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NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2000
(Senate - May 27, 1999)

Text of this article available as: TXT PDF [Pages S6160-S6274] [[Page S6160]] NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2000 The PRESIDING OFFICER. Under the previous order, the Senate will now resume consideration of S. 1059, which the clerk will report. The legislative assistant read as follows: A bill (S. 1059) to authorize appropriations for fiscal year 2000 military activities of the Department of Defense, for military construction, and for defense activities of the Department of Energy, to prescribe personnel strengths for such fiscal year for the Armed Forces, and for other purposes. Pending: Lott amendment No. 394, to improve the monitoring of the export of advanced satellite technology, to require annual reports with respect to Taiwan, and to improve the provisions relating to safeguards, security, and counterintelligence at Department of Energy facilities. Allard/Harkin amendment No. 396, to express the sense of Congress that no major change to the governance structure of the Civil Air Patrol should be mandated by Congress until a review of potential improvements in the management and oversight of Civil Air Patrol operations is conducted. Amendments Nos. 411 Through 441, En Bloc Mr. WARNER. Mr. President, it is the intention of the manager to try to do the cleared amendments. I want to make certain that the distinguished ranking member is in concurrence. That is indicated, so I think I will proceed. On behalf of myself and the ranking member, the Senator from Michigan, I send 31 amendments to the desk. I would say before the clerk reports that this package of amendments is for Senators on both sides of the aisle and has been cleared by the minority. I send the amendments to the desk at this time and ask that they be considered en bloc. The PRESIDING OFFICER. Without objection, it is so ordered. The clerk will report. The legislative clerk read as follows: The Senator from Virginia [Mr. Warner], for himself and Mr. Levin, and on behalf of other Senators, proposes amendments en bloc numbered 411 through 441. Mr. WARNER. Mr. President, I ask unanimous consent that the amendments be agreed to en bloc and that the motion to reconsider be laid upon the table. I further ask that any statements relating to these amendments be printed in the Record. The PRESIDING OFFICER. Without objection, it is so ordered. The amendments (Nos. 411 through 441) agreed to en bloc are as follows: amendment no. 411 (Purpose: To authorize the Secretary of Defense to incorporate into the Pentagon Renovation Program the construction of certain security enhancements) On page 428, after line 19, insert the following new section: SEC. . ENHANCEMENT OF PENTAGON RENOVATION ACTIVITIES. The Secretary of Defense in conjunction with the Pentagon Renovation Program is authorized to design and construct secure secretarial office and support facilities and security-related changes to the METRO entrance at the Pentagon Reservation. The Secretary shall, not later than January 15, 2000, submit to the congressional defense committees the estimated cost for the planning, design, construction, and installation of equipment for these enhancements, together with the revised estimate for the total cost of the renovation of the Pentagon. ____ amendment no. 412 (Purpose: To authorize the appropriation for the increased pay and pay reform for members of the uniformed services contained in the 1999 Emergency Supplemental Appropriations Act) On page 98, line 15, strike ``$71,693,093,000.'' and insert in lieu thereof the following: ``$71,693,093,000, and in addition funds in the total amount of $1,838,426,000 are authorized to be appropriated as emergency appropriations to the Department of Defense for fiscal year 2000 for military personnel, as appropriated in section 2012 of the 1999 Emergency Supplemental Appropriations Act (Public Law 106- 31).'' ____ amendment no. 413 (Purpose: To authorize dental benefits for retirees that are comparable to those provided for dependents of members of the uniformed services) In title VII, at the end of subtitle B, add the following: SEC. 717. ENHANCEMENT OF DENTAL BENEFITS FOR RETIREES. Subsection (d) of section 1076c of title 10, United States Code, is amended to read as follows: `'(d) Benefits Available Under the Plan.--The dental insurance plan established under subsection (a) shall provide benefits for dental care and treatment which may be comparable to the benefits authorized under section 1076a of this title for plans established under that section and shall include diagnostic services, preventative services, endodontics and other basic restorative services, surgical services, and emergency services.''. ____ amendment no. 413 Mr. ALLARD. Mr. President, this Amendment will give the Department of Defense the ability to significantly strengthen the dental benefits for over 270,000 of our nation's military retirees and their family members. The TRICARE retiree dental program began on February 1, 1998 and is an affordable plan paid for exclusively by retiree premiums. According to the Department, the enrollment in the program has exceeded all projections. While current law covers the most basic dental procedures, the Department of Defense does not have the flexibility to expand their benefits without a legislative change. Our nation's military retirees have expressed a desire to both the Department and the contractors for more services, and are willing to pay a reasonable price for these extra benefits. Currently, the retiree dental program is limited to an annual cleaning, filings, root canals, oral surgeries and the like. This amendment would change the law to allow, but not mandate, the Department the opportunity to offer an expanded list of benefits such as dentures, bridges and crowns, which are needs characteristic of our nation's retired military members. If the Department decided to offer these service, they would continue to be paid for by member premiums. In conclusion, I would ask the support of all my colleagues for this important amendment to allow the Department to give the needed dental services to our valued military retires. Thank you for the time. amendment no. 414 (Purpose: To provide $6,000,000 (in PE 604604F) for the Air Force for the 3-D advanced track acquisition and imaging system, and to provide an offset) On page 29, line 12, increase the amount by $6,000,000. On page 29, line 14, decrease the amount by $6,000,000. ____ 3-d advanced track acquisition and imaging system Mr. MACK. Mr. President, I rise today in support of additional funds to be made available for Air Force Research, Development, Test and Evaluation in the Fiscal Year 2000 Department of Defense Authorization measure to be used to complete development of a state-of-the-art 3 dimensional optical imaging and tracking instrumentation data system. The 3 Data System is a laser radar system that provides high fidelity time, space, positioning information (TSPI) on test articles during flight. The instrumentation can be applied to air, ground, and sea targets. Additionally, it will provide the potential capability for over-the-horizon tracking from an airborne platform or pedestal mounted ground platform. It includes a multi-object tracking capability that will allow simultaneous tracking of up to 20 targets throughout their profile. The system will enable testing of advanced smart weapon systems; force-on-force exercises where multiple aircraft and ground vehicle tracking is involved; over water scoring of large footprint autonomous guided and unguided munitions; and enable an improvement to existing aging radar presently in service. It is mobile and can support testing at other major ranges and locations in support of other Service's requirements. The Air Force has identified the 3-Data System as having high military value as it will enable the effective evaluation of the performance of advanced weapon systems to be utilized in future conflicts. The Air Force has informed me that precision engagement is one of the emerging operational concepts in Joint Vision 2010. The 3- Data system would provide a capability to effectively evaluate the performance of advanced precision guided munitions and smart weapons prior to their use in a wartime environment. It would also directly support ongoing activities abroad through Quick Reaction Tasking that may require a multiple object tracking device to evaluate engagement profiles. This requirement is documented through 46th Test Wing strategic planning initiatives, developmental program test plans, and munitions strategic planning roadmaps. [[Page S6161]] The Air Force is presently attempting to meet this requirement through existing radar systems and optical tracking systems which cannot track multiple objects to the fidelity levels required and which require extensive post-mission data reduction times. This system will provide the capability to effectively track multiple targets simultaneously. Mr. President, I thank the Committee for their willingness to support this amendment. The 3-Data System will play a important role in enabling the Air Force to evaluate the capabilities and limitations of multiple smart weapons and their delivery systems during their develpoment. amendment no. 415 (Purpose: To amend a per purchase dollar limitation of funding assistance for procurement of equipment for the National Guard for drug interdiction and counter-drug activities so as to apply the limitation to each item of equipment procured) In title III, at the end of subtitle D, add the following: SEC. 349. MODIFICATION OF LIMITATION ON FUNDING ASSISTANCE FOR PROCUREMENT OF EQUIPMENT FOR THE NATIONAL GUARD FOR DRUG INTERDICTION AND COUNTER--DRUG ACTIVITIES. Section 112(a)(3) of title 32, United States Code, is amended by striking ``per purchase order'' in the second sentence and inserting ``per item''. ____ AMENDMENT NO. 416 (Purpose: To require the Secretary of the Army to review the incidence of violations of State and local motor vehicle laws and to submit a report on the review to Congress) On page 357, between lines 11 and 12, insert the following: SEC. 1032. REVIEW OF INCIDENCE OF STATE MOTOR VEHICLE VIOLATIONS BY ARMY PERSONNEL. (a) Review and Report Required.--The Secretary of the Army shall review the incidence of violations of State and local motor vehicle laws applicable to the operation and parking of Army motor vehicles by Army personnel during fiscal year 1999, and, not later than March 31, 2000, submit a report on the results of the review to Congress. (b) Content of Report.--The report under subsection (a) shall include the following: (1) A quantitative description of the extent of the violations described in subsection (a). (2) An estimate of the total amount of the fines that are associated with citations issued for the violations. (3) Any recommendations that the Inspector General considers appropriate to curtail the incidence of the violations. ____ AMENDMENT NO. 417 (Purpose: To substitute for section 654 a repeal of the reduction in military retired pay for civilian employees of the Federal Government) Strike section 654, and insert the following: SEC. 654. REPEAL OF REDUCTION IN RETIRED PAY FOR CIVILIAN EMPLOYEES. (a) Repeal.--(1) Section 5532 of title 5, United States Code, is repealed. (2) The chapter analysis at the beginning of chapter 55 of such title is amended by striking the item relating to section 5532. (b) Effective Date.--The amendments made by subsection (a) shall take effect on the first day of the first month that begins after the date of the enactment of this Act. repeal dual compensation limitations Mr. CRAPO. Mr. President, my amendment is co-sponsored by the Senate Majority Leader, Senator Lott. On February 23, 1999, the Senate voted 87 to 11 in favor of this same amendment during consideration of S. 4. My amendment will repeal the current statute that reduces retirement pay for regular officers of a uniformed service who chose to work for the federal government. The uniformed services include the Army, Navy, Air Force, Marine Corps, Coast Guard, Public Health Service and the National Oceanographic and Atmospheric Agency. If a retired officer from the uniform services comes to work for the Senate, his or her retirement pay is reduced by about 50 percent, after the first $8,000, to offset for payments from the Senate. The retired officer can request a waiver but the executive, legislative and judicial branches of government handle the waiver process differently on a case by case basis. The current dual compensation limitation is also discriminatory in that regular officers are covered but reservists or enlisted personnel are not covered by the limitation. The Congressional Budget Office has recently looked at the current dual compensation limitation and it is estimated that around 6,000 military retirees lose an average of $800 per month because of this prohibition. I have been unable to find one good reason to explain why we should want our law to discourage retired members of the uniformed services from seeking full time employment with the Federal Government. Our laws should not reduce a benefit military retirees have earned because they chose to work for the federal government. My amendment would fix this inequity, it would give retired officers equal pay for equal work from the federal government and it would give the federal government access to a workforce that currently avoids employment with the Federal Government. I am pleased the managers of the bill have agreed to accept my amendment and I thank them for their support for this important amendment. AMENDMENT NO. 418 (Purpose: To establish as a policy of the United States that the United States will seek to establish a multinational economic embargo against any foreign country with which the United States is engaged in armed conflict, and for other purposes) In title X, at the end of subtitle D, add the following: SEC. 1061. MULTINATIONAL ECONOMIC EMBARGOES AGAINST GOVERNMENTS IN ARMED CONFLICT WITH THE UNITED STATES. (a) Policy on the Establishment of Embargoes.-- (1) In general.--It is the policy of the United States, that upon the use of the Armed Forces of the United States to engage in hostilities against any foreign country, the President shall as appropriate-- (A) seek the establishment of a multinational economic embargo against such country; and (B) seek the seizure of its foreign financial assets. (b) Reports.--Not later than 20 days, or earlier than 14 days, after the first day of the engagement of the United States in any armed conflict described in subsection (a), the President shall, if the armed conflict continues, submit a report to Congress setting forth-- (1) the specific steps the United States has taken and will continue to take to institute the embargo and financial asset seizures pursuant to subsection (a); and (2) any foreign sources of trade of revenue that directly or indirectly support the ability of the adversarial government to sustain a military conflict against the Armed Forces of the United States. ____ AMENDMENT NO. 419 (Purpose: To require a report on the Air Force distributed mission training) On page 54, after line 24, insert the following: Subtitle E--Other Matters SEC. 251. REPORT ON AIR FORCE DISTRIBUTED MISSION TRAINING. (a) Requirement.--The Secretary of the Air Force shall submit to Congress, not later than January 31, 2000, a report on the Air Force Distributed Mission Training program. (b) Content of Report.--The report shall include a discussion of the following: (1) The progress that the Air Force has made to demonstrate and prove the Air Force Distributed Mission Training concept of linking geographically separated, high-fidelity simulators to provide a mission rehearsal capability for Air Force units, and any units of any of the other Armed Forces as may be necessary, to train together from their home stations. (2) The actions that have been taken or are planned to be taken within the Department of the Air Force to ensure that-- (A) an independent study of all requirements, technologies, and acquisition strategies essential to the formulation of a sound Distributed Mission Training program is under way; and (B) all Air Force laboratories and other Air Force facilities necessary to the research, development, testing, and evaluation of the Distributed Mission Training program have been assessed regarding the availability of the necessary resources to demonstrate and prove the Air Force Distributed Mission Training concept. ____ AMENDMENT NO. 420 (Purpose: To add test and evaluation laboratories to the pilot program for revitalizing Department of Defense laboratories; and to add an authority for directors of laboratories under the pilot program) On page 48, line 5, after ``laboratory'', insert the following: ``, and the director of one test and evaluation laboratory,''. On page 48, between lines 11 and 12, insert the following: (B) To develop or expand innovative methods of operation that provide more defense research for each dollar of cost, including to carry out such initiatives as focusing on the performance of core functions and adopting more business-like practices. On page 48, line 12, strike ``(B)'' and insert ``(C)''. On page 48, beginning on line 14, strike ``subparagraph (A)'' and insert ``subparagraphs (A) and (B)''. [[Page S6162]] ____ AMENDMENT NO. 421 (Purpose: To authorize land conveyances with respect to the Twin Cities Army Ammunition Plant, Minnesota) On page 453, between lines 10 and 11, insert the following: SEC. 2832. LAND CONVEYANCES, TWIN CITIES ARMY AMMUNITION PLANT, MINNESOTA. (a) Conveyance to City Authorized.--The Secretary of the Army may convey to the City of Arden Hills, Minnesota (in this section referred to as the ``City''), all right, title, and interest of the United States in and to a parcel of real property, including improvements thereon, consisting of approximately 4 acres at the Twin Cities Army Ammunition Plant, for the purpose of permitting the City to construct a city hall complex on the parcel. (b) Conveyance to County Authorized.--The Secretary of the Army may convey to Ramsey County, Minnesota (in this section referred to as the ``County''), all right, title, and interest of the United States in and to a parcel of real property, including improvements thereon, consisting of approximately 35 acres at the Twin Cities Army Ammunition Plant, for the purpose of permitting the County to construct a maintenance facility on the parcel. (c) Consideration.--As a consideration for the conveyances under this section, the City shall make the city hall complex available for use by the Minnesota National Guard for public meetings, and the County shall make the maintenance facility available for use by the Minnesota National Guard, as detailed in agreements entered into between the City, County, and the Commanding General of the Minnesota National Guard. Use of the city hall complex and maintenance facility by the Minnesota National Guard shall be without cost to the Minnesota National Guard. (d) Description of Property.--The exact acreage and legal description of the real property to be conveyed under this section shall be determined by surveys satisfactory to the Secretary. The cost of the survey shall be borne by the recipient of the real property. (e) Additional Terms and Conditions.--The Secretary may require such additional terms and conditions in connection with the conveyances under this section as the Secretary considers appropriate to protect the interests of the United States. ____ AMENDMENT NO. 422 (Purpose: To require a land conveyance, Naval Training Center, Orlando, Florida) On page 459, between lines 17 and 18, insert the following: SEC. 2844. LAND CONVEYANCE, NAVAL TRAINING CENTER, ORLANDO, FLORIDA. (a) Conveyance Required.--The Secretary of the Navy shall convey all right, title, and interest of the United States in and to the land comprising the main base portion of the Naval Training Center and the McCoy Annex Areas, Orlando, Florida, to the City of Orlando, Florida, in accordance with the terms and conditions set forth in the Memorandum of Agreement by and between the United States of America and the City of Orlando for the Economic Development Conveyance of Property on the Main Base and McCoy Annex Areas of the Naval Training Center, Orlando, executed by the Parties on December 9, 1997, as amended. ____ amendment no. 423 (Purpose: To modify the conditions for issuing obsolete or condemned rifles of the Army and blank ammunition without charge) In title X, at the end of subtitle D, add the following: SEC. 1061. CONDITIONS FOR LENDING OBSOLETE OR CONDEMNED RIFLES FOR FUNERAL CEREMONIES. Section 4683(a)(2) of title 10, United States Code, is amended to read as follows: ``(2) issue and deliver those rifles, together with blank ammunition, to those units without charge if the rifles and ammunition are to be used for ceremonies and funerals in honor of veterans at national or other cemeteries.''