National Defense Authorization Act, Fiscal Year 1989

(Conference report filed in House, H. Rept. 100-989)

National Defense Authorization Act for Fiscal Year 1989 - Declares that this Act shall be deemed to have been enacted before the Department of Defense Appropriations Act, 1989 in applying any rule of statutory construction.

Division A: Department of Defense and Other National Defense Authorizations - 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 specified prohibitions, limitations, or conditions on the following Army, Navy, and Air Force programs: (1) the ADATS Air Defense Weapon; (2) mortars; (3) 155-Millimeter Base Burn Assembly Units; (4) AH-1W Ground Support Equipment; (5) the Trident II Missile program; (6) the DDG-51 Destroyer program; (7) Marine Corps Tactical Radios; (8) the 5-Inch Semiactive Laser-Guided Projectile program; (9) use of certain aircraft by the Air National Guard; and (10) the Air Force Launch facility.

Directs the Secretary of the Army to select an interim infantry antitank weapon from certain weapons tested, with the Director of Operational Test and Evaluation conducting an independent assessment of such operational tests.

Amends the National Defense Authorization Act for Fiscal Years 1988 and 1989 to make the Acquisition Executive for the Department of the Navy (currently, the Under Secretary of Defense for Acquisition) the source selection authority with respect to the selection of a heavy truck system configured with a palletized loading system.

Places certain limitations on the procurement of the Bigeye binary chemical bomb, requiring operational testing of such weapon and a report on the results of such testing from the Director of Operational Test and Evaluation to the Congress. Directs the Comptroller General, upon submission of the Director's report, to report to the Congress that each of certain production certification conditions concerning such bomb has been met. Earmarks specified funds for the Bigeye bomb program, with specified limitations.

Directs the Secretary of Defense (the Secretary) to submit to the Congress a statement of the effect during the fiscal year for which the budget is submitted of the stretchout of a major defense program if either of the following apply: (1) the final year of procurement scheduled for that program is more than two years later than the final year of procurement as specified in the most recent annual Selected Acquisition Report for that program; or (2) the proposed procurement quantity for that program is less than 90 percent of the procurement quantity proposed for that program for the same fiscal year as set out in such Report. Outlines certain conditions and limitations with respect to such requirement. Directs the Secretary, no later than March 15, 1989, to submit to the Senate and House Armed Services Committees (the defense committees) a report on the feasibility and effect of establishing maximum production rates by December 1990 for certain major defense acquisition programs.

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 defense committees of any delays in meeting such deadline.

Directs the Secretary, no later than December 1, 1988, to report to the Congress on the current and projected requirements of the Navy for aircraft.

Title II: Research, Development, Test, and Evaluation - Part A: Authorizations and Funding for Specific Programs - Authorizes appropriations for FY 1989 for the armed forces and the defense agencies for research, development, test, and evaluation (RDTE).

Earmarks specified funds for the ICBM modernization program. Directs the President, during a specified period: (1) to determine whether to continue or terminate the small ICBM program or the MX rail garrison program; and (2) based on such determinations, to determine how to allocate remaining funds among such programs. Directs the President, within a specified time period, to report to the defense committees on his actions.

Earmarks specified RDTE funds for the following: (1) a nuclear monitoring program of the Defense Research Projects Agency; (2) the Airship program; (3) extended air defenses; (4) production evaluation activity; (5) the chemical weapons convention compliance monitoring program; and (6) the Optoelectronics Materials Center.

Part B: Program Requirements, Restrictions, and Limitations - 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 Balanced Technology Initiative (the development of concepts and methods of enhancing the U.S. conventional defense capabilities). Requires the Director of Defense Research and Engineering to determine the amount of funds appropriated to each military department for such effort. Prohibits general defense reductions from being taken from Balanced Technology Initiative (BTI) funds. Prohibits any such funds from being used in connection with the Strategic Defense Initiative (SDI). Directs the Secretary, no later than 90 days after enactment of this Act, to report to the defense committees and the Senate and House Appropriations Committees (the appropriations committees) on the implementation of such provision.

Places certain limitations on the funding for Navy advanced tactical aircraft and Air Force advanced tactical fighters.

Limits the amount of funds to be obligated for the air-to-air missile program until the Secretaries of the Navy and Air Force establish a joint program office for the co-development of advanced air-to-air missiles and medium-range air-to-air missiles.

Earmarks specified funds for the purchase and installation of high technology equipment in a private, nonprofit center for the purpose of training machine tool operators in skills critical to the defense technology base to build, operate, and maintain such equipment.

Prohibits residual FY 1988 antisatellite weapons program funds from being obligated for such program in FY 1989.

Directs the Secretary, no later than December 31, 1988, to report to the defense committees on the plans and projected expenditures for the Long-Range Conventional Cruise Missile program.

Prohibits any funds from being expended or obligated for the Seek Spinner Missile program in any configuration.

Directs the Secretary: (1) no later than April 1, 1989, to prescribe a definition of what constitutes a depressed trajectory for a strategic ballistic missile; and (2) on the same date, to report to the Congress on such missiles.

Prohibits the Secretary from making a grant or awarding a contract to a college or university for the performance of research and development, or for the construction of any facility, unless the grant or contract is made or awarded using competitive procedures.

Part C: Strategic Defense Initiative - Earmarks a specified amount of funds appropriated in this title for the SDI program. States that funds appropriated to DOD for FY 1989 may not be used to establish a Strategic Defense System Operational Test and Evaluation activity.

Requires a report from the Secretary to the defense committees concerning the Space-Based Interceptor program of SDI.

Directs the Secretary, no later than 90 days after enactment of this Act, 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.

Makes certain congressional findings relating to the accidental launching of ballistic missiles. Expresses the sense of the Congress that: (1) the Strategic Defense Initiative Organization should concentrate development efforts on technologies and systems capable of protecting the United States from the accidental launch of an ICBM against the continental United States; and (2) such a system should be designed to be in compliance with the ABM Treaty. Directs the Secretary, by March 1, 1989, to report to the Congress on the status of the planning for such protection.

Part D: Strategic Programs - Places certain limitations on the following programs for FY 1989 (mainly requiring certain testing and reports to the defense committees before funds will be obligated for such programs): (1) the B-1B bomber program; and (2) the Advanced Technology Bomber program.

Expresses the sense of the Congress that the authorization of funds for research and development for both the small ICBM and the rail-garrison MX system does not constitute a commitment or intent by the Congress to procure and deploy the Midgetman missile or any MX missiles in a rail-basing mode, or both.

Part E: Other Programs - Earmarks specified defense agencies' funds for the Advanced Submarine Technology program. States that the Congress established such program in light of the large amount of activity by the Soviet Union in the area of submarine technology and the declining advantage of the United States in such technology. States as the future purpose of such program to explore innovative state-of-the-art technologies for advanced attack submarines and to augment the existing U.S. submarine technology base. Directs the Secretary of Defense (the Secretary), no later than 60 days after the enactment of this Act, to report to the defense committees a five-year plan for the Advanced Submarine Technology program. Provides contracting-out limitations with respect to such program.

Prohibits the Secretary of the Navy from carrying out an elctromagnetic pulse program in the Chesapeake Bay area in connection with the Electromagnetic Pulse Radiation Environment Simulator Program for Ships (EMPRESS).

Directs the Secretary, no later than the date on which the President submits the budget for FY 1990, to submit to the defense committees a comprehensive report on space control capabilities of the armed forces.

Directs the Secretary of the Air Force, no later than 90 days after the enactment of this Act, to report to the Congress outlining the plans for establishing competition in the development and production of components for the Advance Tactical Reconnaissance System.

Title III: Operation and Maintenance - Part A: Authorization 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 each subsequent year until such funds are expended, to report to the defense committees on humanitarian relief obligated and provided.

Directs the Secretary of the Army to establish a video teleconferencing center for the Tripler Army Medical Center, Hawaii.

Authorizes the Secretary of Defense to provide logistical support and personnel services in connection with the 1990 Goodwill Games in Seattle, Washington. Requires such support and services to be on a reimbursable basis, unless the Attorney General certifies and recommends to the Secretary that such support and services are necessary in the national interest. Authorizes appropriations for FY 1989 for such purpose.

