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(1) a description of any results of the demonstration project; (2) a comparison of the costs of providing health care under the system used in the demonstration project with the costs of providing health care under CHAMPUS and under other alternative health care delivery systems; and (3) an analysis and evaluation of the benefits of incorporating the health care management techniques demonstrated by the project into the military health care system as it exists at the time of the report or into such health care system in conjunction with any other health care delivery systems which have been or are being studied under another demonstration project. (f) DEFINITIONS.—In this section: (1) The term "catchment area" means the area within approximately 40 miles of a medical facility of the uniformed services. (2) The term "CHAMPUS" has the meaning given such term by section 1072(4) of title 10, United States Code. (3) The term "covered beneficiary" means a beneficiary under chapter 55 of title 10, United States Code.

SEC. 732. ADDITIONAL INITIATIVE

REQUIREMENTS

FOR

CHAMPUS

REFORM

(a) EVALUATION METHODOLOGY REQUIRED FOR DEMONSTRATION

PHASE OF CHAMPUS REFORM INITIATIVE.—(1) Section 702(a) of the

National Defense Authorization Act for Fiscal Year 1987 (Public Law 99-661; 100 Stat. 3899) is amended by adding at the end the lo use 1073 following new paragraph: note. "(4) The Secretary of Defense shall develop a methodology to be Reports. used in evaluating the results of the demonstration project required by paragraph (1) and shall submit to the Committees on Armed Services of the Senate and the House of Representatives a report on such methodology.". (2) Clause (i) of section 702(c)(l)(C) of such Act is amended by inserting before the semicolon the following: ", evaluated in accordance with the methodology developed under subsection (a)(4)". (b) ONE CONTRACT PER CONTRACTOR ALLOWED UNDER SOUCITATION FOR DEMONSTRATION PHASE OF CHAMPUS REFORM INITIATIVE.—No

contractor may be awarded more than one contract for subregions I, II, and III under Solicitation No. MDA903-87-R-0047 (issued for the CHAMPUS reform initiative demonstration project required by section 702(a) of the National Defense Authorization Act for Fiscal Year 1987). (c) LIMITATIONS ON ISSUANCE OF REQUESTS FOR PROPOSALS.—Sec-

tion 702(c) of the National Defense Authorization Act for Fiscal Year 1987 is amended by adding at the end the following new paragraph: "(2) The Secretary may not issue a request for proposals with respect to the second (or any subsequent) phase of the CHAMPUS reform initiative until— "(A) all principal features of the demonstration project, including networks of providers of health care, have been in operation for not less than one year; and "(B) the expiration of 60 days after the date on which the report described in paragraph (I)(C) has been received by the committees referred to in such paragraph.". (d) REPORT ON RISK ASSUMPTION.—No later than 30 days after the date of the enactment of this Act, the Secretary of Defense shall

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submit to the Committees on Armed Services of the Senate and House of Representatives a report on— (1) the level of risk, as of the date of the report, to be assumed by contractors under the request for proposals for the CHAMPUS reform initiative demonstration project required by W section 702(a) of the National Defense Authorization Act for Fiscal Year 1987; and (2) whether any alteration in that level of risk has been made from the time that the original request for proposals was issued. Contracts. 10 USC 1073 note.

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Contracts. 10 USC 1073 note.

(e) REQUIREMENT FOR AVAILABILITY OF ADDITIONAL INSURANCE

COVERAGE.—(1) The Secretary of Defense shall make every effort to enter into an agreement, similar to the one being negotiated with a private insurer on the date of the enactment of this Act, that would provide an insurance plan that meets the requirements described in paragraph (3). (2) If an agreement referred to in paragraph (1) is not entered into before a request for proposals with respect to the second phase of the CHAMPUS reform initiative is issued, the Secretary shall provide for an insurance plan which meets the requirements described in paragraph (3) through either of the following means: (A) By including, in any request for proposals with respect to the second (and any subsequent) phase of the CHAMPUS reform initiative, a requirement for the contractor to offer an option to elect an insurance plan which meets the requirements described in paragraph (3). (B) By including, in any request for proposals for a contract to process claims for CHAMPUS, a requirement for the contractor (known as a fiscal intermediary) to offer an option to elect an insurance plan which meets the requirements described in paragraph (3). (3) The insurance plan requirements referred to in paragraphs (1) and (2) are the following: (A) At the election of the individual, the plan shall be available to an individual losing eligibility (by reason of discharge, release from active duty, a change in family status (including divorce or annulment, or, in the case of a child, reaching age 22), or other similar reason) to be a covered beneficiary under chapter 55 of title 10, United States Code. (B) The plan shall provide for coverage of benefits similar to the coverage of benefits available to the individual under CHAMPUS, regardless of any pre-existing condition. (C) The plan shall provide that enrollees in the plan shall pay the full periodic charges for the benefit coverage. (f) FUNDING LIMITATIONS.—(1) None of the funds appropriated or otherwise made available to the Department of Defense may be obligated or expended for the purpose of entering into a contract for the demonstration phase of the CHAMPUS reform initiative required by section 702(a)(l) of the National Defense Authorization Act for Fiscal Year 1987 until the requirements of section 702(a)(4) of such Act (as added by subsection (a)) are met. (2) None of the funds appropriated or otherwise made available to the Department of Defense may be obligated or expended for the purpose of requesting a proposal for the second (or any subsequent) phase of the CHAMPUS reform initiative as described in section 702(c) of the National Defense Authorization Act for Fiscal Year 1987 until the requirements of paragraph (2) of section 702(c) of such Act (as added by subsection (c)) are met. . ^,.... > *,....».,.,rt#

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(g) CHAMPUS DEFINED.—In this section, the term "CHAMPUS" lo use 1073 has the meaning given such term by section 1072(4) of title 10, ^°United States Code. SEC. 733. MEDICAL INFORMATION SYSTEMS ACQUISITION AMENDMENTS (a) TEST AND EVALUATION PHASE LIMITATIONS.—Subsection (a) of

section 704 of the National Defense Authorization Act for Fiscal Year 1987 (Public Law 99-661; 100 Stat. 3900) is amended to read as follows: "(a) LIMITATION ON TEST AND EVALUATION PHASE OF COMPOSITE Contracts. HEALTH CARE SYSTEM.—With respect to the acquisition of a Depart- Reports. ment of Defense medical information system for use in all military medical treatment facilities, the Secretary may not award any contract for the operational test and evaluation phase for the Composite Health Care System referred to in subsection (b) until— "(1) the testing required by paragraphs (1) and (2) of that subsection is completed; "(2) the Armed Services Committees receive— "(A) the report submitted by the Secretary under subsection (b)(3); and "(B) the report submitted by the Comptroller General under subsection (b)(4).". (b) REPORTS ON TESTING.—Subsection (b)' of such section is amended by striking out paragraph (3) and inserting in lieu thereof the following new paragraphs: "(3) Not later than the end of the 30-day period beginning on the date that the testing required by paragraphs (1) and (2) is completed, the Secretary shall— "(A) evaluate the competing medical information systems, based on the results of the testing; and "(B) submit to the Armed Services Committees a report on such evaluation. "(4) Not later than the end of the 30-day period beginning on the date that the Armed Services Committees receive the report submitted by the Secretary under paragraph (3), the Comptroller General shall submit to the Armed Services Committees a report describing— "(A) the results of the testing required by paragraphs (1) and (2); and "(B) the competitive acquisition process that the Secretary is following in selecting vendors for the operational test and evaluation phase of the Composite Health Care System.". (c) VA COMPUTER PROGRAM AMENDMENTS.—(1) Subsection (c) of such section is amended by striking out "not later than October 1, 1987" and inserting in lieu thereof "on the same date as the date on ^'which the operational test and evaluation phase of the Composite Health Care System described in subsection (d) is completed". (2) Section 1203 of the Department of Defense Authorization Act, 1986 (Public Law 99-145; 99 Stat. 718), is amended— (A) in subsection (c), by striking out "that are available" and all that follows through "expected to be completed" and inserting in lieu thereof "that are available and delivered in a form suitable for testing on the date on which the Secretary approves and accepts the software for the operational test and evaluation phase of the Composite Health Care System"; and (B) in subsection (e), by striking out ", and by the Secretary of each military department,".

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PUBLIC LAW 100-180—DEC. 4, 1987 (d) CONDUCT OF TEST AND EVALUATION PHASE.—Section 704 of the

National Defense Authorization Act for Fiscal Year 1987 is further amended— (1) by redesignating subsection (e) as subsection (h); and (2) by striking out subsection (d) and inserting in lieu thereof the following new subsections: "(d) CONDUCT OF TEST AND EVALUATION PHASE OF COMPOSITE HEALTH CARE SYSTEM.—(1) The Secretary shall conduct the oper-

Contracts.

ational test and evaluation phase of the Composite Health Care System at no fewer than six sites. "(2) Of the amounts authorized to be appropriated to the Department of Defense for fiscal years 1988 and 1989 by the National Defense Authorization Act for Fiscal Years 1988 and 1989, the amounts authorized to be appropriated to carry out such operational test and evaluation phase are $92,000,000 for fiscal year 1988 and $88,500,000 for fiscal year 1989. "(e) REPORT BY SECRETARY.—After the operational test and evaluation phase referred to in subsection (d) is completed, the Secretary shall submit to the Armed Services Committees a report which— ^ "(1) analyzes the results of the operational test and evaluation phase; "(2) analyzes the results of the Veterans' Administration J demonstration project referred to in subsection (c); "(3) analyzes the costs and benefits of the Composite Health Care System for Levels I, II, and IID in combination and for Level III on a module by module basis, based on operational experience at the sites at which the operational test and evaluation phase is carried out; and "(4) contains a plan for full production of a medical information system for use in all military medical treatment facilities, based on an analysis of costs and benefits within any cost limitations that may be applicable to the program at the time the report is submitted. "(f) REPORT BY COMPTROLLER GENERAL.—The Comptroller General shall monitor the conduct of the operational test and evaluation phase referred to in subsection (d) and related Composite Health Care System acquisition activities. Not later than the end of the 30day period beginning on the date that the Armed Services Committees receive the report submitted by the Secretary under subsection (e), the Comptroller General shall submit to the Armed Services Committees a report evaluating— "(1) the results of the operational test and evaluation phase; and "(2) the competitive acquisition process the Secretary is folt lowing in awarding a contract for full production of a medical information system for use in all military medical treatment facilities. "(g) LIMITATION ON AWARDING CONTRACT FOR FULL PRODUCTION OF MEDICAL INFORMATION SYSTEM.—The Secretary may not award a

contract for full production of a medical information system for use in all military medical treatment facilities until— "(1) the Armed Services Committees receive the report submitted by the Secretary under subsection (e); and "(2) 30 days elapse after the Armed Services Committees 1 receive the report submitted by the Comptroller General under subsection(f).. ... .*=..,.^.