. ____ amendment no. 424 (Purpose: To authorize use of Navy procurement funds for advance procurement for the Arleigh Burke class destroyer program) On page 25, between lines 17 and 18, insert the following: (c) Other Funds for Advance Procurement.--Notwithstanding any other provision of this Act, of the funds authorized to be appropriated under section 102(a) for procurement programs, projects, and activities of the Navy, up to $190,000,000 may be made available, as the Secretary of the Navy may direct, for advance procurement for the Arleigh Burke class destroyer program. Authority to make transfers under this subsection is in addition to the transfer authority provided in section 1001. ____ amendment no. 425 (Purpose: To set aside funds for the procurementof the MLRS rocket inventory and reuse model) In title I, at the end of subtitle B, add the following: SEC. 114. MULTIPLE LAUNCH ROCKET SYSTEM. Of the funds authorized to be appropriated under section 101(2), $500,000 may be made available to complete the development of reuse and demilitarization tools and technologies for use in the disposition of Army MLRS inventory. ____ amendment no. 426 (Purpose: To expand the entities eligible to participate in alternative authority for acquisition and improvement of military housing) On page 440, between lines 6 and 7, insert the following: SEC. 2807. EXPANSION OF ENTITIES ELIGIBLE TO PARTICIPATE IN ALTERNATIVE AUTHORITY FOR ACQUISITION AND IMPROVEMENT OF MILITARY HOUSING. (a) Definition of Eligible Entity.--Section 2871 of title 10, United States Code, is amended-- (1) by redesignating paragraphs (5) through (7) as paragraphs (6) through (8) respectively; and (2) by inserting after paragraph (4) the following new paragraph (5): ``(5) The term `eligible entity' means any individual, corporation, firm, partnership, company, State or local government, or housing authority of a State or local government.''. (b) General Authority.--Section 2872 of such title is amended by striking ``private persons'' and inserting ``eligible entities''. (c) Direct Loans and Loan Guarantees.--Section 2873 of such title is amended-- (1) in subsection (a)(1)-- (A) by striking ``persons in private sector'' and inserting ``an eligible entity''; and (B) by striking ``such persons'' and inserting ``the eligible entity''; and (2) in subsection (b)(1)-- (A) by striking ``any person in the private sector'' and inserting ``an eligible entity''; and (B) by striking ``the person'' and inserting ``the eligible entity''. (d) Investments.--Section 2875 of such title is amended-- (1) in subsection (a), by striking ``nongovernmental entities'' and inserting ``an eligible entity''; (2) in subsection (c)-- (A) by striking ``a nongovernmental entity'' both places it appears and inserting ``an eligible entity''; and (B) by striking ``the entity'' each place it appears and inserting ``the eligible entity''; (3) in subsection (d), by striking ``nongovernmental'' and inserting ``eligible''; and (4) in subsection (e), by striking ``a nongovernmental entity'' and inserting ``an eligible entity''. (e) Rental Guarantees.--Section 2876 of such title is amended by striking ``private persons'' and inserting ``eligible entities''. (f) Differential Lease Payments.--Section 2877 of such title is amended by striking ``private''. (g) Conveyance or Lease of Existing Property and Facilities.--Section 2878(a) of such title is amended by striking ``private persons'' and inserting ``eligible entities''. (h) Clerical Amendments.--(1) The heading of section 2875 of such title is amended to read as follows: ``Sec. 2875. Investments''. (2) The table of sections at the beginning of subchapter IV of chapter 169 of such title is amended by striking the item relating to section 2875 and inserting the following new item: ``2875. Investments.''. ____ amendment no. 427 (Purpose: To authorize medical and dental care for certain members of the Armed Forces incurring injuries on inactive-duty training) On page 272, between lines 8 and 9, insert the following: SEC. 717. MEDICAL AND DENTAL CARE FOR CERTAIN MEMBERS INCURRING INJURIES ON INACTIVE-DUTY TRAINING. (a) Order to Active Duty Authorized.--(1) Chapter 1209 of title 10, United States Code, is amended by adding at the end the following: ``Sec. 12322. Active duty for health care ``A member of a uniformed service described in paragraph (1)(B) or (2)(B) of section 1074a(a) of this title may be ordered to active duty, and a member of a uniformed service described in paragraph (1)(A) or (2)(A) of such section may be continued on active duty, for a period of more than 30 days while the member is being treated for (or recovering from) an injury, illness, or disease incurred or aggravated in the line of duty as described in such paragraph.''. (2) The table of sections at the beginning of such chapter is amended by adding at the end the following: ``12322. Active duty for health care.''. (b) Medical and Dental Care for Members.--Subsection (e) of section 1074a of such title is amended to read as follows: ``(e)(1) A member of a uniformed service on active duty for health care or recuperation reasons, as described in paragraph (2), is entitled to medical and dental care on the same basis and to the same extent as members covered by section 1074(a) of this title while the member remains on active duty. ``(2) Paragraph (1) applies to a member described in paragraph (1) or (2) of subsection (a) who, while being treated for (or recovering from) an injury, illness, or disease incurred or aggravated in the line of duty, is continued on active duty pursuant to a modification or extension of orders, or is ordered to active duty, so as to result in active duty for a period of more than 30 days.''. (c) Medical and Dental Care for Dependents.--Subparagraph (D) of section 1076(a)(2) of such title is amended to read as follows: [[Page S6163]] ``(D) A member on active duty who is entitled to benefits under subsection (e) of section 1074a of this title by reason of paragraph (1), (2), or (3) of subsection (a) of such section.''. Mr. CLELAND. Mr. President, I am pleased to offer this amendment to S. 1059, The National Defense Authorization Act for Fiscal Year 2000, which seeks to protect the men and women of our reserve military components. The 1998 National Defense Authorization Act provided health care coverage for Reservists and Guardsmen incurring injury, illness or disease while performing duty in an active-duty status. However, it overlooked those servicemen and women performing duty in ``inactive duty'' status, which is the status they are in while performing their monthly ``drill weekends.'' This problem was dramatically illustrated recently when an Air Force Reserve C-130 crashed in Honduras, killing three crewmembers. One of the survivors was unable to work for over a year due to the serious nature of his injuries. While he was reimbursed for lost earnings, this serviceman was only eligible for military medical care related to injuries sustained in the crash. His family lost their civilian health insurance and was ineligible to receive medical from the military. Had he been on military orders of more than 30 days, both he and his family would have been eligible for full military medical benefits for the duration of his recovery. My dear colleagues, this is unacceptable. We must plug this loophole so that these tragic circumstances are not repeated. Why is it so important that we look out for our Guardsmen and Reservists? It is because our military services have been reduced by one-third, while worldwide commitments have increased fourfold, leading to a dramatic increase in the dependence on our reserve components to meet our worldwide commitments. Like their active duty counterparts, they are dealing with the demands of a high operations tempo; yet they must meet the additional challenge of balancing their military duty with their civilian employment. Members of the Guard and Reserve have been participating at record levels. Nearly 270,000 Reservists and Guardsmen were mobilized during Operations Desert Shield and Desert Storm. Over 17,000 Reservists and Guardsmen have answered the Nation's call to bring peace to Bosnia. And, recently, over 4,000 Reservists and Guardsmen have been called up to support current operations in Kosovo. The days of the ``weekend warrior'' are long gone. In addition to significant contributions to military operations, members of the reserve components have delivered millions of pounds of humanitarian cargo to all corners of the globe. Closer to home, they have responded to numerous state emergencies, such as the devastating floods that struck in America's heartland last year. The men and women of the Reserve Components are on duty all over the world, every day of the year. Considering everything our citizen soldiers, sailors, airmen and marines have done for us, we must not turn our backs on them and their families in their times of need. Please join me in supporting this amendment providing for those who provide for us. amendment no. 428 (Purpose: To refine and extend Federal acquisition streamlining) At the end of title VIII, add the following: SEC. 807. STREAMLINED APPLICABILITY OF COST ACCOUNTING STANDARDS. (a) Applicability.--Paragraph (2) of section 26(f) of the Office of Federal Procurement Policy Act (41 U.S.C. 422(f)(2)) is amended-- (1) by redesignating subparagraph (C) as subparagraph (D); (2) by striking subparagraph (B) and inserting the following: ``(B) The cost accounting standards shall not apply to a contractor or subcontractor for a fiscal year (or other one- year period used for cost accounting by the contractor or subcontractor) if the total value of all of the contracts and subcontracts covered by the cost accounting standards that were entered into by the contractor or subcontractor, respectively, in the previous or current fiscal year (or other one-year cost accounting period) was less than $50,000,000. ``(C) Subparagraph (A) does not apply to the following contracts or subcontracts for the purpose of determining whether the contractor or subcontractor is subject to the cost accounting standards: ``(i) Contracts or subcontracts for the acquisition of commercial items. ``(ii) Contracts or subcontracts where the price negotiated is based on prices set by law or regulation. ``(iii) Firm, fixed-price contracts or subcontracts awarded on the basis of adequate price competition without submission of certified cost or pricing data. ``(iv) Contracts or subcontracts with a value that is less than $5,000,000.''. (b) Waiver.--Such section is further amended by adding at the end the following: ``(5)(A) The head of an executive agency may waive the applicability of cost accounting standards for a contract or subcontract with a value less than $10,000,000 if that official determines in writing that-- ``(i) the contractor or subcontractor is primarily engaged in the sale of commercial items; and ``(ii) the contractor or subcontractor would not otherwise be subject to the cost accounting standards. ``(B) The head of an executive agency may also waive the applicability of cost accounting standards for a contract or subcontract under extraordinary circumstances when necessary to meet the needs of the agency. A determination to waive the applicability of cost accounting standards under this subparagraph shall be set forth in writing and shall include a statement of the circumstances justifying the waiver. ``(C) The head of an executive agency may not delegate the authority under subparagraph (A) or (B) to any official in the executive agency below the senior policymaking level in the executive agency. ``(D) The Federal Acquisition Regulation shall include the following: ``(i) Criteria for selecting an official to be delegated authority to grant waivers under subparagraph (A) or (B). ``(ii) The specific circumstances under which such a waiver may be granted. ``(E) The head of each executive agency shall report the waivers granted under subparagraphs (A) and (B) for that agency to the Board on an annual basis.''. (c) Construction Regarding Certain Not-For-Profit Entities.--The amendments made by this section shall not be construed as modifying or superseding, nor as intended to impair or restrict, the applicability of the cost accounting standards to-- (1) any educational institution or federally funded research and development center that is associated with an educational institution in accordance with Office of Management and Budget Circular A-21, as in effect on January 1, 1999; or (2) any contract with a nonprofit entity that provides research and development and related products or services to the Department of Defense. SEC. 808. GUIDANCE ON USE OF TASK ORDER AND DELIVERY ORDER CONTRACTS. (a) Guidance in the Federal Acquisition Regulation.--Not later than 180 days after the date of the enactment of this Act, the Federal Acquisition Regulation issued in accordance with sections 6 and 25 of the Office of Federal Procurement Policy Act shall be revised to provide guidance to agencies on the appropriate use of task order and delivery order contracts in accordance with sections 2304a through 2304d of title 10, United States Code, and sections 303H through 303K of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 253h through 253k). (b) Content of Guidance.--The regulations issued pursuant to subsection (a) shall, at a minimum, provide the following: (1) Specific guidance on the appropriate use of government- wide and other multiagency contracts entered in accordance with the provisions of law referred to in that subsection. (2) Specific guidance on steps that agencies should take in entering and administering multiple award task order and delivery order contracts to ensure compliance with-- (A) the requirement in section 5122 of the Clinger-Cohen Act (40 U.S.C. 1422) for capital planning and investment control in purchases of information technology products and services; (B) the requirement in section 2304c(b) of title 10, United States Code, and section 303J(b) of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 253j(b)) to ensure that all contractors are afforded a fair opportunity to be considered for the award of task orders and delivery orders; and (C) the requirement in section 2304c(c) of title 10, United States Code, and section 303J(c) of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 253j(c)) for a statement of work in each task order or delivery order issued that clearly specifies all tasks to be performed or property to be delivery under the order. (c) GSA Federal Supply Schedules Program.--The Administrator for Federal Procurement Policy shall consult with the Administrator of General Services to assess the effectiveness of the multiple awards schedule program of the General Services Administration referred to in section 309(b)(3) of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 259(b)(3)) that is administered as the Federal Supply Schedules program. The assessment shall include examination of the following: (1) The administration of the program by the Administrator of General Services. (2) The ordering and program practices followed by Federal customer agencies in using schedules established under the program. (d) GAO Report.--Not later than one year after the date on which the regulations required by subsection (a) are published in the [[Page S6164]] Federal Register, the Comptroller General shall submit to Congress an evaluation of executive agency compliance with the regulations, together with any recommendations that the Comptroller General considers appropriate. SEC. 809. CLARIFICATION OF DEFINITION OF COMMERCIAL ITEMS WITH RESPECT TO ASSOCIATED SERVICES. Section 4(12) (E) of the Office of Federal Procurement Policy Act (41 U.S.C. 403(E)) is amended to read as follows: ``(E) Installation services, maintenance services, repair services, training services, and other services if-- ``(i) the services are procured for support of an item referred to in subparagraph (A), (B), (C), or (D), regardless of whether such services are provided by the same source or at the same time as the item; and ``(ii) the source of the services provides similar services contemporaneously to the general public under terms and conditions similar to those offered to the Federal Government.''. SEC. 810. USE OF SPECIAL SIMPLIFIED PROCEDURES FOR PURCHASES OF COMMERCIAL ITEMS IN EXCESS OF THE SIMPLIFIED ACQUISITION THRESHOLD. (a) Extension of Authority.--Section 4202(e) of the Clinger-Cohen Act of 1996 (divisions D and E of Public Law 104-106; 110 Stat. 654; 10 U.S.C. 2304 note) is amended by striking ``three years after the date on which such amendments take effect pursuant to section 4401(b)'' and inserting ``January 1, 2002''. (b) GAO Report.--Not later than March 1, 2001, the Comptroller General shall submit to Congress an evaluation of the test program authorized by section 4204 of the Clinger- Cohen Act of 1996, together with any recommendations that the Comptroller General considers appropriate regarding the test program or the use of special simplified procedures for purchases of commercial items in excess of the simplified acquisition threshold. SEC. 811. EXTENSION OF INTERIM REPORTING RULE FOR CERTAIN PROCUREMENTS LESS THAN $100,000. Section 31(e) of the Office of Federal Procurement Policy Act (41 U.S.C. 427(e)) is amended by striking ``October 1, 1999'' and inserting ``October 1, 2004''. Mr. THOMPSON. Mr. President, I offer this amendment on behalf of myself as chairman of the Governmental Affairs Committee and Senator Lieberman, the Committee's ranking minority member, and Senators Warner and Levin, the chairman and ranking minority member of the Armed Services Committee. Senator Lieberman and I thank the Armed Services chairman and ranking member for their cooperation and assistance in preparing this amendment which will benefit not only the procurement process within the Department of Defense, but other agencies across the Federal government as well. The amendment which we offer today began as a request from the Administration and others to include additional procurement-related reforms to those enacted over the past several years and those already included in S. 1059. Our amendment includes five provisions, as follows: (1) Streamlined Applicability of Cost Accounting Standards; (2) Task Order and Delivery Order Contracts; (3) Clarification to the Definition of Commercial Items; (4) Two-year Extension of Commercial Items Test Program; and (5) Extension of Interim Reporting Rule on Contracts with Small Business. I ask unanimous consent that a joint statement of sponsors explaining the amendment be placed in the Record immediately following my statement. This statement represents the consensus view of the sponsors as to the meaning and intent of the amendment. There being no objection, the statement was ordered to be printed in the Record, as follows: Joint Statement of Sponsors 1. Streamlined Applicability of Cost Accounting Standards In recent years, Congress has enacted two major acquisition reform statutes--the Federal Acquisition Streamlining Act of 1994 (FASA) and the Clinger-Cohen Act of 1996. These statutes changed the trend in government contracting toward simplifying the government's acquisition process and eliminating many government-unique requirements. The goal of these changes in the government's purchasing processes has been to modify or eliminate unnecessary and burdensome legislative mandates, increase the use of commercial items to meet government needs, and give more discretion to contracting agencies in making their procurement decisions. Since the early 1900's, the Federal government has required certain unique accounting standards or criteria designed to protect it from the risk of overpaying for goods and services by directing the manner or degree to which Federal contractors apportion costs to their contracts with the government. The Cost Accounting Standards (CAS standards) are a set of 19 accounting principles developed and maintained by the Cost Accounting Standards (CAS) Board, a body created by Congress to develop uniform and consistent standards. The CAS standards require government contractors to account for their costs on a consistent basis and prohibit any shifting of overhead or other costs from commercial contacts to government contracts, or from fixed-priced contracts to cost- type contracts. FASA and the Clinger-Cohen Act took significant steps to exempt commercial items from the applicability of the CAS standards. Nonetheless, the Department of Defense and others in the public and private sectors continue to identify the CAS standards as a continuing barrier to the integration of commercial items into the government marketplace. Advocates of relaxing the CAS standards argue that they require companies to create unique accounting systems to do business with the government in cost-type contracts. They believe that the added cost of developing the required accounting systems has discouraged some commercial companies from doing business with the government and led others to set up separate assembly lines for government products, substantially increasing costs to the government. This provision carefully balances the government's need for greater access to commercial items, particularly those of nontraditional suppliers, with the need for a strong set of CAS standards to protect the taxpayers from overpayments to contractors. The provision would modify the CAS standards to streamline their applicability, while maintaining the applicability of the standards to the vast majority of contract dollars that are currently covered. In particular, the provision would raise the threshold for coverage under the CAS standards from $25 million to $50 million; exempt contractors from coverage if they do not have a contract in excess of $5 million; and exclude coverage based on firm, fixed price contracts awarded on the basis of adequate price competition without the submission of certified cost or pricing data. The provision also would provide for waivers of the CAS standards by Federal agencies in limited circumstances. This would allow contracting agencies to handle this contract administration function, in limited circumstances, as part of their traditional role in administering contracts. The sponsors note that waivers would be available for contracts in excess of $10 million only in ``exceptional circumstances.'' The ``exceptional circumstances'' waiver may be used only when a waiver is necessary to meet the needs of an agency, and i.e., the agency determines that it would not be able to obtain the products or services in the absence of a waiver. 