Authorizes the Secretary, during FY 1989, to provide specified assistance to the Inaugural Committee for inaugural ceremonies and expenses.

Requires the Secretary to increase the number of audit and support personnel assigned: (1) within the Office of the Inspector General of DOD to the Assistant Inspector General for Audit; and (2) to the Defense Contract Audit Agency.

Part B: Limitations - Prohibits the following: (1) the financing of certain activities by direct appropriations in FY 1989 by the Secretary of the Navy; (2) the Secretary of the Air Force from agreeing to the joint use of Dobbins Air Force Base, Georgia, with civilian aviation; and (3) the purchase of Toshiba products for resale in military exchange stores.

Places certain limitations on FY 1989 funding in connection with any aircraft with short takeoff and landing capabilities.

Amends the National Defense Authorization Act for Fiscal Years 1988 and 1989 to extend through FY 1990 a certain limitation on Army depot maintenance funding.

Directs the Secretary of the Air Force to ensure that a certain Air Force depot rework facility in Palmdale, California, remains open through FY 1989.

Prohibits, during fiscal years 1989 and 1990, the management of civilian DOD personnel by end-strengths. Directs the Secretary of Defense to submit to the defense committees semiannual reports on the obligation of funds appropriated to such personnel during such fiscal years.

Prohibits funds appropriated to DOD for FY 1989 or a prior year from being obligated or expended to overhaul, operate, maintain, or deploy: (1) the USS Henry Clay; or (2) the USS James Monroe.

Part C: Permanent Law Changes - Prohibits a contract for the operation of a commissary store by a private person from allowing such person to carry out private procurement and management functions while operating a commissary store. Requires such functions to be carried out by DOD personnel.

Adds certain severance pay to foreign nationals by a contractor to the list of unallowable costs under certain service contracts performed overseas.

Authorizes the Secretary concerned to assist qualified scouting organizations (the Boy Scouts and Girl Scouts of America) in establishing and providing facilities and services for members of the armed forces, civilian employees of DOD, and their dependents at locations outside the United States. Allows such cooperation only if the President determines it to be necessary for the morale, welfare and recreation of the personnel or employees involved. Provides transportation, office space, warehousing, utilities, and communications for the scouting organizations when assisting such military or civilian personnel and dependents. Authorizes use of FY 1988 funds for such purpose.

Expands the material authorized to be lent or given to institutions by the Secretary concerned for historical, scientific, or educational purposes to include documents and historical artifacts. (Currently, such material includes only certain condemned or obsolete combat material.) Authorizes the Secretary concerned to provide for the exchange of such items with the institution or association to which property is being lent or given away.

Amends Federal provisions concerning the organization of the Department of the Army, the Navy, and the Air Force to outline the qualifications and experience required for the head of each department's auditing functions, requiring each such person to have at least five years of professional experience in accounting or auditing.

Prohibits the Secretary of Defense from requiring workload competitions in the selection of an entity to perform a depot maintenance function for the Army or the Air Force.

Directs the Secretary, no later than February 15, 1989, to report to the defense committees on the readiness of the armed forces in terms of manpower, mobility, sustainability, and equipment.

Authorizes the Secretary of the Navy to lease aircraft for Fleet Electronic Warfare Support Group activities, as long as leasing such aircraft would be less than operating and maintaining the Navy's own fleet of such aircraft.

Part D: Contracting Out - Directs the Secretary of Defense, in any DOD comparison of the cost of performing commercial activities by DOD personnel to the cost of performance by contractor personnel, to include retirement system costs of both DOD and the contractor. Requires certain DOD employees to be consulted when making such determination.

Authorizes the Secretary of the Navy to contract for the performance of firefighting and security guard functions at the radar site at Amchitka, Alaska.

Part E: 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 to licensed dealers; 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 for the identification and accounting of 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 April 30 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 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 exceeding an amount 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 72 hours after its discovery.

Part F: Studies and Reports - Directs the Secretary, no later than one year after the enactment of this Act, to report to the Congress on the adequacy of DOD safety standards for the transportation of hazardous materials.

Directs the Secretary to conduct a study of the use of disposable plastic items by DOD during FY 1989 in order to identify the types and amounts of such items used annually and to identify those items that are degradable and those that are not degradable. Directs the Secretary, no later than March 1, 1990, to report to the defense committees on the results of such study.

Directs the Secretary of the Navy to obligate a specified amount as the Navy's contribution to the feasibility study conducted by the Army Corps of Engineers of the Sunset Harbor Project, California. Provides that such funds shall be taken from operation and maintenance funds appropriated to the Navy for FY 1989.

Title IV: Military Personnel Authorizations - Part A: Active Forces - Authorizes end strengths for active-duty military personnel as of FY 1989. Repeals a specified provision of the National Defense Authorization Act for Fiscal Year 1987 requiring a certain reduction in the end-strength of the active-duty officer corps as of FY 1989 and a specified provision of the National Defense Authorization Act for Fiscal Years 1988 and 1989 pertaining to the reallocation of active-duty officer corps reductions.

Places specified limitations on the number of officers permitted to be on active duty as of September 30, 1990.

Reduces the number of Air Force colonels during FY 1989 and 1990.

Part B: Reserve Forces - Authorizes end-strengths for the Selected Reserve as of FY 1989 and end-strengths for reserves on active duty in support of the reserves. Increases the number of certain enlisted and officer personnel authorized to be on active duty in support of the reserves.

Part C: Military Training - Authorizes the average military training student loads for FY 1989. Allows such student loads to be adjusted consistent with the authorized military personnel end strengths.

Part D: Authorization of Appropriations - Authorizes appropriations for military personnel for FY 1989.

Title V: Military Personnel Policy - Part A: Officer 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.

Authorizes the President (currently, allows only the President) to remove the name of any reserve officer from a promotion list.

Provides that certain officer retirement provisions under the Defense Personnel Management Act shall not apply to those officers selected for early retirement under Federal armed forces selective early retirement provisions.

Part B: Joint Officer Personnel Policy - Increases the number of officers selected for the joint duty specialty who are authorized to be waived from certain education requirements before being selected for such specialty from five to ten percent of the total number of officers selected for such specialty. Requires that, until January 1, 1994, at least 80 percent of the critical joint duty assignments shall be held at all times by officers who have the joint specialty (including the required education program). Provides that, on and after such date, all officers selected for critical joint duty assignments shall have the joint specialty. Authorizes the Secretary of Defense to waive such 100-percent requirement on a case-by-case basis. Directs the Secretary, during a specified period, to report to the Congress on the operation of such joint specialty requirement, as well as the use of the waiver authority concerning such requirement. Requires information on critical positions not filled by officers with the joint specialty to be included in a certain annual report previously required under Federal law.

Reduces the minimum joint tour length from three years to two for general and flag officers and three and one-half to three years for other officers. Includes overseas joint duty assignments which are at least as long as the minimum joint tour length in the computation of the average joint tour length. Eliminates the requirement for an advanced joint specialty nomination for a two-year critical occupational specialty joint tour.

Increases to 12.5 percent (currently, ten percent) the number of two-year critical occupational specialty joint tours that may be excluded annually from the average joint tour length computation.

Provides full joint duty tour credit for an overseas joint duty assignment prescribed by regulations to be at least two years in length, with the limitation that not more than six percent of all joint duty assignments may be credited under this exception.

Authorizes, until January 1, 1994, appointment to general or flag rank of an officer in a joint duty assignment who has served at least two years, but not a full joint duty tour. Authorizes the Secretary to grant credit for a full tour of duty when he waives the length of a joint duty assignment in the case of an individual officer. Revises the joint duty cumulative credit provision by eliminating the requirement that the applicable tour length must be accumulated within an eight-year period. Permits constructive credit without a waiver for an officer (other than a general or flag officer) reassigned from a joint duty assignment for reasons of military necessity within 60 days of completing joint tour length criteria, but requires any shortened tours to be included in the average joint tour length computation.

Extends until January 1, 1994, the exemption of Navy nuclear-propulsion officers from the joint duty prerequisite for promotion to a flag-rank grade. Requires an annual report on progress in implementing joint officer duty requirement provisions with respect to Navy nuclear propulsion officers.

