Department of Defense Authorization Act, 1986

(Measure passed House, amended, roll call #208 (278-106))

Department of Defense Authorization Act, 1986 - Title I: Procurement - Authorizes appropriations for FY 1986 for procurement by the Army of aircraft, missiles, weapons, tracked combat vehicles, ammunition, and for other procurement. Merges appropriations for FY 1986 for specified procurement with specified amounts remaining available from FY 1984 and 1985.

Permits the Secretary of the Army to enter into multiyear contracts for the purchase of T-700 series engines, various components of the M1 and M1A1 tank, and the transmission system for the Bradley Fighting Machine.

Removes a limitation on contractors for 120-millimeter mortar.

Authorizes the continued use of funds appropriated for FY 1985 for the multiple launch rocket system (MLRS) for materials and components for such system.

Sets aside a specified amount of FY 1986-authorized funds for the Copperhead Projectile Program. Limits the expenditure of such funds until the Secretary of Defense reports to the Congress a plan concerning a second production source for such projectile.

Authorizes the Secretary of the Army to purchase safety modifications in carrying out the Pershing II missile program for FY 1986. Prohibits the obligation of any such funds until the Secretary reports a plan for the purchase of such modifications to the Senate and House Armed Services Committees.

Prohibits the obligation of funds for the procurement of AH-64 Apache attack helicopters until the Director of the Defense Contract Audit Agency reports certain findings to the Secretary of the Army concerning accounting and expenses related to such procurement.

Authorizes appropriations for FY 1986 for procurement by the Navy and Marine Corps of aircraft, weapons, shipbuilding and conversion, and for other procurement. Directs the Secretary of the Navy to report to the Senate and House Armed Services Committees, within 120 days after the enactment of this Act, concerning the procurement of gun pods for Marine Corps Reserve aircraft. Merges appropriations for FY 1986 for aircraft procurement and shipbuilding and conversion with amounts remaining available from FY 1985 for such purposes.

Prohibits FY 1986 aircraft procurement funds from being obligated for the procurement of A6E aircraft until the Secretary of the Navy makes certain guarantees to the Senate and House Armed Services Committees concerning the useful life of such aircraft.

Permits the Secretary of the Navy to enter into multiyear contracts for the procurement of LHD-1 class amphibious assault ships and MK-46 torpedoes and modification kits.

Authorizes appropriations for FY 1986 for procurement by the Air Force of aircraft, missiles, and for other procurement. Authorizes the transfer of prior-year funds for missile procurement for use in FY 1986. Directs the Secretary of the Air Force to establish an ongoing, annual competition for the procurement of fighter aircraft.

Authorizes appropriations for FY 1986 for the defense agencies.

Authorizes appropriations for FY 1986 to the Secretary of Defense for acquisition in connection with cooperative defense programs of the North Atlantic Treaty Organization (NATO). Prohibits the use of such funds until the Secretary of Defense submits to the Armed Services Committees a copy of each government-to-government agreement or if the U.S. obligation exceeds the collective obligation of the involved European countries.

Extends through FY 1986 the authority of the Secretary of Defense, in carrying out the Multilateral Memorandum of Understanding Between the NATO Ministers of Defense concerning the NATO AWACS program, to waive reimbursement for the cost of specified functions performed by certain personnel and to assume contingent liability for program losses and specified charges.

Prohibits the Secretary of the Army from obligating funds for the production and assembly of the Sergeant York Air Defense Gun system until certain tests have been completed and certain specified reports have been made. Requires a performance guarantee of such system from the Secretary of the Army.

Prohibits the Secretary of the Army from procuring five-ton trucks for the Army until the Secretary certifies to the Armed Services Committees of the Senate and House of Representatives that each truck has undergone certain testing and meets specified qualifications. Authorizes the Secretary to extend for up to 18 months the current multiyear contract for the procurement of five-ton trucks. Authorizes the Secretary to award a new multiyear contract for such truck procurement by May 1, 1986, such contract to extend for a period of five fiscal years. Requires the Secretary, by February 1, 1986, to notify the Armed Services Committees of the Senate and House of Representatives if such contract-awarding date is impracticable.

Authorizes the sale of L110 howitzers to friendly foreign governments.

Permits the use of Defense Department appropriations to administer funds credited to the Department through the foreign military sales program under the Arms Export Control Act.

Directs the Secretary of the Navy to take all steps necessary to encourage the construction in U.S. shipyards of diesel submarines for U.S. allies. Prohibits funds to be used for such purposes until the Secretary reports to the Congress that the Navy is taking no action to halt or delay the construction of such submarines. Prohibits funds appropriated from being used to upgrade or modernize a foreign shipyard until the Secretary assures the Congress that such construction could not be done in the U.S. without a negative impact on U.S. nuclear submarine programs.

Authorizes certain reductions in the FY 1986 authorization of appropriations for the armed forces, the defense agencies, and the NATO cooperative defense programs due to prior-year cost savings.

Authorizes the additional transfer of unobligated prior-year funds to be merged with FY 1986 authorizations for the armed forces and defense agencies, in specified amounts. Authorizes such transfers only to the extent provided in appropriation Acts. Requires the Secretary of Defense, before such transfer of funds are made, to report to the Senate and House Armed Services Committees describing the programs reduced to make such funds available.

Limits to 40 the number of MX missiles deployed at any time. Limits future spending for MX missiles to that required for operational testing and evaluation and the aging and surveillance program.

Authorizes the Secretary of the Navy to undertake a program to replace the wings of the A6 aircraft, as long as certain warranties are made. Authorizes the transfer of certain prior-year unobligated funds for such program.

Requires the Secretary of Defense to submit certain reports concerning testing results of the Bradley Fighting Vehicle to the Senate and House Armed Services Committees. Describes testing procedures and information to be included in such reports. Requires Phase 1 of such report no later than December 1, 1985, and Phase 2 of such report no later than June 1, 1986.

Requires the Secretary of Defense to assure that no contract is entered into by the Department of Defense (DOD) for the procurement of any newly-developed combat vehicles until certain testing has been completed and certain congressional reporting requirements (concerning the results of such testing) have been met.

Requires the Secretary, not later than February 1, 1986, to report to the Congress on the total program cost of the advanced technology bomber. Limits the expenditure of any funds for such program until such report is received.

Sets conditions for the expenditure of funds for the procurement or assembly of binary chemical munitions.

Title II: Research, Development, Test, and Evaluation - Authorizes appropriations for FY 1986 to the armed forces and the defense agencies for research, development, test, and evaluation. Authorizes appropriations for FY 1986 for pay, retirement, and employee benefits for civilian employees of DOD. Limits specified amounts of sums appropriated to each of the armed forces and the defense agencies to be used only for certain specified defense projects.

