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100 STAT. 3961

southern flank of NATO' means Greece, Italy, Portugal, Spain, and Turkey.". SEC. 1102. NATO COOPERATIVE LOGISTIC SUPPORT AGREEMENTS

10 USC 2407 note.

(a) GENERAL AUTHORITY.—The Secretary of Defense may enter into bilateral or multilateral Weapon System Partnership Agreements (as defined in subsection (g)) with one or more governments of other member countries of the North Atlantic Treaty Organization (NATO) for the purpose of providing cooperative logistics support for the armed forces of the countries which are parties to the agreements. Such agreements may include provision for the transfer of logistics support, supplies, and services by the United States to the NATO Maintenance and Supply Organization and for the acquisition of logistics support, supplies, and services by the United States from such Organization. (b) AUTHORITY OF SECRETARY OF DEFENSE.—Under the terms of a Weapon System Partnership Agreement entered into under subsection (a), the Secretary of Defense may— (1) agree that the NATO Maintenance and Supply Organiza- Contracts, tion may make contracts for supply and acquisition of logistics " support in Europe for requirements of the United States, to the ' extent the Secretary determines that the procedures of such Organization governing such supply and acquisition are appropriate; and ^ (2) share the costs of set-up charges of facilities for use by the ' NATO Maintenance and Supply Organization to provide ^ cooperative logistics support and share in the costs of establish' ing a revolving fund for initial acquisition and replenishment of supply stocks to be used by the NATO Maintenance and Supply Organization to provide cooperative logistics support. (c) SHARING OF ADMINISTRATIVE EXPENSES.—Each Weapon System Partnership Agreement shall provide for joint management by the participating countries and for the equitable sharing of the administrative costs incident to such agreement. (d) APPLICATION OF CHAPTER 137.—Except as provided in this Contracts, section, the provisions of chapter 137 of title 10, United States Code, Ante, p. 3952. shall apply to contracts entered into by the Secretary of Defense for the acquisition of logistics support under a Weapon System Partnership Agreement. (e) APPLICATION OF ARMS EXPORT CONTROL ACT.—The transfer of

defense articles or defense services to member countries of the North Atlantic Treaty Organization and the NATO Maintenance and Supply Organization for the purposes of a Weapon System Partnership Agreement shall be carried out in accordance with the provisions of the Arms Export Control Act (22 U.S.C. 2751 et seq.). (f) SUPPLEMENTAL AUTHORITY.—The authority of the Secretary of

Defense under this section is in addition to the authority of the Secretary under chapter 138 of title 10, United States Code, and any 10 USC 2321 et other provision of law. seq. (g) DEFINITION.—For the purpose of this section, the term i;..;^-^l "Weapon System Partnership Agreement" means an agreement i-.n^jS' between the United States and one or more other NATO countries participating in the operation of the NATO Maintenance and Supply Organization that— (1) is entered into pursuant to the terms of the charter of the NATO Maintenance and Supply Organization; and

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 100 STAT. 3962 B*i ' •'

'

PUBLIC LAW 99-661—NOV. 14, 1986 (2) is for the common logistic support of a specific weapon system common to the participating countries.

SEC. 1103. COOPERATIVE PROJECTS

(a) ARMS EXPORT CONTROL ACT.—(1) Section 27 of the Arms Export Control Act (22 U.S.C. 2767) is amended— (A) in subsection (b)— (i) by inserting ", in the case of an agreement with the North Atlantic Treaty Organization or with one or more member countries of that Organization," after "project' " in paragraph (1); (ii) by striking out "and" at the end of paragraph (1); (iii) by redesignating paragraph (2) as paragraph (3); and &>^«.

Q^^ |jy inserting after paragraph (1) the following new

paragraph: "(2) the term 'cooperative project', in the case of an agreement entered into under subsection 0), means a jointly managed -.3 «>: arrangement, described in a written agreement among the parties, which is undertaken in order to enhance the ongoing multinational effort of the participants to improve the conventional defense capabilities of the participants and which provides— "(A) for one or more of the other participants to share with the United States the costs of research on and development, testing, evaluation, or joint production (including follow-on support) of certain defense articles; "(B) for concurrent production in the United States and ,^.in the country of another participant of a defense article jointly developed in accordance with subparagraph (A); or "(C) for procurement by the United States of a defense article or defense service from another participant to the ,4.,^. agreement; and"; (B) in subsection (f)(3), by inserting after "Government" the following: ", including an estimate of the costs as a result of 22 USC 2761, waivers of section 21(e)(1)(A) and 43(b) of this Act,"; ^'''92. (Q in subsection (g), by striking out "Section" and inserting in lieu thereof the following: "In the case of a cooperative project with a North Atlantic Treaty Organization country, section,"; and (D) by adding at the end the following new subsection: "(j)(l) 'The President may enter into a cooperative project agreement with any friendly foreign country not a member of the North Atlantic Treaty Organization under the same general terms and conditions as the President is authorized to enter into such an agreement with one or more member countries of the North Atlantic Treaty Organization if the President determines that the cooperative project agreement with such country would be in the foreign policy or national security interests of the United States. President of U.S. "(2) Not later than January 1 of each year, the President shall Reports. submit to the Committees on Armed Services and Foreign Relations of the Senate and to the Committees on Armed Services and Foreign Affairs of the House of Representatives a report specifying (A) the countries eligible for participation in such a cooperative project agreement under this subsection, and (B) the criteria used to determine the eligibility of such countries.".

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(2) The heading for such section is amended to read as follows: "AUTHORITY OF PRESIDENT TO ENTER INTO COOPERATIVE PROJECTS WITH F R I E N D L Y FOREIGN C O U N T R I E S. — ".

(b) TITLE 10, UNITED STATES CODE.—(1) Section 2407 of title 10, United States Code, is amended— (A) by striking out "North Atlantic Treaty Organization (NATO)" in subsection (a)(1); (B) by striking out "NATO" in subsection (c)(2); and (C) by striking out "NATO" each place it appears in paragraphs (1) and (2) of subsection (e). (2)(A) The heading of such section is amended to read as follows: "§ 2407. Acquisition of defense equipment under cooperative projects". (B) The item relating to such section in the table of sections at the beginning of chapter 141 of such title is amended to read as follows: "2407. Acquisition of defense equipment under cooperative projects.". SEC. 1104. ACQUISITION AND CROSS-SERVICING AGREEMENTS (a) AUTHORITY TO ENTER INTO AGREEMENTS WITH COUNTRIES OUTSIDE EUROPE.—Sections 2341 and 2342 of title 10, United States Code,

are amended to read as follows: "§ 2341. Authority to acquire logistic support, supplies, and services for elements of the armed forces deployed outside the United States "Subject to section 2343 of this title and subject to the availability of appropriations, the Secretary of Defense may— "(1) acquire from the Governments of North Atlantic Treaty Organization countries and from North Atlantic Treaty Organization subsidiary bodies logistic support, supplies, and services for elements of the armed forces deployed in Europe and adjacent waters; and "(2) acquire from any government not a member of the North Atlantic Treaty Organization in which elements of the armed forces are deployed (or are to be deployed) logistic support, supplies, and services for elements of the armed forces deployed (or to be deployed) in such country or in the military region in which such country is located if that country— "(A) has a defense alliance with the United States; "(B) permits the stationing of members of the armed Maritime affairs. forces in such country or the homeporting of naval vessels of the United States in such country; "(C) has agreed to preposition materiel of the United States in such country; or "(D) serves as the host country to military exercises '^ which include elements of the armed forces or permits other military operations by the armed forces in such country. "§2342. Cross servicing agreements "(a) Subject to section 2343 of this title and to the availability of appropriations, and after consultation with the Secretary of State, the Secretary of Defense may enter into any of the following agreements:

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 100 STAT. 3964

Defense and national security.

Regulations. Contracts.

10 USC 2344.

PUBLIC LAW 99-661—NOV. 14, 1986

"(1) An agreement with the government of a North Atlantic Treaty Organization country (or with a North Atlantic Treaty Organization subsidiary body) under which— "(A) the United States agrees to provide logistic support, supplies, and services to military forces of such country (or HiAii-^ subsidiary body) deployed in Europe and adjacent waters, in return for "(B) the reciprocal provision of logistic support, supplies, and services by such country (or subsidiary body) to elements of the armed forces deployed in Europe and adjacent ' waters. "(2) An agreement with the government of a country designated by the Secretary of Defense which is not a member of the North Atlantic Treaty Organization under which— "(A) the United States agrees to provide logistic support, supplies, and services to the military forces of such country, in return for "(B) the reciprocal provision of logistic support, supplies, and services by such country to elements of the armed forces deployed in such country or in the military region in which such country is located. "(3) An agreement with the government of a country referred to in paragraph (1) or (2) under which— "(A) the United States agrees to provide logistic support, supplies, and services to the military forces of such country, in return for "(B) the reciprocal provision of support, supplies, and services for the armed forces from such country while the ¥:II military forces of such country are stationed in North America or are performing military exercises or training in North America. "(b) The Secretary of Defense may not designate a country for an agreement under this section— "(1) unless the Secretary, after consultation with the Secretary of State, determines that the designation of such country for such purpose is in the interest of the national security of the United States; and "(2) in the case of a country which is not a member of the North Atlantic Treaty Organization, notifies the Committees on Armed Services and Foreign Relations of the Senate and the Committees on Armed Services and Foreign Affairs of the House of Representatives at least 30 days before the date on which such country is designated by the Secretary under subsection (a). "(c) The Secretary of Defense may not use the authority of this chapter to procure from any foreign government as a routine or normal source any goods or services reasonably available from United States commercial sources. "(d) The Secretary shall prescribe regulations to ensure that contracts entered into under this chapter are free from self-dealing, bribery, and conflict of interests.". (b) METHODS OF PAYMENT.—Section 2344(b) of such title is amended— (1) by inserting "or other foreign country" after "country" in the material preceding subparagraph (A) of paragraph (1); and (2) by inserting "or other foreign country' in paragraph (3) 1^ after "country".

