(Conference report filed in House, H. Rept. 100-446)

National Defense Authorization Act for Fiscal Years 1988 and 1989 - Division A: Department of Defense Authorizations -Title I: Procurement - Part A: Funding Authorizations - Authorizes appropriations to the Army, the Navy and Marine Corps, and the Air Force for FY 1988 and 1989 for aircraft, missiles, weapons and tracked combat vehicles, ammunition, shipbuilding and conversion, and for other procurement. Authorizes the transfer of prior-year unobligated funds for the above purposes. Authorizes appropriations to the defense agencies for FY 1988.

Authorizes appropriations to the reserve components of the armed forces for FY 1988 for the procurement of aircraft, vehicles, communications equipment, and other miscellaneous equipment for such forces, such amounts to be in addition to any other amounts authorized to be appropriated by this or any other Act.

Earmarks specified funds for the: (1) Army Mobile Subscriber Equipment program; (2) Army Tactical Missile System; (3) Trident II Missile; and (4) T-45 Training System.

Authorizes appropriations for FY 1988 for the destruction of lethal chemical agents and munitions in accordance with the Department of Defense Authorization Act, 1986.

Authorizes the Secretaries of the military departments to enter into certain multiyear defense procurement contracts, under specified conditions.

Extends through FY 1989 certain authority provided to the Secretary of Defense (the Secretary) in connection with the NATO Airborne Warning and Control System (AWACS).

Part B: Program Requirements, Restrictions, and Limitations - Sets forth certain requirements, restrictions, and/or limitations with respect to specified Army, Navy, and Air Force programs.

Part C: Miscellaneous Provisions - Directs the Secretary to establish an initiative for maintaining cost discipline, contractor performance discipline, and management discipline within the Advanced Technology Bomber program. Requires specified reports from the Secretary to the Senate and House Armed Services Committees (the defense committees) concerning such program.

Limits funding and requires certain reports from the Secretary to the Congress concerning the procurement and operational difficulties encountered with the Bradley Fighting Vehicle.

Prohibits funds appropriated to the Department of Defense (DOD) from being used for the procurement of chemical weapons antidote contained in automatic injectors determined to be critical under a specified DOD planning program.

Directs the Secretary, by January 1, 1988, to issue an environmental impact statement concerning the chemical stockpile demilitarization program. Sets forth certain other requirements concerning the program.

Prohibits the withdrawal of U.S. chemical munitions stored in Europe unless such munitions are replaced simultaneously with binary chemical munitions stationed on the soil of at least one European member of the North Atlantic Treaty Organization (NATO).

Requires specified reports from the Secretary to the defense committees concerning: (1) selected acquisition reports on specified defense acquisition programs; and (2) updating the 1986 Strategic Bomber Force study.

Authorizes the Secretary of the Army to procure, and provides funding for, a specified number of trucks under the Heavy Expanded Mobility Tactical Truck program.

Title II: Research, Development, Test, and Evaluation - Part A: Authorizations and Program Limitations - Authorizes appropriations for FY 1988 and 1989 for the armed forces for research, development, test, and evaluation. Sets forth specified funding limitations for certain programs of: (1) the Army; (2) the Navy; (3) the Air Force; (4) the defense agencies; (5) technology base programs for FY 1988; and (6) cooperative projects with major non-NATO allies.

Prohibits the Secretary, until October 1, 1988, or until the President certifies to the Congress that the Soviet Union has done so, from conducting a test of the F-15 antisatellite weapon against objects in space.

Part B: Program Policies - Establishes an Advanced Submarine Technology Program to be carried out by the Secretary of the Navy, and requires certain reports from the Secretary of Defense concerning such program. Prohibits funding for the Advanced Tactical Fighter aircraft until the Secretary completes certain reporting requirements concerning such aircraft. Limits funds and outlines other requirements concerning the electronic warfare programs, including congressional reporting requirements. Earmarks specified funds for each branch of the armed forces for the conventional defense initiative.

Outlines a balanced technology initiative program (a program aimed at enhancing conventional defense capabilities), authorizes appropriations for such program, and explains such programs's relationship to the conventional defense initiative as enumerated under a specified Act.

Earmarks specified funds for the Army Tactical Missile system, for the Trident II Missile, and for the T-45 training system.

Earmarks specified funds for antitactical ballistic missile systems and extended air defense programs under the Strategic Defense Initiative (SDI).

Earmarks specified FY 1988 and 1989 funds for research and development relating to superconductivity at high critical temperatures. Sets forth administrative provisions relating to research and development within each branch of the armed forces.

Earmarks specified funds for FY 1988 and 1989 for the purchase of high technology manufacturing equipment and the installation of such equipment in a center of training in the use of such equipment. Sets forth certain funding limitations with respect to such equipment purchase and training program.

Expresses the sense of the Congress concerning funding for certain SDI missile programs.

Part C: Strategic Defense Initiative - Subpart 1: SDI Funding and Program Limitations and Requirements - Specifies the FY 1988 funding level for the SDI program. Prohibits certain contracts with foreign entities in connection with the SDI program. Limits the transfer of SDI technology to the Soviet Union, unless certain conditions are met. Prohibits the direct firing of any SDI weapons except by affirmative human decision at an appropriate level of authority.

Places specified limitations during FY 1988 on the development and testing of anti-ballistic missile systems and components. Prohibits the deployment of such systems unless specifically authorized by law.

Establishes a Federally Funded Research and Development Center (FFRDC) for research support of the SDI program. Authorizes the use of DOD-SDI funds for the awarding of a contract to operate a FFRDC to support SDI, as long as the Secretary has taken specified action ensuring the competitiveness of such contract award, and has issued directives prohibiting or requiring specified action in connection with such FFRDC. Prohibits any funds from being available to such FFRDC five years after the awarding of its initial contract.

Subpart 2: Report Requirements - Directs the Secretary, no later than March 15 of 1988 and 1989, to report to the Congress on SDI programs. Repeals a specified provision of the National Defense Authorization Act for Fiscal Year 1985 relating to such program reporting requirements. Directs the Secretary, no later than six months after the enactment of this Act, to report to the defense committees on SDI development plans and costs.

Directs the Secretary, no later than March 1, 1988, to report to the Congress on how the absence of limitations on strategic defense systems in force under the 1972 ABM Treaty would affect strategic offensive and defensive programs of the United States.

Part D: B-1B Bomber Program - Earmarks specified FY 1988 funds for the B-1B bomber program. Directs the Secretary, during FY 1988 and 1989, to develop and conduct a comprehensive program for the systematic testing of the defense avionics system of the B-1B aircraft, and to report to the defense committees, no later than 30 days after the enactment of this Act, a plan for such testing during FY 1988 and 1989. Requires bimonthly status reports concerning such program. Directs the Secretary to provide for an independent assessment of the capabilities of the B-1B aircraft to penetrate air defenses of potential enemies. Requires the Secretary to appoint a panel of experts to aid in such assessment, and requires various reports to the defense committees concerning such assessment. Provides funds for such assessment. Sets forth certain limitations on B-1B aircraft enhancement and modernization. Requires the Director of Operational Test and Evaluation within DOD to ensure the adequacy of the proposed test flight program for the B-1B aircraft.