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(e) DEFINITIONS.—Subsection (h) of such section, as redesignated by subsection (d)(D, is amended by adding at the end the following: "(5) The term 'Armed Services Committees' means the Committees on Armed Services of the Senate and the House of Representatives.". SEC. 734. GAO REPORT ON PAYMENT OF CERTAIN MEDICAL EXPENSES

(a) REVIEW.—The Comptroller General shall review and evaluate the practices under various insurance plans with respect to payments to hospitals for charges for medic^ services in cases in which the hospital does not impose a legal obligation on patients to pay for such services. In the review, the Comptroller General shall— (1) review the practices with respect to such payments of private sector insurance plans, including self-insured plans, as well as federally sponsored or funded programs, including Medicare, Medicaid, and the Federal Employees' Health Benefit Plan; and (2) provide an assessment and comparison of the practices with respect to such payments under regulations of the Civilian I Health and Medical Program of the Uniformed Services (CHAMPUS), together with such recommendations for changing I such practices as the Comptroller General considers appropriate and an estimate of the costs involved in carrying out such recommendations. (b) REPORT.—Not later than 180 days after the date of the enactment of this Act, the Comptroller General shall submit to the Committees on Armed Services of the Senate and the House of Representatives a report containing the results of the review and evaluation required under subsection (a). TITLE VIII—ACQUISITION POLICY PART A—ACQUISITION PROCESS SEC. 801. FUNCTIONS OF EVALUATION

DIRECTOR OF

OPERATIONAL TEST AND

Section 138(d) of title 10, United States Code, is amended— (1) by inserting "(1)" after "(d)"; and (2) by adding at the end the following: "(2) The Director may not be assigned any responsibility for developmental test and evaluation, other than the provision of advice to officials responsible for such testing." SEC. 802. SURVIVABILITY AND LETHALITY TESTING OF MAJOR SYSTEMS (a)

INCLUSION OF SIGNIFICANT PRODUCT IMPROVEMENT PRO-

GRAMS.—(1) Subsection (a) of section 2366 of title 10, United States Code, is amended— (A) by inserting "(1)" after "REQUIREMENTS.—"; (B) by redesignating paragraphs (1), (2), and (3) as subparagraphs (A), (B), and (C), respectively; and (C) by adding at the end the following: "(2) The Secretary of Defense shall provide that a covered product improvement program may not proceed beyond low-rate initial production until— "(A) in the case of a product improvement to a covered system, realistic survivability testing is completed in accordance with this section; and

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"(B) in the case of a product improvement to a major munitions program or a missile program, realistic lethality testing is completed in accordance with this section. (2) Subsection (b)(l) of such section is amended— (1) by inserting "(including a covered product improvement, program)" after "system or program"; and (2) by inserting "(or in the product modification or upgrade to the system, munition, or missile)" after "or missile". (3) Subsection (c) of such section is amended by striking out "or missile program" and inserting in lieu thereof "missile program, or covered product improvement program". (4) Subsection (e) of such section is amended— (A) by inserting "(or a covered product improvement program for a covered system)" in paragraph (4) after "in the case of a covered system, (B) by inserting "(or a covered product improvement program for such a program)" in paragraph (5) after "missile program"; and (C) by adding at the end the following new paragraph: "(8) The term 'covered product improvement program' means a program under which— "(A) a modification or upgrade will be made to a covered system which (as determined by the Secretary of Defense) is likely to affect significantly the survivability of such system; or "(B) a modification or upgrade will be made to a major munitions program or a missile program which (as determined by the Secretary of Defense) is likely to affect significantly the lethality of the munition or missile produced under the program.". (b) U S E OF CONTRACTOR PERSONNEL IN OPERATIONAL TEST AND

EVALUATION.—Subsection (b)(2) of such section is amended by adding at the end the following new sentence: "The limitation in the preceding sentence does not apply to the extent that the Secretary of Defense plans for persons employed by that contractor to be involved in the operation, maintenance, and support of the system being tested when the system is deployed in combat.". Reports.

(c) EXPLANATION FOR W A IV E R S

BY SECRETARY OF DEFENSE.—

Subsection (c) of such section is amended by adding at the end the following new sentence: "The Secretary shall include with any such certification a report explaining how the Secretary plans to evaluate the survivability or the lethality of the system or program and assessing possible alternatives to realistic survivability testing of the system or program.". (d) REPORTING TO CONGRESS.—Such section is further amended— (1) by inserting "(1)" in subsection (c) before "The Secretary"; (2) by striking out "(d)" and all that follows through "In time of war and inserting in lieu thereof "(2) In time of war"; and (3) by inserting before subsection (e) the following new subsection (d): "(d) REPORTING TO CONGRESS.—At the conclusion of survivability or lethality testing under subsection (a), the Secretary of Defense shall submit a report on the testing tx) the defense committees of Congress (as defined in section 2362(e)(3) of this title).". (e) DEFINITION OF REALISTIC SURVIVABILITY TESTING.—Subsection

(e)(4) of such section is amended— (1) by striking out "and survivability"; and

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(2) by striking out "operational requirements" and inserting in lieu thereof "susceptibility to attack". SEC. 803. OVERSIGHT OF COST OR SCHEDULE VARIANCES IN CERTAIN MAJOR ACQUISITION PROGRAMS

(a) ENHANCED PROGRAM STABILITY.—Section 2435(b)(2) of title 10, United States Code, is amended by striking out "under paragraph (1)" and inserting in lieu thereof the following: "under paragraph (1), and for which the total cost of completion of the stage will exceed by 15 percent or more, in the case of a development stage, or by 5 percent or more, in the case of a production stage, the amount specified in the baseline description established under subsection (a) for such stage; or any milestone specified in such baseline description will be missed by more than 90 days". (b) MILESTONE AUTHORIZATION.—Section 2437 of such title is amended by redesignating paragraph (1) as paragraph (I)(A) and by adding at the end of such paragraph the following new subparagraph: "(B) Notwithstanding the Secretary's failure to designate a program to be considered for milestone authorization under subparagraph (A), the Committees on Armed Services of the Senate and the House of Representatives may consider such program to have been designated as a defense enterprise program under this section. If the Secretary of Defense is not otherwise required to submit a baseline description for the program, the Secretary shall submit such a baseline description upon the written request of either such Committee." (c) DEFENSE ENTERPRISE PROGRAM.—Section 2436(d)(1) of such title is amended by inserting after "concerned" the following: "with the approval of the Under Secretary of Defense for Acquisition". SEC. 804. T R U T H - I N - N E G O T I A T I O N S ACT AMENDMENTS

(a) DEFINITION OF COST OR PRICING DATA.—Subsection (g) of section 2306a of title 10, United States Code, is amended to read as follows: "(g) COST OR PRICING DATA DEFINED.—In this section, the term 'cost or pricing data' means all facts that, as of the date of agreement on the price of a contract (or the price of a contract modification), a prudent buyer or seller would reasonably expect to affect price negotiations significantly. Such term does not include information that is judgmental, but does include the factual information from which a judgment was derived.". (b) TECHNICAL AMENDMENTS.—(1) Subsection (a)(5) of such section is amended— „ (A) by striking out the first sentence; and (B) by striking out "such a waiver" and inserting in lieu thereof "a waiver under subsection (b)(2)". (2) Subsection (e)(2) of such section is amended to read as follows: "(2) Any liability under this subsection of a contractor that submits cost or pricing data but refuses to submit the certification required by subsection (a)(2) with respect to the cost or pricing data shall not be affected by the refusal to submit such certification.". (c) EFFECTIVE DATES.—(1) Subsection (a) shall apply to any contract, or modification of a contract, entered into after the end of the 30-day period beginning on the date of the enactment of this Act.

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(2) The amendments made by subsection (b) shall apply with respect to contracts, or modifications of contracts, entered into after the end of the 120-day period beginning on October 18, 1986. Contracts.

