Department of Defense Authorization Act, 1989

Summary

Department of Defense Authorization Act, 1989 - Title I: Procurement - Part A: Funding Authorizations - Authorizes appropriations for FY 1989 to the Army, the Navy and Marine Corps, and the Air Force for procurement of the following: (1) aircraft; (2) missiles; (3) weapons and tracked combat vehicles; (4) ammunition; (5) shipbuilding and conversion; and (6) other procurement. Authorizes appropriations for FY 1989 for the following: (1) procurement by the defense agencies; (2) the chemical demilitarization program; and (3) procurement by the Reserves and National Guard. Authorizes the Secretaries of the Army, the Navy, and the Air Force, under specified limitations and conditions, to enter into multiyear contracts for the procurement of certain weapons and defense systems. Part B: Program Requirements, Restrictions, and Limitations - Places certain requirements, restrictions, or limitations on the following Navy procurement programs: (1) the Trident II Missile program; (2) the DDG-51 Destroyer program; (3) the 5-Inch Semi-Active Laser Guided Projectile program; (4) AH-1W Ground Support Equipment; and (5) AN/SQR-17A Acoustic Processors. Prohibits FY 1989 Air Force funds from being obligated or expended in connection with the launch facility at Vandenberg Air Force Base, California. Part C: Miscellaneous Provisions - Directs the Secretary of Defense, no later than December 1, 1988, to submit to the Congress a detailed report on the current and projected requirements of the Navy for aircraft. Extends through April 30, 1997, the deadline for completion of the chemical demilitarization program (the destruction of lethal chemical weapons) under the Department of Defense Authorization Act, 1986. Directs the Secretary to notify the Senate and House Armed Services Committees (the defense committees) of any delays in meeting such deadline. Title II: Research, Development, Test, and Evaluation - Part A: Funding Authorizations - Authorizes appropriations for FY 1989 to the armed forces and the defense agencies for research, development, test, and evaluation. Part B: Program Requirements, Restrictions, and Limitations - Repeals a specified provision of the National Defense Authorization Act for Fiscal Years 1988 and 1989 which limited the funds authorized to be obligated for the AAWS-Medium (anti-tank weapon system) until the Secretary of the Army completed evaluation of the MILAN II anti-armor weapon system. Prohibits funds from being used for procurement or for research, development, test, or evaluation of the MILAN II or the Bofors BILL medium anti-tank system. Earmarks specified funds for the Navy Trident II missile. Disallows any general defense program reductions to be taken from such program. Earmarks specified funds for the making of a grant to the National Center for Manufacturing Sciences in connection with a program of research relating to manufacturing technology. Directs the Secretary to conduct a study to determine the feasibility of developing a common launch control system for the MX rail garrison program and the Small Intercontinental Ballistic Missile (ICBM) program. Directs the Secretary to proceed with such a system if it is found to be feasible and cost-effective. Directs the Secretary, through the Under Secretary of Defense for Acquisition, to conduct a review of the small ICBM program, requiring certain estimates as part of such review. Directs the Secretary to conduct a study of the potential vulnerability of a small ICBM system to special operations forces of a potential enemy or to domestic saboteurs. Directs the Secretary to submit the results of such studies, together with comments and recommendations, to the defense committees and the Senate and House Appropriations Committees no later than March 1, 1989. Earmarks funds for such studies and for the Small ICBM and MX rail garrison programs. Earmarks specified funds for the following defense agency programs: (1) an Optoelectronics Materials Center; (2) the Consolidated Department of Defense (DOD) Software Initiatives program; and (3) extended air defenses (tactical missile systems). States the focus of the Balanced Technology Initiative program (BTI) to be the development of innovative concepts and methods of enhancing conventional defense capabilities, including the development of concepts and methods which will accelerate the rate of obsolescence of equipment, doctrine, and tactics of the Soviet Union and Warsaw Pact countries. States particular initiatives, programs, and weapons to be given emphasis under BTI. Earmarks specified funds for this program as well as for BTI programs authorized under prior defense authorization Acts. Requires the Director of Defense Research and Engineering to determine the amount of funds appropriated to the armed forces and the defense agencies for BTI. States that the Conventional Defense Initiative is not an element of BTI. Prohibits required defense budget reductions from being taken from BTI funds. Prohibits such earmarked funds from being used in connection with the Strategic Defense Initiative (SDI) program. Requires the Director, within 90 days after the enactment of this Act, to report to the defense and appropriations committees of the Congress on the implementation of these BTI provisions. Prohibits any funds from being obligated for BTI programs until such report has been received and 30 days have elapsed since the receipt of such report. Limits the obligation of funds for advanced tactical aircraft within the Navy and Air Force until the Secretary has made certain certifications to the Congress concerning sufficient budgeting for demonstration and validation programs in connection with such aircraft. Limits the obligation of funding for combat identification systems until the Secretary has made certain certifications to the Congress relating to sufficient funding for specified parts and programs within such combat identification system. Limits funding for specified air-to-air missile programs unless the Secretaries of the Navy and Air Force establish joint program offices for the co-development of such programs. Limits the authorization of appropriations for specified defense programs. Directs the Secretary to reduce such authorized amount to achieve a total reduction of $10,000,000. Part C: Strategic Defense Initiative - States the total amount to be obligated for the SDI program, stating specific amounts for each subsystem within SDI. States that funds appropriated to DOD may not be used to establish a Strategic Defense System Operational Test and Evaluation activity. Directs the Secretary, no later than 90 days after 1989 funding for SDI is enacted by legislation, to submit to the defense and appropriations committees of the Congress a report on the allocation of SDI funding for FY 1989. Prohibits funds appropriated or otherwise made available to DOD for FY 1989 from being obligated or expended: (1) for any development or testing of anti-ballistic missile systems, with a specified exception; or (2) for the acquisition of