2. task order and delivery order contracts FASA authorized Federal agencies to enter into multiple award task and delivery order contracts for the procurement of goods and services. Multiple award contracts occur when two or more contracts are awarded from one solicitation. Multiple award contracting allows the government to procure products and services more quickly using streamlined acquisition procedures while taking advantage of competition to obtain optimum prices and quality on individual task orders or delivery orders. FASA requires orders under multiple-award contracts to contain a clear description of the services or supplies ordered and--except under specified circumstances--requires that each of the multiple vendors be provided a fair opportunity to be considered for specific orders. Concerns have been raised that the simplicity of these multiple-award contracts has brought with it the potential for abuse. The General Accounting Office and the Department of Defense Inspector General have reported that agencies have routinely failed to comply with the basic requirements of FASA, including the requirement to provide vendors a fair opportunity to be considered for specific orders. While performance guidance was established by the Office of Federal Procurement Policy (OFPP) in 1996, the regulations implementing FASA do not establish any specific procedures for awarding orders or any specific safeguards to ensure compliance with competition requirements. This provision would require that the Federal Acquisition Regulation provide the necessary guidance on the appropriate use of task and delivery order contracts as authorized by FASA. It also would require that the Administrator of OFPP work with the Administrator of the General Services Administration (GSA) to review the ordering procedures and practices of the Federal Supply Schedule program administered by GSA. This review should include an assessment as to whether the GSA program should be modified to provide consistency with the regulations for task order and delivery order contracts required by this provision. 3. clarification to the definition of commercial items FASA included a broad new definition of ``commercial items,'' designed to give the Federal government greater access to previously unavailable advanced commercial products and technologies. However, the FASA definition of commercial items included only a limited definition of commercial services. Under FASA, commercial items include services purchased to support a commercial product as a commercial service. This language has been interpreted by some to mean that these ancillary services must be procured at the same time or from [[Page S6165]] the same vendor as the commercial item the service is intended to support. This provision would clarify that services ancillary to a commercial item, such as installation, maintenance, repair, training, and other support services, would be considered a commercial service regardless of whether the service is provided by the same vendor or at the same time as the item if the service is provided contemporaneously to the general public under similar terms and conditions. 4. two-year extension of commercial items test program Section 4202 of the Clinger-Cohen Act of 1996 provided the authority for Federal agencies to use special simplified procedures to purchases for amounts greater than $100,000 but not greater than $5 million if the agency reasonably expects that the offers will include only commercial items. The purpose of this test program was to give agencies additional procedural discretion and flexibility so that purchases of commercial items in this dollar range could be solicited, offered, evaluated, and awarded in a simplified manner that maximizes efficiency and economy and minimizes paperwork burden and administration costs for both government and industry. Authority to use this test program expires on January 1, 2000. The Administration has reported that, due to delays in implementing the test program, the data available from the test program is insufficient to assess the effectiveness of the test, and additional data is required to determine whether this authority should be made permanent. This provision would extend the authority to January 1, 2002. The provision also requires the Comptroller General to report to Congress on the impact of the provision. The sponsors note that the shortened notice period authorized under the test program may have a different impact on competition, depending on the complexity of the commercial items to be procured. For this reason, the sponsors expect the Comptroller General's report to address the extent to which the test authority has been used, the types of commercial items procured under the test program, and the impact of the test program on competition for agency contracts and on the small business share of such contracts. The Comptroller General's report also should assess the extent to which the test program has streamlined the procurement process. 5. extension of interim reporting rule on contracts with small business Section 31(f) of the OFPP Act, as amended by FASA, requires detailed reporting of contract activity between $25,000 and $100,000 in the Federal Procurement Data System (FPDS). This requirement gives the government the ability to track the impact of acquisition reform on the share of contracts in this dollar range that are awarded to small businesses, small disadvantaged businesses and woman-owned small businesses. It also enables the government to track progress and compliance on a variety of Federal procurement programs, such as Small Business Competitiveness Demonstration Program, the Small Disadvantaged Business Reform Program, the HUDBZone Small Business Program, and the IRS Offset Program. Under FASA, this provision is scheduled to expire on October 1, 1999, so that after that date agencies would only be required to report summary data for procurements below $100,000. Because the implementation of acquisition reform measures is ongoing and information on the impact of those measures on small business is important both to Congress and the executive branch, this provision would extend the current reporting requirement until October 1, 2004, as requested by the Administration. amendment no. 429 (Purpose: To authorize an additional $21,700,000 for research, development, test, and evaluation for the Army for the Force XXI Battle Command, Brigade and Below (FBCB2) (PE0203759A), and to offset the additional amount by decreasing by $21,700,000 the authorization for other procurement for the Army for the Maneuver Control System (MCS) On page 17, line 1, strike ``$3,669,070,000'' and insert ``$3,647,370,000''. On page 29, line 10, strike, $4,671,194,000'' and insert ``$4,692,894,000''. ____ amendment no. 430 (Purpose: To improve financial management and accountability in the Department of Defense) On page 321, line 18, strike out ``and''. On page 321, after line 24, insert the following: (iv) obligations and expenditures are recorded contemporaneously with each transaction; (v) organizational and functional duties are performed separately at each step in the cycles of transactions (including, in the case of a contract, the specification of requirements, the formation of the contract, the certification of contract performance, receiving and warehousing, accounting, and disbursing); and (vi) use of progress payment allocation systems results in posting of payments to appropriation accounts consistent with section 1301 of title 31, United States Code. On page 322, line 4, insert before the semicolon the following: ``that, at a minimum, uses double-entry bookkeeping and complies with the United States Government Standard General Ledger at the transaction level as required under section 803(a) of the Federal Financial Management Improvement Act of 1996 (31 U.S.C. 3512 note)''. On page 322, between lines 17 and 18, insert the following: (5) An internal controls checklist which, consistent with the authority in sections 3511 and 3512 of title 31, United States Code, the Comptroller General shall prescribe as the standards for use throughout the Department of Defense, together with a statement of the Department of Defense policy on use of the checklist throughout the department. On page 323, line 14, before the period insert ``or the certified date of receipt of the items''. On page 324, between the matter following line 20 and the matter on line 21, insert the following: (c) Study and Report on Department of Defense Electronic Fund Transfers.--(1) Subject to paragraph (3), the Secretary of Defense shall conduct a feasibility study to determine-- (A) whether all electronic payments issued by the Department of Defense should be routed through the Regional Finance Centers of the Department of the Treasury for verification and reconciliation; (B) whether all electronic payments made by the Department of Defense should be subjected to the same level of reconciliation as United States Treasury checks, including matching each payment issued with each corresponding deposit at financial institutions; (C) whether the appropriate computer security controls are in place in order to ensure the integrity of electronic payments; (D) the estimated costs of implementing the processes and controls described in subparagraphs (A), (B), (C); and (E) the period that would be required to implement the processes and controls. (2) Not later than March 1, 2000, the Secretary of Defense shall submit a report to Congress containing the results of the study required by paragraph (1). (3) In this subsection, the term ``electronic payment'' means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, which is initiated through an electronic terminal, telephonic instrument, or computer or magnetic tape so as to order, instruct, or authorize a debit or credit to a financial account. On page 329, after line 25, insert the following: SEC. 1009. RESPONSIBILITIES AND ACCOUNTABILITY FOR FINANCIAL MANAGEMENT. (a) Under Secretary of Defense (Comptroller).--(1) Section 135 of title 10, United States Code, is amended-- (A) by redesignating subsections (d) and (e) as subsections (e) and (f), respectively; and (B) by inserting after subsection (c) the following: ``(d)(1) The Under Secretary is responsible for ensuring that the financial statements of the Department of Defense are in a condition to receive an unqualified audit opinion and that such an opinion is obtained for the statements. ``(2) If the Under Secretary delegates the authority to perform a duty, including any duty relating to disbursement or accounting, to another officer, employee, or entity of the United States, the Under Secretary continues after the delegation to be responsible and accountable for the activity, operation, or performance of a system covered by the delegated authority.''. (2) Subsection (c)(1) of such section is amended by inserting ``and to ensure accountability to the citizens of the United States, Congress, the President, and managers within the Department of Defense'' before the semicolon at the end. (b) Management of Credit Cards.--(1) The Under Secretary of Defense (Comptroller) shall prescribe regulations governing the use and control of all credit cards and convenience checks that are issued to Department of Defense personnel for official use. The regulations shall be consistent with regulations that apply government-wide regarding use of credit cards by Federal Government personnel for official purposes. (2) The regulations shall include safeguards and internal controls to ensure the following: (A) There is a record of all credited card holders that is annotated with the limitations on amounts that are applicable to the use of each card by each credit card holder. (B) The credit card holders and authorizing officials are responsible for reconciling the charges appearing on each statement of account with receipts and other supporting documentation and for forwarding reconciled statements to the designated disbursing office in a timely manner. (C) Disputes and discrepancies are resolved in the manner prescribed in the applicable Governmentwide credit card contrac

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NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2000
(Senate - May 27, 1999)

Text of this article available as: TXT PDF [Pages S6160-S6274] [[Page S6160]] NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2000 The PRESIDING OFFICER. Under the previous order, the Senate will now resume consideration of S. 1059, which the clerk will report. The legislative assistant read as follows: A bill (S. 1059) to authorize appropriations for fiscal year 2000 military activities of the Department of Defense, for military construction, and for defense activities of the Department of Energy, to prescribe personnel strengths for such fiscal year for the Armed Forces, and for other purposes. Pending: Lott amendment No. 394, to improve the monitoring of the export of advanced satellite technology, to require annual reports with respect to Taiwan, and to improve the provisions relating to safeguards, security, and counterintelligence at Department of Energy facilities. Allard/Harkin amendment No. 396, to express the sense of Congress that no major change to the governance structure of the Civil Air Patrol should be mandated by Congress until a review of potential improvements in the management and oversight of Civil Air Patrol operations is conducted. Amendments Nos. 411 Through 441, En Bloc Mr. WARNER. Mr. President, it is the intention of the manager to try to do the cleared amendments. I want to make certain that the distinguished ranking member is in concurrence. That is indicated, so I think I will proceed. On behalf of myself and the ranking member, the Senator from Michigan, I send 31 amendments to the desk. I would say before the clerk reports that this package of amendments is for Senators on both sides of the aisle and has been cleared by the minority. I send the amendments to the desk at this time and ask that they be considered en bloc. The PRESIDING OFFICER. Without objection, it is so ordered. The clerk will report. The legislative clerk read as follows: The Senator from Virginia [Mr. Warner], for himself and Mr. Levin, and on behalf of other Senators, proposes amendments en bloc numbered 411 through 441. Mr. WARNER. Mr. President, I ask unanimous consent that the amendments be agreed to en bloc and that the motion to reconsider be laid upon the table. I further ask that any statements relating to these amendments be printed in the Record. The PRESIDING OFFICER. Without objection, it is so ordered. The amendments (Nos. 411 through 441) agreed to en bloc are as follows: amendment no. 411 (Purpose: To authorize the Secretary of Defense to incorporate into the Pentagon Renovation Program the construction of certain security enhancements) On page 428, after line 19, insert the following new section: SEC. . ENHANCEMENT OF PENTAGON RENOVATION ACTIVITIES. The Secretary of Defense in conjunction with the Pentagon Renovation Program is authorized to design and construct secure secretarial office and support facilities and security-related changes to the METRO entrance at the Pentagon Reservation. The Secretary shall, not later than January 15, 2000, submit to the congressional defense committees the estimated cost for the planning, design, construction, and installation of equipment for these enhancements, together with the revised estimate for the total cost of the renovation of the Pentagon. ____ amendment no. 412 (Purpose: To authorize the appropriation for the increased pay and pay reform for members of the uniformed services contained in the 1999 Emergency Supplemental Appropriations Act) On page 98, line 15, strike ``$71,693,093,000.'' and insert in lieu thereof the following: ``$71,693,093,000, and in addition funds in the total amount of $1,838,426,000 are authorized to be appropriated as emergency appropriations to the Department of Defense for fiscal year 2000 for military personnel, as appropriated in section 2012 of the 1999 Emergency Supplemental Appropriations Act (Public Law 106- 31).'' ____ amendment no. 413 (Purpose: To authorize dental benefits for retirees that are comparable to those provided for dependents of members of the uniformed services) In title VII, at the end of subtitle B, add the following: SEC. 717. ENHANCEMENT OF DENTAL BENEFITS FOR RETIREES. Subsection (d) of section 1076c of title 10, United States Code, is amended to read as follows: `'(d) Benefits Available Under the Plan.--The dental insurance plan established under subsection (a) shall provide benefits for dental care and treatment which may be comparable to the benefits authorized under section 1076a of this title for plans established under that section and shall include diagnostic services, preventative services, endodontics and other basic restorative services, surgical services, and emergency services.''