE CORPS 1981 appropriation ............................................................................................... $1,072,206,000 1982 budget estimate ........................................................................................... 1,176,940,000 House allowance ................................................................................................... Committee recommendation ............................................................................... 1.186,440,000 The Committee recommends an appropriation of $1,186,440,000. This is $9,500,000 above the budget estimate. This appropriation provides for the activities of the active Marine Corps, including the pay of civilian personnel, operation and main- tenance of aircraft, equipment and bases, training, and all associated ac- tivities. The following detail table provides a program comparison of the Committee recommendation to the budget request. [In thousands of collars] 1981 Budget Committee enacted amount estimate recommendation GENERAL PURPOSE FORCES Land forces ................................................ $220,796 $216,903 $216,903 Naval forces ............................................... 7,098 10,282 10,282 Tactical air forces ..................................... 32,118 32,788 32,788 Base operations-forces ........................... 401,652 459,801 459,801 Base communications-forces ................. 10,274 9,993 9,993 Economic assumptions .................................................... -3,000 -3,000 Subtotal ............................................ 671,938 CENTRAL SUPPLY AND MAINTENANCE Supply depot operations .......................... 30,785 31,621 31,621 Inventory control point ............................. 12,893 14,833 14,833 Transportation of things ........................... 30,114 37,372 37,372 Centrally managed programs ................... 28,860 29,440 29,440 Commissary stores operations ................. 11,893 12,074 .12,074 Equipment maintenance ........................... 56,741 60,785 60,785 Base operations-supply and main- tenance ................................................... 40,299 41,492 41,492 Base ? communications-supply and maintenance ........................................... 1,330 1,909 1,909 Subtotal ............................................ 212,915 229,626 229,526 03: CIA-RDP89MOO61OR0001000 Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 TRAINING AND MEDICAL Recruit training .......................................... 3.975 4,248 4,248 Specialized skill training ........................... 7,273 7,498 7,498 Professional development ......................... 1,138 1,165 1,165 Officer acquisition ..................................... 243 236 236 Flight training ............................................. 47 51 51 Training support ........................................ 13,409 15,005 15,005 Recruiting ................................................... 31,227 35,472 35.472 Advertising .................................................. 13,719 13,217 13,217 Off-duty education ..................................... 5,175 4,476 4.476 MCJROTC ................................................... 1,668 1,735 1,735 Other personnel support .......................... 751 764 764 Base operations-training ......................... 73,149 76,946 76.946 Base communications-training ............... 1,371 1,467 1,467 ADMINISTRATIVE AND ASSOCIATION ACTIVITIES Departmental administrative ..................... 4,246 4,310 4,310 Nondepartmental administrative ............... 15,912 16,248 16,248 Other administrative .................................. 29,985 32,878 32,878 Base operations-administrative .............. 5,122 3,508 3,508 Base communications-administrative .... 1,243 1,323 1,323 OTHER ADJUSTMENTS Inflation adjustment .................................................................................. 9,600 All Committee recommended adjustments to the budget estimate, in- cluding those not specifically addressed in this report, are summarized in the following table: committee recommendation DOL payments .......................................................................................................... _S100'000. Inflation adjustment .................................................................................................. +9,600,000 MARINE CORPS STOCK FL'D 1981 appropriation ....................................................................................................... 84,108,000 1982 budeet estimate ................................................................................................... 13,334,000 House allowance ........................................................................................................... Committee recommendation ....................................................................................... 13,334,000 This appropriation provides for purchase of war reserve material. The Marine Corps Stock Fund purchases consummable items-repair parts, clothing, and other materials-and holds them for use in the event of an outbreak of hostilities. The Committee recommends an appropriation of $13,334,000, the same as the budget estimate. November 14. 1981 5:52 PM Approved For Release 2007/03/03: CIA-R DP89M00610R00010004 1C4 1& b, Approved For Release 2007/03/03: CIA-RDP89M00610R000100040021-9 . OPERATION AND MAINTENANCE, AIR FORCE 1981 appropriation ................................................................................................ S14.769.614.000 1982 budget estimate ............................................................................................ 16.696.076.000 Committee recommendation ................................................................................ 16.903.069.000 The Committee recommends an appropriation of $16,903,069,000. This is $206,993,000 above the budget estimate. This appropriation provides for the activities of the active Air Force, including the pay of civilian personnel, operation and maintenance of aircraft, equipment and bases, training, direct care medical programs, and all associated activities. The following detail table provides a progr,,m comparison of the Committee recommendation to the budget request. [In thousands of dollars] 1981 Budget Committee enacted amount estimate recommendation STRATEGIC FORCES Aircraft ........................................................ $1,280,178 $1,378,014 $1,389,414 Missiles ....................................................... 99,475 109,426 109,426 Other offensive OPNS ............................... 58,695 62,637 59,137 Telecommunications and command con- trol ........................................................... 89,723 113.843 113,843 Base operations ......................... :............... 513,994 561,168 586,168 Surveillance and warning-radars........... 250,073 280,066 270,666 Surveillance satellites ................................ 95,315 113,246 111,246 Other defensive OPNS .............................. 126,100 137,461 - 137,461 Telecommunications and command con- trol ........................................................... 71,591 87,743 87,743 Base operations ......................................... 291,200 319,765 344,665 Subtotal ............................................ 2,876,344 3,163,369 3,209,769 GENERAL PURPOSE FORCES Tactical fighters and weapons ................. 1,014,603 1,191,052 1,188,852 Tactical reconnaisance electronic war- fare and special operations forces...... 97,166 111,845 109,545 JCS exercises ............................................ 200,049 299,710 299,710 Combat support ......................................... 467,999 555,205 544,105 Other command and control .................... 176,512 160.946 160,946 Other tactical operations .......................... 78,166 95,515 91,815 Major range and test facilities ................. 34,129- 40,637 40,637 Tactical intelligence and special ac- tivities ...................................................... 77,976 101,589 101.589 Telecommunications and command con- trol ........................................................... 84,021 96.674 96,674 Base operations ......................................... 1,081,153 1,273,730 1,314,730 Foreign currency reduction (German mark) ....................................................... -13,000 -13,000 INTELLIGENCE AND COMMUNICATIONS Consolidated cryptologic program .......... 92,679 95,682 95,682 General defense intelligence program (GDIP) ...................................................... 212,860 228,420 228,420 Jacket No. 00-000 DEFENSE REPORT-06a N ov ember 14. 1981 5:52 PM4 7/03/03: CIA-RDP89M0061 OR00010004k3?2a189 x Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 Foreign counterintelligence program ...... 2,008 2,204 2,204 Communications security program .......... 8,321 9,654 9,654 Other communications .............................. 136,724 163,008 159,008 Station operations communications ........ 88.699 114,026 114,026 Leased communications ........................... 175,603 212.327 212,327 Service-wide activities ............................... 129,518 122,206 122,206 Space support ........................................... 135,127 185,530 185,530 Base operations ......................................... 25,230 28,982 28,982 Subtotal ............................................ 1,006,769 1,162,039 1,158,039 AIRLIFT AND SEALIFT Assigned airlift mission ............................. 505,097 557,253 557,253 Mission support ......................................... 167,512 199,687 199,687 Command support ..................................... 16,781 20,504 20,504 Telecommunications and command con- trol ........................................................... 15,942 19,970 19,970 Base operations ......................................... 347,556 402,522 406,522 Subtotal ............................................ 1,052,888 1,199,936 1,203,936 CENTRAL SUPPLY AND MAINTENANCE Supply depots ............................................ 237,089 260,324 260,324 Inventory control ....................................... 344,407 388,276 388,276 Procurement operations ........................... 120,398 140,510 140,510 Depot maintenance ................................... 2,449,801 2,655,759 2,660,259 Industrial fund/stock fund support ......... 45,700 -58,591 -58,591 Transportation ............................................ 470,142 579,788 579,788 Miscellaneous logistics support ac- tivities ...................................................... 157,431 189,416 189,416 Printing publications distribution ............. 31,206 46,449 46,449 Test ranges ..............................................:. 182,308 214,944 209,497 Command ................................................... 56,808 57,678 57,678 Commissary operations ............................. 158,657 168,799 168,799 Telecommunications and command con- trol ........................................................... 22,300 24,527 24,527 Base operations ......................................... 416,305 468,019 469,019 Inflation reduction ...................................:. - 14,900 - 14,900 Subtotal ............................................ 4,692,552 5,120,998 5,121,051 TRAINING, MEDICAL, OTHER GROUP Recruiting and advertising ....................... 50,074 53,895 53,895 Recruit and specialized training .............. 135,852 176,247 169,387 Officer acquisition ..................................... 44,045 48.978 48,978 Flight training ............................................. 260,030 322,876 322,876 Professional development education....... 30,708 33,921 33,921 Medical training ......................................... 22,572 25,592 25,592 Other personnel activities ........................ 74,333 89,308 89,308 Other training support ............................. 47,944 51,173 51,173 T & CCP-training ..................................... 15,846 17,729 17,729 Base operations ......................................... 354,622 416,257 418,257 Hospital operations ................................... 398,446 413,254 413,254 Care in nonservice facilities ..................... 21,328 30,529 30,529 T & CCP-medical .................................... 3,331 3,726 3,726 Base operations ......................................... 75,637 86,043 86,043 Jacket No. 00-000 DEFENSE REPORT-06a November 14. 1981 5:52 PM AnnroyPrl For RPIPacP 2007/03/03: CIA-RDP89M00610R0001004 #13` Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 ADMINISTRATIVE AND ASSOCIATION ACTIVITIES Departmental headquarters ...................... 59,825 64,107 64,107 Servicewide support .................................. 235,154 207,431 203,931 Personnel activities ................................... 34,781 38,909 38,909 Other support activities ............................ 9,113 9,501 9,501 Telecommunications and command con- trol ........................................................... 5,529 6,824 6,824 Base operations ......................................... 18,649 18,629 18,629 Subtotal ............................................ 363,051 345,401 341,901 MILITARY ASSISTANCE ACTIVITY Support of other nations .......................... 5,668 20.902 20,902 Total, military assistance activity .. 5,668 20,902 20,902 OTHER ADJUSTMENTS Inflation adjustment .................................................................................. 147,200 CONLMIITTEE ADJLSTMENTS Specific program adjustments recommended by the Committee are as follows: Depot maintenance industrial fund.-The Committee has determined that it is undesirable for the Air Force to continue to award depot maintenance contracts in advance of appropriations and directs the Air Force to award only those contracts for which appropriations are currently available. For many years the Air Force has awarded contracts to private con- tractors for depot maintenance work financed through the industrial fund. This practice affords the opportunity to award contracts beyond the end of a fiscal year, but for which appropriations are not yet avail- able. The Air Force in effect awards many contracts on the basis of an- ticipated reimbursements. An August 1981 General Accounting Office report questioned the propriety of this practice, holding that obligations cannot legally be in- curred prior to provision by Congress of appropriation authority. The Air Force and the Department of Defense disagreed with the findings. Regardless of the legal arguments over Air Force use of the industrial fund, the Committee finds the practice tantamount to creating an en- titlement and one that forecloses congressional funding decisions. A number of alternatives were considered to midify the financial management of this program to achieve the financing of contracts with current appropriations. The alternative selected should accommodate both the Air Force budget requirements and the Committee's desire to preserve appropriation integrity. The Air Force is directed on a phased basis to: Award only those depot maintenance contracts for which appropria- tions are available; Award only those contracts based on inputs in future years which in- clude the provision that renewal is contingent upon the availability of future appropriations, and; Jacket No. 00-000 DEFENSE REPORT-06a Approved For Release 2007/03/03: CIA-RDP89M00610R000100c r~4 1981 5:52 PM4 Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 Discontinue the financing of depot maintenance contracts through the industrial fund. The Committee recognizes that this approach is a dramatic departure from current practice which will require extensive administrative adjust- ment. However, it should be noted that this alternative should have the least impact on the actual performance of the industrial work. Because of the administrative difficulties involved this change should become ef- fective in fiscal year 1983. Throughout fiscal year 1982 the Air Force should maximize the number of contracts within current available fund- ing and make adjustments to contracting procedures to assure a full transition to this approach commencing in fiscal year 1983. Training.-The March amendment included an additional $8 million for the recruitment and training of 7,000 nonprior service enlistments. The most recent budget revision reduced the Air Force military person- nel end strength and eliminated 6,000 nonprior service enlistments from the plan. The Committee recommends a reduction of $6.86 million to reflect realinement of funding with actual training plan requirements. Test ranges.-The Air Force maintains a number of test ranges and launch sites for Government and nongovernment users. Nongovernment users are charged the total cost associated with test launches, yet Gov- ernment users are charged only the direct expense of a launch and the Air Force assumes all overhead expenses. The Committee recommends a decrease of $5.447 million which represents the overhead cost as- sociated with Government use of test ranges. This recommendation would change the Air Force financial practice to charge all users the same rate without regard to Government or nongovernment use. National emergency airborne command post.-The March amendment requested funding for the proposed movement of the airborne com- mand post primary alert aircraft. Current information indicates that the relocation of the aircraft has been delayed beyond this fiscal year. Therefore, a decrease of $4 million is recommended. Alaskan Air Command real property maintenance.-The Alaskan Air Command backlog of real property maintenance is estimated at over $34 million which is an inordinately high share of the total Air Force backlog for this singular command to assume. An increase of $7 million is recommended to lower this backlog and will be used to affect needed reapirs and improvements to the Shemya Air Force Base facilities. Desert and mountain unit training.-The request includes $10 million for support training of units in desert and mountain environments, yet the Air Force has not identified the training which would be conducted or types and quantities of aircraft that would be involved. Committee feels that this request is redundant to other increases for training exercises and recommends that funds be denied. Simplified processing station.-Funds are requested for operational costs associated with the decision to move this station of the defense support program to an overseas location. Current information indicates the planned movement has been canceled thereby negating the require- ment for the additional $2 million. Air base ground defense fights.-Regardless of any other proposals to the contrary, the Committee recommends funding at the budget request for Air Force initiatives to improve detection capabilities in the event of ground attack against air bases in Europe and Korea. November 14. 1981 5:52 PM Aooroved For Release 2007/03/03: CIA-RDP89M0061 OR00010004C~b2l'acll.bs Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 Cadin-Pinetree line air defense system.-Additional funding is re- quested to pay the Canadian Government for the cost of radar site operations and maintenance. Regardless of any other proposals to the contrary, the Committee recommends concurrence with the budget re- quest, but directs the Air Force to begin reviewing the agreement with the Canadian Government to yield greater accountability of cost in- curred. Distant early warning line radar.-An additional $19.4 million is re- quested to operate 18 DEW line radars which is a reversal of a prior decision to phase out part of this operation. However, previous budget information did not reflect a reduction of funds for this purpose. Current estimates indicate that the Air Force request is overstated by $9.4 million and is reduced accordingly. Miscellaneous adjustments.-Committee recommends a reduction of $4.1 million to reflect changes in funding requirements for the Rapier air defense system, B-52 trainer and ground launch cruise missile. B-52D retirements.-The amended budget included the recommenda- tion to retire three B-52D aircraft squadrons and a combat training squadron. In view of the recent improvements to these aircraft, the Committee recommends restoring $18.9 million to retain operation of these aircraft through this fiscal year. Base operations support.-The Committee recommends a reduction of $7.1 million to reflect savings as indicated in this area by the General Accounting Office and to reduce support costs associated with the F - 106 phasedown. Flying hours.-A reduction of $8 milion is recommended to realine funding estimates for the support cost of helicopter units, offsensive training and reconnaissance aircraft programs. Foreign exchange rate-Korean Won.-The Committee recommends the reduction of $2 million to reflect the improved exchange rate of the dollar to the Korean Won. Since the budget submission, rates have im- proved to a ratio of 686 to 1. This reduction reflects savings from the budget estimate. Management headquarters.-The Air Force engages in a series of innovative finacing methods in an effort to accommodate increases in management headquarters level staff. The most unique practice is to comingle operations funding with research and development funding to finance the actual cost of civilian personnel and associated support ex- penses. In addition, there has been continuing speculation and other proposals which suggest duplicity of special management headquarters operations. Other proposals have been advanced to examine the con- solidation of the U.S. Readiness Command which is the parent head- quarters of the rapid deployment joint task force and myriad of sub- ordinate activities. In recognition of these other proposals and the un- usual financing methodology, the Committee recommends a reduction of $3.7 million. Despite many initiatives from the Congress to reduce management headquarters operations, there is strong reason to believe that these reductions have not been effected fully. It is the Committee's intention to examine the growth of management headquarters during the fiscal year 1983 review. v m er 13.1981 5:52 PM roved For Release 2007/03/03: CIA-RDP89MO061OR00010004Q~ l.nx Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 SUMMARY OF COMMITTEE ADJUSTMENTS Committee adjustments to the budget estimate, including those not specifically addressed in this report, are summarized in the following table: Committee Item recommendation Training ..................................................................................................................... - S6,800,000 Test ranges ................................................................................................................ -5,447,000 National emergency airborne command post .................................................... -4,000,000 Alaskan Air Command real property maintenance .......................................... +7,000,000 Desert and mountain unit training ...................................................................... - 10,000,000 Simplified processing station ................................................................................. -2,000,000 DEW line radar systems ........................................................................................ -9,400,000 Miscellaneous reductions ........................................................................................ -4,100,000 B-52D retirements ................................................................................................... + 18,900,000 Base operations support ......................................................................................... -7,100,000 Flying hours ............................................................................................................. - 8,000,000 Foreign exchange rate ............................................................................................ -2,000,000 Management headquarters ..................................................................................... -3,700,000 DOL payments ........................................................................................................ - 3,500,000 Real property maintenance .................................................................................... + 100,000,000 Inflation ..................................................................................................................... + 147,200,000 November 14, 1981 5:52 PM Approved For Release 2007/03/03: CIA-RDP89M0061OR00010004001&981.bx Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 AIR FORCE STOCK FUND . 1981 appropriation ...................................................................................................... 528.300.000 1982 budget estimate .................................................................................................. 107,800,000 House allowance .......................................................................................................... Committee recommendation ...................................................................................... 107,800.000 This appropriation provides for purchase of war reserve material. The Air Force Stock Fund purchases consummable items-repair parts, clothing, and other materials-and holds them for use in the event of an outbreak of hostilities. The Committee recommends an appropriation of $107,800,000, the same as the budget estimate. OPERATION AND MAI\-rENANCE, DEFENSE AGENCIES 1981 appropriation ................................................................................................ 54,380,816,000 1982 budget estimate ............................................................................................ 4,635,500,000 House allowance .................................................................................................... Committee recommendation ................................................................................ 4,778,000,000 The Committee recommends an appropriation of $4,778,000,000. This is $142,500,000 above the budget estimate. This appropriation finances the operation and maintenance costs of the Office of the Secretary of Defense, the Office of the Joint Chiefs of Staff (JCS), nine Defense-wide agencies, and several field activities. Included are funds for American Forces Information Service, Civilian Health and Medical Program of the Uniformed Services (CHAMPUS), Tri-Service Medical Information System (TRIMIS), Dependents Educa- tion, Uniformed Services University of the Health Sciences (USUHS), and the Washington Headquarters Service. The following detail table provides a program comparison of the Committee recommendation to the budget request. (In thousands of dollars) 1981 Budget Committee enacted amount estimate recommendation OPERATION AND MAINTENANCE, AGENCIES Defense investigative service ................... 68,619 76,205 76,205 Defense mapping agency ......................... 308,383 326,048 326,048 Defense nuclear agency ........................... 30,708 33,570 33,570 Intelligence and communications ............ 1,079,026 1,172,144 1,172,144 Defense logistics agency .......................... 1,232,703 1,292,315 1,292,315 Overseas dependent education ............... 390,435 400,548 475,548 American forces information service ...... 30,971 32,109 32,109 Uniformed services University of the Health Science ....................................... 22,301 25,593 25,593 Civilian health and medical progress of the uniformed service ........................... 880,764 938,631 968.631 Medical information system ...................... 37,923 46,921 46,921 Secretary of Defense ................................ 84,415 98,012 108,012 Office of Economic Adjustment ............... 2,080 2,402 2,402 Defense audiovisual agency ..................... 14,946 16,552 16,552 Washington headquarters service ........... 49,848 54,662 54,662 Office of Joint Chiefs of Staff ................. 16,984 17,510 17,510 November 14. 1981 6:03 PNI Approved For Release 2007/03/03: CIA-RDP89M0061 OR000100040921 1.bx Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 Defense contract audit agency ................ 99,920 102,725 102,725 Defense audit service ............................... 16,990 17,753 17,753 Inflation, foreign currency, economic as- sumptions ....................................................................... - 18,200 -18,200 DOL disability compensation ................................................................... - 4,500 Inflation adjustment .................................................................................. 32,000 Specific program adjustments recommended by the Committee are as follows: Dependent education.-The Department of Defense is directed to as- sume the cost of the continuing operation and maintenance of the schools on military installations. The Omnibus Reconciliation Act of 1981 shifted the responsibility for the cost of these schools from the Department of Education to the Department of Defense. Authority had previously been covered under Public Law 81-874, section 6. Although the impact of the provisions of the Reconciliation Act have been known for some months, the Department of Defense failed to address the funding requirement for this program despite successive budget re- visions. Despite this circumstance, the Committee concurs with other proposals to recommend funding of $75 million for the Department of Defense to assume the cost of operation of the schools. The Depart- ment is directed to budget for this program in fiscal year 1983 under the operation and maintenance account for defense agencies. CHAMP US payments.