any material or equipment required to be used for the development or testing of anti-ballistic missile systems or components, with a specified exception. States that such limitation does not apply to certain SDI funds for FY 1989. Part D: Miscellaneous Provisions - Directs the Secretary, no later than December 31, 1988, to submit to the defense committees a report on the plans and projected expenditures for the Long-Range Conventional Cruise Missile program. States certain findings of the Senate with regard to strategic missile modernization. Expresses the sense of the Senate that the authorization of funds in this Act for research and development in connection with the Small ICBM and the MX Rail Garrison does not constitute a commitment or express an intent by the Senate to provide funds to procure and deploy the Midgetman missile or to deploy any MX missiles in a rail-mobile basing mode or both. Authorizes the Secretary of a military department, unless the quantity of a material in the National Defense Stockpile (NDS) is lower than the required amount, to loan to a foreign government supplies, materials, or equipment for the purpose of carrying out a program of cooperative research, development, testing, or evaluation. Authorizes the Secretary to accept as a loan or a gift such materials, supplies, or equipment for such purpose. Permits the materials, supplies, or equipment loaned to a foreign government under this provision to be consumed if the Secretary concerned: (1) determines that the success of the research or development depends on the consumption of such item; and (2) approves of the expenditure or consumption of such materials, supplies, or equipment. Amends the National Defense Authorization Act for Fiscal Year 1987 to require an annual report concerning the designation of major non-NATO allies only when a country or countries have been added to or deleted from such list. (Currently, such report is required annually even if there have been no changes in such list.) Authorizes funds made available for the University Research Initiative Program to be obligated in any State without regard to any limitation on the amount that may be expended under such program in any one State. Directs the Secretary, no later than the date on which the President submits the FY 1990 budget to the Congress, to submit to the defense committees a comprehensive report on space control capabilities of the armed forces of the United States. Title III: Operation and Maintenance - Part A: Authorizations of Appropriations - Authorizes appropriations for FY 1989 for operation and maintenance for the following: (1) the armed forces; (2) the defense agencies; (3) the Reserves; (4) the National Guard; (5) the National Board for the Promotion of Rifle Practice; (6) environmental restoration, defense; (7) the Court of Military Appeals; and (8) humanitarian assistance. Authorizes appropriations for FY 1989 for unbudgeted increases: (1) in fuel costs; and (2) as the result of inflation. Authorizes appropriations for FY 1989 for working capital funds for the armed forces and the defense agencies. Directs that the amount authorized for humanitarian assistance be used for the purpose of providing humanitarian relief to persons displaced as refugees because of the Soviet Union's invasion of Afghanistan. Specifies a certain amount of such assistance to be used for humanitarian relief supplies to the non-Communist resistance organization near the Thailand-Cambodian border. Authorizes the Secretary to transfer to the Secretary of State funds for such purpose. Provides that the transportation of such supplies shall be under the direction of the Secretary of State, requiring such transportation to be achieved by the most economical means possible. Directs the Secretary of Defense, within 60 days after the enactment of this Act and no later than June 1, 1989, and no later than June 1 of each subsequent year, to report to specified congressional committees until such funds are expended. Part B: Limitations - Prohibits the Secretary of the Navy, during FY 1989, from taking any steps to convert the operation of specified activities from the operation of an activity financed by the Navy Industrial Fund to operation as an activity financed by direct appropriations. Part C: Permanent Law Changes - Prohibits a private contractor operating a commissary store on a military installation from procuring the products to be sold in such store or from managing such store. Requires DOD personnel to perform such functions. Part D: Defense Supplies Security and Control - Directs the Secretary to carry out a study to determine the effectiveness of DOD procedures for ensuring security and control of supplies at DOD depots. Directs the Secretary, no later than 18 months after the enactment of this Act, to report to the defense committees on the results of the study, and to transmit a copy of such report to the Comptroller General. Directs the Comptroller General, within 90 days, to review the report and report to the defense committees any findings and recommendations on procedures for ensuring the security and control of such supplies. Directs the Secretary to: (1) conduct a cost-benefit analysis of the practice of selling surplus DOD munitions to the public; and (2) report to the defense committees, within 180 days after the enactment of this Act, describing and discussing each such practice. Directs the Secretary to: (1) develop improved methods of the identification and accounting for individual items of DOD supplies that are susceptible to pilferage; and (2) submit to the defense committees, no later than one year after the enactment of this Act, a report containing a description and discussion of each such method. Directs the Secretary to: (1) prepare a plan for the modernization of supply facilities and supply distribution procedures of each of the military departments and defense agencies; and (2) transmit a copy of such plan to the defense committees within one year after the enactment of this Act. Directs the Secretary, no later than February 1 annually, to submit to the defense committees a report on security and control of DOD supplies for each of the three fiscal years following the fiscal year in which this provision is enacted. Outlines information to be included in such report, including a summary of inventory program plans, a discussion of deficiencies in security and control of DOD supplies in the preceding fiscal year, and available budget authority in order to implement improvements in the security and control of such DOD supplies. Directs the Secretary to require an investigation of each discrepancy in an accounting for supplies of DOD involving an amount exceeding an amount as determined by the Secretary. Directs the Secretary to require that the job functions of supply ordering and supply receiving be performed by different individuals and offices. Directs the Secretary to ensure that: (1) DOD and armed forces personnel assigned to manage DOD supplies are skilled in the management of such supplies; and (2) no DOD employee