DEPARTMENT OF DEFENSE APPROPRIATION BILL, 1982
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REGULATION
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[Committee Print]
NOTICE This is a draft only, subject to chance
until approved by the full Committee
Calendar No. 000
97TH CovoRESS 1 SENATE J REPORT
1st Session J 1 No. 97-000
DEPARTMENT OF DEFENSE APPROPRIATION BILL, 1982
NOVEMBER 00 (legislative day, NOVEMBER 00), 1981.-Ordered to be printed
Mr. STEVENS, from the Committee on Appropriations,
submitted the following
REPORT
[To accompany H.R. 0000]
The Committee on Appropriations, to which was referred the bill
(H.R. 0000) making appropriations for the Department of Defense for
the fiscal year ending September 30, 1982, and for other purposes,
reports the same to the Senate with various amendments. Information is
herewith presented relative to the changes made:
Amount of bill as passed House (new obligational
authority) ............................................................................ $194,532,083,000
Amount of increase recommended by Senate
Committee .......................................................................... 13,827,546,000
Total of bill as reported to Senate ......................... 208,359,629,000
Amount of 1982 budget estimate (new obligational
authority) ............................................................................ 200,878,234,000
Amount of 1981 appropriations ......................................... 171,350,899,000
The bill as reported to the Senate:
Over the fiscal year 1982 budget estimate ................ 7,481,395,000
Over appropriations for fiscal year 1981 ................... 37,008,730,000
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CONTENTS
General discussion:
Purpose of the bill ..........................................................................................................
Significant items and major changes in House bill .................................................
Hearings ............................................................................................................................
Summary of bill ..............................................................................................................
Fiscal year 1981 budget amendments .........................................................................
Relationship to authorization ........................................................................................
Compliance with paragraph 8, rule XVI, Standing Rules of the Senate............
Compliance with section 308 of the Budget Control Act ......................................
Reprograming of appropriated funds ..........................................................................
TITLE I-MILITARY PERSONNEL
General discussion and Committee recommendations .....................................................
Military personnel, Army ......................................................................................................
Military personnel, Navy .......................................................................................................
Military personnel, Marine Corps ........................................................................................
Military personnel, Air Force ...............................................................................................
Reserve personnel, Army ........................................................................
...............................
Reserve personnel, Navy .......................................................................................................
Reserve personnel, Marine Corps ........................................................................................
Reserve personnel, Air Force ...............................................................................................
National Guard personnel, Army ........................................................................................
National Guard personnel, Air Force .................................................................................
TITLE II-RETIRED MILITARY PERSONNEL
Retired pay, Defense ..............................................................................................................
TITLE III-OPERATION AND MAINTENANCE
General discussion and Committee recommendations .....................................................
Operation and maintenance, Army ......................................................................................
Operation and maintenance, Navy ......................................................................................
Operation and maintenance, Marine Corps .....................................................................
Operation and maintenance, Air Force ..............................................................................
Air Force Stock Fund ............................................................................................................
Operation and maintenance, Defense Agencies ................................................................
Defense Stock Fund ...............................................................................................................
Operation and maintenance, Army Reserve ......................................................................
Operation and maintenance, Navy Reserve .......................................................................
Operation and maintenance, Marine Corps Reserve .......................................................
Operation and maintenance, Air Force Reserve ...............................................................
Operation and maintenance, Army National Guard ........................................................
Operation and maintenance, Air National Guard ............................................................
National Board for the Promotion of Rifle Practice, Army ..........................................
Claims, Defense .......................................................................................................................
Court of Military Appeals .....................................................................................................
TITLE IV-PROCUREMENT
Aircraft procurement, Army ..................................................................................................
Missile procurement, Army ........................................
...........................................................
Procurement of weapons and tracked combat vehicles, Army ......................................
Procurement of ammunition, Army ....................................................................................
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Other procurement, Army .....................................................................................................
Aircraft procurement, Navy .......... ........................................................................................
Weapons procurement, Navy .........................
Shipbuilding and Conversion, Navy ....................................................................................
Other procurement, Navv ......................................................................................................
Procurement, Marine Corps ..................................................................................................
Aircraft procurement, Air Force ..........................................................................................
Missile procurement, Air Force ...........................................................................................
Other procurement, Air Force ..............................................................................................
Procurement, Defense Agencies ...........................................................................................
TITLE V-RESEARCH, DEVELOPMENT, TEST AND EVALUATION
General discussion ...................................................................................................................
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 ........................................................................
TITLE VI-SPECIAL FOREIGN CURRENCY PROGRAM
Special foreign currency program ........................................................................................
TITLE VII-GENERAL PROVISIONS
General provisions ..................................................................................................................
TITLE VIII-RELATED AGENCIES
Intelligence community staff .................................................................................................
Payment to the CIA retirement and disability system fund ..........................................
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BACKGROUND
PURPOSE OF THE BILL
The purpose of this bill is to make appropriations for the military
functions of the Department of Defense for the period October 1, 1981
through September 30, 1982. Functional areas include the pay, al-
lowances and support of military personnel, operation and maintenance
of the forces, procurement of equipment and systems, and research,
development, test and evaluation. Appropriations for military assistance,
military construction, family housing and civil defense are provided in
other bills.
The Subcommittee on Department of Defense Appropriations began
hearings on the fiscal year 1982 budget request on March 9, 1981, and
concluded them on October 28, 1981, after 32 separate sessions. The
subcommittee heard testimony from representatives of the Department
of Defense, other Federal agencies, and from the general public.
Approximately 8,000 pages of transcript were taken, the unclassified por-
tions of which constitute the six-volume public record of testimony on
this budget request.
SUMMARY OF BILL
The Committee considered a total fiscal year 1982 budget request of
$200,878,234,000 for the military functions of the Department of
Defense, excluding military assistance, military construction, family hous-
ing and civil defense.
FIscAL YEAR 1982 BUDGET AIMEND t rs
Since submission of the fiscal year 1982 budget in January by
President Carter, the Reagan administration has transmitted two major
budget amendments to the Congress. The first amendment was sub-
mitted on March 10, 1981 (printed as H. Doc. 97-29). This amendment
requested an additional $25.1 billion in new budget authority above the
original fiscal year 1982 request. These additional funds were requested
to finance a significant expansion in the military budget with emphasis
on readiness and modernization.
The second major budget amendment was submitted to the Congress
on October 15, 1981 (printed as H. Doc. 97-101). This amendment
reduced $7.29 billion from the request.
The Committee considered both of these budget amendments and
three smaller amendments along with the original fiscal year 1982 re-
quest.
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RELATIONSHIP To AUTHORIZATION
Appropriations for the procurement of aircraft, missiles, naval vessels,
tracked combat vehicles, torpedoes, and other weapons, operations and
maintenance expenses, and for research, development test and evalua-
tion require annual authorization pursuant to the provisions of section
412(b) of Public Law 86-149, as amended.
As previously noted, the total fiscal year 1982 budget request con-
sidered by the Committee was $200,878,234,000. Of this amount,
$130,567,451,000 or 65 percent required authorization. The following
table depicts these amounts and compares them with levels authorized
in the Department of Defense Appropriation Authorization Act, 1982.
[In thousands of dollars]
Budget Committee
estimate recommendation Change
Procurement ............................................... $47,660,498 $48,000,598 +$340,100
R.D.T. & E .................................................. 20,319,388 20,402,030 +82,642
Operations and maintenance ................... 62,161,252 62,161,740 +488
Special foreign currency program........... 3,083 3,083
.......................
Total ................................................. 130,144,221 130,567,451 + 423,230
COMPLIANCE Wrrx PARAGRAPH 8, RULE XVI, STANDING RULES
OF THE SENATE
The recommendations of the Committee include amendments which
are not made to carry out provisions of existing law, and are brought to
the attention of the Senate in accordance with rule XVI of the Standing
Rules of the Senate. The amendments are:
1. A new general provision which states that, none of the funds made
available by this Act shall be used in any way for the leasing in the
United States of military aircraft or vehicles for which suitable aircraft or
vehicles are commercially available in the private sector.
2. A new general provision which states that, during the current fiscal
year, for the purpose of conducting a test to evaluate a capitation ap-
proach to providing medical care and to that end for the purpose of
providing adequate funds in Department of Defense Medical Regions 1
and 7 for medical care, including the expenses of the Civilian Health and
Medical Program of the Uniformed Services, funds available to the
Department of Defense in the appropriation "Operation and
Maintenance, Defense Agencies" for expenses of the Civilian Health and
Medical Program of the Uniformed Services may be transferred to ap-
propriations available to the military departments for operation and main-
tenance and funds available to the military departments for operation and
maintenance my be transferred between such appropriations: Provided
That funds transferred pursuant to this authority shall be merged with
and made available for the same purpose as the appropriation to which
transferred Provided further, That the Secretary of Defense shall notify
the Congress promptly of all transfers made pursuant to this authority:
Provided further, That transfer authority provided herein shall be in addi-
tion to that provided in section 733 of this Act.
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3. A new provision which states that, not to exceed $1,700,000 of the
funds available to the Department of Defense for Reserve Personnel shall
be available for transfer to appropriations available to the Federal
Emergency Management Agency.
4. Under Shipbuilding and Conversion, Navy: To remain available
for obligation until September 30, 46 1988: Provided, That of the ap-
propriation for "Shipbuilding and Conversion, Navy, " that expired for
obligation on September 30, 1981, $119,000,000 shall remain available
for obligation until September 30, 1983
For acquisition, construction and improvement, Coast Guard,
$300,000,000, to be transferred to the Coast Guard: "Acquisition, Con-
struction and Improvements";
RAPID DEPLOYMENT Jor cr TASK FORCE
The creation of the rapid deployment joint task force (RDJTF) was
an important step in revitalizing U.S. force projection capabilities.
Given the importance of the Persian Gulf Region, the efforts of the
RDJTFF have been formally directed to that region. The Committee is
concerned, however, about the absence of an organized effort to plan
and provide for possible power projection requirements in other parts
of the world which are also critical to U.S. interests, including the
Caribbean. The Committee is also concerned about the present com-
mand and control relationships of the RDJTF with the National
Command Authority as well as the joint nature of the task force.
The Committee views with favor the Secretary of Defense's announce-
ment on April 24, 1981, that the RDJTF should evolve within several
years into a separate unified command with its own geographic respon-
sibilities, service components, forces, intelligence, communications, logis-
tics facilities and other support elements. While the creation of a
separate unified command in the future may solve current deficiencies,
the Committee remains concerhed about what command and control
relationships will apply in the interim.
To date, the joint task force nature of the present RDJTF has failed
to create both plans and organization necessary to meet the Lhreats
which the United States may face in Third World areas throughout the
1980's. However, the Committee notes that the traditional role of the
U.S. Marine Corps and its current force structure have been designed
as one appropriate to quick response to crises around the world.
The Committee, therefore, directs the Secretary of Defense to desig-
nate the U.S. Marine Corps as the lead service for command and plan-
ning of the RDJTF missions. It is the belief of the Committee that the
Marine Corps with Navy support is most capable of meeting the mis-
sions of the RDJTF. The Secretary of Defense is also directed to
provide the Marine Corps and the Navy with the equipment, logistical
support, and authority necessary to meet their RDJTF mission.
DEPARTMENT OF DEFENSE EFFICIENCY AND COST SAVINGS
The Committee supports the need for increased defense spending to
meet the threats to U.S. national security interests in the 1980's. The
major increase in Soviet defense spending throughout the 1970's as well
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as Sovient adventurism in Africa, Asia, and Latin America pose a
serious threat to U.S. security interests throughout the world.
The Committee is also committed to the reduction of overall Federal
spending to meet the goals of a balanced budget as well as a sound
economy. U.S. national security must be based on a strong economy.
The Committee, therefore, views with favor the efforts of the
Department of Defense to combat waste, fraud, and abuse within the
Department as well as to undertake efforts to make defense programs
more efficient.
The Congress has provided the Department of Defense with the
necessary legislation to use multiyear funding where appropriate. The
Committee intends to recommend funds for multiyear funding in those
programs where there is low technological risk and where cost savings
can be realized. Further, the Department is urged to revise DOD
Directive 7200.4 to accommodate the new legislation providing
authority for multiyear funding.
It is the Committee's understanding that many of the reforms
proposed by the Deputy Secretary of Defense can be implemented inter-
nally within the Department. The Committee urges the Department to
implement these reforms as quickly as possible including, but not
limited to, increased use of firm-fixed price contracting, increased use
of past performance in source selection, greater competition in both
R. & D. and procurement stages of programs, and increased R. & D.
funding and competition at the lower-tiered producer level.
The Committee is also concerned about the high cost of new
programs and directs the Department to provide to the Committee a
design-to-cost analysis for all new procurement items. While U.S.
strength lies in its technology, the use of high technology can result in
cost inefficiency when inappropriately. utilized.
The Committee also directs the Secretary of Defense to report to the
Committee by March 1, 1982, what steps have been implemented in the
Department of Defense to provide for increased efficiency in R. & D.
and procurement. The Committee further directs the Secretary to report
what proposals requiring congressional action would pro"ide for in-
creased efficiency.
The Committee has carefully analyzed inflationary trends in the na-
tional economy, particularly as they apply to defense activities and pur-
chases. Two points became vividly clear: the rate of inflation is not slow-
ing to the degree projected in the President's budget, and inflation in
defense activities and purchases continues to exceed by a substantial
margin the national average.
Although the budget anticipated an inflation rate of 8.7 percent for
fiscal year 1981, the final composite figure was actually 13.3 percent.
And there is no evidence yet that this rate has slowed markedly.
These developments make it painfully apparent that the optimistic
8.4-percent inflation rate projection contained in the President's
September budget revisions is not attainable.
The impact of badly underestimating inflation is severe. It will cut
back fiscal year 1981 program levels by more than $2 billion, and the
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impact in fiscal year 1982 will be much the same if steps are not taken
now to finance a more realistic rate. It should be noted parenthentically
that the Committee foresaw this problem in its recommendations for
supplemental appropriations in fiscal year 1981. Increased funding to
minimize the erosion of inflation on the defense budget was
recomended, but only a portion of that increase was finally accepted.
Based on its analysis, the Committee is recommending an increase
above the President's budget and above the authorization levels for fis-
cal year 1982 totaling $1.6 billion, which is the amount needed to
finance a 10-percent inflation rate. Even this projection is considered
moderate, but it at least presents a more realistic approach to the
economic realities confronting the Nation.
This increase has been allocated as follows:
Operation and maintenance .................................................................................. S525,000,000
Procurement .............................................................................................................. 887,000,000
Research, development, test and evaluation ...................................................... 197,000,000
These amounts in turn have been allocated among the various ap-
propriation accounts for the services and defense agencies, and the
Committee will expect the Department of Defense to report back on
how these additions have been distributed among the various principal
activities.
The Committee is recommending a departure from tradition and
including in the bill the funding necessary to support the military pay
raises authorized earlier this year in Public Law 97-60, the Uniformed
Services Pay Act of 1981. This unusual step is recommended because
the regular Defense appropriation bill for fiscal year 1982 is being taken
up so late in the session, more than 6 weeks into the new fiscal year.
The recommendation also recognizes that, whenever possible, full fund-
ing should be addressed in the regular appropriation bill and not
deferred needlessly to a future session of Congress.
It is the Committee's belief that, to the maximum extent possible, the
full costs of the rapidly expanding defense budget should be clearly dis-
played. Further, full funding of pay costs, including the October 1,
1981, increases, assures that program levels will not be degraded by a
continuing need to absorb pay costs.
The total increase recommended for these pay costs is $4.8 billion.
REPROGRA.MrNG FLEXIBILITY
In response to proposals from Department of Defense, the
Committee has reviewed the reprograming guidelines that have been es-
tablished for both transfers and reprograming actions. These guidelines
include various thresholds on which the Department can shift funds
within programs and appropriation accounts with only a simple notifica-
tion to the congressional committees of jurisdiction. Beyond those
thresholds, prior Committee approval in writing is required before any
such transfers or reprogramings can occur.
The Committee is aware that these thresholds have not changed in 18
years and that inflation has overtaken them. It is not the Committee's
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intent to encourage reprogramings and transfers, but it recognizes that a
reasonable degree of flexibility is beneficial and economical so long as
adequate congressional oversite is not impared.
However, the threshold increases recommended to the Committee by
the Department appear excessive. In each case they increase the current
limitation five times over. The Committee instead is recommending a
more moderate increase in the thresholds which are summarized in the
following table:
REPROGRAMING THRESHOLDS
[In millions of dollars]
Current
DOD
recom?
mendation
Committee
recom-
mendation
Military personnel .........................................................
$5.0
$25.0
$15.0
Procurement:
Increase ..................................................................
5.0
25.0
12.0
New start ................................................................
2.0
10.0
5.0
R.D.T. & E.:
Increase ..................................................................
2.0
10.0
5.0
New start (1 year cost) ........................................
2.0
10.0
5.0
New start (3 year cost) ........................................
10.0
50.0
15.0
COMPLIANCE WITH SECrION 308 OF THE BUDGET CONTROL Acr
Section 308(a) of the Budget Control Act (Public Law 93-344) re-
quires that this Committee include in its report specific budgetary in-
formation on the status of recommended appropriations relative to the
first concurrent resolution. The following table provides these data:
BUDGETARY IMPACT OF H.R. 0000
PREPARED BY THE CONGRESSIONAL BUDGET OFFICE PURSUANT TO SEC. 308(a),
PUBLIC LAW 93-344
[In millions of dollars]
Committee Amount Committee Amount
allocation in bill allocation in bill
Comparison of amounts in the bill with the
Committee allocation to its subcommittees
of amounts in the First Concurrent Resolu-
tion for 1982: Subcommittee on Defense... 0 0 0 0
Projections of outlays associated with budg-
et authority recommended in the bill:
1982 ...........................................................................................................
1983 ...........................................................................................................
1984 ...........................................................................................................
1985 ...........................................................................................................
1986 and future year ...............................................................................
Financial assistance to State and local gov-
ernments for 1982 in the bill .......................
Includes outlays from prior-year budget authority.
2 Excludes outlays from prior-year budget authority.
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REPROGRAMNGG OF APPROPRIATED FuN. TDs
In its report on the fiscal year 1974 Defense appropriations bill (S.
Rept. 93-622), the Committee directed the Department of Defense to
utilize the available reprograming flexibility in order to meet
unanticipated or higher than programed funding requirements. For fis-
cal year 1981 the Committee considered 50 reprogramings with a total
dollar value of $936.9 million. Forty-four of these reprogramings were
approved by the Congress either in whole or in part. The total amount
approved was $789.1 million. A statistical summary of these reprogram-
ing actions during the last decade is shown below:
DEPARTMENT OF DEFENSE REPROGRAMINGS
[Dollars in millions]
Value of
program
Number of increase
actions proposals
Fiscal year:
1970
..........................................................................................
129
2,431
1971
..........................................................................................
132
3,266
1972
..........................................................................................
82
1,866
1973
..........................................................................................
56
1,453
1974
..........................................................................................
24
219
1975
..........................................................................................
45
1,446
1976 (and transition quarter) ................................................. 43
791
1977
..........................................................................................
55
1,036
1978
..........................................................................................
66
1,237
1979
..........................................................................................
60
1,163
1980
..........................................................................................
71
1,217
1981
..........................................................................................
50
937
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MILITARY PERSONNEL
Funds appropriated under this title provide for the pay, allowances,
subsistence, permanent change of station. travel, and various other en-
titlements of the uniformed members of our Armed Forces. The level
of active duty military personnel requested in the President's fiscal year
1982 budget is 25,700 above the actual for the end of fiscal year 1981,
while the average strength of the Reserve components requested by the
administration is 41,800 above the fiscal year 1981 level.
The following tables display major elements of the fiscal year 1982 re-
quest for military personnel. The functions and activities for which ap-
propriations are made are described briefly below:
Pay and allowances.-A total of $30.1 billion is requested for the pay
and other entitlements of active duty officers, enlisted personnel and
cadets at the military academies. This includes basic pay, special and in-
centive pays, quarters, uniform and subsistence-except in the case of
enlisted personnel-allowances, separation allowances, the U.S.Govern-
ment's contribution to the social security fund and other applicable
allowances. This function also includes enlistment and reenlistment
bonuses in the case of enlisted personnel.
Subsistence of enlisted personnel.-This activity reflects the cost of
feeding enlisted personnel, either, for food served in dining halls-sub-
sistence-in-kind-or in the form of cash allowances for those members
authorized to subsist elsewhere. A total of $2.2 billion is requested for
this activity in fiscal year 1981.
Permanent change of station travel (PCS).-The $2.8 billion requested
for this activity in fiscal year 1982 supports the rotation of military per-
sonnel between permanent duty stations. It covers the cost of travel of
the member and his dependents, either by commercial or organic
means, per diem allowances at prescribed rates, transportation and non-
temporary storage of household goods, and other related costs.
Other military personnel costs.-The $12.9 million requested for this
activity provides funds for the apprehension of military deserters, ab-
sentees, and escaped military prisoners; and for the payment of death
gratuities to beneficiaries of deceased military personnel.
Guard and Reserve paid drill and initial training.-The $2.4 billion re-
quested for this activity includes the costs of the Selected Reserve, mem-
bers of which attend prescribed numbers of inactive duty training as-
semblies, ranging from 24 to 48 drill periods per year, as well as 2
weeks active duty for training annually.
Other training and support.-This activity, budgeted at $1 billion, sup-
ports school and special training for Reservists, administration and sup-
port of Guard and Reserve units, and the costs of those members of the
individual Ready Reserve who perform only 2 weeks active duty for
training each year. This activity also includes the costs to support per-
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sonnel undergoing training through the Reserve Officers Training Corps
and the health professions scholarship program to become commis-
sioned officers of the Armed Forces.
MILITARY PERSONNEL FISCAL YEAR 1982 BUDGET REQUEST
(Dollars in thousands)
1981
actual
1982
estimate
1983
recommended
Requested funding by service component:
Army ...........................................................
$12,148,300
$12,631,700
$14,095,781
Navy ...........................................................
$8,920,295
$9,340,090
$10,453,767
Marine Corps ............................................
$2,640,700
$2,807,870
$3,151,526
Air Force ...................................................
$10,022,721
$10,440,820
$11,688,381
Army Reserve ...........................................
$869,300
$955,200
$1,054,750
Navy Reserve ............................................
$318,758
$329,020
$361,643
Marine Corps Reserve .............................
$120,357
$138,920
$152,212
Air Force Reserve ....................................
$277,360
$298,848
$326,399
Army National Guard ...............................
$1,168,200
$1,229,100
$1,468,136
Air National Guard ...................................
$386,209
$418,192
$475,078
Military manpower:
Active Forces (in end strength):
Army ............................................................
781,100
780,300
780,300
Navy ...........................................................
540,200
554,700
554,700
Marine Corps ............................................
190,600
192,100
192,100
Air Force ...................................................
570,300
580,800
580,800
Total Active Forces ..............................
2,082,200
2,107,900
2,107,900
The Guard and Reserve:
Army Reserve ...........................................
215,800
235,300
235,300
Navy Reserve ............................................
87,700
87,600
87,600
Marine Corps Reserve .............................
35,800
37,600
37,600
Air Force Reserve ....................................
59,200
62,800
62,800
Army National Guard ...............................
376,800
392,800
392,800
Air National Guard ...................................
97,200
98,600
98,600
SUMMARY OF COMMrITEE. ACTION
The Committee is recommending a total of $43,227,673,000 in ap-
propriations for Active and Reserve personnel costs in fiscal year 1982.
This amount is $4,567,913,000 above the budget request. Explanation of
the Committee's actions can be found in the following pages.
MILITARY STRENGTH ADJUSTMENTS
For the Active Forces, military manpower is authorized each year in
terms of end strength, while for the Reserve components the annual
authorization is in terms of average strength. The fiscal year 1982 De-
fense Authorization Act increased the authorization of the Active
Forces by 42,444, over the fiscal year 1981 level, and raised the average
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strength of the reserve forces by 64,700. The table below summarizes
the adjustments in the fiscal year 1982 authorization to the Services
manpower requests:
Budget
request
Authorization Change
conference from
report budget
Active Forces:
Army ........................................................... 780,300
Navy ........................................................... . 554,700
Marine Corps ............................................ 192,100
Air Force ................................................... 580,800
Reserve Forces:
Army Reserve ........................................... 235,300
Navy Reserve ............................................ 87,600
Marine Corps Reserve ............................. 37,600
Air Force Reserve .................................... 62,800
Army National Guard ............................... 392,800
Air National Guard ................................... 98,600
780,300 ......................
554,600 -100
192,100 ......................
580,800 ......................
235 , 300 ......................
87,600 ......................
37,600 ......................
62,800 ......................
392,800 ......................
98,600 ......................
The military personnel budget requests are driven primarily by the
average strength, or man-year programs, which the services estimate are
required to meet their end strength goals. The end strength goal, how-
ever, does not automatically dictate a specific man-year program.
Estimates for accession planning, attrition and retirements, for example,
must be considered in establishing the total man-year program neces-
sary to meet the authorized end strength.
AcrwE FORCES
For the Active Forces, the Committee recommends appropriations
totaling $39,389,455,000. This is $4,168,975,000 above the budget re-
quest.
Military manpower and pay adjustments.-The revised Department of
Defense fiscal ' year 1982 budget request reflecting strategic program
changes adjusted the manpower and pay of the active Army and Air
Force. As regards the former, military end strength for fiscal year 1982
will be held to 780,300, a 6,000 reduction from the original budget re-
quest. This action, together with earlier payment of selective reenlist-
ment bonuses, has resulted in a net reduction of $52.2 million from the
original budget request. The Air Force has adjusted its budget request
by a $116 million reduction. Its projected end strength has likewise de-
creased 6,000 for a total of 580,800. Additionally, savings in the areas of
overseas station allowances, permanent change of station moves, and
basic allowance for quarters have been made.
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In another effort to improve military compensation levels and redress
personnel shortages throughout the services, Congress passed the Uni-
formed Services Pay and Benefits Act of 1981, Public Law 97-60. The
purpose of this bill is to increase the pay, allowances, and benefits for
members of the military services and certain dependents. The legislation
provides for variable increases in the basic pay and allowances for mem-
bers, depending on grade and years of service. It also authorizes in-
creases in the amounts payable, establishes new authority or modifies ex-
isting authority for flight pay, diving duty pay, enlistment bonuses,
bonuses for nuclear-qualified officers, hazardous duty pay, and al-
lowances for Armed Forces health professions scholarship program par-
ticipants. Additionally, the bill provides new authority for temporary
lodging entitlements, advance payment of certain travel expenses in-
curred in conjuction with permanent change of station moves, travel al-
lowances for military members and dependents stationed at certain ad-
verse overseas locations or in conjunction with certain emergencies, and
it establishes certain limitations on travel and transportation entitle-
ments for members separating or being released from active duty.
Finally, the bill increases the number of senior Reserve Officers' Train-
ing Corps (ROTC) scholarships for the Navy and Air Force, provides
extended and increased authority for reimbursement of military mem-
bers for alternate quarters when ship-board quarters are uninhabitable,
and makes several amendments to enhance the administration of
military justice.
It is estimated by the Department of Defense that the Uniformed
Services Pay and Benefits Act of 1981 requires the following funding
for both entitlements and discretionary pay:
Military pay raise.-Basic allowance for subsistence (BAS), basic al-
lowance for quarters (BAQ), and officer basic pay is increased by 14.3
percent. Enlisted basic pay increases from 10 to 17 percent. Cadet and
midshipmen pay is increased 10 percent. Cost: $4,561,147,000.
Hazardous duty pay.-Authority is provided for a new special pay for
individuals engaged in especially hazardous duties or exposed to severe
working conditions (for example, Titan missile fuel handlers). Officers
will receive $110 per month; enlisted personnel will receive $83 per
month. Enlisted pay for existing categories of hazardous duty such as
flight pay is raised to $83 per month. Air weapons controller incentive
pay is raised to $125 to $350 per month. Cost: $24,007,000.
Aviation career incentive pay.-Officers with over 6 years of aviation
service will receive $306 to $400 per month. Payment to officers with
more than 25 years of service is allowed. Warrant officer pay rates are
increased to the same rates as those of commissioned officers.
Moreover, officers receiving the aviation officer continuation bonus
are not authorized to receive increased flight pay. The bonus is not
authorized in fiscal year 1982 for Air Force officers; authorization for
Navy and Marine Corps aviators terminates at the end of fiscal year
1982. Cost: $57,293,000.
Submarine duty incentive pay.-This pay is increased for those of-
ficers who have served enlisted duty, since this duty will no longer be
counted toward total years of service in determining submarine pay
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eligibility. Moreover, ballistic missile submarine crews on shore rotation
will now be entitled to career sea pay. Cost: $7,200,000.
Diving duty pay.-This is increased to a maximum $200 per month
for officers and $300 per month for enlisted personnel. Additionally,
persons receiving this pay are now entitled to receive one other type of
hazardous duty incentive pay. Cost: $5,155,000.
Enlistment and reenlistment bonuses.-The maximum enlistment
bonus for active duty personnel in critical skills is raised from $5,000 to
$8,000. A 2-year test program of a $4,000 bonus for 3-year enlistments
of high school graduates in Army critical skills is also authorized.
Additionally, any unserved period of an enlistment for which no reen-
listment bonus has been paid may be considered part of an immediately
subsequent term of reenlistment for the purpose of computing reenlist-
ment bonuses. Cost: $75,689,000.
Nuclear officer bonuses.-A $8,000 bonus is now offered to nuclear
qualified officers serving under an agreement executed prior to the new
bonus provisions enacted January 1, 1981. Additionally, a $3,000 acces-
sion bonus for surface nuclear power applicants is now authorized.
Cost: $309,000.
Engineering and scientific career continuation pay.-$3,000 per year is
now authorized to engineering and scientific officers having 3 to 19
years of service. Cost: $3,700,000.
Travel and transportation.-Reimbursement is authorized only when
travel is actually performed. Any authorized travel and transportation
benefit must be used within 180 days of separation or release from ac-
tive duty. Savings: $14,197,000.
Mileage allowance.-This is authorized for the shipment of vehicles
in connection with a permanent change of station. Cost: $17,108,000.
Temporary lodging allowance (TLA).-This is authorized for expenses
incurred as a result of a permanent change of station move, not to
exceed $110 per day for up to 4 days. This allowance is limited to 2
days within the continental United States when a member moves from
the continental United States to overseas. Cost: $95,125,000.
Basic allowance for quarters (BAQ) and variable housing allowance
(VHA).-BAQ and VHA are authorized for those members deprived of
shipboard quarters. Cost: $6,300,000.
Reserve Officer Training Corps (ROTC) scholarships.-These are in-
creased to a maximum of 8,000 for the Navy and 9,500 for the Air
Force. Cost: $659,000.
The fiscal year 1982 budget request did not include any of the funds
necessary to pay these new entitlements and discretionary pay. Never-
theless, it is traditional that entitlements except the pay raise and certain
discretionary pay-authorized after the budget request is submitted-
are funded in an appropriations bill, with the pay raise funded via a
supplemental budget appropriation. Indeed, the fiscal year 1981 appro-
priations bill funded the entitlements of the Nunn-Warner amendment
and the fiscal year 1981 authorization bill-except the 11.7 percent pay
raise. Discretionary pay not funded in the fiscal year 1981 appropria-
tions bill was funded via subsequent reprograming or supplemental
requests.
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The Committee recommends a chance in the traditional method of
funding new entitlements and discretionary pay. Because military per-
sonnel pay entitlements are must pay items and because the Committee
finds no disagreement with the discretionary pay authorized by the fis-
cal year 1982 Defense Authorization Act, it recommends funding what
the Department of Defense estimates to be the cost of the 1981 Uni-
formed Services Pay and Benefits Act. In this way, the full impact of
military personnel costs are able to be immediately recognized and the
necessity of a military pay supplemental request is eliminated.
Bachelor cost-of-living allowance (COLA).-Military members sta-
tioned in high-cost overseas areas receive a COLA to compensate them
for the difference between average living costs at overseas stations and
average living costs in the continental United States. All military person-
nel stationed in designated high-cost overseas areas receive the al-
lowance except single members living on military bases.
Payment of a COLA in the overseas areas of Alaska and Hawaii is
authorized by Title 37, U.S.C. 45. Since fiscal year 1980, the Depart-
ment of Defense has requested funding to begin paying a COLA to
single enlisted personnel who live in Government quarters and are au-
thorized to eat in Government dining facilities. This request is based on
the knowledge that military members living on base incur many of the
excess expenses their counterparts living on the economy.incur. Car in-
surance, dry cleaning, recreation, clothing, and transportation are only
some of the items which must be purchased partially or wholly on the
local economy. Hence, the provision of a partial COLA at a rate which
is 47 percent that of military members without dependents would com-
pensate single enlisted personnel for these costs, help alleviate the eco-
nomic isolation of single enlistees, and insure a standard of living for
single personnel which is equitable to that for married military mem-
bers.
Traditionally, the House has deleted funding for bachelor COLA.
The rationale for the House action has been that individuals targeted to
receive this new allowance are provided all their basic amenities by the
Government at no cost to themselves. The Committee disagrees with
the House rationale. Accordingly, it recommends payment of the budg-
et estimate of $26 million for bachelor COLA.
Career basic allowance for subsistence (BAS).-Career BAS is an im-
portant initiative targeted toward retaining career enlisted personnel in
grades E-5 to E-9. The President's budget proposed giving each service
the option of allowing its career enlisted force a basic allowance for sub-
sistence in lieu of subsisting-in-kind. About 59,000 careerists are ex-
pected to opt for this new allowance. Because the Committee recognizes
the positive impact this program will have on enlisted morale, it recom-
mends that the full $36 million budget request be appropriated.
Permanent change of station (PCS).-The Committee recommends an
$83.8 million reduction to the $2.8 billion budget request for PCS. The
basis of this reduction is threefold: (a) the President has endorsed an
Office of Management and Budget initiative to reduce Government
travel by $200 million through the implemenation of streamlined pro-
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cedures and greater use of commercial travel services. The Department
of Defense share of this savings is approximately $130 million, of which
at least $80 million is expected to be achieved in this fiscal year.
Accordingly, half of this amount will be taken out of the military
personnel accounts; (b) rate increases for Industrial Fund charges and
for anticipated inflation for Interstate Commerce Commission (ICC)
Land and International Through Government Bill of Lading (ITGBL)
household goods shipments materialized at a lower than projected rate
for the past fiscal year. Accordingly, the Committee recommends a
reduction of $40.7 million. (c) Based on fiscal year 1981 experience,
funds to transport mobile homes are overbudgeted by $4.9 million.