Provides a transition period, until January 1, 1994, during which 80 percent of joint duty assignments must be filled by joint specialists. Authorizes the Secretary to waive such requirement in the case of an individual critical joint duty assignment. Directs the Secretary to report to the defense committees his expectation on the percentage of assignments for which such waiver may need to be applied after the transition period ends. Requires such report to be transmitted no later than January 1, 1993.

Eliminates the requirement for an advance joint specialty nomination for a two-year critical occupational specialty joint tour.

Part C: Miscellaneous Matters - Revises Federal provisions concerning the mandatory testing of new military personnel for drug, alcohol, and chemical abuse to require such testing within 72 hours after the member's initial entry into active duty. Directs the Secretary concerned to require: (1) an applicant for appointment as a cadet or midshipman to undergo such testing during the physical examination given such individual before such appointment; and (2) any person offered a commission to undergo such testing during the precommission physical. Authorizes the President to suspend such testing requirements in time of war or emergency as declared by the Congress or the President.

Prohibits the Secretary of the Air Force, in accepting persons for original enlistment in the Regular Air Force, from: (1) setting a minimum or maximum percentage of persons who may be accepted for such an enlistment according to gender for skill categories or jobs; or (2) in any other way basing the acceptance of a person for such an enlistment on gender. Directs the Secretary to develop a methodology for implementing the above provision, and repeals a specified provision of the Department of Defense Authorization Act, 1985 requiring a specified percentage of Air Force enlistees to be women.

Provides that a civilian technician of the Army National Guard whose military occupational specialty has been approved for training by a National Guard school of that technician's State shall receive training in such specialty through his or her State school instead of through the Military Education Program. Outlines procedures for the approval of such State training courses, including approval by the Secretary of the Army of the State's implementation of the National Guard training program. Provides for training through the Military Education Program if a State training program is not approved by the Secretary. Provides transition provisions for Army National Guard technicians for whose occupational specialty there is not currently a program of training approved for the appropriate National Guard school. Directs the Secretary of the Army, no later than December 31, 1988, to report to the defense committees on the implementation of such program (entitled the Reserve Component Noncommissioned Officers Education Program).

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 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 10 days if such estimate 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 Federal provisions requiring military compensation increases in conformity with GS-level increases in the Federal Government, instead authorizing the following increases effective January 1, 1989: (1) a 4.1 percent increase in the rates of basic pay and basic allowance for subsistence; (2) a seven percent increase in the rates of the basic allowance for quarters; and (3) a 4.1 percent increase in cadet and midshipman pay. Revises the schedule of the weight allowances authorized for the transportation of household goods of military members (authorizing a higher weight allowance with each increasing pay grade).

Part B: Special Pay for Critical Personnel - 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 and limits 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. Requires reports from the Secretary of Defense to the defense committees concerning the implementation of such special pay provisions. Limits the total amount of special pay obligations that may be made during FY 1989. Terminates the authority to make such payments if required reports are not received by a specified date.

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 critically short wartime specialty and who execute a written agreement to serve in the Selected Reserve for not less than one year or more than three years. Requires an appropriate refund when such officers fail 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 specialities. 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.

Part C: Other Personnel Benefits - Authorizes the Secretary to carry out a program under which the Secretary of a military department may guarantee compensation of any person who leases a rental unit to any member of the armed forces for a breach of the lease or for damage to the rental unit by the member. Provides that such guarantee shall be accomplished by an agreement entered into between the Secretary concerned and the rental unit lessor. Outlines the terms to be included in such agreements, including a provision which subrogates the Secretary to the rights of the lessor in the case of nonpayment or breach of lease by a military lessee. Provides for recovery from the member involved when the Secretary must compensate a lessor.

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.

Entitles military personnel assigned on temporary duty overseas to travel and transportation allowances incident to personal emergencies.

Changes from mandatory to discretionary the payment of a travel and transportation allowance incident to the voluntary extension of an overseas tour of duty.

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.

Part D: Benefits Relating to Incapacitation of Certain Reserve Members In Line of Duty - Revises provisions concerning compensation paid to a member of the Reserves injured or disabled while on active duty, inactive duty for training, or while traveling to or from that duty or training. Provides that the monthly entitlement authorized to be paid to such individuals shal not exceed the member's demonstrated loss of earned income from nonmilitary employment. Strikes the requirement that the period of active duty in which the injury or disability occurred must have been for only 30 days or less (instead, authorizing payment for a disability occurring during any period of active duty) for a member of the National Guard or the Reserves.

Strikes the requirement that a member of the uniformed services must have died while on active duty for a period of 30 days or more in order for dependents to be provided transportation and travel allowances to attend the burial ceremonies (thus extending such allowances to survivors of reservists).

Amends Federal provisions relating to the Reserve Officers' Training Candidates (ROTC) program to authorize the Secretary of the military department concerned to prescribe and conduct practical military training for such candidates in addition to field training and practice cruises currently authorized for such individuals. Provides coverage as Federal employees for such candidates who experience injury, disability, or death from an injury incurred while on such military training, field training, or practice cruise. (Currently, such coverage is provided to such candidates for disability or death from injury, and does not cover practical military training.) Includes coverage while on practical military training of at least four weeks in duration for such candidates under applicable veterans' benefits provisions.

Part E: Health Care Management Provisions - Directs the Secretary to include in budget materials submitted to the Congress each year (beginning with the budget for FY 1990) a separate statement on the recommended end strengths for all members of the armed forces of each military department who are medical personnel. Requires information concerning the manpower necessary to perform medical missions of the armed forces and DOD to be included in the Defense Manpower Requirements Report.

Earmarks specified Navy operation and maintenance funds for the payment of civilian salaries for additional medical support personnel.

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. Earmarks specified portions of the Navy's officer end strength for FY 1989 through 1991 to be filled only by health care professionals.

Earmarks a specified sum of DOD medical operation and maintenance funds for the sharing of health care resources between DOD and the VA.

Amends the Department of Defense Authorization Act, 1984 to extend through December 31, 1990, the date on which the Secretaries of Defense, Health and Human Services, and Transportation (when the Coast Guard is not operating as a service in the Navy) may terminate the status of any public health service facility to furnish medical or dental care to members and former members of the armed forces and their dependents. Requires the order terminating such use of a public health service hospital to include a provision stating that such facility is being terminated, among other reasons, because more cost-effective medical and dental care for members and former members or their dependents is available elsewhere in the same geographical area.

Revises provisions concerning hospital reimbursement of certain costs by members of the armed forces, former members, and their dependents to authorize the Secretary of Defense to exempt a patient from paying such an amount if the hospital included does not impose a legal obligation on any of its patients to pay for inpatient care. Makes such exemptions applicable only if there is reasonable evidence that the payment by DOD to such hospitals under CHAMPUS is not greater than the average amount paid for comparable care in the same or a similar geographic area.

Part F: Miscellaneous - Extends for one year after a person's final decree of divorce, dissolution, or annulment a former spouse's coverage as a military dependent for medical and dental care under the Civilian Health and Medical Program of the Uniformed Services (CHAMPUS). Repeals a specified provision of the Department of Defense Authorization Act, 1985 disallowing such benefits to former spouses receiving such final decree on or after April 1, 1985.

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. Requires such surviving spouses to meet the eligibility requirements under the Department of Defense Minimum Income Widows' Program in order to be eligible for such program.

Directs the Secretary, no later than March 15, 1989, to report to the defense committees on the desirability of providing a more consistent definition of "dependent" for purposes of determining the eligibility of a person for various rights and benefits under specified Federal armed forces provisions.

Title VII: Department of Defense Organization and Management - Part A: Organization - Authorizes the establishment of the position of the Assistant Secretary of Defense for Intelligence to supervise all intelligence affairs within DOD. Provides that, if such position is established, the current position of Assistant Secretary for Command, Control, Communications, and Intelligence shall be revised to not include the responsibilities (and title) of the Assistant Secretary for Intelligence.