or armed force member is assigned to perform such function for disciplinary reasons. Directs the Secretary to omit information from certain fiscal years in such report because of inadequate records. Expresses the findings of the Congress that: (1) the use of undercover investigative techniques by DOD employees enhances the ability of DOD to detect and investigate theft of Government property from the DOD supply system; and (2) the Secretary is urged to continue such undercover investigations. Directs the Secretary to establish and maintain a centralized computer system for recording and organizing information on the loss of DOD supplies. Directs the Secretary to report the theft or other loss of any ammunition, destructive device, or explosive material from the stocks of DOD to the Secretary of the Treasury within 24 hours after its discovery. Title IV: Military Personnel Authorizations - Part A: Active Forces - Authorizes the end strengths for active-duty personnel of the armed forces as of September 30, 1989. Provides for reductions in FY 1990 in the end strength of active-duty officers in the officer corps and in the number of Air Force colonels. Part B: Reserve Forces - Authorizes the end strengths for Selected Reserve personnel as of September 30, 1989. Authorizes the end strength for reserves on active-duty in support of the reserves for the same period. Increases the number of members in certain grades authorized to be on active-duty in support of the reserves. Part C: Military Training - Authorizes the average military training student loads for the armed forces, the Reserves, and the National Guard for FY 1989, requiring such student loads to be adjusted consistent with end strengths authorized for military personnel in general. Part D: Civilian Personnel - Authorizes end strengths for civilian personnel of DOD as of September 30, 1989. Outlines administrative provisions relating to the determination of such civilian personnel ceilings. Title V: Military Personnel Policy - Requires information furnished to military personnel selection boards to include information relating to the need for either a minimum number or maximum number of officers with particular skills within a competitive category. Prohibits such information from being modified, withdrawn, or supplemented after the board submits its report to the Secretary of the military department concerned, except in limited circumstances. Revises provisions concerning actions to be taken by the Secretary after review of reports submitted by such selection boards. Limits the authority of the Secretary to delegate the authority delegated to the Secretary by the President to approve or disapprove the report of a selection board. Amends the Military Family Act of 1985 to expand the preferenced hiring of qualified spouses of military personnel to include hiring for any GS-level positions. (Currently, such preference is limited to levels above the GS-1 level.) Reduces from 90 days to 30 days the time that must elapse after the Secretary submits a manpower estimate to the defense committees before the Secretary may approve the full-scale engineering development of a major defense acquisition program. Waives such required period during time of war or national emergency declared by the Congress or the President. Reduces such period to ten days if such estimate submitted to the Secretary with respect to such program indicates that no increase in military or civilian end strength will be required. Title VI: Compensation and Other Personnel Benefits - Part A: Pay and Allowances - Waives the automatic adjustment to military pay for FY 1989 in conformity with the GS-level adjustment applicable to Federal employees, instead authorizing an increase of 4.3 percent in the rate of basic pay, basic allowance for quarters, and basic allowance for subsistence. Increases cadet and midshipman pay for FY 1989. Prescribes the weight allowances (for the transportation of household goods) authorized for members of the armed forces (and their dependents) according to a table which increases such allowance with each military grade increase. Part B: Other Personnel Benefits - Authorizes the payment of a continuation bonus to an aviation officer who executes a written agreement to remain on active duty in aviation service for at least one year. Limits the maximum annual bonus to be so paid, and limits to eight years the length of such an agreement. Outlines administrative provisions relating to such bonus payment, including bonus prorating, officer applicability, and refund procedures in case of default by the officer concerned. Prohibits new agreements under current Federal special pay provisions for aviation career officers. Limits the total amount of bonus pay obligations that may be made by the Secretary of the Air Force during FY 1989 as the result of such agreements. Terminates the authority of the Secretary of a military department or the Secretary of Transportation to enter into such an agreement as of September 30, 1989. Directs the Secretary of Defense, no later than December 1, 1988, to submit to the defense committees a comprehensive report on the retention of aviators in the armed forces. Authorizes the payment of variable special pay for medical officers within certain pay grades who have at least eight years of creditable service according to specified rates which vary depending on the length of such service (such special variable pay decreasing as the length of service increases). Authorizes the payment of additional special pay for an officer with at least eight years creditable service for any 12-month period that the officer is entitled to additional special pay due to having achieved the grade of 0-6 or above while serving in a medical officer capacity. Specifies the rates at which such higher-grade officers are to receive such additional special pay, such rate increasing as the length of service increases. Limits the total compensation to be paid to such officers to the total compensation paid to comparable physicians in private practice, as determined by the Secretary. Directs the Secretary, no later than November 15, 1988, to report to the defense committees describing the manner in which such additional pay authority is to be used. Directs the Secretary, no later than December 1, 1988, to report to the defense committees with: (1) the Secretary's recommendation for legislation necessary to attract and retain needed health-care professionals; and (2) the Secretary's assessment of the adequacy of the existing compensation system for such health-care professionals. Limits the total obligation for such additional payments in FY 1989. Terminates the authority to make such additional payments if such reports are not received in a timely manner. Authorizes the payment of special pay, at an annual rate not to exceed $10,000, for officers of the Selected Reserve who are qualified in a specialty designated by regulations as a critically short wartime specialty and who execute a written agreement to serve in the Selected Reserve for no less than