Additionally, the Committee recommends that the number of PCS
moves budgeted for in the fiscal year 1982 budget request be main-
tained at that level. An across-the-board reduction in the number of
PCS moves had been considered but was rejected based on the follow-
ing rationale: approximately 84 percent of fiscal year 1982 permanent
change of station moves are associated with accession, separation or
rotation moves. The remaining 16 percent are related to training, opera-
tion, and unit moves. Because the Department of Defense must move
people entering and leaving the service, the number of these moves re-
mains fixed. A reduction in rotation and unit moves necessarily implies
increased tour lengths and curtailed training regimens. Moreover, opera-
tional moves are required to provide needed career development assign-
ments, to support weapons systems changes to accommodate unit activa-
tions and inactivations, to correct grade and skill imbalances, and to
meet Navy sea/shore rotation requirements. For these reasons, 'the Com-
mittee has determined that a cut in PCS moves to save money will
result in a concomitant reduction in readiness, training, and morale.
Unbudgeted reimbursement for air traffic controllers.-Because of the
air traffic controllers strike, the Federal Aviation Administration is cur-
rently reimbursing the Department of Defense for the services of
military air traffic controllers. Accordingly, the Committee recommends
an increase in the amounts reimbursable to the various military person-
nel accounts.
Reenlistment bonuses.-The Committee recommends fully funding
the budget request of $628.5 million for reenlistment bonuses. The pres-
ent method of awarding a lump-sum payment at the time of a military
member's reenlistment is far more preferable to this Committee than is
an alternative installment method, even though- the latter would save a
substantial amount of money this fiscal year. The Committee is con-
vinced that the lump-sum method has a greater positive impact on reen-
listmethit rates than does the installment method. Indeed, the Depart-
ment of Defense survey data have established that the same reenlist-
ment behavior can be obtained from a lower lump-sum amount than
from a higher amount paid in four installments.
Foreign duty pay.-This special pay is paid to enlisted members resid-
ing outside the contiguous United States in areas where many of the
conventional living amenities are absent such as Diego Garcia, Alaska,
and the Peoples Republic of China. Pay ranges from $8 to $22 per
month and has not been revised since 1953. While the Committee con-
sidered reducing this pay in an effort to pressure the Department of
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Defense to review its effectiveness, it has been determined that a severe
reduction in this program would result in a negative impact on the
morale of the 160,000 service members currently receiving foreign duty
pay. Accordingly, the Committee expects the Department of Defense to
review the necessity for and the effectiveness of foreign duty pay and to
submit to the Committee a report on its recommendations no later than
June 1, 1982.
Subsistence.-For several years, the Committee has been concerned
with Department of Defense management of food service programs,
specifically in the accounting for meals and subsistence stocks in the
military dining facilities. In response to this concern, the Defense Audit
Service recommended in its May 1980 report the establishment of an
automated headcount system to better control access to Department of
Defense dining halls. In addition to correcting headcount and account-
ing procedures, this automated system will be used to improve food ac-
countability and control procedures. The Department outlined last year
its incremental program to implement the recommendations of the
Defense Audit Service. The primary emphasis of the program is on the
use of a new plastic identification card which will establish diner eligi-
bility for subsistence-in-kind (SIK) diners. At present, the Department
of Defense plans to issue the new identification cards to active duty,
retired, and dependent personnel during this fiscal year; issue should be
complete by the end of fiscal year 1984.
Use of the card and the automated system will prevent personnel
from eating in several dining facilities during the same meal period and
will identify those who return for additional servings within the same
facility. Moreover, a special feature of the automated system will
prevent the cashier from ringing up an SIK sale when the eligibility sib
nal on the cash register indicates the individual must pay for the meal.
In conformance with last year's action, the Committee recommends
against any cut to subsistence funding penalizing the Department of
Defense for poor dining controls. Indeed, the Committee is encouraged
by the Department's action in this area. It recognizes that substantial
budget cuts in subsistence will most likely result in a request for
reprograming since people will have to be fed and the Department is
continuing its efforts to correct subsistence abuse.
The Committee recommends a budget reduction in SIK funding,
however, since food cost increases to date have not occurred to the ex-
tent forecast in the fiscal year 1982 budget estimate. Appropriations ac-
counts are reduced by $27.3 million.
Overseas station allowances.-Likewise, the costs of living overseas
did not rise to the level anticipated because of the increased strength of
the dollar in relation to foreign currency. The Committee recommends
that these allowances be reduced by $20.8 million.
Variable housing allowance (VHA).-This entitlement is designed to
compensate military personnel for the difference between actual hous-
ing costs and the BAQ. VHA is authorized for members when the
average cost of housing exceeds the BAQ by 15 percent or more. The
Committee recommends full funding of the budget estimate of this en-
titlement. It recognizes that Department of Defense believes this budget
request to be too low based on last month's annual survey; additional
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funds for VHA, however, can be considered in a subsequent reprogram-
ing request.
Aviation officer continuation bonus.-The Committee recommends
deletion of the $47 million request by the Air Force since the bonus is
not authorized for fiscal year 1982. The Committee recommends fund-
ing the Navy and Marine Corps bonus, however, since its authorization
terminates at the end of this fiscal year.
Like the Armed Services Committee, the Committee is concerned
that the bonus has not been implemented as intended by Congress. It
has not been targeted to those areas of critical need. Moreover, the
Navy has disregarded the strong recommendations of the Appropri-
ations Committee in its reprograming approval that the bonus award
require a minimum 2-year commitment. The purpose of the recommen-
dation was to prevent bonus recipients from aggrandizing their awards
by signing up for numerous 1-year terms rather than a multiyear com-
mitment. Since the bonus is based on basic pay, each annual renewal
nets additional income.
Most recent data from the Department of the Navy demonstrate that
the overwhelming majority of aviators who signed up for only 1 year
could have made longer commitments. Accordingly, these aviators can
receive a higher bonus due to the recent 14.3 percent pay raise. The
Committee therefore directs the Department of the Navy to eliminate
the 1-year bonus option for both Navy and Marine Corps aviators.
Funding of military support to the Federal Emergency Management
Agency (FEMA).-The civil defense function performed by the De-
partment of Defense was transferred to FEMA upon its establishment
in 1979. Beginning in fiscal year 1981, FEMA reimbursed the Depart-
ment for the services of individual reservists and reserve units that
support civil defense. FEMA neglected to fund for these activities,
however, in fiscal year 1982. The Department of Defense has made $1.6
million available for tranfer to FEMA so that individual mobilization
designee support continues. The Committee recommends that these
funds remain in the Army Reserve and Air Force Reserve appropria-
tions accounts so that the subsequent tranfer of money from the De-
partment to FEMA takes place.
Individual Ready Reserve.-The Committee recommends a reduction
of $11.672 million in the four reserve accounts since the Individual
Ready Reserve bonus is not authorized for fiscal year 1982.
Civilian technicians.-Based on last year's test to detemine the best
mix of civilian/military technicians in the Reserve and Guard forces,
the Air Force Reserve found that a higher percentage of civilian tech-
nicians best suits its needs. The Air Force Reserve has requested that
the miliatry personnel account be reduced by $4.6 million and the
operations and maintenance account be increased by the same amount
to fund its increased requirement for civilian technicians. The Com-
mittee recommends that this request be honored.
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MILITARY PERSONNEL, ARMY.
1981 appropriation ............................................................................................. S12,148,300,000
1982 budget estimate ......................................................................................... 12,631,700,000
House allowance .................................................................................................
Committee recommendation ............................................................................. 14,095,781,000
The Committee recommends an appropriation of $14,095,781,000 for
fiscal year 1982. This is $1,464,081,000 above the budget request.
All Committee recommended adjustments to the budget request, in-
cluding those items discussed elsewhere in the report, are summarized
below:
Budget
request
Committee
recommendation
Basic. pay ............................................................................
$8,086,707
$9,569,976
Basic allowance for quarters ...........................................
934,404
928,604
Subsistence ........................................................................
979,854
968,754
Incentive, hazardous duty, aviation pay .........................
65,878
88,052
Physician and special pay ................................................
86,728
86,728
Sea and foreign duty pay ................................................
10,081
10,081
Diving duty pay ..................................................................
61
199
Reenlistment bonuses .......................................................
139,316
139,316
Proficiency pay ..................................................................
61,518
34,718
Enlistment bonuses ...........................................................
89,039
104,039
Overseas extension pay ...................................................
1,256
1,256
Uniform and clothing allowances ....................................
176,186
176,186
Overseas station allowances ............................................
140,102
158,202
Variable housing allowances .............................................
161,890
161,890
Other allowances ...............................................................
24,683
24,683
Separation payments .........................................................
106,498
106,498
Social security tax payments ...........................................
538,219
538,219
Permanent change of station ..........................................
1,103,100
1,074,600
Other military personnel costs .........................................
5,040
5,040
Cadets .................................................................................
27,540
27,540
Less reimbursables ...........................................................
-106,400
-108,800
Displayed below are details of the Committee's adjustments:
[In thousands of dollars]
Budget
request
Committee
recommendation
NCO proficiency pay .........................................................
$26,800
-$26,800
Rate and fuel reductions .......................................................................
-22,300
PCS savings ............................................................................................
-14,500
Temporary lodging allowance .......................................... 37,891
-9,000
KATUSA rate error .................................................................................
- 100
Pay longevity ......................................................................
8,086,707
-7,800
Basic allowance for quarters ...........................................
691,102
-5,800
Overseas station allowances ............................................
140,102
-11,000
Air traffic controllers ..............................................................................
-2,400
Trailer allowances .............................................................
3,900
- 900
Subsistence ........................................................................
979,854
-11,000
Pay and Benefits Act .............................................................................
+1,575,681
Noncommissioned officer proficiency pay.-This proposed pay would
have paid monthly stipends of $90 to $150 to enlisted members in key
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combat arms leadership positions at company, battery, and troop level.
The pay was opposed by field commanders, however, and the request
was subsequently withdrawn by the Army. The Committee, therefore,
has deleted this funding from the Army budget estimate.
Skill shortage pay.-This new discretionary pay program offers ap-
proximately 11,000 enlisted personnel between $100 and $150 per
month in high-technology specialties, such as air defense radar and mis-
sile maintenance/electronics mechanics/communications equipment
maintenance positions. Personnel must be on their second or subse-
quent enlistment to qualify for this pay. The Committee recommends
full funding of the $17,300,000 budget estimate since this pay is ex-
pected to greatly improve retention rates in critical skill areas. Because
this pay is a new initiative which will supplement personnel already
receiving reenlistment bonuses, however, the Army is directed to report
to the Committee no later than July 1, 1982, on the effect of this pay
on critical skill retention.
Miscellaneous reductions.-The Committee recommends a reduction
of $7 million based on overstated pay longevity calculations; a $9 mil-
lion reduction in temporary lodging allowances because of lower than
expected inflation rates overseas; and a $5.8 million reduction based on
a lower than expected number of personnel receiving this allowance in
fiscal year 1982.
Proposed Fort Ord reduction.-The Committee is concerned with the
Army's plan to reduce the Seventh Infantry Division at Fort Ord,
Calif., to cadre status. This unit is a highly mobile, light infantry divi-
sion which is less costly to operate and maintain than heavier divisions.
The Army is unable to provide the Committee with definite cost data
on the planned fiscal year 1983 drawdown and the subsequent buildup
in fiscal years 1986 and 1987. Recognizing that the proposed reduction
of this unit to cadre strength is in its early planning stages and that the
Army has not informed the Committee as to the costs and benefits of
its proposal, the Committee instructs the Army that none of the funds
appropriated by this act shall be used for a reduction in the size of the
Seventh Infantry Division pursuant to a change in status of that
division.
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MILITARY PERso\1EL, NAVY
1981 appropriation ............................................................................................... S8,893,095.000
1982 budget estimate ........................................................................................... 9,340,090,000
House- allowance ...................................................................................................
Committee recommendation ............................................................................... 10,453,767,000
The Committee recommends an appropriation of $10,453,767,000 for
fiscal year 1982. This is $1,113,677,000 above the budget request.
All Committee recommended adjustments to the budget request, in-
cluding those items discussed elsewhere in the report, are summarized
below:
Budget
request
Committee
recommendation
Basic pay ............................................................................
$5,628,217
$6,704,411
Basic allowance for quarters ...........................................
730,441
733,591
Subsistence ........................................................................
724,599
714,799
Incentive, hazardous duty, aviation pay .........................
155,775
177,109
Physician and special pay ................................................
80,714
81,023
Sea and foreign duty pay ................................................
173,922
168,522
Diving duty pay ..................................................................
2,249
7,137
Reenlistment bonuses .......................................................
321,601
321,601
Proficiency pay ..................................................................
18,125
18,125
Enlistment bonuses ...........................................................
12,500
50,300
Other special pay ..............................................................
13
13
Uniform and clothing allowances ....................................
108,075
108,075
Overseas station allowances ............................................
77,310
94,003
Variable housing allowances ............................................
218,268
221,418
Other allowances ...............................................................
10,465
10,465
Separation payments .........................................................
83,510
78,110
Social security tax payments ...........................................
374,420
374,420
Permanent change of station ..........................................
669,257
641,616
Other military personnel costs .........................................
4,868
4,868
Midshipmen ........................................................................
29,761
29,761
Less reimbursables ...........................................................
-84,000
-85,600
Displayed below are details of the Committee's adjustments:
[in thousands of dollars]
Budget
request
Committee
recommendation
Rate and fuel reductions .......................................................................
-$18,400
PCS savings ............................................................................................
-9,500
Separation payments .........................................................
$83,510
-5,400
Sea pay ..............................................................................
169,269
-5,400
Overseas station allowances ............................................
77,310
-7,700
Subsistence ........................................................................
724,599
-9,800
Air traffic controllers ..............................................................................
=1,600
Trailer allowances ............................................................. 1,700
-1,100
Pay and Benefits Act .............................................................................
+1,172,577
Miscellaneous reductions.-The Committee recommends a reduction
of $5.4 million in separation payments since the level of payment for
lump sum terminal leave is expected to decrease in this fiscal year, and
a $5.4 million reduction in sea pay based on a refinement in the num-
ber of officers entitled to this pay.
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MILITARY PERSONNEL, MARUNTE CORPS
1981 appropriation ............................................................................................... $2,633,300,000
1982 budget estimate ........................................................................................... 2,807,870,000
House allowance ...................................................................................................
Committee recommendation ............................................................................... 3,151,526,000
The Committee recommends an appropriation of $3,151,526,000 for
fiscal year 1982. This is $343,656,000 above the budget request.
All Committee recommended adjustments to the budget request, in-
cluding those items discussed elsewhere in the report, are summarized
below:
Budget
request
Committee
recommendation
Basic pay ............................................................................
$1,798,133
$2,125,654
Basic allowance for quarters ...........................................
196,644
196,644
Subsistence ........................................................................
223,412
219,212
Incentive, hazardous duty, aviation pay .........................
27,908
30,000
Physician special pay ......................................................................................................
Sea and foreign duty pay ................................................
7,791
7,137
Diving duty pay ..................................................................
216
. 344
Reenlistment bonuses .......................................................
57,936
72,936
Proficiency pay ..................................................................
5,478
5,478
Enlistment bonuses ...........................................................
10,930
16,719
Overseas extension pay ..................................................................................................
Uniform and clothing allowances ....................................
51,820
51,820
Overseas station allowances ............................................
21,464
25,679
Variable housing allowances ............................................
56,484
56,484
Other allowances ......................................... I
3,209
3,209
Separation payments .........................................................
30,459
28,559
Social security tax payments ...........................................
119,665
119,665
Permanent change of station ..........................................
205,105
200,970
Other military personnel costs .........................................
2,252 '
2,252
Cadets ...............................................................................................................................
Less reimbursables ........................................................... -11,036 -11,236
Displayed below are details of the Committee's adjustments:
[In thousands of dollars]
Budget
request
Committee
recommendation
PCS savings ............................................................................................
-$2,900
Overseas station allowances ............................................
$21,464
-2,100
Reenlistment bonuses .......................................................
57,936
+ 15,000
Air traffic controllers ..............................................................................
-200
Trailer allowances .............................................................
900
-500
Subsistence ........................................................................
223,412
-2,700
Separation payments .........................................................
30,459
-1,900
Flight/sea pay rate errors .....................................................................
-654
Leave rations ..........................................................................................
-1,500
Pay and Benefits Act .............................................................................
+341,110
Selective reenlistment bonus.-This bonus is offered to Marines who
reenlist for a minimum of 3 years in critical skill specialties such as air-
craft maintenance, air defense warfare, and elecLonics maintenance.
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The bonus has been highly successful in retaining highly trained per-
sonnel; accordingly, the Committee recommends a $15 million increase
so the Marine Corps can continue the momentum of this retention aid.
Miscellaneous reductions.-The Committee recommends a reduction
of $1.9 million in separation payments since the number of severance
payments is expected to decrease in this fiscal year; a $654,000 reduc-
tion in flight and sea pay since the rates used in the budget estimate
were overcalculated by this amount; and a $1.5 million reduction in
basic allowance for subsistence since the number of personnel entitled
to leave rations has decreased.
MILITARY PERSONNEL, AIR FORCE
1981 appropriation ............................................................................................... $10,001,821,000
1982 budget estimate .........................................................................................:. 10,440,820,000
House allowance ...................................................................................................
Committee recommendation ............................................................................... 11,688,381,000
The Committee recommends an appropriation of $11,688,381,000 for
fiscal year 1982. This is $1,247,561,000 above the budget request.
All Committee recommended adjustments to the House bill and to
the budget request, including those items discussed elsewhere in the
report, are summarized below:
Budget
request
Committee
recommendation
Basic pay ............................................................................
$6,721,409
$7,968,861
Basic allowance for quarters ...........................................
842,977
842,977
Subsistence ........................................................................
769,087
765,287
Incentive, hazardous duty, aviation pay .........................
174,374
162,651
Physician special pay .......................................................
69,939
69,939
Sea and foreign duty pay ................................................
8,989
8,989
Diving duty pay ..................................................................
2
3
Reenlistment bonuses .......................................................
99,616
99,616
Proficiency pay ..................................................................
6,478
10,122
Enlistment bonuses ...........................................................
3,784
20,884
Overseas extension pay ...................................................
700
700
Uniform and clothing allowances ....................................
87,386
87,386
Overseas station allowances ............................................
129,878
155,378
Variable housing allowances ............................................
205,189
205,189
Other allowances ...............................................................
11,612
11,612
Separation payments .......................................................... .
77,900
77,900
Social security tax payments ...........................................
448,865
448,865
Permanent change of station ..........................................
875,043
854,430
Other military personnel costs .........................................
1,604
1,604
Cadets ..........................................................................:......
28,613
28,613
Less reimbursables ...........................................................
-122,625
-132,625
Displayed below are details of the Committee's adjustments:
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Budget
request
Committee
recommendation
Aviation officer continuation bonus ................................
$47,000
-$47,000
PCS savings ............................................................................................
-13,100
Pay longevity ......................................................................
6,721,409
-12,800
Proficiency pay ..................................................................
6,478
- 56
Air traffic controllers ..............................................................................
- 10,000
Trailer allowances .............................................................
1,500
-600
Subsistence ........................................................................
769,087
- 3,800
Pay and Benefits Act .............................................................................
+1,334,917
Physicians assistants.--The Committee recommends a reduction of
$56,000 to the enlisted proficiency pay account based on the recent au-
thorization of commissioned physicians assistants.
Miscellaneous reductions.-The Committee recommends a reduction
of $12.8 million based on overstated pay longevity calculations.
RESERVE PERSON'N'EL, ARMY
1981 appropriation .................................................................................................... 8869,300,000
1982 budget estimate ................................................................................................ 955,200,000
House allowance ........................................................................................................
Committee recommendation .................................................................................... 1,054,750,000
The Committee recommends an appropriation of $1,054,750,000 for
fiscal year 1982. This is $99,550,000 above the budget request.
All Committee recommended adjustments to the budget request, in-
cluding those items discussed elsewhere in the report, are summarized
below:
Budget
request
Committee
recommendation
Unit and individual training:
Pay group A ...............................................................
$515,120
$583,642
Pay group F ................................................................
93,701
97,201
Pay group P ................................................................
1,279
1,379
Other training and support:
Pay group D ...............................................................
11,800
13,000
Mobilization training ...................................................
35,196
38,696
School and special training ......................................
56,511
63,011
Administration and support .......................................
168,301
182,229
Reserve Officers Training Corps ..............................
43,749
46,049
Health professions scholarship .................................
15,196
15,196
Branch officers basic course ....................................
13,937
13,937
Chaplain candidate program .....................................
410
410
Committee adjustments.-The Committee recommends the above
changes based on the Pay and Benefits Act (+$106,022,000) and on
the elimination of the Individual Ready Reserve bonus (-$6,472,000).
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RESERVE PERSONNEL, NAVY
1981 appropriation .................................................................................................. S318,758.000
1982 budget estimate .............................................................................................. 329,020,000
House- allowance ......................................................................................................
Committee recommendation .................................................................................. 361.643.000
The Committee recommends an appropriation of $361,643,000 for fis-
cal year 1982. This is $32,623,000 above the budget request.
All Committee recommended adjustments to the budget request, in-
cluding those items discussed elsewhere in the report, are summarized
below:
Budget
request
Committee
recommendation
Unit and individual training:
Pay group A ...............................................................
$261,099
$290,965
Pay group F ................................................................
10,179
11,279
Pay group D ...............................................................
753
853
Other training and support:
School and special training ......................................
12,231
11,469
Administration and support .......................................
14,743
16,043
Reserve Officers Training Corps ..............................
17,564
18,583
Health professions scholarship .................................
12,451
12,451
Committee adjustments.-The Committee recommends the above
changes based on the Pay and Benefits Act (+$34,023,000) and on the
elimination of the Individual Ready Reserve bonus (-$2,300,000).
1979 Reserve deficit. This account ran a deficit in 1979 by over-
expending $4,000 and overobligating $266,000. The Committee recom-
mends that up to $100,000 of the fiscal year 1982 budget be used to
begin payment of debts incurred in 1979,
RESERVE PERSONNEL, MARINE CORPS
1981 appropriation .................................................................................................. S120,357,000
1982 budget estimate .............................................................................................. 138,920,000
House allowance ......................................................................................................
Committee recommendation .................................................................................. 152,212,000
The Committee recommends an appropriation of $152,212,000 for fis-
cal year 1982. This is $13,292,000 above the budget request.
All Committee recommended adjustments to the budget request, in-
cluding those items discussed elsewhere in the .report, are summarized
below:
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Budget
request
Committee
recommendation
Unit and individual training:
Pay group A ...............................................................
$70,996
$78,366
Pay group F ................................................................
36,300
39,600
Pay group P ................................................................
287
287
Individual mobilization augmentees ..........................
1,228
1,228
Other training and support:
Mobilization training ...................................................
2,905
3,105
School and special training ......................................
9,177
9,577
Administration and support .......................................
12,445
14,106
Reserve Officers Training Corps ..............................
5,612
5,912
Committee adjustments.-The Committee recommends the above
changes based on the Pay and Benefits Act (+$13,692,000) and on the
elimination of the Individual Ready Reserve bonus (- $400,000).
RESERVE PERSONNEL, AIR FORCE
1981 appropriation .................................................................................................... 5277,360.000
1982 budget estimate ................................................................................................ 298,848,000
House allowance ........................................................................................................
Committee recommendation .................................................................................... 326,399,000
The Committee recommends an appropriation of $326,399,000 for fis-
cal year 1982. This is $27,551,000 above the budget request.
All Committee recommended adjustments to the budget request, in-
cluding those items discussed elsewhere in the report, are summarized
below:
Budget
request
Committee
recommendation
Unit and individual training:
Pay group A .......................................... :....................
$130,748
$148,870
Pay group F ................................................................
11,597
12,797
Pay group P ................................................................
571
571
Pay group D ...............................................................
1,399
1,499
Pay group B ...............................................................
23,915
27,015
Other training and support:
School and special training ......................................
70,611
77,611
Administration and support .......................................
26,876
23,665
Reserve Officers Training Corps ..............................
20,592
21,832
Health professions scholarship .................................
12,539
12,539
Committee adjustments.-The Committee recommends the above
changes based on the Pay and Benefits Act (+$34,651,000), the
elimination of the Individual Ready Reserve bonus (- $2,500,000), and
the Reserve request for civilian technician funding (- $4,600,000).
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NATIONAL GUARD PERSONNEL, ARMY
1981 appropriation ............................................................................................... 51,168,200,000
1982 budeet estimate ........................................................................................... 1,299,100,000
House allowance ...................................................................................................
Committee recommendation ............................................................................... 1,468,136,000
The Committee recommends an appropriation of $1,468,136,000 for
fiscal year 1982. This is $169,036,000 below the budget request.
All Committee recommended adjustments to the budget request, in-
cluding those items discussed elsewhere in the report, are summarized
below:
Budget
request
Committee
recommendation
Unit and individual training:
Pay group A ...............................................................
$760,907
$868,517
Pay group F ................................................................
161,559
179,359
Pay group P ................................................................ .
9,987
11,487
Other training and support:
School and special training ......................................
89,020
98,420
Administration and support .......................................
277,627
310,353
Committee adjustments.-The Committee recommends the above
changes based on the Pay and Benefits Act (+$169,036,000).
NATIONAL GUARD PERSONNEL, AIR FORCE
1981 appropriation ....................................................................................................
$386,209,000
1982 budget estimate ................................................................................................
418,192,000
House allowance ........................................................................................................
Committee recommendation ....................................................................................
475,078,000
The Committee recommends an appropriation of $475,078,000 for fis-
cal year 1982. This is $56,886,000 above the budget request.
All Committee recommended adjustments to the budget request, in-
cluding those items discussed elsewhere in the report, are summarized
below:
Budget
request
Committee
recommendation
Unit and individual training:
Pay group A ...............................................................
$249,447
$287,139
Pay group F ................................................................
23,332
25,232
Pay group P ................................................................
1,027
1,127
Other training and support:
School and special training ......................................
63,872
70,472
Administration and support .......................................
80,514
91,108
Committee adjustments.-The Committee recommends the above
changes based on the Pay and Benefits Act (+$56,886,000).
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TITLE II
RETIRED MILITARY PERSONNEL
RETIRED PAY, DEFENSE
1981 appropriation ................................................................................................ $13,887,800,000
1982 budget estimate ............................................................................................ 14,981,815,000
House allowance ....................................................................................................
Committee recommendation ................................................................................ 14,94815.000
The Committee recommends an appropriation of $14,944,815,000 for
retired pay. This is an increase of $1,057,015,000 over the fiscal year
1981 appropriation and a decrease of $37,000,000 from the budget esti-
mate. The recommended reduction is based on the action of the 1981
Omnibus Reconciliation Act which entitled military personnel not
participating in the survivors benefits program to do so. The Commit-
tee's recommendation concurs with the Congressional Budget Office
estimate of the amount of funding projected to be saved in fiscal year
1982.
Appropriations under this title finance retirement pay, as authorized
and prescribed by law, for military personnel on the retired lists of the
Army, Navy, Marine Corps, and Air Force. This includes payments for
nondisability retirement at completion of prescribed lengths of service,
for those in temporary or permanent disability status, for Navy and
Marine Corps members of the Fleet Reserve who have 20, but less than
30, years' creditable service, and for survivors of deceased members
who qualify for continued annuities. The estimates exclude payments to
individuals who elect to receive compensation for physical disability
from the Veterans Administration. The amounts requested are also ex-
clusive of any administrative expense.
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OPERATION AND MAINTENANCE
The Committee recommends appropriations totaling $63,368,634,000
in title III, Operation and Maintenance, for fiscal. year 1982. This is
$778,513,000 above the budget estimate. The recommendation for the
1982 annual bill does not include amounts to be requested by DOD at
a later time for supplemental appropriations to cover civilian pay raises,
fuel price increases, and other contingent requirements.
The Committee recommendations by appropriation account are com-
pared with the budget estimate in the following table:
[In thousands of dollars]
Fiscal year
1981 enacted
Budget
estimate
Committee roc-
ommendation
Operation and maintenance:
Army .............................................
$13,160,533
$15,207,500
$15,351,400
Army Stock Fund .......................
34,000
211,300
211,300
Navy .............................................
17,728,799
19,611,170
19,880,389
Navy Stock Fund ........................
309
17,435
17,435
Marine Corps ..............................
.1,072,206
1,176,940
1,186,440
Marine Corps Stock Fund .........
4,108
13,334
13,334
Air Force ..................................... ?
14,769,614
16,696,076
16,903,069
Air Force Stock Fund ................
28,300
107,800
107,800
Defense agencies .......................
4,380,816
4,635,500
4,778,000
Defense Stock Fund ..................
458,000
79,000
79,000
Army Reserve .............................
522,793
614,900
619,700
Navy Reserve ..............................
554,172
578,640
565,540
Marine Corps Reserve ...............
28,854
40,299
40,799
Air Force Reserve ......................
601,980
678,008
682,608
Army National Guard .................
958,770
1,041,200
1,047,600
Air National Guard .....................
1,531,907
1,682,468
1,682,568
National Board for the Promotion
of Rifle Practice .............................
845
444
845
Claims, Defense .................................
141,850
195,500
198,200
Court of Military Appeals ..................
2,310
2,607
2,607
Total, operation and main-
tenance .................................
55,980,234
62,590,121
63,368,634
The Department's budget estimate of $62,590,121,000 includes
$3,191,000,000 for inflation and $3,178,400,000 for real program growth
over the previous year programs. The Department assumed an average
rate of inflation of 8.4 percent. In consideration of the actual rate of in-
flation for fiscal year 1981 of 13.3 percent, the Committee is concerned
that the Department has assumed an overly optimistic projection for fis-
cal year 1982. Inflationary impact in excess of the Department's projec-
tion will erode the planned program growth for needed readiness im-
provements.
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Consequently, the Committee recommends the addition of $525,000,-
000 to the operation and maintenance accounts to provide for an
austere inflation projection of 10 percent. The incremental chance be-
tween 8.4 percent and 10 percent is illustrated in the following table:
Appropriation account Recommended
Operation and maintenance: increase
Army .................................................................................................................... S110.600.000
Navy ..................................................................................................................... 201.600.000
Marine Corps ..................................................................................................... 9,600.000
Air Force ............................................................................................................ 147.200.000
Defense agencies ................................................................................................ 32.000.000
Army Reserve .................................................................................................... 4.800.000
Navy Reserve ..................................................................................................... 3.200.000
Marine Corps Reserve ...................................................................................... 500,000
Air Force Reserve ............................................................................................. 1.600,000
Army National Guard ...................................................................................... 6.400,000
Air National Guard .......................................................................................... 4,800.000
Claims, Defense ......................................................................................................... 2.700,000
REAL PROPERTY MAINTENANCE AND REPAIR PROGRAMS
The following table shows the real property maintenance and repair
funding programs and unfunded backlogs for fiscal years 1980 through
1982:
Army ..............................
$647.2
$743.8
$1,211.3
$1,853.0
$2,370.4
$2,270.2
Navy ..............................
530.2
662.5
710.2
587.0
564.0
585.0
Marine Corps ...............
136.0
167.4
200.4
167.1
177.5
171.7
Air Force ......................
831.3
859.1
1,191.2
488.6
531.2
347.0
Defense agencies ........
62.3
82.5
80.5
36.0
54.0
61.1
Reserve forces .............
105.2
142.2
159.9
143.8
128.0
119.5
The Committee reaffirms its view that the growth of the backlog
should be contained at the fiscal year 1978 dollar level, so that the size
of the backlog will decline in real terms to a more manageable level
over a period of years. This view was expressed in the Committee's
reports the past 2 years. The backlog has grown from a total of $2.32
billion in fiscal year 1978 to a projected $3.554 billion at the end of fis-
cal year 1982.
The Department has made a clear commitment to contain the growth
of the backlog of real property maintenance projects as evidenced in
the requested funding level of 35 percent over fiscal year 1981 pro-
grams. However, real property maintenance projects have been ne-
glected for so long and the backlog is accelerating at such a rate that if
definitive action is not realized this fiscal year, dedication of future
resources for repair and maintenance of these facilities may no longer
be cost effective. In recognition of this circumstance, the Committee
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recommends that a total of $400 million be added to the Army, Navy,
and Air Force operation and maintenance accounts to further reduce
the backlog of maintenance and repair of real property. Specific direc-
tion of the additional funds is contained in the appropriate sections of
this report under the various appropriation account headings.
CONSULTANTS, STUDIES, TECHNICAL SERVICES, AND OTHER
MANAGEMENT SUPPORT CONTRACTS
In nearly every legislative action in recent years regarding the opera-
tions of the Government or budgetary matters, the Congress has ex-
pressed a continued concern over the excessive use and misuse of con-
tractor support to perform tasks which should be done by Government
employees or not performed at all. Despite repeated direction to the
contrary, the use of contractor support for "paper" missions seems to be
accelerating as an accepted mode for doing the business of the De-
partment of Defense. However, the Department is beginning to seek
methods to control the use of contractor support and has made some
positive steps to this end as evidenced by an overall reduction of $210
million since the January budget submission.
Despite the initiatives of control, the problem of attaining visibility of
the extent of contractor support still remains. For the past 2 years the
Department has submitted a budgetary document which defines and
quantifies the types of contractor support functions performed and fur-
ther aggregates this information by appropriation account. As support-
ing data to the fiscal year 1982 amended budget, the Department es-
timated that over $1.5 billion would be used for consultants, studies,
technical services, and other management support contracts. By com-
parison, it was estimated that over $1.3 billion would be used for these
purposes in fiscal year 1980. Despite this voluminous budgetary infor-
mation, accounting data estimated that nearly three times the amount
reported for this purpose was actually spent. These conflicting reporting
mechanisms suggest a myriad of problems, but at a minimum it is clear
that there is no relationship between the budget and accounting systems
to determine the actual extent to which the department is utilizing con-
tractor support.
In an effort to yield a better understanding of the use of contractor
support, the Committee directs the Department to improve the budget
and accounting reporting systems to include the same information es-
tablished by identical definitions as supporting data for the fiscal year
1983 budget submission.
The current data for the fiscal year 1982 submission estimates that
the Navy appropriation accounts comprise over 60 percent of the budg-
et request for consultants, studies and analyses, and management sup-
port contracts. Regardless of any other proposals, the Committee recom-
mends that the Navy accounts be reduced $77 million in order to de-
crease the dependence on the use of contractor support services. It
should be emphasized that the preponderance of this reduction be ap-
plied to the general categories of consultants, contract studies and
analyses, and the specific categories of program management support,
and other professional and management services by contract.