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(c) LIQUIDATION OF ACCRUED CREDITS AND LIABILITIES.—Section

2345 of such title is amended— 10 USC 2345. (1) by inserting "(a)" before "Credits" at the beginning of such section; and (2) by adding at the end the following new subsection: "(b) Payment-in-kind or exchange entitlements accrued as a result of acquisitions and transfers of logistic support, supplies, and services under authority of this chapter shall be satisfied within 12 months after the date of the delivery of the logistic support, supplies, or services.". (d) LIMITATIONS ON AMOUNTS THAT MAY BE OBLIGATED OR ACCRUED BY THE UNITED STATES.—(1) Subsection (a) of section 2347

of such title is amended— (A) by inserting "(1)" after "(a)"; and (B) by adding at the end the following new paragraph: "(2) Except during a period of active hostilities in the military region affecting a country which is not a member of the North Atlantic Treaty Organization, but with which the United States has one or more acquisition or cross-servicing agreements, the total amount of reimbursable liabilities that the United States may accrue under this chapter (before the computation of offsetting balances) with such country may not exceed $10,000,000 in any fiscal year, and of such amount not more than $2,500,000 in liabilities may be accrued for the acquisition of supplies (other than petroleum, oils, and lubricants). The $10,000,000 limitation specified in this paragraph is in addition to the limitation specified in paragraph (1).". (2) Subsection (b) of such section is amended— (A) by inserting "(1)" after "(b)"; and (B) by adding at the end the following new paragraph: "(2) Except during a period of active hostilities in the military region affecting a country referred to in paragraph (1), the total amount of reimbursable credits that the United States may accrue under this chapter from such country (before computation of offsetting balances) may not exceed $10,000,000 in any fiscal year. Such limitation specified in this paragraph is in addition to the limitation specified in paragraph (1).". (e) INVENTORIES OF SUPPLIES NOT TO B E INCREASED.—Section 2348 of such title is amended by striking out "to military forces of any North Atlantic Treaty Organization country or any North Atlantic Treaty Organization subsidiary body". (f) DEFINITION.—Section 2350 of such title is amended by adding a t

• ^ ''•-

the end the following new paragraph: "(3) 'Military region' means the geographical area of responsibility assigned to the commander of a unified combatant command (excluding Europe and adjacent waters).". (g) CLERICAL AMENDMENT.—The item relating to section 2341 in the table of sections at the beginning of chapter 138 of such title is amended to read as follows: "2341. Authority to acquire logistic support, supplies, and services for elements of the armed forces deployed outside the United States.". SEC. 1105. COOPERATIVE RESEARCH AND DEVELOPMENT WITH MAJOR NON-NATO ALLIES

(a) FINDINGS.—The Congress finds— (1) that the North Atlantic Treaty Organization Cooperative Research and Development program instituted during fiscal

22 USC 2767a.

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 100 STAT. 3966

PUBLIC LAW 99-661—NOV. 14, 1986

year 1986 has served to increase cooperation in research and 5iRS >: J f development among member countries of the North Atlantic 1,, Treaty Organization; and = (2) that additional benefits of cooperation in research and development might ensue from an extension of the program to include major non-NATO allies of the United States. (b) CONGRESSIONAL REQUEST FOR COOPERATION ON RESEARCH AND

DEVELOPMENT.—The Congress urges and requests the President and the Secretary of Defense to pursue diligently opportunities for the United States and major non-NATO allies of the United States to cooperate— (1) in research and development on defense equipment and munitions; and (2) in the production of defense equipment. (c) FUNDS FOR COOPERATIVE PROJECTS.—Of the funds appropriated pursuant to the authorizations of appropriations in section 201, up to $40,000,000 shall be available for cooperative research and development projects with major non-NATO allies. (d) RESTRICTIONS.—(1) A memorandum of understanding (or other formal agreement) to conduct a cooperative research and development project under this section may not be entered into unless the Secretary of Defense determines that the proposed project enhances the ongoing multinational effort to improve conventional defense capabilities through the application of emerging technology. (2) Each such cooperative project shall require sharing of the costs of research between the participants on an equitable basis. (3) The Secretary may not delegate the authority to make a determination under paragraph (1) except to the Deputy Secretary of Defense or the Under Secretary of Defense for Acquisition. (e) RESTRICTIONS ON PROCUREMENT OF EQUIPMENT AND SERVICES.—

Reports.

a'Tl ">.••••': S f

(1) In order to assure substantial participation on the part of major non-NATO allies in cooperative research and development projects, funds made available under subsection (c) for such projects may not be used to procure equipment or services from any foreign government, foreign research organization, or other foreign entity. (2) A major non-NATO ally may not use any United States military or economic assistance grants, loans, or other funds for the purpose of making its contribution to a cooperative research and development program entered into with the United States under this section. (f) NoTiCE TO CONGRESS.—Not later than January 1 of each year, the Secretary of Defense and the Secretary of State shall jointly submit to the Committees on Armed Services and Foreign Relations of the Senate and to the Committees on Armed Services and Foreign Affairs of the House of Representatives a report— (1) enumerating those countries eligible for participation with the United States in a cooperative research and development program authorized by this section; and (2) specifying the criteria used in determining eligibility for > . the participation of such countries. (g) DEFINITIONS.—As used in this section: (1) The term "major non-NATO ally" means a country des ignated as a major non-NATO ally for the purposes of this section by the Secretary of Defense with the concurrence of the Secretary of State. (2) The term "cooperative research and development project" means a project involving joint participation by the United

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100 STAT. 3967

States and one or more major non-NATO allies under a memorandum of understanding (or other formal agreement) to carry out a joint research and development program— (A) to develop new conventional equipment and munitions; or (B) to modify existing military equipment to meet United ^^.; r"' States military requirements. TITLE XII—DEPARTMENT OF DEFENSE MANAGEMENT PART A—MANAGEMENT OF CERTAIN PROCUREMENT MATTERS SEC. 1201. CONTRACTS FOR OVERHAUL, REPAIR, AND MAINTENANCE OF NAVAL VESSELS

(a) IN GENERAL.—Section 7299a of title 10, United States Code (relating to construction of combatant and escort vessels and assignment of naval vessel projects), is amended by adding at the end the following new subsections: "(c) In evaluating bids or proposals for a contract for the overhaul, repair, or maintenance of a naval vessel, the Secretary of the Navy shall, in determining the cost or price of work to be performed in an area outside the area of the homeport of the vessel, consider foreseeable costs of moving the vessel and its crew from the homeport to the outside area and from the outside area back to the homeport at the completion of the contract. "(d)(1) Notwithstanding subsections (b) and (c), the Secretary may award a contract for short-term work for the overhaul, repair, or maintenance of a naval vessel only to a contractor that is able to perform the work at the homeport of the vessel, if the Secretary determines that adequate competition is available among firms able to perform the work at the homeport of the vessel. "(2) In this subsection, the term 'short-term work' means work that will be for a period of six months or less.". (b) REPEAL OF LIMITATION ON FY86 FUNDS.—Section 8104 of the Department of Defense Appropriations Act, 1986 (as contained in section 101(b) of Public Law 99-190 (99 Stat. 1221)), is repealed.

^^, '

,.

SEC. 1202. HANDLING OF HAZARDOUS WASTE GENERATED DURING REPAIR OR MAINTENANCE OF NAVAL VESSELS

(a) REQUIRED CONTRACT PROVISIONS.—Chapter 633 of title 10, United States Code, is amended by adding at the end the following new section: "§ 7 3 n. Repair or maintenance of naval vessels: handling of 10 USC 7311. hazardous waste "(a) CONTRACTUAL PROVISIONS.—The Secretary of the Navy shall ensure that a contract entered into for repair or maintenance of a naval vessel includes the following provisions: "(1) IDENTIFICATION OF HAZARDOUS WASTES.—Provisions identifying the type and amounts of hazardous wastes that are expected to be generated during the performance of the repair or maintenance. "(2) COMPENSATION.—Provisions specifying that the contractor shall be compensated under the contract for work performea by the contractor for duties of the contractor specified under paragraph (3).

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PUBLIC LAW 99-661—NOV. 14, 1986

"(3) STATEMENT OF WORK.—Provisions mutually acceptable to ' the Navy and the contractor specifying the responsibilities of the Navy and of the contractor, respectively, for the removal, ^ handling, storage, transportation, and disposal of hazardous wastes generated during the performance of the repair or maintenance. "(b) RENEGOTIATION OF CONTRACT.—The Secretary of the Navy shall renegotiate a contract described in subsection (a) if— "(1) the contractor, during the performance of repair or maintenance under the contract, discovers hazardous wastes different in type or amount from those identified in the contract; and ^': "(2) such hazardous wastes originated on the naval vessel on which the repair or maintenance is being performed.". - (b) CLERICAL AMENDMENT.—The table of sections at the beginning of such chapter is amended by adding at the end the following new item: "7311. Repair or maintenance of naval vessels: handling of hazardous waste.". SEC. 1203. LIMITATION ON TRANSFER OF CERTAIN TECHNICAL DATA PACKAGES (a) TECHNICAL DATA PACKAGES FOR PRODUCTION OF LARGE-CALIBER

CANNON.—(1) Chapter 433 of title 10, United States Code, is amended by adding at the end the following new section: 10 USC 4542.