one year nor more than three years beginning on the date the officer accepts such special pay. Requires an appropriate refund when such officer fails to complete such additional duty. Terminates the authority to enter into such agreements as of September 30, 1990. Provides that such pay authority shall be used only for the purpose of conducting a pilot test program to determine its effect on the retention of officers who are qualified in critically short wartime specialties. Limits the total amount to be obligated for such pay authority for FY 1989. Directs the Secretary, no later than September 1, 1988, to report to the defense committees a description of the manner in which such pilot test program is to be structured. Limits to the grade in which a member of the armed forces retired the computation of retired pay in the case of a member who, after initially becoming eligible for retired pay, is reduced in grade pursuant to a sentence of a court-martial. Authorizes the Secretary of the military department concerned to pay a specified monthly annuity to any unremarried surviving spouse of a member of the armed forces who: (1) died before November 1, 1953; and (2) was entitled to retired or retainer pay on his or her date of death. Requires such annuity to be reduced by other survivors' benefits to which such surviving spouse is entitled. Directs such annuity to be increased whenever military retired or retainer pay is increased. Entitles military personnel assigned on temporary duty overseas to travel and transportation allowances incident to personal emergencies. Adds to the definition of a military "dependent" for travel purposes of military personnel any child for whom care and support is provided by the member pursuant to an order of custody issued by a court of competent jurisdiction. Revises provisions relating to a civilian clothing allowance for members of the armed forces to allow such allowance only for officers who are required to wear such clothing as part of their regular duties. Permits (rather than requires) such clothing allowance to be paid. Changes from mandatory to discretionary the payment of a travel and transportation allowance incident to the voluntary extension of an overseas tour of duty. Part C: Health Care Provisions - Extends through 1991 the authority for the use by the armed forces of public health service hospitals, as authorized under the Department of Defense Authorization Act, 1984. Repeals a specified provision of the National Defense Authorization Act for Fiscal Years 1988 and 1989 which requires a specified percentage of the growth in the number of Navy officers for such fiscal years to be allotted to Navy officers employed in certain health professions. Title VII: Department of Defense Organization and Management - Increases from five to ten percent the number of waivers (from the requirement of either education in joint duty specialties or a tour of joint duty) authorized to be granted each year by the Secretary of Defense for assignments to the joint duty specialty. Requires, for critical joint duty assignments, that not less than 80 percent of the positions so designated by the Secretary shall be held at all times by officers who have the joint specialty. Reduces the required length of a joint duty assignment: (1) in the case of general and flag officers from three to two years; and (2) in the case of all other officers from three and one-half years to three years. Authorizes the Secretary to decrease such required tour in the case of an officer who has a military occupational specialty designated as critical. Prohibits the Secretary, in any case, from prescribing the length of a joint duty assignment to be less than two years. Adds to the list of assignments which will be considered full tours of joint duty the following: (1) a joint duty assignment outside of the United States for which the normal accompanied-by-dependents tour of duty is at least two years in length, if the officer serves in the assignment for at least the accompanied-by-dependents tour length; or (2) a joint duty assignment during which the officer is selected for promotion to the grade of brigadier general or real admiral (lower half), if the officer served at least two years in such assignment. Revises provisions concerning the determination of cumulative credit for purposes of the required length of joint duty. Authorizes the Secretary to accord constructive credit in the case of an officer who, for reasons of military necessity, is reassigned from a joint duty assignment within 60 days of meeting the tour length criteria, allowing an amount of constructive credit in the amount otherwise necessary to meet the required length, but in no case more than 60 days. Modifies the definition of "joint duty assignment" to allow the Secretary to include as such an assignment, after consultation with the Chairman of the Joint Chiefs of Staff, not more than 250 assignments which the Secretary designates as assignments that provide significant experience in joint matters. Provides as an exception to the normal requirement of joint duty tour of duty before promotion to general or flag officer the case of a Navy officer designated as a qualified nuclear propulsion officer, who may be promoted to rear admiral (lower half) without the required tour of joint duty. Provides a further exception to such requirement in the case of an officer who began a joint duty assignment before January 1, 1987, and served a period of sufficient duration (at least 12 months) in such position to have been considered a full tour of duty under regulations in effect at such time. Amends the Goldwater-Nichols Department of Defense Reorganization Act of 1986 to make joint-duty-waiver provisions under such Act consistent with the above changes. Directs the Secretary, after consultation with the Chairman of the Joint Chiefs of Staff, to submit to the defense committees a report on joint officer management policies. Requires such report to be submitted no later than February 1, 1990. Authorizes the President to defer until October 1, 1989, the retirement of the officer serving as Chairman of the Joint Chiefs of Staff for the term beginning October 1, 1987. Adds U.S. elements of binational or multinational military commands to the forces to which the Secretary of a military department is required to assign forces under his or her jurisdiction. Adds to the responsibility of the commander of the special operations command the submission to the Secretary of Defense of program recommendations and budget proposals for special operations forces. Prohibits funds made available to DOD for FY 1989 from being used for: (1) establishing or operating an Office of the Assistant Secretary of Defense for Intelligence; or (2) paying the salary of such an Assistant Secretary. Requires the advice and consent of the Senate for presidential appointments of General Counsels of the military departments. Requires various information relating to defense capabilities assessments to be included in an annual report from the Secretary to the Congress