Part E: Miscellaneous - Earmarks specified funds for cooperative medical research to be administered jointly by the Secretary of Defense and the Administrator of Veterans Affairs.

Authorizes the Secretary of the Air Force to enter into a specified contract for a modernization and expansion project at the Lincoln Laboratory complex at Hanscom Air Force Base, Massachusetts, outlining project cost limitations, duration, and funding.

Requires the Secretary of the Navy to evaluate the new high-speed naval patrol boat, and to report to the defense committees on such evaluation.

Repeals a specified provision of the National Defense Authorization Act for Fiscal Year 1987 earmarking specified funds for the Marine Corps Pegasus engine program.

Directs the Secretary, no later than March 1, 1988, to report to the defense committees on the planned military use of the NASA manned space station.

Places certain funding limitations on the Advanced Launch System (ALS).

Earmarks specified funds for space launch recovery, requiring a congressional notice-and-wait period before any transfer of funds for such purpose.

Authorizes the obligation of funds for studies and analyses of the nuclear warhead option of the Army Tactical System, limiting the obligation of such funds until the Secretary makes certain certifications and reports to the defense committees.

Directs the Secretary to carry out a competitive evaluation for a heavy truck system configuration with a palletized loading system.

Part F: Semiconductor Cooperative Research Program - Expresses the finding of the Congress that it is in the national economic and security interests of the United States for DOD to provide financial assistance to Sematech (a consortium of the U.S. semiconductor industry) for research and development activities in the field of semiconductor manufacturing technology. Directs the Secretary to make grants to Sematech for such purpose, in accordance with a specified memorandum of understanding entered into between Sematch and the Secretary requiring Sematech to work in cooperation with the Secretary and the Department of Energy, and requiring the Advisory Council on Federal Participation in Sematech to review the research activities of Sematech to take all necessary steps to ensure the expeditious transfer of technology developed and owned by Sematech to the private sector participants in Sematech research. Establishes the Advisory Council on Federal Participation in Sematech (the Council) to: (1) conduct an annual review of the activities of Sematech; and (2) submit to Sematech any recommendations for modifications of plans or the technological goals in the plan in the view of the Council. Outlines administrative provisions with respect to the Council. Directs the Comptroller General to review the annual reports of the independent auditor required by the Secretary in the memorandum of understanding, and to make comments to the defense committees concerning the accuracy and completeness of such reports, together with any additional comments as considered appropriate. Provides that any export of semiconductor manufacturing technology developed by Sematech under these provisions shall be subject to the Export Administration Act, and not to the Arms Export Control Act. Provides for the confidentiality of certain information concerning Sematech, as well as trade secrets developed by them.

Title III: Operation and Maintenance - Part A: Authorizations of Appropriations - Authorizes appropriations for FY 1988 for operation and maintenance for the armed forces, the defense agencies, the reserve and National Guard, the National Board for the Promotion of Rifle Practice, defense claims, the Court of Military Appeals, and for environmental restoration, defense. Authorizes appropriations for FY 1988 and 1989 for unbudgeted increases in fuel costs, and increases as the result of inflation.

Authorizes appropriations for FY 1988 for working capital funds for the armed forces and the defense agencies.

Places certain limitations on the use of operation and maintenance funds to purchase investment items.

Part B: Program Changes, Requirements, and Limitations - Requires the Secretary to ensure that U.S. wines are given equitable treatment when selling alcoholic beverage products in U.S. military installations located outside the United States. Requires the Secretary to establish uniform pricing policies for beer and wine products authorized to be sold on a foreign U.S. military installation.

Earmarks specified funds for Army depot maintenance functions. Prohibits the management of civilian personnel by end strengths. Eliminates the requirement that civilian end strengths be authorized by law. Requires a certain report from the Secretary to the Congress concerning the operation and support costs of major weapons systems. Directs the Secretary, no later than February 1, 1988, to report to the defense committees on efforts to measure defense readiness.

Authorizes the Secretary of the military department concerned to provide free shuttle bus service for military members and their families to military installations determined by such Secretary to be located in remote areas.

Authorizes the Secretary of the Army, under specified conditions, to operate the military education and training facility known as the United States Army School of the Americas.

Authorizes the Secretary of Defense to repair and maintain certain memorials and historic sites on the Island of Corregidor in the Republic of the Philippines.

Requires the Comptroller General to study and report to the Congress on allegations of censorship by military command of the DOD newspaper Stars and Stripes.

Prohibits the obligation or expenditure of funds for the overhaul, operation, maintenance, or deployment of the USS Andrew Jackson.

Part C: Humanitarian and Other Assistance - Extends through FY 1988 the authorization of appropriations for the provision of humanitarian assistance and the transportation of relief supplies to Afghan refugees. Outlines administrative details concerning the transportation of such supplies. Requires the Secretary to submit certain reports, in connection with the transportation of such supplies, to the defense and foreign relations committees of the Congress. Authorizes the Secretary to transport to any country, without charge, supplies which have been furnished by a nongovernmental source and which are intended for humanitarian assistance. Outlines specified conditions for such transfers, and requires certain reports.

Title IV: Personnel Authorizations for Fiscal Years 1988 and 1989 - Part A: Active Forces - Authorizes end strengths for active-duty personnel for FY 1988 and 1989. Authorizes an increase during FY 1988 in the total number of commissioned officers serving in the military departments as of the end of FY 1988, under specified conditions. Reduces certain amounts for military personnel based on prior-year reductions in the number of commissioned officers on active duty during FY 1987.

Part B: Reserve Forces - Authorizes end strengths for the Selected Reserve components of the armed forces for FY 1988 and 1989. Authorizes the Secretary to vary such end strengths by not more than four percent. Authorizes appropriate adjustment to such numbers under certain circumstances. Authorizes end strengths for FY 1988 and 1989 for reserve members serving on active duty in support of the reserves. Revises the number of reserve personnel in each military department authorized to be on active duty in support of the reserves for FY 1988.

Part C: Military Training Student Loads - Authorizes the average military training student loads for the armed forces, and Guard and reserve forces, for FY 1988 and 1989. Allows such student loads to be adjusted consistent with other personnel adjustments authorized under this Act.

Part D: Appropriations Limitation - Limits the total appropriations for military personnel for FY 1988.

Title V: Military Personnel - Extends through FY 1989 the authority to make temporary promotions of certain Navy lieutenants. Extends through FY 1989 the following: (1) certain reserve officer management programs; and (2) the authority under the Department of Defense Authorization Act for Fiscal Year 1987 for single parents to enlist in the reserves.

Authorizes the Commandant of the Judge Advocate General's School of the Army to confer the degree of master of laws in military law, under appropriate circumstances.