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Although the largest share of this reduction is applied under the
Navy operation and maintenance account, the Committee recognizes
that the use of the existing budgetary documents poses the prospect of
severe inequities. Consequently, the Department of Defense may pro-
pose a redistribution of this reduction to all appropriation accounts, and
report to the Committee on the redistribution by a notification
reprograming.
CIVILIAN HEALTH AND MEDICAL PROGRAM OF THE UNIFORMED
SERvICEs (CHAMPUS)
COMPETITIVE RATE PROGRAM
Biofeedback.-The Committee is concerned that no real progress has
yet been made by CHAMPUS in authorizing reimbursement for bio-
feedback services. The Committee expressed its initial interest in this
matter during its fiscal year 1978 deliberations, and it has consistently
raised this issue with the Department of Defense. Indeed, last year the
Department reported that an amendment of its regulations had been
drafted that would provide biofeedback therapy coverage for the follow-
ing medical conditions: headache; idiopathic, essential hypertension;
primary idiopathic Raynoud's disease; neuromuscular rehabilitation; gas-
trointestinal disorders; and cardiac arrhythmias. The Committee remains
convinced that biofeedback therapy is a highly cost-effective modality
and accordingly directs CHAMPUS to explore under what conditions
these services should be reimbursed.
Peer review.-The Committee remains highly impressed by the pio-
neering efforts of CHAMPUS to establish professional peer review
panels in order to insure that mental health services reimbursed under
CHAMPUS are necessary and appropriate. It is the Committee's opin-
ion that this particular initiative has been highly instrumental in keep-
ing the costs of mental health care at a reasonable level during the past
fiscal year.
Child and spouse abuse.-During its fiscal years 1980 and 1981 delib-
erations, the Committee expressed its concern that the Department of
Defense begin to aggressively address the many needs of children and
spouses of active duty personnel. The General Accounting Office has
reviewed the problem of dependent abuse and has acknowledged that
the situation is confounded by the fact that those individuals with the
Department of Defense assigned to address child and spouse abuse are
at the same time charged with other competing responsibilities. More-
over, although the Department has been asked by Congress to identify
a budget amount for this effort, it has not done so. Accordingly, the
Committee recommends an increase of $10 million so that child ad-
vocacy and family counseling programs are established in fiscal year
1982. The Department is expected to use the appropriation on these pro-
grams only. Additionally, the Committee asks the Department of
Defense to identify in its fiscal year 1983 budget estimate specific funds
and resources that will be allocated to correcting the problem of child
and spouse abuse.
Clinical social worker demonstration project.-The Committee is
pleased that the clinical social worker direct reimbursement program,
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begun last year, is progressing and that over 360 health billings have
been submitted. The Committee understands that there is no evidence
to indicate that the overall quality of care has been jeopardized and
that the majority of the billings have been at either the same or lower
rate than that for prevailing CHAMPUS psychotherapy care. Accord-
ingly, the Committee recommends that the pilot project be continued
for an additional year, and it expects that during its fiscal year 1983
deliberations, the decision will be made whether to concur with in-
dependent reimbursement pursuant to the President's 1978 Commission
on Mental Health recommendation.
Fraud and abuse.-The Committee agrees with the recent CHAMPUS
reorganization that created an Office of Program Integrity and recog-
nizes the difficulties associated with assigning a high priority to in-
dividual beneficiary or provider fraud. The Committee expects to be
kept informed of any further difficulties that CHAMPUS might ex-
perience in insuring that allegations of fraud are fully explored.
Health maintenance organization (HMO) project.-The Committee is
pleased with CHAMPUS implementation of the health maintenance or-
ganization demonstration project in Portland, Oreg. This program is ex-
pected to continue for 3 years at a minimum in order for the De-
partment to obtain sufficient data to assess the possibility of expanding
the project. The Committee is especially interested in learning the ex-
tent to which CHAMPUS beneficiaries using this "prepaid" approach
are more or less satisfied with their health care. Recognizing that
retirees are reluctant to participate in the HMO project due to its ex-
perimental nature, the Committee urges CHAMPUS to use its authority
to explore means of addressing retirees' concern, perhaps by guarantee-
ing beneficiaries that additional costs in regaining earlier coverage will
be covered by CHAMPUS. The .Committee further expects that
CHAMPUS, under this broad authority, will consider exploring other
types of health insurance.
Inpatient psychiatric care.-The Committee remains concerned that
there continues to be excessive reliance on the most costly in-patient
psychiatric care treatment modality than is appropriate. This is pri-
marily because, unlike the mental health benefit of private sector health
care plans, there is no annual limitation under CHAMPUS. The Com-
mittee recognizes the concern of CHAMPUS and the mental health
community for the 30-day annual limitation on in-patient psychiatric
care. CHAMPUS assures the Committee that long-term psychiatric in-
patient care is being closely monitored and that the American Psychi-
atric Association's peer review committees, in particular, will increase
their efforts in this area. Accordingly, the Committee is not recom-
mending such a limit. The Committee is disturbed, however, by
statistics indicating that the fiscal year 1980 average cost per in-patient
psychiatric care was nearly twice that for in-patient surgery or medical
care. And, the Committee has reviewed evidence suggesting that a 30-
day annual limit would not have the adverse impact that the providers
contend.
Nonphysician health care providers.-Last year the Committee di-
rected the Department to address allegations of morale problems among
nonphysician health care providers. The Committee remains concerned
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that highly competent health care professionals are not allowed to
function to the fullest extent of their training. This is partly because the
services demonstrate a decided preference to selecting physicians, rather
than other health care professionals, when assigning a health care pro-
fessional to an administrative position. Further, the Committee is con-
cerned that, since administrative skills differ from clinical skills, the use
of limited medical resources in this way may not be in the best interest
of the services. Accordingly, the Committee directs the Department to
renew its attention to this matter and to report to this Committee the
extent to which primarily administrative positions are filled by
clinicians. This report should include a comparison with generally
accepted practices in the civilian community and should describe the
extent to which any particular professional discipline may have been
systematically favored in such assignments.
Nurse-midwives.-The Committee is pleased by the good faith efforts
made by CHAMPUS for the direct reimbursement of certified nurse-
midwives. The Committee is likewise pleased with the pioneering ef-
forts that CHAMPUS has undertaken in establishing national standards
for birthing centers.
Optometry.-The Committee directs CHAMPUS to continue con-
sideration of an increased vision therapy benefits package. Available
evidence suggests that approximately 15 percent of private sector em-
ployees have routine vision care available through the health care
benefits program, and that eye and vision disorders account for the
second most chronic national health condition. Further, on a nationwide
basis, it is estimated that only half of those requiring some form of vi-
sion care actually receive it.
Nurse practitioners.-The Committee has supported direct reimburse-
ment of nurse practitioners and clinical specialists by CHAMPUS since
1977. The Committee believes that since these individuals are licensed
to perform independently at the State level and since they possess a
master of arts degree, a nursing degree, and professional certification,
there should be no concern about the possible dimunition of quality of
care. To date, all evidence provided to the Committee confirms that
nurse practitioners/clinical specialists are fully competent to provide as
much as 90 percent of the care currently provided by physicians, and in
an equally effective manner. Since 1978, certified nurse-midwives have
been directly reimbursed. The fiscal year 1980 appropriations bill
(Public Law 96-154) permitted direct reimbursement of certified nurse
practitioners on an experimental basis. To date, there have been less
than 50 billings nationwide. Accordingly, the Committee feels that it is
now appropriate to remove the experimental designation and it directs
CHAMPUS to provide for their direct reimbursement.
Dental plan demonstration project.-The Committee recommends that
CHAMPUS explore the possibility of offering a dental benefit plan to
its beneficiaries. Accordingly, the Committee has included a general
provision (sec. -) that would authorize a special demonstration test
during which CHAMPUS could spend up to $50 million during the fis-
cal year to provide preventive and basic restorative dental care. The
Committee further directs CHAMPUS to obtain information on
beneficiary utilization patterns and on potential comprehensive dental
benefit package offerings.
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COMPETrrIvE RATE PROGRAM.
The Committee recommends the inclusion of a general provision to
prohibit the obligation of funds under the competitive rate program of
the Department of Defense for the transportation of household goods
to or from Alaska and Hawaii. This provision has been included in
every Defense Appropriation Act since fiscal year 1979. Despite repeti-
tive action and a recent General Accounting Office report which ques-
tions the value of the competitive rate program, the Department has not
attempted to develop a policy which is both competitive in nature and
commercially acceptable. In recognition of this impasse, the Committee
directs the Military Traffic Council of the Department of Defense to
review proposals )f the moving industry with the objective of develop-
ing an alternative rate program to improve competition in the house-
hold shipment industry. A report on the findings of this review is ex-
pected by March 15, 1982.
FEDERAL EMPLOYEE INJURY COMPENSATION SYSTEM
Since the fiscal year 1979 Defense Appropriation Act, in each succes-
sive year the Congress has adopted a provision to limit payments that
the Department of Defense may make to the Department of Labor for
the Federal employee compensation fund. These provisions have been
included in recognition of the excessively large percentage increases for
such payments from year to year. The attempt has been to reduce the
amount paid by the Department of Defense into the employee compen-
sation fund to an amount equal to the average cost increase of the
direct labor for that year. The Committee concurs with other proposals
to constrain such payments to a level of $206.1 million which allows for
an approximate increase of 7 percent from the fiscal year 1981 level.
Section 735 of the bill contains this limitation.
FORMAT OF COMMITTEE RECOMMENDATIONS
The Committee recommendations for the operation and maintenance
accounts of this report are organized by program package to illustrate
the variety and types of programs financed through these accounts.
Changes to the budget and a comparative fiscal year 1981 program are
reflected by these program packages in order to demonstrate the extent
to which the Committee has reviewed these programs. Regardless of
any other proposals to the contrary, the inclusion of this level of detail
does not suggest a new reporting requirement for the Department of
Defense.
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OPERATION AND MAINTENANCE, ARMY
1981 appropriation ................................................................................................. S13.160.533,000
1982 budget estimate ............................................................................................. 15,207,500,000
House allowance .....................................................................................................
Committee recommendation ................................................................................. 15,351,400,000
The Committee recommends an appropriation of $15,351,400,000.
This is $143,900,000 above the budget estimate.
This appropriation provides for the activities of the active Army, in-
cluding the pay of civilian personnel, operation and maintenance of
aircraft, equipment and bases, training, direct care medical programs,
and all associated activities.
The following detail table provides a program comparison of the
Committee recommendations to the budget request.
[In thousands of dollars]
1981 Budget Committee
enacted amount estimate recommendation
GENERAL PURPOSE FORCES
Unified commands ..................................... $6,766 $7,749 $7,749
Alaska forces ............................................. 13,323 13,891 13,891
Europe forces ............................................ 765,951 1,046,904 1,015,809
Pacific forces ............................................. 170,557 211,201 211,201
South forces .............................................. 6,457 6,722 6,722
CONUS forces-FORSCOM ...................... 546,681 735,762 721,202
Other CONUS forces ................................ 148,861 197,117 197,117
JCS directed and coordinated exer-
cises ........................................................ 51,584 79,623 79,623
Combat development activities ................ 126,447 175,214 175,214
Base operations:
FORSCOM and other CONUS .......... 469,976 525,114 525,114
Real property maintenance (RPMA)-
United States ................................... 395,832 512,589 576,589
Europe ................................................. 535,191 672,382 612,382
RPMA-Europe ................................... 640,275 859,954 919,954
Pacific .................................................. 183,359 232,464 229,864
RPMA-Pacific .................................... 196,916 226,941 239,941
Economic assumptions .................................................... -166,800 - 166,800
INTELLIGENCE AND
COMMUNICATIONS
Worldwide military command and CON
system-ADP .......................................... 8,730 16,638 16,638
Traffic control and landing systems ....... 19,564 23,318 23,318
Foreign counterintelligence ...................... 5,952 6,135 6,135
Security and investigative activities ........ 12,128 12,277 12,277
Management headquarters-other........... 20 ...............................................
Base operations:
Other .................................................... 2,812 3,944 3,944
RPMA-other ...................................... 2,484 3,217 3,217
Missidn-info in separate intelligence
justification book .................................... 120,235 143,820 140,520
Base operations:
Intelligence .......................................... 2,447 1,624 1,624
RPMA-intelligence ............................ 3,788 5,379 5,379
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Worldwide military and CON system
(WWMCCS) Facility ................................
11,335
7,764
7,764
Long haul communications ......................
2731738
302,237
302,237
Communications security ..........................
18,832
18,428
18,428
Management headquarters-communica-
tions .........................................................
27,695
28,544
28.544
Base communications ...............................
144,898
200,595
200,595
Base operations:
Communications .................................
33,976
36,601
36,601
RPMA-Communications ...................
27,239
23,643
23,643
CENTRAL SUPPLY AND
MAINTENANCE
Supply depot operations ..........................
558,646
683,327
673,527
Supply management operations ..............
163,326
173,242
165,957
Central procurement activities .................
166,435
207,910
207.910
Logistics administration support ..............
101,464
123,688
123,688
Audiovisual support-logistics element...
3,892
3,161
3,161
Resale commissaries .................................
166,100
171,782
171,782
Troop issue subsistence activities...........
22,098
28,087
28,087
Management headquarters .......................
110,431
106,426
106,426
First destination transportation ................
40,222
28,831
28,831
Second destination transportation...........
799,804
965,203
953,745
Industrial preparedness operations .........
112,666
111,166
111,166
Logistics support activities .......................
184,770
167,503
167,503
Overseas port units ...................................
53,697
62,850
62,550
Real estate administration and construc-
tion supervision ......................................
56,295
60,219
60,219
Base operations .........................................
154,453
159,748
157,248
Base operations RPMA ...........................
124,546
134,893
155,893
Depot maintenance ...................................
955,320
1,070,855
1,070,855
Maintenance support activities ................
377,239
411,167
393,565
TRAINING AND MEDICAL
Recruit training ..........................................
8,773
9,881
9,881
One station training ..................................
22,224
32,950
32,950
Officer acquisition .....................................
25,678
28,802
28,802
Senior ROTC ..............................................
40,605
45,775
45,775
Specialized training ...................................
159,982
174,012
174,012
Flight training .............................................
105,198
113,811
113,811
Professional education ..............................
26,907
33,144
33,144
Training support ........................................
299,680
330,781
328,981
Base operations:
Training ...............................................
462,097
532,685
531,285
RPMA-training ...................................
406,432
468,740
510,740
Care in reg defense facilities ...................
278,646
289,380
289,380
Station hospitals and medical clinics .....
366,281
428,972
4281972
Dental care activities ................................
54,636
54,800
54,800
Care in nondefense facilities ...................
42,203
43,064
43,064
Education and training-health care ......
51,335
53,050
53,050
Command-health care ............................
8,791
8,704
8,704
Recruiting and examining ........................
14,589
15,360
15,360
Other medical activities ............................
101,171
105,192
105,192
Audiovisual support ...................................
4,120
5,545
5,545
Base operations:
Medical ................................................
21,792
22,459
22,459
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RPMA-medical ..................................
38,606
40,722
40,722
Recruiting activities ...................................
105,889
132,701
132,701
Advertising activities .................................
58,978
67,770
67,770
Examining activities ...................................
33,216
45,151
45,151
Other personnel activities .........................
23,611
28,446
28,466
Civilian education ......................................
69,598
75,271
75,271
Junior reserve officer training program..
14,958
14,690
14,690
Army continuing education system .........
106.619
127,390
127,390
Audiovisual support ...................................
8,957
8,606
8,606
Subtotal ............................................
2,961,572
3,337,854
3,376,654
ADMINISTRATION AND
ASSOCIATION ACTIVITY
Department headquarters support ...........
93,177
89,294
89,294
Personnel administrative support ............
91,617
108,784
108,784
Public affairs ..............................................
7,927
7,603
7,603
Criminal investigation activities.., .............
16,174
18,677
18,677
Servicewide support ..................................
534,925
615,203
612,203
Audiovisual support ...................................
4,779
4,396
4,396
Base operations .........................................
36,271
35,855
35,855
Base operations-RPMA ...........................
26,107
31,995
31,995
Subtotal ............................................
810,977
911,807
908,807
MILITARY ASSISTANCE ACTIVITY
International military headquarters and
agencies ..................................................
108,177
114,553
114,553
Miscellaneous support of other nations.
2,505
2,237
2,237
Subtotal ............................................
110,682
116
790
116
790
,
Inflation adjustment ..................................................................................
,
110,600
COMMITTEE ADJUSTMENTS
Specific program adjustments recommended by the Committee are as
follows:
Force modernization/operational support.-Based on the current pro-
jection of systems requiring operational support, fewer M-1 tanks and
support vehicles will be fielded than originally assumed in the amended
request. In addition, operation and maintenance costs appear to be
overstated, except in the training base, for the infantry/cavalry fighting
vehicles, Hawk missile, TACFIRE, and truck programs. Current pro-
jections appear to be reliable due to the impressive upgrade to cost
estimating procedures in the Army modernization information memor-
andum (AMIM) and the modernization resource information submis-
sion (MRIS) reviews. The Committee recommends a reduction of $60
million to reflect this reevaluation of requirements.
Pre-positioning of material in configured unit sets (POMCUS).-The
amended budget request includes funding for tool kits and repair parts
in advance of planned fiscal year 1983 initiatives to process equipment
for POMCUS Division set 5. In light of ongoing negotiations with the
Federal Republic of Germany to determine the extent of wartime host
nation support, the Committee feels that it is ill advised to revise cur-
rent plans for the POMCUS program at this time.- Regardless of any
proposals to the contrary, the Committee recommends funding at the
budget request.
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Civilian personnel.-The Committee recommends a reduction of $60
million which is the estimated cost to add 5,000 civilians to convert
military positions. Current restrictions on United States direct hire and
foreign national indirect hire civilian end strength ceilings preclude the
use of funds for additional personnel.
Base level commercial equipment.-Current restrictions limit the pur-
chase of items with a unit cost in excess of $3,000 to the investment ap-
propriation accounts. The Committee recommends the reduction of
$23.3 million to reflect the transfer of such items from the operating ac-
count to the investment account.
Supply depot operations.-The Army requested funding to handle and
store 80,000 short tons of ammunition shipments to Europe. However,
the existing storage capacity in Europe could only accommodate ship-
ments of 50,000 short tons. Therefore, it is recommended that the re-
quest be reduced $17.1 million to reflect actual funding requirements
for transportation of ammunition to Europe.
Base operations.-Other pending proposals recommend the reduction
of funds for base operations functions related to quality of life improve-
ments, upgrades for facilities in Korea, vehicle maintenance projects in
Hawaii, and other real property maintenance initiatives. The Committee
views any reductions to the perennially underfunded base operations ac-
counts as undesirable in the absence of further justification.
SUMMARY OF COMMITTEE ADJUSTMENTS
Committee adjustments to the budget estimate, including those not
specifically addressed in this report, are summarized in the following
table:
Operational support ................................................................................................ - $60,000,000
Civilian personnel .................................................................................................... - 60,000,000
Base level commercial equipment ........................................................................ - 23,300,000
Ammunition handling-Europe ............................................................................ - 17,100,000
Inflation ..................................................................................................................... +110,600,000
DOL payments...- ................................................................................................... -3,000.000
Real property maintenance .................................................................................... + 200,000,000
ARMY STOCK FUND
1981 appropriation ....................................................................................................... $34,000,000
1982 budget estimate ................................................................................................... 211,300,000
House allowance ...........................................................................................................
Committee recommendation ............................................................................:.......... 211,300,000
This appropriation provides for the purchase of war reserve material.
The Army Stock Fund purchases consummable items-repair parts,
clothing, and other materials-and holds them for use in the event of
an outbreak of hostilities.
The Committee recommends an appropriation of $211,300,000, the
same as the budget estimate.
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OPERATION AND MAINTENANCE, NAVY
1981 appropriation ................................................................................................ S17,728,799,000
1982 budget estimate ............................................................................................ 19,611,170,000
House allowance ................................................................................................................................
Committee recommendation ................................................................................ 19,880,389,000
The Committee recommends an appropriation of $19,880,389,000.
This is $269,219,000 above the budget estimate. This appropriation pro-
vides for the activities of the active Navy, including the pay of civilian
personnel, operation and maintenance of aircraft, vessels, equipment
and bases, training, direct care medical programs, and all associated
activities.
The following detail tabl: provides a program comparison of the
Committee recommendations to the budget request.
[In thousands of dollars]
1981 Budget Committee
enacted amount estimate recommendation
STRATEGIC FORCES
FBM ship:
Operations ...........................................
Charter .................................................
Maintenance and mod .......................
FBM supporting programs ........................
Strategic weapons systems ......................
Trident system operational support .........
Trident command and management .......
Fleet command (FBM) ..............................
FBM airborne communications ................
FBM ship/shore communications ............
Missile and space defense .......................
Activations/inactivations ...........................
Base operations .........................................
Less fiscal year 1982 anticipated pay
$74,067
30,045
652,526
15,054
455,248
130,212
3,880
3,760
18,399
17,857
$80,232
24,709
517,555
15,648
478,397
219,112
4,225
3,670
27,598
18,380
$80,232
24,709
517,555
15,648
478,397
219,112
4,225
3,670
27,598
18,380
7,065 7,363 7,363
3,535 ...............................................
97,035 86,157 86,931
-7,822 -7,822
-3,000 -3,000
GENERAL PURPOSE FORCES
TACAIR/ASW ............................................. 1,040,889 1,137,935 1,153,935
Fleet air operations support ..................... 156,399 144,210 144,210
Air logistic support ships ......................... 3,667W 3,580 3,580
General purpose ship:
Operations ........................................... 1,935,404 2,189,384 2,231,384
Chart ..................................................... 382,212 423,199 423,199
Maintenance and mod ....................... 3,367,823 3,936,825 3,938,725
Operations support ............................ 31,717 30,805 30,805
Base operations ......................................... 1,282,177 1,291,077 1,320,935
Air special support .................................... 23,184 26,980 26,980
Construction battalion operations ........... 36,007 38,925 38,925
Special combat support ............................ 39,076 39,672 39,672
Fleet 'air:
Training ............................................... 241,793 271,409 271,409
Training support ................................. 15,605 16,649 16,649
Fleet ship training support ....................... 3,791 4,218 4,218
Fleet comands and staffs ......................... 114,755 208,647 208,647
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Unified commands .....................................
20,079
22,483
22,483
Undersea surveillance programs .............
10,160
13,234
13,234
Cruise missile .............................................
6,999
13,283
13,283
JCS directed and coord. exercises.........
8,194
18,663
18,663
Naval command and control system.......
23,036
27,374
27,374
Foreign currency .......................................
Less fiscal year 1981 anticipated pay
Depot level repairable credits ..................
CPETE credits ...................................................................
-6,600
-6,600
Economic assumptions ....................................................
-53,000
-53,000
Subtotal ............................................
8,664,667
9,692,675
9,782,433
INTELLIGENCE AND
COMMUNICATIONS
Consolidated cryptological program........
73,342
77,758
77,977
General defense intelligence program....
85,471
98,850
98,850
Foreign counterintelligence ......................
2,589
3,294
3,294
Special activities ........................................
40,883
50,009
50,009
Station operations (T & CCP) ..................
52,727
62,904
62,904
Leased communications IT & CCP)........
102,540
117,860
117,860
Equipment installation (T & CCP) ...........
23,079
35,059
35,059
Communications security ..........................
14,282
14,046
14.046
Other telecommunications ........................
358
406
406
Worldwide military command and con-
trol ...........................................................
14,229
14,597
14,597
Management headquarters (T & CCP)..
6,025
6,403
6,403
Environmental support for strategic sys-
tems .........................................................
52,034
56,193
56,193
Environmental support for TAC and sur-
veillance system .....................................
45,791
54,728
54,728
Environmental support for navigation
and chart ................................................
25,546
22,446
22,446
Prediction support to command and
control .....................................................
11,591
11,723
11,723
Naval investigative service .......................
26,728
30,796
30,796
Naval observatory ......................................
4,442
4,676
4,676
Base operations .........................................
102,426
109,457
111,550
Subtotal ............................................
683,083
771,205
773,517
CENTRAL SUPPLY AND
MAINTENANCE
Aircraft rework and maintenance
(NASC) ....................................................
1,388,492
1,474,115
1,474,115
Air launched weapons rework (NASC)...
57,274
78,089
78,089
Calibration (NASC) ....................................
47,187
59,698
59,698
Ground support equipment rework
(NASC) ....................................................
50,376
76,113
76,113
Other aviation support (NASC) ................
18,593
24,818
24,818
Procurement operations (NASC) .............
31,447
31,062
31,062
Command and administration (NASC) ....
14,304
14,884
14,884
Operational support-field (NASC) ............
54,338
53,847
53,847
Industrial preparedness (NASC) ..............
1,351
1,841
1,841
Inactive aircraft storage and disposal
(NASC) ....................................................
2,074
1,885
1,885
Field operations (NASC) ...........................
104,294
110,897
110,897
Logistic support services (NASC)............
50,866
70,833
70,833
Maintenance engineering and support
services (NASC) .....................................
52,574
58,819
58,819
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Material management and information
system (NASC) .......................................
1,867
1,441
1,441
Operational equipment/system testing
(NASC) ....................................................
21,145
21,041
21,041
Technical support (NASC) ........................
76,140
115,325
115,325
ASW technical support (NASC) ...............
11,793
6,740
6,740
Base operating support (NASC) ..............
9,018
11,775
11,775
RSS & I (NSSC) ........................................
51,179
56.064
56,064
Procurement operations (NSSC) ..............
173,937
186,584
186,584
Command (NSSC) .....................................
27,951
27,234
27,234
Operational support (NSSC) .....................
102,783
100,521
100,521
Industrial preparedness (NSSC ................
1,871
2,496
2,496
Field operations (NSSC) ...........................
45,438
48,390
48,390
Logistics support services (NSSC)..........
19,803
19,549
19,549
Operational equipment/system test
(NSSC) ....................................................
11,014
13,418
13,418
Salvage (NSSC) .........................................
6,670
6,320
6,320
Material management and information
system (NSSC) .......................................
23,316
18,087
18,087
SMS logistics and maintenance
(NSSC) ....................................................
78,699
115,331
115,331
Search radar (NSSC) ................................
22,265
30,922
30,922
Maintenance eng and spt services
(NSSC) ....................................................
16,492
24,933
24,933
Ships and ordnance maintenance act.
(NSSC) ....................................................
25,850
26,994
26,994
Improvement of operational equipment
system (NSSC) .......................................
34,479
42,411
42,411
ASW support (NSSC) ................................
84,890
107,682
107,682
Inact ships maintenance facility
(NSSC) ....................................................
6,630
6,976
6,976
Major equipment support (NSSC) ...........
30,386
49,837
49,837
Nuclear prop tech logistics (NSSC)........
32,998
36,188
36,188
Maintenance systems (NSSC) ..................
15,176
17,668
17,668
Electronic support (NSSC) ..............................................
210
210
Technical support (NSSC) ........................
60,511
76,892
76,892
Surface ordnance maintenance support
(NSSC) ....................................................
18,042
24,541
24,541
Planning and engineering pera (NSSC) .
15,092
17,925
17,925
Surface ordnance rework (NSSC)...........
34,164
58,067
58,067
Shipbuilding/electric national rework
(NSSC) ....................................................
147,202
83,409
83,409
Calibration (NSSC) ....................................
10,451
15,227
15,227
AS/ASW maintenance support (NSSC)..
91,044
144,928
144,928
Other sea maintenance support
(NSSC) ....................................................
42,705
45,460
45,460
Base operations:
RPMA (NSSC) .....................................
22,783
26,533
26,533
Other (NSSC) ......................................
3,373
8,129
8,129
Command and administration (NESC) ....
5,490
6,342
6,342
Field operations (NESC) ...........................
24,655
23,487
23,487
Operational support-field (NESC) ............
17,663
17,247
17,247
Procurement operations (NESC) ..............
18,845
18,972
18,972
Air station electrical system (NESC).......
22,034
34,605
34,605
Shipboard electrical system support
(NESC) ....................................................
7,254
7,251
7,251
Tactical electromagnetic programs
(NESC) ....................................................
13,696
17,225
17,225
Remote sensors (NESC) ...........................
6,162
6,608
6,608
Shipboard electrical national rework
(NESC) ....................................................
27,448
14,648
14,648
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Calibration (NESC) .................................... 19,777 29,052 29,052
Other electrical maintenance support
(NESC) .................................................... 9,800 6,331 6.331
Industrial preparedness (NESC) ............... 494 492 492
Logistic support services (NESC)............ 2,701 2,885 2.885
Maintenance engineering and support
services (NESC) ..................................... 10,120 10,511 10,511
Shipboard surveillance (NESC) ................ 31,552 37,722 37,722
Electronic support (NESC) ....................... 16,914 16,901 16,901
Undersea surveillance (NESC) ................. 87,191 102,142 102,142
Base operations (NESC) ........................... 4,091 4,360 4,360
Supply depots (NSUPSC) ......................... 162,777 182,425 182,425
Inventory control points (NSUPSC)......... 154,558 169,502 169,502
Procurement operations (NSUPSC)......... 28,447 31,370 31,370
Commissary stores (NSUPSC) ................. 59,552 62,985 62,985
Command (NSUPSC) ................................ 21,297 22.177 22,177
Transportation (NSUPSC) ......................... 402,826 413,314 413,314
Base operations:
RPMA (NSUPSC) ................................ 51,370 51,274 51,274
Other (NSUPSC) ................................. 63,700 65,320 65.320
Command (NFEC) ...................................... 13,787 14,350 14,350
Engineering field division (NFEC)............ 44,142 46,126 46,126
Facilities logistic support (NFEC) ............ 42,466 82,139 82,139
Base operations (NFEC) ........................... 125,178 172,269 223,982
Command (CNM) ....................................... 30,241 31,887 26,887
Field operations (CNM) ............................. 11,870 18,258 18,258
Employee comp fund (CNM) .................... 84,800 98,820 86,820
Navy ind. and stock fund support
(CNM) ...................................................... 204,256...............................................
Base operations (CNM) ............................. 262 263 263
Navy regional data automation centers
(CNO) ...................................................... 75,366 93,897 93,897
Logistic support services (CNO) .............. 4,921 8,858 8,858
Base operations (CNO) ............................. 7,575 7,306 7,306
TRN, MED, OTHER GP
Recruit training .......................................... 3,003 3,243 3,243
Specialized skills ....................................... 75,827 84,133 84,133
Officer acquisition :.................................... 32,848 35,499 35,499
Professional development and educa-
tion .......................................................... 16,268 15,940 15,940
NROTC ........................................................ 21,795 23,702 23,702
Flight training ............................................. 173,761 210,782 209,582
Routine maintenance ................................ 19,318 22,461 22,461
Other training support .............................. 109,997 144,968 144,968
Care, regional defense facilities .............. 92,500 98,971 98,971
Station hospitals and medical clinics ..... 113,114 137,268 137,268
Dental care activities ................................ 10,432 11,048 11,048
Care in nondefense facilities ................... 42,327 45,952 45,952
Other health activities ............................... 28,242 28,080 28,080
Education and training health care ........ 22,314 26,124 26,124
Command-health care ............................... 6,856 7,091 7,091
Recruiting activities ................................... 62,521 66,955 66,955
Advertising activities ................................. 20,214 22,180 22,180
Other personnel services ......................... 56,170 62,024 62.024
Off-duty voluntary education .................... 20,232 22,833 22,833
Civilian education ...................................... 14,339 15,892 15,892
NJROTC ...................................................... 4,299 4,678 4,678
Base operations ......................................... 531,395 568,024 579,286
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ADMINISTRATION AND ASSOCIATION
ACTIVITY
SECNAV staff offices ................................
25,256
25.148
25,148
CNO staff offices .......................................
22,921
25,315
25,315
Navy finance activities ..............................
65,157
71,346
71,346
Navy audit service .....................................
18,859
18,963
18,963
Board of Inspection and Survey ..............
1,292
1,850
1,850
Naval data automation command............
8,449
8,863
8,863
Naval Safety Center ..................................
4,368
4,509
4,509
Naval Historical Center .............................
1,612
1,746
1,746
Judge Advocate General-field ..................
2.032
2,191
2.191
Naval Legal Services Offices ...................
4,414
4,719
4,719
Public affairs ..............................................
2,192
2,264
2,264
Historical ships ..........................................
666
999
999
OPNAV support activity ............................
5,300
5,380
5,380
Consolidated civilian Personnel Offices .
8,650
8,602
8,602
Naval civilian personnel command-field .
7,341
8,591
8,591
Navy manpower and national analysis
centers ....................................................
14,775
16,339
16,339
Management headquarters .......................
11,157
12,558
12,558
Naval military personnel command .........
51,494
56,625
56,625
Enlisted Personnel Management Center.
3,251
3,251
3,251
Navy family allowance activity .................
1,995
2,032
2,032
Navy personnel evaluation boards ..........
3,539
3,622
3,622
Human Resources Management Center.
217
248
248
Base operations .........................................
100,091
108,806
108,806
Payments for postal services ...................
35,293
37,257
37,257
Vice President's grounds support ...........
162
168
168
White House/MCDEC helicopter sup-
port ..........................................................
3,153
3,477
3,477
Congressional travel ..................................
89
112
112
NCR facilities and services staff .............
616
602
602
Subtotal ............................................
404,341
435,583
435,583
International headquarters and agen-
cies ..........................................................
148
165
165
OTHER ADJUSTMENTS
Contract consultant support ...................................................................
-70,000
Inflation adjustment ..................................................................................
201,600
Specific program adjustments recommended by the Committee are as
follows:
Maritime pre-positioning ship program (TAK-X).-The latest budget
revision proposed a chartering program to lease ships at a cost of $60
million for fiscal year 1982. However, the Navy did not substantiate the
request or provide any outyear estimates to assess the relative advantage
of charter versus purchase. Accordingly the authorization conference
committee specifically denied the request. Therefore, the Committee
recommends that this amount be deleted from the budget request.
Ship operations.-Navy reduced ship steaming hours by $173 million
in the last budget revision which partially draws down commitments in
the Indian Ocean. Other proposals have been recommended to restore
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$100 million to yield roughly 1 more hour per quarter for ship steaming
hours. Recommend the addition of $100 million for this purpose.
Other sea maintenance support.-Without regard to any other pro-
posals to the contrary, the Committee recommends that funds be
provided at the budget request level for the overhaul of crew berthing
barges. Failure to overhaul these barges would force the Navy to assign
fewer ships' crews to the barges, and seek alternative accommodations
away from the industrial facility at a greater expense. Due to the cost in-
efficient alternative, the Committee recommends support of this pro-
gram at the budget request.