10 USC 2324 ^ot«-

10 USC 2301 note.

SEC. 805. ALLOWABLE COSTS NOT TO INCLUDE GOLDEN PARACHUTE PAYMENTS

(a) IN GENERAL.—Section 2324(e)(1) of title 10, United States Code, is amended by adding at the end the following new subparagraph: "(K) Costs incurred in making any payment (commonly known as a 'golden parachute payment') which is— "(i) in an amount in excess of the normal severance pay paid by the contractor to an employee upon termination of emplo3mtient; and (ii) is paid to the employee contingent upon, and following, a change in management control over, or ownership of, the contractor or a substantial portion of the contractor's assets.". (b) EFFECTIVE DATE.—Subparagraph (K) of section 2324(e)(l) of title 10, United States Code, as added by subsection (a), shall apply to any contract entered into after the end of the 120-day period beginning on the date of the enactment of this Act. SEC. 806. REQUIREMENT FOR SUBSTANTIAL PROGRESS ON MINORITY AND SMALL BUSINESS CONTRACT AWARDS (a) REQUIREMENT FOR SUBSTANTIAL PROGRESS.—The Secretary of

Defense shall ensure that substantial progress is made in increasing awards of Department of Defense contracts to section 1207(a) entities. (b) REGULATIONS.—The Secretary shall carry out the requirement of subsection (a) through the issuance of regulations which provide for the following: (1) Guidance to contracting officers for making advance pay' ''"^ ments to section 1207(a) entities under section 2307 of title 10, United States Code. (2) Procedures or guidelines for contracting officers to— (A) set goals which Department of Defense prime contractors that are required to submit subcontracting plans under section 8(d)(4)(B) of the Small Business Act (15 U.S.C. 637(d)(4)(B)) in furtherance of the Department's program to meet the 5 percent goal established under section 1207 of the National Defense Authorization Act for Fiscal Year 1987 should meet in awarding subcontracts, including subcontracts to minority-owned media, to section 1207(a) entities; and (B) provide incentives for such prime contractors to increase subcontractor awards to section 1207(a) entities. (3) A requirement that contracting officers emphasize the award of contracts to section 1207(a) entities in all industry categories, including those categories in which section 1207(a) entities have not traditionally dominated. (4) Guidance to Department of Defense personnel on the relationship among the following programs: (A) "The program implementing section 1207 of the National Defense Authorization Act for Fiscal Year 1987 • •••' '•' ' (Public Law 99-661; 100 Stat. 3973). ' (B) The program established under section 8(a) of the Small Business Act (15 U.S.C. 637(a)). ..;.. - -i> vfc--;

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(C) The small business set-aside program established under section 15(a) of the Small Business Act (15 U.S.C. ^^f-- 644(a)). (5) A requirement that a business which represents itself as a section 1207(a) entity and is seeking a Department of Defense contract maintain its status as such an entity at the time of contract award. (6) With respect to a Department of Defense procurement which is reasonably likely to be set aside for section 1207(a) entities, a requirement that (to the maximum extent practicable) the procurement be designated as such a set-aside before the solicitation for the procurement is issued. (7) Policies and procedures which, to the maximum extent practicable, will ensure that current levels in the number or dollar value of contracts awarded under the program established under section 8(a) of the Small Business Act and under the small business set-aside program established under section 15(a) of the Small Business Act are maintained and that every effort is made to provide new opportunities for contract awards to eligible entities, in order to meet the goal of section 1207 of the National Defense Authorization Act for Fiscal Year 1987. (8) Implementation of section 1207 of the National Defense Authorization Act for Fiscal Year 1987 in a manner which will not alter the procurement process under the program established under section 8(a) of the Small Business Act. (9) A requirement that one factor used in evaluating the performance of contracting officers be the ability of the officer to increase contract awards to section 1207(a) entities. (10) Partial set-asides for section 1207(a) entities. i (11) Increased technical assistance to section 1207(a) entities. (12) A prohibition of the award of a contract under section 1207 of the National Defense Authorization Act for Fiscal Year 1987 to a section 1207(a) entity unless the entity agrees to comply with the requirements of section 15(o)(l) of the Small Business Act. (c) DEFINITION OF SECTION 1207(a) ENTITIES.—For purposes of this section, the term "section 1207(a) entities" means the small business concerns, historically Black colleges and universities, and minority institutions described in section 1207(a) of the National Defense Authorization Act for Fiscal Year 1987 (Public Law 99-661; 100 Stat. 3973), as amended by subsection (d). (d) CLARIFICATION OF COVERAGE OF SECTION 1207(a) ENTITIES.— Section 1207(a) of the National Defense Authorization Act for Fiscal Year 1987 (Public Law 99-661; 100 Stat. 3973) is amended— lo use 2301 (1) by striking out "or" at the end of paragraph (2) and note, inserting in lieu thereof "and"; (2) by striking out "(as defined by the Secretary of Education pursuant to the General Education Provisions Act (20 U.S.C. 1221 et seq.))" in paragraph (3) and inserting in lieu thereof "(as defined in paragraphs (3), (4), and (5) of section 3120t)) of the Higher Education Act of 1965 (20 U.S.C. 1058))"; and (3) by striking out the period at the end of paragraph (3) and inserting in lieu thereof ", including any nonprofit research institution that was an integral part of a historically Black college or university before November 14, 1986.".

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PUBLIC LAW 100-180—DEC. 4, 1987

SEC. 807. AMENDMENTS TO PROCUREMENT TECHNICAL ASSISTANCE COOPERATIVE AGREEMENT PROGRAM

(a) FUNDING.—(1) Of the amounts appropriated for operation and maintenance for the Defense Agencies, $7,000,000 is available for each of fiscal years 1988 and 1989 only for the purpose of carrying out cooperative agreements entered into by the Secretary of Defense under chapter 142 of title 10, United States Code, to furnish procurement technical assistance to business entities. (2) Of the amount provided under paragraph (1) for fiscal year 1988, $500,000 shall be available only for the purpose of carrying out programs sponsored by eligible entities defined in subparagraph (D) of section 2411(1) of title 10, United States Code (EIS amended by subsection O?)), that provide procurement technical assistance in distressed areas as defined in subparagraph (B) of section 2411(2) of such title (as amended by subsection (b)). If there is an insufficient number of satisfactory proposals for cooperative agreements in such distressed areas to allow effective use of the funds authorized under this paragraph in such areas, the funds shall be allocated among the Defense Contract Administration Services regions in accordance with section 2415(c) of such title. O> AMENDMENTS TO DEFINITIONS OF ELIGIBLE ENTITY AND DISt) TRESSED AREA.—(1) Paragraph (1) of section 2411 of title 10, United

States Code, is amended by adding at the end the following new subparagraph: "(D) A tribal organization, as defined in section 4(c) of the j^^ Indian Self-Determination and Education Assistance Act t9!>i[f (Public Law 93-638; 25 U.S.C. 450(c)), or an economic enterprise, as defined in section 3(e) of the Indian Financing Act of 1974 (Public Law 93-262; 25 U.S.C. 1452(e)).". (2) Paragraph (2) of such section is amended— (A) by striking out "means" and inserting in lieu thereof "means—"; (B) by designating the text beginning with "the area of a unit" as subparagraph (A) and indenting such text two additional ems; (C) by redesignating subparagraphs (A) and (B) in such text as clauses (i) and (ii) and indenting such clauses (as redesignated) two additional ems; (D) by striking out the period at the end of such subparagraph (A) (as redesignated) and inserting in lieu thereof; or'^ and (E) by adding at the end the following new subparagraph: (B) a reservation, as defined in section 3(d) of the Indian Financing Act of 1974 (Public Law 93-262; 25 U.S.C. 1452(d))."..
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(c) TECHNICAL REVISION OF FUND DISTRIBUTION METHOD.—Section

2415 of title 10, United States Code, is amended— (1) by striking out subsections (a) and (b); and (2) by striking out "(c) For any amount" and all that follows through "$3,000,000, the" and inserting in lieu thereof "The". SEC. 808. RIGHTS IN TECHNICAL DATA

(a) IN GENERAL.—(1) Section 2320(a) of title 10, United States Code, is amended by adding at the end of paragraph (1) the following: "Such regulations also may not impair the right of a contractor or subcontractor to receive from a third party a fee or royalty for the use of technical data pertaining to an item or process developed

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exclusively at private expense by the contractor or subcontractor, except as otherwise specifically provided by law.". (2) Paragraph (2)(E) of such section is amended— (A) by striking out "agreed upon" and inserting in lieu thereof "established"; (B) by striking out the comma after "negotiations)" and ^ inserting in lieu thereof the following: "and shall be based upon negotiations between the United States and the contractor, except in any case in which the Secretary of Defense determines, on the basis of criteria established in the regulations, that negotiations would not be practicable. The establishment of '' such rights shall be"; and (C) by adding at the end the following new clause: •;'». ^(iv) Such other factors as the Secretary of Defense may prescribe.". (3) Paragraph (2)(F) of such section is amended to read as follows: "(F) A contractor or subcontractor (or a prospective contractor or subcontractor) may not be required, as a condition of being responsive to a solicitation or as a condition for the award of a contract— "(i) to sell or otherwise relinquish to the United States any rights in technical data except— ^ ' "(I) rights in technical data described in subparagraph (C); or "(II) under the conditions described in subparagraph ''•

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(D);or

"(ii) to refrain from offering to use, or from using, an item or process to which the contractor is entitled to restrict rights in data under subparagraph (B).". (4) Paragraph (2)(G) of such section is amended— (A) in clause (i)— (i) by striking out "pertaining" and all that follows through "private expense" and inserting in lieu thereof ^-' "not otherwise provided under subparagraph (C) or (D),"; and (ii) by striking out "or" at the end of such clause; (B) in clause (ii)— (i) by striking out "such regulations" and inserting in lieu thereof "this section"; and (ii) by striking out the period at the end and inserting in lieu thereof "; or"; and (C) by adding at the end of such paragraph the following new clause: "(iii) permit a contractor or subcontractor to license directly to a third party the use of technical data which the contractor is otherwise allowed to restrict, if necessary to develop alternative sources of supply and manufacture.". (5) Paragraph (3) of such section is amended— (A) by striking out "and 'private expense'" and inserting in lieu thereof ", 'exclusively with Federal funds', and 'exclusively at private expense' "; and (B) by adding at the end the following: "In defining such terms, the Secretary shall specify the manner in which indirect costs shall be treated and shall specify that amounts spent for independent research and development and bid and proposal costs shall not be considered to be Federal funds for the purposes of definitions under this paragraph.".