Prohibits the obligation of specified funds appropriated to the Navy and Air Force until the Secretary of each certifies to the Congress certain findings concerning the testing and compatibility of the High-Speed Anti-Radiation Missile (HARM) System. Requires each Secretary to report to the Congress any deficiencies found in the HARM system.

Reduces the FY 1986 authorizations for research, development, test, and evaluation to the armed forces and defense agencies in specified amounts, due to prior-year cost savings.

Authorizes the transfer of specified prior year funds, to be merged with FY 1986 authorizations for the armed forces and defense agencies.

Urges the President, the Secretary of Defense, and the U.S. representative to NATO to diligently pursue cooperation in research and development of defense equipment. Specifies certain previously-authorized sums to be used for such research and development. Prohibits such funds from being used to procure equipment or services from any foreign government, foreign research organization, or other foreign entity.

Requires the Director of Defense Research and Engineering to prepare a formal arms cooperation opportunities document for review by the Defense Systems Acquisition Review Council at its formal meetings. Outlines information to be included in such document.

Expresses the sense of the Congress that DOD should perform more side-by-side testing of conventional defense equipment manufactured by the U.S. and NATO-member nations. Authorizes additional appropriations to acquire such test items. Specifies defense items which may be so acquired. Requires the Director of Defense Test and Evaluation to notify the Senate and House Armed Services Committees of his intention to obligate funds for such acquisitions at least 30 days before such funds are obligated. Requires a report on any testing done no later than February 1, 1986, and annually thereafter.

Requests certain information from DOD concerning the Strategic Defense Initiative (SDI), due at the same time that DOD expenditure requests for SDI are submitted to the Congress.

Requires the Secretary of Defense to continue the development of a small intercontinental ballistic missile.

Seeks continued cooperation under SDI research contracts between the U.S. and its allies, including the encouragement of joint research ventures and the safeguarding of critical technologies from unauthorized transfer to nonalliance nations.

Prohibits the testing of anti-satellite weapons against objects in space until the President certifies to the Congress that the Soviet Union has performed such testing. Terminates such prohibition on October 1, 1986.

Authorizes appropriations to the Air Force for FY 1986 to carry out the satellite survivability project of the Air Force Space Survivability Program.

Requires the Secretary of the Air Force, not later than February 1, 1986, to report to the Senate and House Armed Services Committees concerning the survivability of U.S. satellites with respect to anti-satellite weapons.

Prohibits SDI test or development of nuclear weapons in a manner inconsistent with the various nuclear test-ban treaties.

Title III: Operation and Maintenance - Authorizes appropriations for the armed forces and defense agencies for FY 1986 for operation and maintenance, including funds for the reserve forces, the National Guard, the National Board for the Promotion of Rifle Practice, defense claims, and the court of Military Appeals.

Authorizes additional appropriations for FY 1986 for: (1) unbudgeted increases in fuel costs and as a result of inflation; and (2) unbudgeted amounts for salary, pay, retirement, and other employee benefits for civilian DOD employees.

Authorizes appropriations for FY 1986 for the working capital funds of the armed forces and defense agencies.

Prohibits the use of DOD operation and maintenance funds to purchase expense items with a price of $3,000 or more.

Authorizes the Secretary of Defense to provide logistical support, manpower, equipment, and other services in support of the Tenth International Pan American Games. Authorizes appropriations for such purpose. Requires, before any Pan Am Games assistance is given, the establishment of a law enforcement coordination entity to justify to the House and Senate Armed Services Committees the necessity of such assistance.

Makes sums available from authorized funds as necessary to the Air Force for the establishment, operation, and maintenance of a Special Operations Wing of the Air Force Reserve and for the operation of the Directorate of the Department of Defense Task Force on Drug Law Enforcement. Requires the Secretary of Defense to report to the Committees on Armed Services of the Senate and House of Representatives on the manner in which DOD plans to obligate funds for the operation of the Special Operations Wing and the Task Force on Drug Law Enforcement. Outlines details to be included in such report.

Authorizes the Secretary of a military department to donate unmarketable but otherwise edible commissary food to authorized charitable nonprofit food banks.

Authorizes the Secretary of Defense to allow commissary and exchange privileges to surviving dependents of reserve members who die while on active duty or while travelling to perform active duty or inactive duty for training.

Reduces the FY 1986 authorizations for operation and maintenance to the armed forces, reserves, and National Guard in specified amounts, due to prior-year cost savings.

Specifies certain core-logistics functions of the armed forces and defense agencies to be subject to certain contracting-out limitations. Excludes certain functions from such limitations.

Prohibits funds appropriated to the Air Force from being used to deactivate or divest any flying unit of the Air National Guard or Air Force Reserve.

Authorizes the Secretary of Defense to provide certain assistance to those who have been displaced or are refugees because of the invasion of Afghanistan by the Soviet Union.

Title IV: Military Personnel Authorizations - Part A: Active Forces - Authorizes strengths for active duty personnel as of the end of FY 1986. Amends the Department of Defense Authorization Act, 1981, to extend for one year the limitation on the enlistment for active duty in the armed forces of persons whose scores on the Armed Forces Qualification Test is below a prescribed level.

Part B: Reserve Forces - Authorizes average strengths for the selected reserve components of the armed forces for FY 1986. Permits the reduction and increase in such strengths as specified. Authorizes as specified number of reserves to serve on full-time active duty in order to organize, administer, instruct, recruit, or train the reserve components. Permits the end strength levels to be increased by two percent in the national interest. Increases the number of certain personnel authorized to be on active duty in support of the reserve components.

Part C: Military Training - Authorizes average military student loads for FY 1986 for the armed forces, to be adjusted in conformity with the previously-authorized personnel strengths.

Title V: Defense Personnel Policy - Part A: Civilian Personnel - Waives the application of the civilian personnel ceiling for each component of the armed forces for FY 1986. Revises provisions concerning the DOD personnel management end strengths for a fiscal year.

Part B: Active Military Personnel - Increases the authorized number of majors in the Marine Corps.

Revises provisions concerning service agreements of cadets of the U.S. Military Academy to define a breach of agreement by a cadet which would authorize the Secretary of the Army to transfer such cadet to the Army Reserve (in lieu of active-duty service). Similarly revises provisions concerning the service agreements of midshipmen at the U.S. Naval Academy and cadets at the U.S. Air Force Academy.

Revises retirement provisions for members of the armed forces whose retirement is based upon physical disabilities incurred while entitled to basic pay to require such disability to be of a permanent and stable nature. Revises provisions concerning the discharge or reentry into duty of members with a temporary disability.

Changes the name of the grade of commodore in the U.S. Navy to rear admiral (lower half).