on the defense capabilities and programs of the armed forces of the United States and its allies as compared with those of their potential adversaries. Requires each such report to be transmitted to the Congress at the same time that the President submits the budget to the Congress. Title VIII: Acquisition Policy and Management - Directs the Secretary to develop each year, in conjunction with the five-year defense program submitted to the Congress in such year, a plan that ensures that the following policies of DOD are structured to meet the long-term needs of DOD for industrial resources and technology innovation: (1) policies relating to progress payments or other financing of contractors by DOD; (2) policies relating to the return on contractor investment under DOD contracts; and (3) policies relating to the division of contract risk between DOD and a contractor. Directs the Secretary to submit annually to the Congress a report which contains the above plan and an explanation of the manner in which the policies referred to above enhance the ability of DOD to obtain industrial resources and encourage technology innovation. Requires each such report to be submitted at the same time that the five-year defense program is submitted to the Congress. Directs the Secretary to prescribe guidelines that provide that a fixed-price contract should be awarded in the case of a development program only when: (1) the level of program risk permits realistic pricing; and (2) the use of a fixed-price contract permits an equitable allocation or program risk between the United States and the contractor. Requires the Under Secretary of Defense for Acquisition to determine that such criteria have been met before awarding a contractor a fixed-price contract in excess of $10,000,000. Limits the power of the Under Secretary to delegate such authority. Declares that a defense contractor, when certain proposals (relating to the future availability and competition for items of procurement) are required to be submitted by a contractor as part of such contractor's proposal, shall not be required to provide for future competition between identical items for an item developed exclusively at private expense by a contractor or subcontractor, unless the head of the defense agency determines that: (1) the original supplier of such item will be unable to satisfy program schedule or delivery requirements; or (2) the price of such item in economic order quantities to the Government will not be reasonable based on an analysis of cost and performance comparisons with competing substitutes. Outlines further administrative provisions relating to such proposals. Expresses congressional findings for the essential need of a strong defense industrial base for the enhancement of U.S. national security. Directs the Under Secretary of Defense for Acquisition to: (1) provide overall policy guidance and direction to the military departments and the defense agencies on matters relating to the maintenance, expansion, and readiness of the defense industrial base of the United States; (2) analyze the capabilities of the defense industrial base to fulfill requirements of the national defense strategy in time of peace or in time of war or national emergency; (3) develop and direct the implementation of plans and programs that promote the ability of the defense industrial base to meet certain production and readiness requirements; and (4) identify and plan for the procurement of items of supply that are suitable substitutes for military standard items of supply which are anticipated to be unavailable from existing sources in time of war or national emergency and which are commercially available from domestic sources. Directs the Under Secretary to require that each defense acquisition program designated by the Under Secretary include a requirement for an analysis of the capability of the defense industrial base to develop, produce, maintain, and support the system to be acquired under such program. Outlines factors to be considered as part of such analysis. Provides that the Under Secretary shall be responsible for compiling and analyzing the data obtained from such analysis to ensure that: (1) the capabilities of the defense industrial base to meet program requirements has been assessed by the military department or defense agency carrying out such program; and (2) the capabilities of the defense industrial base to meet the aggregate requirements for all such programs have been assessed by the Office of the Secretary of Defense. Directs the Under Secretary to establish and implement acquisition policies which provide for: (1) expanded use of commercial manufacturing processes rather than military standard requirements; (2) elimination of barriers to, and facilitation of, the integrated manufacture of commercial items and items being produced under defense contracts; and (3) encouragement of the military departments and defense agencies to identify commercial items that are suitable substitutes for military standard items incorporated into weapon systems or other items of equipment. Authorizes the Under Secretary to establish a defense production innovation center to be the principal office in DOD for the development of policies and plans regarding the conduct of programs for the improvement of the defense industrial base of the United States. Outlines action to be taken by the head of such center, the Defense Production Base Director, in regard to the improvement and enhancement of the defense industrial base of the United States. Provides that the Under Secretary, during FY 1989, shall require each military department to initiate at least one analysis of the capability of the defense industrial base to develop, produce, maintain, and support systems to be acquired under acquisition programs carried out by such department. Requires all such analyses to be completed no later than September 30, 1990. Directs the Under Secretary, no later than February 1, 1991, to report to the defense committees on such analyses. Directs the Secretary to consult with the Secretary of Commerce in the negotiation and renegotiation of memoranda of understanding between DOD and one or more foreign countries relating to defense trade, cooperation on defense research, or production of defense equipment. Directs the Secretary, no later than 30 days after any such memorandum is entered into, to report to the defense committees a description of the anticipated effects of the implementation of such memorandum on the defense industrial base of the United States. Authorizes the President to waive such requirement in the event of war or national emergency. Makes certain congressional findings with regard to DOD offset policy (the making of contracts with foreign firms where some or part of the work under such contract or investment under such contract must be performed by or invested in such foreign firm or foreign country). Directs the Secretary, acting with and through other designated officials, to establish a comprehensive policy with respect to contractual offset