National Defense Authorization Act for Fiscal Year 1989

(Measure passed Senate, amended)

National Defense Authorization Act for Fiscal Year 1989 - Division A: Department of 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 aircraft, missiles, weapons and tracked combat vehicles, ammunition, shipbuilding and conversion, and for 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 - Prohibits the Secretary of the Army from selecting a second source for production of a certain assembled package for 155 millimeter M864 ammunition until the program enters full-rate production and the Secretary reports to the Senate and House Armed Services Committees (the defense committees) on an acquisition plan for the establishment of a second source for the program.

Places certain requirements, restrictions, or limitations on the following Navy procurement programs: (1) the Trident II Missile program; (2) the DDG-51 Destroyer program; (3) the 5-Inch Semi-Active Laser Guided Projectile program; (4) AH-1W Ground Support Equipment; and (5) AN/SQR-17A Acoustic Processors. Earmarks specified funds for: (1) the procurement of one DDG-51 class destroyer; and (2) certain electronic warfare equipment.

Prohibits FY 1989 Air Force funds from being obligated or expended in connection with the launch facility at Vandenberg Air Force Base, California.

Part C: Miscellaneous Provisions - Directs the Secretary of Defense, no later than December 1, 1988, to submit to the Congress a detailed report on the current and projected requirements of the Navy for aircraft.

Extends through April 30, 1997, the deadline for completion of the chemical demilitarization program (the destruction of lethal chemical weapons) under the Department of Defense Authorization Act, 1986. Directs the Secretary to notify the Senate and House Armed Services Committees (the defense committees) of any delays in meeting such deadline.

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

Part B: Program Requirements, Restrictions, and Limitations - Repeals a specified provision of the National Defense Authorization Act for Fiscal Years 1988 and 1989 which limited the funds authorized to be obligated for the AAWS-Medium (anti-tank weapon system) until the Secretary of the Army completed evaluation of the MILAN II anti-armor weapon system. Prohibits funds from being used for procurement or for research, development, test, or evaluation of the MILAN II or the Bofors BILL medium anti-tank system.

Earmarks specified funds for the Navy Trident II missile. Disallows any general defense program reductions to be taken from such program.

Prohibits the Secretary of the Navy, during FY 1989, from carrying out an electromagnetic pulse program in the Chesapeake Bay area in connection with the Electromagnetic Pulse Radiation Environment Simulator Program for Ships (EMPRESS).

Earmarks specified funds for the making of a grant to the National Center for Manufacturing Sciences in connection with a program of research relating to manufacturing technology.

Directs the Secretary to conduct a study to determine the feasibility of developing a common launch control system for the MX rail garrison program and the Small Intercontinental Ballistic Missile (ICBM) program. Directs the Secretary to proceed with such a system if it is found to be feasible and cost-effective. Directs the Secretary, through the Under Secretary of Defense for Acquisition, to conduct a review of the small ICBM program, requiring certain estimates as part of such review. Directs the Secretary to conduct a study of the potential vulnerability of a small ICBM system to special operations forces of a potential enemy or to domestic saboteurs. Directs the Secretary to submit the results of such studies, together with comments and recommendations, to the defense committees and the Senate and House Appropriations Committees no later than March 1, 1989. Earmarks funds for such studies and the Small ICBM and MX rail garrison programs.

Earmarks specified funds for the following defense agency programs: (1) an Optoelectronics Materials Center; (2) the Consolidated Department of Defense (DOD) Software Initiatives program; and (3) extended air defenses (tactical missile systems).

States the focus of the Balanced Technology Initiative program (BTI) to be the development of innovative concepts and methods of enhancing conventional defense capabilities, including the development of concepts and methods which will accelerate the rate of obsolescence of equipment, doctrine, and tactics of the Soviet Union and Warsaw Pact countries. States particular initiatives, programs, and weapons to be given emphasis under BTI. Earmarks specified funds for this program as well as for BTI programs authorized under prior defense authorization Acts. Requires the Director of Defense Research and Engineering to determine the amount of funds appropriated to the armed forces and the defense agencies for BTI. States that the Conventional Defense Initiative is not an element of BTI. Prohibits required defense budget reductions from being taken from BTI funds. Prohibits such earmarked funds from being used in connection with the Strategic Defense Initiative (SDI) program. Requires the Director, within 90 days after the enactment of this Act, to report to the defense and appropriations committees of the Congress on the implementation of these BTI provisions. Prohibits any funds from being obligated for BTI programs until such report has been received, and 30 days have elapsed since the receipt of such report.

Limits the obligation of funds for advanced tactical aircraft within the Navy and Air Force until the Secretary has made certain certifications to the Congress concerning sufficient budgeting for demonstration and validation programs in connection with such aircraft.

Limits the obligation of funding for combat identification systems until the Secretary has made certain certifications to the Congress relating to sufficient funding for specified parts and programs within such combat identification system.

Limits funding for specified air-to-air missile programs unless the Secretaries of the Navy and Air Force establish joint program offices for the co-development of such programs.

Limits the authorization of appropriations for specified defense programs. Directs the Secretary to reduce such authorized amount to achieve a total reduction of $10,000,000.

Earmarks specified funds for the purchase of high-technology manufacturing equipment and the installation of such equipment in a private, nonprofit center for advanced technologies for the purpose of training, in a production facility, machine tool operators in skills critical to the defense technology base. Outlines requirements necessary before the obligation of such funding, including a congressional notice-and-wait period.

Prohibits funding during FY 1989 for the BIGEYE binary chemical bomb until the Comptroller General makes certain certifications to the Congress relating to the testing, design, and production of such weapon.

Earmarks specified research and development funds for product evaluation activity conducted by DOD.

Part C: Strategic Defense Initiative - States the total amount to be obligated for the SDI program, stating specific amounts for each subsystem within SDI. States that funds appropriated to DOD may not be used to establish a Strategic Defense System Operational Test and Evaluation activity.

Directs the Secretary, no later than 90 days after 1989 funding for SDI is enacted by legislation, to submit to the defense and appropriations committees of the Congress a report on the allocation of SDI funding for FY 1989.

Prohibits funds appropriated or otherwise made available to DOD for FY 1989 from being obligated or expended: (1) for any development or testing of anti-ballistic missile systems, with a specified exception; or (2) for the acquisition of any material or equipment required to be used for the development or testing of anti-ballistic missile systems or components, with a specified exception. States that such limitation does not apply to certain SDI funds for FY 1989.

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

States certain findings of the Senate with regard to strategic missile modernization. Expresses the sense of the Senate that the authorization of funds in this Act for research and development in connection with the Small ICBM and the MX Rail Garrison does not constitute a commitment or express an intent by the Senate to provide funds to procure and deploy the Midgetman missile or to deploy any MX missiles in a rail-mobile basing mode or both.

Authorizes the Secretary of a military department, unless the quantity of a material in the National Defense Stockpile (NDS) is lower than the required amount, to loan to a foreign government supplies, materials, or equipment for the purpose of carrying out a program of cooperative research, development, testing, or evaluation. Authorizes the Secretary to accept as a loan or a gift such materials, supplies, or equipment for such purpose. Permits the materials, supplies, or equipment loaned to a foreign government under this provision to be consumed if the Secretary concerned: (1) determines that the success of the research or development depends on the consumption of such item; and (2) approves of the expenditure or consumption of such materials, supplies, or equipment.