Leased satellite communications (LEASAT program).-Navy has iden-
tified advance funding need of $59 million for LEASAT due to a
change in the financing procedures and leasing agreements. Although
this item was identified prior to budget revisions, the Navy did not re-
quest any change in funding authority to accommodate this priority. In
view of the conference authorization action, the Committee recom-
mends that the Navy fund this priority within appropriation funding
available.
Stores ship "Tarbatness".-The revised budget request provides for
funding to lease the stores ship Tarbatness from the British Gov-
ernment. Due to the current requirement for additional stores of ships,
and regardless of any proposals to the contrary, the Committee recom-
mends that funding be provided at the budget request.
Ship overhaul-DD-976 U.S.S. "Merrill".-As a direct consequence
of the Navy's decision to reactivate the U.S.S. New Jersey at the Long
Beach Naval Shipyard, the Navy was forced to reassign a number of
ship overhauls which had been planned for this yard prior to that deci-
sion. Consequently, the Merrill overhaul was slipped to fiscal year 1984.
In view of this action the Committee recommends that $16.4 million be
deleted from the request to reflect the realinement of this overhaul
beyond fiscal year 1982. Funds are provided for a short industrial
period to install the Tomahawk missile system on this ship. Further, the
Committee views any increases to the cost of overhauls reassigned from
this shipyard as a direct cost associated with the decision to reactivate
U.S.S. New Jersey.
Naval Arctic Research Laboratory.-The Committee recommends a
reduction of $4.3 million to reflect the reversal of the decision to trans-
fer control of this facility from the Navy to the Department of the
Interior. This amount had been requested to assume the cost of closure
and transportation of equipment from this lab.
Ship overhaul change orders and advanced funding.-Beginning in fis-
cal year 1983 the Committee directs that the Navy budget for ship
change orders in the same fiscal year in which the ship is inducted.
Further, the Navy should finance the procurement of all long-lead
materials through the stock fund to be provided in the same fiscal year
in which a ship enters an industrial facility. The effect of this recom-
mendation will be to improve the accountability of fiscal year funding
provided for ship maintenance. Unlike prior year programs, as of fiscal
year 1983 all costs associated with ship overhauls and repair will be
charged to the same fiscal year funding as the year that the ship enters
overhaul. The recommendation to defer implementation of this financ-
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ing procedure has been made in recognition of the adjustments neces-
sary to accommodate this effort in the fiscal year 1983 budget sub-
mission.
S-3 flying hours.-Committee recommends the reduction of $9 mil-
lion from the S-3 aircraft flying hour program due to avionics
equipment and maintenance problems which will preclude the ac-
complishment of the full flying hour program.
Helo maintenance.-It is recommended that $1.2 million be reduced
from the request to reflect actual contract cost vice budget estimates for
the maintenance of helicopters.
Flying hour program.-Committee recommends the addition of $25
million to raise the number of flying hours beyond the constrained
program currently budgeted. This recommendation considers current
tensions in the Mediterranean and Indian Oceans.
Barge operations-Diego Garcia.-Without regard to any proposals to
the contrary, the Committee recommends a funding level at the budget
request for barge operations on Diego Garcia. Navy conducts all servic-
ing of logistics in transports ships from barges assigned to this island
base.
Transfer of ammunition ships from reserve to active fleet.-The Com-
mittee recommends that $20.3 million be added to the budget request
to reflect the realinement of funding for Navy ammunition ships which
had been tranferred from the reserve to the active fleet. Funds will
provide for the operation of the Mauna Kea and Pyro.
Chief of naval material-(CNM) headquarters.-This is the head-
quarters operation of Navy acquisition and logistics functions. As such,
it is the parent command of a multitude of specialized systems com-
mands, engineering laboratories and performs as the overall corporate
management of systems procurement and resources. CNM headquarters
performs very few direct line management functions, but acts as a
review and oversight authority. A variety of internal Navy, Office of the
Secretary of Defense and congressional reviews have questioned the
possible duplication of CNM headquarters as it relates to subordinate
commands and its relative impact on the overall program it was
designed to manage.
In light of this continued speculation, the Committee directs the De-
partment of Defense to develop a report in conjunction with the Navy
which: examines the role of the CNM headquarters, excluding the
Consolidated Civilian Personnel Office, Strategic Systems Project Office,
and the Joint Cruise Missile Project Office; proposes several organiza-
tional alternatives to the present CNM headquarters concept; and ad-
dresses the specific alternative of disestablishment of this headquarters
by the end of fiscal year 1983. It is requested that this report be pro-
vided to the Committee by February 1, 1982. In the interim, reduction
of $5 million is recommended to cancel the emphasize on headquarters
control of cost estimating and analysis, reduce management support
contracts of CNM headquarters and associated project managers, and a
decrease of civilian personnel as planned by the CNM headquarters.
Commander-In-Chief, Naval Forces, Europe.-The Commander-In-
Chief, U.S. Naval Forces, Europe (CINCUSNAVEUR) performs a
number of functional roles including operational control of the 6th
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Fleet, and supervises the Navy shore activities in Europe. Despite num-
erous attempts to reduce management headquarter staffs, this organi-
zation is growing despite the overall management headquarters trend of
negative or no growth. Regardless of any other proposal to the contrary,
the Committee supports funding at the budget request, yet it is the
Committee's intention to examine this growth pattern during the up-
coming fiscal year 1983 budget reviews.
Committee adjustments to the budget estimate, including those not
specifically addressed in this report, are summarized in the following
table:
Committee
recommendation
Maritime prepositioning ship program (T-AKX) ............................................. - $60,000,000
Ship operations ........................................................................................................ + 100,000,00
U.S.S. Merrill ........................................................................................................... - 16,400,000
Naval Arctic Research Laboratory ....................................................................... -4,300,000
S-3 flying hours ...................................................................................................... 9,000,000
Helo maintenance .................................................................................................... -1,200,000
Flying hours ............................................................................................................. + 25,000,000
Contract consultants ................................................................................................ -70,000,000
Ammunition ships ................................................................................................... + 20,300,000
DOL payments ........................................................................................................ -12,000,000
Inflation ..................................................................................................................... +201,600,000
Real property maintenance .................................................................................... + 100,000,000
Management headquarters-(CNM-HQ) ............................................................ -5,000,000
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NAVY STOCK FUND
1981 appropriation ..................................................................................................... 5309,000,000
1982 budget estimate ................................................................................................. 17,435,000
House allowance .........................................................................................................
Committee recommendation ..................................................................................... 17,435,000
This appropriation provides for the purchase of war reserve material.
The Navy Stock Fund purchases consummable items-repair parts,
clothing, and other materials-and holds them for use in the event of
an outbreak of hostilities.
The Committee recommends an appropriation of $17,435,000, the
same as the budget estimate.
OPERATION AND MAINTENANCE, MARINE CORPS
1981 appropriation ............................................................................................... $1,072,206,000
1982 budget estimate ........................................................................................... 1,176,940,000
House allowance ...................................................................................................
Committee recommendation ............................................................................... 1.186,440,000
The Committee recommends an appropriation of $1,186,440,000. This
is $9,500,000 above the budget estimate.
This appropriation provides for the activities of the active Marine
Corps, including the pay of civilian personnel, operation and main-
tenance of aircraft, equipment and bases, training, and all associated ac-
tivities.
The following detail table provides a program comparison of the
Committee recommendation to the budget request.
[In thousands of collars]
1981 Budget Committee
enacted amount estimate recommendation
GENERAL PURPOSE FORCES
Land forces ................................................
$220,796
$216,903
$216,903
Naval forces ...............................................
7,098
10,282
10,282
Tactical air forces .....................................
32,118
32,788
32,788
Base operations-forces ...........................
401,652
459,801
459,801
Base communications-forces .................
10,274
9,993
9,993
Economic assumptions ....................................................
-3,000
-3,000
Subtotal ............................................
671,938
CENTRAL SUPPLY AND MAINTENANCE
Supply depot operations ..........................
30,785
31,621
31,621
Inventory control point .............................
12,893
14,833
14,833
Transportation of things ...........................
30,114
37,372
37,372
Centrally managed programs ...................
28,860
29,440
29,440
Commissary stores operations .................
11,893
12,074
.12,074
Equipment maintenance ...........................
56,741
60,785
60,785
Base operations-supply and main-
tenance ...................................................
40,299
41,492
41,492
Base ? communications-supply and
maintenance ...........................................
1,330
1,909
1,909
Subtotal ............................................
212,915
229,626
229,526
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TRAINING AND MEDICAL
Recruit training ..........................................
3.975
4,248
4,248
Specialized skill training ...........................
7,273
7,498
7,498
Professional development .........................
1,138
1,165
1,165
Officer acquisition .....................................
243
236
236
Flight training .............................................
47
51
51
Training support ........................................
13,409
15,005
15,005
Recruiting ...................................................
31,227
35,472
35.472
Advertising ..................................................
13,719
13,217
13,217
Off-duty education .....................................
5,175
4,476
4.476
MCJROTC ...................................................
1,668
1,735
1,735
Other personnel support ..........................
751
764
764
Base operations-training .........................
73,149
76,946
76.946
Base communications-training ...............
1,371
1,467
1,467
ADMINISTRATIVE AND ASSOCIATION
ACTIVITIES
Departmental administrative .....................
4,246
4,310
4,310
Nondepartmental administrative ...............
15,912
16,248
16,248
Other administrative ..................................
29,985
32,878
32,878
Base operations-administrative ..............
5,122
3,508
3,508
Base communications-administrative ....
1,243
1,323
1,323
OTHER ADJUSTMENTS
Inflation adjustment ..................................................................................
9,600
All Committee recommended adjustments to the budget estimate, in-
cluding those not specifically addressed in this report, are summarized
in the following table:
committee
recommendation
DOL payments .......................................................................................................... _S100'000.
Inflation adjustment .................................................................................................. +9,600,000
MARINE CORPS STOCK FL'D
1981 appropriation ....................................................................................................... 84,108,000
1982 budeet estimate ................................................................................................... 13,334,000
House allowance ...........................................................................................................
Committee recommendation ....................................................................................... 13,334,000
This appropriation provides for purchase of war reserve material. The
Marine Corps Stock Fund purchases consummable items-repair parts,
clothing, and other materials-and holds them for use in the event of
an outbreak of hostilities.
The Committee recommends an appropriation of $13,334,000, the
same as the budget estimate.
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OPERATION AND MAINTENANCE, AIR FORCE
1981 appropriation ................................................................................................ S14.769.614.000
1982 budget estimate ............................................................................................ 16.696.076.000
Committee recommendation ................................................................................ 16.903.069.000
The Committee recommends an appropriation of $16,903,069,000.
This is $206,993,000 above the budget estimate.
This appropriation provides for the activities of the active Air Force,
including the pay of civilian personnel, operation and maintenance of
aircraft, equipment and bases, training, direct care medical programs,
and all associated activities.
The following detail table provides a progr,,m comparison of the
Committee recommendation to the budget request.
[In thousands of dollars]
1981 Budget Committee
enacted amount estimate recommendation
STRATEGIC FORCES
Aircraft ........................................................
$1,280,178
$1,378,014
$1,389,414
Missiles .......................................................
99,475
109,426
109,426
Other offensive OPNS ...............................
58,695
62,637
59,137
Telecommunications and command con-
trol ...........................................................
89,723
113.843
113,843
Base operations ......................... :...............
513,994
561,168
586,168
Surveillance and warning-radars...........
250,073
280,066
270,666
Surveillance satellites ................................
95,315
113,246
111,246
Other defensive OPNS ..............................
126,100
137,461
- 137,461
Telecommunications and command con-
trol ...........................................................
71,591
87,743
87,743
Base operations .........................................
291,200
319,765
344,665
Subtotal ............................................
2,876,344
3,163,369
3,209,769
GENERAL PURPOSE FORCES
Tactical fighters and weapons .................
1,014,603
1,191,052
1,188,852
Tactical reconnaisance electronic war-
fare and special operations forces......
97,166
111,845
109,545
JCS exercises ............................................
200,049
299,710
299,710
Combat support .........................................
467,999
555,205
544,105
Other command and control ....................
176,512
160.946
160,946
Other tactical operations ..........................
78,166
95,515
91,815
Major range and test facilities .................
34,129-
40,637
40,637
Tactical intelligence and special ac-
tivities ......................................................
77,976
101,589
101.589
Telecommunications and command con-
trol ...........................................................
84,021
96.674
96,674
Base operations .........................................
1,081,153
1,273,730
1,314,730
Foreign currency reduction (German
mark) .......................................................
-13,000
-13,000
INTELLIGENCE AND COMMUNICATIONS
Consolidated cryptologic program ..........
92,679
95,682
95,682
General defense intelligence program
(GDIP) ......................................................
212,860
228,420
228,420
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Foreign counterintelligence program ......
2,008
2,204
2,204
Communications security program ..........
8,321
9,654
9,654
Other communications ..............................
136,724
163,008
159,008
Station operations communications ........
88.699
114,026
114,026
Leased communications ...........................
175,603
212.327
212,327
Service-wide activities ...............................
129,518
122,206
122,206
Space support ...........................................
135,127
185,530
185,530
Base operations .........................................
25,230
28,982
28,982
Subtotal ............................................
1,006,769
1,162,039
1,158,039
AIRLIFT AND SEALIFT
Assigned airlift mission .............................
505,097
557,253
557,253
Mission support .........................................
167,512
199,687
199,687
Command support .....................................
16,781
20,504
20,504
Telecommunications and command con-
trol ...........................................................
15,942
19,970
19,970
Base operations .........................................
347,556
402,522
406,522
Subtotal ............................................
1,052,888
1,199,936
1,203,936
CENTRAL SUPPLY AND MAINTENANCE
Supply depots ............................................
237,089
260,324
260,324
Inventory control .......................................
344,407
388,276
388,276
Procurement operations ...........................
120,398
140,510
140,510
Depot maintenance ...................................
2,449,801
2,655,759
2,660,259
Industrial fund/stock fund support .........
45,700
-58,591
-58,591
Transportation ............................................
470,142
579,788
579,788
Miscellaneous logistics support ac-
tivities ......................................................
157,431
189,416
189,416
Printing publications distribution .............
31,206
46,449
46,449
Test ranges ..............................................:.
182,308
214,944
209,497
Command ...................................................
56,808
57,678
57,678
Commissary operations .............................
158,657
168,799
168,799
Telecommunications and command con-
trol ...........................................................
22,300
24,527
24,527
Base operations .........................................
416,305
468,019
469,019
Inflation reduction ...................................:.
- 14,900
- 14,900
Subtotal ............................................
4,692,552
5,120,998
5,121,051
TRAINING, MEDICAL, OTHER GROUP
Recruiting and advertising .......................
50,074
53,895
53,895
Recruit and specialized training ..............
135,852
176,247
169,387
Officer acquisition .....................................
44,045
48.978
48,978
Flight training .............................................
260,030
322,876
322,876
Professional development education.......
30,708
33,921
33,921
Medical training .........................................
22,572
25,592
25,592
Other personnel activities ........................
74,333
89,308
89,308
Other training support .............................
47,944
51,173
51,173
T & CCP-training .....................................
15,846
17,729
17,729
Base operations .........................................
354,622
416,257
418,257
Hospital operations ...................................
398,446
413,254
413,254
Care in nonservice facilities .....................
21,328
30,529
30,529
T & CCP-medical ....................................
3,331
3,726
3,726
Base operations .........................................
75,637
86,043
86,043
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ADMINISTRATIVE AND ASSOCIATION
ACTIVITIES
Departmental headquarters ......................
59,825
64,107
64,107
Servicewide support ..................................
235,154
207,431
203,931
Personnel activities ...................................
34,781
38,909
38,909
Other support activities ............................
9,113
9,501
9,501
Telecommunications and command con-
trol ...........................................................
5,529
6,824
6,824
Base operations .........................................
18,649
18,629
18,629
Subtotal ............................................
363,051
345,401
341,901
MILITARY ASSISTANCE ACTIVITY
Support of other nations ..........................
5,668
20.902
20,902
Total, military assistance activity ..
5,668
20,902
20,902
OTHER ADJUSTMENTS
Inflation adjustment ..................................................................................
147,200
CONLMIITTEE ADJLSTMENTS
Specific program adjustments recommended by the Committee are as
follows:
Depot maintenance industrial fund.-The Committee has determined
that it is undesirable for the Air Force to continue to award depot
maintenance contracts in advance of appropriations and directs the Air
Force to award only those contracts for which appropriations are
currently available.
For many years the Air Force has awarded contracts to private con-
tractors for depot maintenance work financed through the industrial
fund. This practice affords the opportunity to award contracts beyond
the end of a fiscal year, but for which appropriations are not yet avail-
able. The Air Force in effect awards many contracts on the basis of an-
ticipated reimbursements.
An August 1981 General Accounting Office report questioned the
propriety of this practice, holding that obligations cannot legally be in-
curred prior to provision by Congress of appropriation authority. The
Air Force and the Department of Defense disagreed with the findings.
Regardless of the legal arguments over Air Force use of the industrial
fund, the Committee finds the practice tantamount to creating an en-
titlement and one that forecloses congressional funding decisions.
A number of alternatives were considered to midify the financial
management of this program to achieve the financing of contracts with
current appropriations. The alternative selected should accommodate
both the Air Force budget requirements and the Committee's desire to
preserve appropriation integrity. The Air Force is directed on a phased
basis to:
Award only those depot maintenance contracts for which appropria-
tions are available;
Award only those contracts based on inputs in future years which in-
clude the provision that renewal is contingent upon the availability of
future appropriations, and;
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Discontinue the financing of depot maintenance contracts through the
industrial fund.
The Committee recognizes that this approach is a dramatic departure
from current practice which will require extensive administrative adjust-
ment. However, it should be noted that this alternative should have the
least impact on the actual performance of the industrial work. Because
of the administrative difficulties involved this change should become ef-
fective in fiscal year 1983. Throughout fiscal year 1982 the Air Force
should maximize the number of contracts within current available fund-
ing and make adjustments to contracting procedures to assure a full
transition to this approach commencing in fiscal year 1983.
Training.-The March amendment included an additional $8 million
for the recruitment and training of 7,000 nonprior service enlistments.
The most recent budget revision reduced the Air Force military person-
nel end strength and eliminated 6,000 nonprior service enlistments from
the plan. The Committee recommends a reduction of $6.86 million to
reflect realinement of funding with actual training plan requirements.
Test ranges.-The Air Force maintains a number of test ranges and
launch sites for Government and nongovernment users. Nongovernment
users are charged the total cost associated with test launches, yet Gov-
ernment users are charged only the direct expense of a launch and the
Air Force assumes all overhead expenses. The Committee recommends
a decrease of $5.447 million which represents the overhead cost as-
sociated with Government use of test ranges. This recommendation
would change the Air Force financial practice to charge all users the
same rate without regard to Government or nongovernment use.
National emergency airborne command post.-The March amendment
requested funding for the proposed movement of the airborne com-
mand post primary alert aircraft. Current information indicates that the
relocation of the aircraft has been delayed beyond this fiscal year.
Therefore, a decrease of $4 million is recommended.
Alaskan Air Command real property maintenance.-The Alaskan Air
Command backlog of real property maintenance is estimated at over
$34 million which is an inordinately high share of the total Air Force
backlog for this singular command to assume. An increase of $7 million
is recommended to lower this backlog and will be used to affect needed
reapirs and improvements to the Shemya Air Force Base facilities.
Desert and mountain unit training.-The request includes $10 million
for support training of units in desert and mountain environments, yet
the Air Force has not identified the training which would be conducted
or types and quantities of aircraft that would be involved. Committee
feels that this request is redundant to other increases for training
exercises and recommends that funds be denied.
Simplified processing station.-Funds are requested for operational
costs associated with the decision to move this station of the defense
support program to an overseas location. Current information indicates
the planned movement has been canceled thereby negating the require-
ment for the additional $2 million.
Air base ground defense fights.-Regardless of any other proposals to
the contrary, the Committee recommends funding at the budget request
for Air Force initiatives to improve detection capabilities in the event of
ground attack against air bases in Europe and Korea.
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Cadin-Pinetree line air defense system.-Additional funding is re-
quested to pay the Canadian Government for the cost of radar site
operations and maintenance. Regardless of any other proposals to the
contrary, the Committee recommends concurrence with the budget re-
quest, but directs the Air Force to begin reviewing the agreement with
the Canadian Government to yield greater accountability of cost in-
curred.
Distant early warning line radar.-An additional $19.4 million is re-
quested to operate 18 DEW line radars which is a reversal of a prior
decision to phase out part of this operation. However, previous budget
information did not reflect a reduction of funds for this purpose.
Current estimates indicate that the Air Force request is overstated by
$9.4 million and is reduced accordingly.
Miscellaneous adjustments.-Committee recommends a reduction of
$4.1 million to reflect changes in funding requirements for the Rapier
air defense system, B-52 trainer and ground launch cruise missile.
B-52D retirements.-The amended budget included the recommenda-
tion to retire three B-52D aircraft squadrons and a combat training
squadron. In view of the recent improvements to these aircraft, the
Committee recommends restoring $18.9 million to retain operation of
these aircraft through this fiscal year.
Base operations support.-The Committee recommends a reduction of
$7.1 million to reflect savings as indicated in this area by the General
Accounting Office and to reduce support costs associated with the
F - 106 phasedown.
Flying hours.-A reduction of $8 milion is recommended to realine
funding estimates for the support cost of helicopter units, offsensive
training and reconnaissance aircraft programs.
Foreign exchange rate-Korean Won.-The Committee recommends
the reduction of $2 million to reflect the improved exchange rate of the
dollar to the Korean Won. Since the budget submission, rates have im-
proved to a ratio of 686 to 1. This reduction reflects savings from the
budget estimate.
Management headquarters.-The Air Force engages in a series of
innovative finacing methods in an effort to accommodate increases in
management headquarters level staff. The most unique practice is to
comingle operations funding with research and development funding to
finance the actual cost of civilian personnel and associated support ex-
penses. In addition, there has been continuing speculation and other
proposals which suggest duplicity of special management headquarters
operations. Other proposals have been advanced to examine the con-
solidation of the U.S. Readiness Command which is the parent head-
quarters of the rapid deployment joint task force and myriad of sub-
ordinate activities. In recognition of these other proposals and the un-
usual financing methodology, the Committee recommends a reduction
of $3.7 million. Despite many initiatives from the Congress to reduce
management headquarters operations, there is strong reason to believe
that these reductions have not been effected fully. It is the Committee's
intention to examine the growth of management headquarters during
the fiscal year 1983 review.
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SUMMARY OF COMMITTEE ADJUSTMENTS
Committee adjustments to the budget estimate, including those not
specifically addressed in this report, are summarized in the following
table:
Committee
Item recommendation
Training ..................................................................................................................... - S6,800,000
Test ranges ................................................................................................................ -5,447,000
National emergency airborne command post .................................................... -4,000,000
Alaskan Air Command real property maintenance .......................................... +7,000,000
Desert and mountain unit training ...................................................................... - 10,000,000
Simplified processing station ................................................................................. -2,000,000
DEW line radar systems ........................................................................................ -9,400,000
Miscellaneous reductions ........................................................................................ -4,100,000
B-52D retirements ................................................................................................... + 18,900,000
Base operations support ......................................................................................... -7,100,000
Flying hours ............................................................................................................. - 8,000,000
Foreign exchange rate ............................................................................................ -2,000,000
Management headquarters ..................................................................................... -3,700,000
DOL payments ........................................................................................................ - 3,500,000
Real property maintenance .................................................................................... + 100,000,000
Inflation ..................................................................................................................... + 147,200,000
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AIR FORCE STOCK FUND .
1981 appropriation ...................................................................................................... 528.300.000
1982 budget estimate .................................................................................................. 107,800,000
House allowance ..........................................................................................................
Committee recommendation ...................................................................................... 107,800.000
This appropriation provides for purchase of war reserve material. The
Air Force Stock Fund purchases consummable items-repair parts,
clothing, and other materials-and holds them for use in the event of
an outbreak of hostilities.
The Committee recommends an appropriation of $107,800,000, the
same as the budget estimate.
OPERATION AND MAI\-rENANCE, DEFENSE AGENCIES
1981 appropriation ................................................................................................ 54,380,816,000
1982 budget estimate ............................................................................................ 4,635,500,000
House allowance ....................................................................................................
Committee recommendation ................................................................................ 4,778,000,000
The Committee recommends an appropriation of $4,778,000,000. This
is $142,500,000 above the budget estimate.
This appropriation finances the operation and maintenance costs of
the Office of the Secretary of Defense, the Office of the Joint Chiefs of
Staff (JCS), nine Defense-wide agencies, and several field activities.
Included are funds for American Forces Information Service, Civilian
Health and Medical Program of the Uniformed Services (CHAMPUS),
Tri-Service Medical Information System (TRIMIS), Dependents Educa-
tion, Uniformed Services University of the Health Sciences (USUHS),
and the Washington Headquarters Service.
The following detail table provides a program comparison of the
Committee recommendation to the budget request.
(In thousands of dollars)
1981 Budget Committee
enacted amount estimate recommendation
OPERATION AND MAINTENANCE,
AGENCIES
Defense investigative service ...................
68,619
76,205
76,205
Defense mapping agency .........................
308,383
326,048
326,048
Defense nuclear agency ...........................
30,708
33,570
33,570
Intelligence and communications ............
1,079,026
1,172,144
1,172,144
Defense logistics agency ..........................
1,232,703
1,292,315
1,292,315
Overseas dependent education ...............
390,435
400,548
475,548
American forces information service ......
30,971
32,109
32,109
Uniformed services University of the
Health Science .......................................
22,301
25,593
25,593
Civilian health and medical progress of
the uniformed service ...........................
880,764
938,631
968.631
Medical information system ......................
37,923
46,921
46,921
Secretary of Defense ................................
84,415
98,012
108,012
Office of Economic Adjustment ...............
2,080
2,402
2,402
Defense audiovisual agency .....................
14,946
16,552
16,552
Washington headquarters service ...........
49,848
54,662
54,662
Office of Joint Chiefs of Staff .................
16,984
17,510
17,510
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Defense contract audit agency ................ 99,920
102,725
102,725
Defense audit service ............................... 16,990
17,753
17,753
Inflation, foreign currency, economic as-
sumptions .......................................................................
- 18,200
-18,200
DOL disability compensation ...................................................................
- 4,500
Inflation adjustment ..................................................................................
32,000
Specific program adjustments recommended by the Committee are as
follows:
Dependent education.-The Department of Defense is directed to as-
sume the cost of the continuing operation and maintenance of the
schools on military installations. The Omnibus Reconciliation Act of
1981 shifted the responsibility for the cost of these schools from the
Department of Education to the Department of Defense. Authority had
previously been covered under Public Law 81-874, section 6. Although
the impact of the provisions of the Reconciliation Act have been known
for some months, the Department of Defense failed to address the
funding requirement for this program despite successive budget re-
visions. Despite this circumstance, the Committee concurs with other
proposals to recommend funding of $75 million for the Department of
Defense to assume the cost of operation of the schools. The Depart-
ment is directed to budget for this program in fiscal year 1983 under
the operation and maintenance account for defense agencies.
CHAMP US payments.-The most recent budget revision reduced $30
million to adjust the estimate of payments for expected CHAMPUS bill-
ings in fiscal year 1982. However, the Committee recognizes that
CHAMPUS payments are must pay bills which would be absorbed
from other programs if sufficient funding were not provided. No
evidence exists to suggest that billings will be any less than assumed in
the original budget submission. The consequence of not providing this
funding would be to stretch out reimbursements to military personnel.
The Committee views untimely reimbursements as an unacceptable al-
ternative tc ATy funding the original budget estimate. Accordingly the
addition of $30 million is recommended for continued payments
throughout this fiscal year.
Defense Investigative Service.-This agency is tasked with the perfor-
mance of completing personnel security investigation of employees of
the Department of Defense and contractor personnel involved in de-
fense programs. The requirement for investigations has been increasing
in recent years, yet the number of investigators for this agency has re-
mained constant over these years. Consequently, a large backlog is
developing of uncompleted unvestigations. Moreover, the time to com-
plete investigations is no approaching 150 days between request and
completion. This circumstance poses a significant problem for the
Department and Defense contractors who may not effectively utilize
recently hired personnel until clearances have been completed.
Subsequent to the budget submission this problem was addressed by
the Department at hearings conducted by this Committee. The Commit-
tee has been notified that the Deputy Secretary of Defense has ap-
proved the hiring of 200 additional investigators for the Defense In-
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vestigative Service, and the hiring of an additional. 100 investigators by
contract. The Committee agrees that the current situation is un-
acceptable, yet the solution to the problem is more appropriately found
within existing civilian personnel ceilings of the Department of Defense,
and does not concur with the use of contractor personnel to assume a
portion of this investigation workload. The Committee directs the De-
partment of Defense to proceed with the addition of Government serv-
ice investigators within appropriation funding available.
Committee adjustments to the budget estimate, including those not
speciifically addressed in this report, are summarized in the following
table:
Committee
recommendation
Dependent education .............................................................................................. + S75,000,000
CHAMPUS ............................................................................................................... + 30,000,000
.Spouse and child advocacy programs ................................................................. + 10,000,000
DOL payments ........................................................................................................ -4,500.000
Inflation ..................................................................................................................... + 32,000,000
DEFE\'SE STOCK FuN7D
1981 appropriation ..................................................................................................... 5458,000,000
1982 budget estimate ................................................................................................. 79,000,000
House allowance .........................................................................................................
Committee recommendation ..................................................................................... 79,000,000
This -appropriation provides funds for purchase of war reserve
material. The Defense Logistics Agency purchases consummable items
that are centrally managed, and holds them in its own and the services'
depots for use in the event of an outbreak of hostilities.
The Committee recommends an appropriation of $79,000,000, the
same as the budget estimate.
OPERATION AND MALVTE\'ANCE, ARMY RESERVE
1981 appropriation .................................................................................................... S522,793,000
1982 budget estimate ................................................................................................ 614,900,000
House allowance ........................................................................................................
Committee recommendation .................................................................................... 619,700,000
The Committee recommends an appropriation of $619,700,000 for fis-
cal year 1981. This is 4,800,000 above the budget request.
This appropriation provides for the activities of the Army Reserve, in-
cluding the pay of civilian personnel, operation and maintenance of
facilities and aircraft, support of training activities, and all associated ac-
tivities.
The following detail table provides a program comparison of the
Committee recommendation to the budget request.
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1981 Budget Committee
enacted amount estimate recommendation
OPERATION AND MAINTENANCE, ARMY
RESERVE
Training and organization of mission
forces ......................................................
293,321
373,600
373,600
Depot maintenance ...................................
5,706
7,500
7,500
Communications ........................................
9,338
10,063
10,063
Base operations .........................................
150,455
153,583
153,583
Recruiting and advertising .......................
33,518
40,316
40,316
Management support ................................
29,210
31.838
31,838
Economic assumptions ....................................................
- 2,000
- 2,000
Inflation adjustment ..................................................................................
4,800
OPERATION AND MALN=ANCE, NAVY RESERVE
1981 appropriation ....................................................................................................
5554,172,000
1982 budget estimate ................................................................................................
578,640,000
House allowance ........................................................................................................
Committee recommendation ....................................................................................
565,540,000
The Committee recommends an appropriation of $565,540,000. This
is $13,100,000 below the budget request.
This appropriation provides for the activities of the Navy Reserve, in-
cluding the pay of civilian personnel, operation and maintenance of
facilities and aircraft, support of training activities, and all associated ac-
tivities. Costs of operating the Marine Reserve Air Wing are also in-
cluded.
The following detail table provides a program comparison of the
Committee recommendation to the budget request.
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1981
enacted amount
Budget
estimate
Committee
recommendation
OPERATION AND MAINTENANCE, NAVY
RESERVE
Naval air forces .........................................
190,872
209,721
209,721
Surface support forces .............................
2,519
3,710
3,710
Ship operations ..........................................
47,797
53,583
55,583
Ship maintenance ......................................
Overhaul mod. shipping equipment and
100,643
84,299
65,999
related spt ...............................................
1,013
525
525
Special combat support forces ................
2,907
2,583
2,583
Fleet operations support ..........................
677
477
477
Economic assumptions ....................................................
-2,000
- 2,000
DEPOT MAINTENANCE
Aircraft maintenance .................................
Contractor engineering technical serv.
77,708
76,071
76,701
ices ..........................................................
7,977
8,980
8,980
Subtotal ............................................
85,685
85,051
85,051
OTHER SUPPORT
Management headquarters ............... :.......
4,690
4,467
4,467
Base operations .........................................
117,369
136,224
136,224
Subtotal ............................................
122,059
140,691
140,691
Ammunition ship transfer.-The Committee recommends the reduc-
tion of $20.3 million to reflect the transfer of the Mauna Kea and Pyro
from the reserve to the active fleet.
Mine sweeper operations.-The Committee recommends the addition
of $4 million for continued operations of six mine sweepers. These
ships had been scheduled for deactiviation at the end of this fiscal year.
COMMITTEE ADJUSTMENTS
All committee adjustments recommended are summarized in the fol-
lowing table:
commune
mommendation
Ammunition ship transfer ...................................................................................... -520,300,000
Mine sweeper operations ....................................................................................... +4,000,000
Inflation ..................................................................................................................... +3,200,000
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OPERATION AND MAINTENANCE, MARINE Coxes RESERVE
1981 appropriation ...................................................................................................... S28,854,000
1982 budget estimate .................................................................................................. 40,299,000
House allowance ..........................................................................................................
Committee recommendation ...................................................................................... 40,799,000
The Committee recommends an appropriation of $40,799,000. This is
$500,000 above the budget request.
This appropriation provides for the activities and training of the units
of the selected reserve of the Marine Corps, including the pay of
civilian personnel and all associated activities.
All Committee recommended adjustments to the budget estimate, in-
cluding those not specifically addressed in this report, are summarized
in the following table:
1981 Budget Committee
enacted amount estimate recommendation
OPERATION AND MAINTENANCE,
MARINE CORPS RESERVE
Mission forces ............................................ 12,980 19,096 19,096
Depot maintenance ................................... 1,234 1,349 1,349
Base operations ......................................... 8,910 10,168 10,168
Other activities ........................................... 5,730 9,686 9,686
Inflation adjustment .................................................................................. 500
OPERATION AND MAINTENANCE, AIR FORCE RESERVE
1981 appropriation ..................................................................................................... S601,980,000
1982 budget estimate ................................................................................................. 678,008,000
House allowance .........................................................................................................