-The most recent budget revision reduced $30 million to adjust the estimate of payments for expected CHAMPUS bill- ings in fiscal year 1982. However, the Committee recognizes that CHAMPUS payments are must pay bills which would be absorbed from other programs if sufficient funding were not provided. No evidence exists to suggest that billings will be any less than assumed in the original budget submission. The consequence of not providing this funding would be to stretch out reimbursements to military personnel. The Committee views untimely reimbursements as an unacceptable al- ternative tc ATy funding the original budget estimate. Accordingly the addition of $30 million is recommended for continued payments throughout this fiscal year. Defense Investigative Service.-This agency is tasked with the perfor- mance of completing personnel security investigation of employees of the Department of Defense and contractor personnel involved in de- fense programs. The requirement for investigations has been increasing in recent years, yet the number of investigators for this agency has re- mained constant over these years. Consequently, a large backlog is developing of uncompleted unvestigations. Moreover, the time to com- plete investigations is no approaching 150 days between request and completion. This circumstance poses a significant problem for the Department and Defense contractors who may not effectively utilize recently hired personnel until clearances have been completed. Subsequent to the budget submission this problem was addressed by the Department at hearings conducted by this Committee. The Commit- tee has been notified that the Deputy Secretary of Defense has ap- proved the hiring of 200 additional investigators for the Defense In- November 14. 1981 6:03 PM1 ADoroved For Release 2007/03/03: CIA-RDP89M00610R00010004Mff,-?Ib.\ Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 vestigative Service, and the hiring of an additional. 100 investigators by contract. The Committee agrees that the current situation is un- acceptable, yet the solution to the problem is more appropriately found within existing civilian personnel ceilings of the Department of Defense, and does not concur with the use of contractor personnel to assume a portion of this investigation workload. The Committee directs the De- partment of Defense to proceed with the addition of Government serv- ice investigators within appropriation funding available. Committee adjustments to the budget estimate, including those not speciifically addressed in this report, are summarized in the following table: Committee recommendation Dependent education .............................................................................................. + S75,000,000 CHAMPUS ............................................................................................................... + 30,000,000 .Spouse and child advocacy programs ................................................................. + 10,000,000 DOL payments ........................................................................................................ -4,500.000 Inflation ..................................................................................................................... + 32,000,000 DEFE\'SE STOCK FuN7D 1981 appropriation ..................................................................................................... 5458,000,000 1982 budget estimate ................................................................................................. 79,000,000 House allowance ......................................................................................................... Committee recommendation ..................................................................................... 79,000,000 This -appropriation provides funds for purchase of war reserve material. The Defense Logistics Agency purchases consummable items that are centrally managed, and holds them in its own and the services' depots for use in the event of an outbreak of hostilities. The Committee recommends an appropriation of $79,000,000, the same as the budget estimate. OPERATION AND MALVTE\'ANCE, ARMY RESERVE 1981 appropriation .................................................................................................... S522,793,000 1982 budget estimate ................................................................................................ 614,900,000 House allowance ........................................................................................................ Committee recommendation .................................................................................... 619,700,000 The Committee recommends an appropriation of $619,700,000 for fis- cal year 1981. This is 4,800,000 above the budget request. This appropriation provides for the activities of the Army Reserve, in- cluding the pay of civilian personnel, operation and maintenance of facilities and aircraft, support of training activities, and all associated ac- tivities. The following detail table provides a program comparison of the Committee recommendation to the budget request. Jacket No. 00-000 DEFENSE REPORT-07 November 14.1981 6:03 PM .. b` A roved For Release 2007/03/03: CIA-RDP89M0061OR00010004 -?. Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 1981 Budget Committee enacted amount estimate recommendation OPERATION AND MAINTENANCE, ARMY RESERVE Training and organization of mission forces ...................................................... 293,321 373,600 373,600 Depot maintenance ................................... 5,706 7,500 7,500 Communications ........................................ 9,338 10,063 10,063 Base operations ......................................... 150,455 153,583 153,583 Recruiting and advertising ....................... 33,518 40,316 40,316 Management support ................................ 29,210 31.838 31,838 Economic assumptions .................................................... - 2,000 - 2,000 Inflation adjustment .................................................................................. 4,800 OPERATION AND MALN=ANCE, NAVY RESERVE 1981 appropriation .................................................................................................... 5554,172,000 1982 budget estimate ................................................................................................ 578,640,000 House allowance ........................................................................................................ Committee recommendation .................................................................................... 565,540,000 The Committee recommends an appropriation of $565,540,000. This is $13,100,000 below the budget request. This appropriation provides for the activities of the Navy Reserve, in- cluding the pay of civilian personnel, operation and maintenance of facilities and aircraft, support of training activities, and all associated ac- tivities. Costs of operating the Marine Reserve Air Wing are also in- cluded. The following detail table provides a program comparison of the Committee recommendation to the budget request. Jacket No. 00-000 DEFENSE REPORT-07 November 14,1981 6:03 PM 007/03/03: CIA-RDP89M0061 OR00010004@1 2t89bc Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 1981 enacted amount Budget estimate Committee recommendation OPERATION AND MAINTENANCE, NAVY RESERVE Naval air forces ......................................... 190,872 209,721 209,721 Surface support forces ............................. 2,519 3,710 3,710 Ship operations .......................................... 47,797 53,583 55,583 Ship maintenance ...................................... Overhaul mod. shipping equipment and 100,643 84,299 65,999 related spt ............................................... 1,013 525 525 Special combat support forces ................ 2,907 2,583 2,583 Fleet operations support .......................... 677 477 477 Economic assumptions .................................................... -2,000 - 2,000 DEPOT MAINTENANCE Aircraft maintenance ................................. Contractor engineering technical serv. 77,708 76,071 76,701 ices .......................................................... 7,977 8,980 8,980 Subtotal ............................................ 85,685 85,051 85,051 OTHER SUPPORT Management headquarters ............... :....... 4,690 4,467 4,467 Base operations ......................................... 117,369 136,224 136,224 Subtotal ............................................ 122,059 140,691 140,691 Ammunition ship transfer.-The Committee recommends the reduc- tion of $20.3 million to reflect the transfer of the Mauna Kea and Pyro from the reserve to the active fleet. Mine sweeper operations.-The Committee recommends the addition of $4 million for continued operations of six mine sweepers. These ships had been scheduled for deactiviation at the end of this fiscal year. COMMITTEE ADJUSTMENTS All committee adjustments recommended are summarized in the fol- lowing table: commune mommendation Ammunition ship transfer ...................................................................................... -520,300,000 Mine sweeper operations ....................................................................................... +4,000,000 Inflation ..................................................................................................................... +3,200,000 DEFENSE REPORT-07 November 14, 1981 6:03 PM OR00010004c81-8~.bx Approved For Release 2007/03/03: CIA-RDP89M00610R000100040021-9 OPERATION AND MAINTENANCE, MARINE Coxes RESERVE 1981 appropriation ...................................................................................................... S28,854,000 1982 budget estimate .................................................................................................. 40,299,000 House allowance .......................................................................................................... Committee recommendation ...................................................................................... 40,799,000 The Committee recommends an appropriation of $40,799,000. This is $500,000 above the budget request. This appropriation provides for the activities and training of the units of the selected reserve of the Marine Corps, including the pay of civilian personnel and all associated activities. All Committee recommended adjustments to the budget estimate, in- cluding those not specifically addressed in this report, are summarized in the following table: 1981 Budget Committee enacted amount estimate recommendation OPERATION AND MAINTENANCE, MARINE CORPS RESERVE Mission forces ............................................ 12,980 19,096 19,096 Depot maintenance ................................... 1,234 1,349 1,349 Base operations ......................................... 8,910 10,168 10,168 Other activities ........................................... 5,730 9,686 9,686 Inflation adjustment .................................................................................. 500 OPERATION AND MAINTENANCE, AIR FORCE RESERVE 1981 appropriation ..................................................................................................... S601,980,000 1982 budget estimate ................................................................................................. 678,008,000 House allowance ......................................................................................................... Committee recommendation ..................................................................................... 682,608,000 The Committee recommends an appropriation of $682,608,000. This is $4,600,000 above the budget request. This appropriation provides for the activities of the Air Force Reserve, including the pay of civilian personnel, operation and main- tenance of facilities and aircraft, support of training activities, and all as- sociated activities. All Committee recommended adjustments to the House bill and budget estimate, including those not specifically addressed in this report, are summarized in the following table: Jacket No. 00-000 DEFENSE REPORT-07 November 14, 1981 6:03 PM AnnrrnvPd For Release 2007/03/03 : C lA-RDP89M00610R00010004()W4.br Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 1981 enacted amount Budget estimate Committee recommendation OPERATION AND MAINTENANCE, AIR FORCE RESERVE Mission forces ............................................ 487,441 Depot maintenance ................................... 70,910 80,042 80,042 Other support ............................................. 102,045 112,925 111,925 4,600 Economic assumptions .................................................... -3,000 1,600 Headquarters and logistics support.-The Committee concurs with other proposals to recommend a decrease of $1.6 million for reserve headquarters reductions and logistics support service facilities sharing in- itiatives. OPERATION AND MAL=NANCE, ARMY NATIONAL GUARD 1981 appropriation ................................................................................................... $958,770,000 1982 budget estimate ............................................................................................... 1,041.200,000 House allowance ....................................................................................................... Committee recommendation ................................................................................... 1,047,600,000 The Committee recommends an appropriation of $1,047,600,000. This is $6,400,000 above the budget request. This appropriation provides for the activities and training of the Army National Guard, including the pay of civilian personnel, opera- tion and maintenance of facilities and aircraft, support of training ac- tivities, and all associated activities. All Committee recommended adjustments to the budget estimate, in- cluding those not specifically addressed in this report, are summarized in the following table: OPERATION AND MAINTENANCE, ARMY NATIONAL GUARD Training operations ................................... 194,205 186,751 186,751 Logistical support ...................................... 688,726 778,647 778,647 Headquarters and command support ..... 61,592 70,992 70,992 Medical support ......................................... 6,601 7 810 7 810 Economic assumptions .................................................... , -3,000 , -3 000 Inflation adjustment .................................................................................. , 6,400 Jacket No. 00-000 November 14, 1981 6:03 PM roved For Release 2007/03/03: CIA-R DP89M00610R00010004"8 bx Approved For Release 2007/03/03: CIA-RDP89M00610R000100040021-9 OPERATION AND MAINTENANCE, AIR NATIONAL GUARD 1981 appropriation .................................................................................................. S1,531,907,000 1982 budget estimate .............................................................................................. 1,682,468,000 House allowance ...................................................................................................... Committee recommendation .................................................................................. 1,682,568,000 This appropriation provides for the activities of the Air National Guard, including the pay of civilian personnel, operation and main- tenance of facilities and aircraft, support of training activities, and all as- sociated activities. COMMITTEE RECOMMENDATIONS The Committee recommends an appropriation of $1,682,568,000. This is $100,000 above the budget request. All Committee recommended adjustments to the budget estimate, in- cluding those not specifically addressed in this report, are summarized in the following table: 1981 Budget Committee enacted amount estimate recommendation OPERATION AND MAINTENANCE, AIR NATIONAL GUARD Operation of aircraft ................................. 500,401 574,650 574,650 Loistical support ........................................ 202,697 242,398 240,398 Training support ........................................ 851,156 865,944 963,244 Servicewide support .................................. 3,453 3,476 3 476 Economic assumptions .................................................... -4,000 , -4 000 , Inflation adjustment .................................................................................. 4,800 Headquarters and logistics support.-The Committee recommends a reduction of $4.7 million to reflect decreases in headquarters operations and encourage service facility sharing of logistics support services. NATIONAL BOARD FOR THE PROMOTION OF RIFLE PRACrICE, ARMY 1981 appropriation ............................................................................................................. $845,000 1982 budget estimate ......................................................................................................... 401,000 House allowance ................................................................................................................. Committee recommendation ............................................................................................. 845,000 This appropriation provides funds for the' Board which promotes marksmanship training with military type individual small arms among able-bodied citizens outside the active services of the Armed Forces, formulates policy governing civilian marksmanship programs, and for- mulates rules and regulations governing the national trophy matches. The Committee recommends an appropriation of $825,000. This is $401,000 above the budget estimate. Jacket No. 00-000 DEFENSE REPORT-07 November 14,1981 6:03 PM Annrnmiarl Fnr Ralaaca 2007/03/03 - C;IA-RDP8 M0061OR00010004?brPl .bc Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 CLALris, DEFENSE 1981 appropriation ...................................................................................................... S141,850,000 1982 budget estimate .................................................................................................. 195,500,000 House allowance .......................................................................................................:.. Committee recommendation ...................................................................................... 198,200,000 This appropriation provides for the payment of all noncontractual claims against the Department of Defense, as authorized by law, and represents the consolidated requirements of the Secretary of Defense and the Departments of the Army, the Navy, and the Air Force. The Committee recommends an appropriation of $198,200,000. This is $2,700,000 above the budget for inflation. Other proposals suggest reducing the budget for this account for the purpose of obtaining leverage in negotiating revised host nation support agreements for real property maintenance in West Germany, as a means of causing a general renegotiation of the status of forces agreements. Although the Committee feels that there are opportunities for greater defense cost sharing between the United States and our allies, and that these opportunities should be actively explored and pursued by the Departments of State and Defense, the Committee believes that the withholding of appropriations for legal and valid claims against the U.S. Government is not the proper way to address the issue. COURT OF MILITARY APPEALS 1981 appropriation ........................................................................................................ $2,310,000 1982 budget estimate .................................................................................................... 2,607,000 House allowance ............................................................................................................ Committee recommendation ........................................................................................ 2,607,000 This appropriation provides for the salaries of the three judges, of- ficers and employees, and other necessary expenses of the Court. The Court, which is established pursuant to the Uniform Code of Military Justice, serves as the appellate court of last resort for the more serious court-martial convictions of military personnel. The Committee recommends an appropriation of $2,607,000. This is the same as the budget estimate. Jacket No. 00-000 DEFENSE REPORT-07 November 14,1981 6:03 PM IA-RDP89M0061 OR000100040nrf2I1.bx Approved For Release 2007/03/03: CIA-RDP89M.0061 OR000100040021-9 TITLE IV PROCUREMENT APPROPRIATION SUMMARY The Committee recommends $65,846,872,000 for Department of De- fense programs in fiscal year 1982. This is an increase of $1,620,968,000 above the budget request and $17,843,202,000 above the fiscal year 1981 appropriations. AIRCRAFT PROCUREMENT, ARMY 1981 appropriation ................................................................................................. S1,193,100,000 1982 budget estimate .............................................................................................. 1,897,300,000 House allowance ..................................................................................................... Committee recommendation ................................................................................ 1,942,900,000 The Committee recommends an appropriation of $1,942,900,000, an increase of $45,600,000 above the President's budget. This appropriation provides funding for the acquisition of tactical and utility airplanes and helicopters, including associated electronics and communications equipment and armament; modification of in-service aircraft; ground support equipment; production base support; and depot reparable assemblies, components, and repair parts including spare engines, transmissions, and gear boxes. The Committee recommendations and the budget estimates are detailed in the following comparative table: [In thousands of dollars) Budget Committee estimate recommendation C)-12D cargo aircraft ............................................................................ $10,500 UV-18A utility aircraft .............................................. :.... ....................... 3,600 AH-1S attack helicopter ...................................................................... 55,000 AH-64 attack helicopter ............................................... $365,000 438,400 Advance procurement ............................................ 64,000 64,400 UH-60A utility helicopter .............................................. 484,600 484,600 Advance procurement ............................................ 60,600 60,600 Multiyear procurement ........................................... 126,000.................. .......... Modification of aircraft ................................................. 449,800 449,800 Spares and repair parts ............................................... 220,700 220,700 Support and equipment facilities ................................. 128,200 128,200 Inflation adjustment ....................................................... -2,000 27,100 PROGRAM RECOMMENDED The Committee recommendation will provide the following program for fiscal year 1981: Jacket No. 00-000 DEFENSE REPT.-08 November 14. 1981 6:26 PM nnrnvPrf Fnr RPlPa 2007/03/03: CIA-RDP89M0061 OR000100040I)OA-89.bx Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 C-12D cargo aircraft.-The Committee recommends $10.5 million for procurement of six aircraft. No funds for procurement of the C-12D aircraft were included in the budget request. The C-12D is a commercial-type, all metal, low wing, twin turbo- prop, pressurized cabin, passenger/cargo carrying utility aircraft capable of operating under instrument flight conditions day or night, in high density air traffic control zones and in known icing weather conditions. An appropriation of $3.6 million is recommended for procurement of two UV-18A Twin Otter aircraft. There was no budget estimate. The UV-18A is a twin-engine, high wing, short takeoff and landing (STOL) aircraft that can be configured for passenger or cargo opera- tions. It is capable of flight into instrument meyeorolgic conditions and severe weather, including known icing conditions. The Alaska Army National Guard has an urgent requirement for two more of these aircraft that are uniquely suited for Arctic environment. They will be assigned to scout and Arctic reconnaissance battalions of the 297th Infantry. AH-IS attack helicopter.-The Committee recommends $55 million for procurement of 12 AH-1S Cobra-Tow attack helicopters. No re- quest for this helicopter was included in the President's budget es- timate. The AH-1S is a single rotor, single engine, two-place attack helicop- ter with the capability of delivering an antitank Tow missile as well as conventional weapon rounds. AH-64 advanced attack helicopter.-The Committee recommends $438.4 million for procurement of eight AH-64 attack helicopters and $64.4 million in advance procurement funding for this new system. This is six aircraft less and $73.4 million more than the budget estimate. The AH-64 advanced attack helicopter is a twin engine, two-place, fully integrated antiarmor weapon system capable of destroying tanks and other armored vehicles during day or night and under adverse weather conditions. Although the Committee recommends the authorized funding in- crease, it has learned that substantial cost overruns will permit little more than half the anticipated unit procurement in fiscal year 1982, despite the additional funds. And the Army now estimates the pro- gramed fiscal year 1983 buy will drop from 78 to 67 aircraft even under the recommended funding level. . Further, although the September 30, 1981, Selected Acquisition Re- port estimated total program costs of $5.9 billion for 545 aircraft, the Army now indicates that figure will exceed $7 billion. This would drive up program unit costs of the AH-64 to at least $12.8 million, an in- crease of nearly $2 million even with moderate inflation projections. These figures clearly suggest program costs are out of control,? and the Committee will require a full and detailed accounting. Before any of the recommended procurement funds are committed, the Army is directed to report on all cost data to the Armed Services and Appro- priations Committees of the House and Senate. The report should include full background information and explanations for these sharp overruns, and detail what measures are being established to control DEFENSE REPT.-08 November 14,1981 6:26 PM P89M0061OR00010004 ig be Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 them in the future. It should also explain the late timing of the cost in- crease disclosure and specify any additional known problems that might further drive up costs. Finally, a detailed, updated, and explicit cost estimate revision for the program should be developed and certified. UH-60A utility tactical transport helicopter.-The Committee recom- mends $484.6 million for procurement of 96 UH-60A Black Hawk utility helicopters. The recommendation is the same as the President's budget request. In addition, the Committee recommends $60.6 million for advance procurement of long leadtime items. In agreement with the authorization bill, the Committee has deleted the $126 million budget request to initiate multiyear procurement of the Black Hawk. Development and procurement of this aircraft has suffered cost overruns similar to those of the AH-64 discussed earlier. This sys- tem should be fully cost stabilized before long-term procurement con- tracts are financed. The Black Hawk helicopter is the Army's first true squad-carrying helicopter and is replacing the UH-1 in the air assault, air cavalry, and aeromedical evacuation missions. Modification of aircraft.-The Committee recommends $449.8 million for modification of in-service aircraft. This is the same as the President's budget estimate. Increased funding over fiscal year 1981 levels are provided in all but a few modification programs. Major modification ef- forts include $273.1 million for the CH-47 Chinook and $65.9 million for the AH-1S Cobra helicopters; and $53.6 million for the RC-12D reconnaissance and $18.5 million for the OV-1 surveillance airplanes. Spares and repair parts.-The Committee recommends $220.7 million for procurement of spares and repair parts. The recommendation is in agreement with the President's budget estimate. The funds provide for centrally managed, high dollar value, depot reparable assemblies, components, and repair parts such as engines, transmissions, and gear boxes in support of an Army fleet of approx- imately 750 fixed wing and 8,000 rotary wing aircraft. Support equipment and facilities.