. ____ amendment no. 413 Mr. ALLARD. Mr. President, this Amendment will give the Department of Defense the ability to significantly strengthen the dental benefits for over 270,000 of our nation's military retirees and their family members. The TRICARE retiree dental program began on February 1, 1998 and is an affordable plan paid for exclusively by retiree premiums. According to the Department, the enrollment in the program has exceeded all projections. While current law covers the most basic dental procedures, the Department of Defense does not have the flexibility to expand their benefits without a legislative change. Our nation's military retirees have expressed a desire to both the Department and the contractors for more services, and are willing to pay a reasonable price for these extra benefits. Currently, the retiree dental program is limited to an annual cleaning, filings, root canals, oral surgeries and the like. This amendment would change the law to allow, but not mandate, the Department the opportunity to offer an expanded list of benefits such as dentures, bridges and crowns, which are needs characteristic of our nation's retired military members. If the Department decided to offer these service, they would continue to be paid for by member premiums. In conclusion, I would ask the support of all my colleagues for this important amendment to allow the Department to give the needed dental services to our valued military retires. Thank you for the time. amendment no. 414 (Purpose: To provide $6,000,000 (in PE 604604F) for the Air Force for the 3-D advanced track acquisition and imaging system, and to provide an offset) On page 29, line 12, increase the amount by $6,000,000. On page 29, line 14, decrease the amount by $6,000,000. ____ 3-d advanced track acquisition and imaging system Mr. MACK. Mr. President, I rise today in support of additional funds to be made available for Air Force Research, Development, Test and Evaluation in the Fiscal Year 2000 Department of Defense Authorization measure to be used to complete development of a state-of-the-art 3 dimensional optical imaging and tracking instrumentation data system. The 3 Data System is a laser radar system that provides high fidelity time, space, positioning information (TSPI) on test articles during flight. The instrumentation can be applied to air, ground, and sea targets. Additionally, it will provide the potential capability for over-the-horizon tracking from an airborne platform or pedestal mounted ground platform. It includes a multi-object tracking capability that will allow simultaneous tracking of up to 20 targets throughout their profile. The system will enable testing of advanced smart weapon systems; force-on-force exercises where multiple aircraft and ground vehicle tracking is involved; over water scoring of large footprint autonomous guided and unguided munitions; and enable an improvement to existing aging radar presently in service. It is mobile and can support testing at other major ranges and locations in support of other Service's requirements. The Air Force has identified the 3-Data System as having high military value as it will enable the effective evaluation of the performance of advanced weapon systems to be utilized in future conflicts. The Air Force has informed me that precision engagement is one of the emerging operational concepts in Joint Vision 2010. The 3- Data system would provide a capability to effectively evaluate the performance of advanced precision guided munitions and smart weapons prior to their use in a wartime environment. It would also directly support ongoing activities abroad through Quick Reaction Tasking that may require a multiple object tracking device to evaluate engagement profiles. This requirement is documented through 46th Test Wing strategic planning initiatives, developmental program test plans, and munitions strategic planning roadmaps. [[Page S6161]] The Air Force is presently attempting to meet this requirement through existing radar systems and optical tracking systems which cannot track multiple objects to the fidelity levels required and which require extensive post-mission data reduction times. This system will provide the capability to effectively track multiple targets simultaneously. Mr. President, I thank the Committee for their willingness to support this amendment. The 3-Data System will play a important role in enabling the Air Force to evaluate the capabilities and limitations of multiple smart weapons and their delivery systems during their develpoment. amendment no. 415 (Purpose: To amend a per purchase dollar limitation of funding assistance for procurement of equipment for the National Guard for drug interdiction and counter-drug activities so as to apply the limitation to each item of equipment procured) In title III, at the end of subtitle D, add the following: SEC. 349. MODIFICATION OF LIMITATION ON FUNDING ASSISTANCE FOR PROCUREMENT OF EQUIPMENT FOR THE NATIONAL GUARD FOR DRUG INTERDICTION AND COUNTER--DRUG ACTIVITIES. Section 112(a)(3) of title 32, United States Code, is amended by striking ``per purchase order'' in the second sentence and inserting ``per item''. ____ AMENDMENT NO. 416 (Purpose: To require the Secretary of the Army to review the incidence of violations of State and local motor vehicle laws and to submit a report on the review to Congress) On page 357, between lines 11 and 12, insert the following: SEC. 1032. REVIEW OF INCIDENCE OF STATE MOTOR VEHICLE VIOLATIONS BY ARMY PERSONNEL. (a) Review and Report Required.--The Secretary of the Army shall review the incidence of violations of State and local motor vehicle laws applicable to the operation and parking of Army motor vehicles by Army personnel during fiscal year 1999, and, not later than March 31, 2000, submit a report on the results of the review to Congress. (b) Content of Report.--The report under subsection (a) shall include the following: (1) A quantitative description of the extent of the violations described in subsection (a). (2) An estimate of the total amount of the fines that are associated with citations issued for the violations. (3) Any recommendations that the Inspector General considers appropriate to curtail the incidence of the violations. ____ AMENDMENT NO. 417 (Purpose: To substitute for section 654 a repeal of the reduction in military retired pay for civilian employees of the Federal Government) Strike section 654, and insert the following: SEC. 654. REPEAL OF REDUCTION IN RETIRED PAY FOR CIVILIAN EMPLOYEES. (a) Repeal.--(1) Section 5532 of title 5, United States Code, is repealed. (2) The chapter analysis at the beginning of chapter 55 of such title is amended by striking the item relating to section 5532. (b) Effective Date.--The amendments made by subsection (a) shall take effect on the first day of the first month that begins after the date of the enactment of this Act. repeal dual compensation limitations Mr. CRAPO. Mr. President, my amendment is co-sponsored by the Senate Majority Leader, Senator Lott. On February 23, 1999, the Senate voted 87 to 11 in favor of this same amendment during consideration of S. 4. My amendment will repeal the current statute that reduces retirement pay for regular officers of a uniformed service who chose to work for the federal government. The uniformed services include the Army, Navy, Air Force, Marine Corps, Coast Guard, Public Health Service and the National Oceanographic and Atmospheric Agency. If a retired officer from the uniform services comes to work for the Senate, his or her retirement pay is reduced by about 50 percent, after the first $8,000, to offset for payments from the Senate. The retired officer can request a waiver but the executive, legislative and judicial branches of government handle the waiver process differently on a case by case basis. The current dual compensation limitation is also discriminatory in that regular officers are covered but reservists or enlisted personnel are not covered by the limitation. The Congressional Budget Office has recently looked at the current dual compensation limitation and it is estimated that around 6,000 military retirees lose an average of $800 per month because of this prohibition. I have been unable to find one good reason to explain why we should want our law to discourage retired members of the uniformed services from seeking full time employment with the Federal Government. Our laws should not reduce a benefit military retirees have earned because they chose to work for the federal government. My amendment would fix this inequity, it would give retired officers equal pay for equal work from the federal government and it would give the federal government access to a workforce that currently avoids employment with the Federal Government. I am pleased the managers of the bill have agreed to accept my amendment and I thank them for their support for this important amendment. AMENDMENT NO. 418 (Purpose: To establish as a policy of the United States that the United States will seek to establish a multinational economic embargo against any foreign country with which the United States is engaged in armed conflict, and for other purposes) In title X, at the end of subtitle D, add the following: SEC. 1061. MULTINATIONAL ECONOMIC EMBARGOES AGAINST GOVERNMENTS IN ARMED CONFLICT WITH THE UNITED STATES. (a) Policy on the Establishment of Embargoes.-- (1) In general.--It is the policy of the United States, that upon the use of the Armed Forces of the United States to engage in hostilities against any foreign country, the President shall as appropriate-- (A) seek the establishment of a multinational economic embargo against such country; and (B) seek the seizure of its foreign financial assets. (b) Reports.--Not later than 20 days, or earlier than 14 days, after the first day of the engagement of the United States in any armed conflict described in subsection (a), the President shall, if the armed conflict continues, submit a report to Congress setting forth-- (1) the specific steps the United States has taken and will continue to take to institute the embargo and financial asset seizures pursuant to subsection (a); and (2) any foreign sources of trade of revenue that directly or indirectly support the ability of the adversarial government to sustain a military conflict against the Armed Forces of the United States. ____ AMENDMENT NO. 419 (Purpose: To require a report on the Air Force distributed mission training) On page 54, after line 24, insert the following: Subtitle E--Other Matters SEC. 251. REPORT ON AIR FORCE DISTRIBUTED MISSION TRAINING. (a) Requirement.--The Secretary of the Air Force shall submit to Congress, not later than January 31, 2000, a report on the Air Force Distributed Mission Training program. (b) Content of Report.--The report shall include a discussion of the following: (1) The progress that the Air Force has made to demonstrate and prove the Air Force Distributed Mission Training concept of linking geographically separated, high-fidelity simulators to provide a mission rehearsal capability for Air Force units, and any units of any of the other Armed Forces as may be necessary, to train together from their home stations. (2) The actions that have been taken or are planned to be taken within the Department of the Air Force to ensure that-- (A) an independent study of all requirements, technologies, and acquisition strategies essential to the formulation of a sound Distributed Mission Training program is under way; and (B) all Air Force laboratories and other Air Force facilities necessary to the research, development, testing, and evaluation of the Distributed Mission Training program have been assessed regarding the availability of the necessary resources to demonstrate and prove the Air Force Distributed Mission Training concept. ____ AMENDMENT NO. 420 (Purpose: To add test and evaluation laboratories to the pilot program for revitalizing Department of Defense laboratories; and to add an authority for directors of laboratories under the pilot program) On page 48, line 5, after ``laboratory'', insert the following: ``, and the director of one test and evaluation laboratory,''. On page 48, between lines 11 and 12, insert the following: (B) To develop or expand innovative methods of operation that provide more defense research for each dollar of cost, including to carry out such initiatives as focusing on the performance of core functions and adopting more business-like practices. On page 48, line 12, strike ``(B)'' and insert ``(C)''. On page 48, beginning on line 14, strike ``subparagraph (A)'' and insert ``subparagraphs (A) and (B)''. [[Page S6162]] ____ AMENDMENT NO. 421 (Purpose: To authorize land conveyances with respect to the Twin Cities Army Ammunition Plant, Minnesota) On page 453, between lines 10 and 11, insert the following: SEC. 2832. LAND CONVEYANCES, TWIN CITIES ARMY AMMUNITION PLANT, MINNESOTA. (a) Conveyance to City Authorized.--The Secretary of the Army may convey to the City of Arden Hills, Minnesota (in this section referred to as the ``City''), all right, title, and interest of the United States in and to a parcel of real property, including improvements thereon, consisting of approximately 4 acres at the Twin Cities Army Ammunition Plant, for the purpose of permitting the City to construct a city hall complex on the parcel. (b) Conveyance to County Authorized.--The Secretary of the Army may convey to Ramsey County, Minnesota (in this section referred to as the ``County''), all right, title, and interest of the United States in and to a parcel of real property, including improvements thereon, consisting of approximately 35 acres at the Twin Cities Army Ammunition Plant, for the purpose of permitting the County to construct a maintenance facility on the parcel. (c) Consideration.--As a consideration for the conveyances under this section, the City shall make the city hall complex available for use by the Minnesota National Guard for public meetings, and the County shall make the maintenance facility available for use by the Minnesota National Guard, as detailed in agreements entered into between the City, County, and the Commanding General of the Minnesota National Guard. Use of the city hall complex and maintenance facility by the Minnesota National Guard shall be without cost to the Minnesota National Guard. (d) Description of Property.--The exact acreage and legal description of the real property to be conveyed under this section shall be determined by surveys satisfactory to the Secretary. The cost of the survey shall be borne by the recipient of the real property. (e) Additional Terms and Conditions.--The Secretary may require such additional terms and conditions in connection with the conveyances under this section as the Secretary considers appropriate to protect the interests of the United States. ____ AMENDMENT NO. 422 (Purpose: To require a land conveyance, Naval Training Center, Orlando, Florida) On page 459, between lines 17 and 18, insert the following: SEC. 2844. LAND CONVEYANCE, NAVAL TRAINING CENTER, ORLANDO, FLORIDA. (a) Conveyance Required.--The Secretary of the Navy shall convey all right, title, and interest of the United States in and to the land comprising the main base portion of the Naval Training Center and the McCoy Annex Areas, Orlando, Florida, to the City of Orlando, Florida, in accordance with the terms and conditions set forth in the Memorandum of Agreement by and between the United States of America and the City of Orlando for the Economic Development Conveyance of Property on the Main Base and McCoy Annex Areas of the Naval Training Center, Orlando, executed by the Parties on December 9, 1997, as amended. ____ amendment no. 423 (Purpose: To modify the conditions for issuing obsolete or condemned rifles of the Army and blank ammunition without charge) In title X, at the end of subtitle D, add the following: SEC. 1061. CONDITIONS FOR LENDING OBSOLETE OR CONDEMNED RIFLES FOR FUNERAL CEREMONIES. Section 4683(a)(2) of title 10, United States Code, is amended to read as follows: ``(2) issue and deliver those rifles, together with blank ammunition, to those units without charge if the rifles and ammunition are to be used for ceremonies and funerals in honor of veterans at national or other cemeteries.''. ____ amendment no. 424 (Purpose: To authorize use of Navy procurement funds for advance procurement for the Arleigh Burke class destroyer program) On page 25, between lines 17 and 18, insert the following: (c) Other Funds for Advance Procurement.--Notwithstanding any other provision of this Act, of the funds authorized to be appropriated under section 102(a) for procurement programs, projects, and activities of the Navy, up to $190,000,000 may be made available, as the Secretary of the Navy may direct, for advance procurement for the Arleigh Burke class destroyer program. Authority to make transfers under this subsection is in addition to the transfer authority provided in section 1001. ____ amendment no. 425 (Purpose: To set aside funds for the procurementof the MLRS rocket inventory and reuse model) In title I, at the end of subtitle B, add the following: SEC. 114. MULTIPLE LAUNCH ROCKET SYSTEM. Of the funds authorized to be appropriated under section 101(2), $500,000 may be made available to complete the development of reuse and demilitarization tools and technologies for use in the disposition of Army MLRS inventory. ____ amendment no. 426 (Purpose: To expand the entities eligible to participate in alternative authority for acquisition and improvement of military housing) On page 440, between lines 6 and 7, insert the following: SEC. 2807. EXPANSION OF ENTITIES ELIGIBLE TO PARTICIPATE IN ALTERNATIVE AUTHORITY FOR ACQUISITION AND IMPROVEMENT OF MILITARY HOUSING. (a) Definition of Eligible Entity.--Section 2871 of title 10, United States Code, is amended-- (1) by redesignating paragraphs (5) through (7) as paragraphs (6) through (8) respectively; and (2) by inserting after paragraph (4) the following new paragraph (5): ``(5) The term `eligible entity' means any individual, corporation, firm, partnership, company, State or local government, or housing authority of a State or local government.''. (b) General Authority.--Section 2872 of such title is amended by striking ``private persons'' and inserting ``eligible entities''. (c) Direct Loans and Loan Guarantees.--Section 2873 of such title is amended-- (1) in subsection (a)(1)-- (A) by striking ``persons in private sector'' and inserting ``an eligible entity''; and (B) by striking ``such persons'' and inserting ``the eligible entity''; and (2) in subsection (b)(1)-- (A) by striking ``any person in the private sector'' and inserting ``an eligible entity''; and (B) by striking ``the person'' and inserting ``the eligible entity''. (d) Investments.--Section 2875 of such title is amended-- (1) in subsection (a), by striking ``nongovernmental entities'' and inserting ``an eligible entity''; (2) in subsection (c)-- (A) by striking ``a nongovernmental entity'' both places it appears and inserting ``an eligible entity''; and (B) by striking ``the entity'' each place it appears and inserting ``the eligible entity''; (3) in subsection (d), by striking ``nongovernmental'' and inserting ``eligible''; and (4) in subsection (e), by striking ``a nongovernmental entity'' and inserting ``an eligible entity''. (e) Rental Guarantees.--Section 2876 of such title is amended by striking ``private persons'' and inserting ``eligible entities''. (f) Differential Lease Payments.--Section 2877 of such title is amended by striking ``private''. (g) Conveyance or Lease of Existing Property and Facilities.--Section 2878(a) of such title is amended by striking ``private persons'' and inserting ``eligible entities''. (h) Clerical Amendments.--(1) The heading of section 2875 of such title is amended to read as follows: ``Sec. 2875. Investments''. (2) The table of sections at the beginning of subchapter IV of chapter 169 of such title is amended by striking the item relating to section 2875 and inserting the following new item: ``2875. Investments.''. ____ amendment no. 427 (Purpose: To authorize medical and dental care for certain members of the Armed Forces incurring injuries on inactive-duty training) On page 272, between lines 8 and 9, insert the following: SEC. 717. MEDICAL AND DENTAL CARE FOR CERTAIN MEMBERS INCURRING INJURIES ON INACTIVE-DUTY TRAINING. (a) Order to Active Duty Authorized.--(1) Chapter 1209 of title 10, United States Code, is amended by adding at the end the following: ``Sec. 12322. Active duty for health care ``A member of a uniformed service described in paragraph (1)(B) or (2)(B) of section 1074a(a) of this title may be ordered to active duty, and a member of a uniformed service described in paragraph (1)(A) or (2)(A) of such section may be continued on active duty, for a period of more than 30 days while the member is being treated for (or recovering from) an injury, illness, or disease incurred or aggravated in the line of duty as described in such paragraph.''. (2) The table of sections at the beginning of such chapter is amended by adding at the end the following: ``12322. Active duty for health care.''. (b) Medical and Dental Care for Members.--Subsection (e) of section 1074a of such title is amended to read as follows: ``(e)(1) A member of a uniformed service on active duty for health care or recuperation reasons, as described in paragraph (2), is entitled to medical and dental care on the same basis and to the same extent as members covered by section 1074(a) of this title while the member remains on active duty. ``(2) Paragraph (1) applies to a member described in paragraph (1) or (2) of subsection (a) who, while being treated for (or recovering from) an injury, illness, or disease incurred or aggravated in the line of duty, is continued on active duty pursuant to a modification or extension of orders, or is ordered to active duty, so as to result in active duty for a period of more than 30 days.''. (c) Medical and Dental Care for Dependents.--Subparagraph (D) of section 1076(a)(2) of such title is amended to read as follows: [[Page S6163]] ``(D) A member on active duty who is entitled to benefits under subsection (e) of section 1074a of this title by reason of paragraph (1), (2), or (3) of subsection (a) of such section.''