Designates in each branch of the armed forces an Assistant Secretary of such branch whose primary function shall be the exercise of comptroller functions, including all financial management responsibilities. Directs the Secretary of each military department to provide that the Assistant Secretary for Financial Management shall direct and manage financial management activities of such Department and shall comply with all required accounting systems, internal control systems, and financial reporting systems applicable within such Department. Outlines administrative provisions providing the authority of each such assistant Secretary, as well as the specific principles, standards, and other accounting requirements with which each such Assistant Secretary must comply. Requires each such Assistant Secretary to be responsible for all financial management operations and activities of the department and to advise the respective Secretary on financial mangement matters.

Requires presidential appointments of the General Counsels of the military departments to be made by and with the advice and consent of the Senate.

Authorizes the President to defer, until October 1, 1989, the retirement of the officer serving as the Chairman of the Joint Chiefs of Staff for the term beginning October 1, 1987.

Part B: Force Structure - 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. Requires such commander to also be responsible for: (1) executing budgets; and (2) program recommendations, budget proposals, and budget execution for other assigned forces as well as special operations forces.

Prohibits the Secretary of the Air Force from making any change in the alert status of any National Guard unit in the strategic air defense mission in the northern portion of the United States, or in the deployment of units assigned to that mission, from the status and deployment in effect as of April 10, 1988. Directs the Secretary of the Air Force, after certain radar systems are deployed as replacement for a previous system, to report to the Congress on the new systems. Requires an interim report, no later than February 1, 1989, concerning such systems.

Requires the commanders of the unified and specified combatant commands, and the Chairman of the Joint Chiefs of Staff, to report to the Secretary on the resource allocation provisions of the Goldwater-Nichols DOD Reorganization Act of 1986. Directs the Secretary to forward such reports, together with appropriate comments and recommendations, to the defense committees no later than April 1, 1989.

Directs the Secretary, no later than April 1, 1989, to report to the defense committees on the implementation of Federal provisions requiring: (1) an initial unified command plan; and (2) a review of service roles and missions.

Part C: Personnel-Related Provisions - Directs the Secretary, no later than 90 days after the enactment of this Act, to ensure that the Secretaries of the military departments have issued uniform regulations to provide for the delivery of members of the armed forces to civilian authority when such members have been accused of offenses against civil authority. Directs the Secretary, no later than 120 days after this Act's enactment, to transmit to the defense committees a copy of such regulations and any recommendations for additional legislation concerning such matters.

Revises annuity computation provisions for judges of the U.S. Court of Military Appeals who complete their terms of service. Requires a judge, in order to be eligible for such annuity, to choose such annuity in lieu of any other annuity to which such judge may be entitled. Directs the Secretary to prescribe by regulation a program to provide annuities for survivors and former spouses of judges and former judges who receive an annuity under the above provisions. Requires the Secretary to establish such survivor annuity program within one year after the enactment of this Act.

Part D: Other - 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.

Expresses certain congressional findings with regard to the need for further integration of national military strategy with weapon acquisition programs of DOD. Expresses the sense of the Congress that: (1) the Office of the Secretary of Defense and the Joint Staff should better define the links between national strategy and specific acquisition decisions; (2) the Secretary should ensure that resulting budget priorities clearly reflect national strategic priorities; and (3) the Secretary should commission an independent assessment of the link between military strategy and weapons acquisition.

Expresses certain findings of the Congress with regard to the maintenance of an inactive, Government-owned ammunition production base, and directs the Secretary, no later than December 1, 1988, to report to the defense committees on findings and recommendations with regard to alternatives to such ammunition production facilities.

Expresses the sense of the Congress that the Secretary should take all reasonable measures to declassify material under DOD control that is no longer required to be protected from unauthorized disclosure.

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.

Authorizes the services of DOD to establish a program of incentives for conserving and otherwise making more efficient use of energy by the services. Directs the head of each service, in carrying out such program, no later than 120 days from the enactment of this Act, to implement procedures for the identification, verification, accrual, and use of the first year's energy cost savings resulting from contracts entered into under title VIII of the National Energy Conservation Policy Act. Allows any energy-cost saving to be treated as an unobligated balance available to the service for: (1) additional energy efficiency projects by the service; and (2) appropriate morale, welfare, and recreational purposes and minor construction projects.

Title VIII: Acquisition Policy and Management - Part A: Acquisition Management - Directs the Secretary to develop and keep current a plan that ensures that certain DOD policies (relating to defense contract progress payments, contractor investments, and allocation of contract risks) are structured to meet the long-term needs of DOD for industrial resources and technology innovation. Directs the Secretary, each year, to review such plan and report the results of such review to the defense committees. Requires the Secretary, in negotiating any such contract, to use the most current informaton on profitability developed or obtained by the Secretary. Directs the Secretary to appoint an advisory committee for the purpose of recommending to the Secretary a financial analysis methodology for any return-on-investment study conducted by the Secretary. Requires the Secretary to appoint members of such committee no later than 90 days after the enactment of this Act. Requires the advisory committee to report to the Secretary, and the Secretary to report to the Congress, on such methodology.

Terminates, as of September 30, 1991, current Federal provisions requiring the Secretary to use a competitive program strategy in the development of a major weapons system.

Delegates to the head of a procuring activity or to the senior procurement executive of an agency the authority to approve defense contract justifications which are entered into under noncompetitive procedures. Limits the ability of either of such individuals to further delegate such authority.

Directs the Secretary, within 120 days after this Act's enactment, to establish criteria to ensure that proposals for contracts for professional and technical services are evaluated on a basis which does not encourage contractors to propose mandatory uncompensated overtime for professional and technical employees. Directs the Secretary, within 30 days after this Act's enactment, to establish an advisory committee to make recommendations on the criteria to be adopted by the Secretary.

Directs the Secretary, in procuring critical aircraft and ship spare parts, to require the contractor supplying such a part to provide a part that meets all appropriate qualification and contractual quality requirements as may be specified and made available to prospective offerors.

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 proposals by the original supplier of such item to meet the mobilization requirements are insufficient to meet the agency's mobilization needs.

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. Prohibits the awarding of a firm fixed-price contract in excess of $10,000,000 for the development of a major system. Authorizes the waiver of such prohibition by the Secretary in specified circumstances.

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.

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.

Part B: Defense Industrial Base - Expresses congressional findings for the essential need of a strong defense industrial base for the enahncement of U.S. national security. Directs the Secretary 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 standards 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 has been assessed by the Office of the Secretary of Defense.

Authorizes the Under Secretary to establish a defense industrial base office 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 office 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.

Prohibits DOD funds, during fiscal years 1989 through 1991, from being used to procure: (1) piping valves for naval surface ships and submarines; and (2) a certain Federal Supply class of machine tools that are not manufactured in the United States or Canada. Authorizes the Secretary to waive such prohibition if certain conditions exist. Authorizes the renewal of such prohibition after FY 1991 if such restriction is determined to be in the national security interest.

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 Secretary, in the negotiation and renegotiation of memoranda of understanding between DOD and one or more foreign countries relating to defense research, development, or production of defense equipment, to: (1) consider the effect of such memoranda on the defense industrial base of the United States; and (2) regularly solicit information or recommendations from the Secretary of Commerce with respect to the effect on the U.S. industrial base of such memoranda of understanding.

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 President 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 President 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 limit the effect of such arrangements on the defense industrial base of each such country. Attempts to achieve, within two years after the enactment of this Act, an agreement limiting the adverse effects of such arrangements. Directs the President to report to the Congress at least once each year for four years on the progress of such negotiations. Directs the President, 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 President, no later than March 15, 1990, 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.

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; (2) entered into after the Secretary determines that cost savings to the United States will result; and (3) within dollar ceilings established in advance agreements negotiated between the Secretary and the contractor or subcontractor during the fiscal year covered by such arrangement. Directs the Secretary to prescribe such regulations within 90 days after the enactment of this Act. Directs the Comptroller General and the Inspector General of DOD, within two years after this Act's enactment, to report to the defense committees on the appropriateness and effectiveness of such regulations.

Part C: Policies Relating to Defense Contractors - Places additional prohibitions on individuals convicted of fraud or any other felony arising out of a contract with DOD (basically, disallowing such person from having any contact with a defense contract or defense contractor during such prohibition). Requires such prohibitions to last for a period of not less than five years, with specified exceptions.