„.,., '^ ' '

"§4542. Technical data packages for large-caliber cannon: prohibition on transfers to foreign countries; exception "(a) GENERAL RULE.—Funds appropriated to the Department of Defense may not be used— "(1) to transfer to a foreign country a technical data package
 * '" for a defense item being manufactured or developed in an

arsenal; or sf "(2) to assist a foreign country in producing such a defense •^ item. "(b) EXCEPTION.—The Secretary of the Army may use funds appropriated to the Department of Defense to transfer a technical data package, or to provide assistance, described in subsection (a) if^ "(1) the transfer or provision of assistance is to a friendly foreign country (as determined by the Secretary of Defense in Sf' consultation with the Secretary of State); "(2) the Secretary of the Army determines that such action— ,^ "(A) would have a clear benefit to the preservation of the concerned; and f' "(B) would not transfer technology (including production B* techniques) considered unique to the arsenal concerned; and '*' • "(3) the Secretary of Defense enters into an agreement with the country concerned described in subsection (c). "(c) CoPRODUCTiON AGREEMENTS.—An agreement under this subsection shall be in the form of a Government-to-Government Memorandum of Understanding and shall include provisions that— "(1) prescribe the content of the technical data package or assistance to be transferred to the foreign country participating in the agreement;
 * '^^'' production base for the production of cannon at the arsenal

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"(2) require that production by the participating foreign country of the defense item to which the technical data package or assistance relates be shared with the arsenal concerned; "(3) subject to such exceptions as may be approved under subsection (d), prohibit transfer by the participating foreign country to a third party or country of— "(A) any defense article, technical data package, technology, or assistance provided by the United States under the agreement; and "(B) any defense article produced by the participating foreign country under the agreement; and "(4) require the Secretary of Defense to monitor compliance with the agreement and the participating foreign country to report periodically to the Secretary of Defense concerning the agreement. "(d) TRANSFERS TO THIRD PARTIES.—A transfer described in subsection (b)(3) may be made if— "(1) the defense article, technical data package, or technology to be transferred is a product of a cooperative research and development program in which the United States and the participating foreign country were partners; or
 * t "(2) the President—

President of U.S. "(A) complies with all requirements of section 3(d) of the •• • 5 Arms Export Control Act (22 U.S.C. 2753(d)) with respect to such transfer; and "^ "(B) certifies to Congress, before the transfer, that the transfer would provide a clear benefit to the production base of the United States for large-caliber cannon. "(e) NOTICE AND REPORTS TO CONGRESS.—(1) The Secretary of the

Army shall submit to Congress a notice of each agreement entered into under this section. "(2) The Secretary shall submit to Congress a semi-annual report Reports. on the operation of this section and of agreements entered into under this section. "(0 ARSENAL DEFINED.—In this section, the term 'arsenal' means a Government-owned, Government-operated defense plant that manufactures large-caliber cannon.". (2) The table of sections at the beginning of such chapter is amended by adding at the end the following new item: "4542. Technical data packages for large-caliber cannon: prohibition on transfers to foreign countries; exception.".

(b) EFFECTIVE DATE.—Section 4542 of title 10, United States Code, 10 USC 4542 as added by subsection (a), shall apply with respect to funds appro- note. priated for fiscal years after fiscal year 1986. SEC. 1204. REQUIREMENTS CONCERNING TRANSPORTATION OF MEMBERS OF THE ARMED FORCES BY CHARTERED AIRCRAFT

(a) IN GENERAL.—(1) Chapter 157 of title 10, United States Code, is amended by adding at the end the following new section: "§ 2640. Charter air transportation of members of the armed forces "(a) REQUIREMENTS.—(1) The Secretary of Defense may not enter into a contract with an air carrier for the charter air transportation of members of the armed forces unless the air carrier—

Contracts. 10 USC 2640.

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"(A) meets, at a minimum, the safety standards established by the Secretary of Transportation under title VI of the Federal Aviation Act of 1958 (49 U.S.C. App. 1421 et seq.); "(B) has at least 12 months of experience operating services in air transportation that are substantially equivalent to the service sought by the Department of Defense; and . ,..,,, "(C) undergoes a technical safety evaluation. "(2) For purposes of paragraph (1)(C), a technical safety evaluation— "(A) shall include inspection of a representative number of aircraft; and "(B) shall be conducted in accordance with regulations prescribed by the Secretary, after consultation with the Secretary • of Transportation. "(b) INSPECTIONS.—The Secretary shall provide for inspections of each air carrier that contracts with the Department of Defense for the charter air transportation of members of the armed forces. The inspections shall be conducted in accordance with standards established by the Secretary, after consultation with the Secretary of Transportation, and shall include, at a minimum, the following: "(1) An on-site capability survey of the air carrier conducted at least once every two years. • ».- . "YsH "(2) A performance evaluation of the air carrier conducted at least once every six months. "(3) A preflight safety inspection of each aircraft conducted at any time during the operation of, but not more than 72 hours before, each internationaly scheduled charter mission departing the United States. "(4) A preflight safety inspection of each aircraft used for domestic charter missions conducted to the greatest extent > practical. "(5) Operational check-rides on aircraft conducted periodi. cally. V > u^^^ COMMERCIAL AIRLIFT REVIEW BOARD.—The Secretary shall establish a Commercial Airlift Review Board within the Department of Defense. The Board shall consist of personnel from the Department of Defense and other Government personnel as may be appropriate. The duties of the Board shall be— "(1) to make recommendations to the Secretary on suspension '' and reinstatement of air carriers under subsection (d); "(2) to make recommendations to the Secretary on waivers . under subsection (g); and "(3) to carry out such other duties and make recommendations on such other matters as the Secretary considers ' appropriate. ^^' "(d) SUSPENSION AND REINSTATEMENT.—(1) The Secretary shall establish guidelines for the suspension of air carriers under contract with the Department of Defense for the charter air transportation of members of the armed forces and for the reinstatement of air carriers that have been so suspended. The guidelines— "(A) shall require the immediate determination of whether to suspend an air carrier if an aircraft of the air carrier is involved in a fatal accident; and ,;,,.. ^ f "(B) may require the suspension of an air carrier— ' '" ' ,,in"(i) if the carrier is in violation of any order, rule, regular^}\^ tion, or standard prescribed under title VI of the Federal Aviation Act of 1958 (49 U.S.C. App. 1421 et seq.); or

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j^

"(ii) if an aircraft of the air carrier is involved in a serious accident. "(2) The Commercial Airlift Review Board shall make recommendations to the Secretary on suspension and reinstatement under this subsection. "(3) The Secretary shall include in each contract subject to this section the provisions on suspension and reinstatement established under this subsection. . >,; • •:•• "(e) AUTHORITY TO LEAVE UNSAFE AIRCRAFT.—A representative of the Military Airlift Command, the Military Traffic Management Command, or such other agency as may be designated by the Secretary of Defense (or if there is no such representative reasonably available, the senior officer on board a chartered aircraft) may order members of the armed forces to leave a chartered aircraft if the representative (or officer) determines that a condition exists on the aircraft which may endanger the safety of the members. "(f) FAA INFORMATION.—The Secretary shall request the Sec- Reports, retary of Transportation to provide to the Secretary a report on each inspection performed by Federal Aviation Administration personnel, and the status of corrective actions taken, on each aircraft of an air carrier under contract with the Department of Defense for the charter air transportation of members of the armed forces. ^, . ' "(g) WAIVER.—After considering recommendations by the '•'>* Commercial Airlift Review Board, the Secretary may waive any provision of this section in an emergency. "(h) REGULATIONS.—The Secretary shall prescribe regulations to carry out this section, including requirements and identification of inspecting personnel with respect to preflight safety inspections required by subsection (b)(3). "(i) DEFINITIONS.—In this section: "(1) The terms 'air carrier', 'aircraft', 'air transportation', and 'charter air transportation' have the meanings given such terms by sections 101(3), 101(5), 101(10), and 101(15), respectively, of the Federal Aviation Act of 1958 (49 U.S.C. App. 1301(3), 1301(5), 1301(10), and 1301(15)). "(2) The term 'members of the armed forces' means members of the Army, Navy, Air Force, and Marine Corps.". (2) The table of sections at the beginning of such chapter is amended by adding at the end the following new item: "2640. Charter air transportation of members of the armed forces.".

(b) DEADLINE FOR REGULATIONS.—Not later than 120 days after the 10 USC 2640 date of the enactment of this Act, the Secretary of Defense shall ^°^prescribe the regulations required by section 2640 of title 10, United States Code, as added by subsection (a). (c) EFFECTIVE DATE.—Section 2640 of title 10, United States Code, 10 USC 2640 as added by subsection (a), shall apply only to contracts which are ^°^entered into on or after the date on which the regulations required by subsection (b) are prescribed. SEC. 1205. FUEL SOURCES FOR HEATING SYSTEMS ON MILITARY INSTALLATIONS; PROHIBITION ON CONVERTING CERTAIN HEATING FACILITIES

(a) REQUIREMENT AND RESTRICTION.—(1) Section 2690 of title 10, United States Code, is amended to read as follows:

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PUBLIC LAW 99-661—NOV. 14, 1986

"§ 2690. Fuel sources for heating systems; prohibition on converting certain heating facilities "(a)(1) The Secretary of the military department concerned shall provide that the primary fuel source to be used in any new heating system constructed on lands under the jurisdiction of the military department is the most cost effective fuel for that heating system over the life cycle of the system. Regulations. "(2) The Secretary of Defense shall prescribe regulations for the determination of the life-cycle cost effectiveness of a fuel for the purposes of paragraph (1). "(b) The Secretary of a military department may not convert a heating facility at a United States military installation in Europe from a coal-fired facility to an oil-fired facility, or to any other energy source facility, unless the Secretary— "(1) determines that the conversion (A) is required by the government of the country in which the facility is located, or (B) ?no.i$M is cost effective over the life cycle of the facility; and "(2) submits to Congress notification of the proposed conversion and a period of 30 days has elapsed following the date on which Congress receives the notice.". (2) The item relating to such section in the table of sections at the 10 USC 2661 et beginning of chapter 159 of such title is amended to read as follows: seq.

. "2690. Fuel sources for heating systems.".