. Mr. CLELAND. Mr. President, I am pleased to offer this amendment to S. 1059, The National Defense Authorization Act for Fiscal Year 2000, which seeks to protect the men and women of our reserve military components. The 1998 National Defense Authorization Act provided health care coverage for Reservists and Guardsmen incurring injury, illness or disease while performing duty in an active-duty status. However, it overlooked those servicemen and women performing duty in ``inactive duty'' status, which is the status they are in while performing their monthly ``drill weekends.'' This problem was dramatically illustrated recently when an Air Force Reserve C-130 crashed in Honduras, killing three crewmembers. One of the survivors was unable to work for over a year due to the serious nature of his injuries. While he was reimbursed for lost earnings, this serviceman was only eligible for military medical care related to injuries sustained in the crash. His family lost their civilian health insurance and was ineligible to receive medical from the military. Had he been on military orders of more than 30 days, both he and his family would have been eligible for full military medical benefits for the duration of his recovery. My dear colleagues, this is unacceptable. We must plug this loophole so that these tragic circumstances are not repeated. Why is it so important that we look out for our Guardsmen and Reservists? It is because our military services have been reduced by one-third, while worldwide commitments have increased fourfold, leading to a dramatic increase in the dependence on our reserve components to meet our worldwide commitments. Like their active duty counterparts, they are dealing with the demands of a high operations tempo; yet they must meet the additional challenge of balancing their military duty with their civilian employment. Members of the Guard and Reserve have been participating at record levels. Nearly 270,000 Reservists and Guardsmen were mobilized during Operations Desert Shield and Desert Storm. Over 17,000 Reservists and Guardsmen have answered the Nation's call to bring peace to Bosnia. And, recently, over 4,000 Reservists and Guardsmen have been called up to support current operations in Kosovo. The days of the ``weekend warrior'' are long gone. In addition to significant contributions to military operations, members of the reserve components have delivered millions of pounds of humanitarian cargo to all corners of the globe. Closer to home, they have responded to numerous state emergencies, such as the devastating floods that struck in America's heartland last year. The men and women of the Reserve Components are on duty all over the world, every day of the year. Considering everything our citizen soldiers, sailors, airmen and marines have done for us, we must not turn our backs on them and their families in their times of need. Please join me in supporting this amendment providing for those who provide for us. amendment no. 428 (Purpose: To refine and extend Federal acquisition streamlining) At the end of title VIII, add the following: SEC. 807. STREAMLINED APPLICABILITY OF COST ACCOUNTING STANDARDS. (a) Applicability.--Paragraph (2) of section 26(f) of the Office of Federal Procurement Policy Act (41 U.S.C. 422(f)(2)) is amended-- (1) by redesignating subparagraph (C) as subparagraph (D); (2) by striking subparagraph (B) and inserting the following: ``(B) The cost accounting standards shall not apply to a contractor or subcontractor for a fiscal year (or other one- year period used for cost accounting by the contractor or subcontractor) if the total value of all of the contracts and subcontracts covered by the cost accounting standards that were entered into by the contractor or subcontractor, respectively, in the previous or current fiscal year (or other one-year cost accounting period) was less than $50,000,000. ``(C) Subparagraph (A) does not apply to the following contracts or subcontracts for the purpose of determining whether the contractor or subcontractor is subject to the cost accounting standards: ``(i) Contracts or subcontracts for the acquisition of commercial items. ``(ii) Contracts or subcontracts where the price negotiated is based on prices set by law or regulation. ``(iii) Firm, fixed-price contracts or subcontracts awarded on the basis of adequate price competition without submission of certified cost or pricing data. ``(iv) Contracts or subcontracts with a value that is less than $5,000,000.''. (b) Waiver.--Such section is further amended by adding at the end the following: ``(5)(A) The head of an executive agency may waive the applicability of cost accounting standards for a contract or subcontract with a value less than $10,000,000 if that official determines in writing that-- ``(i) the contractor or subcontractor is primarily engaged in the sale of commercial items; and ``(ii) the contractor or subcontractor would not otherwise be subject to the cost accounting standards. ``(B) The head of an executive agency may also waive the applicability of cost accounting standards for a contract or subcontract under extraordinary circumstances when necessary to meet the needs of the agency. A determination to waive the applicability of cost accounting standards under this subparagraph shall be set forth in writing and shall include a statement of the circumstances justifying the waiver. ``(C) The head of an executive agency may not delegate the authority under subparagraph (A) or (B) to any official in the executive agency below the senior policymaking level in the executive agency. ``(D) The Federal Acquisition Regulation shall include the following: ``(i) Criteria for selecting an official to be delegated authority to grant waivers under subparagraph (A) or (B). ``(ii) The specific circumstances under which such a waiver may be granted. ``(E) The head of each executive agency shall report the waivers granted under subparagraphs (A) and (B) for that agency to the Board on an annual basis.''. (c) Construction Regarding Certain Not-For-Profit Entities.--The amendments made by this section shall not be construed as modifying or superseding, nor as intended to impair or restrict, the applicability of the cost accounting standards to-- (1) any educational institution or federally funded research and development center that is associated with an educational institution in accordance with Office of Management and Budget Circular A-21, as in effect on January 1, 1999; or (2) any contract with a nonprofit entity that provides research and development and related products or services to the Department of Defense. SEC. 808. GUIDANCE ON USE OF TASK ORDER AND DELIVERY ORDER CONTRACTS. (a) Guidance in the Federal Acquisition Regulation.--Not later than 180 days after the date of the enactment of this Act, the Federal Acquisition Regulation issued in accordance with sections 6 and 25 of the Office of Federal Procurement Policy Act shall be revised to provide guidance to agencies on the appropriate use of task order and delivery order contracts in accordance with sections 2304a through 2304d of title 10, United States Code, and sections 303H through 303K of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 253h through 253k). (b) Content of Guidance.--The regulations issued pursuant to subsection (a) shall, at a minimum, provide the following: (1) Specific guidance on the appropriate use of government- wide and other multiagency contracts entered in accordance with the provisions of law referred to in that subsection. (2) Specific guidance on steps that agencies should take in entering and administering multiple award task order and delivery order contracts to ensure compliance with-- (A) the requirement in section 5122 of the Clinger-Cohen Act (40 U.S.C. 1422) for capital planning and investment control in purchases of information technology products and services; (B) the requirement in section 2304c(b) of title 10, United States Code, and section 303J(b) of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 253j(b)) to ensure that all contractors are afforded a fair opportunity to be considered for the award of task orders and delivery orders; and (C) the requirement in section 2304c(c) of title 10, United States Code, and section 303J(c) of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 253j(c)) for a statement of work in each task order or delivery order issued that clearly specifies all tasks to be performed or property to be delivery under the order. (c) GSA Federal Supply Schedules Program.--The Administrator for Federal Procurement Policy shall consult with the Administrator of General Services to assess the effectiveness of the multiple awards schedule program of the General Services Administration referred to in section 309(b)(3) of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 259(b)(3)) that is administered as the Federal Supply Schedules program. The assessment shall include examination of the following: (1) The administration of the program by the Administrator of General Services. (2) The ordering and program practices followed by Federal customer agencies in using schedules established under the program. (d) GAO Report.--Not later than one year after the date on which the regulations required by subsection (a) are published in the [[Page S6164]] Federal Register, the Comptroller General shall submit to Congress an evaluation of executive agency compliance with the regulations, together with any recommendations that the Comptroller General considers appropriate. SEC. 809. CLARIFICATION OF DEFINITION OF COMMERCIAL ITEMS WITH RESPECT TO ASSOCIATED SERVICES. Section 4(12) (E) of the Office of Federal Procurement Policy Act (41 U.S.C. 403(E)) is amended to read as follows: ``(E) Installation services, maintenance services, repair services, training services, and other services if-- ``(i) the services are procured for support of an item referred to in subparagraph (A), (B), (C), or (D), regardless of whether such services are provided by the same source or at the same time as the item; and ``(ii) the source of the services provides similar services contemporaneously to the general public under terms and conditions similar to those offered to the Federal Government.''. SEC. 810. USE OF SPECIAL SIMPLIFIED PROCEDURES FOR PURCHASES OF COMMERCIAL ITEMS IN EXCESS OF THE SIMPLIFIED ACQUISITION THRESHOLD. (a) Extension of Authority.--Section 4202(e) of the Clinger-Cohen Act of 1996 (divisions D and E of Public Law 104-106; 110 Stat. 654; 10 U.S.C. 2304 note) is amended by striking ``three years after the date on which such amendments take effect pursuant to section 4401(b)'' and inserting ``January 1, 2002''. (b) GAO Report.--Not later than March 1, 2001, the Comptroller General shall submit to Congress an evaluation of the test program authorized by section 4204 of the Clinger- Cohen Act of 1996, together with any recommendations that the Comptroller General considers appropriate regarding the test program or the use of special simplified procedures for purchases of commercial items in excess of the simplified acquisition threshold. SEC. 811. EXTENSION OF INTERIM REPORTING RULE FOR CERTAIN PROCUREMENTS LESS THAN $100,000. Section 31(e) of the Office of Federal Procurement Policy Act (41 U.S.C. 427(e)) is amended by striking ``October 1, 1999'' and inserting ``October 1, 2004''. Mr. THOMPSON. Mr. President, I offer this amendment on behalf of myself as chairman of the Governmental Affairs Committee and Senator Lieberman, the Committee's ranking minority member, and Senators Warner and Levin, the chairman and ranking minority member of the Armed Services Committee. Senator Lieberman and I thank the Armed Services chairman and ranking member for their cooperation and assistance in preparing this amendment which will benefit not only the procurement process within the Department of Defense, but other agencies across the Federal government as well. The amendment which we offer today began as a request from the Administration and others to include additional procurement-related reforms to those enacted over the past several years and those already included in S. 1059. Our amendment includes five provisions, as follows: (1) Streamlined Applicability of Cost Accounting Standards; (2) Task Order and Delivery Order Contracts; (3) Clarification to the Definition of Commercial Items; (4) Two-year Extension of Commercial Items Test Program; and (5) Extension of Interim Reporting Rule on Contracts with Small Business. I ask unanimous consent that a joint statement of sponsors explaining the amendment be placed in the Record immediately following my statement. This statement represents the consensus view of the sponsors as to the meaning and intent of the amendment. There being no objection, the statement was ordered to be printed in the Record, as follows: Joint Statement of Sponsors 1. Streamlined Applicability of Cost Accounting Standards In recent years, Congress has enacted two major acquisition reform statutes--the Federal Acquisition Streamlining Act of 1994 (FASA) and the Clinger-Cohen Act of 1996. These statutes changed the trend in government contracting toward simplifying the government's acquisition process and eliminating many government-unique requirements. The goal of these changes in the government's purchasing processes has been to modify or eliminate unnecessary and burdensome legislative mandates, increase the use of commercial items to meet government needs, and give more discretion to contracting agencies in making their procurement decisions. Since the early 1900's, the Federal government has required certain unique accounting standards or criteria designed to protect it from the risk of overpaying for goods and services by directing the manner or degree to which Federal contractors apportion costs to their contracts with the government. The Cost Accounting Standards (CAS standards) are a set of 19 accounting principles developed and maintained by the Cost Accounting Standards (CAS) Board, a body created by Congress to develop uniform and consistent standards. The CAS standards require government contractors to account for their costs on a consistent basis and prohibit any shifting of overhead or other costs from commercial contacts to government contracts, or from fixed-priced contracts to cost- type contracts. FASA and the Clinger-Cohen Act took significant steps to exempt commercial items from the applicability of the CAS standards. Nonetheless, the Department of Defense and others in the public and private sectors continue to identify the CAS standards as a continuing barrier to the integration of commercial items into the government marketplace. Advocates of relaxing the CAS standards argue that they require companies to create unique accounting systems to do business with the government in cost-type contracts. They believe that the added cost of developing the required accounting systems has discouraged some commercial companies from doing business with the government and led others to set up separate assembly lines for government products, substantially increasing costs to the government. This provision carefully balances the government's need for greater access to commercial items, particularly those of nontraditional suppliers, with the need for a strong set of CAS standards to protect the taxpayers from overpayments to contractors. The provision would modify the CAS standards to streamline their applicability, while maintaining the applicability of the standards to the vast majority of contract dollars that are currently covered. In particular, the provision would raise the threshold for coverage under the CAS standards from $25 million to $50 million; exempt contractors from coverage if they do not have a contract in excess of $5 million; and exclude coverage based on firm, fixed price contracts awarded on the basis of adequate price competition without the submission of certified cost or pricing data. The provision also would provide for waivers of the CAS standards by Federal agencies in limited circumstances. This would allow contracting agencies to handle this contract administration function, in limited circumstances, as part of their traditional role in administering contracts. The sponsors note that waivers would be available for contracts in excess of $10 million only in ``exceptional circumstances.'' The ``exceptional circumstances'' waiver may be used only when a waiver is necessary to meet the needs of an agency, and i.e., the agency determines that it would not be able to obtain the products or services in the absence of a waiver. 2. task order and delivery order contracts FASA authorized Federal agencies to enter into multiple award task and delivery order contracts for the procurement of goods and services. Multiple award contracts occur when two or more contracts are awarded from one solicitation. Multiple award contracting allows the government to procure products and services more quickly using streamlined acquisition procedures while taking advantage of competition to obtain optimum prices and quality on individual task orders or delivery orders. FASA requires orders under multiple-award contracts to contain a clear description of the services or supplies ordered and--except under specified circumstances--requires that each of the multiple vendors be provided a fair opportunity to be considered for specific orders. Concerns have been raised that the simplicity of these multiple-award contracts has brought with it the potential for abuse. The General Accounting Office and the Department of Defense Inspector General have reported that agencies have routinely failed to comply with the basic requirements of FASA, including the requirement to provide vendors a fair opportunity to be considered for specific orders. While performance guidance was established by the Office of Federal Procurement Policy (OFPP) in 1996, the regulations implementing FASA do not establish any specific procedures for awarding orders or any specific safeguards to ensure compliance with competition requirements. This provision would require that the Federal Acquisition Regulation provide the necessary guidance on the appropriate use of task and delivery order contracts as authorized by FASA. It also would require that the Administrator of OFPP work with the Administrator of the General Services Administration (GSA) to review the ordering procedures and practices of the Federal Supply Schedule program administered by GSA. This review should include an assessment as to whether the GSA program should be modified to provide consistency with the regulations for task order and delivery order contracts required by this provision. 3. clarification to the definition of commercial items FASA included a broad new definition of ``commercial items,'' designed to give the Federal government greater access to previously unavailable advanced commercial products and technologies. However, the FASA definition of commercial items included only a limited definition of commercial services. Under FASA, commercial items include services purchased to support a commercial product as a commercial service. This language has been interpreted by some to mean that these ancillary services must be procured at the same time or from [[Page S6165]] the same vendor as the commercial item the service is intended to support. This provision would clarify that services ancillary to a commercial item, such as installation, maintenance, repair, training, and other support services, would be considered a commercial service regardless of whether the service is provided by the same vendor or at the same time as the item if the service is provided contemporaneously to the general public under similar terms and conditions. 4. two-year extension of commercial items test program Section 4202 of the Clinger-Cohen Act of 1996 provided the authority for Federal agencies to use special simplified procedures to purchases for amounts greater than $100,000 but not greater than $5 million if the agency reasonably expects that the offers will include only commercial items. The purpose of this test program was to give agencies additional procedural discretion and flexibility so that purchases of commercial items in this dollar range could be solicited, offered, evaluated, and awarded in a simplified manner that maximizes efficiency and economy and minimizes paperwork burden and administration costs for both government and industry. Authority to use this test program expires on January 1, 2000. The Administration has reported that, due to delays in implementing the test program, the data available from the test program is insufficient to assess the effectiveness of the test, and additional data is required to determine whether this authority should be made permanent. This provision would extend the authority to January 1, 2002. The provision also requires the Comptroller General to report to Congress on the impact of the provision. The sponsors note that the shortened notice period authorized under the test program may have a different impact on competition, depending on the complexity of the commercial items to be procured. For this reason, the sponsors expect the Comptroller General's report to address the extent to which the test authority has been used, the types of commercial items procured under the test program, and the impact of the test program on competition for agency contracts and on the small business share of such contracts. The Comptroller General's report also should assess the extent to which the test program has streamlined the procurement process. 