Amends the National Defense Authorization Act for Fiscal Year 1987 to require an annual report concerning the designation of major non-NATO allies only when a country or countries have been added to or deleted from such list. (Currently, such report is required annually even if there have been no changes in such list.)

Authorizes funds made available for the University Research Initiative Program to be obligated in any State without regard to any limitation on the amount that may be expended under such program in any one State.

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

Earmarks specified funds to conduct a program to develop and demonstrate compliance monitoring capabilities in support of the Convention on the Prohibition of Chemical Weapons proposed by the United States in the Conference on Disarmament.

Title III: Operation and Maintenance - Part A: Authorization of Appropriations - Authorizes appropriations for FY 1989 for the operation and maintenance for the following: (1) the armed forces; (2) the defense agencies; (3) the Reserves; (4) the National Guard; (5) the National Board for the Promotion of Rifle Practice; (6) environmental restoration, defense; (7) the Court of Military Appeals; and (8) humanitarian assistance. Authorizes appropriations for FY 1989 for unbudgeted increases: (1) in fuel costs; and (2) as the result of inflation.

Authorizes appropriations for FY 1989 for working capital funds for the armed forces and the defense agencies.

Directs that the amount authorized for humanitarian assistance be used for the purpose of providing humanitarian relief to persons displaced as refugees because of the Soviet Union's invasion of Afghanistan. Specifies a certain amount of such assistance to be used for humanitarian relief supplies to the non-Communist resistance organization near the Thailand-Cambodian border. Authorizes the Secretary to transfer to the Secretary of State funds for such purpose. Provides that the transportation of such supplies shall be under the direction of the Secretary of State, requiring such transportation to be achieved by the most economical means possible. Directs the Secretary of Defense, within 60 days after the enactment of this Act and no later than June 1, 1989, and no later than June 1 of each subsequent year, to report to specified congressional committees until such funds are expended.

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

Directs DOD to establish a video teleconferencing center for the Tripler Army Medical Center.

Part B: Limitations - Prohibits the Secretary of the Navy, during FY 1989, from taking any steps to convert the operation of specified activities from the operation of an activity financed by the Navy Industrial Fund to operation as an activity financed by direct appropriations.

Part C: Permanent Law Changes - Prohibits a private contractor operating a commissary store on a military installation from procuring the products to be sold in such store or from managing such store. Requires DOD personnel to perform such functions.

Part D: Defense Supplies Security and Control - Directs the Secretary to carry out a study to determine the effectiveness of DOD procedures for ensuring security and control of supplies at DOD depots. Directs the Secretary, no later than 18 months after the enactment of this Act, to report to the defense committees on the results of the study, and to transmit a copy of such report to the Comptroller General. Directs the Comptroller General, within 90 days, to review the report and report to the defense committees any findings and recommendations on procedures for ensuring the security and control of such supplies. Directs the Secretary to: (1) conduct a cost-benefit analysis of the practice of selling surplus DOD munitions to the public; and (2) report to the defense committees, within 180 days after the enactment of this Act, describing and discussing each such practice. Directs the Secretary to: (1) develop improved methods of the identification and accounting for individual items of DOD supplies that are susceptible to pilferage; and (2) submit to the defense committees, no later than one year after the enactment of this Act, a report containing a description and discussion of each such method. Directs the Secretary to: (1) prepare a plan for the modernization of supply facilities and supply distribution procedures of each of the military departments and defense agencies; and (2) transmit a copy of such plan to the defense committees within one year after the enactment of this Act.

Directs the Secretary, no later than February 1 annually, to submit to the defense committees a report on security and control of DOD supplies for each of the three fiscal years following the fiscal year in which this provision is enacted. Outlines information to be included in such report, including a summary of inventory program plans, a discussion of deficiencies in security and control of DOD supplies in the preceding fiscal year, and available budget authority in order to implement improvements in the security and control of such DOD supplies.

Directs the Secretary to require an investigation of each discrepancy in an accounting for supplies of DOD involving an amount exceeding an amount as determined by the Secretary. Directs the Secretary to require that the job functions of supply ordering and supply receiving be performed by different individuals and offices. Directs the Secretary to ensure that: (1) DOD and armed forces personnel assigned to manage DOD supplies are skilled in the management of such supplies; and (2) no DOD employee or armed force member is assigned to perform such function for disciplinary reasons. Directs the Secretary to omit information from certain fiscal years in such report because of inadequate records.

Expresses the findings of the Congress that: (1) the use of undercover investigative techniques by DOD employees enhances the ability of DOD to detect and investigate theft of Government property from the DOD supply system; and (2) the Secretary is urged to continue such undercover investigations. Directs the Secretary to establish and maintain a centralized computer system for recording and organizing information on the loss of DOD supplies.

Directs the Secretary to report the theft or other loss of any ammunition, destructive device, or explosive material from the stocks of DOD to the Secretary of the Treasury within 24 hours after its discovery.

Title IV: Military Personnel Authorizations - Part A: Active Forces - Authorizes the end strengths for active-duty personnel of the armed forces as of September 30, 1989. Provides for reductions in FY 1990 in the end strength of active-duty officers in the officer corps and in the number of Air Force colonels.

Part B: Reserve Forces - Authorizes the end strengths for Selected Reserve personnel as of September 30, 1989. Authorizes the end strength for reserves on active-duty in support of the reserves for the same period. Increases the number of members in certain grades authorized to be on active-duty in support of the reserves.

Part C: Military Training - Authorizes the average military training student loads for the armed forces, the Reserves, and the National Guard for FY 1989, requiring such student loads to be adjusted consistent with end strengths authorized for military personnel in general.

Part D: Civilian Personnel - Authorizes end strengths for civilian personnel of DOD as of September 30, 1989. Outlines administrative provisions relating to the determination of such civilian personnel ceilings.

Title V: Military Personnel Policy - Requires information furnished to military personnel selection boards to include information relating to the need for either a minimum number or maximum number of officers with particular skills within a competitive category. Prohibits such information from being modified, withdrawn, or supplemented after the board submits its report to the Secretary of the military department concerned, except in limited circumstances. Revises provisions concerning actions to be taken by the Secretary after review of reports submitted by such selection boards. Limits the authority of the Secretary to delegate the authority delegated to the Secretary by the President to approve or disapprove the report of a selection board.

Amends the Military Family Act of 1985 to expand the preferenced hiring of qualified spouses of military personnel to include hiring for any GS-level positions. (Currently, such preference is limited to levels above the GS-1 level.)

Reduces from 90 days to 30 days the time that must elapse after the Secretary submits a manpower estimate to the defense committees before the Secretary may approve the full-scale engineering development of a major defense acquisition program. Waives such required period during time of war or national emergency declared by the Congress or the President. Reduces such period to ten days if such estimate submitted to the Secretary with respect to such program indicates that no increase in military or civilian end strength will be required.

Title VI: Compensation and Other Personnel Benefits - Part A: Pay and Allowances - Waives the automatic adjustment to military pay for FY 1989 in conformity with the GS-level adjustment applicable to Federal employees, instead authorizing an increase of 4.3 percent in the rate of basic pay, basic allowance for quarters, and basic allowance for subsistence. Increases cadet and midshipman pay for FY 1989.

Prescribes the weight allowances (for the transportation of household goods) authorized for members of the armed forces (and their dependents) according to a table which increases such allowance with each military grade increase.

