Defense Department FY96 Authorization bill

TABLE OF CONTENTS:

Title I: Procurement

Title II: Research, Development, Test, and Evaluation

Title III: Operation and Maintenance

Subtitle A: Authorization of Appropriations

Subtitle B: Reserve Component

Subtitle C: Other Matters

Title IV: Military Personnel Authorizations

Subtitle A: Active Forces

Subtitle B: Reserve Forces

Subtitle C: Military Training Student Loads

Title V: Military Personnel Policy

Subtitle A: Officer Personnel Policy

Subtitle B: Reserve Component Matters

Subtitle C: Amendments to the Uniform Code of Military

Justice

Subtitle D: Other Matters

Title VI: Compensation and Other Personnel Benefits

Subtitle A: Pay and Allowances

Subtitle B: Income Tax Matters

Subtitle C: Bonuses and Special and Incentive Pays

Subtitle D: Travel and Transportation Allowances

Subtitle E: Retired Pay, Insurance, and Survivor

Benefits

Subtitle F: Separation Pay

Title VII: Civilian Employees

Subtitle A: Civilian Personnel Policy

Subtitle B: Compensation and Other Personnel Benefits

Subtitle C: Separation Provisions

Title VIII: Health Care Provisions

Subtitle A: Health Care Management

Subtitle B: Other Matters

Title IX: Department of Defense Organization and Management

Subtitle A: Secretarial Matters

Subtitle B: Professional Military Education

Subtitle C: Other Matters

Title X: General Provisions

Subtitle A: Financial Matters

Subtitle B: Counter-Drug Activities

Subtitle C: Other Matters

Title XI: Matters Relating to Allies, Other Nations, and

International Organizations

Title XII: Acquisition Reform

National Defense Authorization Act for Fiscal Year 1996 - Title I: Procurement - Authorizes appropriations for FY 1996 and 1997 to the Army, Navy and Marine Corps, and Air Force for aircraft, missiles, weapons and tracked combat vehicles, ammunition, shipbuilding and conversion, and for other procurement.

Authorizes appropriations for FY 1996 and 1997 for: (1) defense- wide procurement; (2) the Defense Inspector General; (3) the chemical demilitarization program; and (4) the Defense Health Program.

(Sec. 108) Repeals the current requirement for a separate budget request for the procurement of reserve equipment.

Title II: Research, Development, Test, and Evaluation - Authorizes appropriations for FY 1996 and 1997 for the armed forces for research, development, test, and evaluation.

Title III: Operation and Maintenance - Subtitle A: Authorization of Appropriations - Authorizes appropriations for FY 1996 and 1997 for the armed forces and specified activities and agencies of the Department of Defense (DOD) for operation and maintenance. Authorizes appropriations to DOD for FY 1996 and 1997 for working capital and revolving funds.

(Sec. 303) Establishes in the Treasury the Civilian Marksmanship Program Fund, to be available for all expenses of the Civilian Marksmanship Program.

(Sec. 304) Repeals a provision of the National Defense Authorization Act for Fiscal Years 1992 and 1993 which provides certain limitations on the use of funds in the Defense Business Operations Fund.

(Sec. 305) Authorizes the use of the National Defense Sealift Fund for expenses of the National Defense Reserve Fleet.

Subtitle B: Reserve Component - Amends the National Defense Authorization Act of 1995 to allow a DOD reimbursement official to use funds to provide pay and allowances to reserves engaged in activities in support of cooperative threat reduction with states of the former Soviet Union. Excludes such reserves from inclusion in any active duty end strength limitations for members on active duty.

(Sec. 322) Authorizes the use of DOD funds for National Guard participation in joint Army and Air Force exercises concerning civil emergency and disaster response preparedness.