5. extension of interim reporting rule on contracts with small business Section 31(f) of the OFPP Act, as amended by FASA, requires detailed reporting of contract activity between $25,000 and $100,000 in the Federal Procurement Data System (FPDS). This requirement gives the government the ability to track the impact of acquisition reform on the share of contracts in this dollar range that are awarded to small businesses, small disadvantaged businesses and woman-owned small businesses. It also enables the government to track progress and compliance on a variety of Federal procurement programs, such as Small Business Competitiveness Demonstration Program, the Small Disadvantaged Business Reform Program, the HUDBZone Small Business Program, and the IRS Offset Program. Under FASA, this provision is scheduled to expire on October 1, 1999, so that after that date agencies would only be required to report summary data for procurements below $100,000. Because the implementation of acquisition reform measures is ongoing and information on the impact of those measures on small business is important both to Congress and the executive branch, this provision would extend the current reporting requirement until October 1, 2004, as requested by the Administration. amendment no. 429 (Purpose: To authorize an additional $21,700,000 for research, development, test, and evaluation for the Army for the Force XXI Battle Command, Brigade and Below (FBCB2) (PE0203759A), and to offset the additional amount by decreasing by $21,700,000 the authorization for other procurement for the Army for the Maneuver Control System (MCS) On page 17, line 1, strike ``$3,669,070,000'' and insert ``$3,647,370,000''. On page 29, line 10, strike, $4,671,194,000'' and insert ``$4,692,894,000''. ____ amendment no. 430 (Purpose: To improve financial management and accountability in the Department of Defense) On page 321, line 18, strike out ``and''. On page 321, after line 24, insert the following: (iv) obligations and expenditures are recorded contemporaneously with each transaction; (v) organizational and functional duties are performed separately at each step in the cycles of transactions (including, in the case of a contract, the specification of requirements, the formation of the contract, the certification of contract performance, receiving and warehousing, accounting, and disbursing); and (vi) use of progress payment allocation systems results in posting of payments to appropriation accounts consistent with section 1301 of title 31, United States Code. On page 322, line 4, insert before the semicolon the following: ``that, at a minimum, uses double-entry bookkeeping and complies with the United States Government Standard General Ledger at the transaction level as required under section 803(a) of the Federal Financial Management Improvement Act of 1996 (31 U.S.C. 3512 note)''. On page 322, between lines 17 and 18, insert the following: (5) An internal controls checklist which, consistent with the authority in sections 3511 and 3512 of title 31, United States Code, the Comptroller General shall prescribe as the standards for use throughout the Department of Defense, together with a statement of the Department of Defense policy on use of the checklist throughout the department. On page 323, line 14, before the period insert ``or the certified date of receipt of the items''. On page 324, between the matter following line 20 and the matter on line 21, insert the following: (c) Study and Report on Department of Defense Electronic Fund Transfers.--(1) Subject to paragraph (3), the Secretary of Defense shall conduct a feasibility study to determine-- (A) whether all electronic payments issued by the Department of Defense should be routed through the Regional Finance Centers of the Department of the Treasury for verification and reconciliation; (B) whether all electronic payments made by the Department of Defense should be subjected to the same level of reconciliation as United States Treasury checks, including matching each payment issued with each corresponding deposit at financial institutions; (C) whether the appropriate computer security controls are in place in order to ensure the integrity of electronic payments; (D) the estimated costs of implementing the processes and controls described in subparagraphs (A), (B), (C); and (E) the period that would be required to implement the processes and controls. (2) Not later than March 1, 2000, the Secretary of Defense shall submit a report to Congress containing the results of the study required by paragraph (1). (3) In this subsection, the term ``electronic payment'' means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, which is initiated through an electronic terminal, telephonic instrument, or computer or magnetic tape so as to order, instruct, or authorize a debit or credit to a financial account. On page 329, after line 25, insert the following: SEC. 1009. RESPONSIBILITIES AND ACCOUNTABILITY FOR FINANCIAL MANAGEMENT. (a) Under Secretary of Defense (Comptroller).--(1) Section 135 of title 10, United States Code, is amended-- (A) by redesignating subsections (d) and (e) as subsections (e) and (f), respectively; and (B) by inserting after subsection (c) the following: ``(d)(1) The Under Secretary is responsible for ensuring that the financial statements of the Department of Defense are in a condition to receive an unqualified audit opinion and that such an opinion is obtained for the statements. ``(2) If the Under Secretary delegates the authority to perform a duty, including any duty relating to disbursement or accounting, to another officer, employee, or entity of the United States, the Under Secretary continues after the delegation to be responsible and accountable for the activity, operation, or performance of a system covered by the delegated authority.''. (2) Subsection (c)(1) of such section is amended by inserting ``and to ensure accountability to the citizens of the United States, Congress, the President, and managers within the Department of Defense'' before the semicolon at the end. (b) Management of Credit Cards.--(1) The Under Secretary of Defense (Comptroller) shall prescribe regulations governing the use and control of all credit cards and convenience checks that are issued to Department of Defense personnel for official use. The regulations shall be consistent with regulations that apply government-wide regarding use of credit cards by Federal Government personnel for official purposes. (2) The regulations shall include safeguards and internal controls to ensure the following: (A) There is a record of all credited card holders that is annotated with the limitations on amounts that are applicable to the use of each card by each credit card holder. (B) The credit card holders and authorizing officials are responsible for reconciling the charges appearing on each statement of account with receipts and other supporting documentation and for forwarding reconciled statements to the designated disbursing office in a timely manner. (C) Disputes and discrepancies are resolved in the manner prescribed in the applicable Governmentwide credit card

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NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2000
(Senate - May 27, 1999)

Text of this article available as: TXT PDF [Pages S6160-S6274] [[Page S6160]] NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2000 The PRESIDING OFFICER. Under the previous order, the Senate will now resume consideration of S. 1059, which the clerk will report. The legislative assistant read as follows: A bill (S. 1059) to authorize appropriations for fiscal year 2000 military activities of the Department of Defense, for military construction, and for defense activities of the Department of Energy, to prescribe personnel strengths for such fiscal year for the Armed Forces, and for other purposes. Pending: Lott amendment No. 394, to improve the monitoring of the export of advanced satellite technology, to require annual reports with respect to Taiwan, and to improve the provisions relating to safeguards, security, and counterintelligence at Department of Energy facilities. Allard/Harkin amendment No. 396, to express the sense of Congress that no major change to the governance structure of the Civil Air Patrol should be mandated by Congress until a review of potential improvements in the management and oversight of Civil Air Patrol operations is conducted. Amendments Nos. 411 Through 441, En Bloc Mr. WARNER. Mr. President, it is the intention of the manager to try to do the cleared amendments. I want to make certain that the distinguished ranking member is in concurrence. That is indicated, so I think I will proceed. On behalf of myself and the ranking member, the Senator from Michigan, I send 31 amendments to the desk. I would say before the clerk reports that this package of amendments is for Senators on both sides of the aisle and has been cleared by the minority. I send the amendments to the desk at this time and ask that they be considered en bloc. The PRESIDING OFFICER. Without objection, it is so ordered. The clerk will report. The legislative clerk read as follows: The Senator from Virginia [Mr. Warner], for himself and Mr. Levin, and on behalf of other Senators, proposes amendments en bloc numbered 411 through 441. Mr. WARNER. Mr. President, I ask unanimous consent that the amendments be agreed to en bloc and that the motion to reconsider be laid upon the table. I further ask that any statements relating to these amendments be printed in the Record. The PRESIDING OFFICER. Without objection, it is so ordered. The amendments (Nos. 411 through 441) agreed to en bloc are as follows: amendment no. 411 (Purpose: To authorize the Secretary of Defense to incorporate into the Pentagon Renovation Program the construction of certain security enhancements) On page 428, after line 19, insert the following new section: SEC. . ENHANCEMENT OF PENTAGON RENOVATION ACTIVITIES. The Secretary of Defense in conjunction with the Pentagon Renovation Program is authorized to design and construct secure secretarial office and support facilities and security-related changes to the METRO entrance at the Pentagon Reservation. The Secretary shall, not later than January 15, 2000, submit to the congressional defense committees the estimated cost for the planning, design, construction, and installation of equipment for these enhancements, together with the revised estimate for the total cost of the renovation of the Pentagon. ____ amendment no. 412 (Purpose: To authorize the appropriation for the increased pay and pay reform for members of the uniformed services contained in the 1999 Emergency Supplemental Appropriations Act) On page 98, line 15, strike ``$71,693,093,000.'' and insert in lieu thereof the following: ``$71,693,093,000, and in addition funds in the total amount of $1,838,426,000 are authorized to be appropriated as emergency appropriations to the Department of Defense for fiscal year 2000 for military personnel, as appropriated in section 2012 of the 1999 Emergency Supplemental Appropriations Act (Public Law 106- 31).'' ____ amendment no. 413 (Purpose: To authorize dental benefits for retirees that are comparable to those provided for dependents of members of the uniformed services) In title VII, at the end of subtitle B, add the following: SEC. 717. ENHANCEMENT OF DENTAL BENEFITS FOR RETIREES. Subsection (d) of section 1076c of title 10, United States Code, is amended to read as follows: `'(d) Benefits Available Under the Plan.--The dental insurance plan established under subsection (a) shall provide benefits for dental care and treatment which may be comparable to the benefits authorized under section 1076a of this title for plans established under that section and shall include diagnostic services, preventative services, endodontics and other basic restorative services, surgical services, and emergency services.''. ____ amendment no. 413 Mr. ALLARD. Mr. President, this Amendment will give the Department of Defense the ability to significantly strengthen the dental benefits for over 270,000 of our nation's military retirees and their family members. The TRICARE retiree dental program began on February 1, 1998 and is an affordable plan paid for exclusively by retiree premiums. According to the Department, the enrollment in the program has exceeded all projections. While current law covers the most basic dental procedures, the Department of Defense does not have the flexibility to expand their benefits without a legislative change. Our nation's military retirees have expressed a desire to both the Department and the contractors for more services, and are willing to pay a reasonable price for these extra benefits. Currently, the retiree dental program is limited to an annual cleaning, filings, root canals, oral surgeries and the like. This amendment would change the law to allow, but not mandate, the Department the opportunity to offer an expanded list of benefits such as dentures, bridges and crowns, which are needs characteristic of our nation's retired military members. If the Department decided to offer these service, they would continue to be paid for by member premiums. In conclusion, I would ask the support of all my colleagues for this important amendment to allow the Department to give the needed dental services to our valued military retires. Thank you for the time. amendment no. 414 (Purpose: To provide $6,000,000 (in PE 604604F) for the Air Force for the 3-D advanced track acquisition and imaging system, and to provide an offset) On page 29, line 12, increase the amount by $6,000,000. On page 29, line 14, decrease the amount by $6,000,000. ____ 3-d advanced track acquisition and imaging system Mr. MACK. Mr. President, I rise today in support of additional funds to be made available for Air Force Research, Development, Test and Evaluation in the Fiscal Year 2000 Department of Defense Authorization measure to be used to complete development of a state-of-the-art 3 dimensional optical imaging and tracking instrumentation data system. The 3 Data System is a laser radar system that provides high fidelity time, space, positioning information (TSPI) on test articles during flight. The instrumentation can be applied to air, ground, and sea targets. Additionally, it will provide the potential capability for over-the-horizon tracking from an airborne platform or pedestal mounted ground platform. It includes a multi-object tracking capability that will allow simultaneous tracking of up to 20 targets throughout their profile. The system will enable testing of advanced smart weapon systems; force-on-force exercises where multiple aircraft and ground vehicle tracking is involved; over water scoring of large footprint autonomous guided and unguided munitions; and enable an improvement to existing aging radar presently in service. It is mobile and can support testing at other major ranges and locations in support of other Service's requirements. The Air Force has identified the 3-Data System as having high military value as it will enable the effective evaluation of the performance of advanced weapon systems to be utilized in future conflicts. The Air Force has informed me that precision engagement is one of the emerging operational concepts in Joint Vision 2010. The 3- Data system would provide a capability to effectively evaluate the performance of advanced precision guided munitions and smart weapons prior to their use in a wartime environment. It would also directly support ongoing activities abroad through Quick Reaction Tasking that may require a multiple object tracking device to evaluate engagement profiles. This requirement is documented through 46th Test Wing strategic planning initiatives, developmental program test plans, and munitions strategic planning roadmaps. [[Page S6161]] The Air Force is presently attempting to meet this requirement through existing radar systems and optical tracking systems which cannot track multiple objects to the fidelity levels required and which require extensive post-mission data reduction times. This system will provide the capability to effectively track multiple targets simultaneously. Mr. President, I thank the Committee for their willingness to support this amendment. The 3-Data System will play a important role in enabling the Air Force to evaluate the capabilities and limitations of multiple smart weapons and their delivery systems during their develpoment. amendment no. 415 (Purpose: To amend a per purchase dollar limitation of funding assistance for procurement of equipment for the National Guard for drug interdiction and counter-drug activities so as to apply the limitation to each item of equipment procured) In title III, at the end of subtitle D, add the following: SEC. 349. MODIFICATION OF LIMITATION ON FUNDING ASSISTANCE FOR PROCUREMENT OF EQUIPMENT FOR THE NATIONAL GUARD FOR DRUG INTERDICTION AND COUNTER--DRUG ACTIVITIES. Section 112(a)(3) of title 32, United States Code, is amended by striking ``per purchase order'' in the second sentence and inserting ``per item''. ____ AMENDMENT NO. 416 (Purpose: To require the Secretary of the Army to review the incidence of violations of State and local motor vehicle laws and to submit a report on the review to Congress) On page 357, between lines 11 and 12, insert the following: SEC. 1032. REVIEW OF INCIDENCE OF STATE MOTOR VEHICLE VIOLATIONS BY ARMY PERSONNEL. (a) Review and Report Required.--The Secretary of the Army shall review the incidence of violations of State and local motor vehicle laws applicable to the operation and parking of Army motor vehicles by Army personnel during fiscal year 1999, and, not later than March 31, 2000, submit a report on the results of the review to Congress. (b) Content of Report.--The report under subsection (a) shall include the following: (1) A quantitative description of the extent of the violations described in subsection (a). (2) An estimate of the total amount of the fines that are associated with citations issued for the violations. (3) Any recommendations that the Inspector General considers appropriate to curtail the incidence of the violations. ____ AMENDMENT NO. 417 (Purpose: To substitute for section 654 a repeal of the reduction in military retired pay for civilian employees of the Federal Government) Strike section 654, and insert the following: SEC. 654. REPEAL OF REDUCTION IN RETIRED PAY FOR CIVILIAN EMPLOYEES. (a) Repeal.--(1) Section 5532 of title 5, United States Code, is repealed. (2) The chapter analysis at the beginning of chapter 55 of such title is amended by striking the item relating to section 5532. (b) Effective Date.--The amendments made by subsection (a) shall take effect on the first day of the first month that begins after the date of the enactment of this Act. repeal dual compensation limitations Mr. CRAPO. Mr. President, my amendment is co-sponsored by the Senate Majority Leader, Senator Lott. On February 23, 1999, the Senate voted 87 to 11 in favor of this same amendment during consideration of S. 4. My amendment will repeal the current statute that reduces retirement pay for regular officers of a uniformed service who chose to work for the federal government. The uniformed services include the Army, Navy, Air Force, Marine Corps, Coast Guard, Public Health Service and the National Oceanographic and Atmospheric Agency. If a retired officer from the uniform services comes to work for the Senate, his or her retirement pay is reduced by about 50 percent, after the first $8,000, to offset for payments from the Senate. The retired officer can request a waiver but the executive, legislative and judicial branches of government handle the waiver process differently on a case by case basis. The current dual compensation limitation is also discriminatory in that regular officers are covered but reservists or enlisted personnel are not covered by the limitation. The Congressional Budget Office has recently looked at the current dual compensation limitation and it is estimated that around 6,000 military retirees lose an average of $800 per month because of this prohibition. I have been unable to find one good reason to explain why we should want our law to discourage retired members of the uniformed services from seeking full time employment with the Federal Government. Our laws should not reduce a benefit military retirees have earned because they chose to work for the federal government. My amendment would fix this inequity, it would give retired officers equal pay for equal work from the federal government and it would give the federal government access to a workforce that currently avoids employment with the Federal Government. I am pleased the managers of the bill have agreed to accept my amendment and I thank them for their support for this important amendment. AMENDMENT NO. 418 (Purpose: To establish as a policy of the United States that the United States will seek to establish a multinational economic embargo against any foreign country with which the United States is engaged in armed conflict, and for other purposes) In title X, at the end of subtitle D, add the following: SEC. 1061. MULTINATIONAL ECONOMIC EMBARGOES AGAINST GOVERNMENTS IN ARMED CONFLICT WITH THE UNITED STATES. (a) Policy on the Establishment of Embargoes.