Part B: Other Personnel Benefits - Authorizes the payment of a continuation bonus to an aviation officer who executes a written agreement to remain on active duty in aviation service for at least one year. Limits the maximum annual bonus to be so paid, and limits to eight years the length of such an agreement. Outlines administrative provisions relating to such bonus payment, including bonus prorating, officer applicability, and refund procedures in case of default by the officer concerned. Prohibits new agreements under current Federal special pay provisions for aviation career officers. Limits the total amount of bonus pay obligations that may be made by the Secretary of the Air Force during FY 1989 as the result of such agreements. Terminates the authority of the Secretary of a military department or the Secretary of Transportation to enter into such an agreement as of September 30, 1989. Directs the Secretary of Defense, no later than December 1, 1988, to submit to the defense committees a comprehensive report on the retention of aviators in the armed forces.

Authorizes the payment of variable special pay for medical officers within certain pay grades who have at least eight years of creditable service according to specified rates which vary depending on the length of such service (such special variable pay decreasing as the length of service increases). Authorizes the payment of additional special pay for an officer with at least eight years creditable service for any 12-month period that the officer is entitled to additional special pay due to having achieved the grade of 0-6 or above while serving in a medical officer capacity. Specifies the rates at which such higher-grade officers are to receive such additional special pay, such rate increasing as the length of service increases. Limits the total compensation to be paid to such officers to the total compensation paid to comparable physicians in private practice, as determined by the Secretary. Directs the Secretary, no later than November 15, 1988, to report to the defense committees describing the manner in which such additional pay authority is to be used. Directs the Secretary, no later than December 1, 1988, to report to the defense committees with: (1) the Secretary's recommendation for legislation necessary to attract and retain needed health-care professionals; and (2) the Secretary's assessment of the adequacy of the existing compensation system for such health-care professionals. Limits the total obligation for such additional payments in FY 1989. Terminates the authority to make such additional payments if such reports are not received in a timely manner.

Authorizes the payment of special pay, at an annual rate not to exceed $10,000, for officers of the Selected Reserve who are qualified in a specialty designated by regulations as a critically short wartime specialty and who execute a written agreement to serve in the Selected Reserve for no less than one year nor more than three years beginning on the date the officer accepts such special pay. Requires an appropriate refund when such officer fails to complete such additional duty. Terminates the authority to enter into such agreements as of September 30, 1990. Provides that such pay authority shall be used only for the purpose of conducting a pilot test program to determine its effect on the retention of officers who are qualified in critically short wartime specialties. Limits the total amount to be obligated for such pay authority for FY 1989. Directs the Secretary, no later than September 1, 1988, to report to the defense committees a description of the manner in which such pilot test program is to be structured.

Limits to the grade in which a member of the armed forces retired the computation of retired pay in the case of a member who, after initially becoming eligible for retired pay, is reduced in grade pursuant to a sentence of a court-martial.

Authorizes the Secretary of the military department concerned to pay a specified monthly annuity to any un-remarried surviving spouse of a member of the armed forces who: (1) died before November 1, 1953; and (2) was entitled to retired or retainer pay on his or her date of death. Requires such annuity to be reduced by other survivors' benefits to which such surviving spouse is entitled. Directs such annuity to be increased whenever military retired or retainer pay is increased.

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

Adds to the definition of a military "dependent" for travel purposes of military personnel any child for whom care and support is provided by the member pursuant to an order of custody issued by a court of competent jurisdiction.

Revises provisions relating to a civilian clothing allowance for members of the armed forces to allow such allowance only for officers who are required to wear such clothing as part of their regular duties. Permits (rather than requires) such clothing allowance to be paid.

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

Authorizes the un-remarried former spouse of a member or retired member of the armed forces to use commissary stores for the benefit of a dependent child if: (1) such former spouse has legal custody of such child; (2) such member is authorized to use commissary stores; and (3) such dependent child is unable to use such commissary stores because of administrative restrictions on the use of such stores by dependent children.

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, as added by this provision). Includes coverage while on practical military training of at least four weeks in duration for such candidates under applicable veterans' benefits provisions.

Part C: Health Care Provisions - Extends through 1991 the authority for the use by the armed forces of public health service hospitals, as authorized under the Department of Defense Authorization Act, 1984.

Repeals a specified provision of the National Defense Authorization Act for Fiscal Years 1988 and 1989 which requires a specified percentage of the growth in the number of Navy officers for such fiscal years to be allotted to Navy officers employed in certain health professions.

Includes within the definition of a military "dependent" the grandchild of a member if the grandchild is dependent on the member for over one-half of his or her support and if the parent of the grandchild qualifies as a dependent of the member or former member.

Title VII: Department of Defense Organization and Management - Increases from five to ten percent the number of waivers (from the requirement of either education in joint duty specialties or a tour of joint duty) authorized to be granted each year by the Secretary of Defense for assignments to the joint duty specialty. Requires, for critical joint duty assignments, that not less than 80 percent of the positions so designated by the Secretary shall be held at all times by officers who have the joint specialty.

Reduces the required length of a joint duty assignment: (1) in the case of general and flag officers from three to two years; and (2) in the case of all other officers from three and one-half years to three years. Authorizes the Secretary to decrease such required tour in the case of an officer who has a military occupational specialty designated as critical. Prohibits the Secretary, in any case, from prescribing the length of a joint duty assignment to be less than two years.

Adds to the list of assignments which will be considered full tours of joint duty the following: (1) a joint duty assignment outside of the United States for which the normal accompanied-by-dependents tour of duty is at least two years in length, if the officer serves in the assignment for at least the accompanied-by-dependents tour length; or (2) a joint duty assignment during which the officer is selected for promotion to the grade of brigadier general or real admiral (lower half), if the officer served at least two years in such assignment. Revises provisions concerning the determination of cumulative credit for purposes of the required length of joint duty. Authorizes the Secretary to accord constructive credit in the case of an officer who, for reasons of military necessity, is reassigned from a joint duty assignment within 60 days of meeting the tour length criteria, allowing an amount of constructive credit in the amount otherwise necessary to meet the required length, but in no case more than 60 days.

Modifies the definition of "joint duty assignment" to allow the Secretary to include as such an assignment, after consultation with the Chairman of the Joint Chiefs of Staff, not more than 250 assignments which the Secretary designates as assignments that provide significant experience in joint matters.

Provides as an exception to the normal requirement of joint duty tour of duty before promotion to general or flag officer the case of a Navy officer designated as a qualified nuclear propulsion officer, who may be promoted to rear admiral (lower half) without the required tour of joint duty. Provides a further exception to such requirement in the case of an officer who began a joint duty assignment before January 1, 1987, and served a period of sufficient duration (at least 12 months) in such position to have been considered a full tour of duty under regulations in effect at such time.

Amends the Goldwater-Nichols Department of Defense Reorganization Act of 1986 to make joint-duty-waiver provisions under such Act consistent with the above changes.

Directs the Secretary, after consultation with the Chairman of the Joint Chiefs of Staff, to submit to the defense committees a report on joint officer management policies. Requires such report to be submitted no later than February 1, 1990.

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

Adds U.S. elements of binational or multinational military commands to the forces to which the Secretary of a military department is required to assign forces under his or her jurisdiction.

Adds to the responsibility of the commander of the special operations command the submission to the Secretary of Defense of program recommendations and budget proposals for special operations forces.

Prohibits funds made available to DOD for FY 1989 from being used for: (1) establishing or operating an Office of the Assistant Secretary of Defense for Intelligence; or (2) paying the salary of such an Assistant Secretary.