Part C: Reserve Military Personnel - Extends certain reserve officer management programs through FY 1987. Authorizes the Secretary of the Army to retain in active status until age 60 an officer who: (1) is an officer in the Army National Guard; or (2) is employed as a technician in the National Guard or Army Reserve for which membership in such Guard or Reserve is required as a condition for employment, who would otherwise be removed from active duty because of years in service. Authorizes the Secretary of the Air Force to similarly retain officers employed as technicians in the National Guard or Air Force Reserve who would otherwise be removed from active duty because of years in service.

Authorizes the Secretary of the Army to retain up to ten officers in the reserve grade of major general who would otherwise be removed from active duty because of years in service or grade.

Directs the Secretary of Defense to conduct a test of the Army's ability to muster members of the Individual Ready Reserve in time of war or national emergency. Requires the Secretary to report on such muster test to the Committees on Armed Services of the Senate and House of Representatives not later than February 1, 1986.

Part D: Miscellaneous - Revises provisions concerning the appointment of regular and reserve warrant officers. Grants to the Secretaries of the Navy and Air Force authority to conduct independent criminal investigations through the use of their own investigative units.

Authorizes the Secretary of Defense, or the Secretary of Transportation with respect to the Coast Guard when it is not operating as a service in the Navy, to award a prisoner of war medal to former U.S. prisoners of war.

Excludes a lieutenant general or vice admiral serving as Director of the Department of Defense Task Force on Drug Enforcement from the number authorized to serve in that grade in the armed forces.

Makes certain lawfully-admitted aliens eligible for junior reserve officers training (ROTC).

Title VI: Compensation and Other Personnel Benefits - Part A: Basic Pay and Allowances - Prohibits adjustment to compensation levels of members of the uniformed services in conformity with adjustment to GS-level compensation of employees of the Federal Government during 1986. Increases by 3.0 percent, effective January 1, 1986, the rates of basic pay for all military personnel.

Authorizes the payment of a variable housing allowance (VHA) for certain members of the armed forces who pay child support.

Repeals the authority for the payment of a station housing allowance during FY 1985 for members assigned to a duty station in Alaska or Hawaii.

Authorizes the payment in advance of the VHA and the basic allowance for quarters (BAQ). Revises provisions concerning the payment of a BAQ for members without dependents who are assigned to field duty or sea duty.

Limits the amount available for FY 1986 for reimbursement for accommodations in place of quarters. Extends the authorization for the payment of such reimbursement through FY 1986.

Part B: Travel and Transportation - Increases from one to two months the dislocation allowance for members and/or their dependents who make an authorized move in connection with such member's permanent change of duty station. Revises provisions which enumerate the general travel and transportation allowances for members and their dependents.

Defines the residence of a student dependent for purposes of the determination of dependents' travel and transportation allowances.

Authorizes dependent student travel allowances for dependents of members stationed in Alaska or Hawaii.

Authorizes the Secretary concerned to carry out a program to test a flat rate per diem system for travel allowances for travel performed by members of the armed forces while on temporary duty. Directs such program to begin October 1, 1985, and end September 30, 1986.

Authorizes appropriate pay allowances to certain members directed to perform overnight duty at their duty station.

Revises provisions concerning the allowance of travel expenses for members during a ship overhaul or inactivation. Authorizes travel allowance for travel performed in connection with certain leave.

Part C: Bonuses and Special Incentive Pays - Subpart 1: Active Forces - Requires not less than 75 percent of a reenlistment bonus to be paid at the beginning of the reenlistment period, with any remaining amount paid in equal annual installments.

Increase the special continuation pay for a Navy nuclear officer who agrees to extend his or her tour of duty for a specified period. Revises provisions concerning the period of agreement for such officers. Extends to September 30, 1990, the period during which an officer must sign a service-continuation agreement to be eligible for such special pay. Revises similarly special-pay provisions for individuals selected for officer naval nuclear power training who execute certain agreements to train for qualification in such field. Increases the bonus provided and extends until September 30, 1990, the agreement-execution date. Revises the annual incentive bonus provisions for nuclear-career officers to increase such bonus and extend to October 1, 1990, the period during which such bonuses shall be paid. Revises provisions concerning eligibility for such bonus pay.

Increases incentive pay for submarine duty according to a revised table based on pay grade and years of service.

Revises special pay for dental officers in the armed forces to establish annual special pay according to a schedule based on years of service. Provides additional special pay if such dental officers are board-certified. Repeals Federal law relating to continuation pay for dentists in the armed forces. Authorizes certain dental officers to execute new service agreements in order to be eligible for the increased special pay under this Act.

Provides that a discharge in bankruptcy does not discharge a medical officer in the armed forces from repayment to the United States of any unearned portion of special pay paid to such officer.

Increases the rate of monthly special pay for qualified enlisted members who extend their duty at designated overseas locations.

Extends through FY 1988 the authorization for continuation pay for aviation officers.

Subpart 2: Reserve Forces - Increases and extends through FY 1990 Selected Reserve enlistment and reenlistment bonuses.

Authorizes a prior-service enlistment bonus for former enlisted members who enlist in a certain unit of the Selected Reserve of the Ready Reserve. Requires repayment of any unearned bonus for those persons who fail to satisfactorily serve any agreed-upon enlistment or reenlistment period. Prohibits the payment of any bonus for an enlistment after September 30, 1990.

Increases the Selected Reserve affiliation bonus and extends the eligibility date for payment of such bonuses to September 30, 1990.

Authorizes incentive pay for members of the Selected Reserve who are assigned to certain high-priority units. Limits the amount of such pay to a maximum of $10 per drill.

Revises provisions concerning eligibility for an active-duty reenlistment bonus.

Extends through September 30, 1990, the enlistment and reenlistment bonus payments of the Individual Ready Reserve.

Authorizes the payment of a bonus for the enlistment or reenlistment for a period of three or six years in the Individual Ready Reserve of a person with critical skills. Provides amounts of such bonuses, depending upon the length of service agreed to. Authorizes the Secretary of Defense to require muster or drill on an annual basis for those receiving such bonuses.

Modifies the computation of hazardous duty incentive pay for members of the Selected Reserve.

Authorizes repayment by the Secretary concerned of education loans of certain health professionals who serve in the Selected Reserve. Specifies those individuals eligible for such loan repayments. Limits the amount of such loan repayment to a maximum amount of $3,000 per year of service, with a total amount not to exceed $20,000.

Makes members of the Selected Reserve eligible for the armed forces health professions scholarship program. Increases from 5,000 to 7,500 the number of members who may be appointed to such program.

Part D: Health Care Matters - Authorizes the Secretary of Defense to establish dental benefit plans for spouses and children of members of the uniformed services who are on active duty for a period of more than 30 days. Requires members enrolling in such plan to pay a share of the member's premium. Prohibits such dental benefits from including a benefit other than: (1) diagnostic, oral examination, and preventive services and palliative emergency care; and (2) basic restorative and composite services and dental appliance repairs.