Committee recommendation ..................................................................................... 682,608,000
The Committee recommends an appropriation of $682,608,000. This
is $4,600,000 above the budget request.
This appropriation provides for the activities of the Air Force
Reserve, including the pay of civilian personnel, operation and main-
tenance of facilities and aircraft, support of training activities, and all as-
sociated activities.
All Committee recommended adjustments to the House bill and
budget estimate, including those not specifically addressed in this
report, are summarized in the following table:
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1981
enacted amount
Budget
estimate
Committee
recommendation
OPERATION AND MAINTENANCE, AIR
FORCE RESERVE
Mission forces ............................................
487,441
Depot maintenance ...................................
70,910
80,042
80,042
Other support .............................................
102,045
112,925
111,925
4,600
Economic assumptions ....................................................
-3,000
1,600
Headquarters and logistics support.-The Committee concurs with
other proposals to recommend a decrease of $1.6 million for reserve
headquarters reductions and logistics support service facilities sharing in-
itiatives.
OPERATION AND MAL=NANCE, ARMY NATIONAL GUARD
1981 appropriation ................................................................................................... $958,770,000
1982 budget estimate ............................................................................................... 1,041.200,000
House allowance .......................................................................................................
Committee recommendation ................................................................................... 1,047,600,000
The Committee recommends an appropriation of $1,047,600,000. This
is $6,400,000 above the budget request.
This appropriation provides for the activities and training of the
Army National Guard, including the pay of civilian personnel, opera-
tion and maintenance of facilities and aircraft, support of training ac-
tivities, and all associated activities.
All Committee recommended adjustments to the budget estimate, in-
cluding those not specifically addressed in this report, are summarized
in the following table:
OPERATION AND MAINTENANCE, ARMY
NATIONAL GUARD
Training operations ...................................
194,205
186,751
186,751
Logistical support ......................................
688,726
778,647
778,647
Headquarters and command support .....
61,592
70,992
70,992
Medical support .........................................
6,601
7
810
7
810
Economic assumptions ....................................................
,
-3,000
,
-3
000
Inflation adjustment ..................................................................................
,
6,400
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OPERATION AND MAINTENANCE, AIR NATIONAL GUARD
1981 appropriation .................................................................................................. S1,531,907,000
1982 budget estimate .............................................................................................. 1,682,468,000
House allowance ......................................................................................................
Committee recommendation .................................................................................. 1,682,568,000
This appropriation provides for the activities of the Air National
Guard, including the pay of civilian personnel, operation and main-
tenance of facilities and aircraft, support of training activities, and all as-
sociated activities.
COMMITTEE RECOMMENDATIONS
The Committee recommends an appropriation of $1,682,568,000. This
is $100,000 above the budget request.
All Committee recommended adjustments to the budget estimate, in-
cluding those not specifically addressed in this report, are summarized
in the following table:
1981 Budget Committee
enacted amount estimate recommendation
OPERATION AND MAINTENANCE, AIR
NATIONAL GUARD
Operation of aircraft .................................
500,401
574,650
574,650
Loistical support ........................................
202,697
242,398
240,398
Training support ........................................
851,156
865,944
963,244
Servicewide support ..................................
3,453
3,476
3
476
Economic assumptions ....................................................
-4,000
,
-4
000
,
Inflation adjustment .................................................................................. 4,800
Headquarters and logistics support.-The Committee recommends a
reduction of $4.7 million to reflect decreases in headquarters operations
and encourage service facility sharing of logistics support services.
NATIONAL BOARD FOR THE PROMOTION OF RIFLE PRACrICE, ARMY
1981 appropriation ............................................................................................................. $845,000
1982 budget estimate ......................................................................................................... 401,000
House allowance .................................................................................................................
Committee recommendation ............................................................................................. 845,000
This appropriation provides funds for the' Board which promotes
marksmanship training with military type individual small arms among
able-bodied citizens outside the active services of the Armed Forces,
formulates policy governing civilian marksmanship programs, and for-
mulates rules and regulations governing the national trophy matches.
The Committee recommends an appropriation of $825,000. This is
$401,000 above the budget estimate.
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CLALris, DEFENSE
1981 appropriation ...................................................................................................... S141,850,000
1982 budget estimate .................................................................................................. 195,500,000
House allowance .......................................................................................................:..
Committee recommendation ...................................................................................... 198,200,000
This appropriation provides for the payment of all noncontractual
claims against the Department of Defense, as authorized by law, and
represents the consolidated requirements of the Secretary of Defense
and the Departments of the Army, the Navy, and the Air Force.
The Committee recommends an appropriation of $198,200,000. This
is $2,700,000 above the budget for inflation.
Other proposals suggest reducing the budget for this account for the
purpose of obtaining leverage in negotiating revised host nation support
agreements for real property maintenance in West Germany, as a means
of causing a general renegotiation of the status of forces agreements.
Although the Committee feels that there are opportunities for greater
defense cost sharing between the United States and our allies, and that
these opportunities should be actively explored and pursued by the
Departments of State and Defense, the Committee believes that the
withholding of appropriations for legal and valid claims against the U.S.
Government is not the proper way to address the issue.
COURT OF MILITARY APPEALS
1981 appropriation ........................................................................................................ $2,310,000
1982 budget estimate .................................................................................................... 2,607,000
House allowance ............................................................................................................
Committee recommendation ........................................................................................ 2,607,000
This appropriation provides for the salaries of the three judges, of-
ficers and employees, and other necessary expenses of the Court. The
Court, which is established pursuant to the Uniform Code of Military
Justice, serves as the appellate court of last resort for the more serious
court-martial convictions of military personnel.
The Committee recommends an appropriation of $2,607,000. This is
the same as the budget estimate.
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TITLE IV
PROCUREMENT
APPROPRIATION SUMMARY
The Committee recommends $65,846,872,000 for Department of De-
fense programs in fiscal year 1982. This is an increase of $1,620,968,000
above the budget request and $17,843,202,000 above the fiscal year
1981 appropriations.
AIRCRAFT PROCUREMENT, ARMY
1981 appropriation ................................................................................................. S1,193,100,000
1982 budget estimate .............................................................................................. 1,897,300,000
House allowance .....................................................................................................
Committee recommendation ................................................................................ 1,942,900,000
The Committee recommends an appropriation of $1,942,900,000, an
increase of $45,600,000 above the President's budget.
This appropriation provides funding for the acquisition of tactical and
utility airplanes and helicopters, including associated electronics and
communications equipment and armament; modification of in-service
aircraft; ground support equipment; production base support; and
depot reparable assemblies, components, and repair parts including
spare engines, transmissions, and gear boxes.
The Committee recommendations and the budget estimates are
detailed in the following comparative table:
[In thousands of dollars)
Budget Committee
estimate recommendation
C)-12D cargo aircraft ............................................................................ $10,500
UV-18A utility aircraft .............................................. :.... ....................... 3,600
AH-1S attack helicopter ...................................................................... 55,000
AH-64 attack helicopter ............................................... $365,000 438,400
Advance procurement ............................................ 64,000 64,400
UH-60A utility helicopter .............................................. 484,600 484,600
Advance procurement ............................................ 60,600 60,600
Multiyear procurement ........................................... 126,000..................
..........
Modification of aircraft ................................................. 449,800 449,800
Spares and repair parts ............................................... 220,700 220,700
Support and equipment facilities ................................. 128,200 128,200
Inflation adjustment ....................................................... -2,000 27,100
PROGRAM RECOMMENDED
The Committee recommendation will provide the following program
for fiscal year 1981:
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C-12D cargo aircraft.-The Committee recommends $10.5 million for
procurement of six aircraft. No funds for procurement of the C-12D
aircraft were included in the budget request.
The C-12D is a commercial-type, all metal, low wing, twin turbo-
prop, pressurized cabin, passenger/cargo carrying utility aircraft capable
of operating under instrument flight conditions day or night, in high
density air traffic control zones and in known icing weather conditions.
An appropriation of $3.6 million is recommended for procurement of
two UV-18A Twin Otter aircraft. There was no budget estimate.
The UV-18A is a twin-engine, high wing, short takeoff and landing
(STOL) aircraft that can be configured for passenger or cargo opera-
tions. It is capable of flight into instrument meyeorolgic conditions and
severe weather, including known icing conditions.
The Alaska Army National Guard has an urgent requirement for two
more of these aircraft that are uniquely suited for Arctic environment.
They will be assigned to scout and Arctic reconnaissance battalions of
the 297th Infantry.
AH-IS attack helicopter.-The Committee recommends $55 million
for procurement of 12 AH-1S Cobra-Tow attack helicopters. No re-
quest for this helicopter was included in the President's budget es-
timate.
The AH-1S is a single rotor, single engine, two-place attack helicop-
ter with the capability of delivering an antitank Tow missile as well as
conventional weapon rounds.
AH-64 advanced attack helicopter.-The Committee recommends
$438.4 million for procurement of eight AH-64 attack helicopters and
$64.4 million in advance procurement funding for this new system. This
is six aircraft less and $73.4 million more than the budget estimate.
The AH-64 advanced attack helicopter is a twin engine, two-place,
fully integrated antiarmor weapon system capable of destroying tanks
and other armored vehicles during day or night and under adverse
weather conditions.
Although the Committee recommends the authorized funding in-
crease, it has learned that substantial cost overruns will permit little
more than half the anticipated unit procurement in fiscal year 1982,
despite the additional funds. And the Army now estimates the pro-
gramed fiscal year 1983 buy will drop from 78 to 67 aircraft even under
the recommended funding level. .
Further, although the September 30, 1981, Selected Acquisition Re-
port estimated total program costs of $5.9 billion for 545 aircraft, the
Army now indicates that figure will exceed $7 billion. This would drive
up program unit costs of the AH-64 to at least $12.8 million, an in-
crease of nearly $2 million even with moderate inflation projections.
These figures clearly suggest program costs are out of control,? and
the Committee will require a full and detailed accounting. Before any
of the recommended procurement funds are committed, the Army is
directed to report on all cost data to the Armed Services and Appro-
priations Committees of the House and Senate. The report should
include full background information and explanations for these sharp
overruns, and detail what measures are being established to control
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them in the future. It should also explain the late timing of the cost in-
crease disclosure and specify any additional known problems that might
further drive up costs. Finally, a detailed, updated, and explicit cost
estimate revision for the program should be developed and certified.
UH-60A utility tactical transport helicopter.-The Committee recom-
mends $484.6 million for procurement of 96 UH-60A Black Hawk
utility helicopters. The recommendation is the same as the President's
budget request. In addition, the Committee recommends $60.6 million
for advance procurement of long leadtime items.
In agreement with the authorization bill, the Committee has deleted
the $126 million budget request to initiate multiyear procurement of the
Black Hawk. Development and procurement of this aircraft has suffered
cost overruns similar to those of the AH-64 discussed earlier. This sys-
tem should be fully cost stabilized before long-term procurement con-
tracts are financed.
The Black Hawk helicopter is the Army's first true squad-carrying
helicopter and is replacing the UH-1 in the air assault, air cavalry, and
aeromedical evacuation missions.
Modification of aircraft.-The Committee recommends $449.8 million
for modification of in-service aircraft. This is the same as the President's
budget estimate. Increased funding over fiscal year 1981 levels are
provided in all but a few modification programs. Major modification ef-
forts include $273.1 million for the CH-47 Chinook and $65.9 million
for the AH-1S Cobra helicopters; and $53.6 million for the RC-12D
reconnaissance and $18.5 million for the OV-1 surveillance airplanes.
Spares and repair parts.-The Committee recommends $220.7 million
for procurement of spares and repair parts. The recommendation is in
agreement with the President's budget estimate.
The funds provide for centrally managed, high dollar value, depot
reparable assemblies, components, and repair parts such as engines,
transmissions, and gear boxes in support of an Army fleet of approx-
imately 750 fixed wing and 8,000 rotary wing aircraft.
Support equipment and facilities.-The Committee recommends
$128.2 million for the cost of ground support equipment including air
traffic control equipment, avionics, communications equipment and
avionics maintenance shelters, tool sets, shop sets, ground handling and
servicing equipment, special test and diagnostic equipment; component
improvement; industrial facilities; and other production charges. No
change in the budget estimate is recommended.
MISSILE PROCLRE4IE.N'T, ARMY
1981 appropriation ................................................................................................. S1,544,900,000
1982 budget estimate .............................................................................................. 2,210,200,000
House allowance .....................................................................................................
Committee recommendation ................................................................................ 2,180,200,000
The Committee recommends an appropriation of $2,180,200,000 for
"Missile procurement, Army." This is an increase of $30,000,000 below
the President's budget estimate.
This appropriation provides for the procurement of surface-to-air and
surface-to-surface missile systems; air defense control and coordination
systems; antitank/assault missile systems; modification of in-service mis-
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siles and supporting equipment; and related costs such as production
base support.
The Committee recommendation is detailed in the following compara-
tive table:
Budget
estimate
Committee
recommendation
Chaparral (MIM-72-A/C) ..............................................
$4,300
$4,300
Hawk (MIM-23-B) ..........................................................
4,700
4,700
U.S. Roland ............................................................. :......
.......................
50,000
Patriot (SAM-D) .............................................................
720,800
670,000
Stinger ............................................................................
223,900
203,900
Laser Hellfire ..................................................................
128,400
113,400
Pershing ..........................................................................
191,800
191,800
TOW (BGM-71A, BTM-71A) .........................................
96,600
96,600
Multiple Launch Rocket System ..................................
179,300
179,300
Modification of missiles ................................................
440,800
413,300
Spares and repair parts ...............................................
181,800
181,800
Support equipment and facilities .................................
40,800
40,800
Inflation adjustment .......................................................
-3,000
30,300
Missile allowances.-Revisions in the budgeted program are in confor-
mance to the authorizing legislation with the exception of the inflation
adjustment.
The allowance for U.S. Roland, a program proposed for termination
in the September budget revision, did not permit sufficient funding for
closeout costs. The recommended allowance will permit 27 fire units
and 595 missiles to equip 3 batteries that will be available to the rapid
deployment force. This appears to be the most effective approach to
closing out additional procurement for this short-range air defense sys-
tem in which the United States has already invested some $1.2 billion.
The allowance for the Patriot low- to medium-altitude air defense sys-
tem reduces purchases from 280 to 244 missiles.
Although there has been slippage in the passive optical seeker for the
Stinger short-range, shoulder-fired antiaircraft missile, the Committee
recommends the full authorization to avoid any further slowdown.
A reduction from 1,075 to 800 missiles is recommended in the al-
lowance for the Laser Hellfire system, which is the primary antiarmor
missile for the AH-64 attack helicopter.
Modifications.-The recommended allowance for modification of mis-
sile systems includes the elimination of $17.5 million budgeted for the
Dragon and an undistributed reduction of $10 million, in agreement
with the authorization.
PROCUREvtEN-r OF WEAPONS AND TRACKED COMBAT VEHICLES, ARMY
1981 appropriation ................................................................................................. S3,378.200,000
1982 budget estimate .............................................................................................. 3,856,700,000
House allowance .....................................................................................................
Committee recommendation ................................................................................ 3,963,600,000
The Committee recommends an appropriation of $3,963,600,000, an
increase of $106,900,000 above the President's budget.
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This appropriation provides for the procurement of tanks. armored
personnel carriers and combat engineer vehicles. Funds are also in-
cluded for the acquisition of machine guns, grenade launchers, towed
and self-propelled guns and howitzers, laser rangefinders, associated
training equipment, modification of in-service equipment, investment
spares and repair parts and major components, and production base
support.
The Committee recommendation and budget estimates are tabulated
below:
Budget Committee
estimate recommendation
Tracked combat vehicles:
Fighting vehicle system (M-2, M-3) ..................... $809,800 $800.000
Advance procurement ..................................... 59,100 59,100
Field artillery ammo support vehicle .................... 4,000............................
Medium, full-tracked recovery vehicle, M-88A1 . 148,000 123,700
M-1 combat tank, 105mm gun ............................. 1,348,000 1,424,000
Advance procurement ..................................... 212,100 212,100
Training equipment, M-1 ................................ 50,600 50,600
Modifications ........................................................... 203,100 203,100
Support equipment and facilities .......................... 383,600 383,600
Weapons and other combat vehicles:
DIVAD gun .............................................................. 282,000 282,000
Advance procurement ..................................... 53,500 53,500
155mm howitzer, M-198 ........................................ 72,200 72,200
7.62mm armor machine gun, M-240 ................... 26,300 26,300
5.56mm squad automatic weapon ........................ 14,200 14,200
Radar chronograph set, M-90 .............................. 3,300 3,300
81 mm mortar, SM-242 ........................................... 1,900 1,900
Vehicle rapid-fire weapon system (Bushmaster) 31,300 31,300
Fire port weapon .................................................... 19,400 19,400
Modifications ........................................................... 13,900 13,900
Support equipment and facilities .......................... 137,400 137,400
Subtotal ................................................................ 655,400 655,400
Inflation adjustment ....................................................... -5,000 52,000
The recommended allowances for tracked combat vehicles follow the
authorizing legislation.
Fighting vehicle system.-The Committee recommends a $9.8 million
reduction in the budget allowance for the infantry fighting vehicles, in
conformance with the authorizing legislation. This is to support procure-
ment of 400 vehicles, the same as the budgeted program.
Field artillery ammo support vehicle.-Because of program slippage
and the planned use of a stand M-109/110 howitzer chassis, the Com-
mittee deleted the $4 million request for the field artillery ammunition
support vehicle as premature.
Recovery vehicle.-The $24.3 million reduction recommended for the
M-88A1 recovery vehicle request involves a procure drop from 180 to
150 vehicles, in conformance with the authorization.
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1I-1 combat tank.-The Committee recommends a $76.3 million in-
crease in the revised budget to maintain M-1 tank production at 720
units, as supported in the March budget amendment. This is 55 tanks
more than requested in the September budget revision.
Weapons and other combat vehicles.-The Committee recommends
the full budget request and authorization of $655.4 million for the
weapons and other combat vehicle activity. The DIVAD Jun allowance
is for procurement of 50 units.
PROCUREME\ r OF A-,LML-NTIIO\, ARMY
1981 appropriation .......................................................... :...................................... S1,558,700,000
1982 budget estimate .............................................................................................. 2.282.500,000
House allowance .....................................................................................................
Committee recommendation ................................................................................ 2,341.400,000
The Committee recommends an appropriation of $2,341,400,000, an
increase of $58,900,000 above the President's budget.
This appropriation provides for the procurement of all Army ammuni-
tion except missiles. Funds are also included for industrial facilities re-
quired for the production of ammunition components and end items,
the modernization of Army ammunition facilities (including construc-
tion), and the layaway of Government-owned plants and equipment
where it has been established that such facilities will be required in the
event of mobilization.
The Committee recommendation is displayed in the following
comparative table:
Budget Committee
estimate recommendation
Ammunition .................................................................... $1,975,600 $1,990,600
Production base support:
Provision of industrial facilities ............................. 241,800 251,300
Layaway of industrial facilities .............................. 29,900 29,900
Manufacturing technology program ..................... 27,900 27,900
Depot maintenance plant equipment ................... 10,300 10,300
Subtotal, production base support ................... 309,900--- 319.400
Inflation adjustment ....................................................... -3,000 31,400
Following is a listing of principal funding items under the ammuni-
tion allowance:
7.62mm cartridge, all types ..........................................
174,748
$48,600
.50 caliber cartridge, all types .....................................
49,533
77,100
25mm cartridge, HEIT-T ...............................................
1,020
54,100
105mm cartridge, TP-T F/tank gun ...........................
389
68,500
105mm cartridge, DS-TP ..............................................
357
82,200
155mm projectile, HE, ICM (DP) .................................
233
116,800
155mm projectile, HE, ADAM .......................................
15
75,600
155mm projectile, HE, RAAMS ....................................
21
58,400
8-inch projectile, HE, ICM (DP) ...................................
84
104,400
Viper antiarmor ..............................................................
59
77,400
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Louisiana Army Ammunition Plant.-The Committee recommends an
increase of $15 million in the allowance for the 155mm projectile, HE,
ICM (DP) to continue preproduction of the M-483 improved conven-
tional munitions through the fiscal year 1982 funded delivery period.
This munition will then transition to a new Mississippi facility the
following year.
It has come to the attention of the Committee that the Army is ex-
periencing a shortage of metal parts for this round. In addition, the
Committee recognizes the similarities between the automated metal
parts line at the Louisiana Army Ammunition Plant (LAAP) and the
self-contained fuly automated Mississippi Army Ammunition Plant
(MAAP). Until the MAAP moves to a full production status, the Com-
mittee considers it prudent to keep the LAAP M-483 projectile line in
an active status. The recommended amount will permit continued pro-
duction of metal parts on the LAAP M-483 line at a monthly rate of
5.000 rounds per month or 60,000 rounds per year. Available funds will
be used to load the 60,000 rounds to be produced in fiscal year 1982.
Mississippi Army Ammunition Plant.-The Committee recommends a
$9.5 million increase in the provision of industrial facilities activity to
complete the Mississippi production facility. This automated plant will
produce 120,000 rounds per month of the M-483 munition when com-
pleted in fiscal year 1983.
Viper.-The Committee, while recognizing the urgent need for a new,
light antiarmor weapon, questions the wisdom of entering a production
contract without a full competitive analysis of alternative systems to in-.
sure the selection of the most cost-effective system. Despite Army con-
tentions, the Committee is not convinced that technical problems which
have plagued Viper's prolonged development have been satisfactorily
resolved. Its escalating costs clearly warrant the kind of competitive
evaluation, including a shoot-off of available candidate systems. More-
over, these problems have been seriously compounded by recurrent
delays and slippage in the Viper IOC date even as the armor threat ex-
pands. A premature production run on Viper could result in fielding an
inadequate system.
Accordingly, the Committee directs that no portion of the Viper
funds appropriated for fiscal year 1982 be released for production, and
that no funds be expended for research or production for any other
light antiarmor systems, foreign or domestic, until the competitive anal-
ysis has been completed and the results reported to the Appropriations
Committees of the House and Senate, no later than June 30, 1981. In
taking this action, the Committee recognizes (1) that funds to maintain
existing Viper production capabilities on a standby basis will be
required, and (2) that production of a limited number of Viper test
rounds will be required to insure participation in the competitive
analysis provided for. These requirements may be funded from fiscal
years 1981 and 1982 appropriations.
Once the competitive analysis, including the shoot-off, has been com-
pleted, the Army may enter into a production contract on the basis of
results indicating the most cost-effective light, antiarmor alternative.
All parties desirous of participating in such competitive analysis shall
be permitted to do so.
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OTHER PROCLREMENT, ARMY
1981 appropriation ................................................................................................... S2,822.408,000
1982 budget estimate ................................................................................................ 3,683,800,000
House -allowance .......................................................................................................
Committee recommendation .................................................................................. 3,732,071,000
The Committee recommends an appropriation of $3,732,071,000, an
increase of $48,271,000 above the President's budget.
This appropriation finances the acquisition of: (a) tactical and com-
mercial vehicles including trucks, semitrailers, and trailers of all types to
provide mobility and utility support to field forces and the worldwide
logistical system; (b) communications and electronics equipment of all
types to provide fixed, semifixed, and mobile strategic and tactical com-
munications equipment; (c) other support equipment such as chemical
defensive equipment, tactical bridging, shop sets, construction equip-
ment, floating and rail requipment, generators and power units, material
handling equipment, medical support equipment, special equipment for
user testing, and nonsystem training devices. In each of these activities
funds are also included for modification of in-service equipment, invest-
ment spares and repair parts, and production base support.
PROGRAM RECOMMENDED
The Committee recommendation will provide funding for the follow-
ingg program for fiscal year 1982:
Budget
estimate
Committee
recomendation
Tactical and support vehicles ..........................................
$1,029,300
$1,029,300
Communication and electronics equipment ...................
1,611,700
1,594,671
Other support equipment .................................................
1,046,800
1,057,200
Inflation ...............................................................................
-4,000
50,900
Total .........................................................................
3,683,800
3,728,071
COMMITTEE RECOMMENDATIONS
COI UMIJNICATIONS AND ELECTRONICS EQUIPMENT
Radar set, artillery locating.-The Committee recommends $79 mil-
lion for procurement of the ANITPQ-37 radar set. This is a reduction
of $16,000,000 below the budget estimate. The Committee has been ad-
vised that the requested procurement included assets for a classified
program which is currenity being reevaluated. Funds for the AN/TPQ-
37 assets associated with this program are no longer required in fiscal
year 1982.
Intelligence data handling system.-The Committee recommends
$4,271,000 for the intelligence data handling system. This is a reduction
of $1,029,000. Rationale for this reduction is contained in the classified
annex to this report.
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OTHER SUPPORT EQUIPMENT
Detector, chemical agent.-The Committee recommends $55 million
for procurement of 18,000 M43A1 chemical agent detector kits. The
recommendation is a reduction of $12 million below the budget es-
timate.
This item is a new procurement initiative in fiscal year 1982. Delays
have been encountered in contracting for procurement of these kits due
to provisions of the continuing resolution.
Base level commercial equipment.-The Committee recommends
$45,700,000 for base level commerical equipment. The recommendation
is an increase of $22,400,000 above the budget estimate.
The recommended adjustment will provide the Army with funds to
procure investment end items with a unit cost of $3,000 and over from
the proper investment appropriation rather than the operation and
maintenance appropriation. The types of equipment involved include
snow removal equipment, construction equipment, word processing
equipment, industrial cleaning equipment, and postage meters.
A corresponding reduction is reflected in the appropriation recom-
mended in this report for operation and maintenance, Army.
ARMY NATIONAL GUARD EQUIPMENT
1981 appropriation .....................................................................................................
1982 budget estimate ..................................................................................................
House allowance .........................................................................................................
Committee recommendation .................................................................................... $50,000,000
The Committee recommends an appropriation of $50 million in a
separate account to provide military equipment to the Army National
Guard. There was no specific budget estimate for this activity.
The Committee's recommendation under this new account is detailed
below:
ARMY NATIONAL GUARD EQUIPMENT
[in thousands of dollars]
Quantity
Amount
155mm howitzer, M-109 ...............................................
36
$20,700
Armored vehicle launch bridge ...................................
38
18,000
Mortar carrier, M-125A2 ...............................................
42
6,900
Command post vehicle .............. ...................................
27
4,400
AIRCRAFT PRoct mN7, NAVY
1981 appropriation ................................................................................................... $6,254,307,000
1982 budget estimate ................................................................................................ 9,244,500,000
House allowance .......................................................................................................
Committee recommendation .................................................................................. 9,442,400,000
The Committee recommends an appropriation of $9,442,400,000, an
increase of $197,900,000 above the President's budget request. The fol-
lowing table details the Committee recommendation:
(In thousands of dollars]
Budget committee
estimate recommendation
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Combat aircraft:
A-6E Intruder ..........................................................
269.000
269.900
Advance procurement .....................................
7,300
7,300
EA-6B Prowler ........................................................
229,500
229,500
Advance procurement .....................................
16,800
16,800
AV-8B V/STOL .......................................................
575,200
575,200
Advance procurement .....................................
49,000
37,000
F-14A Tomcat .........................................................
888,700
888,700
Advance procurement .....................................
159,100
180,600
F-18 Hornet ............................................................
1,890,100
1,890,100
Advance procurement .....................................
236,400
236,400
CH-53E Super Stallion ..................................:.......
270,600
270,600
Advance procurement .....................................
2.500
2,500
SH-60B Seahawk ...................................................
585,600
585,600
Advance procurement .....................................
155,300
155,300
P-3C Orion ..............................................................
380,200
380,200
Advance procurement .....................................
84,300
54,300
E-2C Hawkeye ........................................................
266,300
266,300
Advance procurement .....................................
20,500
20,500
SH-2F Seasprite .....................................................
173,600
173,600
Advance procurement .....................................
20,000
20,000
Other aircraft:
UC-12B ....................................................................
200
200
C-2 multiyear procurement ...................................
37,000
37,000
T-34C .......................................................................
53,200
53,200
TH-57 .......................................................................
15,800
15,800
EC-130D (TACAMO) Hercules ..............................
74,900
74,900
Modification of aircraft .................................................
977,300
977,300
Spares and repair parts ...............................................
1,529,400
1,607,900
Support equipment and facilities .................................
331,800
331,800
Consultants, studies, and analyses .............................
-5,000
-5,000
Inflation adjustment .......................................................
-11,000
128,900
Advance procurement.-Adjustments in advance procurement for the
AV-8B Harrier, the F-14A Tomcat and the P-3C Orion aircraft are in
conformance with the authorization. They reflect cost adjustments and
are not intended to constrain the respective programs.
F/A-18 strike fighter.-Although the Committee has recommended
the full $343.3 million request to procure 63 additional F/A-18 strike
fighter aircraft, there is a continuing concern over the resolution of tech-
nical and cost problems associated with its development and initial
procurement. Criticism of the aircraft's weight, performance, and range,
together with sharply rising costs, have generated widespread criticism
of the program. However, the Navy and the Marine Corps have consis-
tently backed the F/A-18 as a primary weapon of the carrier force.
The fiscal year 1982 procurement, adding to the 60 aircraft initially
procured in the previous year, should provide the necessary fighter
capability for the Marine Corps as a replacement for the aging F-4 sys-
tem.
The Committee will expect the Navy to keep in close touch on any
operational problems that develop and to keep the Committee up to
date on the resolution of lingering technical and cost problems.
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WEAPONS PRocUREME,,-r, NAVY
1981 appropriation ................................................................................................ $2,766,029,000
1982 budget estimate ............................................................................................. 3,283,800,000
House allowance ....................................................................................................
Committee recommendation ............................................................................... 3,330,100,000
The Committee recommends an appropriation of $3,330,100,000, an
increase of $46,300,000 above the President's budget request.
The Committee recommendations and budget estimates are sum-
marized below by activity:
Budget
estimate
Committee
recommendation
Ballistic missiles:
UGM-73A (C-3) Poseidon .........................................
$18,700
$18,700
UGM-76A (C-4) Trident I ..........................................
665,105
665,105
Advance procurement .........................................
244,795
244,795
Modification of missiles .............................................
30,300
30,300
Strategic missiles:
BGM-109 Tomahawk .................................................
210,900
210,900
Advance procurement .........................................
14,000
14,000
Tactical missiles:
AIM/RIM-7 F/M Sparrow ..........................................
144,700
144,700
AIM-9L/M Sidewinder ................................................
49,500
49,500
AIM-54A/C Phoenix ...................................................
140,800
140,800
Advance procurement ..........................................
26,200
26,200
AGM-84A Harpoon .....................................................
232,700
232,700
Advance procurement .........................................
18,000
18,000
AGM-88A HARM ........................................................
107,600
107,600
RIM-66B standard MR ...............................................
164,800
164,800
RIM-66C standard MR ...............................................
61,600
61,600
RIM-67B standard ER ...............................................
215,000
215,000
Other missile support ................................................
3,800
3,800
Laser Maverick ...........................................................
5,000
5,000
Aerial targets ..............................................................
67,900
67,900
Modification of missiles .............................................
39,700
39,700
Support equipment and facilities ..............................
108,900
108,900
Torpedoes and related egvipment:
Torpedo MK-48 ..........................................................
133,500
133,500
Torpedo MK-46 ..........................................................
65,000
65,000
MK-60 Captor .............................................................
116,900
116,900
Related equipment .....................................................
23,300
23,300
Modification of torpedoes and related equip-
ment .........................................................................
141,400
141,400
Support equipment .....................................................
36,500
36,500
Other weapons:
Guns and gun mounts ...............................................
139,200
139,200
Modifications of guns and gun mounts ..................
26,700
26,700
Support equipment .....................................................
34,300
34,300
Inflation adjustment ...........................................................
-3,000
43,300
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SHIPBUILDING AND CONVERSION, NAVY
1981 appropriation ............................................................................................... S7,697,100,000
1982 budget estimate ........................................................................................... 8,475,300,000
Committee recommendation ............................................................................... 9,136,900,000
The Committee recommends an appropriation of $9,136,900,000, an
increase of $688,600,000 above the President's budget.
A comparative table of the Committee recommendations and the
budget estimates follows:
Budget
estimate
Committee
recommendation
Nuclear submarines:
Trident (advance procurement) ................................
$330,700
$330,700
SSN-688 class ............................................................
953,100
953,100
Advance procurement .........................................
213,900
397,900
Surface combat ships:
CVN aircraft carrier (nuclear) (advance procure-
ment) ........................................................................
658,000
658,000
New Jersey battleship reactivation ...........................
237,000
237,000
Iowa battleship reactivation ......................................
88,000
..........................
Carrier SLEP (advance procurement) ......................
100,800
100,800
CG-47 AEGIS Cruiser ................................................
2,925,600
2,925,600
Advance procurement .........................................
20,700
20,700
FFG-7 frigate ..............................................................
747,900
971,900
MCM mine countermeasures ship ............................
99,700
99,700
Amphibious and auxiliary vessels:
LSD-41 landing ship dock .............................................................
Advance procurement ......................................... 34,000 ..........................
LHA/LHDX helicopter assault ship (advance pro-
curement) ......................................................................................
Maritime pre positioning ship (T-AKX)(RO/RO
conversion) ...................................................................................
139,000
200,000
T-AGOS SURTASS ship ............................................ 156,500 156,500
T-ALS auxiliary lighterage barge ............................. 54,000 ..........................
ARS salvage ship ....................................................... 160,500 160,500
Fast logistics ship (T-AKRX)(SL-7 conversion)...... 668,400 184,000
T-AFS LYNESS (conversion) .................................... 37,000 37,000
Service craft ................................................................ 42,400 42,400
Landing craft .............................................................. 122,800 122,800
Outfitting ...................................................................... 73,000 73,000
Post delivery ............................................................... 122,300 122,300
Cost growth /escalation ..................................................... 448,000 448,000
Consultants, studies, and analyses ................................. -7,000 -7,000
Acquisition, construction, and improvements,
Coast Guard ........................................................................................ 300,000
Inflation adjustment ........................................................... -12,000 117,000
RECOMMENDED CHANGES
The Committee has recommended the following changes, most of
them in conformance with the authorization:
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SSN-688-class nuclear attack submarine.-An increase of $183.2 mil-
lion is recommended for the SSN-688-class nuclear attack submarine to
provide long-lead items for construction of three of these vessels begin-
ning in fiscal year 1983 and three beginning in fiscal year 1984.