-The Committee recommends $128.2 million for the cost of ground support equipment including air traffic control equipment, avionics, communications equipment and avionics maintenance shelters, tool sets, shop sets, ground handling and servicing equipment, special test and diagnostic equipment; component improvement; industrial facilities; and other production charges. No change in the budget estimate is recommended. MISSILE PROCLRE4IE.N'T, ARMY 1981 appropriation ................................................................................................. S1,544,900,000 1982 budget estimate .............................................................................................. 2,210,200,000 House allowance ..................................................................................................... Committee recommendation ................................................................................ 2,180,200,000 The Committee recommends an appropriation of $2,180,200,000 for "Missile procurement, Army." This is an increase of $30,000,000 below the President's budget estimate. This appropriation provides for the procurement of surface-to-air and surface-to-surface missile systems; air defense control and coordination systems; antitank/assault missile systems; modification of in-service mis- November 14, 1981 6:26 PM AnnrnvPrl Fnr RPlPasP 2007/03/03: CIA-RDP89M0061 OR000100040bg-6b` Approved For Release'2007/03/03: CIA-RDP89M0061OR000100040021-9 siles and supporting equipment; and related costs such as production base support. The Committee recommendation is detailed in the following compara- tive table: Budget estimate Committee recommendation Chaparral (MIM-72-A/C) .............................................. $4,300 $4,300 Hawk (MIM-23-B) .......................................................... 4,700 4,700 U.S. Roland ............................................................. :...... ....................... 50,000 Patriot (SAM-D) ............................................................. 720,800 670,000 Stinger ............................................................................ 223,900 203,900 Laser Hellfire .................................................................. 128,400 113,400 Pershing .......................................................................... 191,800 191,800 TOW (BGM-71A, BTM-71A) ......................................... 96,600 96,600 Multiple Launch Rocket System .................................. 179,300 179,300 Modification of missiles ................................................ 440,800 413,300 Spares and repair parts ............................................... 181,800 181,800 Support equipment and facilities ................................. 40,800 40,800 Inflation adjustment ....................................................... -3,000 30,300 Missile allowances.-Revisions in the budgeted program are in confor- mance to the authorizing legislation with the exception of the inflation adjustment. The allowance for U.S. Roland, a program proposed for termination in the September budget revision, did not permit sufficient funding for closeout costs. The recommended allowance will permit 27 fire units and 595 missiles to equip 3 batteries that will be available to the rapid deployment force. This appears to be the most effective approach to closing out additional procurement for this short-range air defense sys- tem in which the United States has already invested some $1.2 billion. The allowance for the Patriot low- to medium-altitude air defense sys- tem reduces purchases from 280 to 244 missiles. Although there has been slippage in the passive optical seeker for the Stinger short-range, shoulder-fired antiaircraft missile, the Committee recommends the full authorization to avoid any further slowdown. A reduction from 1,075 to 800 missiles is recommended in the al- lowance for the Laser Hellfire system, which is the primary antiarmor missile for the AH-64 attack helicopter. Modifications.-The recommended allowance for modification of mis- sile systems includes the elimination of $17.5 million budgeted for the Dragon and an undistributed reduction of $10 million, in agreement with the authorization. PROCUREvtEN-r OF WEAPONS AND TRACKED COMBAT VEHICLES, ARMY 1981 appropriation ................................................................................................. S3,378.200,000 1982 budget estimate .............................................................................................. 3,856,700,000 House allowance ..................................................................................................... Committee recommendation ................................................................................ 3,963,600,000 The Committee recommends an appropriation of $3,963,600,000, an increase of $106,900,000 above the President's budget. November 14. 1981 6:26 PM 89M0061 OR000100040021-6l.br Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 This appropriation provides for the procurement of tanks. armored personnel carriers and combat engineer vehicles. Funds are also in- cluded for the acquisition of machine guns, grenade launchers, towed and self-propelled guns and howitzers, laser rangefinders, associated training equipment, modification of in-service equipment, investment spares and repair parts and major components, and production base support. The Committee recommendation and budget estimates are tabulated below: Budget Committee estimate recommendation Tracked combat vehicles: Fighting vehicle system (M-2, M-3) ..................... $809,800 $800.000 Advance procurement ..................................... 59,100 59,100 Field artillery ammo support vehicle .................... 4,000............................ Medium, full-tracked recovery vehicle, M-88A1 . 148,000 123,700 M-1 combat tank, 105mm gun ............................. 1,348,000 1,424,000 Advance procurement ..................................... 212,100 212,100 Training equipment, M-1 ................................ 50,600 50,600 Modifications ........................................................... 203,100 203,100 Support equipment and facilities .......................... 383,600 383,600 Weapons and other combat vehicles: DIVAD gun .............................................................. 282,000 282,000 Advance procurement ..................................... 53,500 53,500 155mm howitzer, M-198 ........................................ 72,200 72,200 7.62mm armor machine gun, M-240 ................... 26,300 26,300 5.56mm squad automatic weapon ........................ 14,200 14,200 Radar chronograph set, M-90 .............................. 3,300 3,300 81 mm mortar, SM-242 ........................................... 1,900 1,900 Vehicle rapid-fire weapon system (Bushmaster) 31,300 31,300 Fire port weapon .................................................... 19,400 19,400 Modifications ........................................................... 13,900 13,900 Support equipment and facilities .......................... 137,400 137,400 Subtotal ................................................................ 655,400 655,400 Inflation adjustment ....................................................... -5,000 52,000 The recommended allowances for tracked combat vehicles follow the authorizing legislation. Fighting vehicle system.-The Committee recommends a $9.8 million reduction in the budget allowance for the infantry fighting vehicles, in conformance with the authorizing legislation. This is to support procure- ment of 400 vehicles, the same as the budgeted program. Field artillery ammo support vehicle.-Because of program slippage and the planned use of a stand M-109/110 howitzer chassis, the Com- mittee deleted the $4 million request for the field artillery ammunition support vehicle as premature. Recovery vehicle.-The $24.3 million reduction recommended for the M-88A1 recovery vehicle request involves a procure drop from 180 to 150 vehicles, in conformance with the authorization. November 14. 1981 6:26 PM 89M0061 OR0001000400A_61 b\ Approved For Release 2007/03/03: CIA-RDP89MOO61OR0001.00040021-9 1I-1 combat tank.-The Committee recommends a $76.3 million in- crease in the revised budget to maintain M-1 tank production at 720 units, as supported in the March budget amendment. This is 55 tanks more than requested in the September budget revision. Weapons and other combat vehicles.-The Committee recommends the full budget request and authorization of $655.4 million for the weapons and other combat vehicle activity. The DIVAD Jun allowance is for procurement of 50 units. PROCUREME\ r OF A-,LML-NTIIO\, ARMY 1981 appropriation .......................................................... :...................................... S1,558,700,000 1982 budget estimate .............................................................................................. 2.282.500,000 House allowance ..................................................................................................... Committee recommendation ................................................................................ 2,341.400,000 The Committee recommends an appropriation of $2,341,400,000, an increase of $58,900,000 above the President's budget. This appropriation provides for the procurement of all Army ammuni- tion except missiles. Funds are also included for industrial facilities re- quired for the production of ammunition components and end items, the modernization of Army ammunition facilities (including construc- tion), and the layaway of Government-owned plants and equipment where it has been established that such facilities will be required in the event of mobilization. The Committee recommendation is displayed in the following comparative table: Budget Committee estimate recommendation Ammunition .................................................................... $1,975,600 $1,990,600 Production base support: Provision of industrial facilities ............................. 241,800 251,300 Layaway of industrial facilities .............................. 29,900 29,900 Manufacturing technology program ..................... 27,900 27,900 Depot maintenance plant equipment ................... 10,300 10,300 Subtotal, production base support ................... 309,900--- 319.400 Inflation adjustment ....................................................... -3,000 31,400 Following is a listing of principal funding items under the ammuni- tion allowance: 7.62mm cartridge, all types .......................................... 174,748 $48,600 .50 caliber cartridge, all types ..................................... 49,533 77,100 25mm cartridge, HEIT-T ............................................... 1,020 54,100 105mm cartridge, TP-T F/tank gun ........................... 389 68,500 105mm cartridge, DS-TP .............................................. 357 82,200 155mm projectile, HE, ICM (DP) ................................. 233 116,800 155mm projectile, HE, ADAM ....................................... 15 75,600 155mm projectile, HE, RAAMS .................................... 21 58,400 8-inch projectile, HE, ICM (DP) ................................... 84 104,400 Viper antiarmor .............................................................. 59 77,400 November 14. 1981 6:26 PM 0R00010004C3 -61.b` Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 Louisiana Army Ammunition Plant.-The Committee recommends an increase of $15 million in the allowance for the 155mm projectile, HE, ICM (DP) to continue preproduction of the M-483 improved conven- tional munitions through the fiscal year 1982 funded delivery period. This munition will then transition to a new Mississippi facility the following year. It has come to the attention of the Committee that the Army is ex- periencing a shortage of metal parts for this round. In addition, the Committee recognizes the similarities between the automated metal parts line at the Louisiana Army Ammunition Plant (LAAP) and the self-contained fuly automated Mississippi Army Ammunition Plant (MAAP). Until the MAAP moves to a full production status, the Com- mittee considers it prudent to keep the LAAP M-483 projectile line in an active status. The recommended amount will permit continued pro- duction of metal parts on the LAAP M-483 line at a monthly rate of 5.000 rounds per month or 60,000 rounds per year. Available funds will be used to load the 60,000 rounds to be produced in fiscal year 1982. Mississippi Army Ammunition Plant.-The Committee recommends a $9.5 million increase in the provision of industrial facilities activity to complete the Mississippi production facility. This automated plant will produce 120,000 rounds per month of the M-483 munition when com- pleted in fiscal year 1983. Viper.-The Committee, while recognizing the urgent need for a new, light antiarmor weapon, questions the wisdom of entering a production contract without a full competitive analysis of alternative systems to in-. sure the selection of the most cost-effective system. Despite Army con- tentions, the Committee is not convinced that technical problems which have plagued Viper's prolonged development have been satisfactorily resolved. Its escalating costs clearly warrant the kind of competitive evaluation, including a shoot-off of available candidate systems. More- over, these problems have been seriously compounded by recurrent delays and slippage in the Viper IOC date even as the armor threat ex- pands. A premature production run on Viper could result in fielding an inadequate system. Accordingly, the Committee directs that no portion of the Viper funds appropriated for fiscal year 1982 be released for production, and that no funds be expended for research or production for any other light antiarmor systems, foreign or domestic, until the competitive anal- ysis has been completed and the results reported to the Appropriations Committees of the House and Senate, no later than June 30, 1981. In taking this action, the Committee recognizes (1) that funds to maintain existing Viper production capabilities on a standby basis will be required, and (2) that production of a limited number of Viper test rounds will be required to insure participation in the competitive analysis provided for. These requirements may be funded from fiscal years 1981 and 1982 appropriations. Once the competitive analysis, including the shoot-off, has been com- pleted, the Army may enter into a production contract on the basis of results indicating the most cost-effective light, antiarmor alternative. All parties desirous of participating in such competitive analysis shall be permitted to do so. November 14,1981 6:26 Pit Dproved For Release 2007/03/03: CIA-RDP89M0061 OR0001000466~i-b.b*' Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 OTHER PROCLREMENT, ARMY 1981 appropriation ................................................................................................... S2,822.408,000 1982 budget estimate ................................................................................................ 3,683,800,000 House -allowance ....................................................................................................... Committee recommendation .................................................................................. 3,732,071,000 The Committee recommends an appropriation of $3,732,071,000, an increase of $48,271,000 above the President's budget. This appropriation finances the acquisition of: (a) tactical and com- mercial vehicles including trucks, semitrailers, and trailers of all types to provide mobility and utility support to field forces and the worldwide logistical system; (b) communications and electronics equipment of all types to provide fixed, semifixed, and mobile strategic and tactical com- munications equipment; (c) other support equipment such as chemical defensive equipment, tactical bridging, shop sets, construction equip- ment, floating and rail requipment, generators and power units, material handling equipment, medical support equipment, special equipment for user testing, and nonsystem training devices. In each of these activities funds are also included for modification of in-service equipment, invest- ment spares and repair parts, and production base support. PROGRAM RECOMMENDED The Committee recommendation will provide funding for the follow- ingg program for fiscal year 1982: Budget estimate Committee recomendation Tactical and support vehicles .......................................... $1,029,300 $1,029,300 Communication and electronics equipment ................... 1,611,700 1,594,671 Other support equipment ................................................. 1,046,800 1,057,200 Inflation ............................................................................... -4,000 50,900 Total ......................................................................... 3,683,800 3,728,071 COMMITTEE RECOMMENDATIONS COI UMIJNICATIONS AND ELECTRONICS EQUIPMENT Radar set, artillery locating.-The Committee recommends $79 mil- lion for procurement of the ANITPQ-37 radar set. This is a reduction of $16,000,000 below the budget estimate. The Committee has been ad- vised that the requested procurement included assets for a classified program which is currenity being reevaluated. Funds for the AN/TPQ- 37 assets associated with this program are no longer required in fiscal year 1982. Intelligence data handling system.-The Committee recommends $4,271,000 for the intelligence data handling system. This is a reduction of $1,029,000. Rationale for this reduction is contained in the classified annex to this report. DEFENSE REPT.-08 November 14. 1981 6:26 P`4 Annr__nyec1 For Release 2007/03/03: CIA-RDP89M0061OR00010004 8bb' Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 OTHER SUPPORT EQUIPMENT Detector, chemical agent.-The Committee recommends $55 million for procurement of 18,000 M43A1 chemical agent detector kits. The recommendation is a reduction of $12 million below the budget es- timate. This item is a new procurement initiative in fiscal year 1982. Delays have been encountered in contracting for procurement of these kits due to provisions of the continuing resolution. Base level commercial equipment.-The Committee recommends $45,700,000 for base level commerical equipment. The recommendation is an increase of $22,400,000 above the budget estimate. The recommended adjustment will provide the Army with funds to procure investment end items with a unit cost of $3,000 and over from the proper investment appropriation rather than the operation and maintenance appropriation. The types of equipment involved include snow removal equipment, construction equipment, word processing equipment, industrial cleaning equipment, and postage meters. A corresponding reduction is reflected in the appropriation recom- mended in this report for operation and maintenance, Army. ARMY NATIONAL GUARD EQUIPMENT 1981 appropriation ..................................................................................................... 1982 budget estimate .................................................................................................. House allowance ......................................................................................................... Committee recommendation .................................................................................... $50,000,000 The Committee recommends an appropriation of $50 million in a separate account to provide military equipment to the Army National Guard. There was no specific budget estimate for this activity. The Committee's recommendation under this new account is detailed below: ARMY NATIONAL GUARD EQUIPMENT [in thousands of dollars] Quantity Amount 155mm howitzer, M-109 ............................................... 36 $20,700 Armored vehicle launch bridge ................................... 38 18,000 Mortar carrier, M-125A2 ............................................... 42 6,900 Command post vehicle .............. ................................... 27 4,400 AIRCRAFT PRoct mN7, NAVY 1981 appropriation ................................................................................................... $6,254,307,000 1982 budget estimate ................................................................................................ 9,244,500,000 House allowance ....................................................................................................... Committee recommendation .................................................................................. 9,442,400,000 The Committee recommends an appropriation of $9,442,400,000, an increase of $197,900,000 above the President's budget request. The fol- lowing table details the Committee recommendation: (In thousands of dollars] Budget committee estimate recommendation Jacket No. 00-000 DEFENSE REPT.-08 November 14, 1981 6:26 PM ~- S bb,, Annrnvarl Fnr RPIPast= 2007/03/03 - CIA-RDP89M00610R00010004 ~I Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 Combat aircraft: A-6E Intruder .......................................................... 269.000 269.900 Advance procurement ..................................... 7,300 7,300 EA-6B Prowler ........................................................ 229,500 229,500 Advance procurement ..................................... 16,800 16,800 AV-8B V/STOL ....................................................... 575,200 575,200 Advance procurement ..................................... 49,000 37,000 F-14A Tomcat ......................................................... 888,700 888,700 Advance procurement ..................................... 159,100 180,600 F-18 Hornet ............................................................ 1,890,100 1,890,100 Advance procurement ..................................... 236,400 236,400 CH-53E Super Stallion ..................................:....... 270,600 270,600 Advance procurement ..................................... 2.500 2,500 SH-60B Seahawk ................................................... 585,600 585,600 Advance procurement ..................................... 155,300 155,300 P-3C Orion .............................................................. 380,200 380,200 Advance procurement ..................................... 84,300 54,300 E-2C Hawkeye ........................................................ 266,300 266,300 Advance procurement ..................................... 20,500 20,500 SH-2F Seasprite ..................................................... 173,600 173,600 Advance procurement ..................................... 20,000 20,000 Other aircraft: UC-12B .................................................................... 200 200 C-2 multiyear procurement ................................... 37,000 37,000 T-34C ....................................................................... 53,200 53,200 TH-57 ....................................................................... 15,800 15,800 EC-130D (TACAMO) Hercules .............................. 74,900 74,900 Modification of aircraft ................................................. 977,300 977,300 Spares and repair parts ............................................... 1,529,400 1,607,900 Support equipment and facilities ................................. 331,800 331,800 Consultants, studies, and analyses ............................. -5,000 -5,000 Inflation adjustment ....................................................... -11,000 128,900 Advance procurement.-Adjustments in advance procurement for the AV-8B Harrier, the F-14A Tomcat and the P-3C Orion aircraft are in conformance with the authorization. They reflect cost adjustments and are not intended to constrain the respective programs. F/A-18 strike fighter.-Although the Committee has recommended the full $343.3 million request to procure 63 additional F/A-18 strike fighter aircraft, there is a continuing concern over the resolution of tech- nical and cost problems associated with its development and initial procurement. Criticism of the aircraft's weight, performance, and range, together with sharply rising costs, have generated widespread criticism of the program. However, the Navy and the Marine Corps have consis- tently backed the F/A-18 as a primary weapon of the carrier force. The fiscal year 1982 procurement, adding to the 60 aircraft initially procured in the previous year, should provide the necessary fighter capability for the Marine Corps as a replacement for the aging F-4 sys- tem. The Committee will expect the Navy to keep in close touch on any operational problems that develop and to keep the Committee up to date on the resolution of lingering technical and cost problems. Jacket No. 00-000 DEFENSE REPT.-08 Annrnvarl Fnr RPIPasP 2007/03/03 - CIA-RDP89MOO61OR00010004 O 2 Approved For Release 2007/03/03: CIA-RDP89M0061OR0001.00040021-9 WEAPONS PRocUREME,,-r, NAVY 1981 appropriation ................................................................................................ $2,766,029,000 1982 budget estimate ............................................................................................. 3,283,800,000 House allowance .................................................................................................... Committee recommendation ............................................................................... 3,330,100,000 The Committee recommends an appropriation of $3,330,100,000, an increase of $46,300,000 above the President's budget request. The Committee recommendations and budget estimates are sum- marized below by activity: Budget estimate Committee recommendation Ballistic missiles: UGM-73A (C-3) Poseidon ......................................... $18,700 $18,700 UGM-76A (C-4) Trident I .......................................... 665,105 665,105 Advance procurement ......................................... 244,795 244,795 Modification of missiles ............................................. 30,300 30,300 Strategic missiles: BGM-109 Tomahawk ................................................. 210,900 210,900 Advance procurement ......................................... 14,000 14,000 Tactical missiles: AIM/RIM-7 F/M Sparrow .......................................... 144,700 144,700 AIM-9L/M Sidewinder ................................................ 49,500 49,500 AIM-54A/C Phoenix ................................................... 140,800 140,800 Advance procurement .......................................... 26,200 26,200 AGM-84A Harpoon ..................................................... 232,700 232,700 Advance procurement ......................................... 18,000 18,000 AGM-88A HARM ........................................................ 107,600 107,600 RIM-66B standard MR ............................................... 164,800 164,800 RIM-66C standard MR ............................................... 61,600 61,600 RIM-67B standard ER ............................................... 215,000 215,000 Other missile support ................................................ 3,800 3,800 Laser Maverick ........................................................... 5,000 5,000 Aerial targets .............................................................. 67,900 67,900 Modification of missiles ............................................. 39,700 39,700 Support equipment and facilities .............................. 108,900 108,900 Torpedoes and related egvipment: Torpedo MK-48 .......................................................... 133,500 133,500 Torpedo MK-46 .......................................................... 65,000 65,000 MK-60 Captor ............................................................. 116,900 116,900 Related equipment ..................................................... 23,300 23,300 Modification of torpedoes and related equip- ment ......................................................................... 141,400 141,400 Support equipment ..................................................... 36,500 36,500 Other weapons: Guns and gun mounts ............................................... 139,200 139,200 Modifications of guns and gun mounts .................. 26,700 26,700 Support equipment ..................................................... 34,300 34,300 Inflation adjustment ........................................................... -3,000 43,300 Jacket No. 00-000 DEFENSE REPT.-09 November 14.1981 6:39 PM Anoroved For Release 2007/03/03: CIA- DDP89M0061OR0001000406n-1J.bx Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 SHIPBUILDING AND CONVERSION, NAVY 1981 appropriation ............................................................................................... S7,697,100,000 1982 budget estimate ........................................................................................... 8,475,300,000 Committee recommendation ............................................................................... 9,136,900,000 The Committee recommends an appropriation of $9,136,900,000, an increase of $688,600,000 above the President's budget. A comparative table of the Committee recommendations and the budget estimates follows: Budget estimate Committee recommendation Nuclear submarines: Trident (advance procurement) ................................ $330,700 $330,700 SSN-688 class ............................................................ 953,100 953,100 Advance procurement ......................................... 213,900 397,900 Surface combat ships: CVN aircraft carrier (nuclear) (advance procure- ment) ........................................................................ 