Subtitle C: Other Matters - Amends Federal transportation provisions to authorize the Secretary of Defense (Secretary) to transfer from any DOD funds necessary sums to reimburse the Administrator of the Federal Aviation Administration (FAA) for loss or damage to civil aircraft, death or injury to personnel, and related losses or damages which have been insured at the Secretary's request due to civilian participation in DOD emergency contingency operations. Requires the Secretary to use such funds to promptly reimburse the Aviation Insurance Fund of the FAA within 30 days (for hull damage) or 180 days (for all other valid claims) after presentment of claim by a civilian carrier. Requires the Secretary and the FAA Administrator to notify the Congress within 30 days of any losses, death, injuries, or damages at a cost in excess of $1 million. Amends the Merchant Marine Act, 1936, to empower the Secretary with identical authority to reimburse the Secretary of Transportation for such losses insured by the Marine Insurance Fund. Requires the Secretary and the Secretary of Transportation to report periodically to the Congress on claims paid in excess of $1 million.

(Sec. 332) Amends the National Defense Authorization Act for Fiscal Year 1994 to require additional certifications from the Secretary to the congressional defense committees before proceeding beyond the low-rate initial production stage of a theater missile defense interceptor program.

(Sec. 333) Authorizes the Secretary to assign overseas personnel under the defense dependents' education program to schools established under such program in the United States, and vice versa.

(Sec. 334) Authorizes the use of funds appropriated to the Central Imagery Office for the design, development, and deployment of the Accelerated Architecture Acquisition Initiative program imagery systems of the military departments and related activities.

(Sec. 335) Directs the Secretary to carry out a Department of Defense Laboratory Revitalization Program under which the Secretary may carry out minor military construction projects in order to improve DOD laboratories. Increases the maximum costs of minor construction projects for purposes of the Program. Directs the Secretary to designate the DOD laboratories to be covered by the Program. Requires a report. Prohibits the Secretary from carrying out any program after September 30, 2000.

Title IV: Military Personnel Authorizations - Subtitle A: Active Forces - Provides for the authorized end strengths for active- duty forces as of the end of FY 1996 and 1997.

Subtitle B: Reserve Forces - Sets forth the authorized end strengths as of the end of FY 1996 and 1997 for members of the Selected Reserve and reserve personnel on active duty in support of the reserves.

Subtitle C: Military Training Student Loads - Sets forth the authorized FY 1996 and 1997 military training student loads, allowing for certain adjustments consistent with authorized end strengths.

Title V: Military Personnel Policy - Subtitle A: Officer Personnel Policy - Provides, with respect to members of the Army, Navy, and Air Force, that an individual's period of desertion, unexcused absence, confinement, or inability to perform duties, as well as the time required to make up any such absence, may not be counted for purposes of determining the individual's length of service.

(Sec. 502) Redesignates certain general officer billet titles within the Marine Corps resulting from a headquarters reorganization.

(Sec. 503) Revises the retirement date for warrant officers and certain active-duty officers chosen for selective early retirement. Requires an annual authorization of personnel strength levels for such members whose retirement has been deferred.

(Sec. 504) Increases the authorized end strengths for active-duty commissioned Air Force majors, lieutenant colonels, and colonels. Terminates such increase at the end of FY 1997. Provides similar increases, with the same termination date, for commissioned Navy lieutenant commanders, commanders, and captains.

(Sec. 506) Revises certain definitions under Federal provisions relating to the promotion of general or flag officers.

Subtitle B: Reserve Component Matters - Repeals a Federal provision requiring each member of the National Guard called into or leaving Federal service to be examined for physical fitness.

(Sec. 512) Authorizes a Federal employee military leave as a member of the reserve to perform public safety duty.

(Sec. 513) Authorizes the Secretary of the military department concerned to prescribe the duration of field training or a practice cruise (currently, either must be no less than six weeks) required for admission to the Reserve Officers' Training Corps (ROTC) advanced course.

(Sec. 515) Amends the National Defense Authorization Act for Fiscal Year 1993 to require the Secretary of the Army to have an objective of increasing the percentage of qualified prior active-duty personnel in the Selected Reserve (currently, in the Army National Guard).

(Sec. 516) Requires technicians employed by the Army or Air National Guard to wear the military uniform appropriate for the member's grade and component while performing technician functions. Considers such duty as active duty, thereby permitting a clothing allowance.