Requires the advice and consent of the Senate for presidential appointments of General Counsels of the military departments.

Requires various information relating to defense capabilities assessments to be included in an annual report from the Secretary to the Congress on the defense capabilities and programs of the armed forces of the United States and its allies as compared with those of their potential adversaries. Requires each such report to be transmitted to the Congress at the same time that the President submits the budget to the Congress.

Title VIII: Acquisition Policy and Management - Directs the Secretary to develop each year, in conjunction with the five-year defense program submitted to the Congress in such year, a plan that ensures that the following policies of DOD are structured to meet the long-term needs of DOD for industrial resources and technology innovation: (1) policies relating to progress payments or other financing of contractors by DOD; (2) policies relating to the return on contractor investment under DOD contracts; and (3) policies relating to the division of contract risk between DOD and a contractor. Directs the Secretary to submit annually to the Congress a report which contains the above plan and an explanation of the manner in which the policies referred to above enhance the ability of DOD to obtain industrial resources and encourage technology innovation. Requires each such report to be submitted at the same time that the five-year defense program is submitted to the Congress.

Directs the Secretary to prescribe guidelines that provide that a fixed-price contract should be awarded in the case of a development program only when: (1) the level of program risk permits realistic pricing; and (2) the use of a fixed-price contract permits an equitable allocation or program risk between the United States and the contractor. Requires the Under Secretary of Defense for Acquisition to determine that such criteria have been met before a fixed-price contract in excess of $10,000 may be awarded. Limits the power of the Under Secretary to delegate such authority.

Declares that a defense contractor, when certain proposals (relating to the future availability and competition for items of procurement) are required to be submitted by a contractor as part of such contractor's proposal, shall not be required to provide for future competition between identical items for an item developed exclusively at private expense by a contractor or subcontractor, unless the head of the defense agency determines that: (1) the original supplier of such item will be unable to satisfy program schedule or delivery requirements; or (2) the price of such item in economic order quantities to the Government will not be reasonable based on an analysis of cost and performance comparisons with competing substitutes. Outlines further administrative provisions relating to such proposals.

Expresses congressional findings for the essential need of a strong defense industrial base for the enhancement of U.S. national security. Directs the Under Secretary of Defense for Acquisition to: (1) provide overall policy guidance and direction to the military departments and the defense agencies on matters relating to the maintenance, expansion, and readiness of the defense industrial base of the United States; (2) analyze the capabilities of the defense industrial base to fulfill requirements of the national defense strategy in time of peace or in time of war or national emergency; (3) develop and direct the implementation of plans and programs that promote the ability of the defense industrial base to meet certain production and readiness requirements; and (4) identify and plan for the procurement of items of supply that are suitable substitutes for military standard items of supply which are anticipated to be unavailable from existing sources in time of war or national emergency and which are commercially available from domestic sources. Directs the Under Secretary to require that each defense acquisition program designated by the Under Secretary include a requirement for an analysis of the capability of the defense industrial base to develop, produce, maintain, and support the system to be acquired under such program. Outlines factors to be considered as part of such analysis. Provides that the Under Secretary shall be responsible for compiling and analyzing the data obtained from such analysis to ensure that: (1) the capabilities of the defense industrial base to meet program requirements have been assessed by the military department or defense agency carrying out such program; and (2) the capabilities of the defense industrial base to meet the aggregate requirements for all such programs have been assessed by the Office of the Secretary of Defense.

Directs the Under Secretary to establish and implement acquisition policies which provide for: (1) expanded use of commercial manufacturing processes rather than military standard requirements; (2) elimination of barriers to, and facilitation of, the integrated manufacture of commercial items and items being produced under defense contracts; and (3) encouragement of the military departments and defense agencies to identify commercial items that are suitable substitutes for military standard items incorporated into weapon systems or other items of equipment.

Authorizes the Under Secretary to establish a defense production innovation center to be the principal office in DOD for the development of policies and plans regarding the conduct of programs for the improvement of the defense industrial base of the United States. Outlines action to be taken by the head of such center, the Defense Production Base Director, in regard to the improvement and enhancement of the defense industrial base of the United States.

Provides that the Under Secretary, during FY 1989, shall require each military department to initiate at least one analysis of the capability of the defense industrial base to develop, produce, maintain, and support systems to be acquired under acquisition programs carried out by such department. Requires all such analyses to be completed no later than September 30, 1990. Directs the Under Secretary, no later than February 1, 1991, to report to the defense committees on such analyses.

Directs the Secretary to consult with the Secretary of Commerce in the negotiation and renegotiation of memoranda of understanding between DOD and one or more foreign countries relating to defense trade, cooperation on defense research, or production of defense equipment. Directs the Secretary, no later than 30 days after any such memorandum is entered into, to report to the defense committees a description of the anticipated effects of the implementation of such memorandum on the defense industrial base of the United States. Authorizes the President to waive such requirement in the event of war or national emergency.

Makes certain congressional findings with regard to DOD offset policy (the making of contracts with foreign firms where some or part of the work under such contract or investment under such contract must be performed by or invested in such foreign firm or foreign country). Directs the Secretary, acting with and through other designated officials, to establish a comprehensive policy with respect to contractual offset arrangements. Prohibits any U.S. official from entering into a memorandum of understanding or other agreement with a foreign government that would require the transfer of U.S. defense technology to a foreign country or foreign firm in connection with a contract that is subject to an offset arrangement, if the implementation of such memorandum or arrangement would significantly and adversely affect the defense industrial base of the United States and would result in a substantial financial loss to a U.S. firm. Waives such prohibition if such waiver will result in strengthening the national security of the United States and is so certified to the Congress by the Under Secretary. Requires any U.S. firm entering into a contract with a foreign firm subject to an offset arrangement exceeding $50,000,000 in value to notify the Secretary of the proposed sale.

Directs the Secretary to enter into negotiations with foreign countries that have a policy of requiring an offset arrangement in connection with the purchase of defense equipment or supplies from the United States, pursuing an agreement to: (1) limit the effect of such arrangements on the defense industrial base of each such country; and (2) prohibit such offset arrangements after a specified date. Directs the Secretary to attempt to achieve, within two years after the enactment of this Act, an agreement limiting the adverse effects of such arrangements, and, within four years after the enactment of this Act, a final agreement prohibiting such arrangements. Directs the Secretary to report to the Congress at least once each year for four years on the progress of such negotiations. Directs the Secretary, no later than November 15, 1988, to report to the defense committees on contractual offset arrangements required of U.S. firms for the supply of weapon systems to foreign countries or foreign firms. Directs the Secretary, no later than March 15, 1989, to report to the defense committees a discussion of appropriate actions to be taken by the United States with respect to purchases from U.S. firms by a foreign country when that country or firm requires an offset arrangement in favor of such country.

Requires that certain Federal regulations concerning the allowability of contractor costs shall provide that foreign selling costs shall be allowed to the extent that such costs are: (1) allocable, reasonable, and not otherwise unallowable; and (2) within dollar ceilings established in advance agreements negotiated between the Secretary and the contractor or subcontractor during the fiscal year covered by such arrangement and entered into after the Secretary determines that cost savings to the United States will result.

Allows the awarding of a defense contract under procedures other than competitive procedures in the case of a contract run by the Under Secretary of Defense for Acquisition if the senior level official designated by the Under Secretary approves the justification of such contract.