Eliminates the payment of a deductible under the Civilian Health and Medical Program of the Uniformed Services (CHAMPUS) and co-payment for active duty dependents living in areas remote to a medical facility of the armed forces.

Limits to $1,000 the annual payment for catastrophic loss protection under CHAMPUS. Limits to $3,000 the annual payment for health care coverage under CHAMPUS.

Authorizes medical and dental care to dependents of members: (1) who are on active duty for more than 30 days or who die while on that duty; or (2) who die while in a certain status or traveling to perform in a certain status. Authorizes similarly CHAMPUS care for such dependents.

Provides CHAMPUS coverage for military dependents for certain organ transplants, under specified conditions.

Directs the Secretary of Defense to establish and appoint, within 180 days after the enactment of this Act, an Advisory Panel on Medical Aspects of Casualty Resolution (the panel) to study procedures used by the military departments for medical casualty investigations of members who die or are seriously injured while on active duty. Requires the panel, after conducting such study, to make appropriate recommendations to the Secretary of Defense concerning autopsies and other concerns related to the investigation of military casualties. Provides for payment through DOD of the expenses of such panel. Requires the panel to report to the Secretary within one year after its appointment. Requires the Secretary, 180 days thereafter, to file such report with the Congress, together with recommendations.

Provides that no person under the jurisdiction of the Secretary of a military department may provide health-care independently as a health-care professional unless the person has a current license to provide such care. Allows the Secretary of Defense to waive such requirement in unusual circumstances. Provides civil penalties for the unlicensed practice of health-care. Excepts from such requirement during the three years beginning on the date of enactment of this Act any person who on the date of enactment of this Act is a member of the armed forces.

Part E: Military Retirement - Limits amounts available to the DOD for military personnel accounts for FY 1986 for basic pay and payment into the Department of Defense Military Retirement Fund for each military department.

Requires the Secretary of Defense to submit to the Congress a report proposing changes in the military nondisability retirement system. Outlines proposed changes to be included in such report. Specifies the accounting methods to be used in determining the cost of any changes in such retirement system.

Part F: Survivor Benefit Plan Improvements - Survivor Benefit Plan Amendments of 1985 - Subpart 1: General Program Changes - Revises provisions concerning the computation of Survivor Benefit Plan (SBP) annuities to provide varying portions of the base amounts of such annuities depending upon the age of the annuitant. Provides that the annuity for a former spouse shall be 55 percent of the pay of the person who elected to provide such annuity. Revises computation of annuities to a surviving spouse to provide varying percentages of the deceased's pay to such annuitant depending upon the age of such annuitant. Provides that any such annuities shall be reduced by the amount of dependency and indemnity compensation the surviving spouse is entitled to. Provides for a reduction of annuity upon the annuitant's attaining age 62. Outlines those eligible for annuities under the SBP. Provides that such annuities shall also be reduced by any monthly amount the annuitant is entitled to under title II (Old Age, Survivors and Disability Insurance) of the Social Security Act, for annuities from both former active-duty and reserve component members. Requires the Secretary of Defense to prescribe regulations for the determination of annuity amounts, taking into consideration specified information.

Provides for SBP coverage for members who die after completing 20 years of service, but before becoming eligible for full retirement due to a shortage of active commissioned service. Makes eligible for such annuity the surviving spouse and dependent children of a person who dies on active-duty after September 20, 1972, and the former spouse of a person who dies after September 7, 1980.

Allows the Secretary concerned to pay an annuity to the surviving spouse of a person eligible to provide a reserve-component annuity but who dies within 90 days of qualifying for such annuity. Makes eligible for such annuity the surviving spouse and dependent children of any person who dies after September 30, 1978, and the former spouse of a person who dies after September 7, 1982.

Modifies the threshold amount for the calculation of the reduction of retired pay upon attaining a specified age.

Requires spousal concurrence of certain choices made by an SBP participant with regard to plan coverage.

Allows a person who is providing SBP coverage for a spouse or a spouse and child and who remarries to elect not to provide coverage for the previous spouse upon remarriage, provided he or she obtains the consent of the previous spouse. Allows such person the option of providing higher coverage to a former spouse after remarriage if such person had not previously been providing the highest possible coverage. Allows an SBP participant to provide an annuity for a former spouse and the dependent child of such spouse if such child resulted from the person's marriage to that former spouse. Allow persons who made an annuity election before the date of enactment of this Act to make a new election under the provisions of this Act.

Requires a widow or widower whose annuity is readjusted to repay any amount overpaid. Reduces an annuity by the amount of any dependency and indemnity compensation received.

Subpart 2: Provisions Relating to Rights for Spouses and Former Spouses - Requires spousal concurrence for an election: (1) not to participate in a SBP; (2) to provide a less-than-maximum spousal annuity; or (3) to provide an annuity for a dependent child but not for the person's spouse. Makes similar requirements for reserve-component annuity elections. Provides for an election without spousal concurrence if the spouse's whereabouts cannot be determined or in other unusual circumstances. Requires certain parties to be informed of the possibility or the occurrence of such annuity elections.

Part G: Miscellaneous - Extends legal representation under the Uniform Code of Military Justice to civilians employed by or accompanying the armed forces overseas.

Directs the Secretary of Defense to require a surcharge to be made upon each person to whom a sale is made at a military animal disease prevention and control center.

Changes from September 1, 1976, to February 9, 1976, the trigger date for the payment of certain military accrued leave.

Standardizes Naval and Marine Corps service pay allotments with that of the Army and Air Force.

Authorizes deductions from pay of members who make checks drawn or payable to the United States that are dishonored. Requires certain notification to and failure to act on the part of the member before any such deductions are made. Makes such section applicable to checks drawn or made after the date of enactment of this Act.

Title VII: Civil Defense - Authorizes appropriations for FY 1986 for civil defense matters.

Title VIII: Procurement Policy Reform and Other Procurement Matters - Directs the Secretary of Defense to require a covered contract to provide that if the contractor submits to DOD for payment costs specified by law as unallowable, then: (1) such cost will be disallowed; and (2) a specified penalty will be imposed upon such contractor. Provides civil and criminal penalties for contractors who knowingly submit for reimbursement costs unallowable by law.

Lists the following costs as disallowed under such a contract: (1) entertainment and social activities; (2) costs incurred to influence action on legislation or appropriation matters pending before the Congress; (3) costs for the defense of any fraud proceeding; (4) fines and penalties imposed for noncompliance with Federal, State, or local laws and regulations; (5) costs of membership in any social or dining club or organization; (6) alcoholic beverages; (7) contributions or donations; (8) advertising; (9) models, gifts, souvenirs, or other memorabilia; (10) other items as prescribed by the Secretary of Defense; and (11) aircraft travel to the extent such costs exceed the standard commercial fare. Allows such noncommercial air travel in specified limited circumstances.