K.,V. v

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'-

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(b) CONDUCT OP NEGOTIATIONS.—Section 2320(c) of such title is amended— (1) by striking out "from" and inserting in lieu thereof y^' "from—"; (2) by designating the text beginning with "prescribing standards" as paragraph (1) and indenting such text two ems; (3) by striking out the period at the end of such paragraph and inserting in lieu thereof; or"; and (4) by adding at the end the following new paragraph: "(2) prescribing reasonable and flexible guidelines, including - V negotiation objectives, for the conduct of negotiations regarding the respective rights in technical data of the United States and the contractor.". (c) EFFECTIVE DATE.—The amendments made by this section shall take effect on the earlier of— (1) the last day of the 120-day period beginning on the date of the enactment of this Act; or (2) the date on which regulations are prescribed and made effective to implement such amendments. SEC. 809. SMALL BUSINESS SET-ASIDE PROGRAM AMENDMENTS (a) SMALL BUSINESS SMALL PURCHASE RESERVE EXCLUDED FROM ANNUAL GOALS.—(1) Section 15(g) of the Small Business Act (15

U.S.C. 644(g)) is amended by inserting "having a value of $25,000 or more" after "procurement contracts of such agency" in the first sentence. Such amendment shall be in effect until September 30, 1988. (2) Such section is amended, effective October 1, 1988, by striking out "having a value of $25,000 or more" after "procurement contracts of such agency". (b) SUBCONTRACTING LIMITATIONS.—(1) Section 15(o) of the Small Business Act (15 U.S.C. 644(o)) is amended by striking out "this subsection" and inserting in lieu thereof "subsection (a)". (c) REPEAL.—Section 15(p) of the Small Business Act (15 U.S.C. 644(p)) is repealed. (d) INITIAL REVIEW OF SIZE STANDARDS.—Paragraph (3) of section 15 USC 632 note. Regulations. Federal Register, publication.

921(h) of the Defense Acquisition Improvement Act of 1986 (as contained in title IX of Public Law 99-661) is amended by striking out the second and third sentences and inserting in lieu thereof the following: "The Administrator shall publish proposed regulations, including any revised size standards, in the Federal Register by November 30, 1987, or the date of enactment of the National Defense Authorization Act for Fiscal Years 1988 and 1989, whichever is later. The proposed regulations shall provide not less than 60 days for public comment. The Administrator shall issue final regulations not later than May 31, 1988.". SEC. 810. CONTRACT TERMS AND CONDITIONS RELATING TO CONTRACTOR COSTS FOR PRODUCTION SPECIAL TOOLING AND PRODUCTION SPECIAL TEST EQUIPMENT

(a) IN GENERAL.—(1) Chapter 137 of title 10, United States Code, is
 * amended by adding at the end the following new section:

10 USC 2329.

"§2329. Production special tooling and production special test equipment: contract terms and conditions "(a) REGULATIONS.—The Secretary of Defense (acting through the Under Secretary of Defense for Acquisition) shall prescribe regula-

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tions providing for payment to contractors for production special tooling and production special test equipment acquired or fabricated in the performance of contracts described in subsection (b). Such regulations shall establish a uniform policy for the Department of Defense. "(b) CONTRACTS TO WHICH REGULATIONS APPLY.—(1) Except as provided in paragraph (2), regulations under this section shall apply in the case of any contract for production of an item that is awarded by the Secretary of a military department and under which the contractor, in order to perform the contract, is required to acquire or fabricate items of production special tooling or items of production special test equipment. "(2) Such regulation shall not apply to a contract in which the cost to the contractor of the special production tooling and special production test equipment used in the performance of the contract is less than $1,000,000. "(c) REQUIREMENTS.—Regulations under subsection (a) shall in- Regulations, elude the following: "(1) A requirement that the terms and conditions for the acquisition or fabrication of production special test equipment and production special tooling by a contractor under a contract described in subsection (b) (including specification of the maximum amount for which the contractor may be paid for such tooling and equipment)— "(A) shall be specified in the contract, and "(B) shall be determined by the Secretary concerned and the contractor through negotiations. "(2) A requirement that if the Secretary concerned, at the •'. j \ time a contract described in subsection O> is entered into, t) reasonably anticipates that the United States will later contract with the same contractor for the same or similar items for which the contractor would be able to use the special production tooling or special production test equipment that the contractor was required to acquire or fabricate for performance of the contract, and if that tooling and equipment will not be used by the contractor solely for final production acceptance testing under the contract, the contractor— "(A) shall be paid for such tooling and equipment in accordance with the terms and conditions of the contract, but in a total amount not less than a percentage (determined under paragraph (3)) of the maximum amount for such payment agreed to under paragraph (1); and > "(B) shall be paid for the balance of such amount subject to the availability of appropriations and in accordance with an amortization schedule determined by the Secretary concerned and the contractor through negotiations. < "(3) The percentage to be used under paragraph (2)(A) shall be specified in the contract based upon negotiations between the Secretary concerned and the contractor and may not be less than 50 percent, except that a lower percentage may be speci' fied in the case of any contract if the Secretary concerned, before the contract is entered into, approves the use of that lower percentage with respect to that contract. Any such approval by the Secretary concerned shall be made under criteria established by the Secretary of Defense, acting through the Under Secretary of Defense for Acquisition.

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"(4) A requirement that a contract described in subsection (b) include provisions, determined on the basis of negotiations between the Secretary concerned and the contractor, which ensure that if the contract, or the program with respect to which such contract is awarded, is terminated before the maxi?' mum amount specified under paragraph (1) has been paid to the contractor, and the termination is not for a reason that reflects a failure of the contractor to perform the contract, the Secretary concerned, subject to the availability of appropriations, shall pay the contractor the balance of such maximum amount n.:J in accordance with the terms and conditions of the contract. "(5) A requirement that, except as provided in paragraph (2), a contractor under a contract described in subsection (b) shall be paid for the special production tooling or special production test equipment that the contractor was required to acquire or fabricate for performance under the contract in the maximum -qr amount provided in the contract and in accordance with the terms and conditions of the contract. "(d) Costs incurred by a contractor under a contract described in subsection (b) for the acquisition and fabrication of production special tooling and production special test equipment for which reimbursement is made under this section shall be considered to be direct costs incurred by the contractor.". (2) The table of sections at the beginning of such chapter is amended by adding at the end the following new item: 10 USC 2329 note.

"2329. Production special tooling and production special test equipment: contract terms and conditions.". (b) EFFECTIVE DATE.—Section 2329 of title 10, United States Code,

as added by subsection (a), shall apply with respect to contracts entered into pursuant to solicitations issued after the end of the 120day period beginning on the date of the enactment of this Act. PART B—OTHER ACQUISITION MATTERS SEC. 821. CONFLICT OF INTEREST IN DEFENSE PROCUREMENT

Section 2397b(a)(l)(C) of title 10, United States Code, is amended by striking out "acted as a primary representative" and inserting in lieu thereof "acted as one of the primary representatives". SEC. 822. RESTATEMENT AND MODIFICATION OF RESTRICTIONS ON RE,,, 5, ^, TIRED MILITARY OFFICERS REGARDING CERTAIN MATTERS AFFECTING THE GOVERNMENT

(a) REPEAL OF PRIOR LAW.—Sections 281 and 283 of title 18, United States Code, to the extent that such sections were not repealed by section 2 of Public Law 87-849 (76 Stat. 1126; approved October 23, 1962), are repealed. (b) RESTATEMENT AND MODIFICATION OF LAW.—(1) Chapter 15 of

title 18, United States Code, is amended by inserting after the table of sections the following new section: Law enforcement and crime. 18 USC 281.

"§ 281. Restrictions on retired military officers regarding certain matters affecting the Government "(a)(1) A retired officer of the Armed Forces who, while not on active duty and within two years after release from active duty, directly or indirectly receives (or agrees to receive) any compensation for representation of any person in the sale of anything to the

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United States through the mUitary department in which the officer is retired (in the case of an officer of the Army, Navy, Air Force, or Marine Corps) or through the Department of Transportation (in the case of an officer of the Coast Guard) shall be fined under this title or imprisoned not more than two years, or both. "(2) Any person convicted under paragraph (1) shall be incapable of holding any office of honor, trust, or profit under the United States. "(b) A retired officer of the Armed Forces who, while not on active duty and within two years after release from active duty, acts as agent or attorney for prosecuting or assisting in the prosecution of any claim against the United States— "(1) involving the military department in which the officer is retired (in the case of an officer of the Army, Navy, Air Force, or Marine Corps) or the Department of Transportation (in the case of an officer of the Coast Guard); or "(2) involving any subject matter with which the officer was directly connected while in an active-duty status; shall be fined under this title or imprisoned not more than one year, or both. "(c) This section does not apply— "(1) to any person because of the person's membership in the National Guard of the District of Columbia; or "(2) to any person specifically excepted by law.". (2) The table of sections at the beginning of such chapter is amended by striking out the items relating to sections 281 through 284 and inserting in lieu thereof the following new item:

District of Columbia.

"281. Restrictions on retired military officers regarding certain matters affecting the Government.". SEC. 823. RESTRICTION ON PURCHASE OF FOREIGN-MADE ADMINISTRATIVE MOTOR VEHICLES (a) VEHICLES FOR U S E INSIDE THE UNITED STATES.—Neither the

Secretary of Defense nor the Secretary of a military department may enter into a contract during the period beginning on the date of the enactment of this Act and ending on September 30, 1989, for the procurement of administrative motor vehicles that are manufactured in a country other than the United States or Canada and are for use inside the United States unless the type of motor vehicle proposed to be procured is not available in sufficient and reasonably available quantities and satisfactory quality from a manufacturer in the United States or Canada. (b) VEHICLES FOR U S E OVERSEAS.—(1) Neither the Secretary of Defense nor the Secretary of a military department may enter into a contract during the period beginning on the date of the enactment of this Act and ending on September 30, 1989, for the procurement of administrative motor vehicles that are manufactured in a country other than the United States or Canada and are for use outside the United States (other than motor vehicles intended for use in security, intelligence, and criminal investigative operations) unless firms which manufacture similar vehicles in the United States or Canada are afforded a fair opportunity to compete for the contract. (2) In awarding any contract subject to paragraph (1), the Secretary of Defense or the Secretary of the military department concerned may take into consideration the cost and availability of maintenance and other logistic services and supplies required for the operation of such vehicles.

Contracts.