arrangements. Prohibits any U.S. official from entering into a memorandum of understanding or other agreement with a foreign government that would require the transfer of U.S. defense technology to a foreign country or foreign firm in connection with a contract that is subject to an offset arrangement, if the implementation of such memorandum or arrangement would significantly and adversely affect the defense industrial base of the United States and would result in a substantial financial loss to a U.S. firm. Waives such prohibition if such waiver will result in strengthening the national security of the United States and is so certified to the Congress by the Under Secretary. Requires any U.S. firm entering into a contract with a foreign firm subject to an offset arrangement exceeding $50,000,000 in value to notify the Secretary of the proposed sale. Directs the Secretary to enter into negotiations with foreign countries that have a policy of requiring an offset arrangement in connection with the purchase of defense equipment or supplies from the United States, pursuing an agreement to: (1) limit the effect of such arrangements on the defense industrial base of each such country; and (2) prohibit such offset arrangements after a specified date. Directs the Secretary to attempt to achieve, within two years after the enactment of this Act, an agreement limiting the adverse effects of such arrangements, and, within four years after the enactment of this Act, a final agreement prohibiting such arrangements. Directs the Secretary to report to the Congress at least once each year for four years on the progress of such negotiations. Directs the Secretary, no later than November 15, 1988, to report to the defense committees on contractual offset arrangements required of U.S. firms for the supply of weapon systems to foreign countries or foreign firms. Directs the Secretary, no later than March 15, 1989, to report to the defense committees a discussion of appropriate actions to be taken by the United States with respect to purchases from U.S. firms by a foreign country when that country or firm requires an offset arrangement in favor of such country. Requires that certain Federal regulations concerning the allowability of contractor costs shall provide that foreign selling costs shall be allowed to the extent that such costs are: (1) allocable, reasonable, and not otherwise unallowable; and (2) within dollar ceilings established in advance agreements negotiated between the Secretary and the contractor or subcontractor during the fiscal year covered by such arrangement. Provides that certain limitations on the procurement of defense items outside the United States shall not apply if: (1) the cost is at least ten percent less than the cost of procuring such item within the United States; and (2) the Secretary determines that the government of the country in which such item is produced does not impose limitations on the procurement for the armed forces of that country of items or articles grown, reprocessed, reused, or produced in the United States that are more restrictive than similar limitations imposed by the United States on the procurement of items from such country for the U.S. armed forces. Adds to the purposes of the procurement technical assistance cooperative agreement program the encouragement of eligible entities to furnish to business entities procurement technical assistance that facilitates the exporting of defense-related products and services by such business entities. Revises provisions to limit the value of the assistance furnished by the Secretary to any eligible entity to carry out a program of procurement technical assistance under a cooperative agreement, allowing one amount for a program operating on a State-wide basis and a lesser amount in the case of a program operating on less than a State-wide basis. Extends through FY 1989 the authority for procurement of technical assistance for Indian tribal organizations. Directs the Under Secretary, no later than December 1, 1988, to report to the Congress on the current programs regarding simplification of procedures governing the acquisition process of DOD and an assessment of the results of those programs. Requires policies prescribed by the Under Secretary to provide for coordination of the annual plans developed by different elements of DOD for the conduct of oversight and audit functions within each contracting activity. Directs the Secretary to establish an advisory panel to study and make recommendations to the Secretary on ways to enhance cooperation between DOD and industry regarding matters of mutual interest, including: (1) procedures governing the debarment and suspension of contractors from doing business with DOD; (2) the role of self-governing oversight programs established by defense contractors; (3) expanded use of alternative dispute resolution procedures; and (4) the desirability of establishing a permanent advisory panel on government-industry relations. Directs the Secretary to submit a copy of the panel's report, together with the Secretary's comments and recommendations, to the Congress. Expresses the sense of the Congress that the evaluation by DOD of professional and technical services contract proposals should be made on the basis of a 40-hour work week standard. Directs the Secretary, no later than April 1, 1989, to report to the defense committees on the extent to which institutions of higher education offer and conduct educational programs and courses on Government contracting and acquisition management. Directs the Secretary to complete a certain study, initiated by DOD in 1985, concerning the supply of minority and women scientists, engineers, and technologists needed by defense industries and DOD to fulfill the national defense mission. Directs the Secretary to prescribe by regulation the authority and responsibilities of DOD acquisition program managers and contracting officers. Establishes within DOD an office for the supervision and coordination of product evaluation activities within DOD. Authorizes the Secretary of each military department and the head of each defense agency to establish and conduct a product evaluation activity. Requires the producer of the product evaluated to pay one-half of the cost of conducting such evaluation. Directs the Under Secretary, no later than March 15 annually, to report to the defense committees a plan for developing the 20 technologies considered by the Secretary and the Secretary of Energy to be the technologies most essential to develop in order to ensure the long-term qualitative superiority of U.S. weapon systems. Requires both product and process technologies to be considered in selecting the technologies to be included in such plan. Directs the Inspector General of DOD to: (1) conduct periodic audits of contractual actions by the defense agencies, DOD field activities, and the military departments; and (2) after each audit, report to the Congress on the management of undefined contractual obligations by the head of an agency. Deletes the requirement of the