Requires the Secretary of Defense, within 150 days after the enactment of this Act, to issue regulations concerning the allowability of indirect contractor costs under DOD contracts. Requires such regulations to: (1) define in detail unallowable costs; and (2) provide that specific costs unallowable under one cost principle shall not be allowable under any other cost principle. Provides that such regulations shall require than a contractor provide current, accurate, and complete documentation to support the allowability of an indirect cost.

Requires a defense contract auditor, whenever feasible and practicable, to be present at any meeting or negotiation regarding the allowability of an indirect cost. Requires a contractor to certify that all indirect costs included in a final settlement proposal are allowable. Allows the Secretary of Defense or the Secretary of the military department concerned to waive such certification in specified limited circumstances.

Gives the Secretary of Defense the authority to subpoena defense contractor records in order to determine the validity of submitted costs. Provides for the limited delegation of such authority.

Limits to five years the tour of duty of a principal contracting officer of DOD with respect to a defense contract. Authorizes the Secretary of Defense to waive such limitation in specified exceptional circumstances. Prohibits the Secretary of Defense and the Secretaries of the military departments, in contracting for off-duty postsecondary education services for members of the armed forces or defense agencies, from discriminating against an associate degree school due to lack of authority to award a baccalaureate degree. Prohibits the limit of course offerings to a single educational institution, with specified exceptions.

Requires the Comptroller General to carry out a study to review all available information concerning the organizational structure for defense procurement. Requires the Comptroller to report to the Congress recommendations concerning the feasibility of creating an agency outside DOD to oversee all defense procurement. Requires such report within one year after the enactment of this Act.

Revises provisions concerning the requirement of a minimum percentage of competitive defense procurements during a fiscal year by DOD.

Directs the Secretary of Defense, within 180 days after the enactment of this Act, to report to the Congress concerning suspension and debarment of defense contractors. Requires the Secretary to ensure that an independent compliance officer monitors the activities of a debarred or suspended defense contractor.

Prohibits a former officer or employee of the Department of Defense (DOD) or former retired member of the uniformed services from accepting compensation from a Government contractor for two years following the individual's separation from Government service if, during the two years preceding separation from service, such individual has significant responsibilities for a procurement function with respect to that contractor. Specifies penalties for violations of this prohibition. Requires defense contractors to include in defense contracts a provision stating that the contractor agrees not to compensate an individual who falls under such category. Specifies penalties for a contractor's violation of this requirement. Requires contractors subject to such a contract term to issue an annual report listing specified information concerning individuals who had significant responsibilities for a procurement function, left Government service within the previous two years, and was compensated by that contractor after leaving Government service. Requires the first such report no later than April 1, 1987. Requires the Secretary of Defense to assess such reports and report any possible violations to the Attorney General. Provides penalties for those contractors failing to file such report. Requires the Director of the Office of Government Ethics to have access to such reports and to submit an annual report to the Congress concerning such reports. Excludes from application of these sections those contracts for an amount less than $100,000.

Requires the Secretary of Defense, not later than 180 days after enactment of this Act, to delineate the procurement functions covered by these sections and provide a list of such functions to the Congress.

Allows an individual who is offered compensation which might be in violation of this Act to apply to the Director of the Office of Government Ethics for advice on the applicability of this Act to such compensation.

Requires the Secretary to prepare a plan for competition for major defense acquisition programs before beginning the full-scale engineering development under any such program. Requires the Secretary to report such plan to the Senate and House Armed Services Committees, not later than at the same time the Secretary submits budget requests for full-scale engineering development programs. Outlines proposals to be included in such plan. Requires the Secretary to determine whether competitive alternative sources of competition exist for a program, and, if not, to revise the plan of competition. Requires at least two sources of supply before full-scale engineering development of a program takes place. Requires the Secretary to ensure that, of the total dollar amount of contracts awarded for a fiscal year for major acquisition programs, the amount awarded to the contractors whose proposals were most advantageous to the United States shall be greater than the amount awarded other contractors. Provides for waiver of such competition requirements in specified limited circumstances.

Requires a defense contractor that is responsible for the acquisition of property or services under a covered defense contract to record the contractor's proposed and negotiated cost and pricing data into appropriate categories such as labor costs, material costs, subcontract costs, overhead costs, general and administrative costs, fee or profit, and recurring or nonrecurring costs. Requires bills of labor to reflect a computation of work required in manufacturing parts and assemblies, and other specified information.

Title IX: Department of Energy National Security Programs - Department of Energy National Security and Military Applications of Nuclear Energy Authorization Act of 1986 - Part A: National Security Programs Authorization - Authorizes appropriations for the Department of Energy (DOE) for FY 1986 for operating expenses and for plant and capital equipment in carrying out national security programs in the following areas: (1) naval reactors development; (2) weapons activities; (3) verification and control technology; (4) defense nuclear materials production; (5) defense nuclear waste and byproduct management; (6) nuclear safeguards and security technology development; (7) security investigations; (8) materials production; and (9) capital equipment not related to construction.

Part B: Recurring General Provisions - Prohibits the use of funds authorized under this Act where the costs of the program exceed 105 percent of the program authorization or the costs exceed by more than $10,000,000 the amount authorized by this Act, whichever is the lesser. Prohibits the use of funds authorized by this Act 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.

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

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

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

Authorizes the Secretary to perform construction design services for construction projects in support of national security programs.

Allows authorizations to be adjusted for pay and benefits increases for Federal employees.

Part C: Special Programs Provisions - Reduces the amounts appropriated under this Act by 32,280,000, such funds being obtained from other funds, or through management savings and program cuts.

Authorizes the Secretary of Energy to obligate specified funds during FY 1986 for the purpose of carrying out a contract with Anderson County and Roane County, Tennessee, and the city of Oak Ridge, Tennessee, for payments pursuant to the Atomic Energy Community Act of 1955. Requires the Secretary, no later than February 1, 1986, to report to the appropriate congressional committees concerning the need for any further financial assistance under such Act. Prohibits the obligation of funds for such assistance until the Secretary has complied with certain notice-and-wait procedures.

Authorizes the Secretary to obligate specified FY 1986 funds for the renovation of a DOE building at Oak Ridge, Tennessee, if the Secretary determines that the building requires such renovations.

Prohibits funds appropriated under this title from being used for any of the following purposes: (1) publicity or propaganda purposes not authorized by the Congress; (2) advertising (with limited exceptions); (3) influencing legislative action on matters pending before the Congress; (4) contributions or donations; (5) initiation fees or social dues; (6) gifts; (7) entertainment costs; and (8) the use of corporate aircraft for other-than-business purposes.