Provides a one-year delay (until the end of FY 1989) in the requirement that a certain minimum percentage of persons enlisted in the Air Force must be women.

Directs the Secretary of Transportation, within 60 days after the enactment of this Act, to submit to the Congress a plan to enable the Coast Guard to meet 95 percent of its wartime mobilization requirements by the end of FY 1998.

Authorizes a member of the armed forces to wear an item of religious apparel while in uniform, except when the Secretary of the military department concerned determines that: (1) the wearing of the item would interfere with the performance of military duties; or (2) the item is not neat and conservative. Authorizes such Secretary to prescribe regulations concerning the wearing of such items.

Provides that civilian technicians of the Army National Guard who are unable to complete required training under the Military Education Program for such technicians may not be denied promotions for failure to complete such training if the reason for such failure was lack of available training spaces. Directs the Comptroller General, no later than February 15, 1988, to report to the defense committees on the Military Education Program.

Removes the per-department ceilings on the number of cadets and midshipmen authorized to receive financial assistance (instead providing one ceiling for all military department participants combined).

Authorizes the President to make appointments in the Army, Navy, Air Force, and Marine Corps in the grades of lieutenant general, general, vice admiral, or admiral in excess of the number of appointments authorized to be made by law. Requires a corresponding reduction in the number of appointments allowed to be made in the other branches of the armed forces on a one-to-one basis with the President's appointments. Limits the number of officers authorized to be so appointed.

Authorizes an advancement to the highest active-duty grade held, for retired pay purposes, for certain members of the military departments whose active service plus service on the retired list totals 30 years.

Provides for mandatory testing for a member of the armed forces, before entry into the armed forces, for drug, chemical, and alcohol use and dependency. Directs the Secretary to implement regulations relating to such testing within 45 days after enactment of this Act.

Title VI: Compensation and Other Personnel Benefits - Part A: Pay and Allowances - Waives the automatic adjustment in military pay (in conformity with annual GS-level increases), authorizing instead a three percent increase in basic pay, basic allowance for quarters, and basic allowance for subsistence, as well as a three percent increase in cadet and midshipman pay, all effective as of January 1, 1988.

Authorizes the Comptroller General to review and report to the defense committees, by March 1, 1988, on the military housing allowance system and recommendations for changes in such system.

Part B: Travel and Transportation - Entitles a member of the armed forces assigned to a permanent overseas duty station to a civilian clothing allowance if such member is required to wear such clothing for all or a substantial portion of the time that such member is on duty.

Repeals a specified provision of the Department of Defense Authorization Act for Fiscal Year 1987 relating to the reimbursement for actual lodging expenses plus per diem for members entitled to travel allowances. Revises effective dates set forth in that Act and another specified Act in relation to the effective date of this Act.

Authorizes the payment of dislocation allowance in advance.

Authorizes the Secretary concerned to pay a transportation allowance to a member and his or her dependents if such member voluntarily agrees to extend his or her overseas tour of duty. Requires the Comptroller General to review implementation of such provision, and, no later than March 1, 1989, report to the defense committees concerning such review.

Authorizes the payment of travel and transportation expenses of no more than two family members when the attending physician of a military member determines that the presence of such family member is necessary for the health and welfare of a member who is seriously ill or injured.

Provides for the transportation at Government expense of one leased automobile of a member of the armed forces ordered to make a permanent change of duty station. (Current law provides only for the transportation of any vehicle that is owned by a member ordered to a change of station.)

Authorizes the payment of travel and transportation expenses for civilian employees accompanying a member of the Congress or a congressional employee on official travel.

Part C: Bonuses and Special and Incentive Pays - Increases the rate of monthly special pay for sea duty, and revises provisions concerning such career sea pay premium. Revises provisions concerning special pay for aviation career officers. Increases the special pay for members serving on submarine duty. Authorizes special pay for members of the National Guard or reserve components for diving duty performed.

Requires at least 50 percent of the Selected Reserve reenlistment bonus to be paid in a lump-sum initial payment.

Extends the active-duty enlistment and reenlistment bonus authority through FY 1992, and the reserve component enlistment and reenlistment bonus authority through FY 1990.

Part D: Miscellaneous - Authorizes the withdrawal of certain remarried persons from participation in the Survivor Benefit Plan (SBP). Revises provisions concerning occupancy by Coast Guard personnel of substandard family housing units. Authorizes the collection of amounts owed to service relief societies from the final pay of military members. Limits the amount authorized to be appropriated during FY 1988 for reserve unit and individual training.

Extends the military spouse employment preference as contained in the Military Family Act of 1985 to cover those military spouses attempting to obtain Federal positions at the GS-1 level or above (currently, such preference exists only for spouses seeking positions above GS-4).

Reduces from age 60 to 55 the age at which a former spouse may remarry without losing their entitlement to SBP annuity benefits.

Directs the Secretary, no later than 60 days after the enactment of this Act, to prescribe regulations which establishes a policy that the decision by a military spouse to perform voluntary work related to the armed forces should not be influenced by any preferences or requirements of the armed forces, nor should such decision or the marital status of the member have any effect on the assignment or promotion opportunities of the members.

Directs the Secretary to establish a test program under which a member of the armed forces may be reimbursed for certain qualifying expenses associated with the adoption of a child under 18 years of age. Provides that such test program shall extend through FY 1988 and 1989.

Title VII: Health Care Provisions - Military Health Care Amendments of 1987 - Part A: Medical Readiness - Authorizes the Secretary concerned to establish and maintain a program to provide financial assistance to persons engaged in health professions training while a member of the reserve forces. Authorizes such Secretary to pay a stipend to physicians and graduate nurses engaging in specialties determined critical to wartime needs, and to baccalaureate students about to engage in such critical specialities upon graduation from accredited institutions. Sets forth provisions concerning such agreements, including the amounts to be paid to each such person, and the period required to be served after the provision of such financial assistance. Outlines penalties for the failure to complete any agreed-upon period of duty following such financial assistance, and repeals the prior financial assistance program established under the Department of Defense Authorization Act, 1986. Sets forth funding limitations for such program during FY 1988.

Revises provisions of the Armed Forces Health Professions Scholarship Program to allow the Secretary of Defense to require, as part of an agreement under such program, that a person must agree to accept residency training in a skill designated by the Secretary as a critically needed wartime skill. Targets 2,500 of the 6,000 scholarships to be awarded under such program for critically needed wartime skills.

Extends to October 1, 1990, the date for initial appointment under the Education Loan Repayment Program for health professionals who serve in the Selected Reserves.

Authorizes constructive credit under each branch of the armed forces and the reserve forces for those entering such service with experience in the health professions.

Removes a specified ceiling on the payment of special pay to medical officers serving in the armed forces. Requires military officers who are medical officers or dental officers to be retired on the first day of the month following the month in which such officer becomes 67 years of age.