658,000 658,000 New Jersey battleship reactivation ........................... 237,000 237,000 Iowa battleship reactivation ...................................... 88,000 .......................... Carrier SLEP (advance procurement) ...................... 100,800 100,800 CG-47 AEGIS Cruiser ................................................ 2,925,600 2,925,600 Advance procurement ......................................... 20,700 20,700 FFG-7 frigate .............................................................. 747,900 971,900 MCM mine countermeasures ship ............................ 99,700 99,700 Amphibious and auxiliary vessels: LSD-41 landing ship dock ............................................................. Advance procurement ......................................... 34,000 .......................... LHA/LHDX helicopter assault ship (advance pro- curement) ...................................................................................... Maritime pre positioning ship (T-AKX)(RO/RO conversion) ................................................................................... 139,000 200,000 T-AGOS SURTASS ship ............................................ 156,500 156,500 T-ALS auxiliary lighterage barge ............................. 54,000 .......................... ARS salvage ship ....................................................... 160,500 160,500 Fast logistics ship (T-AKRX)(SL-7 conversion)...... 668,400 184,000 T-AFS LYNESS (conversion) .................................... 37,000 37,000 Service craft ................................................................ 42,400 42,400 Landing craft .............................................................. 122,800 122,800 Outfitting ...................................................................... 73,000 73,000 Post delivery ............................................................... 122,300 122,300 Cost growth /escalation ..................................................... 448,000 448,000 Consultants, studies, and analyses ................................. -7,000 -7,000 Acquisition, construction, and improvements, Coast Guard ........................................................................................ 300,000 Inflation adjustment ........................................................... -12,000 117,000 RECOMMENDED CHANGES The Committee has recommended the following changes, most of them in conformance with the authorization: Jacket No. 00-000 DEFENSE REPT.-09 November 14, 1981 6:39 PM Annrnvarl Fnr RalaacP 2ff71C131D3 - t'lA-RDP89M00610R00010004 j%b.x Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 SSN-688-class nuclear attack submarine.-An increase of $183.2 mil- lion is recommended for the SSN-688-class nuclear attack submarine to provide long-lead items for construction of three of these vessels begin- ning in fiscal year 1983 and three beginning in fiscal year 1984. Battleship U.S.S. "Iowa" reactivation.-The Committee recommends deferring $88 million to begin reactivation of the battleship U.S.S. Iowa pending more reliable cost data and other supporting information. Re- activation of the U.S.S. New Jersey has just begun, and the Committee prefers to await cost and feasibility data from that project before con- sidering additional battleship reactivations. Landing ship dock (LSD-41).-The Committee recommends deletion of advance procurement funding and appropriation of $301 million to begin construction of this LSD vessel in fiscal year 1982, 1 year earlier than programed under the budget estimates. Helicopter assault ship.-Advance procurement of $45 million is recommended for the LHA/LHDX helicopter assault ship to permit starting construction of this vessel in 1983. There was no budget es- timate. Guided missile frigate.-The increase of $224 million for the FFG-7- class frigate would maintain the three-ship construction program in- cluded in the March budget estimates but reduced to two vessels in the September revision. This program will continue construction in two shipyards, assuring second source procurement and maintaining the in- dustrial base. Maritime pre-positioning ship (T-AKX).-The $197 million allowance for roll-on/roll-off conversion of maritime pre-positioning ships is the amount contained in the March budget but dropped in the September revision. The Committee believes this program should go forward be- cause the long-term costs are more economical than the leasing alterna- tive. The Committee recommends the appropriation of $139 million and the use of $58 million in unobligated funds from prior years. Fast logistics ship (T-AKRX).-The Committee recommends total funding of $228.4 million for the conversion of SL-7. vessels for use as fast logistics ships in support of the rapid depioyinent force. The al- lowance consists of $184 million in new appropriations and the use of $44.4 million in unobligated funds from prior years. This allowance will finance the conversion of two vessels instead of eight contemplated in the budget estimates. Acquisition, construction, and improvements; U.S. Coast Guard.-The Committee recommends an appropriation of $300 million to supple- ment the capital investment program of the U.S. Coast Guard. There was no budget estimate for this initiative. This funding is established with a provision for its immediate transfer to the U.S. Coast Guard, thus insuring Coast Guard participation in the expansion and modernization of military aircraft, vessels, and equip- ment. The U.S. Coast Guard should give full consideration to the guid- ance.provided to it by the Senate Commerce Committee and the Senate Appropriations Committee's Transportation Subcommittee in the use of these supplemental funds. Jacket No. 00-000 DEFENSE REPT.-09 November 14,1981 6:39 PM AnnrovPd For Release 2007/03/03: CIA-RDP89M0061OR000100040029-11@x Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 Appropriations directly available to the U.S. Coast Guard under the Transportation appropriations bill provided only limited funding in- creases and resulted in a reinvestment rate of under 5 percent. This ad- ditional funding will provide the Coast Guard a total of $837 million for its capital program, still less than initially requested by the Coast Guard in the fiscal year 1982 budget formulation process. The augmented total represents a reinvestment rate of less than 8 percent. The Committee considers the U.S. Coast Guard an integral part of the Armed Forces, falling as it does under the command structure of the Navy during wartime. The U.S. Coast Guard supports the Navy in coastal defense, antisubmarine warfare, convoy escort and icebreaking. Beginning in 1933, the U.S. Coast Guard and the U.S. Navy formally agreed that the U.S. Navy would provide communications equipment for U.S. Coast Guard use. This has expanded into support of a variety of modem electronics, avionics, weapons, and combat systems aboard Coast Guard cutters and aircraft today. The need for additional acquisition funding is self-evident, in the Committee's judgment. The average cost of U.S. Coast Guard cutters is 27 years, which is approaching what is normally considered the maxi- mum service life of 30 years. Many of the cutters in the fleet are 35 years old and older. Most cutters now assigned directly to drug interdic- tion efforts, for example, have an average age of 35 years. These cutters are frequently inoperative, and maintenance costs continue to soar. The General Accounting Office found in a recent survey that 70 percent of the Coast Guard cutters had problems relating to obsolete equipment, poor habitability, and excessive maintenance. The Committee recommendation is directed at helping correct these serious deficiencies. OTHER PRocL'REvEv-r, NAVY 1980 appropriation ................................................................................................. $3,037,657,000 1981 budget estimate ............................................................................................. 3,822,000,000 House allowance ..................................................................................................... Committee recommendation ................................................................................. 3,884,268,000 The Committee recommends an appropriation of $3,884,268,000, an increase of $62,268,000 above the President's budget request (as amended). This appropriation finances the procurement of major equipment and weapons other than ships, aircraft, missiles, torpedoes, and guns. Equipments range from the latest electronic sensors for updating of naval forces to trucks, training equipment, and spare parts. PROGRAM RECOMMENDED The Committee recommendation will provide funding for the follow- ing programs for fiscal year 1982: Jacket No. 00-000 DEFENSE REPT.-09 Annrnv d Fnr RAIAacA 2007/M/03 - ('IA-RDP89M00610R00010004d&n-b'bx Approved For Release 2007/03/03: CIA-RDP89MOO61OR0001.00040021-9 Budget estimate Committee recommendation Ship support equipment ................................................... $697,754 $697,754 Communications and electronics equipment ................. 1,190,266 1,190,266 Aviation support equipment ............................................. 585,136 590,036 Ordance support equipment ............................................ 855,172 855,172 Civil engineering support equipment .............................. 181,136 181,136 Supply support equipment ............................................... 74,971 74,971 Personnel/command support equipment ........................ 244,565 244,565 Consultants, studies, and analyses ................................. -3,000 - 3.000 Inflation ............................................................................... -4,000 52,000 Classified programs ................................................................................ 1,368 AVIATION SUPPORT EQUIPMENT AN/SSQ-47 sonobuoy.-The Committee recommends $8.137,000 for procurement of AN/SSQ-47 sonobuoys. This production line will be laid away following the fiscal year 1982 funded delivery period. An up- dated model, AN/SSQ-62, will be produced in future years. The recom- mended amount is an increase of $4,900,000 and will enable the Navy to complete its inventory requirement for this sonobuoy and complete the lay away procedure. Classified programs.-The Committee recommends an increase of $1,368,000 for classified programs contained in this appropriation. Ra- tionale for this increase is discussed in the classified annex to this report. PROCUREMENT, MARINE CORPS 1981 appropriation ........................................................................................... $506,013,000 1982 budget estimate .............................................................................................. 1,734,916,000 House allowance ...................................................................................................... Committee recommendation .................................................................................. 1,760,700,000 The Committee recommends an appropriation of $1,760,700,000, an increase of $25,784,000 above the President's budget estimate. This appropriation provides the Marine Corps with funds for the procurement, delivery, and modification of missiles, armament, ammuni- tion, communication equipment, tracked and wheeled vehicles, and vari- ous support equipment. The Committee recommendation will provide funding for the follow- ing programs for fiscal year 1982: Jacket No. 00-000 DEFENSE REPT.-09 November 14. 1981 6:39 PM Annrnverl For Release 2007/03/03: CIA-RD P89M0061 OR00010004d6~q-b bx Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 Budget estimate Committee recommendation Ammunition ........................................................................ $326,147 $326,147 Weapons and combat vehicles ........................................ 417,718 417,718 Guided missiles .................................................................. 216,917 216,917 Communications and electronics .................................... 369,438 369,438 Support vehicles ................................................................ 148,595 148,595 Engineering and other equipment ................................... 258,085 258,085 Inflation ............................................................................... -1,984 23,800 AIRCRAFT PROCLRI:MENT, AIR FORCE 1981 appropriation ............................................................................................... 510,427,428,000 1982 budget estimate ........................................................................................... 13,843,898.000 House allowance ................................................................................................... Committee recommendation ............................................................................... 14,061,298,000 The Committee recommends an appropriation of $14,061,298,000, an increase of $217,400,000 above the President's budget. The following comparative table displays the Committee's recommendations by major activity: Budget estimate Committee recommendation Strategic aircraft: Long-range combat aircraft (B-1B) .......................... $1,674,000 $1,724,200 Advance procurement ......................................... 227,000 233,800 Tactical aircraft: A-10 ............................................................................. 249,700 229,700 Advance procurement ......................................... 20,000 .......................... F-5F ............................................................................. 16,700 16,700 Advance procurement ......................................... 6,300 6,300 F-15 ............................................................................. 1,'D91,800 980,200 Advance procurement ......................................... 100,400 100,400 F-16A/B ...................................................................... Advance ro r t lti 1,331,600 1,270,800 p cu emen (mu year contract) ...... KC-1 OA ............................................................................................. 220,200 MC-130H .......................................................................................... 27,000 E-3A ............................................................................. 170,000 170,000 Advance procurement ......................................... 100,000 100,000 C-130H ............................................................................................. 109,500 Wide-bodied cargo airlift ................................................................ 50,000 Other aircraft: UH-60A ........................................................................ 33,000 33,000 TR-1A .......................................................................... 104,100 104,100 Advance procurement ......................................... 9,600 9,600 Modification of aircraft: Strategic aircraft ......................................................... 476,900 461,300 Tactical aircraft .......................................................... 596,700 596,700 Airlift aircraft ............................................................... 288,200 288,200 Trainer aircraft ............................................................ 8,000 8,000 Other aircraft .............................................................. 642,500 642,500 Other modifications .................................................... 49,400 49,400 Civil Reserve airlift fleet (CRAF) .............................. 47,700 47,700 Spares and repair parts ................................................... 4,002,500 3,889,800 Aircraft support equipment and facilities: Jacket No. 00-000 DEFENSE REPT.-09 November 14. 1981 6:39 PM4 AnnrnvPd For Release 2007/03/03 IA-RDP89M00610R00010004C_$OLbx Approved For Release 2007/03/03: CIA-RDP89M00610R000100040021-9 Common ground equipment ..................................... 404,200 404,200 Industrial facilities ...................................................... 93,400 93,400 War consumables ....................................................... 83,900 83,900 Other production charges ......................................... 1,128,298 1,092,498 NATO AWACS ............................................................ 358,200 344,300 Inflation adjustments .................................................. -17,000 192,800 Long-range combat aircraft (B-I B).-The recommended allowance for initial procurement of the B-1B bomber includes a $50.2 million in- crease over the budget estimate based' on a 3-percent annual cost growth, excluding inflation. This is the Committee's best estimate of yearly cost growth, based on averages from other recent combat aircraft procurement patterns. This is a moderate estimate and considers the fact that most of the development of the improved B-1 prototype has already occurred. The same 3-percent annual cost growth increase has been applied to the budget estimate for B-1B advance procurement, amounting to a $6.8 million increase. The Committee recognizes the sharp controversy that has surrounded the President's selection of the B-1B as the best long-range combat aircraft to succeed the aging B-52 fleet. However, the Committee be- lieves this modem weapon system is essential to span the balance of the 1980's and into the 1990's pending development and production of the advance technology bomber utilizing Stealth technology. The Comittee also is aware of the challenges to the U.S. Air Force cost estimates for this upgraded aircraft. Indeed, the Committee has recognized the inevitability of cost overruns and the likelihood that in- flation rates will be higher than projected under current budget policy. It is hoped, however, that the fixed-price contracts negotiated by the U.S. Air Force will bring stability to the production of this new system and that any additional modifications not included in current estimates will not be necessary. The Committee views the B-1B not only as an interim barber to fill the penetrating role but as a modem and capable launch platform for cruise missiles. Both of these roles are considered vital to the defense of the United States. A-10 attack aircraft.-The $20 million reduction recommended for procurement of 20 A-10 aircraft conforms to the authorization ceiling, which provided no advance procurement funding authority. F-15 air superiority fighter.-The recommended allowance for F-15 A/B/C/D aircraft provides for production of 36 instead of the 42 budgeted, a reduction of $111.6 million, in conformance with the authorization. F-16A/B.-The Committee recommends a reduction of $60.8 million to provide for procurement of 120 F-16A/B fighters, the same as the budget estimate but utilizing anticipated savings resulting from multi- year procurement. The full budget request for long-lead procurement front-end funding for multiyear contracting has been approved for the F-16. However, the Committee recommends $65.7 million in unobligated funds from prior DEFENSE REPT.-09 November 14.1981 6:39 PM 89M00610R00010004c 20P 1_bx Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 years be applied as an offsetting reduction. This is .the same amount rec- ommended for rescission by the President as part of a move to shift F-16 production to a 120-unit annual rate. KC-10A tanker aircraft.-The recommended funding for procure- ment of four KC-10A tanker aircraft restores this program to the March budget level in conformance with the authorization. Other increases.-The Committee also recommends increases of $27 million for advance procurement for MC-130H and $109.5 million for eight C-130H aircraft, pursuant to the authorization bill. Other reductions.-The $112.7 million reduction in spares and repair parts is in agreement with the authorization ceiling, as are reductions of $15.6 million in F-106 fighter modification, $13.9 million in North Atlantic Treaty Organization airborne warning and control system (AWACS) support and $35.8 million in production charges, $8.1 million of it for a classified program and $27.7 million for tactical improve- ments. KC-135 re-engining.-The Department of Defense requested $250 million to re-engine and modernize the KC-135A tanker. The program for re-engining the KC-135 with CFM-56 engines is a total tanker modernization effort providing substantial fuel savings, increased fuel offload and vastly improved environmental benefits. It is noted that in 1981, Congress directed the Air Force to accelerate this program with the addition of $60 million for tooling and long-lead materials. In re- sponse, the Air Force increased the fiscal year 1982 procurement re- quest to $250 million to implement this direction. The Committee fully. supports the KC-135/CFM-56 modernization program and recommends that it be fully funded at the $250 million level in fiscal year 1982. This funding will result in an efficient produc- tion schedule providing for increased savings due to inflation avoidance and fuel cost reductions with early KC-135R deliveries. The Air Force is encouraged to continue at an efficiently funded level. MissmE PRocuxetrsv-r, Am Foxe 1981 appropriation ............................................................................................... $3,346,786,000 1982 budget estimate ........................................................................................... 4,204,646,000 House allowance ................................................................................................... Committee recommendation ............................................................................... 4,198,146,000 The Committee recommends an appropriation of $4,198,146,000, a reduction of $6,500,000 below the President's budget request. Recommended allowances are tabulated by major activity in the fol- lowing comparative table: Budget estimate Committee recommendation Ballistic missiles: Minuteman I1/111 .......................................................... $34,326 $34,326 Minuteman upgrade and expansion .............................................. 5,000 ICBM C-3 integration ................................................. 54,436 54,436 Other missiles: Air launch cruise missile ........................................... 588,675 588,675 November 14, 1981 6:39 PM 1 0 R 000100040499-1.bx Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 Advance procurement ......................................... 1,184 1,184 Ground launch cruise missile ................................... 299,440 299,440 Advance procurement ......................................... 29,802 29,802 AIM-7 F/M Sparrow ................................................... 227,041 227,041 AIM-9 L/M Sidewinder .............................................. 132,467 132,467 AGM-65D Maverick .................................................... 232,240 232,240 AGM-88A HARM ........................................................ 89,100 89,100 Rapier .......................................................................... 110,086 110,086 Target drones ............................................................. 17,182 17,182 Modifications: Class IV ....................................................................... 60,916 34,016 Minuteman I1/I11 ............................................................................... 35,000 AIM-70 Sparrow ............................................. :........... 13,736 13,736 Spares and repair parts ................................................... 194,568 203,568 Other support: Spaceborne equipment (COMSEC) .......................... 19,461 19,461 NAVSTAR GPS ........................................................... 73,596 73,596 Space launch support ............................................... 33,575 33,575 Satellite data system .................................................. 20,649 20,649 Advance procurement ......................................... 21,271 21,271 Defense meteoroligical satellite program ................ 36,866 36,866 Defense support program ......................................... 230,254 230,254 Defense satellite communication system ................. 129,964 129,964 Space boosters ........................................................... 77,523 77,523 Advance procurement ......................................... 35,744 35,744 Space Shuttle ............................................................. 212,365 212,365 Industrial facilities ...................................................... 15,616 24,616 Special programs: Forest Green ............................................................... 2,070 2,070 IONDS .......................................................................... 16,435 16,435 Special programs ....................................................... 757,772 763,072 Special update programs .......................................... 441,286 333,786 Inflation adjustment .................................................... - 5,000 59,600 Minuteman III deployment.-The Committee recommends an un- budgeted $5 million, based on an unappropriated fiscal year 1981 au- thorization, for the first year deployment of 550 Minuteman III missiles to replace Minuteman II weapons. The Committee understands the Air Force needs to move forward with Minuteman III deployment because of a shortage of test assets for Minuteman II. Modification of inservice missiles.-The Committee recommends an appropriation of $82,752,000 for the modification of inservice missiles, in conformance to the authorization, including $35 million for the Minuteman extended survivable power and $2,400,000 for Titan II safety modifications. The allowance assumes the use of $22,500,000 in unobligated appropriations available from prior years. Spares and repair parts.-The $9 million increase in missile spares and repair parts is for Rapier systems spares, and conforms to the authorization. Special programs.-Recommended changes in special programs are treated in the Committee's classified annex to the report. NAVSTAR global positioning system.-The Committee has provided the full budget estimate for the NAVSTAR-GPS satellite system so as to prevent any further slippage in the currently planned initial opera- tional capability (IOC) date. The Committee directs the Secretary of Defense to consider the NAVSTAR-GPS system as a candidate for multiyear procurement and to consider utilizing the cost savings from Jacket No. 00-000 DEFENSE REPT.-09 November 14,1981 6:39 PM Annrn\lari Fnr RPIPasP 2007/03/03 : CIA-RDP89M00610R000100040@l~.bx Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 multiyear procurement for deployment of the original 24-satellite con- stellation rather than the currently planned 18-satellite constellation. The Committee further directs the Secretary of Defense to formulate a program to make NAVSTAR-GPS available, on a user-fee basis, to both nondefense governmental and civilian users in a secure manner that will provide for the recouping of as much of the development, ac- quisition and operating costs of the GPS system as is deemed feasible. Defense support program.-The Committee recommends $230,254,000 for the defense support program (DSP) under a multiyear increment- ally-funded concept. The DSP satellites contain sensors which provide near real-time data to the national command authorities and other designated users. The recommended appropriation will initiate a block procurement of four satellites with incremental funding through fiscal year 1986. The Committee has long adhered to the concept of full funding of defense procurement programs. However, allowing a block-buy of the four satellites on an incremental basis with funding for long-lead time items is estimated to save a minimum of $130 million. The savings will accrue from more efficient material and subcontract parts procurement and reductions in inspections, testing and program support. On this basis, the Committee recommends the use of multiyear, incremental- funded procedures for this program. Jacket No. 00-000 DEFENSE REPT.-09 November 14.1981 6:39 PM Annrn\lari Fnr RPIPasP 2007/03/03 : CIA-RDP89M00610R00010004?-$A.bx Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 OTHER PROCL'REmE\T, AIR FORCE 1981 appropriation ................................................................................................ 53,149,578,000 1982 budget estimate ............................................................................................. 5,174,144,000 House allowance .................................................................................................... Committee recommendation ............................................................................... 5,286,589,000 The Committee recommends an appropriation of $5,286,589,000 for "Other procurement, Air Force." The recommendation is an increase of $112,445,000 above the budget estimate. This appropriation provides for the procurement of weapons systems and equipment other than aircraft and missiles. Included are munitions, other weapons, vehicles, electronic and telecommunications systems for command and control of operational forces, and ground support equip- ment for weapons systems and supporting structure. PROGRAM RECOMMENDED The Committee recommendation will provide funding for the follow- ing program for fiscal year 1982: [In thousands of dollars] Budget Committee estimate recommendation Munitions and associated equipment...... $1,114,699 Vehicular equipment ................................. 