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-. J

(b) REPEAL OF CERTAIN REQUIREMENTS AND RESTRICTIONS.—Sec-

tions 8022, 8070, and 8110 of the Department of Defense Appropriations Act, 1986 (as contained in section 101(b) of Public Law 99-190; 99 Stat. 1207, 1214, and 1222), are repealed. SEC. 1206. REVIEW OF THE SECURITY ADMINISTRATION IN DEFENSE LfU INDUSTRY OF DEPARTMENT OF DEFENSE SPECIAL ACCESS PROGRAMS

(a) REVIEW.—The Secretary of Defense shall direct the Director of the Defense Investigative Service to conduct a review of the security administration of Department of Defense special access programs at all Department of Defense contractors involved in such programs. The review shall include a review of the frequency and adequacy of security inspections of such contractors conducted by the Department of Defense. (b) REPORT.—(1) The Secretary shall submit to the Committees on Armed Services of the Senate and House of Representatives a report (!>.., •>.setting forth the results of the review under subsection (a). " . (2) The report shall— (A) identify any shortcoming found to exist in security administration of Department of Defense special access pro"ras f>*Upi grams at Department of Defense contractors involved in such ?*f;>ri programs and the actions being taken to correct each such shortcoming; (B) include recommendations for improvement of Department of Defense oversight of special access programs, if the Secretary considers such improvement necessary; and (C) include recommendations for such legislation as the Secretary determines is required to correct such deficiencies. (3) The report shall be submitted in an unclassified form. It shall be submitted not later than May 1, 1987. jj? x ^ ^ r /?'y: - s^;smj ^

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(c) DIS SECURITY INVESTIGATIONS.—After consulting with the Secretary of Defense, the Director of the Defense Investigative Service may conduct such security inspections of special access programs as the Director considers appropriate, unless otherwise directed by the Secretary of Defense. SEC. 1207. CONTRACT GOAL FOR MINORITIES

(a) GOAL.—Except as provided in subsection (d), a goal of 5 percent of the amount described in subsection (b) shall be the objective of the Department of Defense in each of fiscal years 1987, 1988, and 1989 for the total combined amount obligated for contracts and subcontracts entered into with— (1) small business concerns, including mass media, owned and controlled by socially and economically disadvantaged individ; uals (as defined by section 8(d) of the Small Business Act (15 r U.S.C. 637(d)) and regulations issued under such section), the majority of the earnings of which directly accrue to such individuals; (2) historically Black colleges and universities; or (3) minority institutions (as defined by the Secretary of Education pursuant to the General Education Provisions Act (20 U.S.C. 1221 et seq.)). (b) AMOUNT.—The requirements of subsection (a) for any fiscal year apply to the combined total of the following amounts: (1) Funds obligated for contracts entered into with the Department of Defense for such fiscal year for procurement. (2) Funds obligated for contracts entered into with the Department of Defense for such fiscal year for research, development, test, and evaluation. (3) Funds obligated for contracts entered into with the Department of Defense for such fiscal year for military construction. (4) Funds obligated for contracts entered into with the Department of Defense for operation and maintenance. (c) TECHNICAL ASSISTANCE.—To attain the goal of subsection (a), the Secretary of Defense shall provide technical assistance services to potential contractors described in subsection (a). Such technical assistance shall include information about the program, advice about Department of Defense procurement procedures, instruction in preparation of proposals, and other such assistance as the Secretary considers appropriate. If Department of Defense resources are inadequate to provide such assistance, the Secretary of Defense may enter into contracts with minority private sector entities with experience and expertise in the design, development, and delivery of technical assistance services to eligible individuals, business firms and institutions, defense acquisition agencies, and defense prime contractors. Department of Defense contracts with such entities shall be awarded annually, based upon, among other things, the number of minority small business concerns, historically Black colleges and universities, and minority institutions that each such entity brings into the program. (d) APPLICABILITY.—Subsection (a) does not apply— (1) to the extent to which the Secretary of Defense determines that compelling national security considerations require otherwise; and (2) if the Secretary making such a determination notifies Congress of such determination and the reasons for such determination.

10 USC 2301 note.

Disadvantaged persons.

Schools and colleges.

Research and development.

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 100 STAT. 3974

JliKS

,,

=***'*•' ^' 15 USC 637.

Schools and colleges. 3 ==. 3 ,,=

PUBLIC LAW 99-661—NOV. 14, 1986

(e) COMPETITIVE PROCEDURES AND ADVANCE PAYMENTS.—To attain the goal of subsection (a)— (1) The Secretary of Defense shall exercise his utmost authority, resourcefulness, and diligence, (2) To the extent practicable and when necessary to facilitate achievement of the 5 percent goal described in subsection (a), the Secretary of Defense shall make advance payments under section 2307 of title 10, United States Code, to contractors described in subsection (a). (3) To the extent practicable and when necessary to facilitate achievement of the 5 percent goal described in subsection (a), the Secretary of Defense may enter into contracts using less '''^than full and open competitive procedures (including awards under section 8(a) of the Small Business Act), but shall pay a price not exceeding fair market cost by more than 10 percent in payment per contract to contractors or subcontractors described in subsection (a). (4) To the extent practicable, the Secretary of Defense shall maximize the number of minority small business concerns, historically Black colleges and universities, and minority institutions participating in the program. if) PENALTIES FOR MISREPRESENTATION.—Whoever for the purpose of securing a contract or subcontract under subsection (a) misrepresents the status of any concern or person as a small business concern owned and controlled by a minority (as described in subsection (a)), shall be punished by a fine of not less than $10,000, or by imprisonment for not more than one year, or both. (g) ANNUAL REPORTS.—(1) Between May 1 and May 30 of each year, the Secretary of Defense shall submit to Congress a report on the progress toward meeting the goal of subsection (a) during the current fiscal year. (2) Between October 1 and October 10 of each year, the Secretary of Defense shall submit to Congress a final report on the progress of the Secretary with the goal of subsection (a) during the preceding fiscal year. (3) The reports described in paragraphs (1) and (2) shall each include the following: (A) A full explanation of any progress toward attaining the goal of subsection (a). (B) A plan to achieve the goal, if necessary. (C) A description of the percentage of contracts (actions), the total dollar amount (size of action), and the number of different entities relative to the attainment of the goal of subsection (a), separately for Black Americans, Native Americans, Hispanic Americans, Asian Pacific Americans, and other minorities. (4) The reports required under paragraph (2) shall also include the following: (A) The aggregate differential between the fair market price of all contracts awarded pursuant to subsection (e)(3) and the estimated fair market price of all such contracts had such contracts been entered into using full and open competitive procedures. (B) Detailed information on failure to perform in accordance with contract cost and technical requirements by entities awarded contracts pursuant to subsection (a). (C) An analysis of the impact that subsection (a) shall have on the ability of small business concerns not owned and controlled

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100 STAT. 3975

by socially and economically disadvantaged individuals to compete for contracts with the Department of Defense. (5) The first report required by this subsection shall be submitted between May 1 and May 30, 1987. (h) EFFECTIVE DATE.—This section applies to each of fiscal years 1987, 1988, and 1989. SEC. 1208. MANPOWER ESTIMATES FOR MAJOR DEFENSE ACQUISITION PROGRAMS (a) REQUIREMENT OF MANPOWER ESTIMATES.—Subsection (a) of

section 2434 of title 10, United States Code (as redesignated by section 101(a) of the Goldwater-Nichols Department of Defense Reorganization Act of 1986), is amended to read as follows:

''' '

"(a) REQUIREMENT FOR APPROVAL.—The Secretary of Defense may

not approve the full-scale engineering development, or the production and deployment, of a major defense acquisition program unless— "(1) an independent estimate of the cost of the program is first j.j submitted to (and considered by) the Secretary; and V "(2) the Secretary submits a manpower estimate of the program to the Committees on Armed Services of the Senate and the House of Representatives at least 90 days in advance of such approval.". (b) DEFINITIONS.—Subsection (b) of such section is amended— (1) by inserting "DEFINITIONS.—" before "In this section"; (2) by striking out "(1) 'Major" and inserting in lieu thereof "(1) The term 'major"; (3) by striking out "(2) 'Independent" and inserting in lieu m- thereof "(2) The term 'independent"; (4) by striking out "(3) 'Cost" and inserting in lieu thereof "(3) The term 'cost"; and (5) by adding at the end the following new paragraph: "(4) The term 'manpower estimate' means, with respect to a major defense acquisition program, an estimate of— "(A) the total number of personnel (including military, civilian, and contractor personnel), expressed both in total personnel and man-years, that will be required to operate, maintain, and support the program upon full operational deployment and to train personnel to operate, maintain, and support the program upon full operational deployment; te "(B) the increases in military and civilian personnel end strengths that will be required for full operational deployart ment of the program above the end strengths authorized in K the fiscal year in which such an estimate is submitted and the fiscal year or years in which such increases will be 8^ required; and "(C) the manner in which such a program would be operationally deployed if no increases in military and civilian end strengths were authorized above the strengths 0 authorized for the fiscal year in which such estimate is submitted.". (c) CLERICAL AMENDMENTS.—(1) The heading of such section is amended to read as follows:
 * i

•^''••

um

?..' ot

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 100 STAT. 3976

PUBLIC LAW 99-661—NOV. 14, 1986

"§2434. Independent cost requirements".

estimates;

operational

manpower

(2) The item relating to such section in the table of sections at the beginning of chapter 144 of such title (as enacted by section 101(a) of the Goldwater-Nichols Department of Defense Reorganization Act of 1986) is amended to read as follows: "2434. Independent cost estimates; operational manpower requirements.".

10 USC 2434 ^°^-

(d) EFFECTIVE DATE.—The amendments made by this section shall apply to approvals of full-scale engineering development and to approvals of production and deployment of major defense acquisition programs made after December 31, 1986. PART B—ECONOMY AND EFFICIENCY -

•»

SEC. 1221. INCREASE IN THRESHOLD APPLICABLE TO STATUTORY CONTRACTING-OUT PROCEDURES

Section 502(d) of the Department of Defense Authorization Act, 1981 (10 U.S.C. 2304 note) is amended by striking out "40 or fewer" and inserting in lieu thereof "45 or fewer". SEC. 1222. PROHIBITION ON CONTRACTS FOR PERFORMANCE OF FIREFIGHTING AND SECURITY FUNCTIONS

(a) FIREFIGHTING PROHIBITION.—(1) Chapter 159 of title 10, United States Code, is amended by adding at the end the following new section: 10 USC 2693.

"§ 2693. Prohibition on contracts for performance of flreflghting functions "(a) Except as provided in subsection (b), funds appropriated to the Department of Defense may not be obligated or expended for the purpose of entering into a contract for the performance of firefighting functions at any military installation or facility. "(b) The prohibition in subsection (a) does not apply— "(1) to a contract to be carried out at a location outside the United States (including its commonwealths, territories, and possessions) at which members of the armed forces would have to be used for the performance of the function described in subsection (a) at the expense of unit readiness; "(2) to a contract to be carried out on a Government-owned but privately operated installation; or i"(3) to a contract (or the renewal of a contract) for the ' performance of a function under contract or September 24, 1983.". (2) The table of sections at the beginning of such chapter is amended by adding at the end the following new item: "2693. Prohibition on contracts for performance of flreflghting functions.".