Revises provisions concerning the allowability of certain contractor costs to provide that the following costs are not allowable: costs incurred in connection with any civil, criminal, or administrative action brought by the United States that results in a determination that a contractor has violated or failed to comply with any Federal law or regulation if the action results in a conviction, a finding of willful or knowing failure to comply, or a determination by the Secretary that a violation or failure to comply was knowing or willful. Directs the Secretary to prescribe regulations to implement this provision.

Directs the Administrator of General Services to enter into negotiations with commercial air carriers to achieve agreements that permit personnel of defense contractors traveling solely to perform defense contract duties to be transported at the same discount air fare rate as such carriers charge for Federal employees traveling at Government expense. Directs the Administrator to prescribe regulations disallowing commercial air carriers to charge such personnel at a rate higher than such discount rate if: (1) the rate was available; and (2) travel could reasonably have been performed under the conditions required to qualify to receive such discount rate.

Directs the Secretary to prescribe standards for inventory accounting systems used by DOD contractors and appropriate certification and enforcement requirements with respect to such standards.

Prohibits the expenditure or obligation of Federal funds for the performance of specified contracts outside the United States unless the Secretary of the Army secures a commitment from the contractor that it will support equal employment opportunities for all individuals.

Part D: Miscellaneous - Limits the amount of procurement technical assistance (under a procurement technical assistance cooperative agreement program) furnished by the Secretary to any eligible entity to carry out a program, 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 technical assistance for Indian tribal organizations.

Establishes within DOD a program 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 Public Printer to establish, and carry out during FY 1989 and 1990, a test program for increasing its awarding of contracts to small and disadvantaged businesses for the printing, binding, and related services needed by DOD. Outlines program goals. States that amounts set aside under such program shall be counted toward goals set under the National Defense Authorization Act for Fiscal Year 1987 for aid to such businesses.

Amends the National Defense Authorization Act for Fiscal Year 1987 to extend through FY 1990 the goal of entering into a certain amount of defense procurement contracts with small disadvantaged businesses.

Requires DOD to issue certain regulations as required under the National Defense Authorization Act for Fiscal Year 1987 concerning small businesses no later than October 1, 1988.

Prohibits any person from restricting a member of the armed forces in communicating with a Member of Congress or an Inspector General. Revises current Federal provisions concerning the protection of such individuals, providing for the following: (1) a prohibition on retaliatory personnel actions against such individuals; and (2) an investigation by the Inspector General of DOD if a person alleges that a retaliatory personnel action has been taken against them. Outlines administrative provisions detailing the procedures to be followed by the Inspector General during such investigation. Requires the Inspector General, within 30 days after completion of such an investigation, to report the results to the Secretary and the member involved. Authorizes a correction board to review an application to correct the personnel record of a member alleging such retaliatory personnel action. Directs the Secretary concerned to order such a correction upon determining that such action was taken. Requires the Secretary concerned to issue a final decision with respect to an application by a member within 180 days after the application is filed. Authorizes appropriate disciplinary action against the person who initiated the retaliatory personnel action against the military member. Allows the member affected, after all administrative actions have been exhausted, to submit the matter to the Secretary for review, upon which the Secretary shall make a decision to reverse or uphold the prior action within 90 days. Directs the Inspector General of DOD (and the Inspector General of the Department of Transportation with respect to the Coast Guard), no later than February 1, 1990, to report to the Congress on his or her activities with regard to the enforcement of the above provisions.

Title IX: Matters Relating to Arms Control - 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.

Expresses the sense of the Congress that the Strategic Arms Reduction Talks (START) should not: (1) prevent the United States from deploying a survivable strategic force structure, or compromise the security of the U.S. ballistic missile-carrying submarine force; and (2) prohibit or limit the deployment of non-nuclear cruise missiles.

Expresses the sense of the Congress that the Congress: (1) has a role to play in formulating arms control and defense policies of the United States, but; (2) should not usurp, undermine, or interfere with the authority of the President under the Constitution to negotiate and implement treaties, especially treaties which affect arms control and defense policies of the United States.

Expresses congressional findings concerning the five-year ABM Treaty review. Expresses the sense of the Congress that the President should propose an early date to conduct the overdue five-year review of the ABM Treaty and immediately thereafter inform the Congress of the results of that review.

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.

Directs the President to conduct a study regarding the antiballistic missile capability and activities of the U.S.S.R. Outlines certain assessments to be included as part of such study, including the ability of the United States to modify its existing strategic offensive forces to effectively counter a Soviet ABM system over the same period of time required for the Soviets to deploy it. Directs the President, by January 1, 1989, to prepare and submit to the Speaker of the House of Representatives and the President pro tempore of the Senate a report of the results of such study and assessment, together with recommendations.

Expresses congressional findings regarding the need for an analysis of alternative strategic nuclear force postures for the United States under a potential START treaty (Strategic Arms Reduction Treaty). Directs the President to provide to the Congress, prior to the conclusion of such a treaty but in no event later than September 15, 1988, a comprehensive report on the implications such an accord might have for future strategic force postures of the United States in the 1990's.

Directs the following executive branch officials, no later than six months after the enactment of this Act, to report to various congressional committees on the responsibility of each such official for the monitoring and verification of arms control agreements: the Secretary of Defense, the Secretary of State, the Director of Central Intelligence, and the Director of the United States Arms Control and Disarmament Agency. Requires budget requests to include information of all funding and of all military and civilian personnel requested for that year for such monitoring and verification purposes.

Directs the President, no later than June 30, 1989, to report to the Congress on the relationship of arms control objectives of the United States with research and development of improved monitoring systems for arms control verification.

Title X: Matters Relating to NATO Countries and Other Allies - Increases the amount of liability that the United States may accrue in a fiscal year for the acquisition of supplies from NATO-member countries.

Amends the Arms Export Control Act to authorize the Secretary to waive certain sales charges (required as arms sales charges under such Act) made by DOD to the Maintenance and Supply Agency of NATO in support of certain weapons system partnership agreements.

Authorizes the Secretary, 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.

Expresses congressional findings relating to the need for the modernization of NATO's nuclear theater capability. Expresses the sense of the Congress that: (1) modernization of such theater is essential to the deterrence strategy of the NATO alliance; (2) continued U.S. modernization of such capabilities should be undertaken in close consultation with our NATO allies; and (3) the United States should proceed with ongoing activities for satisfying the identified alliance requirement for a Follow-on to the Lance missile (a new nuclear weapon deployment).

Directs the Secretary, at the same time annually that the President's budget is submitted to the Congress, to report to the Congress detailing the programs to be included in the NATO Defense Program.

Directs the Secretary, in consultation with the Under Secretary of Defense for Acquisition, to assign to duty in Israel an individual to serve as the primary liaison between the United States and Israel in procurement and research and development activities of their armed forces.

Amends the National Defense Authorization Act for Fiscal Year 1987 to require the annual report by the Secretary of Defense to the defense committees designating major non-NATO allies to enumerate only changes in countries designated.

Expresses the sense of the Congress that the President should continue negotiations with countries which participate in a common defense alliance with the United States (particularly NATO countries and Japan) in order to obtain an agreement for a more equitable apportionment of the burden of financial support for the alliances.

Makes certain congressional findings regarding Japanese contributions to global stability and the security of the leading industrialized democracies. Directs the Secretary to include within a report currently required under Federal law a report on Japan's overseas development assistance. Expresses the sense of the Congress that: (1) the President should enter into discussions with Japan to reach a more equitable distribution of the burden of financial support for the indivisible security of the leading industrialized democracies; (2) the objective of such discussions should be to establish a gradual increase in Japanese overseas development assistance to approximate the average level of such spending by current NATO-member nations; (3) the President should report to the Congress within 180 days after this Act's enactment on the progress of such discussions; and (4) if the President's report does not reflect substantial progress in the desired more equitable distribution of such cost-sharing burden, then the Congress should review the extent of the distribution of the mutual security between the United States and Japan and consider whether additional legislation is appropriate.