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(c) EXCEPTIONS.—This section shall not apply to the procurement of administrative motor vehicles in the case of a contract— (1) for an amount less than $50,000; or (2) that is specifically authorized by law. (d) APPLICABILITY.—(1) Except as provided in paragraph (2)(B), suljsection O> shall not apply in the case of a contract authorized or t) required to be entered into as provided under the terms of a countryto-country agreement for the support of United States Armed Forces in Europe if the agreement is in existence on the date of the enactment of this Act. (2)(A) After the date of the enactment of this Act, the Secretary of Defense may not enter into a country-to-country agreement for the support of United States Armed Forces in Europe that is inconsistent with the limitations on the procurement of administrative motor vehicles under this section applicable during the period beginning on the date of the enactment of this Act and ending on September 30, 1989. (B) If an agreement described in paragraph (1) is renewed or extended after the date of the enactment of this Act, the Secretary shall ensure that such agreement, as renewed or extended, is not inconsistent with the limitations on the procurement of administrative motor vehicles under this section applicable during the period beginning on the date of the enactment of this Act and ending on September 30, 1989. SEC. 824. PROCUREMENT OF MANUAL TYPEWRITERS FROM WARSAW PACT COUNTRIES (a) MOST-FAVORED-NATION COUNTRIES.—Section 2400 of title 10, United States Code, as amended by section 124, is amended by adding at the end the following: "(c) MANUAL TYPEWRITERS FROM WARSAW PACT COUNTRIES.—

Funds appropriated to or for the use of the Department of Defense may not be used for the procurement of manual typewriters which contain one or more components manufactured in a country which is a member of the Warsaw Pact unless the products of that country are accorded nondiscriminatory treatment (most-favored-nation treatment).". (b) CONFORMING REPEAL.—Section 1262 of the Department of Defense Authorization Act, 1984 (Public Law 98-94; 97 Stat. 703), is repealed. SEC. 825. SENSE OF CONGRESS ON PREPARATION OF CERTAIN ECONOMIC IMPACT AND EMPLOYMENT INFORMATION CONCERNING NEW ACQUISITION PROGRAMS 10 USC 2432 note.

Union of Soviet Socialist Republics.

It is the sense of Congress that the Secretary of Defense should not, before an acquisition program is approved to proceed into fullscale development, prepare any material, report, list, or analysis with respect to economic benefits or the employment impact of that program in a particular State or congressional district. TITLE IX—MATTERS RELATING TO ARMS CONTROL SEC. 901. MISSILE TECHNOLOGY CONTROL REGIME

(a) FINDINGS.—The Congress finds that— (1) the proliferation of nuclear weapons and of missiles capable of the delivery of nuclear weapons is a threat to international peace and security;

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(2) in the early 1980's, the danger of the proliferation of such weapons and missiles was formally recognized in discussions among the governments of the United States, Canada, France, the Federal Republic of Germany, Italy, Japan, and the United Kingdom; and (3) these seven governments, after four years of negotiations. on April 7, 1987, concluded an agreement known as the Missile Technology Control Regime, for the purpose of limiting the proliferation of missiles capable of the delivery of nuclear weapons (and hardware and technology related to such missiles) throughout the world.

International agreements.

(b) EXPRESSIONS OF CONGRESS.—The C o n g r e s s -

CD expresses its firm support for the Missile Technology Control Regime as a means of enhancing international peace and security; (2) expresses its strong hope that all nations of the world will adhere to the Guidelines of the Missile Technology Control Regime; and (3) expresses its expectation that all relevant agencies of the United States Government will ensure the fully effective implementation of this regime. (c) REPORT ON MANPOWER REQUIRED TO IMPLEMENT THE MISSILE TECHNOLOGY CONTROL REGIME.—(1) Not later than February 1, 1988,

the Secretary of Defense shall submit to the Committees on Armed Services of the Senate and House of Representatives a report— (A) identifying the functional responsibilities of the Department of Defense for implementing the Missile Technology Control Regime; (B) describing the number and skills of personnel currently available in the Department of Defense to perform these functions; and (C^assessing the adequacy of these resources for the effective performance of these responsibilities. (2) The report required by p a r ^ a p h (1) shall identify the total number of current Department of Defense full-time employees or military personnel and the grades of such personnel and the special knowledge, experience, and expertise of such personnel, required to carry out each of the following responsibilities of the Department under the regime: (A) Review of private-sector export license applications and government-to-government cooperative activities. (B) Intelligence analysis and activities. (C) Policy coordination. i (D) International liaison activity. (E) Enforcement and technology security operations. (F) Technical review. (3) The report shall include the Secretary's assessment of the adequacy of staffing in each of the categories specified in subparagraphs (A) through (F) of paragraph (2) and shall make recommendations concerning measures, including legislation if necessary, to eliminate any identified staffing deficiencies and to improve interagency coordination with respect to the regime.

'^

SEC. 902. SENSE OF CONGRESS ON THE KRASNOYARSK RADAR

(a) FINDINGS.—The Congress finds the following: (1) The 1972 Anti-Ballistic Missile Treaty prohibits each party to the Treaty from deploying ballistic missile early warning

International agreements.

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PUBLIC LAW 100-180—DEC. 4, 1987

radars except at locations along the periphery of its national territory and oriented outward. V (2) The 1972 Anti-Ballistic Missile Treaty prohibits each party ^- to the Treaty from deploying an anti-ballistic missile system to defend its national territory and from providing a base for any ^ such nationwide defense. (3) Large phased-array radars were recognized during negotiation of the 1972 Anti-Ballistic Missile Treaty as the critical long lead-time element of a nationwide defense against ballistic missiles. (4) In 1983 the United States discovered the construction, in the interior of the Soviet Union near the town of Krasnoyarsk, <J of a large phased-array radar that has subsequently been judged J • f to be for ballistic missile early warning and tracking. ?» (5) The Krasnoyarsk radar is more than 700 kilometers from the Soviet-Mongolian border and is not directed outward but instead, faces the northeast Soviet border more than 4,500 kilometers away. VI- (6) The Krasnoyarsk radar is identical to other Soviet ballistic r missile early warning radars and is ideally situated to fill the gap that would otherwise exist in a nationwide Soviet ballistic missile early warning radar network. (7) The President has certified that the Krasnoyarsk radar is an unequivocal violation of the 1972 Anti-Ballistic Missile Treaty. (b) SENSE OF CONGRESS.—It is the sense of the Congress that the Soviet Union is in violation of its legal obligation under the 1972 Anti-Ballistic Missile Treaty. SEC. 903. REPORT ON COMPLIANCE BY THE SOVIET UNION WITH THRESHOLD TEST BAN TREATY (a) IN GENERAL.—The President shall submit to Congress, not later than 30 days after the date of the enactment of this Act, a report discussing the use of the current official United States method of estimating the yield of Soviet underground nuclear tests to determine the extent to which the Soviet Union is complying with the 150 kiloton limit on underground nuclear tests contained in the Threshold Test Ban Treaty. Q}) FORM AND CONTENT OF REPORT.—The report shall be submitted in both classified form and (if possible) unclassified form and shall include the following matters: (1) A discussion of whether past assessments made by the United States of the extent of Soviet compliance with the 150 kiloton limit contained in the Threshold Test Ban Treaty would have been different if the United States, in making those assessments, had used the current official United States method (if of estimating the yield of underground nuclear tests conducted by the Soviet Union. (2) The number of nuclear tests conducted by the Soviet Union after March 31, 1976, that have a central value exceeding < 150 kilotons yield (estimated on the basis of the current official method used by the United States in estimating underground nuclear test jrields), the central value of those tests (estimated on such basis), and the dates on which those tests were conducted. (3) The number, dates, and estimated central values of tests, if any, conducted by the United States after March 31, 1976,

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h which, if measured on the basis of the current official method used by the United States in estimating Soviet underground nuclear test yields (taking into account the differences between the United States and Soviet test sites), would have an indicated central value exceeding 150 kilotons yield. (4) The number of tests conducted by the United States after March 31, 1976, if any, which actually had yields exceeding 150 kilotons, the estimated central value of each such test, and the - date on which each such test was conducted. (5) A description of all nuclear testing activities of the Soviet Union which the President has found to be likely violations of £ the legal obligations under the Threshold Test Ban Treaty, the dates on which those activities took place, and the specific legal obligations under the Threshold Test Ban Treaty likely to have been violated by the Soviet Union in conducting such activities. (6) A discussion of whether and, if so, the extent to which, the President, in arriving at his finding that several nuclear tests V conducted by the Soviet Union constituted a likely violation of legal obligations under the Threshold Test Ban Treaty, considered the mutual agreement contained in the Threshold Test Ban Treaty which permits one or two minor, unintended breaches of the 150 kiloton limit per year to be considered nonviolations of the Treaty. (7) A detailed comparison of the current official method used by the United States Government in estimating Soviet undert ground nuclear test yields with the method replaced by the current method, and the date on which the current official method was adopted by the United States. SEC. 904. CONGRESSIONAL FINDINGS AND DECLARATIONS CONCERNING ARMS CONTROL NEGOTIATIONS

(a) CONGRESSIONAL FINDINGS.—The Congress makes the following findings: (1) The United States and the Soviet Union are currently engaged in negotiations to conclude a treaty on intermediaterange nuclear forces (INF) and are continuing serious negotiations on other issues of vital importance to the national security of the United States. (2) The current negotiations, which reflect delicate compromises on both sides, are a culmination of years of detailed and complex negotiations in which the negotiators for the United States have been pursuing a policy consistently advor cated by the past two Presidents regarding nuclear arms control in the European theater. (3) While recognizing fully that the President, under clause 2, President of U.S. f section 2, article II of the Constitution, has the power, by and with the advice and consent of the Senate, to make treaties, the Congress also recognizes the special responsibility conferred by advice and consent before a treaty may be ratified by the United States and that in carrying out this responsibility the Senate is accountable to the people of the United States and has a duty to ensure that no treaty is ratified which would be detrimental to the welfare and security of the United States. (4) In recognition of this responsibility, the Senate has estab- Arms Control lished a special continuing oversight body, the Arms Control Observer Group, Observer Group, which over the last two and one-half years has establishment.
 * the Founding Fathers on the Senate in requiring that it give its