(Sec. 517) Provides an exception to the prohibition against the involuntary separation from service of military personnel within two years from retirement in the case of reserve personnel performing active duty service for less than 180 days.

(Sec. 518) Authorizes the Secretary to provide certain involuntarily separated military reserve technicians with placement consideration through the DOD Priority Placement Program.

Subtitle C: Amendments to the Uniform Code of Military Justice - Amends the Uniform Code of Military Justice (UCMJ) to make subject to its provisions those persons serving with or accompanying an armed force in the field in a time of armed conflict.

(Sec. 553) Allows an investigative officer to investigate the subject matter of any uncharged offense against an accused during an investigation, as long as the accused is present, is informed of the nature of the investigation, and is permitted representation, presentation of evidence, and cross-examination.

(Sec. 554) Eliminates the $500, six-month fine and imprisonment limits for persons convicted of refusing to testify before a court- martial. Revises provisions concerning the effective date of sentencings as they relate to the forfeiture of military pay and allowances.

(Sec. 557) Allows deferment of a sentence of confinement upon application by the accused if the sentence has not been ordered to be carried out. Terminates the deferment at such time as the sentence is ordered to be executed. Allows the accused to submit to the convening authority written matters for consideration with respect to the findings and sentence.

(Sec. 559) Allows a proceeding in revision (a proceeding to revise a trial record) to be ordered to correct an erroneously announced sentence.

(Sec. 560) Allows the post-trial review of courts-martial in the Office of the Judge Advocate General, unless the accused has waived or withdrawn the right to appeal under the UCMJ.

(Sec. 561) Authorizes the United States to appeal an order or ruling which directs the disclosure of classified information, imposes sanctions for nondisclosure of such information, or refuses to issue a protective order seeking to prevent such disclosure.

(Sec. 562) Includes flight from arrest as a punishable action under the UCMJ.

(Sec. 563) Removes a gender reference with respect to the UCMJ offense of carnal knowledge with a person under 16 years of age. Requires the accused in such a prosecution to establish by a preponderance of the evidence that the other person was at least 12 years of age and that the accused reasonably believed the person to be at least 16.

(Sec. 564) Requires newly enlisted personnel to be instructed in the UCMJ upon entrance into active or reserve duty.

Subtitle D: Other Matters - Authorizes the Secretary concerned to accept at his discretion the reenlistment of members of the armed forces with ten or more years of service. Requires such reenlistment period to be unspecified on a career basis.

(Sec. 572) Reduces from three to two years the minimum time in grade required for a chief warrant officer to be considered for promotion. Allows warrant officers below the promotion zone for the grade of chief warrant officer, W-3, to be considered for such a promotion.

(Sec. 573) Allows the Secretary of the Army to retire a Director of Admissions of the U.S. Military Academy after 30 years of commissioned officer service.

Title VI: Compensation and Other Personnel Benefits - Subtitle A: Pay and Allowances - Waives any FY 1996 military pay increases tied to increases in the General Schedule of Compensation for Government employees. Increases by 2.4 percent, effective on January 1, 1996, the rates of basic pay and the basic allowance for subsistence. Increases by 3.4 percent the basic allowance for quarters, effective on the same date.

(Sec. 602) Provides an evacuation allowance to civilian personnel and their dependents officially authorized to evacuate their duty stations. (Currently, such allowance is only paid to military personnel and their dependents who are ordered to evacuate.)

(Sec. 603) Provides continuous entitlement to career sea pay for crew members on ships designated as a tender-class ship.

(Sec. 604) Increases to $200 monthly the subsistence allowance payable to members of the Senior ROTC.

(Sec. 605) Provides a dislocation allowance for those directed to move as a result of a base realignment or closure.

(Sec. 607) Authorizes, as of July 1, 1996, the payment of a basic allowance for quarters for enlisted personnel in the pay grade of E-6.

Subtitle B: Income Tax Matters - Amends the Internal Revenue Code to limit, after December 31, 1994, the exclusion of combat pay from withholding taxes only to the extent that such pay is excluded from gross income.