use of a competitive prototype program strategy in the development of a subsystem of a major weapons system (requiring such strategy only in the development of the major weapons system itself). Amends the Small Business Act to provide that a subcontracting plan negotiated by a Federal agency and a contractor for specified purposes shall apply to the contractor or, if the plan so provides, only to the organizational components of the contractor that perform the contract. Revises provisions concerning the necessity of a Small Business Administration certificate of competency in the case of a small purchase defense contract (a contract for an amount which does not exceed $25,000). Provides that the Secretary of a military department procuring a spare or repair part that is critical to the operation of an aircraft shall require the contractor to supply a part that meets applicable qualification and quality requirements. Defines such qualifications. Title IX: General Provisions - Part A: Financial and Budget Matters - Authorizes the Secretary, as deemed necessary in the national interest, to transfer amounts of authorizations made available to DOD in titles I through III for any fiscal year between any such authorizations for that fiscal year. Limits the total amount that may be so transferred. Directs the Secretary to promptly notify the Congress of any such transfers made. Amends the National Defense Authorization Act for Fiscal Years 1988 and 1989 to increase the amount authorized to be transferred between authorizations for that fiscal year in that Act or any prior defense authorization Act. Requires the Secretary, in determining the purpose for which such transferred amounts will be used, to: (1) ensure that an appropriate portion is used for the payment of FY 1988 depot maintenance activities and civilian personnel salaries; (2) give special consideration and priority to civilian personnel of DOD, readiness, and more efficient acquisition processes; and (3) provide funds for other high priority readiness items. Provides authority for the obligation and expenditure of appropriations exceeding authorizations for FY 1988 for programs, projects, and activities of DOD, with specified exceptions. Prohibits Army procurement funds from being used for the procurement of any air defense system submitted to the Army for evaluation in response to an Army request for a specified system unless the Secretary certifies to the Congress that the system has met or exceeded full system requirements. Prohibits funds appropriated to the Navy for FY 1988 or 1989 from being obligated or expended for procurement of certain A-6 aircraft. Earmarks specified funds for procurement or modifications of M1 tanks. Applies limitations and requirements applicable under the Department of Defense Authorization Act, 1988 to appropriations exceeding authorizations obligated under this Act. Outlines the transfer authority for such funds. Repeals specified provisions of the Department of Defense Appropriations Act, 1988 which: (1) authorized the Navy to enter into agreements to construct and charter up to six tankers to replace a certain class of tankers currently in use; and (2) prohibited the use of funds to enter into any contract for the overhaul, repair, or maintenance of any naval vessel on the west coast of the United States which includes interport differential charges as an evaluation factor for awarding a contract. Prohibits an unauthorized defense appropriation from being obligated unless, and only to the extent that, the obligation of such appropriation is specifically authorized by law after the enactment of such appropriation. Directs the Secretary to determine, upon the enactment of a law making a defense appropriation, with respect to each defense appropriation provided in that law: (1) whether any part of such appropriation provides funds for an unauthorized program; and (2) if so, the total amount of funds provided for all such unauthorized programs. Directs the Secretary, no later than 30 days after the enactment of such an appropriation or authorization law, to submit to the Congress a report identifying: (1) any unauthorized program; and (2) the amount of appropriations provided for such program. Directs the Comptroller General to promptly review each such report, and, if deemed necessary, report to the Congress that the law provides appropriations for an authorized program or that a program is not unauthorized. Provides a contingent general continuing authorization for DOD operations if there has not been a law specifically authorizing such appropriations as of the first day of a fiscal year. Provides the rate at which such operating funds may be obligated in the case of a general continuing authority. Terminates such general operating authority upon the enactment of a law specifically authorizing appropriations for that fiscal year for such purpose. States that such provisions do not apply to permanent appropriations, trust funds, and other similar accounts administered by DOD as authorized by law. States that the provisions of the Impoundment Control Act of 1974 do not apply to an unauthorized defense appropriation. Provides that funds may not be appropriated for any fiscal year for military functions of DOD for any of the following purposes unless such funds are specifically authorized by a law other than an appropriation law: (1) procurement; (2) research, development, test, or evaluation; (3) operation and maintenance; (4) working capital funds; and (5) military construction. Part B: Miscellaneous Matters - Expresses certain congressional findings regarding confidence-building measures designed to increase openness and predictability of military activities in Europe. Expresses the sense of the Congress that the President should give high priority to developing stabilizing and verifiable proposals for expanding the regime of confidence-building measures (with regard to the verification of military activities in Europe) in light of a specified international conference and talks on such subject. Amends the Department of Defense Authorization Act, 1986 to add specific information (relating to Soviet compliance with, or violations of, applicable arms control agreements) in a report due annually from the President to the Congress under such Act. Directs the President, no later than December 1 annually, to submit to the Congress a report containing a comprehensive discussion and analysis of the arms control strategy of the United States. Outlines specified information to be included in such report, including the current military balance between the United States and the Soviet Union, as well as the military balance between the NATO countries and the Warsaw Pact countries. Requires the President, in making such report, to explain the methodology used in determining the military balances. Increases the amount of liability that the United States may accrue in a fiscal year for the acquisition of supplies from NATO-member countries. Authorizes the Secretary to waive certain sales charges (required as arms sales