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functioned to provide advice and counsel to the President and his negotiators, when appropriate, on a continuing basis during the course of the negotiations to achieve an INF treaty. President of U.S. (5) The Senate and the President both have a role under the Constitution in the making of treaties and Congress as a whole the subject of treaty negotiations. (b) CONGRESSIONAL DECLARATIONS.—In light of the findings in sLibsection (a). Congress— (1) fully supports the efforts of the President to negotiate stabilizing, equitable, and verifiable arms reduction treaties with the Soviet Union; (2) endorses the principle of mutuality and reciprocity in arms control negotiations with the Soviet Union and cautions that neither the Congress nor the President should take actions which are unilateral concessions to the Soviet Union; and (3) urges the President to take care that no provision is agreed to in those negotiations that would be harmful to the security of the United States or its allies and friends. (c) DECLARATION OF THE SENATE.—The Senate declares that it will reserve judgment regarding the approval of any arms control treaty until it has conducted a thorough examination of the provisions of the treaty and has assured itself that those provisions— (1) are effectively verifiable; and (2) serve to enhance the strength and security of the United States and its allies and friends. SEC. 905. REPORT ON MILITARY CONSEQUENCES OF THE ELIMINATION OF BALLISTIC MISSILES
 * ' has a role under the Constitution in the regulating of expenditures, including expenditures for weapons systems that may be

(a) REPORT REQUIREMENT.—Not later than 30 days after the date of the enactment of this Act, the Chairman of the Joint Chiefs of Staff shall submit to the Committees on Armed Services of the Senate and House of Representatives a report examining the military consequences of any arms control agreement between the United States and the Soviet Union that would provide for the elimination of all strategic ballistic missiles of the United States and the Soviet Union. (b) MATTERS TO B E DISCUSSED.—Such report shall be submitted in both classified and unclassified form and shall include a discussion of the strategic, budgetary, and force structure implications of an agreement described in subsection (a) for— (1) conventional defenses of the United States and its allies in Europe, the Far East, and other regions vital to the national •8.1}'b: > Kisn" security of the United States; (2) tactical nuclear deterrence by the United States in those regions; (3) strategic offensive retaliatory systems of the United States that would not be affected by such an agreement, including bomber forces and cruise missiles; (4) air defenses of the United States needed to counter bomber forces and cruise missiles of the Soviet Union; (5) Strategic Defense Initiative programs designed to provide possible defenses against strategic ballistic missiles; and '. ^ (6) any new programs which the Chairman of the Joint Chiefs ' of Staff may consider necessary in order for the United States to ,^., protect its national security interests in light of the relative

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advantage conferred by such an agreement on other nations possessing nuclear weapons whose strategic ballistic missile forces would not be siffected by the agreement. SEC. 906. REPORT ON IMPLICATIONS OF CERTAIN ARMS CONTROL POSITIONS

Not later than June 30, 1988, the Secretary of Defense shall submit to Congress a report, in both classified and unclassified versions, containing the following: (1) A description of the quantitative and qualitative implications for the strategic modernization program of the United States of the publicly-announced position of the United States at the Strategic Arms Reduction Talks in Geneva, giving special, but not exclusive, attention to the implications of such position for the Trident SSBN program, the rail-garrison Peacekeeper program, and the small intercontinental ballistic missile ("Midgetman") program. (2) A description of the advantages and drawbacks of following the recommendations made in 1983 in the report of the President's Commission on Strategic Forces with regard to research on smaller ballistic-missile carrying submarines, each carrying fewer missiles than the Trident, as a potential follow-on to the Trident submarine force. (3) The recommendations of the Secretary of Defense with regard to paragraphs (1) and (2) on United States force modernization policy and arms control policy. SEC. 907. SUPPORT FOR NUCLEAR RISK REDUCTION CENTERS

(a) Congress applauds the recent signing of an agreement between international the United States and the Soviet Union on the establishment of agreements. nuclear risk reduction centers. Congress regards this agreement as an important and practical first step in reducing the threat of nuclear war due to accident, misinterpretation, or miscalculation. Congress notes that the agreement calls for centers to be established in each nation's respective capital for the routine exchange of information and advanced notification of nuclear and missile testing. (h) It is the hope of Congress that this first step in nuclear risk reduction will increase the confidence and mutual trust of both parties to the agreement and lead to an expansion in functions to reduce further the chances of accidental war. Such functions may include joint discussions on crisis prevention and the development of strategies to deal with incidents or threats of nuclear terrorism, nuclear proliferation, or other mutually agreed upon issues of concern in reducing nuclear risk. TITLE X—MATTERS RELATING TO NATO COUNTRIES AND OTHER ALLIES PART

A—NATO DETERRENCE

SEC. 1001. REPORT ON REQUIREMENTS FOR STRATEGY OF DETERRENCE

MAINTAINING NATO'S

(a) REQUIREMENT.—The Secretary of Defense shall submit to Congress a report regarding the ability of the North Atlantic Treaty Organization (NATO) to maintain its strategy of deterrence through the 1990s. The report shall include a specific discussion of the

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implications for such deterrence if the United States and the Soviet Union agree to a treaty which requires the elimination of all intermediate-range nuclear force (INF) missiles having a range between 500 and 5,500 kilometers. The report shall be prepared in consultation with the Supreme Allied Commander, Europe, and the Chairman of the Joint Chiefs of Staff. (b) FORM AND CONTENT OF REPORT.—The Secretary shall submit the report required by subsection (a) in both classified and unclassified forms and shall include in the report the following: (1) A discussion of the effect that the elimination under an INF treaty of intermediate range missiles deployed by the United States and the Soviet Union would likely have on the ability of NATO to maintain an effective flexible response strategy and credible deterrence. (2) The appropriate numbers and types of nuclear weapons and nuclear-capable delivery systems of the United States not limited by the proposed INF treaty which the Secretary of w Defense recommends for deployment in or redeployment to the European theater if an INF treaty is ratified and enters into . force, including a description of any nuclear modernization ] program the Secretary has recommended or proposes to recommend as necessary to ensure that NATO will be able to maintain a credible and effective military strategy. f (3) A discussion of the balance between the nonnuclear forces of NATO and the Warsaw Pact in the European theater, the likelihood of NATO making significant improvements in that balance over the next few years, the potential effect of conventional force balance alternatives currently under consideration by the United States Government, and the likelihood and potential effect of a new agreement between NATO and the Warsaw Pact limiting nonnuclear forces on that balance. (4) A discussion of the feasibility and cost effectiveness of ^ substituting advanced conventional munitions for nuclear weapons currently deployed by NATO, including a discussion of the costs of such weapons and prospects for sharing such costs among NATO allies. ^ (5) A description of nonnuclear forces that would be needed to support the operational concept of Follow-on Forces Attack (FOFA). (6) The status of improvements being made in the air defenses _ of NATO in Europe. "' (7) A discussion of the views of the leaders of member nations of NATO (other than the United States) and of the Supreme Allied Commander, Europe (SACEUR), on the matters described in paragraphs (1) through (5). (c) DEADLINE OF REPORT.—The report required by subsection (a) shall be submitted not later than the earlier of— (1) 90 days after the date of the enactment of this Act; or (2) the date on which the President submits to the Senate for its advice and consent a treaty described in subsection (a). SEC. 1002. SENSE OF CONGRESS ON LEVEL OF UNITED STATES FORCES PERMANENTLY STATIONED IN EUROPE IN SUPPORT OF NATO

(a) FINDINGS.—The Congress makes the following findings with respect to the level of United States military forces permanently stationed in Europe: .., ..

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(1) The agreement in principle between the United States and the Soviet Union to eliminate all intermediate-range nuclear missiles hsis important implications for the defense posture of the North Atlantic Treaty Organization alliance. (2) The presence of United States forces in Europe constitutes the most visible and meaningful evidence of the continuing strong commitment of the United States to the integrity of the a l l I a Ti CG

(3) NATO Defense Ministers stated in May 1987 that the "continued presence of United States forces at existing levels in Europe plays an irreplaceable role in the defense of North America as well as Europe". (b) SENSE OF CONGRESS.—(1) In light of the findings in subsection

(a), it is the sense of Congress that— (A) the stationing in Europe of United States military forces in support of NATO at the level of military personnel permanently stationed in Europe in support of NATO on the date of the enactment of this Act plays an indispensable role for peace and deterrence; and (B) the commitment of United States forces should be continued at that level (assuming all existing basing agreements remain in effect). (2) It is further the sense of Congress that it would not be inconsistent with the sense of Congress expressed in paragraph (1) if the actual number of United States military personnel permanently stationed in Europe in support of NATO at any time falls below the level of such personnel on the date of the enactment of this Act because of administrative fluctuations or if such level is reduced following a determination by the President that national security considerations require such a reduction.

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SEC. 1003. STUDY OF FUTURE OF NATO

The Secretary of Defense shall contribute, from funds appropriated for fiscal year 1988 for operation and maintenance of Defense Agencies, the amount of $50,000 to the North Atlantic Assembly for a study on the future of the North Atlantic Treaty Organization.

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PART B—BURDEN SHARING SEC. 1011. STUDY OF DEFENSE EXPENDITURES IN JAPAN

(a) IN GENERAL.—The Secretary of Defense shall conduct a study of the ways in which the United States may further its national security interests in the Far East. OD) REPORT.—Within 90 days after the date of the enactment of this Act, the Secretary shall transmit to Congress a report on such study. The report shall contain— (1) the plans of the Department of Defense in the current fiveyear defense plan for defense expenditures for each fiscal year covered by the plan to be made in support of United States security interests in the Far East and, of such planned expenditures in each such fiscal year, how much is attributable to projected increases in defense outlays for that fiscal year; (2) the projections for national defense expenditures by Japan for each such fiscal year; (3) the projections for national defense expenditures by the United States directly in support of United States forces, facili-

Far East.

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PUBLIC LAW 100-180—DEC. 4, 1987 ties, and equipment stationed or located in Japan for each such fiscal year; and (4) the projections for national defense expenditures by Japan directly in support of United States forces stationed in Japan for each such fiscal year.