Directs the Secretary concerned, in prescribing age qualifications for reserve officers serving in critically needed wartime specialities, to prescribe a maximum age qualification (for initial entry into such service) of not less than 47 years of age. Authorizes the Secretary concerned to defer mandatory retirement (but not beyond the month after the officer achieves age 67) for medical officers involved in patient care or other clinical duties.

Part B: Peacetime Health Care - Limits the per-family payment for catastrophic loss protection for dependents of active-duty personnel under CHAMPUS.

Prohibits the Secretary, during FY 1988 and 1989, from imposing a fee for the receipt of outpatient medical or dental care at a military medical treatment facility.

Directs the Secretary of the Navy to take certain action to ensure the proper representation of health profession personnel in naval officer appointments and end strength increases for the Navy during FY 1989 and 1990.

Extends for one year the deadlines for the use of diagnosis-related groups as the primary criteria for the allocation of resources within medical facilities of the uniformed services.

Provides for Federal preemption, with regard to contracts for medical and dental care, over any applicable State or local law.

Provides for CHAMPUS coverage when the purchase of monitoring equipment for sudden infant death syndrome is required.

Part C: Health Care Management - Directs the Secretary to conduct projects designed to demonstrate the alternative health care delivery system in which the commander of a military medical facility is responsible for all funding and all medical care of the covered beneficiaries of that facility. Requires the Secretary to conduct projects to demonstrate alternatives to providing health care under the military health care systems. Outlines project requirements, and directs the Secretary to make various reports to the defense committees relating to such projects, including interim and final reports.

Amends the National Defense Authorization Act for Fiscal Year 1987 to require the Secretary to develop a methodology to be used in the evaluation of a CHAMPUS reform demonstration project required under such Act. Provides limitations on: (1) contracts awarded; and (2) the issuance of requests for proposals for military health care contracts under CHAMPUS reform initiatives. Outlines requirements under the demonstration project and the reform initiative. Requires the Secretary to take action to provide those losing CHAMPUS coverage with the opportunity to purchase additional insurance through an insurance plan that meets specified requirements similar to those provided under regular CHAMPUS coverage. Requires various reports from the Secretary to the defense committees relating to such demonstration projects and reform initiatives.

Amends the above Act to: (1) prohibit the Secretary from awarding a contract for the test and evaluation phase for the Composite Health Care System until certain testing and reporting requirements have been met; (2) direct the Secretary to conduct the test and evaluation phase for such system at no fewer than six sites, earmarking funds for such purpose and requiring specified reports by the Secretary and the Comptroller General concerning such test and evaluation; and (3) prohibit the Secretary from awarding a contract for the full production of a medical information system until certain congressional notice-and-wait requirements have been met.

Directs the Comptroller General to review and evaluate the practices under various insurance plans with respect to payments to hospitals in cases where the hospital does not impose a legal obligation to pay for such services. Requires the Comptroller General, no later than 180 days after the enactment of this Act, to report to the defense committees on the results of such review.

Title VIII: Acquisition Policy - Part A: Acquisition Process - Limits the functions of the Director of Operational Test and Evaluation to the provision of advice to officials responsible for such testing.

Directs the Secretary to provide that a covered product improvement program (part of a major weapons or munitions acquisition program) may not proceed beyond low-rate initial production until certain survivability and lethality testing has taken place. Requires the Secretary to report to the defense committees at the conclusion of such testing. Revises provisions relating to permissible variances in the costs of major defense acquisition programs.

Amends Federal procurement provisions to further define what is to be included in "cost or pricing data" for purposes of truth-in-negotiations requirements under such provisions.

Prohibits "golden parachute payments" from being included as an allowable defense contractor cost.

Directs the Secretary to ensure that substantial progress is made in increasing awards of DOD contracts to minority and small business enterprises. Directs the Secretary to issue regulations which establish guidelines for the making of such contract awards to such businesses.

Earmarks specified funds to carry out procurement technical assistance cooperative agreement programs during FY 1988 and 1989.

Revises Federal provisions concerning a defense contractor's right to technical data accumulated while performing a defense contract to provide that nothing shall impair the right of a contractor or subcontractor to receive royalty fees from a third party for the use of technical data developed exclusively at private expense by the contractor or subcontractor. Prohibits the relinquishing of such rights to such exclusively-developed data from being a condition to the awarding of a defense contract.

Revises provisions concerning goals for the participation by small business concerns, and small business concerns owned and controlled by socially and economically disadvantaged individuals, in procurement contracts of Federal agencies. Repeals a specified provision of the Small Business Act made inconsistent by the above changes.

Directs the Secretary of Defense to prescribe regulations providing for payment to contractors for production special tooling and equipment acquired or fabricated in the performance of defense contracts. Outlines terms and conditions concerning the making of such payments to contractors.

Part B: Other Acquisition Matters - Repeals prior law and sets forth new restrictions regarding retired military officers and certain matters affecting the Government. Provides that a retired officer who within two years after retirement receives payment in the sale of anything to the United States through the military department in which the officer is retired shall be fined or imprisoned, or both. Provides the same prohibition for officers who prosecute or act as attorneys against the Government in a case against the military department from which such officer is retired.

Places certain restrictions on the purchase of foreign-made administrative motor vehicles.

Prohibits the use of funds for the procurement of manual typewriters which contain components manufactured in a Warsaw Pact country. Repeals a specified provision of the Department of Defense Authorization Act, 1984 authorizing such procurement in limited circumstances.

Expresses the sense of the Congress favoring the preparation of certain economic impact and employment information concerning new defense acquisition programs.

Title IX: Matters Relating to Arms Control - Expresses congressional support for the Missile Technology Control Regime (an agreement between the United States and several European and Asian countries limiting the proliferation of nuclear missiles). Directs the Secretary, no later than February 1, 1988, to report to the defense committees concerning implementation policies of the Regime.

Expresses the sense of the Congress that the Soviet Union is in violation of the 1972 Anti-Ballistic Missile Treaty in building and placing the Krasnoyarsk radar system (an early-warning ballistic missile detection radar) more in the interior of the Soviet Union.

Directs the President to submit to the Congress, no later than 30 days after the enactment of this Act, a report on the current method of estimating the yield of Soviet underground nuclear tests to determine the extent with which the Soviet Union is complying with the 150 kiloton limit on such tests contained in the Threshold Test Ban Treaty.

Expresses certain congressional findings and declarations concerning current arms control negotiations between the United States and the Soviet Union. Declares, on the part of the Senate, that any agreement entered into must be: (1) effectively verifiable; and (2) enhancing to the strength and security of the United States and its allies.

Requires specified reports on: (1) the military consequences of the elimination of ballistic missiles; and (2) the implications of certain arms control positions. Expresses congressional support on an agreement between the United States and the Soviet Union establishing nuclear risk reduction centers.

Title X: Matters Relating to NATO Countries and Other Allies - Part A: NATO Deterrence - Requires the Secretary, as of a specified conditional date, to report to the Congress regarding the ability of NATO to maintain its strategy of deterrence through the 1990s.