Title XI: Drug Interdiction and Law Enforcement Support - Directs the Secretary to provide annually to the Secretaries of the military departments and the commanders of the combatant commands written guidelines to direct the detection and monitoring of all potential aerial and maritime threats to the national security to the United States. Directs DOD to serve as the lead agency for the detection and monitoring of aerial and maritime transit of illegal drugs into the United States. Directs the President, no later than 15 days after the enactment of this Act, to designate another agency as such lead agency. Requires the President to notify the defense committees before making such designation. Requires the President to direct that all command, control, communications, and technical intelligence assets of the United States that are dedicated to the interdiction of illegal drugs be integrated by the Secretary into an effective communications network. Directs the President, no later than 90 days after the enactment of this Act, to report to the Congress on such integration. Directs the President, no later than 120 days after submission of such report, to develop a plan for the assignment of responsibility for operating the communications network and to report to the Congress on such plan.

Revises current Federal provisions relating to DOD assistance in civil law enforcement activities. Requires DOD, to the maximum extent practicable, to take into account the needs of civil law enforcement officials when planning and executing military training or operations. Authorizes the Secretary, for law enforcement purposes, to make available to such officials: (1) military equipment and facilities; and (2) DOD personnel to train in the operation and maintenance of equipment. Authorizes the Secretary to make DOD personnel available to maintain equipment for Federal, State, and local civilian law enforcement officials. Specifies purposes under which DOD personnel may operate equipment themselves to assist law enforcement agencies in the enforcement of drug, customs, and immigration laws, including (under certain conditions) the transportation of civilian law enforcement personnel in connection with law enforcement operations outside the land areas of the United States. Directs the Secretary to prohibit direct participation by a member of the armed forces in a search and seizure, arrest, or other similar activity unless participation by such member in such activity is otherwise authorized by law. Provides that support provided under these provisions will not be permitted if support would adversely affect the military preparedness of the United States. Directs the Secretary to require a civilian law enforcement agency to which support is provided under these provisions to reimburse DOD for such support.

Directs the Secretary and the Secretary of Transportation to provide that there be assigned on board every appropriate surface naval vessel at sea in a drug-interdiction area members of the Coast Guard who are trained in law enforcement and who have certain powers, including the power to make arrests and carry out searches and seizures. Outlines provisions concerning the functions and assigning of such Coast Guard personnel.

Directs the Secretary, in cooperation with the Attorney General, to conduct an annual briefing of law enforcement personnel of each State regarding information, training, technical support, equipment, and facilities available to civilian law enforcement personnel from DOD.

Authorizes the Secretary to provide to the Governor of a State funds sufficient to pay for all expenses of the National Guard of such State when engaged in drug interdiction assistance activities, provided that the Governor submits to the Secretary a plan specifying how such National Guard personnel are to be used. Directs the Secretary, before providing such funding, to consult with the Attorney General concerning the adequacy of the plan submitted by a State. Provides funds for such funding expenditures and directs the Secretary to prescribe training criteria for the National Guard to enhance their drug enforcement assistance capabilities. Directs the President, no later than 120 days after the enactment of this Act, to report to the Congress on the past effectiveness, as well as the future potential, of using National Guard personnel in such manner.

Authorizes appropriations to DOD for drug interdiction assistance activities and transfers specified FY 1987 naval aircraft procurement funds for such purpose. Prohibits the transfer of such funds until specified conditions have been met, including a congressional notice-and-wait period.

Directs the President to submit to: (1) the Congress a report on legislative proposals to enhance the capability of DOD to perform drug interdiction assistance activities, as well as an estimate of amounts necessary to provide such assistance; and (2) the defense committees a report assessing the potential effect of DOD's activities on drug interdiction and on the drug abuse problem in the United States along its southern border. Directs the Secretary to submit to the defense committee a report on aircraft pursuit and seizure incidents.

Title XII: General Provisions - Part A: Financial and Budget Matters - Authorizes the Secretary, in the national interest, to transfer limited amounts of authorizations contained in titles I through III between any such authorizations for that fiscal year. Directs the Secretary to notify the Congress of such transfers.

Increases from $2,000,000,000 to $4,000,000,000 the FY 1988 defense funds transfer authority. Allows the transfer of prior-year funds to FY 1988. Directs that special priority in such funds over $2,000,000,000 be given to: (1) funds for depot maintenance activities in a specified amount; and (2) funds for civilian and military personnel. Directs the Secretary to provide specified notice of such funds transfer to the Congress. Provides special limitations on such fund expenditures once total outlays exceed $2,000,000,000.

Part B: Fiscal Year 1988 Unauthorized Appropriations - Provides the authority for obligation of certain FY 1988 defense appropriations which exceeded FY 1988 authorizations, with specified exceptions and limitations. Repeals specified provisions of the Department of Defense Appropriations Act, 1988 made inconsistent by the above changes.

Part C: Naval Vessels and Shipyards - Expresses the sense of the Congress that the Secretary of the Navy: (1) should name the next Trident submarine to be named after the enactment of this Act the U.S.S. Melvin Price; and (2) should name an appropriate ship of the U.S. Navy the U.S.S. Bob Hope.

Amends Federal provisions regarding progress payments on naval ship repair contracts to make the current rates minimum rates (as opposed to the full rate).

Directs the Secretary of the Navy to ensure, in any case in which the Secretary awards a project for the repair, alteration, overhaul, or conversion of a naval vessel following competition between public and private shipyards, that certain criteria are met, including assuring that personnel retirement costs and costs associated with contract oversight are included in the final bid on the contract.

Provides that a naval vessel, the homeport of which is in the United States, may not be overhauled, repaired, or maintained in a shipyard outside the United States.

Directs the Secretary of the Navy to require that no less than one-half of the depot-level maintenance work to be carried out in Japan during FY 1989 through 1991 be carried out in the United States.

Directs the Secretary, during each of FY 1989 through 1991, to submit to the Congress a report on the effects of the Secretary's plans on the private sector maritime shipbuilding and repair industries in the United States.

Directs the Secretary of the Navy, within 90 days after the enactment of this Act, to report to the defense committees on compliance with an ongoing Federal program to encourage U.S. shipyards to construct combatant naval vessels for allies.

Requires the Secretary of the Navy, within 90 days after this Act's enactment, to report to the defense committees on circumstances and conditions regarding inventory and requirements for small naval patrol boats.

Part D: Miscellaneous - Directs the Secretary, no later than March 1, 1989, to report to the Congress on the susceptibility of vital DOD computer systems to so-called computer viruses, as well as the steps to be taken to protect against such viruses in DOD computer systems.

Expresses the findings of the Congress that a certain report (as required under the National Defense Authorization Act for Fiscal Years 1988 and 1989) contains insufficient detail with regard to the capabilities of the Soviet Union to intercept U.S. communications from their Mount Alto, District of Columbia site, and directs the President to submit a new report to the Congress within 60 days after the enactment of this Act.

Title XIII: Foreign Relations Matters - Expresses the sense of the Congress that the operations of the Southern Command in Panama are vital to U.S. national security, and should be continued.

Prohibits the obligation or expenditure of any assistance to the Panamanian Defense Force until the President has certified to the Congress that no armed forces of the U.S.S.R., Cuba, or Nicaragua are present in Panama and that General Manuel Noriega has relinquished command of the Defense Force and no longer holds any official position in the Republic of Panama. States that the President may still use funds for the defense of the Panama Canal, the collection of intelligence, the maintenance of U.S. armed forces in Panama, and the protection of U.S. interests there. Directs the President, within 30 days after this Act's enactment, to report to the Congress on the situation in Panama.

Expresses certain congressional findings concerning possible drug-related indictments against Panamanian General Manuel Noriega. Expresses the sense of the Congres that: (1) no negotiations should be conducted with Noriega which would involve the dropping of drug-related indictments against him; and (2) any negotiations or arrangement would send the wrong signal about the priority which the United States attaches to the war on drugs, would not further the restoration of a democratic government in Panama, and would not serve the overall national security interest of the United States.

Reaffirms the sense of the Congress as expressed under prior law that U.S. armed forces should not be introduced into or over Nicaragua for combat. States that such prohibition should not be construed to affect the authority and responsibility of the President or the Congress under the Consistution, statutes, or treaties in force.

Expresses congressional findings concerning human rights violations by the Polish Government. Expresses the sense of the Congress that: (1) the use of force against the workers of Nowa Huta and intimidation against other strikers in Poland should be condemned; and (2) improvements in relations between the United States and Poland should be predicated on an improvement in internationally-recognized human rights in Poland.