Adds to the purposes of the procurement technical assistance cooperative agreement program the encouragement of eligible entities to furnish to business entities procurement technical assistance that facilitates the exporting of defense-related products and services by such business entities. Revises provisions to limit the value of the assistance furnished by the Secretary to any eligible entity to carry out a program of procurement technical assistance under a cooperative agreement, allowing one amount for a program operating on a State-wide basis and a lesser amount in the case of a program operating on less than a State-wide basis. Extends through FY 1989 the authority for procurement technical assistance for Indian tribal organizations.

Directs the Under Secretary, no later than December 1, 1988, to report to the Congress on the current programs regarding simplification of procedures governing the acquisition process of DOD and an assessment of the results of those programs. Requires policies prescribed by the Under Secretary to provide for coordination of the annual plans developed by different elements of DOD for the conduct of oversight and audit functions within each contracting activity.

Directs the Secretary to establish an advisory panel to study and make recommendations to the Secretary on ways to enhance cooperation between DOD and industry regarding matters of mutual interest, including: (1) procedures governing the debarment and suspension of contractors from doing business with DOD; (2) the role of self-governing oversight programs established by defense contractors; (3) expanded use of alternative dispute resolution procedures; and (4) the desirability of establishing a permanent advisory panel on government-industry relations. Directs the Secretary to submit a copy of the panel's report, together with the Secretary's comments and recommendations, to the Congress.

Expresses the sense of the Congress that the evaluation by DOD of professional and technical services contract proposals should be made on the basis of a 40-hour work week standard.

Directs the Secretary, no later than April 1, 1989, to report to the defense committees on the extent to which institutions of higher education offer and conduct educational programs and courses on Government contracting and acquisition management.

Directs the Secretary to complete a certain study, initiated by DOD in 1985, concerning the supply of minority and women scientists, engineers, and technologists needed by defense industries and DOD to fulfill the national defense mission.

Directs the Secretary to prescribe by regulation the authority and responsibilities of DOD acquisition program managers and contracting officers.

Establishes within DOD an office for the supervision and coordination of product evaluation activities within DOD. Authorizes the Secretary of each military department and the head of each defense agency to establish and conduct a product evaluation activity. Requires the producer of the product evaluated to pay one-half of the cost of conducting such evaluation.

Directs the Under Secretary, no later than March 15 annually, to report to the defense committees a plan for developing the 20 technologies considered by the Secretary and the Secretary of Energy to be the technologies most essential to develop in order to ensure the long-term qualitative superiority of U.S. weapon systems. Requires both product and process technologies to be considered in selecting the technologies to be included in such plan.

Directs the Inspector General of DOD to: (1) conduct periodic audits of contractual actions by the defense agencies, DOD field activities, and the military departments; and (2) after each audit, report to the Congress on the management of undefined contractual obligations by the head of an agency.

Deletes the requirement of the use of a competitive prototype program strategy in the development of a subsystem of a major weapons system (requiring such strategy only in the development of the major weapons system itself).

Amends the Small Business Act to provide that a subcontracting plan negotiated by a Federal agency and a contractor for specified purposes shall apply to the contractor or, if the plan so provides, only to the organizational components of the contractor that perform the contract.

Revises provisions concerning the necessity of a Small Business Administration certificate of competency in the case of a small purchase defense contract (a contract for an amount which does not exceed $25,000).

Provides that the Secretary of a military department procuring a spare or repair part that is critical to the operation of an aircraft shall require the contractor to supply a part that meets applicable qualification and quality requirements. Defines such qualifications.

Title IX: General Provisions - Part A: Financial and Budget Matters - Authorizes the Secretary, as deemed necessary in the national interest, to transfer amounts of authorizations made available to DOD in titles I through III for any fiscal year between any such authorizations for that fiscal year. Limits the total amount that may be so transferred. Directs the Secretary to promptly notify the Congress of any such transfers made.

Amends the National Defense Authorization Act for Fiscal Years 1988 and 1989 to increase the amount authorized to be transferred between authorizations for that fiscal year in that Act or any prior defense authorization Act. Requires the Secretary, in determining the purpose for which such transferred amounts will be used, to: (1) ensure that an appropriate portion is used for the payment of FY 1988 depot maintenance activities and civilian personnel salaries; (2) give special consideration and priority to civilian personnel of DOD, readiness, and more efficient acquisition processes; and (3) provide funds for other high priority readiness items.

Prohibits the obligation or expenditure of specified funds appropriated for the following programs in the Department of Defense Appropriations Act, 1988: (1) Maxicube cargo system under research, development, test, and evaluation for the Army; (2) Coastal Defense Augmentation; (3) AN/SQR-17 Acoustic Processors for the Mobile In-Shore Undersea Warfare Group; and (4) P-3C aircraft under procurement of National Guard and Reserve equipment.

Prohibits Army procurement funds from being obligated or expended for a certain air defense system unless the Secretary of Defense certifies to the Congress that the system has met or exceeded full system requirements.

Prohibits Navy aircraft procurement funds from being obligated or expended for procurement of any A-6 aircraft configured in the F model configuration.

Permits the use of specified funds appropriated for the modification of M60 tanks for procurement or modification of M1 tanks.

Provides that, for purposes of certain transfer authority provided under the National Defense Authorization Act for Fiscal Years 1988 and 1989, the above amounts prohibited from being obligated or expended under the Department of Defense Appropriations Act, 1988 shall be deemed to have been authorized under such Act in equal amounts to the Army, Navy, and Air Force for operation and maintenance to prevent the furlough and separation of civilian employees, and for funding other high-priority readiness programs.

Part B: Miscellaneous Matters - Expresses certain congressional findings regarding confidence-building measures designed to increase openness and predictability of military activities in Europe. Expresses the sense of the Congress that the President should give high priority to developing stabilizing and verifiable proposals for expanding the regime of confidence-building measures (with regard to the verification of military activities in Europe) in light of a specified international conference and talks on such subject.

Amends the Department of Defense Authorization Act, 1986 to add specific information (relating to Soviet compliance with, or violations of, applicable arms control agreements) in a report due annually from the President to the Congress under such Act.

Directs the President, no later than December 1 annually, to submit to the Congress a report containing a comprehensive discussion and analysis of the arms control strategy of the United States. Outlines specified information to be included in such report, including the current military balance between the United States and the Soviet Union, as well as the military balance between the NATO countries and the Warsaw Pact countries. Requires the President, in making such report, to explain the methodology used in determining the military balances.

Increases the amount of liability that the United States may accrue in a fiscal year for the acquisition of supplies from NATO-member countries.

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

Increases to $100,000 the maximum amount of an advance payment (before final settlement of a claim) that may be made for any person who was injured or killed, or whose property was damaged or lost, under circumstances for which allowance of a claim is authorized by law. Authorizes the Secretary of a military department to delegate the authority to make such payment in an amount not to exceed $25,000.

Revises annuity computation provisions for judges of the U.S. Court of Military Appeals who complete their terms of service. Prohibits an annuity reduction for judges who complete their appointed terms. Provides an annuity computation for a former judge of the U.S. Court of Military Appeals who is retiring under immediate retirement provisions, such computation taking into account all service as a Member of Congress, a congressional employee, and a judge.

Authorizes the Secretary of the military department concerned to accept from any person voluntary attorney, paralegal, clerical, or related services for members of the armed forces.

Authorizes the Secretary of the Navy to lease aircraft for Fleet Electronic Warfare Support Group activities if the cost of such leasing is less than the cost of operating and maintaining the same number of existing Navy aircraft.