Expresses the sense of the Congress that the current level of U.S. forces permanently stationed in Europe in support of NATO should be maintained. Directs the Secretary to contribute specified funds for a study on the future of NATO.

Part B: Burden Sharing - Directs the Secretary to conduct a study, and report to the Congress within 90 days after the enactment of this Act, on the ways in which the United States may further its national security interests in the Far East. Expresses the sense of the Congress that it would welcome action by Japan to increase its role in maintaining global stability through increased defense spending and completion of its five-year defense program.

Part C: Procurement Matters - Allows a firm of any member nation of NATO to bid on any contract for the maintenance, overhaul, or repair of DOD equipment as part of the DOD Overseas Workload Program.

Requires the Secretary, within 90 days after the enactment of this Act, to report to the Congress on any plans to co-produce or co-assemble the M1A1 tank with a foreign country.

Limits the installation by the United States of weapons storage and security systems in any European NATO-member country until the Secretary makes certain certifications to the Congress with respect to such program.

Title XI: Department of Defense Management - Part A: Construction and Maintenance of Naval Vessels - Revises limitations on defense contracting for short-term naval vessel repair work.

Directs the Secretary to provide specified rates for progress payments on contracts for the repair or maintenance of naval vessels.

Part B: Contracting Out - Directs the Secretary to provide that the commanders of each military installation shall have the authority to contract out for commercial activities performed or carried out on such installation. Directs the Secretary to prescribe regulations for such authority within 60 days after the enactment of this Act.

Prohibits the contracting-out for the performance of security guard functions within the military departments or defense agencies.

Part C: Security and Counterintelligence Matters - Authorizes the Secretary to carry out a program for the administration of counterintelligence polygraph examinations to persons whose duties involve access to information classified as top secret or are designated as being within a special access program. Provides exceptions to such examinations, and directs the Secretary to carry out a continuing research program to support the polygraph activities of DOD. Directs the Secretary to report annually to the Congress, on January 15 of each year, on the polygraph program. Repeals provisions of the Department of Defense Authorization Act, 1986 made inconsistent by the changes in this Act.

Directs the Secretary to assess, and report to the Congress within 90 days after the enactment of this Act on, the capacilities of the Soviet Union to engage in U.S. intelligence espionage activities from their embassy facilities on Mount Alto in the District of Columbia.

Directs the Secretary to prescribe necessary regulations to prohibit the unauthorized dissemination of unclassified information pertaining to security measures, including plans, procedures, and equipment for the physical protection of special nuclear material. Requires quarterly reports from the Secretary to the Congress concerning such protective measures.

Part D: Special Access Programs - Expresses the sense of the Congress with respect to the disclosure of certain budget and schedule information about specified special access programs. Directs the Secretary, no later than February 1 of each year, to report to the defense committees on special programs (programs the nature or scope of which are withheld from public explanation). Requires the Secretary to notify the defense committees whenever a change is made in the classification of a special access program, or whenever there is a modification or termination of the policy or criteria used for designating a program as a special access program. Directs the Secretary and the Comptroller General to submit specified reports to the defense committees on the criteria for designating a program as a special access program.

Title XII: General Provisions - Part A: Financial and Budget Matters - Authorizes the Secretary, upon a determination that such action is necessary and in the national interest, to transfer amounts made available to DOD in titles I through III for any fiscal year between any such authorizations for that fiscal year. Limits the total amounts that may be so transferred, and directs the Secretary to promptly notify the Congress of any such transfer.

Limits the availability of funds appropriated to DOD to three years after such funds originally become available.

Requires consistency in amounts presented by DOD in the annual budget presentation to the President. Directs the Secretary, no later April 1 of each year, to submit to the Congress the five-year defense program used to estimate budget expenditures and appropriations included in programs and activities of DOD.

Part B: Force Structure and Policy - Outlines responsibilities of the Assistant Secretary of Defense with respect to special operations and low intensity conflict matters. Directs the Secretary to submit to the defense committees a directive setting forth a charter of the Assistant Secretary's duties with respect to such operations.

Directs the Secretary to provide sufficient resources to the commander of the unified combatant command for the special operations forces established under prior Federal law. Requires a specified minimum number of personnel to be assigned to the staff of the unified combatant command. Outlines the acquisition authority available to the commander of the unified combatant command.

Directs the Secretary to appoint within DOD a Conventional Defense Advisory Board (the Board) to review the report of the Conventional Defense Study Group. Requires various reports from the Group, the Board, and the Comptroller General to the Secretary and the defense committees.

Directs the Secretary, no later than January 15, 1988, to submit to the defense committees a report on competitive strategies.

Directs the Secretary to submit annually to the Congress a report on the defense capabilities of the United States in comparison with its potential adversaries.

Part C: Miscellaneous Reports - Directs the Secretary to study, and report to the defense committees within 60 days after the enactment of this Act on, the establishment of an unmanned space operation as part of the Consolidated Space Operations Center near Colorado Springs, Colorado.

Directs the Secretary and the Secretary of Energy to jointly report to the Congress on contingency plans of DOD and DOE to deal with significant disruptions in the supply to the United States of crude oil supplied by nations of the Persian Gulf region.

Directs the Secretary to conduct a comprehensive study, and report to the defense committees no later than 30 days after the enactment of this Act, on the early decommissioning of two specified aircraft carriers.

Part D: Technical and Clerical Amendments - Makes technical and clerical amendments to various Federal armed forces provisions, including military pay provisions.

Part E: Miscellaneous Matters - Sets forth various miscellaneous matters, including the following: (1) a required study by the Comptroller General of the capabilities to control drug smuggling in the United States, requiring specified reports; (2) a fund transfer to the Coast Guard for FY 1988 and 1989 for the Law Enforcement Detachment program; (3) the requirement of a plan submitted to the Congress by the Secretary of DOD for assistance in drug law enforcement activities, including the lending of equipment and vehicles for such assistance, requiring specified reports by the Secretary and the Comptroller General; (4) the provision of drug interdiction assistance from Tyndall Air Force Base, Florida which includes the provision of command and control data; (5) the establishment of the position of the Assistant Secretary of Defense for Atomic Energy, to advise the Secretary and the Nuclear Weapons Council on nuclear energy and nuclear weapons matters; (6) an amendment to the Export Administration Act of 1979 stating that shipments of U.S. crude oil to DOD or U.S.-supported installations overseas shall not be considered exports for purposes of the provisions of such Act; (7) directing the Secretary of the Treasury to pay a specified claim to the Merchants National Bank of Mobile, Alabama, for a loan guarantee claim; (8) the establishment of procedures by the Secretary for the examination of forensic evidence, including tests for the use of LSD; and (9) authorizing the Secretary to provide transportation on DOD aeromedical evacuation aircraft for veterans traveling to or from a VA medical facility.