SEC. 1012. SENSE OF CONGRESS REGARDING JAPAN'S CONTRIBUTIONS TO GLOBAL STABILITY

Afghanistan. Union of Soviet Socialist Republics. South Pacific. Cambodia. Vietnam. Persian Gulf.

Seigo Suzuki.

(a) FINDINGS.—The Congress makes the following findings: (1) The alliance of the United States and Japan is the foundation for the security of Japan and peace in the Far East and is a major contributing factor to the democratic freedoms and economic prosperity enjoyed by both the United States and Japan. (2) Threats to the security of both the United States and Japan have increased significantly since 1976, principally as the result of— (A) the occupation of Afghanistan by the Soviet Union; (B) the continued expansion and buildup of military forces of the Soviet Union (particularly the expansionist efforts by the Soviet Union in the South Pacific and the buildup of the Soviet Pacific fleet); (C) the occupation of Cambodia by Vietnam; and (D) instability in the Persian Gulf region (from which Japan receives 60 percent of its petroleum and one-third of its total energy requirements). (3) In keeping with the declaration made at the 1983 meeting in Williamsburg, Virginia, of the leaders of the leading industrialized democracies that "the security of our countries is indivisible and must be approached on a global basis", the government of Japan— (A) has raised its defense spending by an average of 5 percent per year since 1981; (B) has rescinded a limit on annual expenditures for defense of 1 percent of the gross national product of Japan; and f • (C) is fulfilling the pledge of Prime Minister Suzuki to defend the territory, airspace, and sea lanes of Japan to a distance of 1,000 miles by 1990. (4) While recognizing and applauding the actions by the government of Japan referred to in paragraph (3), Congress notes that Japan has the second largest gross national product in the world, is a major creditor nation, and has a large private savings rate, but nevertheless lags far behind other industrialized democracies in terms of the percentage of its gross national product that it spends for national defense and programs to promote global security and stability. (b) SENSE OF CONGRESS.—It is the sense of Congress that the United States would welcome an initiative by Japan to assume a politically acceptable and significant global security role consistent with its economic status by taking the following actions: (1) Increasing spending for its Official Development Assistance program and its defense programs so that, by 1992, the level of spending by Japan on those programs (stated as a percentage of gross national product) will approximate the aver' age of the levels of spending by the member nations of the North Atleintic Treaty Organization on official development

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assistance and defense programs (stated as a percentage of their respective gross national products). (2) Devoting increased spending for its Official Development Assistance program primarily to the Republic of the Philippines and regions of importance to global stability outside of East Asia, particularly Oceania, Latin America, and the Caribbean and Mediterranean nations. (3) Devoting any increase in spending for that program primarily to concessional, untied grants and increasing the portion of total expenditures made for that program for those multilateral financial institutions of which Japan is a member. (4) Designating those nations that are to be recipients of increased development assistance as described in paragraphs (1) through (3) through consultation with its security partners. (5) Completing its five-year defense program for fiscal years 1986 through 1990 and, at the earliest possible date after the completion of that program, further enhancing the fulfillment of the pledge of Prime Minister Suzuki referred to in subsection (a)(3).

Philippines. Oceania. Latin America. Caribbean nations. Mediterranean nations.

PART C—PROCUREMENT MATTERS SEC. 1021. OVERSEAS WORKLOAD PROGRAM

(a) IN GENERAL.—A firm of any member nation of the North Atlantic Treaty Orgeuiization (NATO) or of any major non-NATO ally shall be eligible to bid on any contract for the maintenance, repair, or overhaul of equipment of the Department of Defense to be awarded under competitive procedures as part of the program of the Department of Defense known as the Overseeis Workload Program.

10 USC 2341 note. Contracts.

(b) SITE FOR PERFORMANCE OF WORK.—A contract awarded during

fiscal year 1988 or 1989 to a firm described in subsection (a) may be performed in the theater in which the equipment is normally located or in the country in which the firm is located. (c) EXCEPTIONS.—The Secretary of a military department may restrict the geographic region in which a contract referred to in subsection (a) may be performed if the Secretary determines that performance of the contract outside that specific region— (1) could adversely affect the military preparedness of the Armed Forces of the United States; or (2) would violate the terms of an international agreement to which the United States is a party. (d) REPORT REQUIREMENT.—(1) Not later than December 1, 1988, the Secretary of Defense shall submit to Congress a report on the nature of the maintenance, repair, and overhaul work of the Department of Defense performed under the program of the Department of Defense known as the Overseas Workload Program. (2) The report shall include the following: (A) A description of the categories of work performed under that program and the costs associated with those categories of work. (B) A description of the capabilities of facilities that United States firms have established in Europe to perform work under that program. (C) A description of the capabilities to perform work under Canada. that program by firms in the United States, Canada, and countries that are major non-NATO allies of the United States.

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Canada.

(D) A description of the maintenance, repair, and overhaul work under that program that could be performed in the United .,;,.r States or Canada, or in a country that is a major non-NATO

ally, on a cost-effective basis and without a significant adverse r u ' -. i^i " effect on the readiness of the Armed Forces of the United •'::;';^^.; states.
 * -.». '-iTi^i'^f

(E) A list and detailed explanation of each of the instances, . u.: '.'. through October 31, 1988, in which the Secretary of a military department exercised the authority provided in subsection (c). (e) DEFINITION.—For purposes of this section, the term "major non-NATO ally" has the meaning given that term by section 1105(g)(l) of the National Defense Authorization Act for Fiscal Year 1987 (Public Law 99-661). SEC. 1022. NATO COOPERATIVE PROJECT AGREEMENTS

Clause (C) of section 27(b)(l) of the Arms Export Control Act (22 U.S.C. 2767(b)(l)(C)) is amended by inserting "or for procurement by the United States of munitions from the North Atlantic Treaty Organization or a subsidiary of such organization" after "member country". SEC. 1023. REPORT ON CO-PRODUCTION OR CO-ASSEMBLY OF MlAl TANK

.'.^2. • '^'
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(a) IN GENERAL.—The Secretary of Defense shall submit to Congress a detailed report on any plans of the Department of Defense as of the time of the submission of the report regarding co-production or co-Eissembly of the M l or M l A l Abrams tank with a foreign country. The Secretary shall include in such report the following: (1) The status of any current negotiations by the Secretary of Defense with any foreign country regarding the co-production or co-assembly of the M l or M l A l tank by the United States and that country. (2) A comparison of the long-term effects on the United States mobilization base of production of such tank under a co-produc< tion or co-assembly arrangement with a foreign country. (3) The effect an arrangement with a foreign country for the co-production or co-assembly of such tank would have on the national security of the United States. (b) DEADLINE FOR REPORT.—The Secretary shall submit the report required under subsection (a) not later than 90 days after the date of the enactment of this Act. (c) CLASSIFICATION OF REPORT.—The Secretary shall submit the report required under subsection (a) in both classified and unclassified form. SEC. 1024. WEAPONS STORAGE AND SECURITY SYSTEMS (a) LIMITATION ON INSTALLATION.—Funds appropriated or other-

isB.s;

wise made available to the Department of Defense for fiscal years 1988 and 1989 may not be expended for installation of Weapons Storage and Security Systems (WSSS) in the territory of any European member nation of the North Atlantic Treaty Organization until the Secretary of Defense certifies to Congress that the construction program with respect to such systems is eligible for common financing under the NATO Infrastructure program. (b) EFFECT OF INF TREATY.—If a treaty on Intermediate Range Nuclear Forces (INF) is ratified before the certification under subsection (a) is made, the Secretary shall submit with the certifi-

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cation a plan for revising the installation of those systems in order to reflect any additional requirements resulting from that treaty. (c) MILESTONES.—The Secretary shall submit with the certification Reports. under subsection (a) a description of the key milestones for entering into contracts under the program and for reaching an agreement concerning NATO financing and shall include a certification that all available steps are being taken to accelerate agreement with NATO on a final plan for recoupment of advance funding by the United States for the installation of such systems.

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TITLE XI—DEPARTMENT OF DEFENSE MANAGEMENT PART A—CONSTRUCTION AND MAINTENANCE OF NAVAL VESSELS SEC. 1101. CLARIFICATION OF LIMITATION ON CONTRACTING FOR SHORT-TERM NAVAL VESSEL REPAIR WORK

Subsection (d) of section 7299a of title 10, United States Code, is Rivers and amended to read as follows: harbors. "(d)(1) Before issuing a solicitation for a contract for short-term work for the overhaul, repair, or maintenance of a naval vessel, the Secretary of the Navy shall determine if there is adequate competition available among firms able to perform the work at the homeport of the vessel. If the Secretary determines that there is adequate competition among such firms, the Secretary— "(A) shall issue such a solicitation only to firms able to ,;^.,:; perform the work at the homeport of the vessel; and "(B) may not award such contract to a firm other than a firm that will perform the work at the homeport of the vessel. "(2) Paragraph (1) applies notwithstanding subsection (b) or any other provision of law. "(3) Paragraph (1) does not apply— "(A) in the case of voyage repairs; or "(B) in the case of a vessel that is assigned to the Naval Reserve force and homeported on the West Coast of the United States. "(4) In this subsection, the term 'short-term work' means work that will be for a period of six months or less.". SEC. 1102. RATES FOR PROGRESS PAYMENTS ON CERTAIN NAVAL SHIP REPAIR CONTRACTS

(a) IN GENERAL.—(1) Chapter 633 of title 10, United States Code, is amended by adding at the end the following new section: "§ 7312. Repair or maintenance of naval vessels: progress payments under certain contracts "(a) The Secretary of the Navy shall provide that the rate for progress payments on naval ship contracts to which this section applies shall be— "(1) 90 percent, in the case of firms considered to be small businesses, and "(2) 85 percent, in the case of all other firms. "(b) This section applies to any contract awarded by the Secretary of the Navy for repair, maintenance, or overhaul of a naval vessel (other than a nuclear-powered vessel) for work required to be performed in one year or less.". (2) The table of sections at the beginning of such chapter is amended by adding at the end the following new item:

lo use 7312.

Small business.