Makes certain congressional findings relating to the special operations airlift. Expresses the sense of the Congress that: (1) a plan (relating to the operation of such airlift previously submitted to the Congress by the Secretary of Defense) is a sound proposal to redress the serious deficiency in airlift capacity for special operations forces; (2) the Secretary should formulate a five-year defense program for FY 1990 through 1994 that includes sufficient funds for the procurement or modification of airlift aircraft; and (3) the President should submit budgets to the Congress for FY 1990 through 1992 that include sufficient funds for the procurement or modification of such aircraft used for such airlift.

Directs the Secretary to: (1) close all military installations recommended for closure by the Commission on Base Realignment and Closure; (2) realign all military installations recommended for realignment by the Commission; and (3) initiate all such closures and realignments no later than September 30, 1991, and complete all such closures and realignments no later than September 30, 1995. Outlines conditions required to be met before taking such action (prior congressional notification and recommendations for closure by the Commission). Terminates the authority of the Secretary to carry out any closures or realignments on October 1, 1995. Provides for reports and statements required of the Commission to the Secretary and the Congress in carrying out their recommendation responsibilities. Directs the Secretary to take all necessary action to implement such recommended closures or alignments, including the provision of: (1) economic adjustment assistance to any community located near a military installation being closed or realigned; and (2) community planning assistance to any community located near a military installation to which functions are to be transferred as a result of such closure or realignment. Authorizes the Secretary to carry out activities for the purpose of environmental restoration of such affected areas. Directs the Secretary, before any sale or exchange of real property or a facility is made due to such base closure or realignment, to inform other instrumentalities of the Federal Government of the availability of such property and to transfer such property for fair market value to any such instrumentality offering to purchase such property. Outlines further action to be taken by the Secretary if there are no instrumentalities of the Government desiring to purchase such property at fair market value, including selling such property to another Government entity at less than fair market value. Directs the Secretary to provide, as part of such a conveyance under the above provisions, that title shall revert to the United States if such property or facility is used for any purpose other than the one for which it was conveyed.

Directs the Secretary to transmit to the Congress, as part of each annual request for authorization of appropriations: (1) a schedule of the closure or realignment actions proposed and an estimate of the total resulting cost savings; and (2) a description of the military installations to which functions are to be transferred as the result of such closures or realignments, together with the Secretary's assessment of the environmental consequences of such transfers. Directs the Secretary to conduct a study of actions planned with respect to military installations outside the United States which may affect the recommendations of the Commission, and to report to the appropriate congressional committees, no later than September 15, 1988, on the findings and conclusions of such study. Directs the Secretary to notify the appropriate congressional committees when: (1) a decision is made to carry out a construction project for a military installation; and (2) the cost of the project will be greater than the maximum amount for a minor construction project.

Establishes in the Treasury the Department of Defense Base Closure Account. Authorizes appropriations and provides for the deposit of funds for such Account. Directs the Secretary, no later than 60 days after the end of each fiscal year in which the Secretary carries out activities under the above provisions, to report to the appropriate congressional committees on the amount and nature of deposits into, and the expenditures from, the Account during such fiscal year. Directs the Secretary, no later than 60 days after the termination of his or her authority to carry out an alignment or closure, to report to the appropriate congressional committees an accounting of all funds deposited into, expended from, and remaining in, such Account.

Prohibits the Secretary from taking any action with regard to the report of the Commission if, within 45 days after the Congress receives such report, the Congress enacts a joint resolution disapproving the Commission's plan.

Expresses congressional findings relating to the need for the modernization of NATO's nuclear theater capabilities. Expresses the sense of the Senate that: (1) modernization of such capabilities 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 Lance (a new nuclear weapon deployment).

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. Requires each defense contract awarded by DOD to include a provision requiring contractor personnel to travel using such discount rates, unless other travel is required for the performance of the contract.

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 October 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.

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.

Expresses Senate findings concerning human rights violations by the Polish Government. Expresses the sense of the Senate that: (1) the regime of General Wojciech Jaruzelski is condemned for violating the fundamental rights of the people of Poland; and (2) any improvements in relations between the United States and Poland must be predicated on a fundamental improvement in human rights in Poland, including the release of political prisoners, the rights of independent trade unions to organize, and steps toward genuine national reconciliation and dialogue.

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

Directs the Secretary of Defense, no later than January 15, 1989, to report to the Congress detailing the programs to be included in the NATO Defense Program.

Earmarks specified funds for the Global Positioning System and for Space Boosters.

Expresses certain congressional findings regarding U.S. military bases on the Philippines. Directs the Secretary, no later than 90 days after the enactment of this Act, and in consultation with the Secretary of State, to prepare and transmit to the Congress a study of: (1) the costs and benefits of relocating such bases to potential alternative host countries; (2) the cost and benefits of maintaining such bases in the Philippines; and (3) any alternative means of funding payments to the host country of such bases.

Directs the Secretary, no later than 90 days after the enactment of this Act, to prepare and transmit to the Congress a review of the current and planned defense assets that might be utilized to reduce and prevent unlawful foreign fishing in the U.S. Exclusive Economic Zone.

Prohibits the sale of arms to be made by the United States to Saudi Arabia or any other nation in the Middle East which has procured certain Chinese-made missiles, unless the President has first certified to the Congress that such nation does not have chemical, biological, or nuclear warheads for such missiles. Requires separate certification for each proposed arms sale.

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.

Expresses certain congressional findings concerning missile technology personnel deficiencies. Expresses the sense of the Senate that: (1) the Secretary should file a certain report specifying personnel requirements to implement the Missile Technology Control Regime Policy as soon as possible, but no later than July 30, 1988; and (2) DOD personnel deficiencies which prevent effective performance of missile technology control responsibilities should be rectified as soon as possible.

Urges the President to ensure that any military base closing commission established by this or any other legislation: (1) takes into account the total economic cost to the country as a whole in making decisions regarding the closing or functional realignment of any military installation; and (2) is appropriately briefed on basing requirements and implications before issuing any report recommending the closing or realignment of any military installation.

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.

Outlines specific conditions for the transfer by the United States to Saudi Arabia of F-15 fighter aircraft, including model and numerical limits.

Provides that no country signatory to the Final Act of the Conference on Security and Cooperation in Europe (the Helsinki Final Act) which did not enjoy a most favored nation trade status as of May 1, 1988, shall be extended such status unless the President certifies to the Chairmen of the Foreign Relations and of the Foreign Affairs Committees that such country is in complete compliance or in substantial compliance with such Final Act, particularly the human rights and humanitarian affairs provisions. Identifies "substantially complete compliance" for purposes of such provision.

Expresses congressional findings regarding the need for 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.

Expresses congressional findings concerning military assistance in Federal drug enforcement activities. Directs the Secretary to provide annually to the Secretaries of the military departments and to the Commanders of the combatant commands written guidelines to direct the effective detection by the military of all potential aerial and maritime threats to the national security of the United States. Directs the President, no later than 30 days after this Act's enactment, to designate a single lead agency for detection and monitoring of aerial and maritime transit of illegal drugs into the United States. Directs the President, no later than 90 days after this Act's enactment, to report to the Congress his plan for integration of DOD of command, control, communications, and intelligence assets of the United States dedicated to the interdiction of illegal drugs. Directs the President, no later than 120 days after the enactment of this Act, to report to the Congress his plan for assignment of responsibility for operating the command, control, communications, and intelligence network described above. Directs the President, as soon as practicable after the enactment of this Act, to deploy radar surveillance aircraft in sufficient numbers for such drug interdiction purposes. Directs DOD to make available to the Coast Guard and Customs Service aircraft to be used by such agencies for such drug interdiction purposes. Authorizes specially-trained members of the armed forces to assist or perform any of the law enforcement functions of the Coast Guard for such drug interdiction purposes. States that any action brought against any members of the armed forces relating to the performance of such drug interdiction shall be considered an action against the United States, with all appropriate defenses available to the United States.