charges under the Arms Export Control Act) made by DOD to the Maintenance and Supply Agency of NATO in support of certain weapon system partnership agreements. Repeals a specified provision of the Department of Defense Appropriations Act, 1988 which directs the Secretary to take such action as is necessary to convert current steam-generating plants at U.S. defense facilities to coal-burning facilities. Increases to $100,000 the maximum amount of an advance payment (before final settlement of a claim) that may be made for any person who was injured or killed, or whose property was damaged or lost, under circumstances for which allowance of a claim is authorized by law. Authorizes the Secretary of a military department to delegate the authority to make such payment in an amount not to exceed $25,000. Revises annuity computation provisions for judges of the U.S. Court of Military Appeals who complete their terms of service. Prohibits an annuity reduction for judges who complete their appointed terms. Provides an annuity computation for a former judge of the U.S. Court of Military Appeals who is retiring under immediate retirement provisions, such computation taking into account all service as a Member of the Congress, a congressional employee, and a judge. Authorizes the Secretary of the military department concerned to accept from any person voluntary attorney, paralegal, clerical, or related services for members of the armed forces. Repeals a specified provision of the Department of Defense Appropriations Act, 1988 which prohibits the use of funds for the purchase of alcoholic beverages for resale on U.S. military installations unless such alcoholic beverages were procured in the same State in which the military installation is located. Provides that resulting increases in revenue shall be used for improvements in morale, welfare, and recreational programs for members of the armed forces. Authorizes the Secretary of the Navy to lease aircraft for Fleet Electronic Warfare Support Group activities if the cost of such leasing is less than the cost of operating and maintaining the same number of existing Navy aircraft. Makes certain congressional findings relating to the special operations airlift. Expresses the sense of the Congress that: (1) a plan (relating to the operation of such airlift previously submitted to the Congress by the Secretary of Defense) is a sound proposal to redress the serious deficiency in airlift capacity for special operations forces; (2) the Secretary should formulate a five-year defense program for FY 1990 through 1994 that includes sufficient funds for the procurement or modification of airlift aircraft; and (3) the President should submit budgets to the Congress for FY 1990 through 1992 that include sufficient funds for the procurement or modification of such aircraft used for such airlift. Directs the Secretary to: (1) close all military installations recommended for closure by the Commission on Base Realignment and Closure; (2) realign all military installations recommended for realignment by the Commission; and (3) initiate all such closures and realignments no later than September 30, 1991, and complete all such closures and realignments no later than September 30, 1995. Outlines conditions required to be met before taking such action (prior congressional notification and recommendations for closure by the Commission). Terminates the authority of the Secretary to carry out any closures or realignments on October 1, 1995. Provides for reports and statements required of the Commission to the Secretary and the Congress in carrying out their recommendation responsibilities. Directs the Secretary to take all necessary action to implement such recommended closures or realignments, including the provision of: (1) economic adjustment assistance to any community located near a military installation being closed or realigned; and (2) community planning assistance to any community located near a military installation to which functions are to be transferred as a result of such closure or realignment. Authorizes the Secretary to carry out activities for the purpose of environmental restoration of such affected areas. Directs the Secretary, before any sale or exchange of real property or a facility is made due to such base closure or realignment, to inform other instrumentalities of the Federal Government of the availability of such property and to transfer such property for fair market value to any such instrumentality offering to purchase such property. Outlines further action to be taken by the Secretary if there are no instrumentalities of the Government desiring to purchase such property at fair market value, including selling such property to another Government entity at less than fair market value. Directs the Secretary to provide, as part of such a conveyance under the above provisions, that title shall revert to the United States if such property or facility is used for any purpose other than the one for which it was conveyed. Directs the Secretary to transmit to the Congress, as part of each annual request for authorization of appropriations: (1) a schedule of the closure or realignment actions proposed and an estimate of the total resulting cost savings; and (2) a description of the military installations to which functions are to be transferred as the result of such closures or realignments, together with the Secretary's assessment of the environmental consequences of such transfers. Directs the Secretary to conduct a study of actions planned with respect to military installations outside the United States which may affect the recommendations of the Commission, and to report to the appropriate congressional committees, no later than September 15, 1988, on the findings and conclusions of such study. Directs the Secretary to notify the appropriate congressional committees when: (1) a decision is made to carry out a construction project for a military installation; and (2) the cost of the project will be greater than the maximum amount for a minor construction project. Establishes in the Treasury the Department of Defense Base Closure Account. Authorizes appropriations and provides for the deposit of funds for such Account. Directs the Secretary, no later than 60 days after the end of each fiscal year in which the Secretary carries out activities under the above provisions, to report to the appropriate congressional committees on the amount and nature of deposits into, and the expenditures from, the Account during such fiscal year. Directs the Secretary, no later than 60 days after the termination of his or her authority to carry out an alignment or closure, to report to the appropriate congressional committees an accounting of all funds deposited into, expended from, and remaining in, such Account.

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• Passed Senate amended

  summary · EN · 27 May 1988

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• Introduced in Senate

  summary · EN · 12 May 1988

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