Outlines specific conditions for the transfer by the United States to Saudi Arabia of F-15 fighter aircraft, including model and numercial limitations. Authorizes the President to waive such restriction if he certifies to the Congress that it is in the national interest to do so.

Prohibits, during FY 1989, the sale of arms by the United States to any nation which has acquired intermediate-range ballistic missiles made by the People's Republic of China. Waives such restriction with respect to any nation which has acquired such missiles upon certification to the Congress by the President that such nation does not have chemical, biological, or nuclear warheads for such missiles. Directs the President, if he makes such certification, to promptly notify the Congress of any evidence that, since such certification, such nation has acquired such warheads for such missiles.

Expresses certain congressional findings regarding U.S. military bases in the Philippines. Directs the Secretary, no later than six months after the enactment of this Act, to report to the Congress on such facilities there. Requires such report to be prepared in consultation with the Secretary of State.

Directs the Secretary to provide to the Congress an annual assessment of security at U.S. bases in the Philippines.

Urges and authorizes the President to impose such economic sanctions upon Ethiopia as determined appropriate if Ethopia's Government engages in certain action with respect to forced resettlements or interference with international relief. Requires the President, at specified intervals, to report to the Congress on whether, during any of the previous period, the Government of Ethiopia engaged in any of the banned conduct, as well as the U.S. response to such conduct. Directs the President to issue regulations to implement any sanctions imposed. Terminates any sanctioning authority of the President under this provision as of June 1, 1990.

Title XIV: Department of Energy National Security Programs - Part A: National Security Programs Authorizations - Authorizes appropriations to the Department of Energy (DOE) for FY 1989 for operating expenses incurred and for plant and capital equipment necessary in carrying out national security programs involving: (1) weapons activities; (2) materials production; (3) defense waste and environmental restoration; (4) naval reactors development; and (5) capital equipment not related to construction. Places specified funding limitations for DOE for FY 1989 for the following programs and projects: (1) SDI; (2) inertial confinement fusion; (3) the short-range attack missile II; (4) special isotope separation; and (5) plutonium recovery modification.

Part B: Recurring General Provisions - Prohibits the use of funds appropriated pursuant to this title for: (1) the costs of a program exceeding 105 percent of the program authorization or $10,000,000 more than the amount authorized, whichever is the lesser; or (2) 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 expired since such statement was submitted.

Prohibits the total funds obligated pursuant to this title from exceeding the total amount authorized to be appropriated by this title.

Authorizes the Secretary of Energy to carry out any general plant project only if the maximum estimated cost of the project does not exceed $1,200,000. Requires reports to specified committees by the Secretary when the cost exceeds such amount.

Sets forth procedures for the approval of projects which exceed by more than 25 percent their estimated cost or authorized amount, 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 funds were appropriated.

Authorizes the Secretary to perform advance planning and construction design services in connection with any proposed construction project if the total estimated cost for such services does not exceed $2,000,000. Authorizes the Secretary to notify specified congressional committees of project details whenever the estimated cost of such planning and design exceeds $300,000. Requires specific authorization by law whenever such estimated costs exceed $2,000,000.

Authorizes the Secretary to perform emergency construction planning and design in order to meet the needs of national defense or to protect property or human life.

Makes funds appropriated for management and support activities and for general plant projects under this title available for all national security programs of DOE.

Part C: Miscellaneous Provisions - Directs the Secretary, within 30 days after this Act's enactment, to establish a review body to be known as the Program Review Group on Inertial Confinement Fusion (the Review Group). Requires the Review Group to review thoroughly the accomplishments, management, goals, and anticipated contributions of the defense inertial confinement fusion program, for both the civilian and military sectors. Requires an interim and final report from the Review Group to the Secretary, and a report from the Secretary to the defense and appropriations committees of the Congress at specified times, concerning the above program.

Authorizes the Secretary to make grants, conclude cooperative agreements, and supplement funds in order to assist communities affected by the closing of the N Reactor near Hanford Reservation, Washington.

Directs the Secretary to enter into a contract with the New Mexico Institute of Mining and Technology (the Institute) to conduct independent reviews and evaluations of the design, construction, and operations of the Waste Isolation Pilot Plant in New Mexico (the WIPP) as they relate to the protection of the public health and safety and the environment. Outlines contract and administrative provisions and provides funding.

Authorizes the Secretary to loan personnel and facilities to community development organizations near Hanford Reservation, Washington, in connection with the closing of the DOE nuclear reactor there. Authorizes the loaning of such personnel and facilities until September 30, 1990.

Authorizes the Secretary, at specified times, to submit to the defense committees a report on the construction and operation of a new nuclear production reactor, together with recommendations.

Makes certain congressional findings with regard to the nuclear test ban readiness program. Directs the Secretary to establish and support a program to assure that the United States is in a position to maintain the reliability, safety, and continued deterrent effect of its stockpile of existing nuclear weapons designs in the event that a low-threshold or comprehensive ban on nuclear explosives testing is negotiated and ratified within the framework agreed to by the United States and the Soviet Union. Requires an annual report from the Secretary to the Congress in regard to such program.

Part D: DOE Defense Nuclear Facilities Safety Oversight Board - Establishes as an independent organization within the executive branch the Defense Nuclear Facilities Safety Board (the Board). Outlines organizational provisions concerning the Board. Directs the Board to: (1) review and evaluate the content and implementation of standards relating to the design, construction, operation, and decommissioning of defense nuclear facilities of DOE at each DOE defense nuclear facility; (2) investigate any event or practice at such a facility which the Board determines has adversely affected, or may adversely affect, public health and safety; (3) have access to and analyze design and operational data from any DOE defense nuclear facility; (4) review and make recommendations to the Secretary regarding the design and construction of new DOE defense nuclear facilities; and (5) make recommendations to the Secretary with respect to all DOE defense nuclear facilities as necessary to ensure adequate protection of public health and safety. Empowers the Board to conduct hearings, subpoena witnesses, and use Government facilities in order to carry out its functions. Directs the Secretary to cooperate fully with the Board and to provide ready access to facilities, personnel, and information as needed. Requires the Board to make all of its recommendations available to the public and requires a response to such recommendations by the Secretary within a specified time. Directs the Secretary to transmit to the Board a plan for the implementation of each Board recommendation accepted by the Secretary and to implement such plans within a specified period. Requires the Board and the Secretary to take more immediate action when an imminent or severe threat to the public health and safety is involved. Requires the Board and the Secretary to submit annual reports to the defense committees, the appropriations committees, and the Speaker of the House with regard to recommendations and implementation of such recommendations. Provides for judicial review of the activities of the Board. Authorizes appropriations. Outlines other reporting requirements of the Board in connection with its responsibilities. Directs the Secretary to transfer to the Board necessary funds for the operations of the Board.

Title XV: National Defense Stockpile - Authorizes the President to dispose of specified National Defense Stockpile (NDS) materials determined to be excess to stockpile requirements during FY 1989. Sets limitations and conditions on the materials authorized to be so disposed. Authorizes the President to obligate a specified amount of funds from the National Defense Stockpile Transaction Fund for the acquisition and upgrade of stockpile materials and other authorized uses of such funds. Earmarks a specified amount of such obligated funds to initiate new programs for the upgrading of stockpile materials. Directs the Stockpile Manager to report to the Congress a plan for the upgrading of stockpile materials.

Title XVI: Civil Defense - Authorizes appropriations for FY 1989 to carry out the provisions of the Federal Civil Defense Act of 1950.

Division B: Military Construction Authorizations - Military Construction Authorization Act, 1989 - Title XXI: Army (SIC) - 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, carry out architectural and engineering services and construction design activities, and improve existing military family housing in specified amounts at specified installations. Authorizes the Secretary to make advances to the Secretary of Transportation for the construction of defense access roads for a specified amount at specified locations.

Authorizes appropriations to the Army for fiscal years beginning after FY 1988 for military construction, land acquisition, and military family housing functions. Limits the total cost of all military construction projects authorized under this title. Extends authorizations for certain FY 1985 through 1987 military construction projects.

Title XXII 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, carry out architectural and engineering services and construction design activities, and improve existing military family housing in specified amounts at specified installations.