337,002 Electronics and telecommunications equipment ............................................... 1,123,601 Other base maintenance and support equipment ............................................... 2,604,842 Reduction, offsets ...................................... -6,000 Selected activities ............................................................. Inflation .............................................................................. Total ................................................. 5,174,144 $1,104,699 -$10,000 337,002 ....................... 2,576,787 - 8,055 - 6,000 ....................... 59,000 + 59,000 71,500 +71,500 MUNITIONS AND ASSOCIATED EQUIPMENT 30mm API cartridge.-The Committee recommends $222,619,000 for procurement of the 30mm API cartridge. The recommendation is a reduction of $10,000,000 from the budget estimate. The Committee notes that a substantial increase in quantity of cartridges to be procured caused the existing contract to be renegotiated and the savings will result from the new contract. OTHER BASE MAINTENANCE AND SUPPORT EQUIPMENT Depot plant and materials handling equipment.-The Committee recommends $20,000 for the category items less than $900,000. This category provides a wide range of industrial plant equipment such as mills, lathes, grinders, saws, welders, and furnaces. The Committee notes that a substantial increase is requested in the budget estimate above the allowance for fiscal year 1981. The recommendation is a reduction of $3,025,000 below the budget estimate and will provide for an increase of $1,200,000 above the fiscal year 1981 allowance. Jacket No. 00-000 DEFENSE REPT.-10 November 14,1981 6:31 PM Annrnvprl Fnr RPIPaSP 2007/03/0:1 C;IA-RDP89M00610R00010004V9V1819bx Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 Base mechanization equipment.-The Committee recommends $8,300,000 for base mechanization equipment. Equipment procured in this. category includes roller conveyors, monorails, driverless tractors, bridge cranes, automatic stock picker equipment and associated process control systems. The Committee notes that the Air Force canceled or postponed re- quirements financed under this activity exceeding $6,000,000. It would appear that a reduction of $5,030,000 can be effected from the budget request. Selected activities.-The Committee recommends an increase of $59,000,000 for selected activities. A discussion of the rationale for this increase is included in the classified annex to this report. PRoct;RE-1EN r, DEFENSE AGENCIES 1981 appropriation ..................................................................................................... S321,464,000 1982 budget estimate .................................................................................................. 512,200,000 House allowance ......................................................................................................... Committee recommendation .................................................................................... 518,700,000 The Committee recommends an appropriation of $518,700,000, an in- crease of $6,500,000 above the budget estimate. The increase is to provide funds to accommodate the abnormal inflation costs above the rate projected in the budget estimate. This appropriation provides for procurement of capital equipment for the Defense Communications Agency, the Defense Investigative Service, the Defense Mapping Agency, the Defense Logistics Agency, and other agencies of the Department of Defense. The fiscal year 1982 program in- cludes procurement of automatic data processing equipment, mechani- cal materials handling systems, general and special-purpose vehicular equipment, communications equipment, and mapping, charting, and geodetic equipment. PROGRAMS AND Acrlvn'ms Defense Communications Agency.--Ar_ appropriat:o.a cf $14,697,000 is recommended for procurement of mission-essential equipment for the Defense Communications Agency. Defense Contract Audit Agency.-An appropriation of $301,000 is recommended for the procurement of equipment to support the mission requirements of the Defense Contract Audit Agency. The Agency provides contract audit and financial advisory services to DOD com- ponents with procurement and contract administration responsibilities. Defense Investigative Service.-An appropriation of $1,747,000 is recommended for the procurement of equipment to support the mission requirements of the Defense Investigative Service which conducts per- sonnel security investigations for the Department of Defense and, when authorized, law enforcement investigations of activities involving DOD components and DOD contractors. Defense Logistics Agency.-An appropriation of $17,592,000 is recom- mended for the procurement of equipment to support the activities and missions of the Defense Logistics Agency. Jacket No. 00-000 DEFENSE REPT.-10 Annrr warl Fnr RPIPasA 9007/03/03 - CIA-RDP89M0061 OR00010004ON 14.1981 6:31 PM Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 Defense Mapping Agency.-An appropriation of $8,272,000 is recom- mended for procurement of equipment for the support of Defense Mapping Agency activities. Defense Nuclear Agency.-An appropriation of $1,930,000 is recom- mended to procure equipment to support the mission requirements of the Defense Nuclear Agency. Office, Secretary of Defense.-An appropriation of $19,957,000 is recommended for the procurement of equipment for the support of Secretary of Defense activities. Funds are included for the Washington headquarters services, the Joint Chiefs of Staff, the Civilian Health and Medical Program of the Uniformed Services (CHAMPUS), and OSD field activities, including the American Forces Information Service, the Department of Defense dependents schools, the medical information sys- tems, the Defense Audiovisual Agency, and the U.S. Court of Military Appeals. Uniformed Services University of the Health Sciences.-An appropria- tion of $1.1 million is recommended for the cost of equipment for the operation of the School of Medicine in the Uniformed Services University of the Health Sciences. Special activities.-An appropriation of $447,058,000 is recommended for the procurement of equipment to support a number of special ac- tivities of the Department of Defense. DEFENSE REPT.-10 ver~,ber 14, 1981 6:31 PM For Release 2007/03/03: CIA-RDP89M0061OR000100040 US 1 h. Approved For Release 2007/03/03: CIA-RDP89M00610R000100040021-9 TITLE V RESEARCH, DEVELOPMENT, TEST, AND EVALUATION The fiscal year 1982 Department of Defense budget for research, development, test and evaluation totaled $20,274,388,000. The accom- panying Senate bill contains $20,870,389;000. This is a net increase of $596,001,000 from the revised fiscal year 1982 budget. The following table summarizes the budget estimates and Committee recom- mendations: Research, development, test and evaluation, Army .......... Research, development, test and evaluation, Navy .......... Research, development, test and evaluation, Air Force... Research, development, test and evaluation, Defense Agencies ............................................................................. Director, test and evaluation, Defense ............................... Budget Committee estimate recommendation $3,768,500 $3,764,409 5,840,488 6,118,579 8,823,400 9,088,906 1,789,000 1,845,495 53,000 53,000 COMMITTEE OVERVIEW The funding requirement for defensewide research, development, test, and evaluation is approximately one-third that of either the procure- ment or operations and maintenance accounts in the fiscal year 1982 defense program. Because research, development, test, and evaluation is proportionately smaller, there is a tendency to give research, develop- ment, test and evaluation less scrutiny when defense appropriations are made. The Committee notes at the outset that the research, develop- ment, test and evaluation account was scrutinized this year to ensure that only those new developmental programs truly deserving of transi- tion to engineering development and deployment receive funding sup- port. Because new program starts initiate in research, development, test, and evaluation, it serves as an important driver in future procurement and operations and maintenance cost requirements. The principal cri- teria used by the Committee in making its decisions on research, development, test, and evaluation program funding were whether the program clearly meets essential military requirements and cost-effective- ness considerations. U.S. defense needs are far too great for Congress to fund programs having marginal military utility, serious performance deficiencies or the net effect of constraining budgetary support for essential defense pro- grams. The Committee believes that hard choices had to be made con- cerning termination or restructuring of such programs, so that essential efforts receive full funding support. For these reasons, the Committee has chosen to terminate or restructure research and development pro- grams rather than "nickle and dime" necessary programs across the Jacket No. 00-000 DEFENSE REPORT-11 November 14.1981 6:56 PM AnnrnvAd For RPlPasP 2007/03/03 : CIA-RDP89M00610R00010004& 118 b~ Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 board. In doing so, the Committee has strengthened, rather than weakened, the U.S. defense research and development program. The Committee has acted to terminate the CX air transport program and the Army standoff target acquisition system (SOTAS). It has sought to save program management and support overhead costs through re- ductions in consultants and management support costs. It has moved to restructure programs, such as DARPA's Project SORAK, the Navy F/A-18 research and development effort and certain other programs, which it believes can be successfully accomplished at a more restrained pace. In making these choices, the Committee has supported other pro- grams beyond the budget request where they appeared to be seriously underfunded. The Committee supports the development of technologies that poten- tially make an order of magnitude difference in U.S. defense capa- bilities. Consequently, it strongly supports the technology base budget activities of each of the Services and the Defense Advanced Research Projects Agency (DARPA) programs. Technology base programs fund basic research and exploratory development, with the goal of increasing scientific and technical knowledge needed to maintain U.S. techno- logical superiority and lead to the development of cost-effective wea- pons systems. DARPA programs invest funding in high-risk tech- nologies that permit rapid exploitation for high military payoff. Because Soviet military research and development investment is exceeding that .of the United States by ever-increasing margins, the Committee believes that strong support for these programs is essential. The Committee notes that serious deficiencies exist in many Depart- ment of Defense university and in-house laboratories. These defi- ciencies, underscored by the 1981 Defense Science Board summer brief- ing report on the technology base, include critical personnel shortages, an aging population of scientists, and an immediate need to' produce more scientists in the future. These problems are of even greater significance considering the fact that technologies that could make an order of magnitude difference in the military balance in the future (veiy high-speed integrated circuits, Stealth, advanced software, etc.) need to be vigorously pursued. The Committee encourages efforts to improve Department of Defense university and laboratory quality through educational incentives and sustained investment. The Committee believes that the research, development, test and evaluation program recommended in the bill will significantly improve future U.S. defense capabilities and provide for much needed force modernization. RESEARCH, DEVELOPMENT, TEST, AND EVALUATION, ARMY 1981 appropriation .................................................................................................. 53,127,774,000 1982 amended request ............................................................................................ 3,768,500,000 House allowance ...................................................................................................... Committee recommendation .................................................................................. 3,764,409,000 The Committee recommends an appropriation of $3,764,409,000, a reduction of $4,091,000 in the budget request for fiscal year 1982. Jacket No. 00-000 DEFENSE REPORT-11 November 14,1981 6:56 PM ? Annrnvarl Fnr RPIPasP 2007/03/03 - C;IA-RDP89M0061OR000100041B01- Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 Budget estimate Committee recommendation Technology base ............................................................... $596,062 $619,377 Advanced technology development ................................. 218,120 213,556 Strategic programs ............................................................ 480,568 464,068 Tactical programs .............................................................. 1,660,700 1,624,816 Intelligence and communications .................................... 68,299 47,297 Defensewide mission support .......................................... 749,751 761,795 Inflation ............................................................................... -5,000 33,500 PROGRAMS AND AcrrvmEs The budget activities and programs funded under this appropriation are discussed below. These activities and programs require annual au- thorization prior to appropriations pursuant to the provisions of section 412(b) of Public Law 86-149, as amended. TECHNOLOGY BASE The recommended program includes $619,377,000 for the technology base activity. This activity finances basic research and exploratory devel- opment with the primary objective of increasing the store of fundamen- tal scientific knowledge adaptable to the solution of widely varying future Army requirements. A strong technology base is needed in order to (1) maintain technological superiority in military weapons, thus offset- ting adversary numerical advantages, (2) avoid technological- surprise that could cause premature obsolescence of major weapons systems, and (3) lead to acquisition of effective but less costly capabilities by using innovative products built on new technology. The Committee recommends the following major changes to the budget estimate in Army technology base programs, in accordance with the authorization: Budget estimate Committee recommendation Defense research sciences .............................................. $161,811 $166,000 Aircraft avionics technology ............................................. 6,107 5,977 Small caliber fire control technology .............................. 8,516 11,500 Jt. services food sys. tech ............................................... 5,736 5,569 Defense research sciences.-The Committee recommends an appropria- tion of $166,000,000 for defense research sciences. This is an increase of $4,189,000 over the revised request. The Committee notes that the March request was $172,311,000, and that even with this reduction, the fiscal year 1982 budget will still receive a major increase in investment needed to upgrade the Army's research capabilities. Chemical munitions.-The Committee recommends an appropriation of $20,528,000 for the Army chemical munitions program. Any reduc- tion would delay the timely development of the technology base for the binary intermediate volatility agent (IVA), chemical munitions concepts and new agent technology and delay engineering development of chemi- cal warheads for the corps support weapons system (CSWS) and mul- tiple launch rocket system (MLRS). Jacket No. 00-000 DEFENSE REPORT-11 November 14,1981 6:56 PM. 02-r11-81.bx Anoroved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 Approved For Release 2007/03/03: CIA-RDP89M00610R000100040021-9- Ballistic technology.-The Committee recommends an appropriation of $23,912,000 for the Army's ballistics technology program. The full budget request is required to initiate the first phase of the construction of the artillery command and experiment model and apply the model to the analyses of tactical artillery scenarios and also make a 60GHz mm wave sensor for use onboard an air defense smart bullet. Chemical/biological defense and general investigation.-The Commit- tee recommends an appropriation of $22,970,000 for the Army's chem- ical/biological defense and general investigation program. The full fund- ing request will complete exploratory development for a protective mask and initiate exploratory development on a combined nuclear, biological, and chemical detection alarm system to reduce logistics burdens. High-energy laser technology.-The Committee recommends an ap- propriation of $24,956,000 for high-energy laser technology. The entire budget request is recommended for approval because a higher rate of funding will permit an accelerated design effort for the Army close combat laser weapon (CCLAW/Roadrunner) and the forward laser wea- pon-demonstrator projects. Both of these projects involve development of fire control subsystems. Small caliber fire control technology.-The Committee recommends an appropriation of $5,500,000 for the Army's small caliber fire control technology program. The funding for this program will further advance testing of the advanced combat rifle program and special purpose am- munition. ADVANCED TECHNOLOGY DEVELOPME?.Tr The recommended program includes approximately $213,556,000 in fiscal year 1982 for advanced technology development. This activity provides for exploration of alternatives and concepts prior to develop- ment of specific weapons systems. New technological developments are pursued which are not formally identified to specific operational re- quirements. This effort includes feasibility demonstrations of innovative new concepts and emphasizes hardware competition and pursuit of alternate solutions to potential military problems. Particular emphasis is placed on demonstrating new concepts to provide improved land war- fare capabilities in the 1980's and 1990's, including land and helicopter vehicles and related propulsion and electronics technology, land warfare target detection, acquisition and weapon technology, chemical/biological defense, training and personnel technology, and medical developments related to combat personnel. The Committee recommends the following changes in the budget re- quest for advanced technology development in accordance with the authorization: Jacket No. 00-000 DEFENSE REPORT-11 November 14,1981 6:56 PM I A- R D P 89 M 00610 R 00010004RG211c Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 Budget estimate Committee recommendation Materials scale-up ............................................................. $5,426 $4,000 Synthetic flight simulators ................................................ 7,773 6,000 Advanced development of automatic test equipment.-The Committee was informed that the Commanding General of Development and Readiness Command (DARCOM) recommended to the Department of the Army that, after a review of the direct support automatic test sup- port system (DS-ATSS) solicitations on the request for quotation (RFQ), the program was not executable within available resources be- cause of cost, schedule, and technical risks. The need for DS-ATSS and the need to standardize the automated test equipment were not ques- tioned. The Army is revising a new RFQ for DS-ATSS which will restructure the program to allow for a concept demonstration with representative user systems, followed by engineering development and operational testing. The Army notified the Committee that this revision will leave $4,700,- 000 unobligated in fiscal year 1981. In the absence of any reprograming proposal, the Committee believes these funds should be used to cover any increased costs in the fiscal year 1982 program. STRATEGIC PROGRAMS The recommended program includes approximately $464,068,000 in fiscal year 1982 for the budget activity entitled "Strategic Programs." This activity provides for all research and development efforts on strategic offensive, defensive, and control systems. Primary emphasis is on ballistic missile defense. The Committee recommends the following changes to the budget es- timate, in accordance with the authorization: [In thousands of dollars] Budget Committee estimate recommendation BMD systems technology ................................................. $353,685 $336,685 Electric power modernization ............................................................... 500 Ballistic missile defense.-The Committee recommends an appropria- tion of $336,685,000 for the ballistic missile defense (BMD) systems technology program. The Committee has consistently supported this program in previous years, and it believes an ac^elerated development effort on the low-altitude defense (LoADS) program is essential if the United States is to maintain the option for deployment of a BMD sys- tem for the MX missile. The Committee also continues to support exploratory research in the area of strategic missile materials. The hardened ballistic missile defense materials program supports the necessary materials technology base by developing specialized materials and technologies and by continually as- sessing U.S. materials, capabilities, and limitations vis-a-vis Soviet capa- bilities. The Committee recognizes the potential of this research to Jacket No. 00-000 DEFENSE REPORT-11 November 14, 1981 6:56 PM I A- R D P 89 M 00610 R 0001 O004bd2"i 1 3-` Approved For Release 2007/03/03: CIA-RDP89M00610R000100040021-9 programs such as BMD and strategic systems. It believes that some $6 million in program funding could be dedicated to hardened BMD materials research. This materials research is to be coordinated with the Army's research in materials program. Electric power modernization.-The Committee recommends an ap- propriation of $500,000 for electric power modernization. This appro- priation would provide the fully authorized amount for the electric power modernization of Army critical facilities. The program will up- grade the electrical power systems to all critical Army command posts, sensor sites, and other high-priority locations. The recommended program includes approximately $1,624,816,000 for the budget activity entitled "Tactical Programs." This activity pro- vides for advanced, engineering, and operational systems development efforts on all aspects related to all conflict levels of tactical warfare, with emphasis on land warfare, and battlefield air mobility, and related combat support. This includes developments to improve the Army's capabilities in the combat missions of battlefield surveillance, close combat, aerial and surface fire support, field army air defense,. and mine warfare, plus improved capability in the related support missions of air and surface mobility, logistics-personnel support, communications, command and control, navigation, position locating, electronic warfare, physical security, and chemical/biological defense. The Committee recommends the following major changes to the budget estimate, in accordance with the authorization: Budget Committee estimate recommendation Joint services small arms program ................................. $3,529 $5,500 Airdrop equipment development ...................................... 3,126 2,926 Combat feeding, clothing, and equipment ..................... 3,536 2,536 Remotely piloted vehicles......... ....................... 36,394 73,348 Standoff target acquisition system .................................. 69,776 .......................... Battlefield data system ........................................................................... 5,000 Satcom ground environment ............................................ 36,438 41,638 Synthetic flight simulators.-The Committee recommends an ap- propriation of $6,000,000 for synthetic flight simulators. The House cut would severely delay the development of the future capabilities for the AH-64 synthetic flight simulator. These include advanced development and demonstration of a dual channel cathode ray visual display system capable of high resolution out to the maximum effective ranges of aerial weapons. Single channel ground airborne radio subsystem (SINCGARS).-The Committee recommends an appropriation of $15,225,000 for the pro- gram. The Committee reiterates the position expressed in the fiscal year 1981 supplemental report that it is prudent to continue development of two methods of providing antijam capability for Army communi- cations-both fast and slow frequency hopping. Funding of both methods through the operational test period for SINCGARS (June Jacket No. 00-000 DEFENSE REPORT-11 November 14,1981 6:56 PM 07/03/03: CIA-R DP89M00610R000100040&- b` - Approved For Release 2007/03/03: CIA-RDP89M00610R000100040021-9 1982) should continue. Nevertheless, the Committee is supportive of ef- forts to expedite the process for selecting which of the three radios un- der development should be recommended for procurement.. Remotely monitored battlefield sensor system (REMBASS) program (Unattended ground sensors).-The Committee recommends $6,948,000 for the unattended ground sensors program. The Committee believes that it is essential to reinstate this program. The fiscal year 1982 REMBASS program will continue research and development for hand- placed sensors and allow for development/operational tests (DT/OT) II in fiscal year 1982. Standoff target acquisition systems (SOTAS).-The Committee recom- mends termination of SOTAS. The Committee acknowledges that a valid Army requirement exists for the development of an airborne radar system to detect and locate targets at the forward edge of the bat- tlefield. However, the unsatisfactory preformance of SOTAS should not be rewarded. In the past year and a half the total acquisition cost of SOTAS has risen by over 250 percent to $2.4 billion, and the date of initial operating capability has slipped by several years. Battlefield data systems.-The Committee recommends an appropria- tion of $5 million to examine alternatives to SOTAS in the battlefield data systems program. Landmine warfare.-The Committee recommends an appropriation of $8,146,000 for landmine warfare. The funding is needed to initiate en- gineering development of the off-route antitank mine system as well as to conduct final engineering development for the modular pack mine system. Force level maneuver and control system.-The Committee recom- mends an appropriation of $14,869,000 for the force level maneuver and control system. The Committee recommends the full appropriation in order to maintain the simulation and gaming methods for analysis (SIGMA) project, which will provide battlefield commanders with an automated system for processing data in a battlefield environment.. This has been identified by the Army as an urgent requirement. ? Satellite communication (SAT COM) ground environment.-The Com- mittee recommends an appropriation of $41,638,000 for the develop- ment of tactical single- and multichannel terminals for the Army (SATCOM ground environment). The increase of $5,200,000 over the budget request will provide for the transition to more survivable sys- tems capable of operating in a nuclear environment. Remotely piloted vehicles (RPV).-The Committee recommends an ap- propriation of $73,348,000 for RPV. This recommendation restores the RPV program to its budgeted level prior to the September revision. The Committee notes that RPV's hold great promise for performing a variety of missions (target acquisition, reconnaissance, et cetera). Joint tactical communications program.-The Committee recommends an appropriation of $48,107,000 for the Army's joint tactical communica- tions.program. Joint services small arms program (JSSAP).-The Committee recom- mends an appropriation of $11,500,000 for the joint services small arms program. This funding will enable the Army to conduct much needed improvements to the M-16 rifle and new JSSAP efforts such as light- weight M-60 machinegun, 7.62 mm SLAP, and the combat shotgun. Jacket No. 00-000 DEFENSE REPORT-11 November 14,1981 6:56 PM Approved For Release 2007/03/03: CIA-RDP89M00610R000100040&rf161.bs._ Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 The Department of Defense annually spends billions of dollars, yet failed this year to make the relatively small investment needed to mod- ernize U.S. small arms. Joint services small arms program officers and the Foreign Science and Technology Center have amply documented the fact that the U.S.-Soviet small arms gap is widening due to a sus- tained Soviet small arms modernization program and a lagging U.S. program. This funding increase will only partially restore the JSSAP/small caliber fire control technology funding increases required to close the U.S.-Soviet small arms gap. The Committee supports these programs, and encourages efforts to further modernize U.S. small arms technology in future years. Synthetic flight training system.