Subtitle C: Bonuses and Special and Incentive Pays - Reduces from nine to eight of the first 12 years of aviation service the period during which an officer must perform operational flying duties in order to receive aviation career incentive pay.

(Sec. 622) Extends specified expiring authorities for certain special pay and bonus programs within the regular and reserve armed forces. Makes permanent: (1) the aviation officer retention bonus; (2) the authority for the temporary promotion of certain Navy lieutenants; and (3) the authority for the DOD specialized treatment facility program.

Subtitle D: Travel and Transportation Allowances - Authorizes the Secretary concerned to provide contract quarters as lodging in kind when transient government quarters are unavailable for reserve personnel performing annual training duty or inactive-duty training.

(Sec. 632) Deletes a provision limiting to surface transportation the means of shipping a motor vehicle for a member assigned to a permanent change of duty station.

(Sec. 633) Includes students who graduate from or cease to be enrolled in a foreign institution of higher education within a provision authorizing the Secretary concerned to return to the United States formerly dependent children of military personnel who attain a nondependent age while overseas.

Subtitle E: Retired Pay, Insurance, and Survivor Benefits - Makes ineligible for retired pay those persons convicted under the UCMJ whose sentences include death, dishonorable or bad conduct discharge, or dismissal from service.

(Sec. 642) Makes first payable for March 1996 the FY 1996 cost-of- living adjustment for military retirees.

(Sec. 643) Increases from $100,000 to $200,000 the amount of Servicemen's Group Life Insurance provided automatically to members assigned to active duty or the Ready or Retired Reserve.

(Sec. 644) Authorizes the provision of medical and dental care, and the recovery, care, and disposition of remains, in the case of reserve members on duty other than active duty for more than 30 days, for members requiring such care while remaining overnight at or in the vicinity of a site outside reasonable commuting distance from the member's residence and at which site the member has performed inactive duty training between successive periods of such training. Entitles such individuals to basic pay while performing such service, or, if not entitled to such pay due to other eligibility requirements, to compensation as a member of the National Guard performing inactive- duty training.

Subtitle F: Separation Pay - Provides certain transitional compensation for the dependents of any military member separated from the armed forces due to dependent abuse. (Currently, such compensation is only provided to dependents of members separated from active duty.)

(Sec. 661) Authorizes the branch, office, or officer designated by the Secretary of the Navy to procure or sell to members of the Navy and Marine Corps specified articles and items of clothing and equipment, under such restrictions as such Secretary may prescribe. Directs such designate to sell to members of other military departments subsistence supplies and serviceable supplies at prices charged to members of the Navy and Marine Corps. Allows an honorably discharged member from any service branch who is receiving care and medical treatment from the Public Health Service or the Department of Veterans Affairs to buy subsistence supplies at prices charged to Navy and Marine Corps personnel. Allows honorably discharged individuals to buy exterior articles of uniform at such prices. Authorizes such Secretary to provide for the procurement and sale of items and articles designated by him to such U.S. civilian officers and employees as he considers proper at military installations: (1) outside the United States; and (2) inside the United States when it is impracticable for such officers and employees to obtain such articles and items from commercial enterprises without impairing the efficient operation of military activities. Requires such sales to be made only to those residing within the installation.

Title VII: Civilian Employees - Subtitle A: Civilian Personnel Policy - Provides the legal public holiday days for those Federal employees whose basic workweek is other than Monday through Friday.

(Sec. 702) Terminates the 120-day limit on administrative details within executive or military departments.

(Sec. 703) Repeals a Federal provision requiring each Federal agency to submit to the Office of Personnel Management (OPM) a report concerning part-time career employment activities undertaken by such agency.

Subtitle B: Compensation and Other Personnel Benefits - Repeals a Federal provision prohibiting DOD funds from being used to pay lodging expenses of a civilian DOD employee on official business when adequate government quarters are available.

(Sec. 712) Includes within the definition of Federal employees the employees of various nonappropriated fund instrumentalities of the service branches.