Title X: Military Family Policy and Programs - Military Family Act - Establishes in the Office of the Secretary of Defense an Office of Family Policy to coordinate programs and activities of the military departments relating to military families. Requires the Secretary, no later than September 30, 1986, to report to the Congress on the activities of such Office, together with recommendations concerning the well-being of military families. Transfers the Military Family Resource Center of DOD to the Assistant Secretary of Defense for Manpower, Installations, and Logistics.

Authorizes the Secretary to conduct surveys of military families to determine the effectiveness of Federal programs and the need for new programs.

Increases employment opportunities for spouses of military members stationed outside the United States. Directs the Secretary to issue regulations ensuring employment opportunities for military spouses in the same geographic area as their husband or wife is assigned.

Directs the Secretary to have established at each military installation a youth sponsorship program to facilitate the integration of children to new surroundings brought about due to a parent's permanent change of station.

Allows certain DOD transportation and travel funds to be obligated for travel within or between the contiguous United States. (Currently, such funds are used only for overseas travel).

Authorizes the Secretary to contract with firms to provide certain relocation and housing assistance to families of military members.

Raises the amortization period for parking facilities provided for military members and families for house trailers and mobile homes from 15 to 25 years. Revises provisions concerning the cost of unaccompanied personnel housing for certain members of the uniformed services.

Prohibits charging certain enlisted personnel and their families a price for meals sold at messes in excess of a level sufficient to cover food costs. Requires the Secretary of Defense to provide payments to military child care facilities for reimbursement of food costs. Requires the Secretary, no later than December 31, 1985, to report to the Congress on the feasibility of having DOD issue food stamps to overseas military households. Outlines information to be included in such report.

Requires the Secretary to request each State to provide for the reporting to the Secretary of any information concerning known or suspected instances of child abuse and neglect where the person having care of the child is a member (or spouse of a member) of the armed forces.

Directs the Secretary, within one year after enactment of this Act, to report to the Congress on the availability and affordability of off-base housing for members of the armed forces and their families. Outlines information to be included in such report. Directs the Secretary at the same time to report to the Congress proposed administrative or legislative action which would facilitate families of military members making a permanent change of station so that their dependent children will not be unduly disrupted or burdened by transferring between schools with different graduation requirements.

Title XI: General Provisions - Part A: Financial Matters - Authorizes the transfer of authorizations to DOD between departments in the national interest. Limits to $2,000,000,000 the total amount of authorizations which can be so transferred. Requires the Secretary of Defense to promptly notify the Congress of any such transfers.

Requires the Secretary of Defense to have established in each military department an accounting procedure to aid in the cost and control of contracted advisory and assistance services. Requires the Secretary, within six months after the date of enactment of this Act, to report to the Congress concerning such accounting procedure. Requires the Secretary, within six months after the enactment of this Act, to prescribe regulations describing such advisory and assistance services and their relation, if any, in support of a weapons system. Requires documents presented to the Congress in support of the annual budget to identify such advisory and assistance services.

Directs the Secretary to submit to the Congress a five-year defense plan for FY 1986-1990 in which: (1) the total amount of new budget authority proposed for DOD for each fiscal year is not more than three percent over the amount proposed for the previous fiscal year, adjusted for inflation; and (2) the total amount of new budget authority is not more than the amount proposed for the previous fiscal year, adjusted for inflation. Outlines matters to be included in such report and requires such report within 90 days after enactment of this Act.

Directs the Secretary, within 90 days after enactment of this Act, to report to the Congress an explanation of what DOD does in any fiscal year with funds unexpended as a result of lower inflation. Outlines information and recommendations to be included in such report.

Authorizes appropriations to DOD for FY 1986 for the transportation of nonlethal assistance to Afghan refugees.

Requires reports by the Secretary to the Senate and House Armed Services Committees of unobligated balances of DOD. Outlines matters to be included in such reports and requires such reports to be submitted concurrently with the President's annual budget submission to the Congress.

Authorizes the transfer of certain funds for FY 1985 for civilian and military pay raises as provided by law.

Part B: Defense Management - Requires specified additional information to be included in annual selected acquisition reports. Requires the Secretary of Defense, within 30 days after the enactment of this Act, to resubmit the selected acquisition reports for the first quarter of FY 1985.

Requires certain additional information concerning items of equipment of the National Guard and the reserve components to be included in annual DOD operations and maintenance reports.

Prohibits funds appropriated to DOD from being used to provide certain technical information or assistance to foreign governments.

Requires the Secretary of the Navy to ensure that at least one-half of the depot-level maintenance work for naval vessels for FY 1986-1988 is carried out in the United States.

Requires the Secretary of Defense to conduct a study for formulating a plan for the destruction of chemical agents and munitions before any such destruction takes place. Requires a copy of such study to be submitted to the Committees on Armed Services of the Senate and House of Representatives.

Directs the Secretary of Defense to carry out a demonstration project testing the use of a certain computer system in military hospitals. Outlines certain information concerning such project and requires a report by the Secretary to the Congress. Requires the Comptroller General to report to the Congress as to whether the Secretary has properly carried out such demonstration project.

Specifies various initial operational capability dates expected to be met by the Secretary of the Air Force for the Air Force Shuttle Operations and Planning Complex.

Authorizes the Secretary of Defense to enter into cooperative agreements with eligible entities who agree to furnish procurement technical assistance to business entities. Authorizes the Secretary to defray 50 percent of the cost of the eligible entity's cost of providing such assistance, or 75 percent of such cost if such entity is a distressed entity. Limits to $150,000 the payment to any single entity during any fiscal year. Provides for the geographic distribution of such assistance. Limits the total amount of such assistance during FY 1986 and 1987 to $7,500,000.

Directs the Secretary of Defense to require that progress payments under a defense contract shall be paid only after such work is completed and only in accordance with a specified payment schedule. Requires contract terms, specifications, and price to be definite before progress payments for more than 80 percent of the work can be made.

Establishes the Congressional Commission on Strategic Defense (the Commission) to monitor the progress of certain DOD programs known as the Strategic Defense Initiative. Outlines membership and reporting requirements of the Commission. Terminates such Commission as of October 1, 1990.

Extends through October 1, 1987, the prohibition on entering into contracts for the performance of firefighting and security functions within DOD. Requires the Secretary, no later than March 1, 1986, to report to the Congress an assessment of firefighting and security functions within DOD.

Part C: Miscellaneous Reporting Requirements - Extends the date for the submission of certain reports by the Commission on Merchant Marine and Defense.

Directs the Secretary of the Navy to report to the Committees on Armed Services of the Senate and House of Representatives on the industrial base for the construction, overhaul, and repair of naval vessels. Outlines information to be included in such report, including an assessment of the current capabilities of the shipyard base.