-The Committee recommends an ap- propriation of $8,333,000 for the synthetic flight training system pro- gram. Any reduction would defer initiation of engineering development of the AH-64 mission simulator. Aircraft weapons fire control.-The Committee recommends an ap- propriation of $10,312,000 for aircraft weapons fire control. Any reduc- tion would delay by 1 year the effort to develop adverse weather/night fire control systems for the AH-1S, AH-64A, and scout helicopters. The recommended program includes approximately $47,297,000 for the budget activity entitled "Intelligence and Communications." This ac- tivity provides for advanced, full scale engineering and operational sys- tems development efforts in intelligence, worldwide communications, and other defensewide mission support. The Committee recommends the following changes to the budget es- timate, in accordance with the recommendations of the authorization conference: Budget Committee estimate recommendation Navigation system using timing and ranging-global positioning system (NAVSTAR-GPS) user equip- ment ................................................................................ $21,002.......................... DEFENSEWIDE MISSION SUPPORT The recommended program includes approximately $761,795,000 for the budget activity entitled "Defensewide Mission Support." This ac- tivity provides for efforts directed toward support of installations or operations required for use in general research and development and not allocable to specific missions. Included are technical integration ef- forts, technical information activities, major test ranges, test facilities and general test instrumentation, target development, support of user test,. international cooperative research and development, and other research and development support. The Committee recommends the following changes to the budget es- timate, in accordance with the authorization: November 14,1981 6:56 PN1 r1g1.bx - - Approved For Release 2007/03/03: CIA-RDP89M00610R000100040021-9 Budget estimate Committee recommendation Programwide activities ...................................................... $67,815 $68,815 Development and readiness command ........................... 292,109 297,653 Programwide activities.-The Committee recommends an appropria- tion of $68,815,000 for programwide activities. This is an increase of $1 million over the revised budget estimate and conforms to authorization. The Committee's recommendation will provide for full funding of much needed Army research and development laboratory upgrades. Development and Readiness Command (DARCOM).-The Committee recommends an appropriation of $297,563,000 for the Army's DARCOM. This recommendation conforms to the congressional author- ization, and is $5,544,000 above the revised budget request. A denial of full funding -for DARCOM will severely impair the White Sands Missile Range radar program and the Aberdeen and Dugway base maintenance and repair programs. Rotary wing aircraft escape system.-The Committee recommends an appropriation of $1 million to evaluate and demonstrate the feasibility and cost effectiveness of adapting the rotor system research aircraft es- cape system for triservice combat applications. The statement of the managers accompanying the fiscal year 1981 Defense Appropriations Act directed the Army to evaluate and dem- onstrate within existing funds the feasibility and cost effectiveness of this system. However, the fiscal year has ended and the directed study efforts are still pending. The Committee notes the recent loss of lives in an advanced attack helicopter (AAH) prototype crash and Iranian SEA Cobra losses to Soviet-built air defense sytems in the Iraqi/Iranian conflict. The Committee believes the rotor system research aircraft escape system of- fers potential increased survivability for combat crewmen. The Army is encouraged to demonstrate and evaluate this existing technology on a timely basis. Jacket No. 00-000 DEFENSE REPORT-11 November 14, 1981 6:56 PM Annrnved For Release 2007/03/03: CIA-R DP89M00610R0001.00040ad2g.bX Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 RESEARCH, DEVELOPMENT, TEST, AND EVALUATION, NAVY 1981 appropriation .................................................................................................. 54.974,769,000 1982 amended request ............................................................................................ 5,840,488,000 House allowance ...................................................................................................... Committee recommendation .................................................................................. 6,118,579,000 The Committee recommends an appropriation of S6,118,579,000 for the Navy's research, development, test, and evaluation programs, an ad- dition of $223,091,000 to the budget request for fiscal year 1982. (In thousands of dollars] Budget estimate Committee recommendation $790,231 Advanced technology development ............................. 167,308 172,965 Strategic programs ........................................................ 540,611 544,111 Tactical programs .......................................................... 3,743,073 3,752,894 Intelligence and communications ................................ 195,317 178,114 Defensewide mission support ...................................... 662,357 662 664 Classified program ............................................................................... , 6,400 Consultants ..................................................................... -43,300 -43,300 Inflation adjustment ....................................................... - 7,000 54,500 Undistributed reduction ................................................ PROGRAMS AND ACTIVITIES The budget activities and, programs funded under this appropriation . are discussed below. The sums referred to are intended to reflect the magnitude of the various programs and activities and are not to be con- sidered as specific recommendations. These activities and programs re- quire annual authorization prior to appropriations pursuant to the provi- sions of section 412(b) of Public Law 86-149, as amended. TECHNOLOGY BASE The recommended program includes $790,231,000 for the budget ac- tivity entitled "Technology Base." This activity finances basic research and exploratory development with the primary objective of increasing the store of fundamental scientific knowledge adaptable to the solution of widely varying future Navy requirements. A strong technology base is needed in order to (1) maintain technological superiority in military weapons, thus offsetting adversary numerical advantages, (2) avoid tech- nological surprise that could cause premature obsolescence of major weapons systems, and (3) lead to acquisition of effective but less costly capabilities by using innovative products built on new technology. The Committee recommends the following major changes to the budget estimate, in accordance with the authorization: Jacket No. 00-000 DEFENSE REPORT-12 November 14, 1981 7:05 PM Annroved For Release 2007/03/03: CIA-RDP89M0061OR000.1000400I9 --9~.bx Approved For Release 2007/03/03: CIA-RDP89M00610R000100040021-9 Budget estimate Committee recommendation Human factors/simulation technology ........................ $7,973 $6,973 Materials technology ..................................................... 32,428 34,428 Directed energy technology ......................................... 6,993 8,000 Materials technology.-The Committee recommends the addition of $2,000,000 in accordance with the authorization act. These funds will provide for development of metal matrix composite materials as sub- stitutes for critical strategic materials now'in short supply. Directed energy technology.-The Committee recommends an ap- propriation of $8,000,000 for directed energy technology. This recom- mendation conforms to authorization and is $1,007,000 above the re- vised budget request. Any reduction will severely impair laser weapon, charged particle beam and pulsed power technology efforts of the Navy. The recommended program includes $172,965,000 for the budget ac- tivity entitled "Advanced Technology Development." This activity provides for exploration of alternatives and concepts prior to develop- ment of specific weapons systems. New technological developments are pursued which are not formally identified to specific operational re- quirements. This effort includes feasibility demonstrations of innovative new concepts and emphasizes hardware competition and pursuit of alter- nate solutions to potential military problems. Particular emphasis is placed on demonstrating new concepts to provide improved naval war- fare capability in the 1980's and 1990's, including naval air, surface and subsurface vehicle and related propulsion and electronics technology, undersea and ocean surveillance, naval warfare target detection, acquisition and weapon technology and training and personnel technology. The Committee recommends the following cha:>.ges to the budget es- timate in accordance with the authorization: (In thousands of dollars] Budget Committee estimate recommendation Human factors engineering development ................... $4,150 $3,650 Advanced marine biological system ............................ 4,089 3,789 MC diesel rotary engine ...................................................................... 9,700 United States Marine Corps high horsepower engine.-The Committee recommends an appropriation of $9,700,000 for the development of the rotary engine for the United States Marine Corps rotary engine for the landing vehicle tracked (experimental) and MPWS systems. The Navy states that the entire amount can be spent efficiently. Training device technology.-The Committee recommends an ap- propriation of $8,252,000 for training device technology. This recom- mendation conforms to the authorization request. DEFENSE REPORT-12 November 14. 1981 7:05 PM IA-RDP89M0061OR000100040U2112.91 hx Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 Medical development.-The Committee recommends an appropriation of $11,644,000 for medical development. This conforms to the budget request and authorization. Human factors engineering development.-The Committee recom- mends an appropriation of $3,650,000 for human factors engineering development. This is $500,000 below the budget request. Advanced marine biological systems.-The Committee recommends an appropriation of $3,789,000 for advanced marine biological systems. This is $300,000 below the budget request. The recommended program includes approximately $544,111,000 in fiscal year 1982 for the budget activity entitled "Strategic Programs." This activity provides for all research and development efforts on stra- tegic offensive, defensive, and control systems. Primary emphasis is on development to assure continued viability of sea-based nuclear second strike capability. The Committee recommends the following change to the budget es- timate, in accordance with the authorization: In thousands of dollar;] Budget Committee estimate recommendation Gryphon .......................................................................... $22,260 $25,760 Trident II. submarine launched ballistic missile (SLBM).-The Com- mittee recommends an appropriation of $239,542,000 for the Trident II SLBM. The Trident II (D-5) is being developed to obtain a large throw-weight SLBM with greater range, accuracy, and payload charac- teristics than the Trident I. The Committee believes that deployment of the Trident II SLBM on Ohio-class Trident SSBN's will significantly advance and improve United. States sts3teg;c counterforce capabilities. Moreover, it is also an important hedge against uncertainties in the development of new U.S. land-based and air-based strategic systems. Extremely low frequency (ELF).-The Committee has received the Defense Department report on the ELF communications project. ELF is a shore-to-submarine communications for command and control of submarines which permits signal 'reception at deeply submerged opera- tional depths. Testimony before this Committee clearly defined the con- tinued operational requirement for an ELF system for the enhancement of ballistic missile submarine, nuclear (SSBN) survivability against the improved Soviet antisubmarine warfare threat. The Committee recom- mends an appropriation of $34,830,000 for the development of the ELF communications system. Gryphon.-The Committee recommends an appropriation of $25,760,- 000 for the Navy's Gryphon program. This is an increase of $3,500,000 above the budget request, and conforms to authorization. This funding increase provides for on-going research in survivable, enduring com- munications. The funding will initiate work ca meteor burst communi- Jacket No. 00-000 DEFENSE REPORT-12 November 14. 1981 7:05 PM IA-R D P89M0061 OR00010004@0211 -4bx Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 cation to determine the ability to provide ground-air, air-ground and air-air connectivity. These technologies will help redress critical vulnera- bilities of current EHF and VHF systems. The recommended program includes approximately $3,752,894,000 in fiscal year 1982 for the budget activity entitled "Tactical Programs." This activity provides for advanced, engineering, and operational sys- tems development efforts on all aspects related to all conflict levels of tactical warfare, with emphasis on sea control, Navy and Marine Corps air operations, Marine Corps amphibious operations, and related com- bat support. This includes developments to improve the Department of the Navy's capabilities in the combat missions of ocean surface surveil- lance and targeting, undersea surveillance, antisurface (including inter- diction and air defense suppression), antiair (including air superiority), antisubmarine, amphibious and special warfare, and naval mine warfare, plus improved capability in the related support missions of air and sur- face mobility, logistics/resupply/transfer, personnel support, early warn- ing, communications, command and control, tactical intelligence and reconnaissance, navigation, identification, position locating, traffic con- trol, electronic warfare, physical security and developments related to major multimission naval vehicles. The Committee recommends the following changes to the budget es- timate in accordance with the authorization: [in thousands of dollars) Budget Committee estimate recommendation Undergraduate jet flight training system .................... $12,409 $5,000 Tactical C3 countermeasures ....................................... 6,791 6,291 ABN antisub warfare system ........................................ 2,895. 5,895 V/STOL aircraft development ...................................... 14,960............................ AV/8B + ................................................................................................ 5,000 Tilt fan V/STOL technology ................................................................ 10,000 Weaponizing (prototype) ...................................................................... 1,000 Antiship torpedo defense .................................................................... 500 New class carrier design ...............................................................:..... 10,000 Ship systems engineering standards .......................... 1,999 10,000 Diesel electric submarine .............................................. ............ ........... 2,500 Ship development (advanced) ...................................... 20,642 11,000 LH D X ...................................................................................................... 15,000 Avionics development/VAST ........................................ 15,044 13,000 Navy air combat fighter ................................................ 224,812 190,000 Area air defense ............................................................ 34,446 4046 Surface launched weaponry ........................................ 57,386 60,386 Ship development (engine) .......................................... 91,897 68,000 Chemical warfare weapons .......................................... 3,731 7,500 Fire control system electro optics ............................... 7,203 24,000 Medical developments ................................................... 2,146 2,046 F-14A squadrons ........................................................... 11,976 17,000 Joint tactical comm prog., USMC ............................... 17,362 16,362 Security/investigative actys ........................................................... 737............................ Surface effect ship ............................................................................... 5,000 Gas turbine fuel efficiency ................................................................... 7 000 November 14, 1981 7:05 PM AnnrnvPd Fnr RPlPasP 2007/03/03 - CIA-RDP89M0061 QR00010D0402 -.bx . _ _ Jacket No. 00-000 DEFENSE REPORT-12 Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 Essex class carrier eval ...................................................................... 8,800 Major surface combatant (DDG-X).-The Committee recommends an appropriation of $101,000,000 for research and development for a new major surface combatant, the DDG-X destroyer. This funding will sup- port the development of ship design, combat systems, a lightweight sonar, SPY-1 derivative radar and DDG-X combat systems integration. The DDG-X will have the following weapons systems: Vertical launch cells capable of launching Tomahawk, antiaircraft war- fare (AAW) and antisubmarine warfare (ASW) missiles; Canister launched Harpoon antiship missiles; Seafire/5-inch SAL guided projectile; The Committee believes that the Navy Department's report to the Committee satisfies the Committee's concern, expressed in the fiscal year 1981 supplemental conference report, that there be precise defini- tion of DDG-X engineering goals and performance specifications. The Committee is convinced that the present DDG-X plan, incorporating distributed combat systems data processing architecture, the above men- tioned combat systems and the Seafire laser illumination/5-inch semi-ac- tive laser guided projectile systems, will make the DDG-X an offen- sively capable ship. The trade-offs involved between obtaining increased offensive capa- bility and affordability are not easy ones to make, but the Committee believes that the current combat weapons system plan for the DDG-X will give the Navy a capable surface combatant. The DDG-X will be able to operate offensively as units of carrier battle groups and surface action groups against multiple threats-air, surface, and submarine. The Committee strongly supports the DDG-X program. Fire control system electro optics (Seafire).-The Committee recom- mends an appropriation of $24,000,000 for fire control systems electro optics. This appropriation will accommodate inclusion of the Seafire electro-optical fire control subsystem into the Navy's fiscal year 1982 fire control systems electro-optics program, along with the infrared search and track (IRST) system. This appropriation is within fiscal year 1982 authorization limits. Seafire has been identified to the Committee by Secretary of the Navy Lehman as an important subsystem component in the Navy's revised DDG-X design plans, assuming its performance meets criteria specified in the OPTEVFOR test and evaluation plan. Seafire will give U.S. surface ships a passive fire control capability to conduct gunfire during periods of emission control (EMCON) or heavy jamming. The 5-inch semiactive laser guided projectile is to be used as the munition for this antisurface/strike warfare combination. The Committee has strongly supported Seafire in the past, and con- tinues to believe that Seafire electro-optical fire control system technol- ogy can help address critical surface ship fire control deficiencies iden- tified by the Navy. The Committee notes that the Soviet Union has deployed electro-optical fire control systems on five classes of surface ships. Medium-range air-to-surface missile (MRASM).-The Committee agrees to the restructuring of MRASM program necessitated by the ad- Jacket No. 00-000 DEFENSE REPORT-12 Approved For Release 2007/03/03: CIA-RDP89M00610R00010004 1',1981 7:05 PM Approved For Release 2007/03/03: CIA-RDP89M00610R000100040021-9 ministrations fiscal year 1982 budget revisions. The Committee deletes $19,100,000 from the Navy MRASM request which will reduce the in- frared (IR) Maverick effort and force a 1-year slip in the program. Ship system engineering standard (SEAMOD).-The Committee recommends an appropriation of $10,000,000 for the Navy SSES program, also known as SEAMOD. The SSES program objective to develop engineering standards to permit modularity in the design of ship hull and payloads. The Committee concurs with findings of the authorization conference that this program is underfunded. The purpose of the SSES program is to: Develop and generate ship systems engineering standards for the ac- quisition of variable payload ships; Design a first application ship in the area of interface standards; and Emplace within the shipbuilding community the necessary construc- tion technology and information concerning the SSES program to per- mit procurement of the variable payload ship in a cost-effective and timely manner. V/HXM U.S. Marine Corps helicopter.-The Committee recommends an appropriation of $5,229,000 for the U.S. Marine Corps HXM helicop- ter. The Committee notes that the U.S. Marine Corps has documented a requirement for a medium-lift helicopter with an initial operating capability in the early 1990's. Postponement of this badly needed pro- gram will only serve to further erode U.S. Marine Corps ship-to-shore amphibious assault capabilities. A firm decision on hardware is due in the 1983 timeframe. Attack submarine development.-The Navy requested $9,947,000 for. attack submarine development. The Committee concurs with the conclu- sion of the authorization conference that no justifiable need exists to ex- amine follow-on or future attack submarine designs. The Committee recommends an appropriation of $4,968,000 to be used for project 51256-AS, submarine cost reduction. Light airborne multipurpose system (LAMPS) MK III helicopter.- The Committee recommends an appropriation of $73,800,000 for the LAMPS MK III weapons system. The Committee fully supports the ex- tended range capabilities that LAMPS will provide for the antisub- marine warfare (ASW) mission, and its antiship surveillance and target- ing (ASST) utility. However, the Committee is strongly critical of the Navy's inability to control cost growth in the LAMPS MK III program. Most of this cost growth has been identified in the procurement, rather than research and development, aspect of the acquisition process. The December 1980 selected acquisition report (SAR) estimated total LAMPS MK III sys- tem acquisition costs to be $6,700,000,000, for a difference of $1,478,- 000,000 over the estimate in the December 1979 SAR. Moreover, the Navy has identified potential additional cost risks as being in the engine, the airframe, avionics and ship electronics. While recommending in full the fiscal year 1982 LAMPS research and development request, the Committee urges the Navy to pursue the potential cost reduction/avoidance items outlined in the March 1981 LAMPS Mark III cost assessment team congressional report. Jacket No. 00-000 DEFENSE REPORT-12 November 14, 1981 7:05 PM IA-RDP89M0061 OR000100040b 21- .bx Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 Advanced lightweight torpedo (ALW7).-The Committee recommends an appropriation of $106,014,000 for the ALWT. The Committee be- lieves that the revised development schedules for the advanced light- weight torpedo is reasonable, and that a valid operational requirement for ALWT clearly exists. The Committee is not convinced that foreign-source alternatives to ALWT are capable of critical evaluation at the present time. However, the Committee is supportive of Navy Department efforts to exchange lightweight torpedo information with British officials. The Committee notes that General Accounting Office proposals with respect to United Kingdom/United States lightweight torpedo information exchange are being implemented by the Department of Defense. F/A-18 aircraft.-The Navy requested $224,583,000 in fiscal year 1982 for continued research and development of the F/A-18 aircraft. This funding will be used to flight test the F/A-18, complete its opera- tional evaluation and complete roll rate modifications and the weight reduction program. The Committee understood, from written answers to Committee ques- tions from the Department of the Navy, that the F/A-18 research and development program for fiscal year 1982 was deficient by $51.5 mil- lion. This deficiency was identified in early spring, but was not added to the revised fiscal year 1982 budget until the third budget revision in autumn. The Committee expresses its concern over the magnitude of the research and development funding requirements for the F/A-18 pro- gram, and acknowledges that all technical problems associated with F/A-18 development must be resolved before commitment to higher, more economical rates or production. The Committee recommends $190,000,000 for F/A-18 research and development. Avionics development.-The Committee recommends an appropriation of $13,000,000 for avionics development. This recommendation is predi- cated upon the Office of the Secretary of Defense meeting the criteria for qualification for the AYK-14 computer agreed upon by the au- thorization conference. Area air defense (battle group antiair warfare coordination).-The Committee recommends an appropriation of $45,046,000 for area air defense. This recommendation is $10,600,000 above the budget request. The additional funding will be used to improve correlation of targets between ships and battle management by permitting electronic response between AEGIS and non-AEGIS ships. Gas turbine fuel efficiency.-The Committee recommends an ap- propriation of $7,000,000 for gas turbine fuel efficiency. This recommen- dation permits initiation of a program to improve the fuel efficiency of naval gas turbine propulsion systems. The funding will start.a program to build and test two Navy LM 2500 engines. Preliminary indications are that substantial savings can result from such an improvement. Surface-launched weapons systems technology.-The Committee recom- mends an appropriation of $60,386,000 for surface-launched weapons systems technology. This is an increase of $3,000,000 over the budget re- quest. The additional funding will be used toward acceleration of the new threat upgrade program. Jacket No. 00-000 . DEFENSE REPORT-12 November 14,1981 7:05 PM IA-RDP89M0061 OR00010004 ~-Jbc Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 New class aircraft carrier design.-The Committee recommends an ap- propriation of $10,000,000 for new class aircraft carrier design. This recommendation provides the fully authorized amount for examination of designs for new, light-class aircraft carriers of approximately 40,000 tons displacement. Essex class carrier evaluation.-The Committee recommends an ap- propriation of $8,800,000 for the Essex class carrier evaluation. This funding is to be used for making the necessary surveys, studies and en- gineering assessments required for the preparation of a class C estimate on the cost of reactivating Essex class (CV-27C) aircraft carriers. Ship development (advanced).-The Committee recommends an ap- propriation of $11,000,000 for ship development (advanced). This is '9,642,000 less than the budget request. Air-capable amphibious ship LHDX.-The Committee recommends an appropriation of $15,000,000 for the LHDX. The LHDX is projected to be an air-capable amphibious ship having helicopter, vertical short take-off and landing, and landing craft capabilities. Ship development (engineering).-The Committee recommends an ap- propriation of $68,000,000 for ship development (engineering). This is a decrease of $23,781,000 from the revised budget request and $2,000,000 less than the authorization level. The Committee recommends the dele- tion of $2,000,000 for research and development related to the reactiva- tion of the Iowa battleship. Surface. effects ships.-The Committee recommends an appropriation of $5,000,000 for surface effects ships. This appropriation is intended only to initiate design of a 1,500-ton or larger prototype logistics sup- port surface effects ship, in conformance to the authorization. However, the Committee will extend sympathetic consideration to a Navy re- programing proposal to continue sea trials for a 160-foot SES if this test- ing is deemed essential to the evolution of a larger SES. INTELLIGENCE AND COMMUNICATIONS The recommer...ded program in.lud-s $1.78,114,000 for the budget ac- tivity entitled "Intelligence and Communications." This activity provides for advanced, full scale engineering development and operational sys- tem development efforts in intelligence, worldwide communications sys- tems, and other defensewide mission support, including meteorological activities. The Committee recommends the following changes to the budget es- timate, in accordance with the authorization: [In thousands of dollars] Budget Committee estimate recommendation Navigation satellite ........................................................ $16,841 ............................ NAVSTAR GPS user equipment .................................. 34,362............................ NAVSTAR .............................................................................................. $34,000 DEFENSE REPORT-12 November 14,1981 7:05 PM OR00010004 -- b% Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 DEFE\SEWIDE MISSION SUPPORT. The recommended program includes $662,664,000 for the budget ac- tivity entitled "Defensewide Mission Support." This activity provides for efforts directed toward support of installations or operations re- quired for use in general research and development and not allocable to specific missions. Included are technical integration efforts, technical in- formation activities, major test ranges, test facilities and general test in- strumentation, target development, international cooperative R. & D., and other R. & D. support. The Committee recommends the following changes to the budget es- timate, in accordance with the authorization: [in thousands of dollars] Budget Committee estimate recommendation Studies and analyses, USMC ....................................... $4,049 $3,500 R.D.T. & E. instrumentation/mat spt ........................... 41,579 45,579 Civilian training/education development .................... 1,290 1,000 Consultants ..................................................................... (-43,300) (-43,300) INTELLIGENCE ACTIVITIES The Committee recommends an addition of $6,400,000 for in- telligence activities of the Navy. This program is discussed in the clas- sified annex to this report. ITEMS OF SPECIAL INTEREST, NAVY On-board oxygen generating system (OBOGS).-The Committee ap- proved funding in fiscal year 1981 to demonstrate an OBOGS in high performance Air Force aircraft in various flight conditions, as well as under conditions of chemical agent contamination. For several years the U.S. Navy has pursued the development of an OBOGS for application aboard tactical iiavai aircraft and the system is presently being flight tested aboard the AV-8A Harrier aircraft. The implementation of such a system on fleet aircraft is believed to offer significant advantages in the areas of operational readiness, safety and logistics/support costs. It is requested that the Committee be furnished the current status of this program to include plans for fleet aircraft implementation and funding requirements. Gas turbine fuel efficiency improvements.-The Committee recom- mends $7,000,000 to initiate a program to improve the fuel efficiency of naval gas turbine propulsion systems. The recommendation is an in- crease of $7,000,000 to the budget estimate and to the House bill. It is the view of the Committee that fuel efficiency of major military propulsion systems must be improved. The recommendation will initiate a program to build and test two Navy LM 2500 engines. Preliminary in- dications are that savings from efficiency improvements within the gas turbine itself will be at least 8 to 9 percent. Since current plans envision that the LM 2500 engines will power over 60 percent of the Navy com- batant fleet by 1990, the potential for significant savings must be con- sidered. Jacket No. 00-000 DEFENSE REPORT-12 November 14,1981 7:05 PM nnrnved For Release 2007/03/03: CIA-RDP89M00610R00010004T'Ogl x. Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 Manufacturing technology (MANTECH).-The Defense Science Board (DSB) report on industrial responsiveness published in January 1981 recommended: increases emphasis on manufacturing technology program. Fund at 1 percent of the procurement budget. While the Navy has not met this goal, the Committee notes favorably the sig- nificant increase in Navy MANTECH. Although the requested $3.9 mil- lion in Navy research and development appears small, the $24.5 million in operations Navy (OPN) shows a trend toward meeting the DSB recommendation. The Committee encourages the use of MANTECH to support in- creased production of metal matrix materials and continue the develop- ment of improved methods for carbon/carbon strategic and tactical mis- sile components. Submarine rocket (SUBROC) extension program.-SUBROC provides a nuclear standoff capability for U.S. attack submarines and is scheduled to be replaced by the new antisubmarine warfare (ASW) stan- doff weapon by the late 1980's. However, the Committee is concerned that recent Navy acquisition strategy changes for the new standoff wea- pon may considerably delay this vital program. Enhanced readiness may be sustained by Navy's identification of alternatives directed at the planned service life extension program for SUBROC. The SUBROC standoff weapon maintains high fleet reliability and would be a respon- sible hedge against future program delays for the new ASW standoff weapon or any gap that may be experienced as a result of a new, high risk development effort. The Committee believes the Navy should sub- mit at the earliest possible date a full report on the extended refurbish- ment plans for SUBROC, including SUBROC's impact on addressing the interim requirement. ASW stand-off weapon.-The ASW stand-off weapon system is cur- rently being developed to replace the presently deployed SUBROC weapon. This program has as its objective an ASW weapon which will be effective against present and future threats at ranges compatible with submarine sensor systems. The Navy's acquisition strategy defined an approach that implied exploration of alternative design concepts includ- ing a live firing "fly off' during the development and validation phase. Without congressional consultation for this $1 billion program, the Navy altered its acquisition strategy by awarding a sole-source contract. The Committee is concerned this change in program direction is con- trary to the value of competition for a program of this importance. The Committee feels this program as currently structured may warrant qualification of second-source production. Procurement rates, inventory objectives, and program cost consideration. are underlying factors which impact on the consideration of second sourcing. The Committee expects the Navy to provide a full report on the desirability of formulating a second-source strategy at the earliest possible date. Landing craft, air cushion (LCAC).-The Committee notes, with inter- est, the consideration for multimission development of the landing craft, air cushion (LCAC) program. It is hoped that the Navy will give thorough consideration to multimission possibilities and will find fund- ing to pursue these concepts. Jacket No. 00-000 DEFENSE REPORT-12 W b 14,1981 7:05 PM Approved For Release 2007/0.3/03.: CIA-RDP89MOO61 OR0001 0004 ;Ts 0 r Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 Medium depth mine (MDM).-Current Navy planning in mine war- fare calls for development of a family of mines covering shallow, inter- mediate, and deep water depths. Quickstrike and Captor have been de- veloped covering shallow and deep depths, but efforts have floundered over the last 5 years in structuring a reasonable program to meet the medium depth threat. The Navy is again reassessing development accel- eration of a medium depth mine program following a series of ex- tensions of the basic program. The Captor deep water mine is a moored influence activated mine designed to detect, classify, and attack the most advanced diesel and nuclear submarines at all. water depths and is delivered by aircraft, surface ships, and submarines on extremely short notice. The Committee feels the Navy should expeditiously complete and submit their study on the need to deploy a medium depth mine, including a full evaluation of developing a Captor mine variant in partially meeting the medium depth requirement. This study should in- clude full disclosure of mission characteristics, as well as any acquisition efficiencies in developing a Captor mine variant. RESEARCH, DEVELOPMENT, TFST, AND EVALUATION, AIR FORCE 1981 appropriation .................................................................................................. $7,082,987,000 1982 amended request ............................................................................................ 8,823,400,000 House allowance ...................................................................................................... Committee recommendation .................................................................................. 9,088,906,000 The Committee recommends an appropriation of $9,088,906,000 for the Air Force's research, development, test and evaluation programs, an addition of $265,506,000 to the budget request for fiscal year 1981. (In thousands of dollars) Budget Committee estimate recommendation Technology base ........................................................... $637,700 $632,700 Advanced technology development ............................. 371,00 361,800 Strategic programs ........................................................ 3,467,000 3,716,606 Tactcal programs .......................................................... 1,862,767 1,755,767 Intelligence and communications ................................ 1,203,133 1,191,533 Defensewide mission support ...................................... 1,293,700 1,283,100 Classified programs .............................................................................. 22,400 Special program ................................................................................... 35,300 Inflation ........................................................................... -12,000 89,700 Jacket No. 00-000 DEFENSE REPORT-12 November 14, 1981 7:05 PM AnnrnuPCi For Release 2007/03/03: CIA-RDP89M0061 OR000.10004@k}21P-1) hr Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 PROGRAMS AND ACrIvmEs . The budget activities and programs funded under this appropriation are discussed below. The sums referred to are intended to reflect the magnitude of the various programs and activities and are not to be con- sidered as specific recommendations. These activities and programs re- quire annual authorization prior to appropriations pursuant to the provi- sions of section 412(b) of Public Law 86-149, as amended. The recommended Air Force program includes $632,700,000 in fiscal year 1982 for the budget activity, technology base. This activity funds basic research and exploratory development, with the goal of increasing scientific knowledge to maintain U.S. technological superiority, avoid technological surprises and lead to the acquisition of more cost-effective weapons systems. The Committee recommends the following changes in the budget es- timate, in accordance with the authorization: [in thousands of dollars) Budget committee estimate recommendation Aerospace biotechnology ............................................. $40,100 $37,100 Training/simulation ........................................................ 16,000 14,000 Defense research sciences.-The Committee recommends an appropri- ation of $139,500,000 for defense research sciences, Air Force. A major reduction in this account would cripple new initiatives such as: chemi- cal defense, manufacturing science, systems automation, fuel efficient aircraft, and low speed takeoff/landing. Full funding is also required to maintain the Air Force contract program with industry and universities. ADVANCED TECHNOLOGY DEVELOPMENT The recommended fiscal year 1982 Air Force program includes $361,800,000 for the budget activity, advanced technology development. This budget activity funds alternatives and concepts prior to the en- gineering development of specific weapons systems. New technological developments are pursued which are not formally. identified prior to specific operational requirements. The fiscal year 1982 Air Force pro- gram includes funding for aircraft propulsion and electronics technol- ogy, very high speed integrated circuits, air warfare detection acquisi- tion and weapon technology, personnel technology, information process- ing and flight simulator technology, and other related activities. The Committee recommends the following changes in the.budget es- timate, in accordance with the authorization: Jacket No. 00-000 DEFENSE REPT.-13 November 14, 1981 7:15 PM. ADDroved For Release 2007/03/03: CIA-RDP89M00610R0001000446t4P1" Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 Budget estimate Committee recommendation Advanced avionics for aircraft ..................................... $17,100 $15,000 Hypervelocity missile ..................................................... 8,100 11,000 VHSIC ............................................................................. 50,700 40,700 Civil/environmental engineering technology .............. 4,000 3,900 Very high speed integrated circuits (VHSIC).-The Committee recom- mends an appropriation of $40,700,000 for the VHSIC program. This coincides with the authorization recommendation, but is $10,000,000 below the revised budget request. The Committee notes that it has been advised that the VHSIC program requires an additional $25,000,000 in fiscal year 1982 if all VHSIC contractural obligations are to be met (a total of $65,700,000). The Committee acknowledges the seriousness of the potential shortfall in VHSIC funding in fiscal year 1982, and states that it is willing to accept an Air Force reprograming to cover the dif- ference. Hypervelocity missile.-The Committee recommends an appropriation of $11,000,000 for the hypervelocity missile. The goal of the program is to evaluate critical technologies for a small, low-cost hypervelocity mis- sile to be used against Soviet armored vehicles. Advanced radiation technology.-The Committee recommends an ap- propriation of $80,800,000 for advanced radiation technology. The Committee strongly supports this program, and notes that any cut will severely impair the progress of U.S. efforts in this important field. STRATEGIC PROGRAMS The recommended fiscal year 1982 Air Force program includes $3,716,606,000 for the budget activity, strategic programs. This budget activity provides for all research and development on Air Force stra- tegic offensive, defensive, and command, communications, and control programs. The development of these systems will provide a survivable land-based intercontinental ballistic missile retaliatory capability, moder- nization of the strategic bomber force and survivable strategic com- munications. The Committee recommends the following changes in the budget es- timate, in accordance with the authorization: Jacket No. 00-000 DEFENSE REPT.-13 November 14. 1981 7:15 PM4 IA-R D P89M0061 O R00010004D02-;19x Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 Budget Committee estimate recommendation Advanced ballistic reentry system ............................... $49,000 $100,000 Advanced cruise missile ............................................... 30,100 45,200 Long-range combat aircraft (13-1B) ............................. 471,000 471,000 MX ................................................................................... 1,913,200 2,008,706 Space defense systems ................................................ 180,900 200,900 Minuteman squadrons ................................................... 14,200 38,500 Post attack command/cont system ............................. 9,400 11,400 Minimum essential emergency communication net- work ............................................................................. 45,600 51,200 Air Force Sat communication system ......................... 50,100 82,100 SLBM radar warning system ............................................................... 3,800 EMP hardening ..................................................................................... 200 Air-launched cruise missile .......................................... 69,000 104,000 Advanced ballistic reentry systems (ABRES).-The Defense Depart- ment requested $49,000,000 for the ABRES program, a triservice research and development effort managed by the U.S. Air Force. The ABRES program, now entitled advanced strategic missile systems (ASMS) has been the focal point of ICBM research related to ballistic missile defense (BMD), especially in response to Soviet BMD develop- ments. Last year Congress approved $111,900,000 for this program with guidance that the program be stabilized. This year the Defense Science Board recommended that ASMS receive enhanced funding and serve as the coordinator of offensive sys- tems in the effort to promote greater synergism between missile pro- grams and ballistic missile defense developments. The Committee recommends an appropriation of $100,000,000 for ASMS to stabilize the program and assure that U.S. missile programs are able to respond to developments in United States and Soviet BMD technology. The Committee bases its action on the fact that fiscal year 1982 ABRES program, as identified by the Strategic Missile Systems (SMS)-2000 study, was severely underfunded. The ABRES program is the only program in the Department of Defense which provides for ad- vanced technology development of future Air Force ballistic missile sys- tems and subsystems-such as ICBM penetration aids, a defense sup- pression maneuvering reentry vehicle (MaRV), advanced ballistic re- entry fuze systems and guidance subsystems. The Committee believes that a $100 million appropriation is the minimum amount required to improve the ability of U.S. intercontinental ballistic missiles to respond to the advanced Soviet ABM threat and improve U.S. offensive capabilities. The Committee stresses that no funds appropriated may be used for continuation of the MX/MPS program recommended by the previous administration and terminated by the President. Space defense.-The Committee has added $20,000,000 for Air Force research and development on antisatellite (ASAT) technology. The pur- pose of the addition is to encourage an expanded ASAT program which will include related technologies including airborne- and space-based laser weapons research and development. The Committee strongly urges the Secretary of the Air Force to maintain the Program Management Office for space-based lasers and to insure coordination of the related technologies of ASAT programs. Jacket No. 00-000 DEFENSE REPT.-13 November 14,1981 7:15 PM Annroved For Release 2007/03/03: CIA-RDP89M00610R00010004W]i83bx Approved For Release 2007/03/03: CIA-RDP89M00610R000100040021-9 This Committee continues to express its concern over the fiscal man- agement of the Air Force ASAT program. The prototype minature air- launched system (PMALS) project in this program has experienced a cost growth of over $100,000,000 spread out between fiscal years 1981- 84, $37,000,000 of which is funded in this request. The Air Force main- tains that this increase is needed to maintain the ASAT flight test schedule and date of initial operating capability. Although the Commit- tee is aware of the advances the Soviet Union has made in antisatellite systems, it is concerned about the ever-growing cost requirements for this program, and whether the program is receiving proper direction from the Office of the Secretary of Defense. The Committee recommends an appropriation of $200,900,000 for space defense. Long-range combat aircraft.-The Committee recommends an ap- propriation of $471,000,000 for additional research and development for the B-1B bomber. This is $169,000,000 above the authorization recom- mendation. It provides for the fully required level of research and de- velopment funding requested by the administration in its revised budget request. Full funding is required to: maintain the full scale develop- ment schedule, maintain the date of initial operating capability, and most importantly, prevent an increase in out-years costs due to the ef- fects of inflation. PAVE PA WS.-The Committee recommends an appropriation of $3,800,000 to fund an earlier start on the southeastern and southwestern (PAVE PAWS) SLBM radar warning sites. This initiative will help close gaps in existing coverage and improve overall system. detection and per- formance. Electromagnetic pulse (EMP) hardening of critical facilities.-The Committee recommends an appropriation of $200,000 for the hardening of Air Force critical facilities to effects of EMT. These funds will be used to harden the U.S. Air Force Command Post to protect critical, fixed C2 facilities from the effects of high altitude nuclear detonation electromagnetic pulse. This will help provide assured positive control of launch capabilities from Strategic Air Command (SAC) headquarters to Wing Command Posts. Post attack command and control system (PAACS) (EMP harden- ing).-The Committee recommends an appropriation of $11,400,000 for the PAACS. This is an increase of $2,000,000 over the budget request. The additional funds will be used to conduct an EMP test of an EC- 135 Airborne Command Post aircraft. The baseline information col- lected from this test will be used in concert with the EC-135 EMP pro- tection modification program, which seeks to make U.S. command and control assets survivable during and after a nuclear exchange. Air Force satellite communications (AFSATCOM) system (EHF).- The Committee recommends an appropriation of $82,100,000 for the AFSATCOM system. This is an increase of $32,000,000 over the budget request. The additional funding will initiate research and development on a new generation, multimission satellite for extremely high frequency (EHF) communications packages on host spacecraft and associated ter- minals. The funding will be used to define military satellite communica- tions (MILSATCOM) packages, accelerate development and demonstra- Jacket No. 00-000 DEFENSE REPT.-13 November 14, 1981 7:15 PM IA-R ?P89M00610 R000100046E1xJ$9.bx Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 tion of critical satellite and terminal technologies needed for the new MILSATCOM architecture, prepare for acquisition in fiscal year 1983 and establish feasibility for the integration of communications payloads on satellite data system (SDS) satellites. Minimum essential emergency communications network (MEECN).- The Committee recommends an appropriation of $51,200,000 for the MEECN. This is an increase of $5,600,000 over the administration budget request. The additional funding would permit development start- ing in fiscal year 1982 of a new VLF/LF receiver for bomber aircraft (including the B-1B) and in development of more reliable antennae sys- tems for the EC-135 Airborne Command Posts, which transmit VLF/LF messages. This funding is required to meet the desired installa- tion time of 1985-86. Minuteman squadrons (airborne launch control system (ALCS) phase III and Minuteman guidance improvement).-The Committee recom- mends an appropriation of $38,500,000 for Minuteman squadrons. This recommendation restores $18,800,000 for the ALCS phase III program for 200 Minuteman III intercontinental ballistic missiles and an addi- tional $5,500,000 for the Minuteman guidance improvement program. TACTICAL PROGRAMS The recommended fiscal year 1982 Air Force program includes $1,755,767,000 for the budget activity, tactical programs. This activity provides for advanced, engineering, and operational systems develop- ment on all aspects of Air Force tactical warfare efforts. This includes developments to improve Air Force tactical capabilities in combat mis- sions such as air superiority, interdiction, close air support to land com- bat forces, suppression of enemy air defenses, airlift, airborne early warning and control, communications, identification, navigation, and electronic warfare. The Committee recommends the following changes in the budget es- timate, in accordance with the authorization: [in thousands of dollars) Budget Committee estimate recommendation Enforcer ................................................................................................. $6,000 Tactical identification system ....................................... $8,500 14,800 PAVE MOVER ................................................................ 5,200 5,700 CX program .................................................................... 169,700 ............................ Airlift enhancement .............................................................................. 15,000 Fighter mission analysis ...................................................................... 5,000 Aircraft engine CIP ........................................................ 122,500 125,000 Close air support wt:apons system ............................. 14,600 25,000 Air-launched assault breaker ....................................... 36,100 24,100 Appi for info processing tech ...................................... 5,900 4,900 F-16 squadrons ............................................................. 42,200 57,500 CX aircraft.-The Air Force requested $169,700,000 in fiscal year 1982 for research and development on the CX aircraft. The CX was designed to be a cargo transport aircraft capable of airlifting outsize cargo over intercontinental distances and landing in small, austere air- fields. The Committee acknowledges that critical, near-term U.S. airlift November 14, 1981 7:15 PM Approved For Release 2007/03/03 CIA-RDP89M0061OR00010004c 2*l.bx Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 deficiencies now exist. However, the Committee is not prepared to em- bark upon a major acquisition program of $12.9 billion when significant questions remain unanswered regarding utilization of existing aircraft designs and upgrading of the civilian reserve air fleet (CRAF) program in remedying U.S. airlift deficiencies. Moreover, the Committee must state that the submission of the congressionally mandated mobility study to Congress did not satisfy these concerns. Therefore, the Com- mittee recommends no appropriation for the CX program in fiscal year 1982, and directs that the CX program be terminated. Instead, it ap- propriates $15,000,000 for airlift enhancement research studies and air- lift augmentation alternatives. Next generation trainer (NGT).-Last year this Committee requested the Air Force to restructure the NGT program to include the T-34C Navy primary trainer as a next generation trainer candidate. The Com- mittee has thoroughly reviewed the Air Force's evaluation of the T- 34C, the Navy primary trainer, as an alternative to the proposed NGT. The Committee finds that there are significant technical and opera- tional reasons to support the Air Force position to pursue a turbo fan NGT option over the turbo prop T-34C. A key concern to the Com- mittee was the pilot flight evaluation of the T-34C as an Air Force NGT option. Problems of congested air space at Air Force training fields, airplane performance levels and requirement for additional pilot training in the T-34C all entered into the Committee's decision to sup- port the Air Force NGT program this fiscal year. The Committee approves $14,700,000 for the Air Force NGT pro- gram. This funding is to be used to support contractor selection and in- itiation of the development of the airframe and engine. The Committee believes that the NGT is the best alternative available to train pilots for the Air Force's tactical, strategic, and support requirements. Enforcer program.-The Committee recommends an appropriation of $6,000,000 for the Air Force enforcer program. This replaces fiscal year 1980 funds that lapsed and will permit a fair completion of the testing of the enforcer aircraft. Future fighter mission analysis.-The Air Force requested $10,100,000 for the advanced tactical fighter program. The authorization conference denied the $10,100,000 request for advanced tactical fighter. The Com- mittee also does not agree to initiate concept definition studies for an advanced tactical fighter at this time. The current generation of Air Force fighters should serve to meet U.S. tactical- fighter needs well into the future. Instead, the Committee recommends an appropriation of $5,000,000 for future fighter mission analysis, to enable the Air Force to begin analyses of future mission requit ements for Air Force tactical fighters. F-16 squadrons.-The Committee recommends an appropriation of $57,500,000 for F-16 squadrons. This is an increase of $15,300,000 above the budget request. The additional funding is to be used to con- duct a flight test demonstration of the F-16E. This flight test is needed to validate projected performance and capability improvements (strike/ attack capability, avionics, et cetera). The Committee action includes approval of the $8,300,000 authorized to support a flight test evaluation of the r-16E using competitive deri- Jacket No. 00-000 DEFENSE REPT.-13 November 14, 1981 7:15 Pvt Annroved For Release 2007/03/03: CIA-RDP89M00610R00010004002- 9,r . Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 vation engines. In so doing, however, the Committee directs that none of the funds appropriated will be used until such time as the Air Force sets forth a schedule which will permit adequate time and money so as to insure that a truly fair and equitable competition between manufac- turers of derivative engines can take place. Chemical biological defense equipment.-The Committee recommends an appropriation of $12,800,000 for chemical biological defense equip- ment. This is an increase of $4,000,000 over the budget request. The ad- ditional funding expands development efforts for collective protective shelters and other devices. Close air support weapon system.