Subtitle C: Separation Provisions - Includes under Federal provisions authorizing continued health insurance coverage for a specified period after military discharge or separation those individuals: (1) voluntarily separating from the armed forces due to a reduction in force; and (2) whose positions are considered surplus due to the closure or realignment of a military installation.

(Sec. 722) Entitles any eligible Federal employee to receive severance pay in a lump-sum amount. Requires refunding the pro rata share of a lump-sum payment if an individual is reemployed by the Government or the District of Columbia. Terminates such entitlement at the end of FY 1999.

(Sec. 723) Directs OPM to prescribe regulations which permit, until September 30, 1996, DOD employees who are not scheduled for separation due to a reduction-in-force (RIF) to volunteer for RIF separation in place of employees who are so scheduled.

Title VIII: Health Care Provisions - Subtitle A: Health Care Management - Amends the Civilian Health and Medical Program of the Uniformed Services (CHAMPUS) to increase the health care professional payment limitation requirements under the CHAMPUS physician payment reform program, tying such limits to similar limits under title XVIII (Medicare) of the Social Security Act. Requires the Secretary to prescribe regulations covering such payment amounts, providing for exceptions in the case of adequate health care access. Provides transitional requirements.

(Sec. 802) Amends specified prior national defense authorization Acts to repeal certain limitations on reductions in military medical personnel.

Subtitle B: Other Matters - Requires a military medical advance directive (a directive to require or refuse life-support systems or to appoint a person to make such decisions) to be: (1) exempt from any State requirements of form, substance, formality, or recording; and (2) given the same legal effect as a State advanced medical directive.

(Sec. 812) Terminates the Uniformed Services University of the Health Sciences, directing the Secretary to phase out such University beginning in FY 1996 and ending at the close of FY 1999. Prohibits any new class of University students after FY 1995, and prohibits awarding degrees after FY 1999.

(Sec. 813) Repeals a Federal provision prohibiting DOD funds from being used to perform abortions unless the life of the mother is in danger.

Title IX: Department of Defense Organization and Management - Subtitle A: Secretarial Matters - Authorizes a 12th Assistant Secretary of Defense.

(Sec. 902) Redesignates the Assistant Secretary of Defense for Atomic Energy as the Assistant Secretary of Defense for Nuclear and Chemical Programs.

Subtitle B: Professional Military Education - Includes within the National Defense University the Institute for National Strategic Studies (which replaces the Institute for National Strategic Study) and the Information Resources Management College.

(Sec. 912) Includes the Asia-Pacific Center for Security Studies within a Federal provision authorizing the Secretary to employ as many civilian professors, instructors, and lecturers at specified institutions as considered necessary.

Subtitle C: Other Matters - Amends various prior national defense authorization Acts and Federal armed forces provisions to reduce or eliminate specified congressional reporting, notification, or certification requirements.

(Sec. 922) Repeals the Federal prohibition against contracting out for the fire fighting and security guard functions at military installations.

(Sec. 923) Increases to: (1) $1.7 million the unspecified minor construction threshold; and (2) $350,000 the operation and maintenance threshold.

(Sec. 924) Changes from February 15 to March 1 annually a required report from the Secretary concerning National Guard and reserve component equipment.

(Sec. 925) Revises the annual date for the joint OMB-CBO report on the scoring of national defense budget outlays.

(Sec. 926) Repeals a required annual report from the Secretary on payments made to defense contractors for the costs of environmental response actions.

Title X: General Provisions - Subtitle A: Financial Matters - Requires the head of the Coast Guard, when such service is not operating as a service within the Navy, to designate disbursing officials within the Coast Guard for the disbursing of public funds. Allows the Secretary to designate deputy disbursing officials within DOD. (Currently, the Secretary of each military department may designate such an official within that department.) Authorizes the Secretary and the Secretary of Transportation, when operating the Coast Guard, to: (1) designate military personnel under their jurisdiction to certify vouchers; and (2) relieve certifying officials from certain liability concerning the certification of the use of public funds under their jurisdiction. Allows for the crediting of a deficiency in an account under the jurisdiction of such officials, in appropriate circumstances.

