A bill to make various changes to laws affecting the management and operations of the Department of Defense, and for other purposes.

Allows funds appropriated pursuant to the authorizations for the Warsaw Initiative and the Partnership for Peace to be used to assist in the implementation of the Regional Airspace Initiative and the Partnership for Peace Information Management System.

(Sec. 2) Revises, effective on September 1, 1997, the authorized end strengths for commissioned officers in the armed forces.

(Sec. 3) Authorizes Department of Defense (DOD) procurement contracts, grants, or cooperative agreements with any State or local government agency to assist in demonstrating and validating environmental technologies.

(Sec. 4) Makes the Government of Haiti eligible to purchase defense articles and services from the United States under the Arms Export Control Act.

(Sec. 5) Authorizes the Secretary of Defense to participate in the Foundation Geneva Center for Security Policy.

(Sec. 6) Repeals Federal provisions limiting the use of appropriated funds to influence certain Federal contracting and financial transactions.

(Sec. 7) Expands the authority of the Secretary to collect from third parties reimbursement for medical care and services provided under the Civilian Health and Medical Program of the Uniformed Services (CHAMPUS) to include: (1) a workers' compensation program or plan as an authorized third party; and (2) as reimbursable services personal injury protection or medical payments benefits in cases involving injuries resulting from the operation of a motor vehicle.

(Sec. 8) Amends the Internal Revenue Code to exclude as a contribution to the capital of a corporation the transfer of a DOD-owned utility system and any associated funds or utility connection fees.

(Sec. 9) Applies specified Federal criminal fines and penalties to certain traffic offenses on Federal property.

(Sec. 10) Amends the Social Security Act to revise the methods for service of process in connection with child support and alimony garnishment proceedings.

(Sec. 11) Amends the National Defense Authorization Act for Fiscal Years 1992 and 1993 to eliminate the requirement for certain environmental remedial investigations and feasibility studies at military installations closed under base closure laws.

(Sec. 12) Authorizes the Secretary to pay specified amounts to the Hazardous Substance Superfund as stipulated penalties assessed against DOD under the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA).

(Sec. 13) Amends Federal transportation law to authorize the Secretary to transfer necessary DOD funds to reimburse the Administrator of the Federal Aviation Administration (FAA), through the Aviation Insurance Fund, for loss or damage of civilian aircraft or death or injury to personnel used during DOD contingencies.

Amends the Merchant Marine Act, 1936, to authorize the Secretary to reimburse the Secretary of Transportation, through the Marine Insurance Fund, for losses, damages, injuries, or deaths resulting from the use of civilian vessels during a DOD contingency.

Requires the Secretaries and the FAA Administrator to notify the Congress regarding any such loss, damage, injury, or death in amounts in excess of $1 million.

(Sec. 14) Authorizes the Secretary of the military department concerned to order certain members of the Individual Ready Reserve to up to 24 months of active duty other than during war or national emergency, as long as such members volunteer.

(Sec. 15) Amends the National Defense Authorization Act for Fiscal Year 1993 to extend through FY 1998 the authorized period of assistance by DOD for certain international nonproliferation activities.