-- (1) In general.--It is the policy of the United States, that upon the use of the Armed Forces of the United States to engage in hostilities against any foreign country, the President shall as appropriate-- (A) seek the establishment of a multinational economic embargo against such country; and (B) seek the seizure of its foreign financial assets. (b) Reports.--Not later than 20 days, or earlier than 14 days, after the first day of the engagement of the United States in any armed conflict described in subsection (a), the President shall, if the armed conflict continues, submit a report to Congress setting forth-- (1) the specific steps the United States has taken and will continue to take to institute the embargo and financial asset seizures pursuant to subsection (a); and (2) any foreign sources of trade of revenue that directly or indirectly support the ability of the adversarial government to sustain a military conflict against the Armed Forces of the United States. ____ AMENDMENT NO. 419 (Purpose: To require a report on the Air Force distributed mission training) On page 54, after line 24, insert the following: Subtitle E--Other Matters SEC. 251. REPORT ON AIR FORCE DISTRIBUTED MISSION TRAINING. (a) Requirement.--The Secretary of the Air Force shall submit to Congress, not later than January 31, 2000, a report on the Air Force Distributed Mission Training program. (b) Content of Report.--The report shall include a discussion of the following: (1) The progress that the Air Force has made to demonstrate and prove the Air Force Distributed Mission Training concept of linking geographically separated, high-fidelity simulators to provide a mission rehearsal capability for Air Force units, and any units of any of the other Armed Forces as may be necessary, to train together from their home stations. (2) The actions that have been taken or are planned to be taken within the Department of the Air Force to ensure that-- (A) an independent study of all requirements, technologies, and acquisition strategies essential to the formulation of a sound Distributed Mission Training program is under way; and (B) all Air Force laboratories and other Air Force facilities necessary to the research, development, testing, and evaluation of the Distributed Mission Training program have been assessed regarding the availability of the necessary resources to demonstrate and prove the Air Force Distributed Mission Training concept. ____ AMENDMENT NO. 420 (Purpose: To add test and evaluation laboratories to the pilot program for revitalizing Department of Defense laboratories; and to add an authority for directors of laboratories under the pilot program) On page 48, line 5, after ``laboratory'', insert the following: ``, and the director of one test and evaluation laboratory,''. On page 48, between lines 11 and 12, insert the following: (B) To develop or expand innovative methods of operation that provide more defense research for each dollar of cost, including to carry out such initiatives as focusing on the performance of core functions and adopting more business-like practices. On page 48, line 12, strike ``(B)'' and insert ``(C)''. On page 48, beginning on line 14, strike ``subparagraph (A)'' and insert ``subparagraphs (A) and (B)''. [[Page S6162]] ____ AMENDMENT NO. 421 (Purpose: To authorize land conveyances with respect to the Twin Cities Army Ammunition Plant, Minnesota) On page 453, between lines 10 and 11, insert the following: SEC. 2832. LAND CONVEYANCES, TWIN CITIES ARMY AMMUNITION PLANT, MINNESOTA. (a) Conveyance to City Authorized.--The Secretary of the Army may convey to the City of Arden Hills, Minnesota (in this section referred to as the ``City''), all right, title, and interest of the United States in and to a parcel of real property, including improvements thereon, consisting of approximately 4 acres at the Twin Cities Army Ammunition Plant, for the purpose of permitting the City to construct a city hall complex on the parcel. (b) Conveyance to County Authorized.--The Secretary of the Army may convey to Ramsey County, Minnesota (in this section referred to as the ``County''), all right, title, and interest of the United States in and to a parcel of real property, including improvements thereon, consisting of approximately 35 acres at the Twin Cities Army Ammunition Plant, for the purpose of permitting the County to construct a maintenance facility on the parcel. (c) Consideration.--As a consideration for the conveyances under this section, the City shall make the city hall complex available for use by the Minnesota National Guard for public meetings, and the County shall make the maintenance facility available for use by the Minnesota National Guard, as detailed in agreements entered into between the City, County, and the Commanding General of the Minnesota National Guard. Use of the city hall complex and maintenance facility by the Minnesota National Guard shall be without cost to the Minnesota National Guard. (d) Description of Property.--The exact acreage and legal description of the real property to be conveyed under this section shall be determined by surveys satisfactory to the Secretary. The cost of the survey shall be borne by the recipient of the real property. (e) Additional Terms and Conditions.--The Secretary may require such additional terms and conditions in connection with the conveyances under this section as the Secretary considers appropriate to protect the interests of the United States. ____ AMENDMENT NO. 422 (Purpose: To require a land conveyance, Naval Training Center, Orlando, Florida) On page 459, between lines 17 and 18, insert the following: SEC. 2844. LAND CONVEYANCE, NAVAL TRAINING CENTER, ORLANDO, FLORIDA. (a) Conveyance Required.--The Secretary of the Navy shall convey all right, title, and interest of the United States in and to the land comprising the main base portion of the Naval Training Center and the McCoy Annex Areas, Orlando, Florida, to the City of Orlando, Florida, in accordance with the terms and conditions set forth in the Memorandum of Agreement by and between the United States of America and the City of Orlando for the Economic Development Conveyance of Property on the Main Base and McCoy Annex Areas of the Naval Training Center, Orlando, executed by the Parties on December 9, 1997, as amended. ____ amendment no. 423 (Purpose: To modify the conditions for issuing obsolete or condemned rifles of the Army and blank ammunition without charge) In title X, at the end of subtitle D, add the following: SEC. 1061. CONDITIONS FOR LENDING OBSOLETE OR CONDEMNED RIFLES FOR FUNERAL CEREMONIES. Section 4683(a)(2) of title 10, United States Code, is amended to read as follows: ``(2) issue and deliver those rifles, together with blank ammunition, to those units without charge if the rifles and ammunition are to be used for ceremonies and funerals in honor of veterans at national or other cemeteries.''. ____ amendment no. 424 (Purpose: To authorize use of Navy procurement funds for advance procurement for the Arleigh Burke class destroyer program) On page 25, between lines 17 and 18, insert the following: (c) Other Funds for Advance Procurement.--Notwithstanding any other provision of this Act, of the funds authorized to be appropriated under section 102(a) for procurement programs, projects, and activities of the Navy, up to $190,000,000 may be made available, as the Secretary of the Navy may direct, for advance procurement for the Arleigh Burke class destroyer program. Authority to make transfers under this subsection is in addition to the transfer authority provided in section 1001. ____ amendment no. 425 (Purpose: To set aside funds for the procurementof the MLRS rocket inventory and reuse model) In title I, at the end of subtitle B, add the following: SEC. 114. MULTIPLE LAUNCH ROCKET SYSTEM. Of the funds authorized to be appropriated under section 101(2), $500,000 may be made available to complete the development of reuse and demilitarization tools and technologies for use in the disposition of Army MLRS inventory. ____ amendment no. 426 (Purpose: To expand the entities eligible to participate in alternative authority for acquisition and improvement of military housing) On page 440, between lines 6 and 7, insert the following: SEC. 2807. EXPANSION OF ENTITIES ELIGIBLE TO PARTICIPATE IN ALTERNATIVE AUTHORITY FOR ACQUISITION AND IMPROVEMENT OF MILITARY HOUSING. (a) Definition of Eligible Entity.--Section 2871 of title 10, United States Code, is amended-- (1) by redesignating paragraphs (5) through (7) as paragraphs (6) through (8) respectively; and (2) by inserting after paragraph (4) the following new paragraph (5): ``(5) The term `eligible entity' means any individual, corporation, firm, partnership, company, State or local government, or housing authority of a State or local government.''. (b) General Authority.--Section 2872 of such title is amended by striking ``private persons'' and inserting ``eligible entities''. (c) Direct Loans and Loan Guarantees.--Section 2873 of such title is amended-- (1) in subsection (a)(1)-- (A) by striking ``persons in private sector'' and inserting ``an eligible entity''; and (B) by striking ``such persons'' and inserting ``the eligible entity''; and (2) in subsection (b)(1)-- (A) by striking ``any person in the private sector'' and inserting ``an eligible entity''; and (B) by striking ``the person'' and inserting ``the eligible entity''. (d) Investments.--Section 2875 of such title is amended-- (1) in subsection (a), by striking ``nongovernmental entities'' and inserting ``an eligible entity''; (2) in subsection (c)-- (A) by striking ``a nongovernmental entity'' both places it appears and inserting ``an eligible entity''; and (B) by striking ``the entity'' each place it appears and inserting ``the eligible entity''; (3) in subsection (d), by striking ``nongovernmental'' and inserting ``eligible''; and (4) in subsection (e), by striking ``a nongovernmental entity'' and inserting ``an eligible entity''. (e) Rental Guarantees.--Section 2876 of such title is amended by striking ``private persons'' and inserting ``eligible entities''. (f) Differential Lease Payments.--Section 2877 of such title is amended by striking ``private''. (g) Conveyance or Lease of Existing Property and Facilities.--Section 2878(a) of such title is amended by striking ``private persons'' and inserting ``eligible entities''. (h) Clerical Amendments.--(1) The heading of section 2875 of such title is amended to read as follows: ``Sec. 2875. Investments''. (2) The table of sections at the beginning of subchapter IV of chapter 169 of such title is amended by striking the item relating to section 2875 and inserting the following new item: ``2875. Investments.''. ____ amendment no. 427 (Purpose: To authorize medical and dental care for certain members of the Armed Forces incurring injuries on inactive-duty training) On page 272, between lines 8 and 9, insert the following: SEC. 717. MEDICAL AND DENTAL CARE FOR CERTAIN MEMBERS INCURRING INJURIES ON INACTIVE-DUTY TRAINING. (a) Order to Active Duty Authorized.--(1) Chapter 1209 of title 10, United States Code, is amended by adding at the end the following: ``Sec. 12322. Active duty for health care ``A member of a uniformed service described in paragraph (1)(B) or (2)(B) of section 1074a(a) of this title may be ordered to active duty, and a member of a uniformed service described in paragraph (1)(A) or (2)(A) of such section may be continued on active duty, for a period of more than 30 days while the member is being treated for (or recovering from) an injury, illness, or disease incurred or aggravated in the line of duty as described in such paragraph.''. (2) The table of sections at the beginning of such chapter is amended by adding at the end the following: ``12322. Active duty for health care.''. (b) Medical and Dental Care for Members.--Subsection (e) of section 1074a of such title is amended to read as follows: ``(e)(1) A member of a uniformed service on active duty for health care or recuperation reasons, as described in paragraph (2), is entitled to medical and dental care on the same basis and to the same extent as members covered by section 1074(a) of this title while the member remains on active duty. ``(2) Paragraph (1) applies to a member described in paragraph (1) or (2) of subsection (a) who, while being treated for (or recovering from) an injury, illness, or disease incurred or aggravated in the line of duty, is continued on active duty pursuant to a modification or extension of orders, or is ordered to active duty, so as to result in active duty for a period of more than 30 days.''. (c) Medical and Dental Care for Dependents.--Subparagraph (D) of section 1076(a)(2) of such title is amended to read as follows: [[Page S6163]] ``(D) A member on active duty who is entitled to benefits under subsection (e) of section 1074a of this title by reason of paragraph (1), (2), or (3) of subsection (a) of such section.''. Mr. CLELAND. Mr. President, I am pleased to offer this amendment to S. 1059, The National Defense Authorization Act for Fiscal Year 2000, which seeks to protect the men and women of our reserve military components. The 1998 National Defense Authorization Act provided health care coverage for Reservists and Guardsmen incurring injury, illness or disease while performing duty in an active-duty status. However, it overlooked those servicemen and women performing duty in ``inactive duty'' status, which is the status they are in while performing their monthly ``drill weekends.'' This problem was dramatically illustrated recently when an Air Force Reserve C-130 crashed in Honduras, killing three crewmembers. One of the survivors was unable to work for over a year due to the serious nature of his injuries. While he was reimbursed for lost earnings, this serviceman was only eligible for military medical care related to injuries sustained in the crash. His family lost their civilian health insurance and was ineligible to receive medical from the military. Had he been on military orders of more than 30 days, both he and his family would have been eligible for full military medical benefits for the duration of his recovery. My dear colleagues, this is unacceptable. We must plug this loophole so that these tragic circumstances are not repeated. Why is it so important that we look out for our Guardsmen and Reservists? It is because our military services have been reduced by one-third, while worldwide commitments have increased fourfold, leading to a dramatic increase in the dependence on our reserve components to meet our worldwide commitments. Like their active duty counterparts, they are dealing with the demands of a high operations tempo; yet they must meet the additional challenge of balancing their military duty with their civilian employment. Members of the Guard and Reserve have been participating at record levels. Nearly 270,000 Reservists and Guardsmen were mobilized during Operations Desert Shield and Desert Storm. Over 17,000 Reservists and Guardsmen have answered the Nation's call to bring peace to Bosnia. And, recently, over 4,000 Reservists and Guardsmen have been called up to support current operations in Kosovo. The days of the ``weekend warrior'' are long gone. In addition to significant contributions to military operations, members of the reserve components have delivered millions of pounds of humanitarian cargo to all corners of the globe. Closer to home, they have responded to numerous state emergencies, such as the devastating floods that struck in America's heartland last year. The men and women of the Reserve Components are on duty all over the world, every day of the year. Considering everything our citizen soldiers, sailors, airmen and marines have done for us, we must not turn our backs on them and their families in their times of need. Please join me in supporting this amendment providing for those who provide for us. amendment no. 428 (Purpose: To refine and extend Federal acquisition streamlining) At the end of title VIII, add the following: SEC. 807. STREAMLINED APPLICABILITY OF COST ACCOUNTING STANDARDS. (a) Applicability.--Paragraph (2) of section 26(f) of the Office of Federal Procurement Policy Act (41 U.S.C. 422(f)(2)) is amended-- (1) by redesignating subparagraph (C) as subparagraph (D); (2) by striking subparagraph (B) and inserting the following: ``(B) The cost accounting standards shall not apply to a contractor or subcontractor for a fiscal year (or other one- year period used for cost accounting by the contractor or subcontractor) if the total value of all of the contracts and subcontracts covered by the cost accounting standards that were entered into by the contractor or subcontractor, respectively, in the previous or current fiscal year (or other one-year cost accounting period) was less than $50,000,000. ``(C) Subparagraph (A) does not apply to the following contracts or subcontracts for the purpose of determining whether the contractor or subcontractor is subject to the cost accounting standards: ``(i) Contracts or subcontracts for the acquisition of commercial items. ``(ii) Contracts or subcontracts where the price negotiated is based on prices set by law or regulation. ``(iii) Firm, fixed-price contracts or subcontracts awarded on the basis of adequate price competition without submission of certified cost or pricing data. ``(iv) Contracts or subcontracts with a value that is less than $5,000,000.''. (b) Waiver.--Such section is further amended by adding at the end the following: ``(5)(A) The head of an executive agency may waive the applicability of cost accounting standards for a contract or subcontract with a value less than $10,000,000 if that official determines in writing that-- ``(i) the contractor or subcontractor is primarily engaged in the sale of commercial items; and ``(ii) the contractor or subcontractor would not otherwise be subject to the cost accounting standards. ``(B) The head of an executive agency may also waive the applicability of cost accounting standards for a contract or subcontract under extraordinary circumstances when necessary to meet the needs of the agency. A determination to waive the applicability of cost accounting standards under this subparagraph shall be set forth in writing and shall include a statement of the circumstances justifying the waiver. ``(C) The head of an executive agency may not delegate the authority under subparagraph (A) or (B) to any official in the executive agency below the senior policymaking level in the executive agency. ``(D) The Federal Acquisition Regulation shall include the following: ``(i) Criteria for selecting an official to be delegated authority to grant waivers under subparagraph (A) or (B). ``(ii) The specific circumstances under which such a waiver may be granted. ``(E) The head of each executive agency shall report the waivers granted under subparagraphs (A) and (B) for that agency to the Board on an annual basis.''. (c) Construction Regarding Certain Not-For-Profit Entities.--The amendments made by this section shall not be construed as modifying or superseding, nor as intended to impair or restrict, the applicability of the cost accounting standards to-- (1) any educational institution or federally funded research and development center that is associated with an educational institution in accordance with Office of Management and Budget Circular A-21, as in effect on January 1, 1999; or (2) any contract with a nonprofit entity that provides research and development and related products or services to the Department of Defense. SEC. 808. GUIDANCE ON USE OF TASK ORDER AND DELIVERY ORDER CONTRACTS. (a) Guidance in the Federal Acquisition Regulation.