-The Committee recommends an ap- propriation of $25,000 for close air support weapon system (IR Maver- ick). The increase involves a transfer of $10,400,000 from the Navy infrared (IR) Maverick missile program to the Air Force. This change is made on the basis that the U.S. Air Force should continue to be man- aging this development program. Position and velocity extraction (PAVE) MOVER.-The Committee recommends an appropriation of $5,700,000 for PAVE MOVER. The additional funds ($500,000) will be used to provide more realistic PAVE MOVER enemy counter-countermeasure features. Night precision attack (LANTIRN).-The Committee recommends an appropriation of $87,600,000. This amount is required to prevent sched- ule slip and cost growth in fabrication of development pods, flight test of navigation targeting pods, and production readiness initiatives. The optimum program avoids inefficient development delays and cost in- creases. These funds are to be used only for continuation of the ongo- ing development program as currently structured by the Air Force to preclude further delays and increased costs. INTELLIGENCE AND COMMUNICATIONS The recommended fiscal year 1982 Air Force program includes $1,191,533,000 for the budget activity intelligence and communications. This activity provides funding for advanced, engineering, and opera- tional systems development efforts in Air Force intelligence and world- wide communications systems. The Committee recommends the following changes to the budget es- timate, in accordance with the authorization: [In thousands of dollars) Budget Committee estimate recommendation NAVSTAR GPS user equipment .................................. $166,100 $166,000 DEFE*ISEWIDE MISSION SUPPORT The recommended fiscal year 1982 Air Force program includes $1,283,100,000 for the budget activity, defensewide mission support. This budget activity funds Air Force installations and operations re- quired for major system testing, test instrumentation development, tech- nical information efforts, target development, and other 7esearch and development support. November 14.1981 7:15 PM 0R00010004J21-1.bc Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 The Committee recommends the following changes to the budget es- timate, in accordance with the authorization: (In thousands of dollars] Budget estimate Committee recommendation Acquisition and command support ............................. $259,400 $253,000 Management headquarters ........................................... 22,900 20,900 B-52 flight simulator.-The Committee recommends an appropriation of $11,300,000 for flight simulator development. The Committee does not agree to restore any fiscal year 1982 funds for the B-52D flight simulator modification. These funds are unnecessary because the lead- time required to field the prototype is too long to effectively use the devise before the B-52D aircraft are retired. Alternative fighter engine.-The Committee recommends an appropria- tion of $35,000,000 for the Air Force alternative fighter engine program. These funds will be administered by the Air Force to support work needed to pursue follow-on engine development on a competitive basis for improved aircraft engine performance. The funds will be allocated as determined by the Department of the Air Force between competing engine manufacturers so as to insure that full and fair competition is maintained so alternate options are available to the Department of De- fense should the requirement for increased thrust become necessary. The Air Force has not identified any future requirement for a higher thrust engine. If a requirement is established, the Committee should be advised before any effort is applied to a higher thrust engine, and a specific plan presented to insure a full and fair competition. Initiation of development, including authorization and appropriation of the re- quired funds, will require prior approval of this Committee. This is con- sistent with the guidance provided the Air Force last year by the con- ferees. CLASSIFIED PROGRAMS The Committee recommends an appropriation of $30,100,000 for spe- cial activities associated with the classified programs of the Air Force. These programs are discussed in the classified annex to this report. ITEMS OF SPECIAL LNTFREST Air Force flight simulator visual systems.-The Committee is con- cerned that the Air Force is not adequately funding its only research and development effort to develop a tactical visual system for the A-10, F-15, and F-16 weapon system trainers (WST's). For advanced simu- lator development, the Committee approved the $2.2 million requested, which is $2.3 million less than Congress was told last year would be required for the fiscal year 1982 effort. However, the Committee be- lieves that, if this development program is not continued at the proper funding level and completed soon, the Air Force will have bought A-10, F-15, and F-16 WST's which will not be able to provide air-to- ground, air-to-air, and combat mission training. This would defeat the basic purpose of the WST's. The Committee strongly encourages the Jacket No. 00-000 DEFENSE REPT.-13 Nove b r 14, 1981 7:15 PM droved For Release 2007/03/03: CIA-RDP89M00610R000100049 3 s bx Approved For Release 2007/03/03: CIA-RDP89M00610R000100040021-9 Air Force to develop and pursue a program that will fill this training need. On-board inert gas generating system.-The Committee is aware of the Air Force effort in the development of an OBIGGS. This is a new initiative to provide a more efficient system to give fire and explosion protection by filling fuel tanks with an inert gas as fuel is consumed. This is now done on a few military aircraft by carrying a store of inert gas or foam. If the OBIGGS concept proves feasible, the inert gas can be derived from engine bleed air thereby eliminating the need for carry- ing inert gases. This would provide a cheaper and simpler way to give added fire protection and would make it possible to equip all aircraft at a reasonable cost. The Air Force is encouraged to initiate flight testing as soon as feasible and advise the Committee of funding requirements for fiscal year 1983. Tactical command and control modernization.-The Committee is con- cerned the current Air Force tactical command and control capability is severely limited by equipment that was developed during the 1965-68 timeframe. The Air Force has documented these deficiencies within the tactical Air Force integrated information system master plan, but has not yet initiated a program for meeting the modernization requirement. The Committee feels the Air Force should expeditiously improve 'their tactical command and control system, fully utilizing other service pro- grams in order to achieve maximum cost savings while insuring opera- tional compatibility. The Air Force should consider reprograming fiscal year 1982 funds to achieve any acquisition efficiency. The Committee recommends the Air Force provide at the earliest possible date a full report on plans for tactical command and control modernization. Jacket No. 00-000 DEFENSE REPT.-13 November 14,1981 7:15 PM Anr)roved For Release 2007/03/03: CIA-RDP89M00610R00010004 tl6b" Approved For Release 2007/03103: CIA-RDP89 118 RESEARCH, DEVELOPME\T, TEST, AND EVALUATION,. DEFENSE AGE'CIES 1981 appropriation ................. . ................................................................................ S1,298,948,000 1982 budget estimate ................................................................................................ 1,789,000,000 House allowance ....................................................................................................... Committee recommendation .................................................................................. 1,845,495,000 The Committee recommends an appropriation of $1,845,495,000 for research, development, test and evaluation programs of the Defense Agencies, an addition of $56,495,000 to the budget request for fiscal year 1982. Budget estimate Committee recommendation Techn l o ogy base ..................... Strategic ro r $987,694 $1 010 494 p g ams ........................................................ Intelligence and communications ......... 79,884 , , 117,384 .......... Defensewide mission support ...................................... OSD and OASDS 54,385 53,698 ................... ..................... Special activities .......... -7,103 .................................................... Inflation ............ 3,135 ............... -2,000 19,300 PROGRAMS AND ACrlvmEs The budget activities and programs funded under this appropriation are discussed below. The sums referred to are intended to reflect the magnitude of the various programs and activities and are not to be con- sidered as specific recommendations. These activities and programs re- quire annual authorization prior to appropriations pursuant to the provi- sions of section 412(b) of Public Law 86-149, as amended. The Committee recommends the following changes to the defense agencies budget estimate, in accordance with the authorization: [in thousands of dollars] Budget estimate Committee recommendation Strategic technology ................................................ Particle beam t h l $145,831 $192 431 ec no ogy ............................................. Exp eval maj i 29,000 , 36 000 nnov tech .............................................. Defense Nuclear A en 273,340 , 251,340 g cy .............................................. Long haul comm i 288,078 279 278 un cations .......................................... Information l 19,550 , 19 700 ana centers ............................................... WWMCCS sys en ineer 3,887 , 2,552 g ............................... ................. 45,052 82,552 Space-based lasers (SBL).-The Committee recommends an appropri- ation of an additional $20,000,000 in the Defense Advanced Research Projects Agency (DARPA) account, strategic technology-62301E, for space-based lasers. The Committee has reviewed the Department of Defense report to the Congress on space-based lasers (May 15, 1981) and the report of the Defense Science Board Task Force on review of the Department of Defense spaced-based laser weapon study in the course of making this recommendation. The Committee believes that these reports help clarify space-based laser weapons issues and serve as a credible basis from Jacket No. 00-000 DEFENSE REPT.-14 Approved For Release 2007/03/03: CIA-RDP89M0061OR00010004@ bler9a 19#1 7.11 DXA Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 which Congress can confidently add an additional $20,000,000 to space- based laser weapons research and development. Blue/green laser communications.-The Committee recommends an addition of $10,000,000 for the DARPA blue/green laser communica- tions program. The Committee believes that the objective of the blue/ green program, the development of a technology to enhance com- munications with deeply submerged submarines, is a potential, longer- term complement to the extremely low frequency (ELF) program. The Committee recognizes that considerable technical uncertainty remains as to which method to pursue to deploy such a blue/green laser communications system-ground based or space based. The Com- mittee reiterates its concern expressed in the fiscal year 1982 report that it would be premature to preclude research on either approach. Materials technology.-The Committee supports the addition of $1,000,000 to DARPA's strategic technology program for carbon-carbon materials research. This research is to go toward development of light- weight materials for large optics. This increase is within fiscal year 1982 authorization levels. The Committee has also added $2,000,000 to the Navy's materials technology program, to expand the Navy's develop- ment effort on metal matrix composites and to support the develop- ment of substitutes for critical strategic materials. Project SORAK.-The Committee strongly supports the demonstra- tion of advanced technology to solve surveillance and targeting prob- lems in Korea (project SORAK). However, because the required fiscal year 1981 funds for detailed planning were not made available, it is recognized that this planning must still be accomplished and that most of the major implementation funding should therefore be delayed until fiscal year 1983-84. In addition, while the demonstration is largely drawn from DARPA developed technology and DARPA therefore should play a major role, this demonstration is more properly a joint Army and Air Force project requiring close coordination with Com- mander in Chief, Pacific and the services should be active participants. Funds are therefore provided to DARPA in the amount of $20 million to initiate the program during this fiscal year. However, the DARPA is tasked to assure real service participation before additional funds will be provided for development and deployment. Defense Nuclear Agency.-The Defense Nuclear Agency requested $288,078,000 for fiscal year 1982. An additional $69,000,000 was added by the Reagan administration in its budget amendment to support: an increase in nuclear weapons effects technology base programs; develop- ment of hardening of Navy systems warning and dispersal methods for nuclear capable tactical aircraft field sensors for theater nuclear forces (TNF) systems; additional MX support; and an expansion in the under- ground test program to provide for one test every 6 to 12 months com- pared with the current testing rate of one every 18 to 24 months. The Committee recommends an appropriation of $279,278,000 to sup- port Defense Nuclear Agency (DNA) programs. The Committee finds that the increased level of nuclear testing is required to meet MX mis- sile and advanced ballistic reentry vehicle (ABRV) requirements, and maintain an adequate level of technical experts needed to conduct the underground nuclear test program. Jacket No. 00-000 DEFENSE REPT.-14 November 14. 1981 7:21 PM AnnrnvPd For Release 2007/03/03: CIA-RDP89M00610R00010004No ea8-1rx Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 However, it recommends a reduction of $8,800,000 to specifically come from the defunct MX shelter support program. Map/chart/geodesy.-The Defense Mapping Agency (DMA) re- quested an appropriation of $19,810,000 in fiscal year 1982 to support Defense Mapping Agency projects. The Committee recommends this amount. The March budget amendment included $4,500,000 for survey support for the MX basing program. In view of the administration's revised MX plans, part of this request is unnecessary. The Committee recommends deletion of $1,000,000 added to the March budget amend- ment for MX mapping support, and an addition of $1,000,000 to the DMA budget to support other DMA activities. The remaining MX-re- lated funding is to be used for development of new surveying equip- ment to insure DMA's capability of meeting the geodetic and geophysi- cal portion of the missile's accuracy requirements. The Committee recommends an appropriation of $19,810,000 for the Defense Mapping Agency. Technical support to Under Secretary of Defense research and en- gineering (USDR/E).-The Committee strongly recommends the ap- propriation of $14,539,000 for technical support to USDR/E. The fiscal year 1982 program includes money to continue work related to the Export Control Act involving completion of the military critical tech- nologies list and analyses of foreign technology availability and Warsaw pact technology capabilities. The Committee strongly supports USDR/E efforts in this area, as it believes that the U.S. technological leadtime ad- vantage over the Union of Soviet Socialist Republic in military critical technologies must be preserved. The Committee reiterates its support for providing a separate line item for overall DOD activities in this area. It requests that such a designation begin in fiscal year 1983.. Long-haul communications.-The Committee recommends an appro- priation of $19,700,000 for long-haul communications. This is $150,000 above the budget request. These funds are recommended in support of two C' initiatives: $100,000 for EMP hardening of certain White House facilities and $50,000 for DCA's contribution to the development of modulation tech- niques designed to facilitate communications propagation through scintil- lation effects. The Committee recommends a reduction of $19,600,000 for classified programs and intelligence activities for the Defense Agencies. These programs are discussed in the classified annex of this report. DIRECTOR OF TEST AND EVALUATION, DEFENSE 1981 appropriation ................................................................................................... 542,100,000 1982 budget estimate ................................................................................................ 53,000,000 House allowance ....................................................................................................... Committee recommendation .................................................................................. 53,000,000 The recommended program includes $53,000,000 for the activities of the Office of the Director of Test and Evaluation, Defense. Jacket No. 00-000 DEFENSE REPT.-14 November 14,1981 7:21 PM IA-R DP89MOO61 OR000100040RI-41Lbx Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 Low altitude airfield attack system.-The Committee supports the deletion of $60,000,000 for the low altitude airfield attack system (JP- 233), from the Air Force budget. This item was not funded in fiscal year 1981, and House-Senate conferees agreed to terminate United States participation in the development of JP-233 in the fiscal year 1981 supplemental conference. However, the Committee wishes to express its continued support for the acquisition of both direct and standoff airfield attack weapons. In particular, the Committee wishes to express its support for the planned evaluation of JP-233 direct airfield ? attack submunitions technology (including SG35 and HB86 submunitions technology) in the foreign weapons evaluation program, to determine its suitability for direct low altitude airfield attack applications for the Air Force. Jacket No. 00-000 DEFENSE REPT.-14 November 14, 1981 7:21 PM se 2007/03/03: CIA-RDP89MOO61OR0001000400244 1.bx Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 TITLE VI SPECIAL FOREIGN CURRENCY PROGRAM 1981 appropriation ........................................................................................................ S2,760,000 1982 budget estimate .................................................................................................... 3,083,000 House allowance ............................................................................................................ Committee recommendation ........................................................................................ 3,083,000 The new obligational authority recommended in the till is $323,000 more than the amount provided in fiscal year 1981. The special foreign currency appropriation provides dollars to be used exclusively for the purchase from the Treasury of excess foreign currencies which are used in the financing of programs of benefit to the Department of Defense. Such expenditures are authorized by 80 Stat. 990. November 14,1981 7:23 PM Release 2007/03/03: CIA -RDP89M0061OR00010004d 2'1` .bX Approved For Release 2007/03/03: CIA-RDP89M00610R000100040021-9 TITLE VII GENERAL PROVISIONS Section 708-Depot maintenance contracts, cost overruns, and industrial fund activities The Committee disagrees with the House provision by which Depart- ment of Defense appropriations for the current fiscal year shall be made available for payments for depot maintenance contracts, unusual cost overruns incident to ship overhauls, and industrial fund activities. Section 723-"Buy America" provision The Committee disagrees with the House modification of section 723 which states that none of the funds appropriated by this act shall be used to facilitate the sale of optional uniform items by military clothing sales stores or by the Department of Defense operated exchange system stores. Additionally, the Committee concurs with the House inclusion of the Maybank amendment in this section which prohibits the payment of a price differential on Defense procurement contracts for the purpose of relieving high unemployment. The Committee disagrees, however, that fiscal year 1982 funds should be used to continue the test involving the Defense Logistics Agency. Section 728-Legislative liaison activities The Committee agrees with the provision included by the House to maintain the limitation on legislative liaison activities at $7,500,000 in- stead of the $8,000,000 as requested in the budget estimate. Section 733-Transfer of funds The Committee concurs with the House provision permitting the De- partment to transfer funds only between appropriations available in the act, and is identical to the transfer provision contained in the fiscal year 1981 Defense Appropriations Act. The budget requested authority to transfer not to exceed $1,000,000,000; the Committee agrees with the House, however, in limiting this authority to $750,000,000. Section 735--Federal employees compensation fund The Committee concurs with the House provision placing a limitation of $206,100,000 on funds available for payment to the Federal em- ployees compensation fund as established by 5. U.S.C. 8147 'This sec- tion is discussed earlier in the report. Section 741-Civilian health and medical program of the uniformed ser- vices (CHAMPUS) The Committee disagrees with the House provision that limitations on CHAMPUS funding shall not apply to payments that supplement primary coverage provided by other insurance plans or programs that pay for at least 75 per centum of the covered services. DEFENSE REPORT-16 November 14,1981 7:25 PM Annrnved For Release 2007/03/03: CIA-RDP89M00610R0001000400k . .bx Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 Section 760-Purchase of military insignia The Committee concurs in the House language which states that none of the funds appropriated by this act shall be available for the pur- chase of insignia for resale unless the sales price of such insignia is ad- justed to the extent necessary to recover the cost of such purchases. Section 765-Medical care for foreign diplomats and military personnel The Committee has deleted a provision included in the House bill prohibiting the Department of Defense from providing medical care in the United States on an inpatient basis to foreign military and diplo- matic personnel or their dependents unless the Department is reim- bursed for the full cost of providing such care. Section 765-Military aircraft and vehicles leasing The Committee recommends inclusion of a general provision prohibit- ing funds appropriated in this act from being used for the leasing in the United States of military aircraft or vehicles when suitable aircraft or vehicles are commercially available in the private sector. Section 769-Teachers pay The Committee has deleted House language which prohibits teachers from receiving an increase in pay as the result of the establishment of any new category of pay that was not in effect prior to the 1979-80 school year. Section 770-Teachers pay The Committee has deleted a House provision which prohibits teachers from receiving an increase in pay in excess of 4.8 percent for the 1980-81 school year. Section 769-9mm military handguns The Committee has inserted a general provision which states that none of the funds available by this act shall be used for the evaluation or procurement of new 9mm weapons to replace existing .45 and .38 caliber military handguns. Section 770- CivilFan health and medical program of the uniformed services The Committee has inserted a general provision as requested in the budget which permits the transfer of funds from the operation and maintenance, defense agencies accounts to the operation and main- tenance of the military departments accounts for the purpose of con- ducting a test to evaluate a capitation approach to providing medical care. Section 771-Federal Emergency Management Agency The Committee has inserted a general provision which permits the Department of Defense to transfer not to exceed $1,700,000 of Reserve Personnel appropriations to the Federal Emergency Management Agency. Section 774-Prohibition on expansion of the competitive rate program The Committee recommends a general provision not contained in the House bill prohibiting the use of funds to expand the competitive rate program for the movement of household goods to Alaska and Hawaii. Jacket No. 00-000 DEFENSE REPORT-16 November 14,1981 7:25 PM Annrnved For Release 2007/03/03: CIA-RDP89M0061OR000100040b' q-4.bX Approved For Release 2007/03/03: CIA-RDP89M00610R000100040021-9 This provision was included in the fiscal years 1980-81 Defense Appropriations Acts. Jacket No. 00-000 DEFENSE REPORT-16 N vem er 14, 1981 7:25 PM Approved For Release 2007/03/03: CIA-RDP89MOO61OR000.100040~ 1$-O.b, Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040021-9 TITLE VIII RELATED AGENCIES INTELLIGENCE COMMUNITY STAFF 1981 appropriation ......................................................................................................... S18,271,000 1982 budget estimate .................................................................................................... 13,563,000 House allowance ............................................................................................................ Committee recommendation ........................................................................................ 13,563,000 The Committee recommends an appropriation of $13,563,000 for the intelligence community staff. The recommendation agrees with the President's budget estimate (as amended) and is a reduction of $4,708,000 below the fiscal year 1981 appropriation. The reduction below the fiscal year 1981 appropriation is primarily as- sociated with nonrecurring costs involving the development of a new communitywide system for security control and safeguarding of intel- ligence programs and materials which require special protection. The intelligence community staff (ICS) was initially established with 245 personnel positions to support the Director of Central Intelligence in overall management and direction of the intelligence community. A recent reorganization and consolidation of ICS activities was recently completed and 230 personnel positions will be available for the in- telligence community staff. The recommended appropriation includes $2,300,000 for external research and analysis projects. The Committee notes that funds re- quested for this activity have increased rapidly over the past 3 years. This is offset in part by the fact that the staff has assumed new respon- sibilities following the recent reorganization and the Committee will this level of activity during the current fiscal year. The staff has a relatively large cadre of senior intelligence personnel and the Committee will require a detailed explanation of any future increases in this activity. PAYME\-r TO THE CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY SYSTEM FUND 1981 appropriation ........................................................................................................ $55,300,000 1982 budget estimate .................................................................................................... 84,600,000 House allowance ............................................................................................................ Committee recommendation ........................................................................................ 84,600,000 The Committee recommends appropriation of $84,600,000 for the payment to the Central Intelligence Agency retirement and disability system fund appropriation. The Committee recommendation concurs with the budget estimate and is an increase of $29,300,000 above the fis- cal year 1981 appropriation. The Central Intelligence Agency Retirement Act of 1964 for Certain Employees (Public Law 88-643, October 3, 1964) authorized the es- Jacket No. 00-000 DEFENSE REPORT-17 November 14,1981 7:37 PM Approved For Release 2007/03/03: CIA-RDP89M0061OR000100040~ 1h~1.bx Approved For Release 2007/03/03: CIA-RDP89M00610R000100040021-9 tablishment of a Central Intelligence Agency retirement and disability system for a limited number of Agency employees and authorized the establishment and maintenance of a fund from which benefits would be paid to qualified beneficiaries. The fund finances the cost of. (1) inter- est on the unfunded liability, (2) annuities attributable to credit allowed for military services, (3) benefits not met by employee/employer con- tributions, and (4) the increase in unfunded liability resulting from liberalized benefits and Federal pay raises. The benefits structure of fund is essentially the same as for the civil service retirement system with only minor exceptions. It is estimated that annuitants and survivors will be receiving benefits by the end of fis- cal year 1981. Jacket No. 00-000 DEFENSE REPORT-17 November 14.1981 7:37 PM Approved For Release 2007/03/03: CIA-R DP89M00610R00010004@}~~igbc