Prohibits the obligation of funds for the design or construction of nuclear reactor components for the SSN-21 class submarine until the Secretary of the Navy makes a report on such to the Committees on Armed Services of the Senate and House of Representatives.

Directs the Secretary of Defense to conduct a feasibility study and a demonstration project in stocking American-produced beef, pork, and lamb in three Air Force commissaries in Europe to test their saleability. Requires the Secretary to report the results of such study and project to the Congress within one year after enactment of this Act.

Directs the Secretary, within 90 days after enactment of this Act, to report to the Senate and House Armed Services Committees concerning certain matters involved in the testing of chemical warfare agents.

Directs the Secretary to conduct a study of providing a system of point defense for land-based strategic forces. Requires a report to the Congress on such study no later than April 30, 1986.

Directs the Secretary, no later than six months after the enactment of this Act, to report to the Congress a plan for revising the organizational structure of the military health-care delivery system in order to accomplish certain specified goals. Requires the Secretary of each military department and the Joint Chiefs of Staff to conduct independent studies concerning such matter.

Directs the President, within 30 days after enactment of this Act, to report to the Congress concerning the possible dismantling of Poseidon-class submarines.

Directs the Secretary of the Navy to report to the Senate and House Armed Services Committees on the possible removal of the Basic Point Defense Missile System for naval amphibious vessels. Prohibits the Secretary from removing such system until the report is submitted.

Directs the Secretary of Defense, no later than March 1, 1986, to report to the Senate and House Armed Services Committees its annual report on nuclear winter findings and policy implications. Requires reports on the same subject on March 1 of 1987 through 1990.

Directs the Secretary of the Army to conduct a study on possible retirement-benefits increases for members of the Philippine Scouts who served during World War II. Requires the Secretary to report his findings to the Senate and House Armed Services Committees within one year after the enactment of this Act.

Directs the Secretary of Defense, on or before November 1, 1985, to report to the Congress concerning the ability of U.S. industries to serve the defense needs of the United States.

Directs the Secretary and the Administrator of the Small Business Administration, within 180 days after enactment of this Act, to report to the Senate and House Armed Services and Small Business Committees, respectively, on the feasibility of requiring competitive procedures for DOD contracts awarded under the Small Business Administration's set-aside program.

Directs the Secretary of Defense, by March 31, 1986, to report to the Congress on DOD efforts to increase defense contract awards to Indian-owned businesses.

Directs the Secretary, within 90 days after enactment of this Act, to report to the Congress concerning possible ways the United States may further its national security interests in the Far East. Outlines matters to be included in such report.

Part D: Technical and Clerical Amendments - Eliminates various gender-based distinctions contained in specified Federal provisions pertaining to the armed forces.

Eliminates service credit for certain service as a nurse, woman medical specialist, or civilian employee of the Army Medical Department.

Eliminates the entitlement to a higher grade for retirement of certain regular and reserve commissioned officers, Army Nurse Corps members, or dieticians or physical therapists who performed active duty during a specified time period.

Makes technical amendments relating to benefits for certain Defense Intelligence Agency personnel.

Provides benefits similar to those for foreign service officers to certain members assigned to overseas duty within the Defense Intelligence Agency.

Part E: Strategic Defense Initiative Commission - Directs the President, within 30 days after enactment of this Act, to establish a Strategic Defense Initiative Commission (the Commission) to oversee the Strategic Defense Initiative program. Outlines duties, membership, staffing, and administrative powers of such Commission. Directs the Commission, not later than six months after enactment of this Act, to report to the President and each House of the Congress its findings and recommendations with regards to the SDI program. Terminates the Commission after the submission of such report.

Part F: Miscellaneous - Authorizes the provision of residence-to-work transportation for the Commandant of the Coast Guard.

Requires to be deposited annually in the National Defense Stockpile Transaction Fund 30 percent of all moneys accruing to the United States from lands in the naval petroleum and oil shale reserves (Currently, such deposit is required only for collections made during FY 1985).

Expresses the sense of the Congress that the President should recognize, by Presidential proclamation, the contribution of our young men to the success of the peacetime registration program.

Prohibits a Federal officer, employee, or member of the Congress from accepting any gift or momento valued at $100 or more in connection with a naval shipbuilding ceremony.

Authorizes the Secretary of the Navy to transfer certain aircraft to institutions leasing such aircraft.

Requires the Secretary of Defense, no later than January 15, 1986, to report to the Committees on Armed Services and on Appropriations of the Senate and House of Representatives on a proposed two-year budget cycle for DOD.

Directs the Secretary of the Navy to conduct a study on the possible use of E-2 aircraft for drug interdiction purposes along the U.S.-Mexico border. Requires the Secretary to report the results of such study to the Congress no later than September 30, 1986.

Makes certain technical and clerical amendments to various provisions of Federal procurement law.

Directs the Secretary of Defense, within 120 days after the enactment of this Act, to establish a test program in each military department and in the Defense Logistics Agency under which persons requesting a solicitation package shall be required to pay a fee.

Authorizes the Commander in Chief to take necessary steps to protect U.S. armed forces against terrorism and terrorist activities.

Directs the Secretary of Defense to monitor the capability of the domestic textile and apparel industrial base to support defense mobilization requirements, and report the results of such monitoring to the Congress not later than April 1 of each of the five years beginning with 1986.

Directs the Secretary to provide that alcoholic beverages procured by DOD for resale on a military installation located in any State shall be procured in the State in which the installation is located.

Establishes the minimum age with respect to the purchase and consumption of alcohol by State law as the minimum age on military installations located in that State. Establishes the minimum age for military installations located in more than one State or in one State but within 40 miles of another State, Mexico, or Canada, as the State law, Mexican law, or Canadian law that has the lower minimum age. Authorizes exemption under special circumstances, but requires reports from the head of the military department involved to the Secretary of Defense, who then must report such to the Congress.

Authorizes the sale of certain recordings of the U.S. Air Force Band.

Authorizes the Secretary of the Army to provide uranium tetrofluoride (green salt) to a contractor for the production of conventional ammunition for the Army.

Authorizes the Secretary of the Army to construct an Armed Forces National Science Center at or near Fort Gordon, Georgia, for the enhancement of communications and electronics development in the interest of national security. Authorizes the Secretary to appoint an advisory board to aid in the operation of the Center. Authorizes the Secretary to make such Center available to the National Science Center for Communications and Electronics Foundation Incorporated (a nonprofit Georgia corporation) for joint use.

Provides that an officer or employee of a defense contractor who is under indictment for fraud or any other felony arising out of a contract with DOD shall be personally suspended from working on or supervising a defense contract. Prohibits such person, if convicted, from employment with DOD for not less than one nor more than five years.

Limits the use of authorized funds for certain DOD contracting-out services.