Battleship U.S.S. "Iowa" reactivation.-The Committee recommends
deferring $88 million to begin reactivation of the battleship U.S.S. Iowa
pending more reliable cost data and other supporting information. Re-
activation of the U.S.S. New Jersey has just begun, and the Committee
prefers to await cost and feasibility data from that project before con-
sidering additional battleship reactivations.
Landing ship dock (LSD-41).-The Committee recommends deletion
of advance procurement funding and appropriation of $301 million to
begin construction of this LSD vessel in fiscal year 1982, 1 year earlier
than programed under the budget estimates.
Helicopter assault ship.-Advance procurement of $45 million is
recommended for the LHA/LHDX helicopter assault ship to permit
starting construction of this vessel in 1983. There was no budget es-
timate.
Guided missile frigate.-The increase of $224 million for the FFG-7-
class frigate would maintain the three-ship construction program in-
cluded in the March budget estimates but reduced to two vessels in the
September revision. This program will continue construction in two
shipyards, assuring second source procurement and maintaining the in-
dustrial base.
Maritime pre-positioning ship (T-AKX).-The $197 million allowance
for roll-on/roll-off conversion of maritime pre-positioning ships is the
amount contained in the March budget but dropped in the September
revision. The Committee believes this program should go forward be-
cause the long-term costs are more economical than the leasing alterna-
tive. The Committee recommends the appropriation of $139 million and
the use of $58 million in unobligated funds from prior years.
Fast logistics ship (T-AKRX).-The Committee recommends total
funding of $228.4 million for the conversion of SL-7. vessels for use as
fast logistics ships in support of the rapid depioyinent force. The al-
lowance consists of $184 million in new appropriations and the use of
$44.4 million in unobligated funds from prior years. This allowance will
finance the conversion of two vessels instead of eight contemplated in
the budget estimates.
Acquisition, construction, and improvements; U.S. Coast Guard.-The
Committee recommends an appropriation of $300 million to supple-
ment the capital investment program of the U.S. Coast Guard. There
was no budget estimate for this initiative.
This funding is established with a provision for its immediate transfer
to the U.S. Coast Guard, thus insuring Coast Guard participation in the
expansion and modernization of military aircraft, vessels, and equip-
ment. The U.S. Coast Guard should give full consideration to the guid-
ance.provided to it by the Senate Commerce Committee and the Senate
Appropriations Committee's Transportation Subcommittee in the use of
these supplemental funds.
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Appropriations directly available to the U.S. Coast Guard under the
Transportation appropriations bill provided only limited funding in-
creases and resulted in a reinvestment rate of under 5 percent. This ad-
ditional funding will provide the Coast Guard a total of $837 million
for its capital program, still less than initially requested by the Coast
Guard in the fiscal year 1982 budget formulation process. The
augmented total represents a reinvestment rate of less than 8 percent.
The Committee considers the U.S. Coast Guard an integral part of
the Armed Forces, falling as it does under the command structure of
the Navy during wartime. The U.S. Coast Guard supports the Navy in
coastal defense, antisubmarine warfare, convoy escort and icebreaking.
Beginning in 1933, the U.S. Coast Guard and the U.S. Navy formally
agreed that the U.S. Navy would provide communications equipment
for U.S. Coast Guard use. This has expanded into support of a variety
of modem electronics, avionics, weapons, and combat systems aboard
Coast Guard cutters and aircraft today.
The need for additional acquisition funding is self-evident, in the
Committee's judgment. The average cost of U.S. Coast Guard cutters is
27 years, which is approaching what is normally considered the maxi-
mum service life of 30 years. Many of the cutters in the fleet are 35
years old and older. Most cutters now assigned directly to drug interdic-
tion efforts, for example, have an average age of 35 years. These cutters
are frequently inoperative, and maintenance costs continue to soar. The
General Accounting Office found in a recent survey that 70 percent of
the Coast Guard cutters had problems relating to obsolete equipment,
poor habitability, and excessive maintenance.
The Committee recommendation is directed at helping correct these
serious deficiencies.
OTHER PRocL'REvEv-r, NAVY
1980 appropriation ................................................................................................. $3,037,657,000
1981 budget estimate ............................................................................................. 3,822,000,000
House allowance .....................................................................................................
Committee recommendation ................................................................................. 3,884,268,000
The Committee recommends an appropriation of $3,884,268,000, an
increase of $62,268,000 above the President's budget request (as
amended).
This appropriation finances the procurement of major equipment and
weapons other than ships, aircraft, missiles, torpedoes, and guns.
Equipments range from the latest electronic sensors for updating of
naval forces to trucks, training equipment, and spare parts.
PROGRAM RECOMMENDED
The Committee recommendation will provide funding for the follow-
ing programs for fiscal year 1982:
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Budget
estimate
Committee
recommendation
Ship support equipment ...................................................
$697,754
$697,754
Communications and electronics equipment .................
1,190,266
1,190,266
Aviation support equipment .............................................
585,136
590,036
Ordance support equipment ............................................
855,172
855,172
Civil engineering support equipment ..............................
181,136
181,136
Supply support equipment ...............................................
74,971
74,971
Personnel/command support equipment ........................
244,565
244,565
Consultants, studies, and analyses .................................
-3,000
- 3.000
Inflation ...............................................................................
-4,000
52,000
Classified programs ................................................................................ 1,368
AVIATION SUPPORT EQUIPMENT
AN/SSQ-47 sonobuoy.-The Committee recommends $8.137,000 for
procurement of AN/SSQ-47 sonobuoys. This production line will be
laid away following the fiscal year 1982 funded delivery period. An up-
dated model, AN/SSQ-62, will be produced in future years. The recom-
mended amount is an increase of $4,900,000 and will enable the Navy
to complete its inventory requirement for this sonobuoy and complete
the lay away procedure.
Classified programs.-The Committee recommends an increase of
$1,368,000 for classified programs contained in this appropriation. Ra-
tionale for this increase is discussed in the classified annex to this
report.
PROCUREMENT, MARINE CORPS
1981 appropriation ........................................................................................... $506,013,000
1982 budget estimate .............................................................................................. 1,734,916,000
House allowance ......................................................................................................
Committee recommendation .................................................................................. 1,760,700,000
The Committee recommends an appropriation of $1,760,700,000, an
increase of $25,784,000 above the President's budget estimate.
This appropriation provides the Marine Corps with funds for the
procurement, delivery, and modification of missiles, armament, ammuni-
tion, communication equipment, tracked and wheeled vehicles, and vari-
ous support equipment.
The Committee recommendation will provide funding for the follow-
ing programs for fiscal year 1982:
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Budget
estimate
Committee
recommendation
Ammunition ........................................................................
$326,147
$326,147
Weapons and combat vehicles ........................................
417,718
417,718
Guided missiles ..................................................................
216,917
216,917
Communications and electronics ....................................
369,438
369,438
Support vehicles ................................................................
148,595
148,595
Engineering and other equipment ...................................
258,085
258,085
Inflation ...............................................................................
-1,984
23,800
AIRCRAFT PROCLRI:MENT, AIR FORCE
1981 appropriation ...............................................................................................
510,427,428,000
1982 budget estimate ...........................................................................................
13,843,898.000
House allowance ...................................................................................................
Committee recommendation ...............................................................................
14,061,298,000
The Committee recommends an appropriation of $14,061,298,000, an
increase of $217,400,000 above the President's budget. The following
comparative table displays the Committee's recommendations by major
activity:
Budget
estimate
Committee
recommendation
Strategic aircraft:
Long-range combat aircraft (B-1B) ..........................
$1,674,000
$1,724,200
Advance procurement .........................................
227,000
233,800
Tactical aircraft:
A-10 .............................................................................
249,700
229,700
Advance procurement .........................................
20,000
..........................
F-5F .............................................................................
16,700
16,700
Advance procurement .........................................
6,300
6,300
F-15 .............................................................................
1,'D91,800
980,200
Advance procurement .........................................
100,400
100,400
F-16A/B ......................................................................
Advance
ro
r
t
lti
1,331,600
1,270,800
p
cu
emen
(mu
year contract) ......
KC-1 OA .............................................................................................
220,200
MC-130H ..........................................................................................
27,000
E-3A .............................................................................
170,000
170,000
Advance procurement .........................................
100,000
100,000
C-130H .............................................................................................
109,500
Wide-bodied cargo airlift ................................................................
50,000
Other aircraft:
UH-60A ........................................................................
33,000
33,000
TR-1A ..........................................................................
104,100
104,100
Advance procurement .........................................
9,600
9,600
Modification of aircraft:
Strategic aircraft .........................................................
476,900
461,300
Tactical aircraft ..........................................................
596,700
596,700
Airlift aircraft ...............................................................
288,200
288,200
Trainer aircraft ............................................................
8,000
8,000
Other aircraft ..............................................................
642,500
642,500
Other modifications ....................................................
49,400
49,400
Civil Reserve airlift fleet (CRAF) ..............................
47,700
47,700
Spares and repair parts ...................................................
4,002,500
3,889,800
Aircraft support equipment and facilities:
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Common ground equipment .....................................
404,200
404,200
Industrial facilities ......................................................
93,400
93,400
War consumables .......................................................
83,900
83,900
Other production charges .........................................
1,128,298
1,092,498
NATO AWACS ............................................................
358,200
344,300
Inflation adjustments ..................................................
-17,000
192,800
Long-range combat aircraft (B-I B).-The recommended allowance
for initial procurement of the B-1B bomber includes a $50.2 million in-
crease over the budget estimate based' on a 3-percent annual cost
growth, excluding inflation. This is the Committee's best estimate of
yearly cost growth, based on averages from other recent combat aircraft
procurement patterns. This is a moderate estimate and considers the
fact that most of the development of the improved B-1 prototype has
already occurred.
The same 3-percent annual cost growth increase has been applied to
the budget estimate for B-1B advance procurement, amounting to a
$6.8 million increase.
The Committee recognizes the sharp controversy that has surrounded
the President's selection of the B-1B as the best long-range combat
aircraft to succeed the aging B-52 fleet. However, the Committee be-
lieves this modem weapon system is essential to span the balance of the
1980's and into the 1990's pending development and production of the
advance technology bomber utilizing Stealth technology.
The Comittee also is aware of the challenges to the U.S. Air Force
cost estimates for this upgraded aircraft. Indeed, the Committee has
recognized the inevitability of cost overruns and the likelihood that in-
flation rates will be higher than projected under current budget policy.
It is hoped, however, that the fixed-price contracts negotiated by the
U.S. Air Force will bring stability to the production of this new system
and that any additional modifications not included in current estimates
will not be necessary.
The Committee views the B-1B not only as an interim barber to fill
the penetrating role but as a modem and capable launch platform for
cruise missiles. Both of these roles are considered vital to the defense of
the United States.
A-10 attack aircraft.-The $20 million reduction recommended for
procurement of 20 A-10 aircraft conforms to the authorization ceiling,
which provided no advance procurement funding authority.
F-15 air superiority fighter.-The recommended allowance for F-15
A/B/C/D aircraft provides for production of 36 instead of the 42
budgeted, a reduction of $111.6 million, in conformance with the
authorization.
F-16A/B.-The Committee recommends a reduction of $60.8 million
to provide for procurement of 120 F-16A/B fighters, the same as the
budget estimate but utilizing anticipated savings resulting from multi-
year procurement.
The full budget request for long-lead procurement front-end funding
for multiyear contracting has been approved for the F-16. However, the
Committee recommends $65.7 million in unobligated funds from prior
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years be applied as an offsetting reduction. This is .the same amount rec-
ommended for rescission by the President as part of a move to shift
F-16 production to a 120-unit annual rate.
KC-10A tanker aircraft.-The recommended funding for procure-
ment of four KC-10A tanker aircraft restores this program to the
March budget level in conformance with the authorization.
Other increases.-The Committee also recommends increases of $27
million for advance procurement for MC-130H and $109.5 million for
eight C-130H aircraft, pursuant to the authorization bill.
Other reductions.-The $112.7 million reduction in spares and repair
parts is in agreement with the authorization ceiling, as are reductions of
$15.6 million in F-106 fighter modification, $13.9 million in North
Atlantic Treaty Organization airborne warning and control system
(AWACS) support and $35.8 million in production charges, $8.1 million
of it for a classified program and $27.7 million for tactical improve-
ments.
KC-135 re-engining.-The Department of Defense requested $250
million to re-engine and modernize the KC-135A tanker. The program
for re-engining the KC-135 with CFM-56 engines is a total tanker
modernization effort providing substantial fuel savings, increased fuel
offload and vastly improved environmental benefits. It is noted that in
1981, Congress directed the Air Force to accelerate this program with
the addition of $60 million for tooling and long-lead materials. In re-
sponse, the Air Force increased the fiscal year 1982 procurement re-
quest to $250 million to implement this direction.
The Committee fully. supports the KC-135/CFM-56 modernization
program and recommends that it be fully funded at the $250 million
level in fiscal year 1982. This funding will result in an efficient produc-
tion schedule providing for increased savings due to inflation avoidance
and fuel cost reductions with early KC-135R deliveries. The Air Force
is encouraged to continue at an efficiently funded level.
MissmE PRocuxetrsv-r, Am Foxe
1981 appropriation ............................................................................................... $3,346,786,000
1982 budget estimate ........................................................................................... 4,204,646,000
House allowance ...................................................................................................
Committee recommendation ............................................................................... 4,198,146,000
The Committee recommends an appropriation of $4,198,146,000, a
reduction of $6,500,000 below the President's budget request.
Recommended allowances are tabulated by major activity in the fol-
lowing comparative table:
Budget
estimate
Committee
recommendation
Ballistic missiles:
Minuteman I1/111 ..........................................................
$34,326
$34,326
Minuteman upgrade and expansion ..............................................
5,000
ICBM C-3 integration .................................................
54,436
54,436
Other missiles:
Air launch cruise missile ...........................................
588,675
588,675
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Advance procurement .........................................
1,184
1,184
Ground launch cruise missile ...................................
299,440
299,440
Advance procurement .........................................
29,802
29,802
AIM-7 F/M Sparrow ...................................................
227,041
227,041
AIM-9 L/M Sidewinder ..............................................
132,467
132,467
AGM-65D Maverick ....................................................
232,240
232,240
AGM-88A HARM ........................................................
89,100
89,100
Rapier ..........................................................................
110,086
110,086
Target drones .............................................................
17,182
17,182
Modifications:
Class IV .......................................................................
60,916
34,016
Minuteman I1/I11 ...............................................................................
35,000
AIM-70 Sparrow ............................................. :...........
13,736
13,736
Spares and repair parts ...................................................
194,568
203,568
Other support:
Spaceborne equipment (COMSEC) ..........................
19,461
19,461
NAVSTAR GPS ...........................................................
73,596
73,596
Space launch support ...............................................
33,575
33,575
Satellite data system ..................................................
20,649
20,649
Advance procurement .........................................
21,271
21,271
Defense meteoroligical satellite program ................
36,866
36,866
Defense support program .........................................
230,254
230,254
Defense satellite communication system .................
129,964
129,964
Space boosters ...........................................................
77,523
77,523
Advance procurement .........................................
35,744
35,744
Space Shuttle .............................................................
212,365
212,365
Industrial facilities ......................................................
15,616
24,616
Special programs:
Forest Green ...............................................................
2,070
2,070
IONDS ..........................................................................
16,435
16,435
Special programs .......................................................
757,772
763,072
Special update programs ..........................................
441,286
333,786
Inflation adjustment ....................................................
- 5,000
59,600
Minuteman III deployment.-The Committee recommends an un-
budgeted $5 million, based on an unappropriated fiscal year 1981 au-
thorization, for the first year deployment of 550 Minuteman III missiles
to replace Minuteman II weapons. The Committee understands the Air
Force needs to move forward with Minuteman III deployment because
of a shortage of test assets for Minuteman II.
Modification of inservice missiles.-The Committee recommends an
appropriation of $82,752,000 for the modification of inservice missiles,
in conformance to the authorization, including $35 million for the
Minuteman extended survivable power and $2,400,000 for Titan II
safety modifications. The allowance assumes the use of $22,500,000 in
unobligated appropriations available from prior years.
Spares and repair parts.-The $9 million increase in missile spares
and repair parts is for Rapier systems spares, and conforms to the
authorization.
Special programs.-Recommended changes in special programs are
treated in the Committee's classified annex to the report.
NAVSTAR global positioning system.-The Committee has provided
the full budget estimate for the NAVSTAR-GPS satellite system so as
to prevent any further slippage in the currently planned initial opera-
tional capability (IOC) date. The Committee directs the Secretary of
Defense to consider the NAVSTAR-GPS system as a candidate for
multiyear procurement and to consider utilizing the cost savings from
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multiyear procurement for deployment of the original 24-satellite con-
stellation rather than the currently planned 18-satellite constellation.
The Committee further directs the Secretary of Defense to formulate
a program to make NAVSTAR-GPS available, on a user-fee basis, to
both nondefense governmental and civilian users in a secure manner
that will provide for the recouping of as much of the development, ac-
quisition and operating costs of the GPS system as is deemed feasible.
Defense support program.-The Committee recommends $230,254,000
for the defense support program (DSP) under a multiyear increment-
ally-funded concept. The DSP satellites contain sensors which provide
near real-time data to the national command authorities and other
designated users. The recommended appropriation will initiate a block
procurement of four satellites with incremental funding through fiscal
year 1986.
The Committee has long adhered to the concept of full funding of
defense procurement programs. However, allowing a block-buy of the
four satellites on an incremental basis with funding for long-lead time
items is estimated to save a minimum of $130 million. The savings will
accrue from more efficient material and subcontract parts procurement
and reductions in inspections, testing and program support. On this
basis, the Committee recommends the use of multiyear, incremental-
funded procedures for this program.
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OTHER PROCL'REmE\T, AIR FORCE
1981 appropriation ................................................................................................ 53,149,578,000
1982 budget estimate ............................................................................................. 5,174,144,000
House allowance ....................................................................................................
Committee recommendation ............................................................................... 5,286,589,000
The Committee recommends an appropriation of $5,286,589,000 for
"Other procurement, Air Force." The recommendation is an increase of
$112,445,000 above the budget estimate.
This appropriation provides for the procurement of weapons systems
and equipment other than aircraft and missiles. Included are munitions,
other weapons, vehicles, electronic and telecommunications systems for
command and control of operational forces, and ground support equip-
ment for weapons systems and supporting structure.
PROGRAM RECOMMENDED
The Committee recommendation will provide funding for the follow-
ing program for fiscal year 1982:
[In thousands of dollars]
Budget Committee
estimate recommendation
Munitions and associated equipment...... $1,114,699
Vehicular equipment ................................. 337,002
Electronics and telecommunications
equipment ............................................... 1,123,601
Other base maintenance and support
equipment ............................................... 2,604,842
Reduction, offsets ...................................... -6,000
Selected activities .............................................................
Inflation ..............................................................................
Total ................................................. 5,174,144
$1,104,699 -$10,000
337,002 .......................
2,576,787 - 8,055
- 6,000 .......................
59,000 + 59,000
71,500 +71,500
MUNITIONS AND ASSOCIATED EQUIPMENT
30mm API cartridge.-The Committee recommends $222,619,000 for
procurement of the 30mm API cartridge. The recommendation is a
reduction of $10,000,000 from the budget estimate.
The Committee notes that a substantial increase in quantity of
cartridges to be procured caused the existing contract to be renegotiated
and the savings will result from the new contract.
OTHER BASE MAINTENANCE AND SUPPORT EQUIPMENT
Depot plant and materials handling equipment.-The Committee
recommends $20,000 for the category items less than $900,000. This
category provides a wide range of industrial plant equipment such as
mills, lathes, grinders, saws, welders, and furnaces. The Committee
notes that a substantial increase is requested in the budget estimate
above the allowance for fiscal year 1981. The recommendation is a
reduction of $3,025,000 below the budget estimate and will provide for
an increase of $1,200,000 above the fiscal year 1981 allowance.
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Base mechanization equipment.-The Committee recommends
$8,300,000 for base mechanization equipment. Equipment procured in
this. category includes roller conveyors, monorails, driverless tractors,
bridge cranes, automatic stock picker equipment and associated process
control systems.
The Committee notes that the Air Force canceled or postponed re-
quirements financed under this activity exceeding $6,000,000. It would
appear that a reduction of $5,030,000 can be effected from the budget
request.
Selected activities.-The Committee recommends an increase of
$59,000,000 for selected activities. A discussion of the rationale for this
increase is included in the classified annex to this report.
PRoct;RE-1EN r, DEFENSE AGENCIES
1981 appropriation ..................................................................................................... S321,464,000
1982 budget estimate .................................................................................................. 512,200,000
House allowance .........................................................................................................
Committee recommendation .................................................................................... 518,700,000
The Committee recommends an appropriation of $518,700,000, an in-
crease of $6,500,000 above the budget estimate. The increase is to
provide funds to accommodate the abnormal inflation costs above the
rate projected in the budget estimate.
This appropriation provides for procurement of capital equipment for
the Defense Communications Agency, the Defense Investigative Service,
the Defense Mapping Agency, the Defense Logistics Agency, and other
agencies of the Department of Defense. The fiscal year 1982 program in-
cludes procurement of automatic data processing equipment, mechani-
cal materials handling systems, general and special-purpose vehicular
equipment, communications equipment, and mapping, charting, and
geodetic equipment.
PROGRAMS AND Acrlvn'ms
Defense Communications Agency.--Ar_ appropriat:o.a cf $14,697,000 is
recommended for procurement of mission-essential equipment for the
Defense Communications Agency.
Defense Contract Audit Agency.-An appropriation of $301,000 is
recommended for the procurement of equipment to support the mission
requirements of the Defense Contract Audit Agency. The Agency
provides contract audit and financial advisory services to DOD com-
ponents with procurement and contract administration responsibilities.
Defense Investigative Service.-An appropriation of $1,747,000 is
recommended for the procurement of equipment to support the mission
requirements of the Defense Investigative Service which conducts per-
sonnel security investigations for the Department of Defense and, when
authorized, law enforcement investigations of activities involving DOD
components and DOD contractors.
Defense Logistics Agency.-An appropriation of $17,592,000 is recom-
mended for the procurement of equipment to support the activities and
missions of the Defense Logistics Agency.
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Defense Mapping Agency.-An appropriation of $8,272,000 is recom-
mended for procurement of equipment for the support of Defense
Mapping Agency activities.
Defense Nuclear Agency.-An appropriation of $1,930,000 is recom-
mended to procure equipment to support the mission requirements of
the Defense Nuclear Agency.
Office, Secretary of Defense.-An appropriation of $19,957,000 is
recommended for the procurement of equipment for the support of
Secretary of Defense activities. Funds are included for the Washington
headquarters services, the Joint Chiefs of Staff, the Civilian Health and
Medical Program of the Uniformed Services (CHAMPUS), and OSD
field activities, including the American Forces Information Service, the
Department of Defense dependents schools, the medical information sys-
tems, the Defense Audiovisual Agency, and the U.S. Court of Military
Appeals.
Uniformed Services University of the Health Sciences.-An appropria-
tion of $1.1 million is recommended for the cost of equipment for the
operation of the School of Medicine in the Uniformed Services
University of the Health Sciences.
Special activities.-An appropriation of $447,058,000 is recommended
for the procurement of equipment to support a number of special ac-
tivities of the Department of Defense.
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TITLE V
RESEARCH, DEVELOPMENT, TEST, AND EVALUATION
The fiscal year 1982 Department of Defense budget for research,
development, test and evaluation totaled $20,274,388,000. The accom-
panying Senate bill contains $20,870,389;000. This is a net increase of
$596,001,000 from the revised fiscal year 1982 budget. The following
table summarizes the budget estimates and Committee recom-
mendations:
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, test and evaluation, Defense ...............................
Budget Committee
estimate recommendation
$3,768,500 $3,764,409
5,840,488 6,118,579
8,823,400 9,088,906
1,789,000 1,845,495
53,000 53,000
COMMITTEE OVERVIEW
The funding requirement for defensewide research, development, test,
and evaluation is approximately one-third that of either the procure-
ment or operations and maintenance accounts in the fiscal year 1982
defense program. Because research, development, test, and evaluation is
proportionately smaller, there is a tendency to give research, develop-
ment, test and evaluation less scrutiny when defense appropriations are
made. The Committee notes at the outset that the research, develop-
ment, test and evaluation account was scrutinized this year to ensure
that only those new developmental programs truly deserving of transi-
tion to engineering development and deployment receive funding sup-
port.
Because new program starts initiate in research, development, test,
and evaluation, it serves as an important driver in future procurement
and operations and maintenance cost requirements. The principal cri-
teria used by the Committee in making its decisions on research,
development, test, and evaluation program funding were whether the
program clearly meets essential military requirements and cost-effective-
ness considerations.
U.S. defense needs are far too great for Congress to fund programs
having marginal military utility, serious performance deficiencies or the
net effect of constraining budgetary support for essential defense pro-
grams. The Committee believes that hard choices had to be made con-
cerning termination or restructuring of such programs, so that essential
efforts receive full funding support. For these reasons, the Committee
has chosen to terminate or restructure research and development pro-
grams rather than "nickle and dime" necessary programs across the
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board. In doing so, the Committee has strengthened, rather than
weakened, the U.S. defense research and development program.
The Committee has acted to terminate the CX air transport program
and the Army standoff target acquisition system (SOTAS). It has sought
to save program management and support overhead costs through re-
ductions in consultants and management support costs. It has moved to
restructure programs, such as DARPA's Project SORAK, the Navy
F/A-18 research and development effort and certain other programs,
which it believes can be successfully accomplished at a more restrained
pace. In making these choices, the Committee has supported other pro-
grams beyond the budget request where they appeared to be seriously
underfunded.
The Committee supports the development of technologies that poten-
tially make an order of magnitude difference in U.S. defense capa-
bilities. Consequently, it strongly supports the technology base budget
activities of each of the Services and the Defense Advanced Research
Projects Agency (DARPA) programs. Technology base programs fund
basic research and exploratory development, with the goal of increasing
scientific and technical knowledge needed to maintain U.S. techno-
logical superiority and lead to the development of cost-effective wea-
pons systems. DARPA programs invest funding in high-risk tech-
nologies that permit rapid exploitation for high military payoff. Because
Soviet military research and development investment is exceeding that
.of the United States by ever-increasing margins, the Committee believes
that strong support for these programs is essential.
The Committee notes that serious deficiencies exist in many Depart-
ment of Defense university and in-house laboratories. These defi-
ciencies, underscored by the 1981 Defense Science Board summer brief-
ing report on the technology base, include critical personnel shortages,
an aging population of scientists, and an immediate need to' produce
more scientists in the future. These problems are of even greater
significance considering the fact that technologies that could make an
order of magnitude difference in the military balance in the future
(veiy high-speed integrated circuits, Stealth, advanced software, etc.)
need to be vigorously pursued. The Committee encourages efforts to
improve Department of Defense university and laboratory quality
through educational incentives and sustained investment.
The Committee believes that the research, development, test and
evaluation program recommended in the bill will significantly improve
future U.S. defense capabilities and provide for much needed force
modernization.
RESEARCH, DEVELOPMENT, TEST, AND EVALUATION, ARMY
1981 appropriation .................................................................................................. 53,127,774,000
1982 amended request ............................................................................................ 3,768,500,000
House allowance ......................................................................................................
Committee recommendation .................................................................................. 3,764,409,000
The Committee recommends an appropriation of $3,764,409,000, a
reduction of $4,091,000 in the budget request for fiscal year 1982.
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Budget
estimate
Committee
recommendation
Technology base ...............................................................
$596,062
$619,377
Advanced technology development .................................
218,120
213,556
Strategic programs ............................................................
480,568
464,068
Tactical programs ..............................................................
1,660,700
1,624,816
Intelligence and communications ....................................
68,299
47,297
Defensewide mission support ..........................................
749,751
761,795
Inflation ...............................................................................
-5,000
33,500
PROGRAMS AND AcrrvmEs
The budget activities and programs funded under this appropriation
are discussed below. These activities and programs require annual au-
thorization prior to appropriations pursuant to the provisions of section
412(b) of Public Law 86-149, as amended.
TECHNOLOGY BASE
The recommended program includes $619,377,000 for the technology
base activity. This activity finances basic research and exploratory devel-
opment with the primary objective of increasing the store of fundamen-
tal scientific knowledge adaptable to the solution of widely varying
future Army requirements. A strong technology base is needed in order
to (1) maintain technological superiority in military weapons, thus offset-
ting adversary numerical advantages, (2) avoid technological- surprise
that could cause premature obsolescence of major weapons systems, and
(3) lead to acquisition of effective but less costly capabilities by using
innovative products built on new technology.
The Committee recommends the following major changes to the
budget estimate in Army technology base programs, in accordance with
the authorization:
Budget
estimate
Committee
recommendation
Defense research sciences ..............................................
$161,811
$166,000
Aircraft avionics technology .............................................
6,107
5,977
Small caliber fire control technology ..............................
8,516
11,500
Jt. services food sys. tech ...............................................
5,736
5,569
Defense research sciences.-The Committee recommends an appropria-
tion of $166,000,000 for defense research sciences. This is an increase of
$4,189,000 over the revised request. The Committee notes that the
March request was $172,311,000, and that even with this reduction, the
fiscal year 1982 budget will still receive a major increase in investment
needed to upgrade the Army's research capabilities.
Chemical munitions.-The Committee recommends an appropriation
of $20,528,000 for the Army chemical munitions program. Any reduc-
tion would delay the timely development of the technology base for the
binary intermediate volatility agent (IVA), chemical munitions concepts
and new agent technology and delay engineering development of chemi-
cal warheads for the corps support weapons system (CSWS) and mul-
tiple launch rocket system (MLRS).
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Ballistic technology.-The Committee recommends an appropriation
of $23,912,000 for the Army's ballistics technology program. The full
budget request is required to initiate the first phase of the construction
of the artillery command and experiment model and apply the model to
the analyses of tactical artillery scenarios and also make a 60GHz mm
wave sensor for use onboard an air defense smart bullet.
Chemical/biological defense and general investigation.-The Commit-
tee recommends an appropriation of $22,970,000 for the Army's chem-
ical/biological defense and general investigation program. The full fund-
ing request will complete exploratory development for a protective
mask and initiate exploratory development on a combined nuclear,
biological, and chemical detection alarm system to reduce logistics
burdens.
High-energy laser technology.-The Committee recommends an ap-
propriation of $24,956,000 for high-energy laser technology. The entire
budget request is recommended for approval because a higher rate of
funding will permit an accelerated design effort for the Army close
combat laser weapon (CCLAW/Roadrunner) and the forward laser wea-
pon-demonstrator projects. Both of these projects involve development
of fire control subsystems.
Small caliber fire control technology.-The Committee recommends
an appropriation of $5,500,000 for the Army's small caliber fire control
technology program. The funding for this program will further advance
testing of the advanced combat rifle program and special purpose am-
munition.
ADVANCED TECHNOLOGY DEVELOPME?.Tr
The recommended program includes approximately $213,556,000 in
fiscal year 1982 for advanced technology development. This activity
provides for exploration of alternatives and concepts prior to develop-
ment of specific weapons systems. New technological developments are
pursued which are not formally identified to specific operational re-
quirements. This effort includes feasibility demonstrations of innovative
new concepts and emphasizes hardware competition and pursuit of
alternate solutions to potential military problems. Particular emphasis is
placed on demonstrating new concepts to provide improved land war-
fare capabilities in the 1980's and 1990's, including land and helicopter
vehicles and related propulsion and electronics technology, land warfare
target detection, acquisition and weapon technology, chemical/biological
defense, training and personnel technology, and medical developments
related to combat personnel.
The Committee recommends the following changes in the budget re-
quest for advanced technology development in accordance with the
authorization:
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Budget
estimate
Committee
recommendation
Materials scale-up .............................................................
$5,426
$4,000
Synthetic flight simulators ................................................
7,773
6,000
Advanced development of automatic test equipment.-The Committee
was informed that the Commanding General of Development and
Readiness Command (DARCOM) recommended to the Department of
the Army that, after a review of the direct support automatic test sup-
port system (DS-ATSS) solicitations on the request for quotation
(RFQ), the program was not executable within available resources be-
cause of cost, schedule, and technical risks. The need for DS-ATSS and
the need to standardize the automated test equipment were not ques-
tioned. The Army is revising a new RFQ for DS-ATSS which will
restructure the program to allow for a concept demonstration with
representative user systems, followed by engineering development and
operational testing.
The Army notified the Committee that this revision will leave $4,700,-
000 unobligated in fiscal year 1981. In the absence of any reprograming
proposal, the Committee believes these funds should be used to cover
any increased costs in the fiscal year 1982 program.
STRATEGIC PROGRAMS
The recommended program includes approximately $464,068,000 in
fiscal year 1982 for the budget activity entitled "Strategic Programs."
This activity provides for all research and development efforts on
strategic offensive, defensive, and control systems. Primary emphasis is
on ballistic missile defense.
The Committee recommends the following changes to the budget es-
timate, in accordance with the authorization:
[In thousands of dollars]
Budget Committee
estimate recommendation
BMD systems technology ................................................. $353,685 $336,685
Electric power modernization ............................................................... 500
Ballistic missile defense.-The Committee recommends an appropria-
tion of $336,685,000 for the ballistic missile defense (BMD) systems
technology program. The Committee has consistently supported this
program in previous years, and it believes an ac^elerated development
effort on the low-altitude defense (LoADS) program is essential if the
United States is to maintain the option for deployment of a BMD sys-
tem for the MX missile.
The Committee also continues to support exploratory research in the
area of strategic missile materials. The hardened ballistic missile defense
materials program supports the necessary materials technology base by
developing specialized materials and technologies and by continually as-
sessing U.S. materials, capabilities, and limitations vis-a-vis Soviet capa-
bilities. The Committee recognizes the potential of this research to
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programs such as BMD and strategic systems. It believes that some $6
million in program funding could be dedicated to hardened BMD
materials research. This materials research is to be coordinated with the
Army's research in materials program.
Electric power modernization.-The Committee recommends an ap-
propriation of $500,000 for electric power modernization. This appro-
priation would provide the fully authorized amount for the electric
power modernization of Army critical facilities. The program will up-
grade the electrical power systems to all critical Army command posts,
sensor sites, and other high-priority locations.
The recommended program includes approximately $1,624,816,000
for the budget activity entitled "Tactical Programs." This activity pro-
vides for advanced, engineering, and operational systems development
efforts on all aspects related to all conflict levels of tactical warfare,
with emphasis on land warfare, and battlefield air mobility, and related
combat support. This includes developments to improve the Army's
capabilities in the combat missions of battlefield surveillance, close
combat, aerial and surface fire support, field army air defense,. and
mine warfare, plus improved capability in the related support missions
of air and surface mobility, logistics-personnel support, communications,
command and control, navigation, position locating, electronic warfare,
physical security, and chemical/biological defense.