10 USC 2304 note,

O> ONE-YEAR SECURITY-GUARD PROHIBITION.—(1) Except as prot) vided in paragraph (2), funds appropriated to the Department of Defense may not be obligated or expended before October 1, 1987, for the purpose of entering into a contract for the performance of security-guard functions at any military installation or facility. (2) The prohibition in paragraph (1) does not apply—

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100 STAT. 3977

(A) to a contract to be carried out at a location outside the United States (including its commonwealths, territories, and possessions) at which military personnel would have to be used for the performance of the function described in paragraph (1) at the expense of unit readiness; (B) to a contract to be carried out on a Government-owned but privately operated installation; (C) to a contract (or the renewal of a contract) for the performance of a function under contract on September 24, 1983; or (D) to a contract for the performance of security-guard functions if (i) the requirement for the functions arises after the date of the enactment of this Act, and (ii) the Secretary of Defense determines the functions can be performed by contractor personnel without adversely affecting installation security, safety, or readiness. (c) REPEAL.—Section 1233 of the Department of Defense 10 USC 2304 Authorization Act, 1986 (Public Law 99-145, 99 Stat. 734), is hereby note, repealed. SEC. 1223. CONTRACTING OUT THE PERFORMANCE OF DEPARTMENT OF DEFENSE SUPPLY AND SERVICE FUNCTIONS

10 USC 2304 note.

(a) IN GENERAL.—Except as otherwise provided by law, the Secretary of Defense shall procure each supply or service necessary for or beneficial to the accomplishment of the authorized functions of the Department of Defense (other than functions which the Secretary of Defense determines must be performed by military or government personnel) from a source in the private sector if such a source can provide such supply or service to the Department at a cost that is lower (after including any cost differential required by law, executive order, or regulation) than the cost at which the Department can provide the same supply or service. (b) COST COMPARISIONS.—For the purpose of determining whether to contract with a source in the private sector for the performance of any Department of Defense function on the basis of a comparison of the costs of procuring supplies or services from such a source with the costs of providing the same supplies or services by the Department of Defense, the Secretary of Defense shall ensure that all costs considered, including the costs of quality assurance, technical monitoring of the performance of such function, liability insurance, employee retirement and disability benefits, and all other overhead costs, are realistic and fair. SEC. 1224. REPORTS ON SAVINGS OR COSTS FROM INCREASED USE OF CIVILIAN PERSONNEL

(a) IN GENERAL.—Whenever during a fiscal year to which this section applies the performance of any commercial or industrial type activity of the Department of Defense that is being performed by 50 or more employees of a private contractor is changed to perfv^rmance by civilian employees of the Department of Defense, the Secretary of Defense shall maintain data in which a comparison is made of the estimated costs of (1) continued performance of such activity by private contractor employees, and (2) performance of such activity by civilian employees of the Department of Defense. (b) SEMI-ANNUAL REPORT ON COSTS AND SAVINGS.—As soon as practicable after the end of the first six months, and after the end of the second six months, of a fiscal year to which this section applies, the Secretary of Defense shall submit to the Committees on Armed

10 USC 2304 note.

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 100 STAT. 3978

PUBLIC LAW 99-661—NOV. 14, 1986

Services of the Senate and House of Representatives a report showing the estimated savings or loss to the United States, during the preceding six month period, that is reflected in the data maintained under subsection (a). (c) APPLICABILITY OF SECTION,—This section shall apply only with respect to a fiscal year during which there is no statutory limit (commonly known as an "end strength") on the number of civilian employees that may be employed by the Department of Defense as of the last day of that fiscal year. TITLE XIII—GENERAL PROVISIONS PART A—FINANCIAL MATTERS

^5

SEC. 1301. TRANSFER AUTHORITY

«**-•' ^

< OjH^

(^^ AUTHORITY TO TRANSFER AUTHORIZATIONS.—(1) Upon determination by the Secretary of Defense that such action is necessary in the national interest, the Secretary may transfer amounts of authorizations made available to the Department of Defense in this division between any such authorizations (or any subdivisions thereof). Amounts of authorizations so transferred shall be merged with and be available for the same purposes as the authorization to which transferred. (2) The total amount of authorizations that the Secretary of Defense may transfer under the authority of this section may not exceed $2,000,000,000. (b) LIMITATIONS.—The authority provided by this section to transfer authorizations— (1) may only be used to provide authority for items that have a higher priority than the items from which authority is transferred; and (2) may not be used to provide authority for an item that has been denied authorization by Congress. (c) EFFECT ON OBLIGATION LIMITATIONS.—A transfer made under the authority of this section— (1) increases by the amount of the transfer the obligation limitation provided in this division on the account (or other amount) to which the transfer is made; and (2) decreases by the amount of the transfer the obligation ^ limitation provided in this division on the account (or other amount) from which the transfer is made. (d) NOTICE TO CONGRESS.—The Secretary of Defense shall c;. promptly notify Congress of transfers made under the authority of this section. SEC. 1302. AUTHORIZATION OF APPROPRIATIONS FOR CIVILIAN PAY AND CONTINGENCIES

There are authorized to be appropriated to the Department of Defense for fiscal year 1987, in addition to other amounts authorized to be appropriated in this Act, such sums as may be necessary— (1) for unbudgeted increases in fuel costs; ' (2) for unbudgeted increases as a result of inflation in the cost of activities authorized in this Act; and (3) for unbudgeted amounts for salary, pay, retirement, and other employee benefits authorized by law for civilian employees of the Department of Defense whose compensation is -'-- provided for by funds authorized to be appropriated in this Act.

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100 STAT. 3979

SEC. 1303. AUTHORIZATION OF APPROPRIATIONS FOR FOREIGN CURRENCY PURCHASES

There is hereby authorized to be appropriated for fiscal year 1987 the amount of $3,500,000 for the purchase of foreign currencies from the Treasury Department to pay expenses incurred in carrying out programs of the Department of Defense. SEC. 1304. SPECIAL DEFENSE ACQUISITION FUND

(a) INCREASE IN SIZE OF FUND.—Section 114(c) of title 10, United States Code (as redesignated by section 110(b) of the GoldwaterNichols Department of Defense Reorganization Act of 1986 (Public Law 99-433)), is amended by striking out "$1,000,000,000" and Ante, p. lOOl. inserting in lieu thereof "$1,070,000,000". (b) BUDGET ACT LIMITATION.—New spending authority (as defined 10 USC 114 note, in section 401(c)(2) of the Congressional Budget Act of 1974) provided 2 USC 651. by the amendment made by subsection (a) shall be effective for any fiscal year only to the extent or in such amounts as are provided in appropriation Acts. SEC. 1305. LIMITATION ON OBLIGATION OF FISCAL YEAR 1985 AND FISCAL YEAR 1986 FUNDS

(a) LIMITATIONS.—Subject to subsection (b), funds appropriated for fiscal years 1985 and 1986 and remaining available for obligation may not be obligated as follows: w

• Account

Aircraft Procurement, Army Missile Procurement, Army Procurement of Weapons and Tracked Combat Vehicles, Army Procurement of Ammunition, Army Other Procurement, Army Aircraft Procurement, Navy Weapons Procurement, Navy Shipbuilding and Conversion, Navy Other Procurement, Navy Procurement, Marine Corps Aircraft Procurement, Air Force Missile Procurement, Air Force Other Procurement, Air Force National Guard and Reserve Equipment Procurement, Defense Agencies Research, Development, Test and Evaluation, Army Research, Development, Test and Evaluation, Navy Research, Development, Test and Evaluation, Air Force Research, Development, Test and Evaluation, Defense Agencies Director of Test and Evaluation, Defense Military Construction, Army Military Construction, Navy Military Construction, Air Force Military Construction, Defense Agencies Military Construction, Army National Guard Military Construction, Air National Guard Military Construction, Army Reserve Military Construction, Naval Reserve Military Construction, Air Force Reserve North Atlantic Treaty Organization Infrastructure Family Housing, Army Family Housing, Navy and Marine Corps Family Housing, Air Force

r^ s^i ^i

Fiscal year Fiscal year 1985 1986 amount amount $21,000,000 $110,800,000 $21,400,000 $91,900,000 $43,900,000 $3,900,000 $15,600,000 $86,300,000 $48,800,000 $168,700,000 $16,100,000 $18,200,000 $212,500,000 $53,400,000 $19,100,000 $900,000 $4,000,000 $1,900,000 $2,800,000 $6,000,000

$211,400,000 $30,300,000 $123,600,000 $446,100,000 $215,600,000 $367,500,000 $117,100,000 $52,000,000 $714,500,000 $326,400,000 $181,100,000 $17,900,000 $31,000,000 $71,200,000 $71,900,000 $176,400,000

$1,400,000 $0 $6,800,000 $6,800,000 $6,300,000 $1,900,000 $0 $200,000 $0 $0 $200,000 $0 $900,000 $400,000 $2,400,000

$84,700,000 $700,000 $64,400,000 $45,200,000 $43,200,000 $5,300,000 $2,500,000 $3,300,000 $1,800,000 $1,200,000 $1,800,000 $8,000,000 $19,400,000 $8,800,000 $12,300,000

'^" - '• ' ' '•'

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 100 STAT. 3980

PUBLIC LAW 99-661—NOV. 14, 1986

(b) COORDINATION WITH RESCISSIONS.—A limitation contained in subsection (a) shall apply only to the extent, and in the amount by which, the amount of the limitation is greater than amounts rescinded (on an account-year basis) in laws appropriating funds for the Department of Defense for fiscal year 1987 that are enacted before December 31, 1986. SEC. 1306. APPLICABILITY OF LIMITATIONS ON FISCAL YEAR 1987 OBLIGATIONS

'''•i'

 * H*> «

•^'~" '

" '

The limitations in sections 101(b), 102(a)(2), 102(b)(2), 102(c)(1), 102(c)(2), 102(d)(2), 102(e)(2), 103(b), 104(b), 106(b), and 201(c)— (1) apply only to funds directly appropriated and funds transferred by provisions in appropriations Acts that specifically identify the funds transferred; and (2) do not apply to obligations from an account that would be reimbursed from another account or from a source outside the Government. SEC. 1307. REPORTS ON UNOBLIGATED BALANCES AND ON INFLATION BUDGETING

(a) PERIODIC REPORTS.—(1) Chapter 131 of title 10, United States Code, is amended by adding at the end the following new sections: 10 USC 2215.