Authorizes additional appropriations for FY 1986 for the armed forces for procurement and military programs of the conventional (non-nuclear) forces of the United States.

Requires a certain amount of appropriated funds authorized by this Act to be used for contracts entered into with small businesses owned and controlled by socially and economically disadvantaged individuals. Requires the Secretaries of Defense and of Energy to submit semiannual reports to the Congress on their compliance with this provision, with the first such report due not later than May 1, 1986.

Directs the Secretary of Defense to carry out the destruction of the existing stockpile of lethal chemical agents and munitions, such destruction to be completed by September 30, 1994. Authorizes the deferral of such weapons destruction if war, national emergency, or other exigent circumstances occur. Requires the Secretary to notify the Congress of any such deferral. Requires the Secretary to provide maximum protection to the environment during any such destruction of chemical weapons. Directs the Secretary to develop a comprehensive plan for destruction of such weapons without environmental damage. Directs the Secretary to establish within the Department of the Army a management organization to carry out such plan. Requires such organization to be established by May 1, 1986. Directs the Secretary to submit to the Congress an annual report, on December 15 of each year beginning with 1985, on activities carried out under such plan. Outlines information to be included in such reports.

Prohibits, except in limited circumstances necessary for national security, any agency of the Federal Government from developing or acquiring lethal chemical agents or munitions after the date of enactment of this Act. Expresses the sense of the Congress that the President should reaffirm the U.S. policy of renouncing the first use of chemical agents and munitions under any circumstances.

Authorizes the Secretary of Defense, in certain circumstances, to assign members of the armed forces to assist drug enforcement officials in drug searches, seizures, or arrests outside the land area of the United States.

Authorizes the President to make cash payments to a member of the armed forces or a family member of such member who is a victim of a hostile action directed against the United States. Outlines matters and expenses for which such payments may be made.

Authorizes home health care to be provided to a chronically ill dependent of an active duty member of the uniformed services, under certain conditions.

Authorizes DOD to enter into contractual agreements for the education of high school students residing on the West Point military reservation. Limits the cost of such contracts.

Directs the Secretary of Defense to conduct a detailed and complete study of U.S. measures to enhance crisis stability and control of nuclear weapons use. Outlines measures to be included in such study. Directs the Secretary to report the results of such study to the Senate Armed Services and Foreign Relations Committees and the House Armed Services and Foreign Affairs Committees by January 1, 1986.

Expresses the sense of the Congress that the Secretary of each military department should provide for free and open competition among commercial travel agencies in the establishment of travel offices and the acquisition of travel services for official travel.

Directs the Secretary of Defense to encourage the transfer of technology between DOD, other Federal agencies, State and local governments, colleges and universities, and private persons. Directs the Secretary to report to the Congress on the implementation of this provision no later than April 1, 1986. Outlines information to be included in such report.

Directs the Secretary of Defense to study the desirability of reinstating the death penalty as an alternative penalty for persons convicted of espionage relating to the national defense. Directs the Secretary to report to the Congress the results of such study, together with legislative recommendations, not later than 30 days after the enactment of this Act.

Directs the Secretary, no later than December 31, 1985, to submit to the Congress a plan for establishing a needs-based survivor annuity program for the surviving spouses of certain retired reservists.

Authorizes the Inspector General of DOD to pay a cash award to any civilian employee of DOD whose disclosure of fraud, waste, or mismanagement has resulted in cost savings to DOD. Specifies the amount of such award and the period during which such awards may be made. Directs the Inspector General to report to the Congress concerning such cash awards on or before March 16, 1988. Directs the Secretary of Defense to similarly report to the Congress on or before March 16, 1988.

Expresses the sense of the Congress that performing groups in the U.S. armed forces should use domestically manufactured entertainment equipment at patriotic and ceremonial events at the U.S. Capitol and at all Federal buildings, unless there is no domestically manufactured item of comparable quality and price.

Directs the Secretary of Defense to establish a military aircraft fuel conservation program and report to the Congress concerning such program within 90 days after the enactment of this Act.

Authorizes and directs the Secretary to institute a program of counterintelligence polygraph examinations for military, civilian, and contractor personnel of DOD, military departments, and the armed forces whose duties involve access to classified information. Limits the scope of questions permitted in such examination to technical questions relating to the unauthorized disclosure of classified information.

Prohibits the obligation or expenditure of authorized funds for introducing U.S. armed forces into Nicaragua for combat. Provides specified limited exceptions to such prohibition.

Directs the Secretary of Defense to exercise certain authorities relating to civilian employees of DOD.

Expresses the sense of the Congress that the revitalization of the readiness of the special operations forces of the armed forces should command the highest priority due to the increase of violent threats in various forms to citizens and property of the United States.

Authorizes the Secretary of the Navy to obligate specified funds for the acquisition of special operations weapons for the Navy for FY 1986.

Directs the Secretary of Defense, not later than April 15 of eacy year, to submit to the Congress an annual report on cost savings under post-1980 DOD contracting-out procedures. Outlines information to be included in such report.

Amends the Uniform Code of Military Justice to establish under such Code the offense of espionage. Allows the death penalty for such offense to be imposed only when the offense directly concerned: (1) nuclear weaponry, military spacecraft or satellites, early warning systems, or other means of defense or retaliation against large-scale attack; (2) war plans; (3) communications intelligence or cryptographic information; or (4) any other major weapons system or major element of defense strategy. Provides procedures to be followed and factors to be considered during sentencing for such offenses.

Directs the Secretary of Defense to achieve a 25 percent reduction in security clearance backlogs. Authorizes appropriations for FY 1986 for such purposes and directs the Secretary to report to the Congress by April 1, 1986, on the level of funding required to achieve such reduction (if the authorized amount is insufficient).

Directs the Secretary, not later than the date on which the budget is submitted for each fiscal year, to submit to the Senate and House Armed Services Committees an annual report setting forth the Secretary's plan for the performance during the next fiscal year of cost analyses of contractors for major defense acquisition programs.

Earmarks specified funds for the acquisition of certain anti-submarine warfare training systems.

Restricts the obligation of funds for production of MX-missile warheads.

Restricts employment of the Standard Missile (SM-2N) or any associated nuclear warhead until 30 calendar days after the Secretary of the Navy submits to the Senate and House Armed Services Committees a report detailing certain information concerning such system.

Prohibits the obligation of funds for the small atomic demolition munition.

Directs the Secretaries of Defense and of Energy, not later than March 1, 1986, to report to the Senate and House Armed Services Committees detailing the military requirements for special nuclear materials through FY 1991. Outlines information, findings, and recommendations to be included in such report.

Provides a criminal penalty for any defense contractor who knowingly and willingly permits any convicted employee to perform any service for such contractor in connection with a defense contract.