The Committee recommends the following major changes to the
budget estimate, in accordance with the authorization:
Budget Committee
estimate recommendation
Joint services small arms program ................................. $3,529 $5,500
Airdrop equipment development ...................................... 3,126 2,926
Combat feeding, clothing, and equipment ..................... 3,536 2,536
Remotely piloted vehicles......... ....................... 36,394 73,348
Standoff target acquisition system .................................. 69,776 ..........................
Battlefield data system ........................................................................... 5,000
Satcom ground environment ............................................ 36,438 41,638
Synthetic flight simulators.-The Committee recommends an ap-
propriation of $6,000,000 for synthetic flight simulators. The House cut
would severely delay the development of the future capabilities for the
AH-64 synthetic flight simulator. These include advanced development
and demonstration of a dual channel cathode ray visual display system
capable of high resolution out to the maximum effective ranges of
aerial weapons.
Single channel ground airborne radio subsystem (SINCGARS).-The
Committee recommends an appropriation of $15,225,000 for the pro-
gram. The Committee reiterates the position expressed in the fiscal year
1981 supplemental report that it is prudent to continue development of
two methods of providing antijam capability for Army communi-
cations-both fast and slow frequency hopping. Funding of both
methods through the operational test period for SINCGARS (June
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1982) should continue. Nevertheless, the Committee is supportive of ef-
forts to expedite the process for selecting which of the three radios un-
der development should be recommended for procurement..
Remotely monitored battlefield sensor system (REMBASS) program
(Unattended ground sensors).-The Committee recommends $6,948,000
for the unattended ground sensors program. The Committee believes
that it is essential to reinstate this program. The fiscal year 1982
REMBASS program will continue research and development for hand-
placed sensors and allow for development/operational tests (DT/OT) II
in fiscal year 1982.
Standoff target acquisition systems (SOTAS).-The Committee recom-
mends termination of SOTAS. The Committee acknowledges that a
valid Army requirement exists for the development of an airborne radar
system to detect and locate targets at the forward edge of the bat-
tlefield. However, the unsatisfactory preformance of SOTAS should not
be rewarded. In the past year and a half the total acquisition cost of
SOTAS has risen by over 250 percent to $2.4 billion, and the date of
initial operating capability has slipped by several years.
Battlefield data systems.-The Committee recommends an appropria-
tion of $5 million to examine alternatives to SOTAS in the battlefield
data systems program.
Landmine warfare.-The Committee recommends an appropriation of
$8,146,000 for landmine warfare. The funding is needed to initiate en-
gineering development of the off-route antitank mine system as well as
to conduct final engineering development for the modular pack mine
system.
Force level maneuver and control system.-The Committee recom-
mends an appropriation of $14,869,000 for the force level maneuver
and control system. The Committee recommends the full appropriation
in order to maintain the simulation and gaming methods for analysis
(SIGMA) project, which will provide battlefield commanders with an
automated system for processing data in a battlefield environment.. This
has been identified by the Army as an urgent requirement.
? Satellite communication (SAT COM) ground environment.-The Com-
mittee recommends an appropriation of $41,638,000 for the develop-
ment of tactical single- and multichannel terminals for the Army
(SATCOM ground environment). The increase of $5,200,000 over the
budget request will provide for the transition to more survivable sys-
tems capable of operating in a nuclear environment.
Remotely piloted vehicles (RPV).-The Committee recommends an ap-
propriation of $73,348,000 for RPV. This recommendation restores the
RPV program to its budgeted level prior to the September revision. The
Committee notes that RPV's hold great promise for performing a
variety of missions (target acquisition, reconnaissance, et cetera).
Joint tactical communications program.-The Committee recommends
an appropriation of $48,107,000 for the Army's joint tactical communica-
tions.program.
Joint services small arms program (JSSAP).-The Committee recom-
mends an appropriation of $11,500,000 for the joint services small arms
program. This funding will enable the Army to conduct much needed
improvements to the M-16 rifle and new JSSAP efforts such as light-
weight M-60 machinegun, 7.62 mm SLAP, and the combat shotgun.
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The Department of Defense annually spends billions of dollars, yet
failed this year to make the relatively small investment needed to mod-
ernize U.S. small arms. Joint services small arms program officers and
the Foreign Science and Technology Center have amply documented
the fact that the U.S.-Soviet small arms gap is widening due to a sus-
tained Soviet small arms modernization program and a lagging U.S.
program. This funding increase will only partially restore the
JSSAP/small caliber fire control technology funding increases required
to close the U.S.-Soviet small arms gap. The Committee supports these
programs, and encourages efforts to further modernize U.S. small arms
technology in future years.
Synthetic flight training system.-The Committee recommends an ap-
propriation of $8,333,000 for the synthetic flight training system pro-
gram. Any reduction would defer initiation of engineering development
of the AH-64 mission simulator.
Aircraft weapons fire control.-The Committee recommends an ap-
propriation of $10,312,000 for aircraft weapons fire control. Any reduc-
tion would delay by 1 year the effort to develop adverse weather/night
fire control systems for the AH-1S, AH-64A, and scout helicopters.
The recommended program includes approximately $47,297,000 for
the budget activity entitled "Intelligence and Communications." This ac-
tivity provides for advanced, full scale engineering and operational sys-
tems development efforts in intelligence, worldwide communications,
and other defensewide mission support.
The Committee recommends the following changes to the budget es-
timate, in accordance with the recommendations of the authorization
conference:
Budget Committee
estimate recommendation
Navigation system using timing and ranging-global
positioning system (NAVSTAR-GPS) user equip-
ment ................................................................................ $21,002..........................
DEFENSEWIDE MISSION SUPPORT
The recommended program includes approximately $761,795,000 for
the budget activity entitled "Defensewide Mission Support." This ac-
tivity provides for efforts directed toward support of installations or
operations required for use in general research and development and
not allocable to specific missions. Included are technical integration ef-
forts, technical information activities, major test ranges, test facilities
and general test instrumentation, target development, support of user
test,. international cooperative research and development, and other
research and development support.
The Committee recommends the following changes to the budget es-
timate, in accordance with the authorization:
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Budget
estimate
Committee
recommendation
Programwide activities ......................................................
$67,815
$68,815
Development and readiness command ...........................
292,109
297,653
Programwide activities.-The Committee recommends an appropria-
tion of $68,815,000 for programwide activities. This is an increase of $1
million over the revised budget estimate and conforms to authorization.
The Committee's recommendation will provide for full funding of
much needed Army research and development laboratory upgrades.
Development and Readiness Command (DARCOM).-The Committee
recommends an appropriation of $297,563,000 for the Army's
DARCOM. This recommendation conforms to the congressional author-
ization, and is $5,544,000 above the revised budget request. A denial of
full funding -for DARCOM will severely impair the White Sands
Missile Range radar program and the Aberdeen and Dugway base
maintenance and repair programs.
Rotary wing aircraft escape system.-The Committee recommends an
appropriation of $1 million to evaluate and demonstrate the feasibility
and cost effectiveness of adapting the rotor system research aircraft es-
cape system for triservice combat applications.
The statement of the managers accompanying the fiscal year 1981
Defense Appropriations Act directed the Army to evaluate and dem-
onstrate within existing funds the feasibility and cost effectiveness of
this system. However, the fiscal year has ended and the directed study
efforts are still pending.
The Committee notes the recent loss of lives in an advanced attack
helicopter (AAH) prototype crash and Iranian SEA Cobra losses to
Soviet-built air defense sytems in the Iraqi/Iranian conflict. The
Committee believes the rotor system research aircraft escape system of-
fers potential increased survivability for combat crewmen. The Army is
encouraged to demonstrate and evaluate this existing technology on a
timely basis.
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RESEARCH, DEVELOPMENT, TEST, AND EVALUATION, NAVY
1981 appropriation .................................................................................................. 54.974,769,000
1982 amended request ............................................................................................ 5,840,488,000
House allowance ......................................................................................................
Committee recommendation .................................................................................. 6,118,579,000
The Committee recommends an appropriation of S6,118,579,000 for
the Navy's research, development, test, and evaluation programs, an ad-
dition of $223,091,000 to the budget request for fiscal year 1982.
(In thousands of dollars]
Budget
estimate
Committee
recommendation
$790,231
Advanced technology development .............................
167,308
172,965
Strategic programs ........................................................
540,611
544,111
Tactical programs ..........................................................
3,743,073
3,752,894
Intelligence and communications ................................
195,317
178,114
Defensewide mission support ......................................
662,357
662
664
Classified program ...............................................................................
,
6,400
Consultants .....................................................................
-43,300
-43,300
Inflation adjustment .......................................................
- 7,000
54,500
Undistributed reduction ................................................
PROGRAMS AND ACTIVITIES
The budget activities and, programs funded under this appropriation .
are discussed below. The sums referred to are intended to reflect the
magnitude of the various programs and activities and are not to be con-
sidered as specific recommendations. These activities and programs re-
quire annual authorization prior to appropriations pursuant to the provi-
sions of section 412(b) of Public Law 86-149, as amended.
TECHNOLOGY BASE
The recommended program includes $790,231,000 for the budget ac-
tivity entitled "Technology Base." This activity finances basic research
and exploratory development with the primary objective of increasing
the store of fundamental scientific knowledge adaptable to the solution
of widely varying future Navy requirements. A strong technology base
is needed in order to (1) maintain technological superiority in military
weapons, thus offsetting adversary numerical advantages, (2) avoid tech-
nological surprise that could cause premature obsolescence of major
weapons systems, and (3) lead to acquisition of effective but less costly
capabilities by using innovative products built on new technology.
The Committee recommends the following major changes to the
budget estimate, in accordance with the authorization:
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Budget
estimate
Committee
recommendation
Human factors/simulation technology ........................
$7,973
$6,973
Materials technology .....................................................
32,428
34,428
Directed energy technology .........................................
6,993
8,000
Materials technology.-The Committee recommends the addition of
$2,000,000 in accordance with the authorization act. These funds will
provide for development of metal matrix composite materials as sub-
stitutes for critical strategic materials now'in short supply.
Directed energy technology.-The Committee recommends an ap-
propriation of $8,000,000 for directed energy technology. This recom-
mendation conforms to authorization and is $1,007,000 above the re-
vised budget request. Any reduction will severely impair laser weapon,
charged particle beam and pulsed power technology efforts of the Navy.
The recommended program includes $172,965,000 for the budget ac-
tivity entitled "Advanced Technology Development." This activity
provides for exploration of alternatives and concepts prior to develop-
ment of specific weapons systems. New technological developments are
pursued which are not formally identified to specific operational re-
quirements. This effort includes feasibility demonstrations of innovative
new concepts and emphasizes hardware competition and pursuit of alter-
nate solutions to potential military problems. Particular emphasis is
placed on demonstrating new concepts to provide improved naval war-
fare capability in the 1980's and 1990's, including naval air, surface and
subsurface vehicle and related propulsion and electronics technology,
undersea and ocean surveillance, naval warfare target detection,
acquisition and weapon technology and training and personnel
technology.
The Committee recommends the following cha:>.ges to the budget es-
timate in accordance with the authorization:
(In thousands of dollars]
Budget Committee
estimate recommendation
Human factors engineering development ................... $4,150 $3,650
Advanced marine biological system ............................ 4,089 3,789
MC diesel rotary engine ...................................................................... 9,700
United States Marine Corps high horsepower engine.-The Committee
recommends an appropriation of $9,700,000 for the development of the
rotary engine for the United States Marine Corps rotary engine for the
landing vehicle tracked (experimental) and MPWS systems. The Navy
states that the entire amount can be spent efficiently.
Training device technology.-The Committee recommends an ap-
propriation of $8,252,000 for training device technology. This recom-
mendation conforms to the authorization request.
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Medical development.-The Committee recommends an appropriation
of $11,644,000 for medical development. This conforms to the budget
request and authorization.
Human factors engineering development.-The Committee recom-
mends an appropriation of $3,650,000 for human factors engineering
development. This is $500,000 below the budget request.
Advanced marine biological systems.-The Committee recommends an
appropriation of $3,789,000 for advanced marine biological systems.
This is $300,000 below the budget request.
The recommended program includes approximately $544,111,000 in
fiscal year 1982 for the budget activity entitled "Strategic Programs."
This activity provides for all research and development efforts on stra-
tegic offensive, defensive, and control systems. Primary emphasis is on
development to assure continued viability of sea-based nuclear second
strike capability.
The Committee recommends the following change to the budget es-
timate, in accordance with the authorization:
In thousands of dollar;]
Budget Committee
estimate recommendation
Gryphon .......................................................................... $22,260 $25,760
Trident II. submarine launched ballistic missile (SLBM).-The Com-
mittee recommends an appropriation of $239,542,000 for the Trident II
SLBM. The Trident II (D-5) is being developed to obtain a large
throw-weight SLBM with greater range, accuracy, and payload charac-
teristics than the Trident I.
The Committee believes that deployment of the Trident II SLBM on
Ohio-class Trident SSBN's will significantly advance and improve
United. States sts3teg;c counterforce capabilities. Moreover, it is also an
important hedge against uncertainties in the development of new U.S.
land-based and air-based strategic systems.
Extremely low frequency (ELF).-The Committee has received the
Defense Department report on the ELF communications project. ELF
is a shore-to-submarine communications for command and control of
submarines which permits signal 'reception at deeply submerged opera-
tional depths. Testimony before this Committee clearly defined the con-
tinued operational requirement for an ELF system for the enhancement
of ballistic missile submarine, nuclear (SSBN) survivability against the
improved Soviet antisubmarine warfare threat. The Committee recom-
mends an appropriation of $34,830,000 for the development of the ELF
communications system.
Gryphon.-The Committee recommends an appropriation of $25,760,-
000 for the Navy's Gryphon program. This is an increase of $3,500,000
above the budget request, and conforms to authorization. This funding
increase provides for on-going research in survivable, enduring com-
munications. The funding will initiate work ca meteor burst communi-
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cation to determine the ability to provide ground-air, air-ground and
air-air connectivity. These technologies will help redress critical vulnera-
bilities of current EHF and VHF systems.
The recommended program includes approximately $3,752,894,000 in
fiscal year 1982 for the budget activity entitled "Tactical Programs."
This activity provides for advanced, engineering, and operational sys-
tems development efforts on all aspects related to all conflict levels of
tactical warfare, with emphasis on sea control, Navy and Marine Corps
air operations, Marine Corps amphibious operations, and related com-
bat support. This includes developments to improve the Department of
the Navy's capabilities in the combat missions of ocean surface surveil-
lance and targeting, undersea surveillance, antisurface (including inter-
diction and air defense suppression), antiair (including air superiority),
antisubmarine, amphibious and special warfare, and naval mine warfare,
plus improved capability in the related support missions of air and sur-
face mobility, logistics/resupply/transfer, personnel support, early warn-
ing, communications, command and control, tactical intelligence and
reconnaissance, navigation, identification, position locating, traffic con-
trol, electronic warfare, physical security and developments related to
major multimission naval vehicles.
The Committee recommends the following changes to the budget es-
timate in accordance with the authorization:
[in thousands of dollars)
Budget Committee
estimate recommendation
Undergraduate jet flight training system .................... $12,409 $5,000
Tactical C3 countermeasures ....................................... 6,791 6,291
ABN antisub warfare system ........................................ 2,895. 5,895
V/STOL aircraft development ...................................... 14,960............................
AV/8B + ................................................................................................ 5,000
Tilt fan V/STOL technology ................................................................ 10,000
Weaponizing (prototype) ...................................................................... 1,000
Antiship torpedo defense .................................................................... 500
New class carrier design ...............................................................:..... 10,000
Ship systems engineering standards .......................... 1,999 10,000
Diesel electric submarine .............................................. ............ ........... 2,500
Ship development (advanced) ...................................... 20,642 11,000
LH D X ...................................................................................................... 15,000
Avionics development/VAST ........................................ 15,044 13,000
Navy air combat fighter ................................................ 224,812 190,000
Area air defense ............................................................ 34,446 4046
Surface launched weaponry ........................................ 57,386 60,386
Ship development (engine) .......................................... 91,897 68,000
Chemical warfare weapons .......................................... 3,731 7,500
Fire control system electro optics ............................... 7,203 24,000
Medical developments ................................................... 2,146 2,046
F-14A squadrons ........................................................... 11,976 17,000
Joint tactical comm prog., USMC ............................... 17,362 16,362
Security/investigative actys ........................................................... 737............................
Surface effect ship ............................................................................... 5,000
Gas turbine fuel efficiency ................................................................... 7 000
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Essex class carrier eval ...................................................................... 8,800
Major surface combatant (DDG-X).-The Committee recommends an
appropriation of $101,000,000 for research and development for a new
major surface combatant, the DDG-X destroyer. This funding will sup-
port the development of ship design, combat systems, a lightweight
sonar, SPY-1 derivative radar and DDG-X combat systems integration.
The DDG-X will have the following weapons systems:
Vertical launch cells capable of launching Tomahawk, antiaircraft war-
fare (AAW) and antisubmarine warfare (ASW) missiles;
Canister launched Harpoon antiship missiles;
Seafire/5-inch SAL guided projectile;
The Committee believes that the Navy Department's report to the
Committee satisfies the Committee's concern, expressed in the fiscal
year 1981 supplemental conference report, that there be precise defini-
tion of DDG-X engineering goals and performance specifications. The
Committee is convinced that the present DDG-X plan, incorporating
distributed combat systems data processing architecture, the above men-
tioned combat systems and the Seafire laser illumination/5-inch semi-ac-
tive laser guided projectile systems, will make the DDG-X an offen-
sively capable ship.
The trade-offs involved between obtaining increased offensive capa-
bility and affordability are not easy ones to make, but the Committee
believes that the current combat weapons system plan for the DDG-X
will give the Navy a capable surface combatant. The DDG-X will be
able to operate offensively as units of carrier battle groups and surface
action groups against multiple threats-air, surface, and submarine. The
Committee strongly supports the DDG-X program.
Fire control system electro optics (Seafire).-The Committee recom-
mends an appropriation of $24,000,000 for fire control systems electro
optics. This appropriation will accommodate inclusion of the Seafire
electro-optical fire control subsystem into the Navy's fiscal year 1982
fire control systems electro-optics program, along with the infrared
search and track (IRST) system. This appropriation is within fiscal year
1982 authorization limits.
Seafire has been identified to the Committee by Secretary of the
Navy Lehman as an important subsystem component in the Navy's
revised DDG-X design plans, assuming its performance meets criteria
specified in the OPTEVFOR test and evaluation plan. Seafire will give
U.S. surface ships a passive fire control capability to conduct gunfire
during periods of emission control (EMCON) or heavy jamming. The
5-inch semiactive laser guided projectile is to be used as the munition
for this antisurface/strike warfare combination.
The Committee has strongly supported Seafire in the past, and con-
tinues to believe that Seafire electro-optical fire control system technol-
ogy can help address critical surface ship fire control deficiencies iden-
tified by the Navy. The Committee notes that the Soviet Union has
deployed electro-optical fire control systems on five classes of surface
ships.
Medium-range air-to-surface missile (MRASM).-The Committee
agrees to the restructuring of MRASM program necessitated by the ad-
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ministrations fiscal year 1982 budget revisions. The Committee deletes
$19,100,000 from the Navy MRASM request which will reduce the in-
frared (IR) Maverick effort and force a 1-year slip in the program.
Ship system engineering standard (SEAMOD).-The Committee
recommends an appropriation of $10,000,000 for the Navy SSES
program, also known as SEAMOD. The SSES program objective to
develop engineering standards to permit modularity in the design of
ship hull and payloads. The Committee concurs with findings of the
authorization conference that this program is underfunded.
The purpose of the SSES program is to:
Develop and generate ship systems engineering standards for the ac-
quisition of variable payload ships;
Design a first application ship in the area of interface standards; and
Emplace within the shipbuilding community the necessary construc-
tion technology and information concerning the SSES program to per-
mit procurement of the variable payload ship in a cost-effective and
timely manner.
V/HXM U.S. Marine Corps helicopter.-The Committee recommends
an appropriation of $5,229,000 for the U.S. Marine Corps HXM helicop-
ter. The Committee notes that the U.S. Marine Corps has documented
a requirement for a medium-lift helicopter with an initial operating
capability in the early 1990's. Postponement of this badly needed pro-
gram will only serve to further erode U.S. Marine Corps ship-to-shore
amphibious assault capabilities. A firm decision on hardware is due in
the 1983 timeframe.
Attack submarine development.-The Navy requested $9,947,000 for.
attack submarine development. The Committee concurs with the conclu-
sion of the authorization conference that no justifiable need exists to ex-
amine follow-on or future attack submarine designs. The Committee
recommends an appropriation of $4,968,000 to be used for project
51256-AS, submarine cost reduction.
Light airborne multipurpose system (LAMPS) MK III helicopter.-
The Committee recommends an appropriation of $73,800,000 for the
LAMPS MK III weapons system. The Committee fully supports the ex-
tended range capabilities that LAMPS will provide for the antisub-
marine warfare (ASW) mission, and its antiship surveillance and target-
ing (ASST) utility.
However, the Committee is strongly critical of the Navy's inability to
control cost growth in the LAMPS MK III program. Most of this cost
growth has been identified in the procurement, rather than research and
development, aspect of the acquisition process. The December 1980
selected acquisition report (SAR) estimated total LAMPS MK III sys-
tem acquisition costs to be $6,700,000,000, for a difference of $1,478,-
000,000 over the estimate in the December 1979 SAR. Moreover, the
Navy has identified potential additional cost risks as being in the
engine, the airframe, avionics and ship electronics.
While recommending in full the fiscal year 1982 LAMPS research
and development request, the Committee urges the Navy to pursue the
potential cost reduction/avoidance items outlined in the March 1981
LAMPS Mark III cost assessment team congressional report.
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Advanced lightweight torpedo (ALW7).-The Committee recommends
an appropriation of $106,014,000 for the ALWT. The Committee be-
lieves that the revised development schedules for the advanced light-
weight torpedo is reasonable, and that a valid operational requirement
for ALWT clearly exists.
The Committee is not convinced that foreign-source alternatives to
ALWT are capable of critical evaluation at the present time. However,
the Committee is supportive of Navy Department efforts to exchange
lightweight torpedo information with British officials. The Committee
notes that General Accounting Office proposals with respect to United
Kingdom/United States lightweight torpedo information exchange are
being implemented by the Department of Defense.
F/A-18 aircraft.-The Navy requested $224,583,000 in fiscal year
1982 for continued research and development of the F/A-18 aircraft.
This funding will be used to flight test the F/A-18, complete its opera-
tional evaluation and complete roll rate modifications and the weight
reduction program.
The Committee understood, from written answers to Committee ques-
tions from the Department of the Navy, that the F/A-18 research and
development program for fiscal year 1982 was deficient by $51.5 mil-
lion. This deficiency was identified in early spring, but was not added
to the revised fiscal year 1982 budget until the third budget revision in
autumn.
The Committee expresses its concern over the magnitude of the
research and development funding requirements for the F/A-18 pro-
gram, and acknowledges that all technical problems associated with
F/A-18 development must be resolved before commitment to higher,
more economical rates or production. The Committee recommends
$190,000,000 for F/A-18 research and development.
Avionics development.-The Committee recommends an appropriation
of $13,000,000 for avionics development. This recommendation is predi-
cated upon the Office of the Secretary of Defense meeting the criteria
for qualification for the AYK-14 computer agreed upon by the au-
thorization conference.
Area air defense (battle group antiair warfare coordination).-The
Committee recommends an appropriation of $45,046,000 for area air
defense. This recommendation is $10,600,000 above the budget request.
The additional funding will be used to improve correlation of targets
between ships and battle management by permitting electronic response
between AEGIS and non-AEGIS ships.
Gas turbine fuel efficiency.-The Committee recommends an ap-
propriation of $7,000,000 for gas turbine fuel efficiency. This recommen-
dation permits initiation of a program to improve the fuel efficiency of
naval gas turbine propulsion systems. The funding will start.a program
to build and test two Navy LM 2500 engines. Preliminary indications
are that substantial savings can result from such an improvement.
Surface-launched weapons systems technology.-The Committee recom-
mends an appropriation of $60,386,000 for surface-launched weapons
systems technology. This is an increase of $3,000,000 over the budget re-
quest. The additional funding will be used toward acceleration of the
new threat upgrade program.
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New class aircraft carrier design.-The Committee recommends an ap-
propriation of $10,000,000 for new class aircraft carrier design. This
recommendation provides the fully authorized amount for examination
of designs for new, light-class aircraft carriers of approximately 40,000
tons displacement.
Essex class carrier evaluation.-The Committee recommends an ap-
propriation of $8,800,000 for the Essex class carrier evaluation. This
funding is to be used for making the necessary surveys, studies and en-
gineering assessments required for the preparation of a class C estimate
on the cost of reactivating Essex class (CV-27C) aircraft carriers.
Ship development (advanced).-The Committee recommends an ap-
propriation of $11,000,000 for ship development (advanced). This is
'9,642,000 less than the budget request.
Air-capable amphibious ship LHDX.-The Committee recommends
an appropriation of $15,000,000 for the LHDX. The LHDX is projected
to be an air-capable amphibious ship having helicopter, vertical short
take-off and landing, and landing craft capabilities.
Ship development (engineering).-The Committee recommends an ap-
propriation of $68,000,000 for ship development (engineering). This is a
decrease of $23,781,000 from the revised budget request and $2,000,000
less than the authorization level. The Committee recommends the dele-
tion of $2,000,000 for research and development related to the reactiva-
tion of the Iowa battleship.
Surface. effects ships.-The Committee recommends an appropriation
of $5,000,000 for surface effects ships. This appropriation is intended
only to initiate design of a 1,500-ton or larger prototype logistics sup-
port surface effects ship, in conformance to the authorization. However,
the Committee will extend sympathetic consideration to a Navy re-
programing proposal to continue sea trials for a 160-foot SES if this test-
ing is deemed essential to the evolution of a larger SES.
INTELLIGENCE AND COMMUNICATIONS
The recommer...ded program in.lud-s $1.78,114,000 for the budget ac-
tivity entitled "Intelligence and Communications." This activity provides
for advanced, full scale engineering development and operational sys-
tem development efforts in intelligence, worldwide communications sys-
tems, and other defensewide mission support, including meteorological
activities.
The Committee recommends the following changes to the budget es-
timate, in accordance with the authorization:
[In thousands of dollars]
Budget Committee
estimate recommendation
Navigation satellite ........................................................ $16,841 ............................
NAVSTAR GPS user equipment .................................. 34,362............................
NAVSTAR .............................................................................................. $34,000
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DEFE\SEWIDE MISSION SUPPORT.
The recommended program includes $662,664,000 for the budget ac-
tivity entitled "Defensewide Mission Support." This activity provides
for efforts directed toward support of installations or operations re-
quired for use in general research and development and not allocable to
specific missions. Included are technical integration efforts, technical in-
formation activities, major test ranges, test facilities and general test in-
strumentation, target development, international cooperative R. & D.,
and other R. & D. support.
The Committee recommends the following changes to the budget es-
timate, in accordance with the authorization:
[in thousands of dollars]
Budget Committee
estimate recommendation
Studies and analyses, USMC ....................................... $4,049 $3,500
R.D.T. & E. instrumentation/mat spt ........................... 41,579 45,579
Civilian training/education development .................... 1,290 1,000
Consultants ..................................................................... (-43,300) (-43,300)
INTELLIGENCE ACTIVITIES
The Committee recommends an addition of $6,400,000 for in-
telligence activities of the Navy. This program is discussed in the clas-
sified annex to this report.
ITEMS OF SPECIAL INTEREST, NAVY
On-board oxygen generating system (OBOGS).-The Committee ap-
proved funding in fiscal year 1981 to demonstrate an OBOGS in high
performance Air Force aircraft in various flight conditions, as well as
under conditions of chemical agent contamination. For several years the
U.S. Navy has pursued the development of an OBOGS for application
aboard tactical iiavai aircraft and the system is presently being flight
tested aboard the AV-8A Harrier aircraft. The implementation of such
a system on fleet aircraft is believed to offer significant advantages in
the areas of operational readiness, safety and logistics/support costs. It
is requested that the Committee be furnished the current status of this
program to include plans for fleet aircraft implementation and funding
requirements.
Gas turbine fuel efficiency improvements.-The Committee recom-
mends $7,000,000 to initiate a program to improve the fuel efficiency of
naval gas turbine propulsion systems. The recommendation is an in-
crease of $7,000,000 to the budget estimate and to the House bill.
It is the view of the Committee that fuel efficiency of major military
propulsion systems must be improved. The recommendation will initiate
a program to build and test two Navy LM 2500 engines. Preliminary in-
dications are that savings from efficiency improvements within the gas
turbine itself will be at least 8 to 9 percent. Since current plans envision
that the LM 2500 engines will power over 60 percent of the Navy com-
batant fleet by 1990, the potential for significant savings must be con-
sidered.
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Manufacturing technology (MANTECH).-The Defense Science
Board (DSB) report on industrial responsiveness published in January
1981 recommended: increases emphasis on manufacturing technology
program. Fund at 1 percent of the procurement budget. While the
Navy has not met this goal, the Committee notes favorably the sig-
nificant increase in Navy MANTECH. Although the requested $3.9 mil-
lion in Navy research and development appears small, the $24.5 million
in operations Navy (OPN) shows a trend toward meeting the DSB
recommendation.
The Committee encourages the use of MANTECH to support in-
creased production of metal matrix materials and continue the develop-
ment of improved methods for carbon/carbon strategic and tactical mis-
sile components.
Submarine rocket (SUBROC) extension program.-SUBROC provides
a nuclear standoff capability for U.S. attack submarines and is
scheduled to be replaced by the new antisubmarine warfare (ASW) stan-
doff weapon by the late 1980's. However, the Committee is concerned
that recent Navy acquisition strategy changes for the new standoff wea-
pon may considerably delay this vital program. Enhanced readiness may
be sustained by Navy's identification of alternatives directed at the
planned service life extension program for SUBROC. The SUBROC
standoff weapon maintains high fleet reliability and would be a respon-
sible hedge against future program delays for the new ASW standoff
weapon or any gap that may be experienced as a result of a new, high
risk development effort. The Committee believes the Navy should sub-
mit at the earliest possible date a full report on the extended refurbish-
ment plans for SUBROC, including SUBROC's impact on addressing
the interim requirement.
ASW stand-off weapon.-The ASW stand-off weapon system is cur-
rently being developed to replace the presently deployed SUBROC
weapon. This program has as its objective an ASW weapon which will
be effective against present and future threats at ranges compatible with
submarine sensor systems. The Navy's acquisition strategy defined an
approach that implied exploration of alternative design concepts includ-
ing a live firing "fly off' during the development and validation phase.
Without congressional consultation for this $1 billion program, the
Navy altered its acquisition strategy by awarding a sole-source contract.
The Committee is concerned this change in program direction is con-
trary to the value of competition for a program of this importance. The
Committee feels this program as currently structured may warrant
qualification of second-source production. Procurement rates, inventory
objectives, and program cost consideration. are underlying factors which
impact on the consideration of second sourcing. The Committee expects
the Navy to provide a full report on the desirability of formulating a
second-source strategy at the earliest possible date.
Landing craft, air cushion (LCAC).-The Committee notes, with inter-
est, the consideration for multimission development of the landing craft,
air cushion (LCAC) program. It is hoped that the Navy will give
thorough consideration to multimission possibilities and will find fund-
ing to pursue these concepts.
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Medium depth mine (MDM).-Current Navy planning in mine war-
fare calls for development of a family of mines covering shallow, inter-
mediate, and deep water depths. Quickstrike and Captor have been de-
veloped covering shallow and deep depths, but efforts have floundered
over the last 5 years in structuring a reasonable program to meet the
medium depth threat. The Navy is again reassessing development accel-
eration of a medium depth mine program following a series of ex-
tensions of the basic program. The Captor deep water mine is a moored
influence activated mine designed to detect, classify, and attack the
most advanced diesel and nuclear submarines at all. water depths and is
delivered by aircraft, surface ships, and submarines on extremely short
notice. The Committee feels the Navy should expeditiously complete
and submit their study on the need to deploy a medium depth mine,
including a full evaluation of developing a Captor mine variant in
partially meeting the medium depth requirement. This study should in-
clude full disclosure of mission characteristics, as well as any acquisition
efficiencies in developing a Captor mine variant.
RESEARCH, DEVELOPMENT, TFST, AND EVALUATION, AIR FORCE
1981 appropriation .................................................................................................. $7,082,987,000
1982 amended request ............................................................................................ 8,823,400,000
House allowance ......................................................................................................
Committee recommendation .................................................................................. 9,088,906,000
The Committee recommends an appropriation of $9,088,906,000 for
the Air Force's research, development, test and evaluation programs, an
addition of $265,506,000 to the budget request for fiscal year 1981.
(In thousands of dollars)
Budget Committee
estimate recommendation
Technology base ........................................................... $637,700
$632,700
Advanced technology development ............................. 371,00
361,800
Strategic programs ........................................................ 3,467,000
3,716,606
Tactcal programs .......................................................... 1,862,767
1,755,767
Intelligence and communications ................................ 1,203,133
1,191,533
Defensewide mission support ...................................... 1,293,700
1,283,100
Classified programs ..............................................................................
22,400
Special program ...................................................................................
35,300
Inflation ...........................................................................
-12,000 89,700
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PROGRAMS AND ACrIvmEs .
The budget activities and programs funded under this appropriation
are discussed below. The sums referred to are intended to reflect the
magnitude of the various programs and activities and are not to be con-
sidered as specific recommendations. These activities and programs re-
quire annual authorization prior to appropriations pursuant to the provi-
sions of section 412(b) of Public Law 86-149, as amended.
The recommended Air Force program includes $632,700,000 in fiscal
year 1982 for the budget activity, technology base. This activity funds
basic research and exploratory development, with the goal of increasing
scientific knowledge to maintain U.S. technological superiority, avoid
technological surprises and lead to the acquisition of more cost-effective
weapons systems.
The Committee recommends the following changes in the budget es-
timate, in accordance with the authorization:
[in thousands of dollars)
Budget committee
estimate recommendation
Aerospace biotechnology ............................................. $40,100 $37,100
Training/simulation ........................................................ 16,000 14,000
Defense research sciences.-The Committee recommends an appropri-
ation of $139,500,000 for defense research sciences, Air Force. A major
reduction in this account would cripple new initiatives such as: chemi-
cal defense, manufacturing science, systems automation, fuel efficient
aircraft, and low speed takeoff/landing. Full funding is also required to
maintain the Air Force contract program with industry and universities.