"§2215. Reports on unobligated balances ^^ "(a) REQUIRED REPORTS.—The Secretary of Defense shall submit to the Committees on Armed Services of the Senate and House of Representatives reports (at the times specified under subsection (d)) containing an estimate of the amount of funds in each appropriation account of the Department of Defense that at the time of the report— "(1) is available for obligation; and "(2) is in excess of the amount needed to carry out the programs for which the funds were appropriated. "(b) MATTERS TO B E INCLUDED.—Each report under subsection (a) shall include, set forth separately for each account, estimates of amounts attributable to— . "(1) inflation savings; "(2) foreign currency savings; "(3) excess working capital fund cash; and "(4) all other savings. "(c) UNANTICIPATED COST INCREASES.—Each such report shall also identify unanticipated cost increases resulting from adverse economic trends. "(d) SUBMISSION OF REPORTS.—A report shall be submitted to Congress under this section not later than February 1, not later than April 25, and not later than August 15 of each year.

10 USC 2216.

"§ 2216. Annual report on budgeting for inflation "(a) REPORT ON VARIANCES.—(1) As part of the report required under section 2215 of this title to be submitted not later than February 1 of each year, the Secretary of Defense shall, in the case of each budget account, include a comparison of— "(A) the amounts appropriated to the Department of Defense to offset anticipated inflation, and "(B) the amounts estimated, as of the date the report is submitted, to be necessary to offset anticipated inflation.

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100 STAT. 3981

"(2) In making such estimate, the Secretary shall take into account actual inflation as of the date of such report. "(b) REQUIREMENT FOR EXPLANATION OF VARIANCES.—The Secretary shall include in the report, in the case of each budget account, the following: "(DA discussion of the reasons for any variance between the amounts appropriated to offset anticipated inflation and the • amounts estimated, as of the date of such report, to be necessary ^ to carry out the programs for which the appropriations were ' made. "(2) An identification of the sources of funds used or proposed • to be used to offset any deficiency in the amount appropriated to ^ offset anticipated inflation. "(3) A description of the disposition or proposed disposition of any amount by which the amount appropriated to offset anticipated inflation exceeds the amount needed for such purpose. "(c) FISCAL YEARS COVERED BY REPORT.—The comparison and discussion required by this section shall apply to funds available to or for the use of the Department of Defense in the fiscal year during which the report is submitted and in each of the two fiscal years preceding that fiscal year.". (2) The table of sections at the beginning of such chapter is amended by adding at the end the following new items: "2215. Reports on unobligated balances. "2216. Annual report on budgeting for inflation.".

(b) REPEAL.—Section 1407 of the Department of Defense Authorization Act, 1986 (Public Law 99-145; 99 Stat. 745), is repealed. (c) EFFECTIVE DATE.—(1) The first comparison and discussion under section 2216 of title 10, United States Code (as added by subsection (a)), shall be included in the first report under section 2215 of such title submitted in 1988 and shall include information relating only to fiscal year 1987. (2) The comparison and discussion included in the first report under section 2215 of such title submitted in 1989 shall include information relating only to fiscal years 1987 and 1988. SEC. 1308. REPORT ON DEFENSE BUDGETING AND CONTRACT PROCEDURES FOR INFLATION (a) REPORT ON ECONOMIC PRICE ADJUSTMENT CLAUSES.—The Secretary of Defense shall submit to Congress a report on the current practice of the Department of Defense of including in contracts entered into by the Department of Defense to carry out all or a portion of a program for which a Selected Acquisition Report is required an economic price adjustment clause to provide for adjustments in contract prices to compensate for inflation. (b) INFORMATION To BE INCLUDED IN REPORT.—The Secretary shall include in the report required by subsection (a) the following information: (1) The number of contracts that were entered into by the Department of Defense during fiscal year 1986 to carry out all or a portion of a program for which a Selected Acquisition Report was required for any quarter during such fiscal year and that included an economic price adjustment clause referred to in subsection (a).

10 USC 113 note. 10 USC 2215 ^^te. "'^ - "^*' Ante, p. 3980.

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 100 STAT. 3982

PUBLIC LAW 99-661—NOV. 14, 1986

,y~

•*o« m. [

Ante, p. 994.

(2) A description of the different types of such contracts that were entered into during such fiscal year that included an economic price adjustment clause referred to in subsection (a). (3) A description of the different types of economic price adjustment clauses used by the Department of Defense in such contracts and the reasons for using a particular type of such clause for a particular type of contract. (c) OTHER MATTERS TO B E REPORTED.—The Secretary shall also include in the report required by subsection (a) the following: (1) An explanation of the methodology used by the Department of Defense for determining the inflation index to be used 4 in calculating the inflation rate for various budget accounts of the Department of Defense and items within those accounts. (2) The feasibility of providing to Congress an annual report on actual rates of inflation experienced under contracts of the Department of Defense that are entered into to carry out all or a portion of a program for which a Selected Acquisition Report is required at any time and that include an economic price adjustment clause to provide adjustments in contract prices to compensate for inflation. (3) A discussion of the relationship between the rate of actual 01 inflation experienced under contracts referred to in clause (2) and the rate of inflation determined under the methodology referred to in clause (1) for determining the inflation index to be used in calculating the inflation rate for major weapon system accounts. (d) DEADLINE FOR REPORT.—The report required under this section shall be submitted not later than February 1, 1987. (e) DEFINITION.—For purposes of this section, the term "Selected Acquisition Report" means a report referred to in section 2432 of title 10, United States Code (as redesignated by section 101 of the Goldwater-Nichols Department of Defense Reorganization Act of 1986 (Public Law 99-433)). SEC. 1309. DEBT COLLECTION

(a) IN GENERAL.—Chapter 165 of title 10, United States Code, is amended by adding at the end the following new section: , (!k)ntracts. 10 USC 2780.

Reports.

"§2780. Debt collection "(a)(1) Subject to paragraph (2), the Secretary of Defense shall enter into one or more contracts with a person for collection services to recover indebtedness owed to the United States (arising out of activities related to Department of Defense) that is delinquent by more than three months. "(2) The authority of the Secretary to enter into a contract under this section for any fiscal year is subject to the availability of appropriations. "(3) Any such contract shall provide that the person submit to the Secretary a status report on the person's success in collecting such debts at least once each six months. Section 3718 of title 31 shall apply to any such contract, to the extent not inconsistent with this subsection. "(b) The Secretary shall disclose to consumer reporting agencies, in accordance with paragraph (1) of section 3711(f) of title 31, information concerning any debt described in subsection (a) of more than $100 that is delinquent by more than 31 days.". i^^u.

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100 STAT. 3983

(b) CLERICAL AMENDMENT.—The table of sections at the beginning of such chapter is amended by adding at the end the following new item: "2780. Debt collection.". SEC. 1310. CONTINGENT REDUCTION OF AUTHORIZATION OF APPROPRIATIONS

(a) CONTINGENCY.—Notwithstanding any other provision of this Act, the amounts authorized to be appropriated by this Act are reduced by the amounts specified in subsection (b) unless a law appropriating funds to or for the military functions of the Department of Defense for fiscal year 1987 provides— (1) that basic pay, basic allowance for quarters, and basic allowance for subsistence of members of the uniformed services are to be paid on the first day of the month following the month for which the pay and allowances are accrued; or (2) a reduction in progress payments paid to Department of Contracts. Defense contractors. (b) AUTHORIZATIONS TO B E REDUCED.—The amounts authorized to be appropriated in the title of this Act specified in the following table in the left-hand column are reduced by the amount specified opposite such title in the right-hand column: Authorizations in Which Reductions Are To Be Made Amount of Reduction ' Division A Title I(Procurement) $3,008,000,000 Title II (Research, Development, Test, and Evaluation) $1,174,000,000 Title III (Operations and Maintenance) $1,602,000,000 Division B Title VI $166,000,000 Division C Title I (Department of Energy National Security Programs) $167,000,000 (c) CONTINGENT REDUCTION IN PAY INCREASE.—Subject to

the

condition specified in subsection (a), the percentage of the increase in basic pay, basic allowance for quarters, and basic allowance for subsistence for members of the uniformed services, and the increase in pay for cadets and midshipmen, specified in sections 601(b) and 601(c), respectively, of this Act is hereby reduced from 3 percent to 2 percent.

37 USC 1009 note.

PART B—SPECIAL OPERATIONS MATTERS SEC. 1311. SPECIAL OPERATIONS FORCES

(a) ASSISTANT SECRETARY OF DEFENSE.—Section 136(b) of title 10, United States Code (as amended by section 106 of the GoldwaterNichols Department of Defense Reorganization Act of 1986), is Ante, p. 997. amended by adding at the end the following new paragraph: "(4) One of the Assistant Secretaries shall be the Assistant Secretary of Defense for Special Operations and Low Intensity Conflict. He shall have as his principal duty the overall supervision (including oversight of policy and resources) of special operations activities (as defined in section 167(j) of this title) and low intensity conflict activities of the Department of Defense.". (b) UNIFIED COMBATANT COMMAND.—(1) Chapter 6 of such title (as added by section 211 of the Goldwater-Nichols Department of Defense Reorganization Act of 1986 (Public Law 99-433)) is amended by Ante, p. lOil. adding at the end the following new section:

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 100 STAT. 3984 10 USC 167. Ante, p. 1012.