(Sec. 1002) Provides an exception to certain military personnel due process requirements in the case of routine adjustments of military pay attributable to clerical or administrative error or processing delays.

(Sec. 1003) Authorizes the Secretary, under specified limitations, to incur necessary obligations to preserve the military readiness in excess of contract authority and amounts available in DOD appropriations. Requires proposals to incur such additional obligations to be accompanied by offsetting rescission proposals, unless emergency conditions exist. Outlines procedures for charging such excess costs to certain DOD accounts which have been funded as subdivisions within an appropriation.

Amends the National Defense Authorization Act for Fiscal Year 1991 to allow, under certain limitations, an obligation and an adjustment to an obligation to be charged to any current DOD appropriation account that is available for the same purpose as a closed or expired DOD account when the expired or closed account was or may have been in violation of the Anti Deficiency Act (an Act which provides express time limitations on the expenditure and obligation of Federal appropriations or funds).

(Sec. 1004) Authorizes the Secretary or the Secretary of a military department to waive certain settlement and payment limitations for claims by military personnel under that Secretary's jurisdiction when such claims arose from an emergency evacuation or from extraordinary circumstances warranting such waiver. Applies such waiver to claims arising on or after June 1, 1991.

Subtitle B: Counter-Drug Activities - Authorizes the Secretary, in lieu of providing drug interdiction and counter-drug activities funds to a State, to allocate funds for the pay and related expenses of personnel of the National Guard of such State who perform counter- drug duty pursuant to a plan submitted to the Secretary by the governor of such State. Limits to 4,000 the total number of National Guard personnel who may perform such duty for more than 180 days, with an authorized 20 percent increase when necessary in the national interest. Outlines plan requirements. Requires the Secretary to examine the plan's adequacy in consultation with the Director of National Drug Policy.

(Sec. 1012) Authorizes the Secretary to conduct outreach programs to reduce the demand for illegal drugs among youths. Provides funding from drug interdiction and counter-drug funding.

Subtitle C: Other Matters - Increases from 90 days to one year the authorized period for the transportation of a Federal employee or official between his or her residence and place of employment in situations presenting a clear and present danger to such individual. Authorizes the Secretary and the Secretaries of the military departments to delegate their authority to choose those positions under their jurisdiction for which such transportation will be permitted.

(Sec. 1022) Amends the National Defense Authorization Act for Fiscal Year 1993 to: (1) remove the FY 1993-1995 limit for the National Guard Civilian Youth Opportunities Program; (2) state that the Program shall no longer be considered a pilot program; and (3) authorize the use of government vehicles pursuant to the Federal Property and Administrative Services Act of 1949 in conducting the Program. Authorizes the use of such government vehicles under such Act for the training and administration of the National Guard.

(Sec. 1024) Authorizes the Secretary concerned to trade certain military historical items in exchange for conservation and preservation services and for educational programs, supplies and newly upgraded or renovated conservation equipment, facilities, and systems within existing structures.

(Sec. 1025) Amends the DOD Education Loan Repayment Program to authorize the Secretary to repay any loan made under part D of the Higher Education Act of 1965 (the William D. Ford Direct Loan Program) on behalf of the following: (1) enlisted members serving on active duty in certain military specialties; (2) enlisted members of the Selected Reserve with certain critical specialties; and (3) Selected Reserve health professions officers serving under wartime critical medical skill shortages.

Title XI: Matters Relating to Allies, Other Nations, and International Organizations - Revises certain accounting procedures with respect to defense burden sharing contributions accepted from the Republic of Korea.

(Sec. 1102) Authorizes the Secretary to accept such contributions from Japan and the Republic of Korea in dollars or in the currency of the host nation. Allows such contributions to be used for the relocation of U.S. military personnel in or to such countries. Requires annual reports from the Secretary specifying the amount of contributions accepted and expended.

(Sec. 1103) Amends the Foreign Assistance Act of 1961 to authorize the President to assign members of the armed forces to any foreign country to promote rationalization, standardization, interoperability, and other defense cooperation measures. (Currently, such promotion is permitted only among members of NATO and with the armed forces of Japan, Australia, and New Zealand.)