ADVANCED TECHNOLOGY DEVELOPMENT
The recommended fiscal year 1982 Air Force program includes
$361,800,000 for the budget activity, advanced technology development.
This budget activity funds alternatives and concepts prior to the en-
gineering development of specific weapons systems. New technological
developments are pursued which are not formally. identified prior to
specific operational requirements. The fiscal year 1982 Air Force pro-
gram includes funding for aircraft propulsion and electronics technol-
ogy, very high speed integrated circuits, air warfare detection acquisi-
tion and weapon technology, personnel technology, information process-
ing and flight simulator technology, and other related activities.
The Committee recommends the following changes in the.budget es-
timate, in accordance with the authorization:
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Budget
estimate
Committee
recommendation
Advanced avionics for aircraft .....................................
$17,100
$15,000
Hypervelocity missile .....................................................
8,100
11,000
VHSIC .............................................................................
50,700
40,700
Civil/environmental engineering technology ..............
4,000
3,900
Very high speed integrated circuits (VHSIC).-The Committee recom-
mends an appropriation of $40,700,000 for the VHSIC program. This
coincides with the authorization recommendation, but is $10,000,000
below the revised budget request. The Committee notes that it has been
advised that the VHSIC program requires an additional $25,000,000 in
fiscal year 1982 if all VHSIC contractural obligations are to be met (a
total of $65,700,000). The Committee acknowledges the seriousness of
the potential shortfall in VHSIC funding in fiscal year 1982, and states
that it is willing to accept an Air Force reprograming to cover the dif-
ference.
Hypervelocity missile.-The Committee recommends an appropriation
of $11,000,000 for the hypervelocity missile. The goal of the program is
to evaluate critical technologies for a small, low-cost hypervelocity mis-
sile to be used against Soviet armored vehicles.
Advanced radiation technology.-The Committee recommends an ap-
propriation of $80,800,000 for advanced radiation technology. The
Committee strongly supports this program, and notes that any cut will
severely impair the progress of U.S. efforts in this important field.
STRATEGIC PROGRAMS
The recommended fiscal year 1982 Air Force program includes
$3,716,606,000 for the budget activity, strategic programs. This budget
activity provides for all research and development on Air Force stra-
tegic offensive, defensive, and command, communications, and control
programs. The development of these systems will provide a survivable
land-based intercontinental ballistic missile retaliatory capability, moder-
nization of the strategic bomber force and survivable strategic com-
munications.
The Committee recommends the following changes in the budget es-
timate, in accordance with the authorization:
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Budget
Committee
estimate
recommendation
Advanced ballistic reentry system ............................... $49,000
$100,000
Advanced cruise missile ............................................... 30,100
45,200
Long-range combat aircraft (13-1B) ............................. 471,000
471,000
MX ................................................................................... 1,913,200
2,008,706
Space defense systems ................................................ 180,900
200,900
Minuteman squadrons ................................................... 14,200
38,500
Post attack command/cont system ............................. 9,400
11,400
Minimum essential emergency communication net-
work ............................................................................. 45,600
51,200
Air Force Sat communication system ......................... 50,100
82,100
SLBM radar warning system ...............................................................
3,800
EMP hardening .....................................................................................
200
Air-launched cruise missile .......................................... 69,000
104,000
Advanced ballistic reentry systems (ABRES).-The Defense Depart-
ment requested $49,000,000 for the ABRES program, a triservice
research and development effort managed by the U.S. Air Force. The
ABRES program, now entitled advanced strategic missile systems
(ASMS) has been the focal point of ICBM research related to ballistic
missile defense (BMD), especially in response to Soviet BMD develop-
ments. Last year Congress approved $111,900,000 for this program with
guidance that the program be stabilized.
This year the Defense Science Board recommended that ASMS
receive enhanced funding and serve as the coordinator of offensive sys-
tems in the effort to promote greater synergism between missile pro-
grams and ballistic missile defense developments. The Committee
recommends an appropriation of $100,000,000 for ASMS to stabilize the
program and assure that U.S. missile programs are able to respond to
developments in United States and Soviet BMD technology.
The Committee bases its action on the fact that fiscal year 1982
ABRES program, as identified by the Strategic Missile Systems
(SMS)-2000 study, was severely underfunded. The ABRES program is
the only program in the Department of Defense which provides for ad-
vanced technology development of future Air Force ballistic missile sys-
tems and subsystems-such as ICBM penetration aids, a defense sup-
pression maneuvering reentry vehicle (MaRV), advanced ballistic re-
entry fuze systems and guidance subsystems. The Committee believes
that a $100 million appropriation is the minimum amount required to
improve the ability of U.S. intercontinental ballistic missiles to respond
to the advanced Soviet ABM threat and improve U.S. offensive
capabilities. The Committee stresses that no funds appropriated may be
used for continuation of the MX/MPS program recommended by the
previous administration and terminated by the President.
Space defense.-The Committee has added $20,000,000 for Air Force
research and development on antisatellite (ASAT) technology. The pur-
pose of the addition is to encourage an expanded ASAT program which
will include related technologies including airborne- and space-based
laser weapons research and development. The Committee strongly urges
the Secretary of the Air Force to maintain the Program Management
Office for space-based lasers and to insure coordination of the related
technologies of ASAT programs.
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This Committee continues to express its concern over the fiscal man-
agement of the Air Force ASAT program. The prototype minature air-
launched system (PMALS) project in this program has experienced a
cost growth of over $100,000,000 spread out between fiscal years 1981-
84, $37,000,000 of which is funded in this request. The Air Force main-
tains that this increase is needed to maintain the ASAT flight test
schedule and date of initial operating capability. Although the Commit-
tee is aware of the advances the Soviet Union has made in antisatellite
systems, it is concerned about the ever-growing cost requirements for
this program, and whether the program is receiving proper direction
from the Office of the Secretary of Defense.
The Committee recommends an appropriation of $200,900,000 for
space defense.
Long-range combat aircraft.-The Committee recommends an ap-
propriation of $471,000,000 for additional research and development for
the B-1B bomber. This is $169,000,000 above the authorization recom-
mendation. It provides for the fully required level of research and de-
velopment funding requested by the administration in its revised budget
request. Full funding is required to: maintain the full scale develop-
ment schedule, maintain the date of initial operating capability, and
most importantly, prevent an increase in out-years costs due to the ef-
fects of inflation.
PAVE PA WS.-The Committee recommends an appropriation of
$3,800,000 to fund an earlier start on the southeastern and southwestern
(PAVE PAWS) SLBM radar warning sites. This initiative will help close
gaps in existing coverage and improve overall system. detection and per-
formance.
Electromagnetic pulse (EMP) hardening of critical facilities.-The
Committee recommends an appropriation of $200,000 for the hardening
of Air Force critical facilities to effects of EMT. These funds will be
used to harden the U.S. Air Force Command Post to protect critical,
fixed C2 facilities from the effects of high altitude nuclear detonation
electromagnetic pulse. This will help provide assured positive control of
launch capabilities from Strategic Air Command (SAC) headquarters to
Wing Command Posts.
Post attack command and control system (PAACS) (EMP harden-
ing).-The Committee recommends an appropriation of $11,400,000 for
the PAACS. This is an increase of $2,000,000 over the budget request.
The additional funds will be used to conduct an EMP test of an EC-
135 Airborne Command Post aircraft. The baseline information col-
lected from this test will be used in concert with the EC-135 EMP pro-
tection modification program, which seeks to make U.S. command and
control assets survivable during and after a nuclear exchange.
Air Force satellite communications (AFSATCOM) system (EHF).-
The Committee recommends an appropriation of $82,100,000 for the
AFSATCOM system. This is an increase of $32,000,000 over the budget
request. The additional funding will initiate research and development
on a new generation, multimission satellite for extremely high frequency
(EHF) communications packages on host spacecraft and associated ter-
minals. The funding will be used to define military satellite communica-
tions (MILSATCOM) packages, accelerate development and demonstra-
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tion of critical satellite and terminal technologies needed for the new
MILSATCOM architecture, prepare for acquisition in fiscal year 1983
and establish feasibility for the integration of communications payloads
on satellite data system (SDS) satellites.
Minimum essential emergency communications network (MEECN).-
The Committee recommends an appropriation of $51,200,000 for the
MEECN. This is an increase of $5,600,000 over the administration
budget request. The additional funding would permit development start-
ing in fiscal year 1982 of a new VLF/LF receiver for bomber aircraft
(including the B-1B) and in development of more reliable antennae sys-
tems for the EC-135 Airborne Command Posts, which transmit
VLF/LF messages. This funding is required to meet the desired installa-
tion time of 1985-86.
Minuteman squadrons (airborne launch control system (ALCS) phase
III and Minuteman guidance improvement).-The Committee recom-
mends an appropriation of $38,500,000 for Minuteman squadrons. This
recommendation restores $18,800,000 for the ALCS phase III program
for 200 Minuteman III intercontinental ballistic missiles and an addi-
tional $5,500,000 for the Minuteman guidance improvement program.
TACTICAL PROGRAMS
The recommended fiscal year 1982 Air Force program includes
$1,755,767,000 for the budget activity, tactical programs. This activity
provides for advanced, engineering, and operational systems develop-
ment on all aspects of Air Force tactical warfare efforts. This includes
developments to improve Air Force tactical capabilities in combat mis-
sions such as air superiority, interdiction, close air support to land com-
bat forces, suppression of enemy air defenses, airlift, airborne early
warning and control, communications, identification, navigation, and
electronic warfare.
The Committee recommends the following changes in the budget es-
timate, in accordance with the authorization:
[in thousands of dollars)
Budget Committee
estimate recommendation
Enforcer ................................................................................................. $6,000
Tactical identification system ....................................... $8,500 14,800
PAVE MOVER ................................................................ 5,200 5,700
CX program .................................................................... 169,700 ............................
Airlift enhancement .............................................................................. 15,000
Fighter mission analysis ...................................................................... 5,000
Aircraft engine CIP ........................................................ 122,500 125,000
Close air support wt:apons system ............................. 14,600 25,000
Air-launched assault breaker ....................................... 36,100 24,100
Appi for info processing tech ...................................... 5,900 4,900
F-16 squadrons ............................................................. 42,200 57,500
CX aircraft.-The Air Force requested $169,700,000 in fiscal year
1982 for research and development on the CX aircraft. The CX was
designed to be a cargo transport aircraft capable of airlifting outsize
cargo over intercontinental distances and landing in small, austere air-
fields. The Committee acknowledges that critical, near-term U.S. airlift
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deficiencies now exist. However, the Committee is not prepared to em-
bark upon a major acquisition program of $12.9 billion when significant
questions remain unanswered regarding utilization of existing aircraft
designs and upgrading of the civilian reserve air fleet (CRAF) program
in remedying U.S. airlift deficiencies. Moreover, the Committee must
state that the submission of the congressionally mandated mobility
study to Congress did not satisfy these concerns. Therefore, the Com-
mittee recommends no appropriation for the CX program in fiscal year
1982, and directs that the CX program be terminated. Instead, it ap-
propriates $15,000,000 for airlift enhancement research studies and air-
lift augmentation alternatives.
Next generation trainer (NGT).-Last year this Committee requested
the Air Force to restructure the NGT program to include the T-34C
Navy primary trainer as a next generation trainer candidate. The Com-
mittee has thoroughly reviewed the Air Force's evaluation of the T-
34C, the Navy primary trainer, as an alternative to the proposed NGT.
The Committee finds that there are significant technical and opera-
tional reasons to support the Air Force position to pursue a turbo fan
NGT option over the turbo prop T-34C. A key concern to the Com-
mittee was the pilot flight evaluation of the T-34C as an Air Force
NGT option. Problems of congested air space at Air Force training
fields, airplane performance levels and requirement for additional pilot
training in the T-34C all entered into the Committee's decision to sup-
port the Air Force NGT program this fiscal year.
The Committee approves $14,700,000 for the Air Force NGT pro-
gram. This funding is to be used to support contractor selection and in-
itiation of the development of the airframe and engine. The Committee
believes that the NGT is the best alternative available to train pilots for
the Air Force's tactical, strategic, and support requirements.
Enforcer program.-The Committee recommends an appropriation of
$6,000,000 for the Air Force enforcer program. This replaces fiscal year
1980 funds that lapsed and will permit a fair completion of the testing
of the enforcer aircraft.
Future fighter mission analysis.-The Air Force requested $10,100,000
for the advanced tactical fighter program. The authorization conference
denied the $10,100,000 request for advanced tactical fighter. The Com-
mittee also does not agree to initiate concept definition studies for an
advanced tactical fighter at this time. The current generation of Air
Force fighters should serve to meet U.S. tactical- fighter needs well into
the future. Instead, the Committee recommends an appropriation of
$5,000,000 for future fighter mission analysis, to enable the Air Force to
begin analyses of future mission requit ements for Air Force tactical
fighters.
F-16 squadrons.-The Committee recommends an appropriation of
$57,500,000 for F-16 squadrons. This is an increase of $15,300,000
above the budget request. The additional funding is to be used to con-
duct a flight test demonstration of the F-16E. This flight test is needed
to validate projected performance and capability improvements (strike/
attack capability, avionics, et cetera).
The Committee action includes approval of the $8,300,000 authorized
to support a flight test evaluation of the r-16E using competitive deri-
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vation engines. In so doing, however, the Committee directs that none
of the funds appropriated will be used until such time as the Air Force
sets forth a schedule which will permit adequate time and money so as
to insure that a truly fair and equitable competition between manufac-
turers of derivative engines can take place.
Chemical biological defense equipment.-The Committee recommends
an appropriation of $12,800,000 for chemical biological defense equip-
ment. This is an increase of $4,000,000 over the budget request. The ad-
ditional funding expands development efforts for collective protective
shelters and other devices.
Close air support weapon system.-The Committee recommends an ap-
propriation of $25,000 for close air support weapon system (IR Maver-
ick). The increase involves a transfer of $10,400,000 from the Navy
infrared (IR) Maverick missile program to the Air Force. This change is
made on the basis that the U.S. Air Force should continue to be man-
aging this development program.
Position and velocity extraction (PAVE) MOVER.-The Committee
recommends an appropriation of $5,700,000 for PAVE MOVER. The
additional funds ($500,000) will be used to provide more realistic PAVE
MOVER enemy counter-countermeasure features.
Night precision attack (LANTIRN).-The Committee recommends an
appropriation of $87,600,000. This amount is required to prevent sched-
ule slip and cost growth in fabrication of development pods, flight test
of navigation targeting pods, and production readiness initiatives. The
optimum program avoids inefficient development delays and cost in-
creases. These funds are to be used only for continuation of the ongo-
ing development program as currently structured by the Air Force to
preclude further delays and increased costs.
INTELLIGENCE AND COMMUNICATIONS
The recommended fiscal year 1982 Air Force program includes
$1,191,533,000 for the budget activity intelligence and communications.
This activity provides funding for advanced, engineering, and opera-
tional systems development efforts in Air Force intelligence and world-
wide communications systems.
The Committee recommends the following changes to the budget es-
timate, in accordance with the authorization:
[In thousands of dollars)
Budget Committee
estimate recommendation
NAVSTAR GPS user equipment .................................. $166,100 $166,000
DEFE*ISEWIDE MISSION SUPPORT
The recommended fiscal year 1982 Air Force program includes
$1,283,100,000 for the budget activity, defensewide mission support.
This budget activity funds Air Force installations and operations re-
quired for major system testing, test instrumentation development, tech-
nical information efforts, target development, and other 7esearch and
development support.
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The Committee recommends the following changes to the budget es-
timate, in accordance with the authorization:
(In thousands of dollars]
Budget
estimate
Committee
recommendation
Acquisition and command support .............................
$259,400
$253,000
Management headquarters ...........................................
22,900
20,900
B-52 flight simulator.-The Committee recommends an appropriation
of $11,300,000 for flight simulator development. The Committee does
not agree to restore any fiscal year 1982 funds for the B-52D flight
simulator modification. These funds are unnecessary because the lead-
time required to field the prototype is too long to effectively use the
devise before the B-52D aircraft are retired.
Alternative fighter engine.-The Committee recommends an appropria-
tion of $35,000,000 for the Air Force alternative fighter engine program.
These funds will be administered by the Air Force to support work
needed to pursue follow-on engine development on a competitive basis
for improved aircraft engine performance. The funds will be allocated
as determined by the Department of the Air Force between competing
engine manufacturers so as to insure that full and fair competition is
maintained so alternate options are available to the Department of De-
fense should the requirement for increased thrust become necessary.
The Air Force has not identified any future requirement for a higher
thrust engine. If a requirement is established, the Committee should be
advised before any effort is applied to a higher thrust engine, and a
specific plan presented to insure a full and fair competition. Initiation
of development, including authorization and appropriation of the re-
quired funds, will require prior approval of this Committee. This is con-
sistent with the guidance provided the Air Force last year by the con-
ferees.
CLASSIFIED PROGRAMS
The Committee recommends an appropriation of $30,100,000 for spe-
cial activities associated with the classified programs of the Air Force.
These programs are discussed in the classified annex to this report.
ITEMS OF SPECIAL LNTFREST
Air Force flight simulator visual systems.-The Committee is con-
cerned that the Air Force is not adequately funding its only research
and development effort to develop a tactical visual system for the A-10,
F-15, and F-16 weapon system trainers (WST's). For advanced simu-
lator development, the Committee approved the $2.2 million requested,
which is $2.3 million less than Congress was told last year would be
required for the fiscal year 1982 effort. However, the Committee be-
lieves that, if this development program is not continued at the proper
funding level and completed soon, the Air Force will have bought
A-10, F-15, and F-16 WST's which will not be able to provide air-to-
ground, air-to-air, and combat mission training. This would defeat the
basic purpose of the WST's. The Committee strongly encourages the
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Air Force to develop and pursue a program that will fill this training
need.
On-board inert gas generating system.-The Committee is aware of
the Air Force effort in the development of an OBIGGS. This is a new
initiative to provide a more efficient system to give fire and explosion
protection by filling fuel tanks with an inert gas as fuel is consumed.
This is now done on a few military aircraft by carrying a store of inert
gas or foam. If the OBIGGS concept proves feasible, the inert gas can
be derived from engine bleed air thereby eliminating the need for carry-
ing inert gases. This would provide a cheaper and simpler way to give
added fire protection and would make it possible to equip all aircraft at
a reasonable cost. The Air Force is encouraged to initiate flight testing
as soon as feasible and advise the Committee of funding requirements
for fiscal year 1983.
Tactical command and control modernization.-The Committee is con-
cerned the current Air Force tactical command and control capability is
severely limited by equipment that was developed during the 1965-68
timeframe. The Air Force has documented these deficiencies within the
tactical Air Force integrated information system master plan, but has
not yet initiated a program for meeting the modernization requirement.
The Committee feels the Air Force should expeditiously improve 'their
tactical command and control system, fully utilizing other service pro-
grams in order to achieve maximum cost savings while insuring opera-
tional compatibility. The Air Force should consider reprograming fiscal
year 1982 funds to achieve any acquisition efficiency. The Committee
recommends the Air Force provide at the earliest possible date a full
report on plans for tactical command and control modernization.
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RESEARCH, DEVELOPME\T, TEST, AND EVALUATION,. DEFENSE AGE'CIES
1981 appropriation ................. .
................................................................................ S1,298,948,000
1982 budget estimate ................................................................................................ 1,789,000,000
House allowance .......................................................................................................
Committee recommendation .................................................................................. 1,845,495,000
The Committee recommends an appropriation of $1,845,495,000 for
research, development, test and evaluation programs of the Defense
Agencies, an addition of $56,495,000 to the budget request for fiscal
year 1982.
Budget
estimate
Committee
recommendation
Techn
l
o
ogy base .....................
Strategic
ro
r
$987,694
$1
010
494
p
g
ams ........................................................
Intelligence and communications .........
79,884
,
,
117,384
..........
Defensewide mission support ......................................
OSD and OASDS
54,385
53,698
...................
.....................
Special activities ..........
-7,103
....................................................
Inflation ............
3,135
...............
-2,000
19,300
PROGRAMS AND ACrlvmEs
The budget activities and programs funded under this appropriation
are discussed below. The sums referred to are intended to reflect the
magnitude of the various programs and activities and are not to be con-
sidered as specific recommendations. These activities and programs re-
quire annual authorization prior to appropriations pursuant to the provi-
sions of section 412(b) of Public Law 86-149, as amended.
The Committee recommends the following changes to the defense
agencies budget estimate, in accordance with the authorization:
[in thousands of dollars]
Budget
estimate
Committee
recommendation
Strategic technology ................................................
Particle beam t
h
l
$145,831
$192
431
ec
no
ogy .............................................
Exp eval maj i
29,000
,
36
000
nnov tech ..............................................
Defense Nuclear A
en
273,340
,
251,340
g
cy
..............................................
Long haul comm
i
288,078
279
278
un
cations ..........................................
Information
l
19,550
,
19
700
ana
centers ...............................................
WWMCCS sys en
ineer
3,887
,
2,552
g
...............................
.................
45,052
82,552
Space-based lasers (SBL).-The Committee recommends an appropri-
ation of an additional $20,000,000 in the Defense Advanced Research
Projects Agency (DARPA) account, strategic technology-62301E, for
space-based lasers.
The Committee has reviewed the Department of Defense report to
the Congress on space-based lasers (May 15, 1981) and the report of the
Defense Science Board Task Force on review of the Department of
Defense spaced-based laser weapon study in the course of making this
recommendation. The Committee believes that these reports help clarify
space-based laser weapons issues and serve as a credible basis from
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which Congress can confidently add an additional $20,000,000 to space-
based laser weapons research and development.
Blue/green laser communications.-The Committee recommends an
addition of $10,000,000 for the DARPA blue/green laser communica-
tions program. The Committee believes that the objective of the blue/
green program, the development of a technology to enhance com-
munications with deeply submerged submarines, is a potential, longer-
term complement to the extremely low frequency (ELF) program.
The Committee recognizes that considerable technical uncertainty
remains as to which method to pursue to deploy such a blue/green
laser communications system-ground based or space based. The Com-
mittee reiterates its concern expressed in the fiscal year 1982 report that
it would be premature to preclude research on either approach.
Materials technology.-The Committee supports the addition of
$1,000,000 to DARPA's strategic technology program for carbon-carbon
materials research. This research is to go toward development of light-
weight materials for large optics. This increase is within fiscal year 1982
authorization levels. The Committee has also added $2,000,000 to the
Navy's materials technology program, to expand the Navy's develop-
ment effort on metal matrix composites and to support the develop-
ment of substitutes for critical strategic materials.
Project SORAK.-The Committee strongly supports the demonstra-
tion of advanced technology to solve surveillance and targeting prob-
lems in Korea (project SORAK). However, because the required fiscal
year 1981 funds for detailed planning were not made available, it is
recognized that this planning must still be accomplished and that most
of the major implementation funding should therefore be delayed until
fiscal year 1983-84. In addition, while the demonstration is largely
drawn from DARPA developed technology and DARPA therefore
should play a major role, this demonstration is more properly a joint
Army and Air Force project requiring close coordination with Com-
mander in Chief, Pacific and the services should be active participants.
Funds are therefore provided to DARPA in the amount of $20 million
to initiate the program during this fiscal year. However, the DARPA is
tasked to assure real service participation before additional funds will
be provided for development and deployment.
Defense Nuclear Agency.-The Defense Nuclear Agency requested
$288,078,000 for fiscal year 1982. An additional $69,000,000 was added
by the Reagan administration in its budget amendment to support: an
increase in nuclear weapons effects technology base programs; develop-
ment of hardening of Navy systems warning and dispersal methods for
nuclear capable tactical aircraft field sensors for theater nuclear forces
(TNF) systems; additional MX support; and an expansion in the under-
ground test program to provide for one test every 6 to 12 months com-
pared with the current testing rate of one every 18 to 24 months.
The Committee recommends an appropriation of $279,278,000 to sup-
port Defense Nuclear Agency (DNA) programs. The Committee finds
that the increased level of nuclear testing is required to meet MX mis-
sile and advanced ballistic reentry vehicle (ABRV) requirements, and
maintain an adequate level of technical experts needed to conduct the
underground nuclear test program.
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However, it recommends a reduction of $8,800,000 to specifically come
from the defunct MX shelter support program.
Map/chart/geodesy.-The Defense Mapping Agency (DMA) re-
quested an appropriation of $19,810,000 in fiscal year 1982 to support
Defense Mapping Agency projects. The Committee recommends this
amount. The March budget amendment included $4,500,000 for survey
support for the MX basing program. In view of the administration's
revised MX plans, part of this request is unnecessary. The Committee
recommends deletion of $1,000,000 added to the March budget amend-
ment for MX mapping support, and an addition of $1,000,000 to the
DMA budget to support other DMA activities. The remaining MX-re-
lated funding is to be used for development of new surveying equip-
ment to insure DMA's capability of meeting the geodetic and geophysi-
cal portion of the missile's accuracy requirements. The Committee
recommends an appropriation of $19,810,000 for the Defense Mapping
Agency.
Technical support to Under Secretary of Defense research and en-
gineering (USDR/E).-The Committee strongly recommends the ap-
propriation of $14,539,000 for technical support to USDR/E. The fiscal
year 1982 program includes money to continue work related to the
Export Control Act involving completion of the military critical tech-
nologies list and analyses of foreign technology availability and Warsaw
pact technology capabilities. The Committee strongly supports USDR/E
efforts in this area, as it believes that the U.S. technological leadtime ad-
vantage over the Union of Soviet Socialist Republic in military critical
technologies must be preserved.
The Committee reiterates its support for providing a separate line
item for overall DOD activities in this area. It requests that such a
designation begin in fiscal year 1983..
Long-haul communications.-The Committee recommends an appro-
priation of $19,700,000 for long-haul communications. This is $150,000
above the budget request.
These funds are recommended in support of two C' initiatives:
$100,000 for EMP hardening of certain White House facilities and
$50,000 for DCA's contribution to the development of modulation tech-
niques designed to facilitate communications propagation through scintil-
lation effects.
The Committee recommends a reduction of $19,600,000 for classified
programs and intelligence activities for the Defense Agencies. These
programs are discussed in the classified annex of this report.
DIRECTOR OF TEST AND EVALUATION, DEFENSE
1981 appropriation ................................................................................................... 542,100,000
1982 budget estimate ................................................................................................ 53,000,000
House allowance .......................................................................................................
Committee recommendation .................................................................................. 53,000,000
The recommended program includes $53,000,000 for the activities of
the Office of the Director of Test and Evaluation, Defense.
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Low altitude airfield attack system.-The Committee supports the
deletion of $60,000,000 for the low altitude airfield attack system (JP-
233), from the Air Force budget. This item was not funded in fiscal year
1981, and House-Senate conferees agreed to terminate United States
participation in the development of JP-233 in the fiscal year 1981
supplemental conference.
However, the Committee wishes to express its continued support for
the acquisition of both direct and standoff airfield attack weapons. In
particular, the Committee wishes to express its support for the planned
evaluation of JP-233 direct airfield ? attack submunitions technology
(including SG35 and HB86 submunitions technology) in the foreign
weapons evaluation program, to determine its suitability for direct low
altitude airfield attack applications for the Air Force.
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TITLE VI
SPECIAL FOREIGN CURRENCY PROGRAM
1981 appropriation ........................................................................................................ S2,760,000
1982 budget estimate .................................................................................................... 3,083,000
House allowance ............................................................................................................
Committee recommendation ........................................................................................ 3,083,000
The new obligational authority recommended in the till is $323,000
more than the amount provided in fiscal year 1981.
The special foreign currency appropriation provides dollars to be
used exclusively for the purchase from the Treasury of excess foreign
currencies which are used in the financing of programs of benefit to the
Department of Defense. Such expenditures are authorized by 80 Stat.
990.
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TITLE VII
GENERAL PROVISIONS
Section 708-Depot maintenance contracts, cost overruns, and industrial
fund activities
The Committee disagrees with the House provision by which Depart-
ment of Defense appropriations for the current fiscal year shall be
made available for payments for depot maintenance contracts, unusual
cost overruns incident to ship overhauls, and industrial fund activities.
Section 723-"Buy America" provision
The Committee disagrees with the House modification of section 723
which states that none of the funds appropriated by this act shall be
used to facilitate the sale of optional uniform items by military clothing
sales stores or by the Department of Defense operated exchange system
stores.
Additionally, the Committee concurs with the House inclusion of the
Maybank amendment in this section which prohibits the payment of a
price differential on Defense procurement contracts for the purpose of
relieving high unemployment. The Committee disagrees, however, that
fiscal year 1982 funds should be used to continue the test involving the
Defense Logistics Agency.
Section 728-Legislative liaison activities
The Committee agrees with the provision included by the House to
maintain the limitation on legislative liaison activities at $7,500,000 in-
stead of the $8,000,000 as requested in the budget estimate.
Section 733-Transfer of funds
The Committee concurs with the House provision permitting the De-
partment to transfer funds only between appropriations available in the
act, and is identical to the transfer provision contained in the fiscal year
1981 Defense Appropriations Act. The budget requested authority to
transfer not to exceed $1,000,000,000; the Committee agrees with the
House, however, in limiting this authority to $750,000,000.
Section 735--Federal employees compensation fund
The Committee concurs with the House provision placing a limitation
of $206,100,000 on funds available for payment to the Federal em-
ployees compensation fund as established by 5. U.S.C. 8147 'This sec-
tion is discussed earlier in the report.
Section 741-Civilian health and medical program of the uniformed ser-
vices (CHAMPUS)
The Committee disagrees with the House provision that limitations
on CHAMPUS funding shall not apply to payments that supplement
primary coverage provided by other insurance plans or programs that
pay for at least 75 per centum of the covered services.
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Section 760-Purchase of military insignia
The Committee concurs in the House language which states that
none of the funds appropriated by this act shall be available for the pur-
chase of insignia for resale unless the sales price of such insignia is ad-
justed to the extent necessary to recover the cost of such purchases.
Section 765-Medical care for foreign diplomats and military personnel
The Committee has deleted a provision included in the House bill
prohibiting the Department of Defense from providing medical care in
the United States on an inpatient basis to foreign military and diplo-
matic personnel or their dependents unless the Department is reim-
bursed for the full cost of providing such care.
Section 765-Military aircraft and vehicles leasing
The Committee recommends inclusion of a general provision prohibit-
ing funds appropriated in this act from being used for the leasing in the
United States of military aircraft or vehicles when suitable aircraft or
vehicles are commercially available in the private sector.
Section 769-Teachers pay
The Committee has deleted House language which prohibits teachers
from receiving an increase in pay as the result of the establishment of
any new category of pay that was not in effect prior to the 1979-80
school year.
Section 770-Teachers pay
The Committee has deleted a House provision which prohibits
teachers from receiving an increase in pay in excess of 4.8 percent for
the 1980-81 school year.
Section 769-9mm military handguns
The Committee has inserted a general provision which states that
none of the funds available by this act shall be used for the evaluation
or procurement of new 9mm weapons to replace existing .45 and .38
caliber military handguns.
Section 770- CivilFan health and medical program of the uniformed
services
The Committee has inserted a general provision as requested in the
budget which permits the transfer of funds from the operation and
maintenance, defense agencies accounts to the operation and main-
tenance of the military departments accounts for the purpose of con-
ducting a test to evaluate a capitation approach to providing medical
care.
Section 771-Federal Emergency Management Agency
The Committee has inserted a general provision which permits the
Department of Defense to transfer not to exceed $1,700,000 of Reserve
Personnel appropriations to the Federal Emergency Management
Agency.
Section 774-Prohibition on expansion of the competitive rate program
The Committee recommends a general provision not contained in the
House bill prohibiting the use of funds to expand the competitive rate
program for the movement of household goods to Alaska and Hawaii.
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This provision was included in the fiscal years 1980-81 Defense
Appropriations Acts.
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TITLE VIII
RELATED AGENCIES
INTELLIGENCE COMMUNITY STAFF
1981 appropriation ......................................................................................................... S18,271,000
1982 budget estimate .................................................................................................... 13,563,000
House allowance ............................................................................................................
Committee recommendation ........................................................................................ 13,563,000
The Committee recommends an appropriation of $13,563,000 for the
intelligence community staff. The recommendation agrees with the
President's budget estimate (as amended) and is a reduction of
$4,708,000 below the fiscal year 1981 appropriation.
The reduction below the fiscal year 1981 appropriation is primarily as-
sociated with nonrecurring costs involving the development of a new
communitywide system for security control and safeguarding of intel-
ligence programs and materials which require special protection.
The intelligence community staff (ICS) was initially established with
245 personnel positions to support the Director of Central Intelligence
in overall management and direction of the intelligence community. A
recent reorganization and consolidation of ICS activities was recently
completed and 230 personnel positions will be available for the in-
telligence community staff.
The recommended appropriation includes $2,300,000 for external
research and analysis projects. The Committee notes that funds re-
quested for this activity have increased rapidly over the past 3 years.
This is offset in part by the fact that the staff has assumed new respon-
sibilities following the recent reorganization and the Committee
will this level of activity during the current fiscal year. The staff
has a relatively large cadre of senior intelligence personnel and the
Committee will require a detailed explanation of any future increases in
this activity.
PAYME\-r TO THE CENTRAL INTELLIGENCE AGENCY RETIREMENT AND
DISABILITY SYSTEM FUND
1981 appropriation ........................................................................................................ $55,300,000
1982 budget estimate .................................................................................................... 84,600,000
House allowance ............................................................................................................
Committee recommendation ........................................................................................ 84,600,000
The Committee recommends appropriation of $84,600,000 for the
payment to the Central Intelligence Agency retirement and disability
system fund appropriation. The Committee recommendation concurs
with the budget estimate and is an increase of $29,300,000 above the fis-
cal year 1981 appropriation.
The Central Intelligence Agency Retirement Act of 1964 for Certain
Employees (Public Law 88-643, October 3, 1964) authorized the es-
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tablishment of a Central Intelligence Agency retirement and disability
system for a limited number of Agency employees and authorized the
establishment and maintenance of a fund from which benefits would be
paid to qualified beneficiaries. The fund finances the cost of. (1) inter-
est on the unfunded liability, (2) annuities attributable to credit allowed
for military services, (3) benefits not met by employee/employer con-
tributions, and (4) the increase in unfunded liability resulting from
liberalized benefits and Federal pay raises.
The benefits structure of fund is essentially the same as for the civil
service retirement system with only minor exceptions. It is estimated
that annuitants and survivors will be receiving benefits by the end of fis-
cal year 1981.
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