Title XIII: Amendments Related to Goldwater-Nichols Reorganization Act - Part A: Joint Officer Personnel Policy - Amends the Goldwater-Nichols Reorganization Act to revise Federal provisions relating to the following: (1) the nomination and selection of officers for the joint specialty; (2) joint duty assignment positions, including the length of such assignments; (3) notice to the Congress of exceptions to the maximum number of officers in the armed forces, consisting of certain officers in joint officer management functions; and (4) special transitional rules applicable to nuclear propulsion officers in joint duty assignment positions.

Part B: Other Matters - Authorizes, until January 20, 1989, a temporary increase (by one) in the number of Assistant Secretaries of Defense.

Excludes certain personnel transferred from GSA to DOD from a specified reduction required under the above Act in the number of personnel assigned to management headquarters positions.

Title XIV: Foreign Relations Matters - Commends the armed forces in the Persian Gulf region for certain successful operations carried out by them. States that such forces are fully justified in sinking any Iranian ship which threatens the safe passage of any warship of the United States or any vessel known to have U.S. citizens on board.

Expresses the policy of the United States that it should cease all military and economic assistance to the Government of Panama, until certain conditions are satisfied.

Reaffirms the congressional condemnation of the Vietnamese occupation of Cambodia. Urges the Government of Japan to refrain from granting to Vietnam any economic assistance, trade financing, or private sector exportation to Vietnam of goods or services of Japan.

Reaffirms the sense of the Congress that the United States should not introduce armed forces into Nicaragua for combat.

Division B: Military Construction Authorizations - Military Construction Authorization Act, 1988 and 1989 - Subdivision 1: Fiscal Year 1988 - Title I: Army - Authorizes the Secretary of the Army to acquire real property and carry out military construction projects in specified amounts at specified installations and locations. Authorizes the Secretary to construct or acquire military family housing units and to improve existing units in specified amounts at specified installations.

Authorizes appropriations to the Army for fiscal years after FY 1987 for military construction, land acquisition, and military family housing functions of the Department of the Army. Limits the total cost of all such projects to amounts authorized in this title. Extends the authorization of appropriations for certain FY 1985 and 1986 military construction projects.

Title II: Navy - Authorizes the Secretary of the Navy to acquire real property and carry out military construction projects in specified amounts at specified installations and locations. Authorizes the Secretary to construct or acquire military family housing units and to improve existing units in specified amounts at specified installations.

Authorizes appropriations to the Navy for fiscal years after FY 1987 for military construction, land acquisition, and military family housing functions of the Department of the Navy. Limits the total cost of all such projects to amounts authorized in this title. Extends the authorization of appropriations for certain FY 1984 and 1986 military construction projects. Amends the Military Construction Authorization Act, 1987 to increase the authorization of appropriations for the Naval Weapons Station at Earle, New Jersey.

Title III: Air Force - Authorizes the Secretary of the Air Force to acquire real property and carry out military construction projects in specified amounts at specified installations and locations. Authorizes the Secretary to construct or acquire military family housing units and to improve existing units in specified amounts at specified installations. Authorizes the the Secretary to make advances to the Secretary of Transportation for the construction of defense access roads at Havre Air Force Station, Montana, in a specified amount.

Authorizes appropriations for the Air Force for fiscal years after FY 1987 for military construction, land acquisition, and military family housing functions of the department of the Air Force. Limits the total cost of such projects to amounts authorized in this title. Extends the authorization of appropriations for certain specified military construction projects.

Title IV: Defense Agencies - Authorizes the Secretary of Defense to acquire real property and carry out military construction projects in specified amounts at specified installations and locations. Authorizes the Secretary to construct or acquire military family housing units and to improve existing units in specified amounts at classified locations.

Directs the Secretary to make advances to the Secretary of Transportation for the construction of defense access roads at Brooke Army Medical Center, San Antonio, Texas.

Authorizes appropriations for fiscal years after FY 1987 for military construction, land acquisition, and military family housing functions of DOD. Limits the total cost of such projects to amounts authorized in this title. Earmarks specified funds so authorized for the planning and design of a bridge over the Gladys Spellman Memorial Parkway providing access to the National Security Agency. Authorizes the Secretary to acquire real property and carry out a military construction project at Vandenberg Air Force Base, California. Extends certain FY 1985 and 1986 military construction projects.

Increases the amount authorized for a military construction project at Brooke Army Medical Center, San Antonio, Texas. Directs the Secretary, no later than March 1, 1988, to report to the defense committees on certain cost estimates in connection with a construction project there. Revises a provision of the Military Construction Authorization Act, 1987 relating to the construction of conforming storage facilities.

Earmarks specified SDI funds for the planning and construction of a National Test Facility for the Strategic Defense Initiative at Falcon Air Force Base, Colorado.

Title V: North Atlantic Treaty Organization Infrastructure - Authorizes the Secretary of Defense to make contributions to the NATO Infrastructure program, and authorizes additional appropriations for fiscal years beginning after FY 1987 for such purpose.

Title VI: Guard and Reserve Forces Facilities - Authorizes appropriations for fiscal years beginning after FY 1987 for the costs of acquisition, architectural and engineering design services, and construction of facilities for the guard and reserve forces.

Title VII: Expiration of Authorizations - Provides that all authorizations contained in titles I through IV of this subdivision shall expire on October 1, 1989, or on the date of the enactment of the Military Construction Authorization Act for fiscal year 1990, whichever is later, with specified exceptions.

Subdivision 2: Fiscal Year 1989 - Title I: Army - Authorizes the Secretary of the Army to acquire real property and carry out military construction projects in specified amounts at specified installations and locations. Authorizes the Secretary to construct or acquire a specified number of military family housing units at Fort Drum, New York, and to carry out architectural planning and design services in a specified amount. Authorizes the Secretary to improve existing military family housing units for a specified amount, earmarking some of such amount for energy conservation projects.

Authorizes appropriations to the Army for fiscal years after FY 1988 for military construction, land acquisition, and family housing functions of the Department of the Army. Limits the total cost of such projects to amounts authorized in this title.

Title II: Navy - Authorizes the Secretary of the Navy to acquire real property and carry out military construction projects in specified amounts at specified installations and locations. Authorizes the Secretary to construct or acquire military family housing units, carry out architectural and engineering services and design, and improve existing military housing units in specified amounts.

Authorizes appropriations to the Navy for fiscal years after FY 1988 for military construction, land acquisition, and military family housing functions of the Department of the Navy. Limits the total cost of all such projects to amounts authorized in this title.

Title III: Air Force - Authorizes the Secretary of the Air Force to acquire real property and carry out military construction projects in specified amounts at specified installations and locations. Authorizes the Secretary to carry out architectural and engineering services and construction design activities, and to improve existing military family housing units in specified amounts at specified installations.

Authorizes appropriations to the Air Force for fiscal years beginning after FY 1988 for military construction, land acquisition, and military family housing functions of the Department of the Air Force. Limits the total cost of all such projects to amounts authorized under this title.