(Sec. 1104) Amends the Arms Export Control Act to authorize the Secretaries concerned to use amounts reimbursed to the United States by foreign countries for leased items which have been lost or destroyed to either replace such items or to fund upgrades or modifications of similar systems of the military departments.

(Sec. 1105) Amends the Arms Export Control Act to authorize the President, under specified conditions, to acquire from an eligible foreign country or international organization a defense article previously transferred to such country under provisions of such Act, or to undertake an exchange of a defense article in return for a repaired or new article.

(Sec. 1106) Limits to any operation which is expected to exceed $10 million in cost or last longer than three months the applicability of a requirement for notification from the President to the Congress when providing disaster assistance outside the United States.

(Sec. 1107) Requires an annual report from the Secretary to specified congressional committees concerning the provision of worldwide humanitarian assistance by the United States to be submitted at the same time as the President's annual budget submission. Specifies additional information required to be included in such reports.

(Sec. 1108) Amends the National Defense Authorization Act for Fiscal Year 1995 to authorize during FY 1996 the use of DOD humanitarian assistance funds for activities supporting the clearing of landmines for humanitarian purposes.

(Sec. 1109) Authorizes the President to provide personnel, supplies, services, and equipment in support of international peacekeeping and peace enforcement activities and to make contributions to pay the U.S. assessed share for such operations conducted by the United Nations when U.S. combat forces participate. Outlines provisions concerning: (1) appropriate reimbursement to the United States for the costs of such support, subject to specified conditions; (2) the appropriate crediting of reimbursements received; (3) the establishment of the International Peacekeeping and Peace Enforcement Activities Account for appropriate purposes; (4) an annual reporting requirement from the President to the Congress concerning such activities and expenditures; (5) an authorization of appropriations for the payment of assessments for UN operations; and (6) a prohibition on the payment of such UN assessed amounts for such activities when U.S. combat forces do not participate.

(Sec. 1110) Amends the National Defense Authorization Act for Fiscal Year 1993 to: (1) continue through FY 1996 the authority of the Secretary to provide assistance to support international nonproliferation activities; (2) change from the On-Site Inspection Agency to DOD the responsibility for certain on-site inspections in support of such activities; (3) add to authorized nonproliferation activities; and (4) continue through FY 1996 certain quarterly reporting requirements with respect to such activities.

Title XII: Acquisition Reform - Exempts from Federal provisions requiring the cancellation of appropriated funds if not used by the end of the fifth fiscal year following their appropriation any funding appropriated for: (1) satellite on-orbit incentive fees, to remain until the fee is earned; and (2) government shipbuilding appropriations available for budgeted work that must be performed in the final stage of ship construction, to remain until its purpose is satisfied.

(Sec. 1202) Amends the Office of Federal Procurement Policy Act to require certain public notice of a proposed Federal contract expected to exceed $10,000 but not to exceed $25,000.

(Sec. 1203) Repeals a Federal provision: (1) requiring letters of offer for the sale of defense articles and services from DOD stocks to include appropriate charges for a proportionate amount of any nonrecurring costs of research, development, and production of major defense equipment; and (2) authorizing the waiver of such charges by the President in certain circumstances.

(Sec. 1204) Makes Federal provisions disallowing the receipt by a contracting official of any gratuities from the contractor inapplicable to contracts falling within the simplified acquisition threshold.

(Sec. 1205) Amends the Federal Acquisition Streamlining Act of 1994 to require the heads of Federal agencies to make management decisions on all Office of Inspector General audits within six months (currently, no time limit) after their issuance.

(Sec. 1206) Repeals a Federal provision prohibiting funds appropriated to DOD from being used to transfer to a foreign country a technical data package for a defense item being manufactured or developed in an arsenal, or to assist a country in producing such an item.

(Sec. 1207) Makes permanent (currently only permitted during a national emergency) the power of the President to make, amend, or modify contracts to facilitate the national defense.