Authorizes the Secretary to provide to the Governor of a State who submits a plan which specifies how that State's National Guard personnel are to be used in drug interdiction operations sufficient funds for the pay, allowances, clothing, subsistence, and certain other expenses for such personnel. Directs the Secretary, before such funds are provided, to consult with the U.S. Attorney General as to the adequacy of the plan submitted by the Governor to the Secretary. Directs the President, no later than 90 days after the enactment of this Act, to report to the Congress on the potential effectiveness of using the National Guard and Reserves for drug interdiction efforts along the borders and at ports of entry into the United States. Directs the President, no later than September 1, 1988, to report to the Congress on legislative proposals to enhance the capability of DOD to perform such drug interdiction assistance functions.

Expresses certain congressional findings concerning possible drug-related indictments against Panamanian General Manuel Noriega. Expresses the sense of the Congress 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 arrangements 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.

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 replacements for a previous system, to report to the Congress on the new systems.

Expresses Senate findings concerning the need to protect non-nuclear cruise missiles in light of the nuclear weapons reductions as a result of the Strategic Arms Reduction Talks (START). Expresses the sense of the Senate that in START, no restrictions shall be established on current or future non-nuclear cruise missiles.

Directs the Secretary to study and report to the defense committees no later than March 1, 1990, on the approximate quantity of disposable plastic items that are used annually and on which of such items are and are not biodegradable.

Expresses congressional findings concerning the use of small Navy patrol boats to carry out certain missions. Directs the Secretary of the Navy, within 60 days after this Act's enactment, to report to the Congress regarding the capability of the Navy to carry out missions requiring the use of small patrol boats.

Directs the Secretary of Defense, within 120 days after the enactment of this Act, to issue regulations that prohibit a contracting officer: (1) from knowingly receiving any offer in connection with a contract awarded by DOD from an officer or employee of the Federal Government or from any business concern owned or substantially owned by one or more of such officers or employees; and (2) from knowingly awarding a contract to any person who received an offer from such person in connection with such contract or to any business concern who received an offer from such person in connection with such contract. Permits exceptions in the interest of national security.

Amends the National Defense Authorization Act for Fiscal Year 1987 to authorize printing, binding, and related services needed by DOD to be procured from small business concerns, historically black colleges and universities, and minority institutions.

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.

States that the Congress: (1) condemns the Government of Ethiopia for its blatant disregard for human life as demonstrated by its human rights record; (2) urges the Government of Ethiopia to allow foreign relief personnel to return and allow the international relief campaign to resume oerations; (3) urges rebel groups to cease attacks upon relief vehicles and relief distribution points; (4) urges the President and the Secretary of State to press for an "open roads/own risk" policy that will allow for resumption of international relief efforts in northern Ethiopia, to press the Ethiopian Government and the rebels to reach a lasting settlement, and to press the Government of Ethiopia to implement genuine and effective reform in its failed agricultural policies; and (5) urges the President and the Secretary of State to engage in direct discussion with the U.S.S.R. in order that peaceful resolution of the crisis in northern Ethiopia becomes a high Soviet priority and that the approach of the Soviet Union is consistent with that of the West.

Urges and authorizes the President to impose such economic sanctions upon Ethiopia as determined appropriate if the Government engages in certain actions 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 in order to implement any sanctions imposed.

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

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 prisons or as housing for nonviolent persons for drug treatment; and (3) present such list to the President and the Congress.

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 been removed as Commander of the Defense Force there, barred from all offices and authority, and prohibited from designating a successor. Directs the President, ten days after the enactment of this provision, to report to the Congress on: (1) whether such banned military personnel are present in Panama; and (2) whether the Panamanian Defense Force has worked with or received support from such personnel.

Requires that, in authorizing the civilian and military end strength for DOD personnel in any fiscal year, account should be taken for the number of such personnel that will be assigned to on-site inspection activities during such fiscal year.

Division B: Military Construction Authorizations - Title XXI: Army - Authorizes the Secretary of the Army to acquire real property and carry out military construction projects in specified amounts at specified installations and locations. Authorizes the Secretary to construct or acquire military family housing, 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. Earmarks specified funds for a certain shipyard modernization project at the Portsmouth Naval Shipyard, Portsmouth, New Hampshire. 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 acquire a specified number of family housing units located on the Naval Air Station, Glenview, Illinois. 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.

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. Limits the total cost of all military construction projects authorized under this title.

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.

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.

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. Extends authorizations 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, Korea, in advance of appropriations therefor 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 appropriations for the following military construction projects: (1) an aircraft parking ramp/holding pad at Yeager Airport, Charleston, West Virginia; and (2) the Army Reserve Center, Gordo, Alabama.

Title XXVII: Expiration of Authorizations; Effective Date - Provides, with specified exceptions, that all authorizations contained in titles 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: Miscellaneous - 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.

Authorizes the Secretary, in addition to any other grant authority, to provide community planning assistance grants for: (1) communities located near newly-established light infantry division posts; and (2) communities located near newly-established Navy strategic dispersal program homeports. Terminates such grant authority on September 30, 1991.

Amends the Military Construction Authorization Act, 1984 to allow (currently requires) a rental housing lease agreement to include a provision rendering the agreement null and void if the owner of the housing fails to maintain a satisfactory level of operation and maintenance. Authorizes the Secretary of a military department (or the Secretary of Transportation, in the case of the Coast Guard), in the case of housing located on land owned by the United States and with respect to which housing is guaranteed, to: (1) require the United States to provide utilities, trash collection, snow removal, and entomological services at no cost to the occupant to the same extent that such services are provided to occupants of Government-owned housing; and (2) provide for rent collection and for operation and maintenance under a separate contract or use Government personnel to provide such services.

Increases from 20 to 32 years the authorized length of long-term facilities 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.

Deletes a Federal provision prohibiting a military construction project to be placed under contract if there are variations of more than 25 percent in either the scope of the work to be performed or the project cost over the project ceiling. Deletes a provision allowing the project approved amount to be increased upon certain determinations by the Secretary concerned. Revises provisions relating to the waiver on limitations on cost increases if certain conditions occur (such as written notification to the appropriate congressional committees followed by a waiting period).

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.

Directs 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, no later than 90 days after the date on which the Secretary receives responses to the proposal solicitations, to report to the defense committees regarding such proposals.

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 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 yars after the enactment of this Act, unless certain conditions are met.

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.

Part B: Real Property Transactions - 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.

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.

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

Authorizes the Secretary of the Army to convey to the city of Lompoc, California all rights and interest to specified real proerty, to be used by such City for educational purposes only, and subject to reversion otherwise.

Division C: Other National Defense Authorizations - Title XXXI: 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) defense nuclear materials production; (3) environmental restoration and management of defense waste and transportation; (4) verification and control technology; (5) nuclear materials safeguards and security technology development program; (6) security investigations; and (7) naval reactors development.