PUBLIC LAW 99-661—NOV. 14, 1986

"§ 167. Unified combatant command for special operations forces "(a) ESTABLISHMENT.—With the advice and assistance of the Chairman of the Joint Chiefs of Staff, the President, through the Secretary of Defense, shall establish under section 161 of this title a unified combatant command for special operations forces (hereinafter in this section referred to as the 'special operations command'). The principal function of the command is to prepare special operations forces to carry out assigned missions. "(b) ASSIGNMENT OF FORCES.—Unless otherwise directed by the

Secretary of Defense, all active and reserve special operations forces of the armed forces stationed in the United States shall be assigned to the special operations command. "(c) GRADE OF COMMANDER.—The commander of the special oper-

ations command shall hold the grade of general or, in the case of an officer of the Navy, admiral while serving in that position, without vacating his permanent grade. The commander of such command t;<> shall be appointed to that grade by the President, by and with the advice and consent of the Senate, for service in that position. "(d) COMMAND OF ACTIVITY OR MISSION.—(1) Unless otherwise directed by the President or the Secretary of Defense, a special operations activity or mission shall be conducted under the command of the commander of the unified combatant command in whose geographic area the activity or mission is to be conducted. "(2) The commander of the special operations command shall exercise command of a selected special operations mission if directed to do so by the President or the Secretary of Defense. "(e) AUTHORITY OF COMBATANT COMMANDER.—(1) In addition to Ante, p. 1013. the authority prescribed in section 164(c) of this title, the commander of the special operations command shall be responsible for, and shall have the authority to conduct, all affairs of such command .,., relating to special operations activities, including the following "(A) Developing strategy, doctrine, and tactics. "(B) Training assigned forces. "(C) Conducting specialized courses of instruction for commis5 ^ sioned and noncommissioned officers. "(D) Validating requirements. " >• "(E) Establishing priorities for requirements. "(F) Ensuring combat readiness. "(G) Developing and acquiring special operations-peculiar equipment and acquiring special operations-peculiar material, supplies, and services. "(H) Ensuring the interoperability of equipment and forces. ' ' -' t "(I) Formulating and submitting requirements for intelligence support. "(J) Monitoring the promotions, assignments, retention, training, and professional military education of special operations forces officers. "(2) The commander of such command shall be responsible for monitoring the preparedness of special operations forces assigned to other unified combatant commands to carry out assigned missions. "(f) BUDGET.—In addition to the activities of a combatant command for which funding may be requested under section 166(b) of Ante, p. 1016. this title, the budget proposal of the special operations command shall include requests for funding for— , v - #.<,.—:.,. tj..
 * ,,,^.j functions:

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 PUBLIC LAW 99-661—NOV. 14, 1986

100 STAT. 3985

"(1) development and acquisition of special operationspeculiar equipment; and "(2) acquisition of other material, supplies, or services that are peculiar to special operations activities. "(g) INTELLIGENCE AND SPECIAL ACTIVITIES.—This section does not constitute authority to conduct any activity which, if carried out as an intelligence activity by the Department of Defense, would require— "(1) a finding under section 662 of the Foreign Assistance Act . of 1961 (22 U.S.C. 2422); or "(2) a notice to the Select Committee on Intelligence of the Senate and the Permanent Select Committee on Intelligence of the House of Representatives under section 501(a)(1) of the National Security Act of 1947 (50 U.S.C. 413). "(h) REGULATIONS.—The Secretary of Defense shall prescribe regulations for the activities of the special operations command. Such regulations shall include authorization for the commander of such command to provide for operational security of special operations forces and activities. "(i) IDENTIFICATION OF SPECIAL OPERATIONS FORCES.—(1) Subject to

paragraph (2), for the purposes of this section special operations forces are those forces of the armed forces that— •;; "(A) are identified as core forces or as augmenting forces in the Joint Chiefs of Staff Joint Strategic Capabilities Plan, Annex E, dated December 17, 1985; "(B) are described in the Terms of Reference and Conceptual Operations Plan for the Joint Special Operations Command, as in effect on April 1, 1986; or "(C) are designated as special operations forces by the Secretary of Defense. "(2) The Secretary of Defense, after consulting with the Chairman of the Joint Chiefs of Staff and the commander of the special operations command, may direct that any force included within the description in paragraph (1)(A) or (1)(B) shall not be considered as a special operations force for the purposes of this section. "(j) SPECIAL OPERATIONS ACTIVITIES.—For purposes of this section, special operations activities include each of the following insofar as it relates to special operations: "(1) Direct action. "(2) Strategic reconnaissance. "(3) Unconventional warfare. "(4) Foreign internal defense. "(5) Civil affairs. , "(6) Psychological operations. " "(7) Counterterrorism. "(8) Humanitarian assistance. 1; - "(9) Theater search and rescue. "(10) Such other activities as may be specified by the President or the Secretary of Defense,". (2) The table of sections at the beginning of such chapter is amended by adding at the end the following new item:

• '

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»

"167. Unified combatant command for special operations forces.".

(c) MAJOR FORCE PROGRAM CATEGORY.—The Secretary of Defense shall create for the special operations forces a major force program category for the Five-Year Defense Plan of the Department of

lo use 167 note,

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 100 STAT. 3986

PUBLIC LAW 99-661—NOV. 14, 1986

Defense. The Assistant Secretary of Defense for Special Operations and Low Intensity Conflict, with the advice and assistance of the commander of the special operations command, shall provide overall supervision of the preparation and justification of program recommendations and budget proposals to be included in such major force program category. (d) PROGRAM AND BUDGET EXECUTION.—To the extent that there is authority to revise programs and budgets approved by Congress for special operations forces, such authority may be exercised only by the Secretary of Defense, after consulting with the commander of the special operations command. (e) GRADE FOR COMMANDERS OF CERTAIN AREA SPECIAL OPERATIONS

COMMANDS.—The commander of the special operations command of the United States European Command, the United States Pacific Command, and any other unified combatant command that the Secretary of Defense may designate for the purposes of this section shall be of general or flag officer grade. (f) BOARD FOR LOW INTENSITY CONFLICT.—Section 101 of the Na-

President of U.S.

tional Security Act of 1947 (50 U.S.C. 402) is amended by adding at the end the following new subsection: "(f) The President shall establish within the National Security Council a board to be known as the 'Board for Low Intensity Conflict'. The principal function of the board shall be to coordinate the policies of the United States for low intensity conflict.". (g) DEPUTY ASSISTANT TO THE PRESIDENT FOR NATIONAL SECURITY AFFAIRS FOR LOW INTENSITY CONFLICT.—It is the sense of Congress

that the President should designate within the Executive Office of the President a Deputy Assistant to the President for National Security Affairs to be the Deputy Assistant for Low Intensity Conflict. (h) REPORTS.—(1) Not later than 120 days after the date of the enactment of this Act, the Secretary of Defense shall submit to Congress a report on the plans of the Secretary for implementation of this section, including a description of the progress made on such implementation. 10 USC 167 note. (2) Not later than one year after the date of the enactment of this Act, the President shall transmit to Congress a report on the capabilities of the United States to conduct special operations and engage in low intensity conflicts. The report shall include a description of the following: (A) Deficiencies in such capabilities. (B) Actions being taken throughout the executive branch to correct such deficiencies. (C) The principal low intensity conflict threats to the interests of the United States. (D) The actions taken and to be taken to implement this section. 10 USC 167 note. (i) EFFECTIVE DATE.—Section 167 of title 10, United States Code (as added by subsection (b)), shall be implemented not later than 180 days after the date of the enactment of this Act. (j) FUNDING FOR FISCAL YEAR 1987.—The Secretary of Defense

•'

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may spend unobligated funds appropriated to the Department of Defense for fiscal years before fiscal year 1987 in such sums as necessary in order to carry out this section and section 167 of title 10, United States Code (as added by subsection (b)), during fiscal year 1987. •• -••« •- -'^--^i- -.'-^.i-^.-v., --,:5 4•-:^ff-J

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100 STAT. 3987

SEC. 1312. SPECIAL OPERATIONS AIRLIFT

(a) MODIFICATION OF EXISTING AIRCRAFT.—Of the funds appropriated for fiscal year 1987 for modification of Air Force aircraft, $106,500,000 shall be available only for the modification of CH/HH-53 airframes to the "PAVE LOW" enhanced configuration. (b) DEVELOPMENT OF HELICOPTER VARIANTS.—(1) The Secretary of

the Army shall proceed, through full and open competition, with development of an MH-47 variant of the CH-47 helicopter. The Secretary shall be designated as the executive agent for a joint services development program for a special operations/combat rescue variant of the HH/MH-60 helicopter. (2) In conducting such development under paragraph (1), the Secretary shall ensure— (A) that there is developed one baseline H-60 aircraft capable of operations from both land and shipboard; (B) that there is maximum practicable logistics commonality Contract. among those aircraft to be procured by either the Army, Navy, or Air Force and that the contract for acquisition of the joint services aircraft assures maximum economic-order quantity benefits to the United States; and (C) that there is maximum practicable commonality between the avionics architecture selected for the HH/MH-60 variant aircraft and the MH-47 variant aircraft. (3) Upon successful development and test of the MH-47 aircraft, Report. the Secretary of Defense shall submit to the Committees on Armed Services of the Senate and the House of Representatives a report on such development and testing. Such report shall include the Secretary's recommendation as to whether the replacement for the HH-53 aircraft as the long-range, strategic rotary-wing aircraft for the Armed Forces should be the MH-47 aircraft or a special operations/combat rescue variant of the CV-22A aircraft (or another advanced-technology aircraft). If the recommendation of the Secretary is in favor of the CV-22A aircraft (or another advancedtechnology aircraft), the Secretary of the Army may justify in the budget planning process procurement of the MH-47 aircraft as necessary to fill immediately the heavy-lift mission requirements of the Special Operations Aviation Brigade of the Army. (4) Upon successful development and test of the HH/MH-60 Report. helicopter under paragraph (1), the Secretary of Defense shall submit to the Committees on Armed Services of the Senate and House of Representatives a report containing a detailed acquisition strategy for such helicopter. Such acquisition strategy shall— (A) provide for timely and adequate procurement of the HH/MH-60 aircraft for the Special Operations Aviation Brigade of the Army and for aviation detachments assigned to individual Special Forces groups; (B) provide for timely and adequate procurement of the HH/MH-60 aircraft for support of naval special warfare units and for fleet combat search and rescue missions; and (C) provide for timely and adequate replacement for theater special operations/combat search and rescue HH-3 helicopters of the Air Force with the HH/MH-60 helicopter. (c) REQUIREMENTS OF SPECIAL OPERATIONS COMMANDER.—(1)

The

commander of the unified combatant command established pursuant to section 167 of title 10, United States Code (as added by section

nnq»>i

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 100 STAT. 3988

PUBLIC LAW 99-661—NOV. 14, 1986

1311), shall develop a plan to meet the immediate strategic special operations airlift requirements. (2) The Secretary of Defense, after consultation with the commander of such command, shall submit to Congress a report, no later than June 1, 1987, setting forth the funding requirements necessary to implement during fiscal year 1988 the plan developed under paragraph (1).

Reports.

PART C—AUTHORIZATION OF PAYMENT OF CERTAIN EXPENSES WITH Jetffnts ' RESPECT TO DEVELOPING COUNTRIES , SEC. 1321. AUTHORITY TO PAY EXPENSES OF DEVELOPING COUNTRIES FOR PARTICIPATION IN COMBINED MILITARY EXERCISES

10 USC 2010.
 * >f»^-.

•'•^\

Reports.