Authorizes the Secretary to make advances to the Secretary of Transportation for the construction of defense access roads in specified amounts at specified installations.

Authorizes appropriations to the Navy for fiscal years beginning after FY 1988 for military construction, land acquisition, and military family housing functions.

Authorizes the Secretary to acquire a specified number of family housing units located on the Naval Air Station, Glenview, Illinois and in Sunnyvale, California. States the amount of charge to be made by the Secretary for the leasing of such units after acquisition by the Secretary. Terminates the authority of the Secretary to acquire such property on October 1, 1994.

Title XXIII: 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, carry out architectural and engineering services and construction design activities, and improve existing military family housing 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. Limits the total cost of all military construction projects authorized under this title. Extends authorizations for certain prior-year military construction projects.

Title XXIV: 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 three military family housing units and to improve existing military family housing units in specified amounts.

Authorizes the Secretary to contribute funds to the Government of the Netherlands for the U.S. share of the cost of the International Elementary and High School project in Brunssum, the Netherlands.

Amends the Military Construction Authorization Act, 1987 to extend through FY 1989 the authority of the Secretary to carry out military construction projects for the construction of conforming storage facilities.

Authorizes the Secretary to make advances to the Secretary of Transportation for the construction of defense access roads at Fort Meade, Maryland.

Authorizes appropriations to 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 military construction projects authorized in this title. Restricts the amount of funding permitted for use in planning and construction of a National Test Facility for the Strategic Defense Initiative at Falcon Air Force Base, Colorado.

Amends the National Defense Authorization Act for Fiscal Years 1988 and 1989 to relocate a military construction project (for the construction of an armed forces medical facility) in the United Kingdom.

Extends the authorization for a certain prior-year military construction project.

Authorizes the Secretary to enter into contracts for military construction projects to be accomplished at Fort Sill, Oklahoma, and Seoul, South Korea, under a specified condition.

Title XXV: North Atlantic Treaty Organization Infrastructure - Authorizes the Secretary to make contributions to the North Atlantic Treaty Organization (NATO) Infrastructure Program, and authorizes appropriations for such contributions.

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

Authorizes the construction of an aircraft parking ramp/holding pad at Yeager Airport, Charleston, West Virginia.

Authorizes the Secretary of the Air Force to use certain funds for the construction of Air Force facilities at the O'Hare Air Reserve Forces Facility, Illinois.

Title XXVII: Expiration of Authorizations; Effective Date - Provides, with specified exceptions, that all authorizations contained in title XXI through XXV of this Act for military construction projects, land acquisition, family housing projects and facilities, and contributions to the NATO Infrastructure Program shall expire on October 1, 1990, or the date of enactment of an Act authorizing military construction projects for FY 1991, whichever is later, except where appropriations have been obligated.

Title XXVIII: General Provisions - Part A: Program Changes - Increases from 20 to 32 years the authorized length of long-term facilties contracts entered into by the Secretary of a military department.

Increases from 36,000 to 38,000 the authorized number of family housing units that may be leased in foreign countries to provide military family housing.

Increases from $100,000 to $200,000 the maximum limit on real property transactions triggering a report by the Secretary concerned to the defense committees. Deletes a requirement of a report from the Secretary concerned to the appropriate congressional committees if the Secretary purchases an interest in land of more than $100,000.

Expands the authority of the Secretary to aid in planning local community adjustments to include the making of grants to aid in planning adjustments required by: (1) a publicly-announced planned major reduction in DOD spending that would directly and adversely affect a community; or (2) the encroachment of a civilian community on a military installation, if the Secretary determines, in either case, that such action would have an adverse consequence or would impair the continued operational utility of the military installation. Requires, in the case of the planned major reduction that such reduction will result in the loss of 1,000 or more full-time DOD and contractor employee positions over a five-year period in the locality in order to be eligible for such grant assistance.

Part B: Miscellaneous - Prohibits any funds appropriated under Division B of this Act from being used for any military construction project on Guam if any work is done by any person who is a nonimmigrant under the Immigration and Nationality Act, with a specified exception.

Amends the Military Construction Authorization Act, 1987 to increase the amount authorized for certain construction at the Brooke Army Medical Center, Fort Sam Houston, Texas.

Authorizes the Secretary to provide community planning assistance in specified amounts for communities located near: (1) newly-established light infantry division posts; (2) newly-established Navy strategic homeports; and (3) Whiteman Air Force Base, Missouri.

Directs the Secretary of the Army to administer Fort DeRussy, Hawaii, as the primary rest and recreation area for members of the armed forces in the Pacific. Prohibits funds appropriated to DOD from being used in any way for selling, leasing, renting, excessing, or otherwise disposing of any portion of land constituting Fort DeRussy.

Amends the Military Construction Authorization Act, 1987 and the Military Construction Authorization Act, 1988 and 1989 to authorize the use of certain excess funds for the future use and development of Fort DeRussy, Hawaii, with a specified exception.

Designates the library building on the Wurtsmith Air Force Base, Michigan, as the General Earl T. O'Loughlin Library.

Prohibits the Secretary of the Navy from constructing a hazardous waste storage facility for the Pearl Harbor Naval Shipyard at a location closer than 600 feet to a public school.

Directs the Administrator of General Services, in consultation with the Secretary of the Navy, to issue solicitations for proposals for the acquisition of such office space within the National Capital Region as determined necessary to meet the needs of the Navy. Directs the Secretary of the Navy, no later than 90 days after the date on which responses are received with respect to such solicitations, to report to the defense committees regarding such proposals.

Authorizes the Society of the Third Infantry Division to erect, in Arlington National Cemetery, a memorial in honor of the men of such Division who have served their country in World Wars I and II and Korea. Outlines administrative provisions concerning site selection, design and plans, and maintenance for such memorial. Terminates such authority five years after this Act's enactment, unless certain conditions are met.

Directs the President, within 30 days after enactment of this Act, to establish a Commission on Alternative Utilization of Military Facilities. Directs the Commission, on a biennial basis, to: (1) prepare a report listing active and non-active military facilities that DOD has identified as fit for closure, underutilized, or on the surplus property list; (2) identify those facilities that could be utilized or renovated as minimum security prisions or as housing for nonviolent persons for drug treatment; and (3) present such list to the President and the Congress.

Part C: Real Property Transactions - Authorizes the Secretary of the Army to convey certain land and improvements at the Reserve Forces Training Center, Alameda County, California to Alameda County and the city of Dublin, California, in exchange for certain land and improvements from the East Bay Regional Park District, Alameda County, California.

Authorizes the Secretary of the Army, subject to specified terms and conditions, to convey to the city of Lompoc, California, certain real property, to be used by the city for educational purposes. Provides for reversion if such property is not used for such prescribed purposes.

Authorizes the Secretary of the Navy to grant an easement to Orange County, California, for the construction and maintenance of flood control improvements at the northern boundary of the Marine Corps Air Station, El Toro, California. Provides the consideration for such conveyance, and provides additional terms and conditions to such conveyance.

Authorizes the Secretary of the Navy to convey to the San Diego Unified Port District of San Diego, California, certain real property in San Diego in exchange for certain parcels of land adjacent to the San Diego Naval Station. Prohibits the Secretary from entering into such an exchange until he has notified the defense and appropriations committees and 21 days have expired since such notice.

Directs the Administrator of General Services to transfer to the Secretary of the Navy certain real property near the Washington Navy Yard, Washington, D.C. Directs the Secretary to use specified funds for the redesign of a certain building on such property.

Amends the Military Construction Authorization Act, 1979 to include an additional parcel of land in a transfer between the Secretary of the Air Force and the Air Force Enlisted Men's Widows and Dependents Home Foundation, Inc.

Directs the Administrator of General Services to transfer to the Secretary of the Navy certain vacant land at the Suitland Federal Center, Suitland, Maryland, that the Administrator determines to be: (1) excess to present and future needs at the Center; and (2) adequate to accommodate the needs of the Navy for construction and operation of a Navy Intelligence Command Headquarters.

Authorizes the Secretary of the Air Force to sell or lease Air Force Plant No. 85 located in Columbus, Ohio, under specified terms and conditions.

Authorizes the Secretary of the Army to sell and convey a portion of Fort Jackson, South Carolina, under specified terms and conditions.