Title IV: Defense Agencies - Authorizes the Secretary to acquire real property and carry out military construction projects at Kirtland Air Force Base, New Mexico, in a specified amount. Authorizes the Secretary to improve existing military family housing units in a specified amount.

Authorizes appropriations for the defense agencies for fiscal years beginning after FY 1988 for military construction, land acquisition, and military family housing functions of DOD. Limits the total cost of all such projects to amounts authorized in this title.

Title V: North Atlantic Treaty Organization Infrastructure - Authorizes the Secretary of Defense to make contributions to the NATO Infrastructure program, and authorizes appropriations for fiscal years beginning after FY 1988 for such purpose, in a specified amount.

Title VI: Guard and Reserve Forces Facilities - Authorizes appropriations for fiscal years beginning after FY 1988 for the costs of acquisition, architectural and engineering services, and construction of facilities for the guard and reserve forces.

Title VII: Expiration of Authorizations and Effective Date - Provides that all authorizations contained in titles I through VI of this subdivision shall be effective only to the extent of the availability of appropriations, and shall expire on October 1, 1990, or on the date of enactment of the Military Construction Authorization Act for fiscal year 1991, whichever is later.

Subdivision 3: General Provisions - Title I: Military Construction Program Changes - Authorizes the Secretary of the military department concerned to enter into long-term contracts for the construction of hospitals or medical facilities. Extends through FY 1989 the authority to enter into such contracts contracts. Directs the Secretary entering into such a contract to report to the defense committees by February 15, 1989, concerning such contracts and recommendations as to whether such contract authority should be extended.

Authorizes the Secretary concerned to pay meritorious contractor claims that arise under military construction contracts or military family housing contracts, using previously unobligated funds.

Extends the per-project limit of guard and reserve minor construction projects for which operation and maintenance funds are authorized to be used. Increases the per-unit threshold limit permissible for family housing improvement projects.

Authorizes the Secretary of each military department to enter into a specifed number of family housing leasing contracts.

Exempts military family housing units acquired at no cost from being counted in the limitation of such units authorized to be acquired by each department, as long as the Secretary concerned complies with certain congressional notice-and-wait requirements.

Increases the per-unit expenditure limit for the rental of family housing in foreign countries. Limits the amount a Secretary may use for exercise-related unspecified minor military construction projects coordinated or directed by the Joint Chiefs of Staff outside the United States during any fiscal year. Increases the cost threshold for multiple unit family dwelling units in a foreign country.

Title II: Miscellaneous Provisions - Directs the Secretary of Defense to establish and carry out, during FY 1988 through 1990, a pilot program to assist units of general local government in increasing the amount of affordable family housing available to military personnel. Directs the Secretary, no later than March 15 of each of the years 1988 through 1991, to report to the defense committees on such activities.

Restricts the use of funds for the following: (1) diminishing any part of the 474th Tactical Fighter Wing at Nellis Air Force Base, Nevada; (2) to relocate certain parts of the Joint Tactical Command Control and Communications Agency at Fort Monmouth, New Jersey; (3) strategic homeporting at the Naval Station at Everett, Washington, until certain action has taken place; and (4) certain military construction contracts if work on such contracts is to be performed by a non-immigrant.

Directs the Secretary to use specified amounts to provide planning assistance to local communities located near certain homeports proposed under the Naval Strategic Dispersal Program at Everett, Washington.

Directs the Secretary of the Air Force to dispose of any U.S. interest to real property formerly used as Air Force missile sites. Outlines provisions regarding the conveyance of such property.

Authorizes the Secretary of the Navy to pay a settlement claim to the Tulalip Indian Tribes of the State of Washington, in a specified amount, representing loss of access to certain fishing grounds caused by the construction of naval homeporting facilities. Outlines conditions for such claim settlement.

Title III: Real Property Transactions - Directs the Secretary of the Army to enter into a lease with the City and County of San Francisco, California, providing for the use by such City and County of a Public Health Service facility located in Presidio of California, to be used as an AIDS treatment facility. Outlines terms and conditions, authorizes appropriations, and requires specified reports concerning such lease.

Authorizes the Secretary of the Army to sell and replace certain property on the Kapalama Military Reservation, Hawaii.

Authorizes the Secretary of the Army to sell to Lawrence Township of Marion County, Indiana a specified portion of Fort Benjamin Harrison, Indiana.

Authorizes the Secretary to transfer to the Administrator of Veterans Affairs certain portions of the Rock Island Arsenal in Rock Island, Illinois, and Fort Sam Houston, Texas.

Authorizes the Administrator of General Services to transfer to the Secretary of the Navy certain property located near Fort Hamiliton, Brooklyn, New York, for use as military family housing.

Authorizes the Secretary of the Navy to transfer to Orange County, California certain real property located in Mile Square Regional Park, Orange County, California.

Directs the Secretary of the Army to transfer to the Administrator certain real property located on the Joliet Army Ammunition Plant, Joliet, Illinois, for use as a national cemetery.

Authorizes the Secretary of the Navy to lease to the Port of Oakland, California, certain real property at the Naval Supply Center, Oakland, California. Provides for lease payments to the Secretary. Prohibits the Secretary from entering into such lease until certain congressional notice-and-wait requirements have been met.

Authorizes the Secretary of the Army to release all title and interest the United States may have in certain real property located in Tarrant County, Texas, under specified conditions.

Authorizes the Secretary of the Army to grant to the State of New Mexico a mineral interest in land located within the White Sands Missile Range, New Mexico, under specified terms and conditions.

Amends the Military Construction Authorization Act, 1986 to include an authorization of appropriations for a water system improvement project at Fort Jackson, South Carolina.

Authorizes the Secretaries of the Army and the Navy to enter into agreements for the exchange of land and other real property interests at Hamilton Air Force Base, California, under specified conditions.

Authorizes the Secretary to sell all or a portion of the land comprising the Chapman Court Housing Annex near Chanute Air Force Base, Illinois, under specified terms and conditions (including a specified congressional notice-and-wait period before such a sale may take place).

Directs the Secretary of the Air Force to convey to San Diego County, California, certain land adjacent to Air Force Plant 19 in San Diego, California, under specified terms and conditions (including a certain congressional notice-and-wait period before any such exchange is permitted.)

Directs the Secretary of the Army to lease to the City of Barling, Arkansas, a certain portion of Fort Chaffee, Arkansas, for use by the City of Barling in the treatment of sewage. Outlines lease requirements, including reimbursement by the city for reasonable costs incurred by the Army in increasing the capacity of the sewage treatment facilities at Fort Chaffee to accommodate the use of such facilities by the City of Barling.