Regulations. '

(a) AUTHORITY TO PAY EXPENSES.—(1) Chapter 101 of title 10, United States Code, is amended by adding at the end the following new section: "§ 2010. Participation of developing countries in combined exercises: payment of incremental expenses "(a) The Secretary of Defense, after consultation with the Secretary of State, may pay the incremental expenses of a developing country that are incurred by that country as the direct result of participation in a bilateral or multilateral military exercise if— "(1) the exercise is undertaken primarily to enhance the security interests of the United States; and "(2) the Secretary of Defense determines that the participation by such country is necessary to the achievement of the fundamental objectives of the exercise and that those objectives cannot be achieved unless the United States provides the incremental expenses incurred by such country. '*(b) The Secretary of Defense shall submit to Congress a report each year, not later than March 1, containing— "(Da list of the developing countries for which expenses have been paid by the United States under this section during the preceding year; and "(2) the amounts expended on behalf of each government. "(c) The Secretary of Defense shall establish by regulation such accounting procedures as may be necessary to ensure that funds expended under this section are properly expended. "(d) In this section, the term 'incremental expenses' means the reasonable and proper cost of the goods and services that are consumed by a developing country as a direct result of that country's participation in a bilateral or multilateral military exercise with the United States, including rations, fuel, training ammunition, and transportation. Such term does not include pay, allowances, and other normal costs of such country's personnel. "(e) Not more than $13,400,000 may be obligated or expended for the purposes of this section during fiscal years 1987 through 1991.". (2) The table of sections at the beginning of such chapter is amended by adding at the end the following new item: "2010. Participation of developing countries in combined exercises: payment of incremental expenses.".

(b) EXPENDITURE LIMITATION FOR FISCAL YEAR 1987.—Not more than $1,600,000 may be obligated or expended for the purposes of

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100 STAT. 3989

section 2010 of title 10, United States Code (as added by subsection (a)), during fiscal year 1987. SEC. 1322. AUTHORITY TO PAY CERTAIN EXPENSES OF DEFENSE PERSONNEL OF DEVELOPING COUNTRIES (a) IN GENERAL.—Chapter 53 of title 10, United States Code, is amended by inserting after section 1050 the following new section: "§ 1051. Bilateral or regional cooperation programs: payment of personnel expenses "(a) The Secretary of Defense may pay the travel, subsistence, and similar personal expenses of defense personnel of developing countries in connection with the attendance of such personnel at a bilateral or regional conference, seminar, or similar meeting if the Secretary determines that the attendance of such personnel at such conference, seminar, or similar meeting is in the national security interests of the United States. "(b)(1) Except as provided in paragraph (2), expenses authorized to be paid under subsection (a) may be paid on behalf of personnel from a developing country only in connection with travel within the area of responsibility of the unified combatant command (as such term is defined in section 161(c) of this title) in which the developing country is located. "(2) In a case in which the headquarters of a unified combatant command is located within the United States, expenses authorized to be paid under subsection (a) may be paid in connection with travel of personnel to the United States to attend a bilateral or regional conference, seminar, or similar meeting. "(3) Expenses authorized to be paid under subsection (a) may not, in the case of any individual, exceed the amount that would be paid under chapter 7 of title 37 to a member of the armed forces of the United States (of a comparable grade) for authorized travel of a similar nature. "(c) In addition to the expenses authorized to be paid under subsection (a), the Secretary of Defense may pay such other expenses in connection with any such conference, seminar, or similar meeting as the Secretary considers in the national security interests of the United States. "(d) The authority to pay expenses under this section is in addition to the authority to pay certain expenses and compensation of officers and students of Latin American countries under section 1050 of this title. "(e) Not later than March 1 each year, the Secretary of Defense shall submit to Congress a report containing— "(1) a list of the developing countries for which expenses have been paid under this section during the preceding fiscal yearand "(2) the amount paid by the United States in the Case of each such country. "(f) During each of fiscal years 1987, 1988, and 1989, not more than $800,000 may be obligated or expended under this section. "(g) The authority of the Secretary of Defense under this section shall expire on September 30, 1989.". (b) CLERICAL AMENDMENT.—The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 1050 the following new item:

10 USC 1051. Defense and national security.

Ante, p. 1012.

37 USC 401 et

10 USC 1050. Reports.

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 100 STAT. 3990

PUBLIC LAW 99-661—NOV. 14, 1986

"1051. Bilateral or regional cooperation programs: payment of personnel expenses.".

w.xii«.'< -n^':..

PART D—MISCELLANEOUS REPORTS

SEC. 1331. ARMY NATIONAL GUARD REPORTING

.,

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^'^•'•

The Secretary of Defense shall require the Chief of the National Guard Bureau to develop and implement procedures to monitor the backlog of maintenance and repair projects of Army National Guard armories. SEC. 1332. SUBMARINE OVERHAUL STUDY

(a) STUDY.—The Secretary of the Navy shall conduct a detailed study and investigation on the desirability and feasibility of applying production line techniques for the overhaul of Los Angeles-class submarines. (b) REPORT.—Not later than May 1, 1987, the Secretary shall submit to Congress a report on the results of such study and investigation, together with such comments and recommendations as the Secretary considers appropriate. SEC. 1333. REPORT ON LANDING AREA FOR AV-8B HARRIER AIRCRAFT ON IOWA-CLASS BATTLESHIP

Not later than six months after the date of the enactment of this Act, the Secretary of Defense shall submit to Congress a report on the feasibility and possible benefits of removing the rear turret from an Iowa-class battleship to create a landing area for AV-8B Harrier aircraft. SEC. 1334. REPORT ON CLEANUP OF NATIONAL PRESTO INDUSTRIES

Wisconsin. ^' ^

The Secretary of Defense shall investigate and report to the Committees on Armed Services of the Senate and the House of Representatives by January 1, 1987, on the sources, dates of origin, and responsibility for hazardous waste contamination at the National Presto Industries Plant near Eau Claire, Wisconsin. '*

PART E—TECHNICAL AND CLERICAL AMENDMENTS

SEC. 1341. TECHNICAL CORRECTION TO DEPARTMENT OF DEFENSE AUTHORIZATION ACT, 1985

37 USC 403 note.

(a) CORRECTION OF BAQ SAVE-PAY.—Section 602(a)(2) of the Department of Defense Authorization Act, 1985 (Public Law 98-525; 98 Stat. 2534), is amended— '"^' "" ", (1) by striking out "During the period" and all that follows through "paragraph (1)" and inserting in lieu thereof "(A) During the period described in subparagraph (B)"; (2) by striking out "on or after January 1, 1985, and before the date of any such change" and inserting in lieu thereof "during such period"; and (3) by adding at the end the following: "(B) The period referred to in subparagraph (A) is the period beginning on January 1, 1985, and ending on the effective date of a change made by law in the rates of basic allowance for quarters that increases the rates for such allowance to a level not less than 7 percent greater than the rates in effect on January 1, 1985.". 37 USC 403 note. (b) EFFECTIVE DATE.—The amendments made by subsection (a) shall take effect on October 1, 1986, or the date of the enactment of this Act, whichever is later.

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100 STAT. 3991

1342. TECHNICAL CORRECTIONS TO PROVISIONS ENACTED BY DEPARTMENT OF DEFENSE AUTHORIZATION ACT, 1986

(a) AVIATION PAY.—Paragraph (1) of section 301(a) of title 37, United States Code (as amended by section 635(a)(1)(A) of the Department of Defense Authorization Act, 1986 (Public Law 99-145; 99 Stat. 647)), is amended to read as follows: "(1) involving frequent and regular participation in aerial flight as a crew member, as determined by the Secretary concerned, except for a member who is entitled to incentive pay under section 301a of this title;". (b) CLARIFICATION OF V H A SAVE PAY.—Section 602(D(2) of the Department of Defense Authorization Act, 1985 (Public Law 98-525) (as amended by section 603(b) of the Department of Defense Authorization Act, 1986 (99 Stat. 637)), is amended— (1) by striking out "departs that station as a result o f in subparagraph (B)(i) and inserting in lieu thereof "changes residence in conjunction with"; and (2) in subparagraph (C)— (A) by striking out "Any member" and inserting in lieu ^ thereof "A member"; and (B) by striking out "under paragraph" and all that follows and inserting in lieu thereof ", except that such a member serving an unaccompanied tour of duty in Alaska ' or Hawaii may be paid a variable housing allowance based on the residence of the member's dependents in another State.". (c) DENTAL OFFICERS' SAVE PAY.—Section 639(d) of the Department of Defense Authorization Act, 1986 (99 Stat. 651), is amended— (1) by striking out "shall be entitled to such pay in an annual amount that is not less than" and inserting in lieu thereof "may (notwithstanding the provisions of such section and in the discretion of the Secretary concerned) be paid such pay, in order to prevent inequities, in an annual amount equal to"; and (2) by striking out "was entitled on September 30, 1985." and inserting in lieu thereof "would have been entitled on September 30, 1985, in accordance with the status of the officer (as determined by the Secretary concerned) during the period for which the pay is paid. Notwithstanding the preceding sentence, an officer may not be paid special pay by reason of this paragraph in an amount greater than the amount of special pay to which the officer was entitled under such sections on September 30, 1985.".

" ^

^.

37 USC 403a note.

Alaska, Hawaii,

37 USC 302b note,

(d) RESERVE MEDICAL OFFICERS' SPECIAL PAY.—Subparagraph (B) of

section 302(h)(1) of title 37, United States Code (as amended by section 640 of the Department of Defense Authorization Act, 1986 (99 Stat. 652)), is amended to read as follows: "(B) who is on active duty under a call or order to active duty for a period of less than one year;". (e) REPEAL OF DUPLICATIVE AMENDMENTS.—Subsection (a) of section 1102 of the Department of Defense Authorization Act, 1986 (99 Stat. 708), and the amendments made by that subsection are repealed, and the Arms Export Control Act shall apply as if that subsection had not been enacted.

22 USC 2751 note.

(f) CORRECTION OF SECTION REFERENCE.—Section 719(h)(1) of the

50 USC app.

22 USC 2752,
 * [^2 note^ 2753,

Defense Production Act of 1950 (50 U.S.C. App. 2169(h)(1)), as 2168.

71_iq4 0 - 8q - 18: CJL. 3 Part B

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