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"7312. Repair or maintenance of naval vessels: progress payments under certain contracts.". Contracts. 10 USC 7312 note.

(b) TRANSITION.—The amendment made by subsection (a) does not apply to a contract awarded pursuant to a solicitation issued before the date of the enactment of this Act. SEC. 1103. DOMESTIC CONSTRUCTION OF CERTAIN VESSELS

Section 7309(a) of title 10, United States Code, is amended by striking out "no naval vessel, and no vessel of any other military department," and inserting in lieu thereof "no vessel to be constructed for any of the armed forces". SEC. 1104. CONTRACTS FOR THE OVERHAUL, REPAIR, AND MAINTENANCE OF NAVAL VESSELS

Funds appropriated pursuant to authorizations in this Act may not be obligated or expended for the overhaul, repair, or maintenance of any naval vessel unless, in the evaluation of bids or proposals for such activity, the Secretary of the Navy complies with the requirement of section 7299a of title 10, United States Code. PART B—CONTRACTING OUT 10 USC 2304 note. Regulations.

SEC. n i l. AUTHORITY OF BASE COMMANDERS OVER CONTRACTING FOR COMMERCIAL ACTIVITIES

(a) AUTHORITY.—The Secretary of Defense shall direct that the commander of each military installation (under regulations prescribed by the Secretary of Defense and subject to the authority, direction, and control of the Secretary) shall have the authority and the responsibility to carry out the following: (1) Prepare an inventory each fiscal year of commercial activities carried out by Government personnel on the military ^' installation. ' (2) Decide which commercial activities shall be reviewed 5 under the procedures and requirements of Office of Manage' '- ment and Budget Circular A-76 (or any successor administrative regulation or policy). »' (3) Conduct a solicitation for contracts for those commercial activities selected for conversion to contractor performance V. under the Circular A-76 process. (4) To the maximum extent practicable, assist in finding suitable employment for any employee of the Department of Defense who is displaced because of a contract entered into with a contractor for performance of a commercial activity on the military installation. (b) DEADLINE FOR REGULATIONS.—The Secretary shall prescribe the regulations required by subsection (a) no later than 60 days after the date of the enactment of this Act. (c) DEFINITION.—In this section, the term "military installation" means a base, camp, post, station, yard, center, or other activity under the jurisdiction of the Secretary of a military department which is located within any of the several States, the District of Columbia, the Commonwealth of Puerto Rico, or Guam. (d) TERMINATION OF AUTHORITY.—The authority provided for

commanders of military installations by subsection (a) shall terminate on October 1, 1989.

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 PUBLIC LAW 100-180—DEC. 4, 1987 SEC. 1112. PROHIBITION ON CONTRACTS SECURITY-GUARD FUNCTIONS

FOR

PERFORMANCE

101 STAT. 1147 OF

(a) IN GENERAL.—Subsection (a) of section 2693 of title 10, United States Code, is amended by inserting "or security-guard" after "firefighting". 03) CLERICAL AND CONFORMING AMENDMENTS.—

(1) Subsection G)) of such section is amended by striking out "the function" and inserting in lieu thereof "a function". (2) The heading for such section is amended to read as follows: "§ 2693. Prohibition on contracts for performance of HreHghting or security-guard functions". (3) The item relating to section 2693 in the table of sections at the beginning of chapter 159 of such title is amended to read as follows: "2693. Prohibition on contracts for performance of firefighting or security-guard functions.". PART C—SECURITY AND COUNTERINTELLIGENCE MATTERS SEC. 1121. COUNTERINTELLIGENCE POLYGRAPH PROGRAM

(a) AUTHORITY FOR PROGRAM.—The Secretary of Defense may carry out a program for the administration of counterintelligence polygraph examinations to persons described in subsection (b). The program shall be based on Department of Defense Directive 5210.48, dated December 24, 1984. (b) PERSONS COVERED.—Except as provided in subsection (d), the following persons whose duties involve access to information that has been classified at the level of top secret or designated as being within a special access program under section 4.2(a) of Executive Order 12356 (or a successor Executive order) are subject to this section: (1) Military and civilian personnel of the Department of Defense. (2) Personnel of defense contractors. (c) LIMITATION ON NUMBER OF EXAMINATIONS.—The number of

counterintelligence polygraph examinations that may be administered under this section— (1) may not exceed 10,000 during each of fiscal years 1988, 1989, and 1990; and (2) may not exceed 5,000 during any fiscal year after fiscal year 1990 for which a specific number is not otherwise provided by law. (d) EXCEPTIONS FROM COVERAGE FOR CERTAIN INTELLIGENCE AGENCIES AND FUNCTIONS.—This section does not apply—

(1) to a person assigned or detailed to the Central Intelligence Agency or to an expert or consultant under a contract with the Central Intelligence Agency; (2) to (A) a person employed by or assigned or detailed to the National Security Agency, (B) an expert or consultant under contract to the National Security Agency, (C) an employee of a contractor of the National Security Agency, or (D) a person applying for a position in the National Security Agency; (3) to a person assigned to a space where sensitive cryptographic information is produced, processed, or stored; or

91-194 O - 90 - 6; QL.3 Part 2

10 USC 113 note.

Classified information.

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(4) to a person employed by, or assigned or detailed to, an office within the Department of Defense for the collection of I specialized national foreign intelligence through reconnaissance programs or a contractor of such an office. (e) POLYGRAPH RESEARCH PROGRAM.—The Secretary of Defense shall carry out a continuing research program to support the polygraph activities of the Department of Defense. The program shall include— (1) an on-going evaluation of the validity of polygraph techniques used by the Department; 5 ^ (2) research on polygraph countermeasures and anti-countermeasures; and i (3) developmental research on polygraph techniques, instrumentation, and analytic methods. (f) ANNUAL REPORT ON POLYGRAPH PROGRAMS.—(1) Not later than January 15 of each year, the Secretary of Defense shall submit to Congress a report on polygraph examinations administered by or for the Department of Defense during the previous fiscal year (whether administered under this section or any other authority). (2) Each such report shall include the following with regard to the ., - .; f, program authorized by subsection (a): < (A) A statement of the number of polygraph examinations administered by or for the Department of Defense during such (B) A description of the purposes and results of such examinations. (C) A description of the criteria used for selecting programs and persons for such examination. (D) A statement of the number of persons who refused to ': submit to such an examination and a description of the actions / taken as a result of the refusals. (E) A statement of the number of persons for which such an 1^ examination indicated deception and the action taken as a result of the examinations. (F) A detailed accounting of those cases in which more than >,- two such examinations were needed to attempt to resolve discrepancies and those cases in which the examination of a person extended over more than one day. (3) Each such report shall also include the following: ' (A) A description of any plans to expand the use of polygraph I r. examinations in the Department of Defense. il (B) A discussion of any plans of the Secretary for recruiting and training additional polygraph operators together with .V statistical data on the employment turnover of Department of Defense polygraph operators. vj; (C) A description of the results during the preceding fiscal 3f year of the research program under subsection (e). (D) A statement of the number of polygraph examinations administered to persons described in subsection (d) (which number may be set forth in a classified annex to the report). (g) REPEAL.—Section 1221 of the Department of Defense Authorization Act, 1986 (Public Law 99-145; 99 Stat. 726), is 10 USC 133 note, repealed. (h) EFFECTIVE DATE.—This section shall take effect as of October 1, 1987. ...,,.u • -. •: -
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SEC. 1122. ASSESSMENT OF SOVIET ELECTRONIC ESPIONAGE CAPABILITY FROM MOUNT ALTO EMBASSY SITE

District of Columbia.

(a) REVIEW AND ASSESSMENT.—The Secretary of Defense shall review and assess the present and potential capabilities of the Government of the Soviet Union to intercept United States communications involving diplomatic, military, and intelligence matters from facilities on Mount Alto in the District of Columbia. The Secretary shall submit to Congress a report on such review and assessment not later than 90 days after the date of the enactment of this Act.

Communications and telecommunications. Reports.

(b) DETERMINATION OF CONSISTENCY WITH NATIONAL SECURITY.—

The report required by subsection (a) shall include a determination by the Secretary of Defense as to whether or not the present and proposed occupation of facilities on Mount Alto by the Government of the Soviet Union is consistent with the national security of the United States. (c) CLASSIFICATION OF REPORT.—The report required by subsection (a) shall be submitted in both a clsissij^ed and unclassified form, except that the determination required by subsection QD) shall be submitted in an unclassified form. (d) LIMITATION ON DELEGATION.—The Secretary of Defense may

not delegate the duty to make the determination required by subsection (b). SEC. 1123. DISSEMINATION OF UNCLASSIFIED INFORMATION CONCERNING PHYSICAL PROTECTION OF SPECIAL NUCLEAR MATERIAL

(a) IN GENERAL.—Chapter 3 of title 10, United States Code, is amended by inserting after section 127 the following new section: "§ 128. Physical protection of special nuclear material: limitation 10 USC 128. on dissemination of unclassified information "(a)(1) In addition to any other authority or requirement regard- Regulations. ing protection from dissemination of information, and subject to section 5520t)X3) of title 5, the Secretary of Defense, with respect to special nuclear materials, shall prescribe such regulations, after notice and opportunity for public comment thereon, or issue such orders as may be necessary to prohibit the unauthorized dissemination of unclassified information pertaining to security measures, including security plans, procedures, and equipment for the physical protection of special nuclear material. "(2) The Secretary may prescribe regulations or issue orders under Regulations. paragraph (1) to prohibit the dissemination of any information Safety. described in such paragraph only if and to the extent that the Secretary determines that the unauthorized dissemination of such information could reasonably be expected to have a significant adverse effect on the health and safety of the public or the common defense and security by significantly increasing the likelihood of— "<A) illegal production of nuclear weapons, or "(B) theft, diversion, or sabotage of special nuclear materials, equipment, or facilities. "(3) In making a determination under paragraph (2), the Secretary may consider what the likelihood of an illegal production, theft, diversion, or sabotage referred to in such paragraph would be if the information proposed to be prohibited from dissemination under this section were at no time available for dissemination.

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