(Sec. 1208) Includes a U.S. territory as a permissible entity to which the Secretary of the Navy may transfer a captured vessel or a vessel stricken from the Naval Vessel Register.

(Sec. 1209) Amends the National Defense Authorization Act for Fiscal Year 1990 and 1991 to: (1) require a broad range of the services and supplies acquired by DOD to be included in a test program for negotiating comprehensive subcontracting plans; (2) revise provisions concerning DOD contractors eligible under the test program; and (3) repeal a provision limiting the FY 1994 participants in the program.

(Sec. 1210) Removes the requirement of activation of the full Civil Reserve Air Fleet before the Secretary may contract with private aircraft owners for the incorporation of defense features on such aircraft.

(Sec. 1211) Prohibits any court or board from exercising jurisdiction over any claim for the adjustment of a shipbuilding contract that was not submitted to the contracting officer within 18 months after the occurrence of the event giving rise to the claim.

(Sec. 1212) Authorizes the Secretary of the Navy to acquire or transfer such vessels and equipment for operation by private salvage companies as the Secretary considers necessary. Authorizes such Secretary to settle and receive payment for any U.S. claim for salvage services rendered by the Navy.

(Sec. 1213) Authorizes the Secretary or the secretaries of the military departments to have supplies needed for DOD or a military department made in factories, depots, or arsenals owned by the United States. Authorizes any such Secretary to disestablish any U.S. arsenal considered unnecessary.

(Sec. 1214) Repeals a Federal provision prohibiting the use of any appropriated funds for documenting the economic or employment impact of DOD acquisition programs for which research, development, testing, and evaluation have not been completed.

(Sec. 1216) Repeals a Federal provision authorizing the Secretary of a military department to delegate certain contract authority.

(Sec. 1217) Exempts from certain monitoring, evaluation, reporting, and oversight requirements the defense acquisition pilot programs specified under the Federal Acquisition Streamlining Act of 1994 and such future programs as may be authorized by the Congress pursuant to the National Defense Authorization Act for Fiscal Year 1991.

(Sec. 1218) Requires major defense system and munitions programs testing to begin at the component, subsystem, and subassembly level and to culminate with tests of the complete system configured for combat. Revises, generally, language and terms for such programs.

(Sec. 1219) Requires any position papers or assessments made with respect to technological issues in defense research to be made part of the record when making acquisition program (currently, milestone O, I, and II) decisions.

(Sec. 1220) Repeals a Federal provision which authorizes the head of an agency to waive certain restrictions on undefinitized contractual actions when necessary to support a contingency operation. Excludes from such restrictions contingency operations, peacekeeping and peace enforcement operations, disaster relief operations, and humanitarian assistance.

(Sec. 1221) Provides an exception with respect to the requirement of independent cost estimates for major defense acquisition programs when the decision authority for that program has been delegated to an official of a military department, defense agency, or other DOD component.

(Sec. 1222) Revises Federal provisions requiring unit cost reports for defense acquisition programs to: (1) remove the definition of "procurement program" for purposes of such reports; and (2) require such a report in certain cases where the current program acquisition unit cost has increased by at least five percent over the 15 percent increase in such cost for the program as shown in its baseline estimate.

(Sec. 1223) Repeals Federal provisions requiring certain quality control in the procurement of critical aircraft and ship spare parts.

(Sec. 1224) Authorizes funds appropriated to a military department to be used to procure rights to use designs and processes. (Currently, funds are authorized only for technical data and computer software.)

(Sec. 1225) Authorizes the Secretary to exclude from certain required post-education duty assignments graduates of the Senior Acquisition Course at the Armed Forces Industrial College if they are assigned upon such graduation to critical acquisition positions. Repeals a Federal provision requiring individuals assigned to critical acquisition positions to so serve for a minimum of three years.

(Sec. 1227) Repeals Federal provisions: (1) requiring certain limitations on the performance of depot-level maintenance of material; and (2) prohibiting the contracting-out of DOD depot-level maintenance or repair workload activities previously performed by DOD depot-level activities.