Division C: Other National Defense Authorizations - Title I: Department of Energy National Security Programs - Department of Energy National Security and Military Applications of Nuclear Energy Authorization Act of 1988 - Part A: National Security Programs Authorizations - Authorizes appropriations to the Department of Energy (DOE) for FY 1988 in carrying out national security programs in the following areas: (1) weapons activities; (2) nuclear materials production: (3) environmental restoration and management of defense waste and transportation; (4) verification and control technology; (5) nuclear materials safeguards and security technology development programs; (6) security investigations; and (7) naval reactors development. Authorizes appropriations to DOE for FY 1988 for plant and capital equipment in carrying out the following programs: (1) weapons activities; (2) materials production; (3) defense waste and transportation management; (4) naval reactors development; and (5) capital equipment not related to construction. Sets forth funding limitations for programs, projects, and activities of DOE relating to SDI. Earmarks specified funds for the defense inertial confinement fusion program. Limits the use of funds appropriated to DOE for the short-range attack missile II program.

Part B: Recurring General Provisions - Prohibits the use of funds authorized under this title where the costs of the program exceed 105 percent of the program authorization or the costs exceed by more than $10,000,000 the amount authorized by this title, whichever is less. Prohibits the use of funds authorized by this title for programs which have not been presented to or requested of the Congress unless the Secretary of Energy transmits to the appropriate committees a full and complete statement of the action proposed and 30 days have elapsed since such statement was submitted.

Authorizes the Secretary to carry out any general plant project only if the maximum estimated cost of the project does not exceed $1,200,000.

Sets forth procedures for the approval of projects which exceed by more than 25 percent their estimated cost, and exempts from such procedures any projects which have an estimated cost of less than $5,000,000.

Allows the transfer of funds from specified projects to other Government agencies for the performance of work for which the appropriation is made.

Authorizes the Secretary to perform construction design services in connection with any proposed construction project if the total cost does not exceed $2,000,000. Outlines other limits related to such funding. Authorizes the Secretary to perform emergency construction planning and design whenever he or she determines it to be appropriate.

Makes funds authorized for operating expenses and plant and capital equipment under this title available for all national security programs of DOE. Allows authorizations provided in this title to be adjusted for pay and benefits increases for Federal employees.

Part C: Miscellaneous Provisions - Amends the Department of Energy National Security and Military Applications of Nuclear Energy Authorization Act of 1986 to exclude from allowable contractor costs certain information provided to the Congress or a State legislature.

Directs the President to conduct a study and formulate a plan for the modernization of the nuclear weapons complex in order to provide the overall size and productive capacity necessary to support national security objectives. Directs the President to report to specified congressional committees no later than February 15, 1988, concerning such plan.

Directs the Secretary of Energy to request the National Academy of Sciences (the Academy) to submit, by December 1, 1987, a report summarizing its findings relating to the safety of operation of the N Nuclear Reactor at the Hanford Reservation, Washington. Requires such report to be submitted to the Secretary and to specified congressional committees. Places certain restrictions on the operation of such reactor until the Secretary can certify to such congressional committees that the reactor is safe.

Directs the Secretary to request the Academy to conduct two reviews, and report to the Secretary the results of such reviews on December 1 of the years 1988 and 1989, on the status of the nuclear weapons complex. Directs the Secretary to review the findings of the Academy, and provide to to the Congress, no later than 30 days after the receipt of each such report, a report on the Secretary's recommendations.

Amends the Department of Energy National Security and Military Applications of Nuclear Energy Authorization Act of 1987 to provide for an expedient determination of property rights in discoveries and inventions made by Government contractors while under contract with DOE or any other Government agency. Requires a decision on the waiver of U.S. property rights to such invention of discovery to be made within 150 days after such waiver is requested by the contractor. Requires the Secretary, if the 150-day deadline is not met, to report to the defense committees on the reasons for such failure, and to continue to report at 30-day intervals after such date.

Directs the Secretary of Energy, no later than February 1, 1988, to report to the defense committees describing the strategy for acquiring new reactor capacity for the production of nuclear materials.

Part D: Department of Energy Semiconductor Technology Research Excellence Initiative - Makes certain congressional findings concerning semiconductor research and its importance to U.S. national security. Directs the Secretary of Energy to initiate and carry out a program of research on semiconductor manufacturing technology and on the practical applications of such technology (such program to be referred to as the Initiative). Requires each national laboratory of DOE to participate in research and development projects under the Initiative in conjunction with DOD and any consortium conducting such research. Requires the Secretary of Energy to enter into any appropriate agreements with the Secretary of Defense and any consortium as necessary to provide for the active participation of the national laboratories of DOE in the Initiative. Provides for the temporary exchange of personnel to carry out research programs under the Initiative. Directs the Secretary of Energy to make available to all appropriate parties any facilities, personnel, or equipment of DOE to conduct such research and development projects under the Initiative.

Directs the Secretary of Energy, in preparing the research and development budget of DOE to be included in the President's annual budget, to provide for programs, projects and activities that encourage the development of new technology in the field of semiconductors. Outlines provisions concerning the entering into of cost-sharing agreements between directors of DOE national laboratories involved in Initiative projects and domestic firms involved in such projects. Limits the amount of available funding for each national laboratory that may be used for Initiative-related projects. Requires cost-sharing agreements to provide a 90-day period within which the Secretary of Energy may disapprove or require modification of any such agreement, if the Secretary so desires. Directs the Secretary, in carrying out the Initiative, to ensure that unnecessarily duplicative research is not performed at the research facilities participating in such Initiative. Directs the Secretary to adopt procedures providing for the timely and efficient transfer of semiconductor technology developed under the Initiative. Requires the Secretary, no later than one year after funds are first appropriated to carry out the Initiative, to submit to specified congressional committees a plan for the transfer of semiconductor research technology and information generated by the Initiative.

Title II: National Defense Stockpile - National Defense Stockpile Amendments of 1987 - Amends the Strategic and Critical Materials Stock Piling Act to provide that a stockpile quantity may be changed only if the President includes a full explanation and justification for such change in the annual material plan submitted to the Congress as required under such Act. Allows a more-than-ten percent-change in any material only if expressly so authorized by law.

Provides that: (1) the purpose of the National Defense Stockpile (NDS) is to serve national defense purposes only; and (2) quantities of materials stockpiled should be sufficient to sustain the United States for at least three years in the event of a war emergency.

Requires the Secretary of Defense to submit to the Congress an annual report on stockpile requirements.

Directs the President to designate a single Federal office to have responsibility for performing the functions of the President with regard to the NDS. Designates the individual holding such office as the National Defense Stockpile Manager.

Repeals a specified provision of the Strategic and Critical Materials Stock Piling Act authorizing specified uses of the National Defense Stockpile Transaction Fund.

Provides a February 15 deadline for the annual stockpile materials plan required to be submitted to the Congress by the President under the above Act.

Title III: Civil Defense - Authorizes appropriations for FY 1988 to carry out certain civil defense functions under the Federal Civil Defense Act of 1950.

Prohibits any funds made available to the Federal Emergency Management Agency for civil defense assistance to States from being withheld from any State on the basis of such State's failure to participate in a simulated nuclear attack exercise.