Limits the amount of such DOE funds that may be obligated or expended for the following: (1) programs, projects, and activities of DOE relating to SDI; and (2) the inertial confinement fusion program. Restricts the obligation of funds for: (1) the short-range attack missile II; and (2) the construction of a cooling tower at the K reactor, Savannah River Plant, South Carolina.

Authorizes certain remaining unobligated balances to be transferred and made available, to the extent provided in an appropriation Act, for the Defense Waste and Environmental Restoration activities at Richland, Washington, to be used in specified amounts for operating expenses, construction, and capital equipment.

Provides that funds made available for DOE for the special isotope separation project in Idaho Falls, Idaho, may not be obligated or expended for site preparation for such project before March 1, 1989.

Part B: Recurring General Provisions - Prohibits the use of funds authorized under this title for any program where the costs of the program exceed by five percent or by more than $10,000,000, whichever is less, the amount authorized for that program under this title. Prohibits the use of funds authorized by this title for programs which have not been presented to, or requested of, the Congress unless the Secretary of Energy transmits to the appropriate committees a full and complete statement of the action proposed and 30 days have 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 authorized general plant construction project only if the maximum estimated cost of the project does not exceed $1,200,000. Requires reports from the Secretary to specified committees when revised costs of a project exceed such amount.

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

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

Authorizes the Secretary to perform advance planning and construction design services in connection with any proposed construction project if the total cost does not exceed $2,000,000. Requires the Secretary to notify the appropriate committees whenever such planning and design exceeds $300,000, and requires specific legislative authorization whenever such services exceed $2,000,000.

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

Makes funds authorized for operating expenses and plant and capital equipment under this title available for all national security programs of DOE.

Authorizes increases in amounts authorized under this title in order to account for increases in salary, pay, retirement, and other benefits as authorized by law.

Part C: Miscellaneous Provisions - Directs the Secretary of Energy to request the National Academy of Sciences (NAS) to conduct a review of the inertial confinement fusion program of DOE and to submit to the defense committees, no later than January 15, 1990, and September 15, 1990, reports on the results of such review. Directs the Secretary to review such reports and, no later than 30 days after receipt of each, to submit to the same committees comments and recommendations concerning such reports.

Directs the Secretary, no later than July 31, 1988, to submit to the defense committees a report containing the Secretary's recommendations for the site for construction of a new production reactor and the Secretary's recommendation for the preferred technology for a new production reactor. Requires the Secretary to report to the defense committees, at the same time that the budget for FY 1990 is submitted to the Congress, with information pertaining to a new production reactor.

Directs the Secretary to enter into negotiations with the New Mexico Institute of Mining and Technology for the purpose of entering into an agreement with the Institute to provide funds for the work of the Environmental Evaluation Group for a term of five years. States the purpose of the Group to be to conduct a thorough review of the Waste Isolation Pilot Plant project in New Mexico. Sets forth administrative provisions concerning staffing, functions, and funding for the Group.

Authorizes the Secretary to pay to Los Alamos County in New Mexico an agreed-upon amount to provide for the final settlement of all obligations of the United States to make community assistance payments to the County as required under the Atomic Energy Community Act of 1955. Limits the total amount authorized to be paid to such County as such final payment. Outlines terms and conditions of such settlement. Authorizes appropriations.

Authorizes the Secretary of Defense to make grants, conclude cooperative agreements, and supplement funds in order to assist State and local governments and regional organizations in planning and supporting community adjustment required by the closure of the N Reactor in Hanford, Washington.

Amends the Nuclear Waste Policy Act of 1982 to require under such Act a report by the Secretary of Defense to the President as to whether and how the construction and operation of a nuclear waste repository site at Yucca Mountain, Nevada, would jeopardize the national security by reason of interference with national defense activities, if any, occurring nearby.

Part D: Independent Nuclear Safety Board Oversight Over Department of Energy Nuclear Facilities - Expresses certain congressional findings relating to the need for independent oversight of safety operations at DOE nuclear facilities. States the purpose of this part to be to establish a Defense Nuclear Safety Board to ensure the protection of public health and safety in activities at DOE nuclear facilities. Establishes such Board, outlining administrative provisions relating to Board composition, functions, powers, and responsibilities. Requires the Board to review and evaluate the implementation of the health and safety standards of DOE at each DOE nuclear facility and to recommend to the Secretary specific measures that should be adopted to reduce substantially the likelihood that actual or potential nuclear incidents will occur.

Provides that if the Secretary of Energy determines that any action recommended by the Board or any action proposed by the Secretary in response to the Board's recommendation might affect DOE's ability to meet the annual nuclear weapons stockpile requirements, the Secretary shall inform the President, the Secretary of Defense, and the appropriations and defense committees of the Congress of such recommendation and shall consult with the Secretary of Defense on such action. Outlines further administrative action authorized to be taken by the Board or the Secretary in specified circumstances. Requires all recommendations made by the Board to the Secretary of Energy to be made available to the public. Directs the Secretary to transmit to the Board a statement as to whether he accepts or rejects the recommendations submitted, a description of the actions to be taken in response to the recommendations, and his views on such recommendations. Outlines further administrative provisions relating to the Secretary's response to the Board's recommendations, the preparation of a plan by the Secretary implementing any accepted Board recommendations, and the implementation of such plan in a timely manner. Requires additional notice to the President, the Secretary of Defense, and the appropriations and defense committees when a Board recommendation relates to an imminent or severe threat to public health and safety. Outlines action to be taken by the Secretary of Energy if he determines that the implementation of a Board recommendation is impractical because of budgetary considerations, or that implementation would affect the Secretary's ability to meet the annual nuclear weapons stockpile requirements.

Requires the Board to submit annually, at the same time that the President submits the budget to the Congress, a report concerning the activities and recommendations made by the Board during the preceding year. Directs the reports to be submitted to the appropriations and defense committees. Directs the Secretary of Energy to submit, to the same committees at the same time, a written report concerning the activities of DOE during the preceding year. Authorizes assistance to the Board on all matters under its consideration from specified Federal agencies, advisory bodies, and organizations outside the Federal Government. Terminates the Board upon the expiration of the six-year period beginning on the date of enactment of this part. Requires the fifth annual report submitted by the Defense Nuclear Safety Board to the defense committees (as required under the Atomic Energy Act of 1954) to include an assessment of the Board's actions and recommendations.

Includes members of the Defense Nuclear Safety Board in the Executive Schedule Level III pay scale within the Federal Government.

Directs the Secretary of Energy to transfer to the Defense Nuclear Safety Board a specified amount to carry out its responsibilities.

Title XXXII: National Defense Stockpile - Directs the President to obligate a specified sum during FY 1989, out of the National Defense Stockpile Transaction Fund, for: (1) the acquisition of strategic and critical materials as required under the Strategic and Critical Materials Stock Piling Act; (2) transportation, storage, and other expenses related to such acquisition; and (3) the upgrading of stockpile materials and expenses related to such upgrades. Authorizes the President to dispose of specified amounts of materials currently determined to be excess to the needs of the National Defense Stockpile.

Amends the Strategic and Critical Materials Stock Piling Act to require that any proposed expenditure or disposal relating to materials in the stockpile that is not obligated or executed in the appropriate fiscal year may not be obligated or executed until the expenditure or disposal is resubmitted in a subsequent annual materials plan or is resubmitted to the appropriate congressional committees.

Title XXXIII: Civil Defense - Authorizes appropriations for FY 1989 for civil defense functions under the Federal Civil Defense Act of 1950.