--Not later than 180 days after the date of the enactment of this Act, the Federal Acquisition Regulation issued in accordance with sections 6 and 25 of the Office of Federal Procurement Policy Act shall be revised to provide guidance to agencies on the appropriate use of task order and delivery order contracts in accordance with sections 2304a through 2304d of title 10, United States Code, and sections 303H through 303K of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 253h through 253k). (b) Content of Guidance.--The regulations issued pursuant to subsection (a) shall, at a minimum, provide the following: (1) Specific guidance on the appropriate use of government- wide and other multiagency contracts entered in accordance with the provisions of law referred to in that subsection. (2) Specific guidance on steps that agencies should take in entering and administering multiple award task order and delivery order contracts to ensure compliance with-- (A) the requirement in section 5122 of the Clinger-Cohen Act (40 U.S.C. 1422) for capital planning and investment control in purchases of information technology products and services; (B) the requirement in section 2304c(b) of title 10, United States Code, and section 303J(b) of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 253j(b)) to ensure that all contractors are afforded a fair opportunity to be considered for the award of task orders and delivery orders; and (C) the requirement in section 2304c(c) of title 10, United States Code, and section 303J(c) of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 253j(c)) for a statement of work in each task order or delivery order issued that clearly specifies all tasks to be performed or property to be delivery under the order. (c) GSA Federal Supply Schedules Program.--The Administrator for Federal Procurement Policy shall consult with the Administrator of General Services to assess the effectiveness of the multiple awards schedule program of the General Services Administration referred to in section 309(b)(3) of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 259(b)(3)) that is administered as the Federal Supply Schedules program. The assessment shall include examination of the following: (1) The administration of the program by the Administrator of General Services. (2) The ordering and program practices followed by Federal customer agencies in using schedules established under the program. (d) GAO Report.--Not later than one year after the date on which the regulations required by subsection (a) are published in the [[Page S6164]] Federal Register, the Comptroller General shall submit to Congress an evaluation of executive agency compliance with the regulations, together with any recommendations that the Comptroller General considers appropriate. SEC. 809. CLARIFICATION OF DEFINITION OF COMMERCIAL ITEMS WITH RESPECT TO ASSOCIATED SERVICES. Section 4(12) (E) of the Office of Federal Procurement Policy Act (41 U.S.C. 403(E)) is amended to read as follows: ``(E) Installation services, maintenance services, repair services, training services, and other services if-- ``(i) the services are procured for support of an item referred to in subparagraph (A), (B), (C), or (D), regardless of whether such services are provided by the same source or at the same time as the item; and ``(ii) the source of the services provides similar services contemporaneously to the general public under terms and conditions similar to those offered to the Federal Government.''. SEC. 810. USE OF SPECIAL SIMPLIFIED PROCEDURES FOR PURCHASES OF COMMERCIAL ITEMS IN EXCESS OF THE SIMPLIFIED ACQUISITION THRESHOLD. (a) Extension of Authority.--Section 4202(e) of the Clinger-Cohen Act of 1996 (divisions D and E of Public Law 104-106; 110 Stat. 654; 10 U.S.C. 2304 note) is amended by striking ``three years after the date on which such amendments take effect pursuant to section 4401(b)'' and inserting ``January 1, 2002''. (b) GAO Report.--Not later than March 1, 2001, the Comptroller General shall submit to Congress an evaluation of the test program authorized by section 4204 of the Clinger- Cohen Act of 1996, together with any recommendations that the Comptroller General considers appropriate regarding the test program or the use of special simplified procedures for purchases of commercial items in excess of the simplified acquisition threshold. SEC. 811. EXTENSION OF INTERIM REPORTING RULE FOR CERTAIN PROCUREMENTS LESS THAN $100,000. Section 31(e) of the Office of Federal Procurement Policy Act (41 U.S.C. 427(e)) is amended by striking ``October 1, 1999'' and inserting ``October 1, 2004''. Mr. THOMPSON. Mr. President, I offer this amendment on behalf of myself as chairman of the Governmental Affairs Committee and Senator Lieberman, the Committee's ranking minority member, and Senators Warner and Levin, the chairman and ranking minority member of the Armed Services Committee. Senator Lieberman and I thank the Armed Services chairman and ranking member for their cooperation and assistance in preparing this amendment which will benefit not only the procurement process within the Department of Defense, but other agencies across the Federal government as well. The amendment which we offer today began as a request from the Administration and others to include additional procurement-related reforms to those enacted over the past several years and those already included in S. 1059. Our amendment includes five provisions, as follows: (1) Streamlined Applicability of Cost Accounting Standards; (2) Task Order and Delivery Order Contracts; (3) Clarification to the Definition of Commercial Items; (4) Two-year Extension of Commercial Items Test Program; and (5) Extension of Interim Reporting Rule on Contracts with Small Business. I ask unanimous consent that a joint statement of sponsors explaining the amendment be placed in the Record immediately following my statement. This statement represents the consensus view of the sponsors as to the meaning and intent of the amendment. There being no objection, the statement was ordered to be printed in the Record, as follows: Joint Statement of Sponsors 1. Streamlined Applicability of Cost Accounting Standards In recent years, Congress has enacted two major acquisition reform statutes--the Federal Acquisition Streamlining Act of 1994 (FASA) and the Clinger-Cohen Act of 1996. These statutes changed the trend in government contracting toward simplifying the government's acquisition process and eliminating many government-unique requirements. The goal of these changes in the government's purchasing processes has been to modify or eliminate unnecessary and burdensome legislative mandates, increase the use of commercial items to meet government needs, and give more discretion to contracting agencies in making their procurement decisions. Since the early 1900's, the Federal government has required certain unique accounting standards or criteria designed to protect it from the risk of overpaying for goods and services by directing the manner or degree to which Federal contractors apportion costs to their contracts with the government. The Cost Accounting Standards (CAS standards) are a set of 19 accounting principles developed and maintained by the Cost Accounting Standards (CAS) Board, a body created by Congress to develop uniform and consistent standards. The CAS standards require government contractors to account for their costs on a consistent basis and prohibit any shifting of overhead or other costs from commercial contacts to government contracts, or from fixed-priced contracts to cost- type contracts. FASA and the Clinger-Cohen Act took significant steps to exempt commercial items from the applicability of the CAS standards. Nonetheless, the Department of Defense and others in the public and private sectors continue to identify the CAS standards as a continuing barrier to the integration of commercial items into the government marketplace. Advocates of relaxing the CAS standards argue that they require companies to create unique accounting systems to do business with the government in cost-type contracts. They believe that the added cost of developing the required accounting systems has discouraged some commercial companies from doing business with the government and led others to set up separate assembly lines for government products, substantially increasing costs to the government. This provision carefully balances the government's need for greater access to commercial items, particularly those of nontraditional suppliers, with the need for a strong set of CAS standards to protect the taxpayers from overpayments to contractors. The provision would modify the CAS standards to streamline their applicability, while maintaining the applicability of the standards to the vast majority of contract dollars that are currently covered. In particular, the provision would raise the threshold for coverage under the CAS standards from $25 million to $50 million; exempt contractors from coverage if they do not have a contract in excess of $5 million; and exclude coverage based on firm, fixed price contracts awarded on the basis of adequate price competition without the submission of certified cost or pricing data. The provision also would provide for waivers of the CAS standards by Federal agencies in limited circumstances. This would allow contracting agencies to handle this contract administration function, in limited circumstances, as part of their traditional role in administering contracts. The sponsors note that waivers would be available for contracts in excess of $10 million only in ``exceptional circumstances.'' The ``exceptional circumstances'' waiver may be used only when a waiver is necessary to meet the needs of an agency, and i.e., the agency determines that it would not be able to obtain the products or services in the absence of a waiver. 2. task order and delivery order contracts FASA authorized Federal agencies to enter into multiple award task and delivery order contracts for the procurement of goods and services. Multiple award contracts occur when two or more contracts are awarded from one solicitation. Multiple award contracting allows the government to procure products and services more quickly using streamlined acquisition procedures while taking advantage of competition to obtain optimum prices and quality on individual task orders or delivery orders. FASA requires orders under multiple-award contracts to contain a clear description of the services or supplies ordered and--except under specified circumstances--requires that each of the multiple vendors be provided a fair opportunity to be considered for specific orders. Concerns have been raised that the simplicity of these multiple-award contracts has brought with it the potential for abuse. The General Accounting Office and the Department of Defense Inspector General have reported that agencies have routinely failed to comply with the basic requirements of FASA, including the requirement to provide vendors a fair opportunity to be considered for specific orders. While performance guidance was established by the Office of Federal Procurement Policy (OFPP) in 1996, the regulations implementing FASA do not establish any specific procedures for awarding orders or any specific safeguards to ensure compliance with competition requirements. This provision would require that the Federal Acquisition Regulation provide the necessary guidance on the appropriate use of task and delivery order contracts as authorized by FASA. It also would require that the Administrator of OFPP work with the Administrator of the General Services Administration (GSA) to review the ordering procedures and practices of the Federal Supply Schedule program administered by GSA. This review should include an assessment as to whether the GSA program should be modified to provide consistency with the regulations for task order and delivery order contracts required by this provision. 3. clarification to the definition of commercial items FASA included a broad new definition of ``commercial items,'' designed to give the Federal government greater access to previously unavailable advanced commercial products and technologies. However, the FASA definition of commercial items included only a limited definition of commercial services. Under FASA, commercial items include services purchased to support a commercial product as a commercial service. This language has been interpreted by some to mean that these ancillary services must be procured at the same time or from [[Page S6165]] the same vendor as the commercial item the service is intended to support. This provision would clarify that services ancillary to a commercial item, such as installation, maintenance, repair, training, and other support services, would be considered a commercial service regardless of whether the service is provided by the same vendor or at the same time as the item if the service is provided contemporaneously to the general public under similar terms and conditions. 4. two-year extension of commercial items test program Section 4202 of the Clinger-Cohen Act of 1996 provided the authority for Federal agencies to use special simplified procedures to purchases for amounts greater than $100,000 but not greater than $5 million if the agency reasonably expects that the offers will include only commercial items. The purpose of this test program was to give agencies additional procedural discretion and flexibility so that purchases of commercial items in this dollar range could be solicited, offered, evaluated, and awarded in a simplified manner that maximizes efficiency and economy and minimizes paperwork burden and administration costs for both government and industry. Authority to use this test program expires on January 1, 2000. The Administration has reported that, due to delays in implementing the test program, the data available from the test program is insufficient to assess the effectiveness of the test, and additional data is required to determine whether this authority should be made permanent. This provision would extend the authority to January 1, 2002. The provision also requires the Comptroller General to report to Congress on the impact of the provision. The sponsors note that the shortened notice period authorized under the test program may have a different impact on competition, depending on the complexity of the commercial items to be procured. For this reason, the sponsors expect the Comptroller General's report to address the extent to which the test authority has been used, the types of commercial items procured under the test program, and the impact of the test program on competition for agency contracts and on the small business share of such contracts. The Comptroller General's report also should assess the extent to which the test program has streamlined the procurement process. 5. extension of interim reporting rule on contracts with small business Section 31(f) of the OFPP Act, as amended by FASA, requires detailed reporting of contract activity between $25,000 and $100,000 in the Federal Procurement Data System (FPDS). This requirement gives the government the ability to track the impact of acquisition reform on the share of contracts in this dollar range that are awarded to small businesses, small disadvantaged businesses and woman-owned small businesses. It also enables the government to track progress and compliance on a variety of Federal procurement programs, such as Small Business Competitiveness Demonstration Program, the Small Disadvantaged Business Reform Program, the HUDBZone Small Business Program, and the IRS Offset Program. Under FASA, this provision is scheduled to expire on October 1, 1999, so that after that date agencies would only be required to report summary data for procurements below $100,000. Because the implementation of acquisition reform measures is ongoing and information on the impact of those measures on small business is important both to Congress and the executive branch, this provision would extend the current reporting requirement until October 1, 2004, as requested by the Administration. amendment no. 429 (Purpose: To authorize an additional $21,700,000 for research, development, test, and evaluation for the Army for the Force XXI Battle Command, Brigade and Below (FBCB2) (PE0203759A), and to offset the additional amount by decreasing by $21,700,000 the authorization for other procurement for the Army for the Maneuver Control System (MCS) On page 17, line 1, strike ``$3,669,070,000'' and insert ``$3,647,370,000''. On page 29, line 10, strike, $4,671,194,000'' and insert ``$4,692,894,000''. ____ amendment no. 430 (Purpose: To improve financial management and accountability in the Department of Defense) On page 321, line 18, strike out ``and''. On page 321, after line 24, insert the following: (iv) obligations and expenditures are recorded contemporaneously with each transaction; (v) organizational and functional duties are performed separately at each step in the cycles of transactions (including, in the case of a contract, the specification of requirements, the formation of the contract, the certification of contract performance, receiving and warehousing, accounting, and disbursing); and (vi) use of progress payment allocation systems results in posting of payments to appropriation accounts consistent with section 1301 of title 31, United States Code. On page 322, line 4, insert before the semicolon the following: ``that, at a minimum, uses double-entry bookkeeping and complies with the United States Government Standard General Ledger at the transaction level as required under section 803(a) of the Federal Financial Management Improvement Act of 1996 (31 U.S.C. 3512 note)''. On page 322, between lines 17 and 18, insert the following: (5) An internal controls checklist which, consistent with the authority in sections 3511 and 3512 of title 31, United States Code, the Comptroller General shall prescribe as the standards for use throughout the Department of Defense, together with a statement of the Department of Defense policy on use of the checklist throughout the department. On page 323, line 14, before the period insert ``or the certified date of receipt of the items''. On page 324, between the matter following line 20 and the matter on line 21, insert the following: (c) Study and Report on Department of Defense Electronic Fund Transfers.--(1) Subject to paragraph (3), the Secretary of Defense shall conduct a feasibility study to determine-- (A) whether all electronic payments issued by the Department of Defense should be routed through the Regional Finance Centers of the Department of the Treasury for verification and reconciliation; (B) whether all electronic payments made by the Department of Defense should be subjected to the same level of reconciliation as United States Treasury checks, including matching each payment issued with each corresponding deposit at financial institutions; (C) whether the appropriate computer security controls are in place in order to ensure the integrity of electronic payments; (D) the estimated costs of implementing the processes and controls described in subparagraphs (A), (B), (C); and (E) the period that would be required to implement the processes and controls. (2) Not later than March 1, 2000, the Secretary of Defense shall submit a report to Congress containing the results of the study required by paragraph (1). (3) In this subsection, the term ``electronic payment'' means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, which is initiated through an electronic terminal, telephonic instrument, or computer or magnetic tape so as to order, instruct, or authorize a debit or credit to a financial account. On page 329, after line 25, insert the following: SEC. 1009. RESPONSIBILITIES AND ACCOUNTABILITY FOR FINANCIAL MANAGEMENT. (a) Under Secretary of Defense (Comptroller).--(1) Section 135 of title 10, United States Code, is amended-- (A) by redesignating subsections (d) and (e) as subsections (e) and (f), respectively; and (B) by inserting after subsection (c) the following: ``(d)(1) The Under Secretary is responsible for ensuring that the financial statements of the Department of Defense are in a condition to receive an unqualified audit opinion and that such an opinion is obtained for the statements. ``(2) If the Under Secretary delegates the authority to perform a duty, including any duty relating to disbursement or accounting, to another officer, employee, or entity of the United States, the Under Secretary continues after the delegation to be responsible and accountable for the activity, operation, or performance of a system covered by the delegated authority.''. (2) Subsection (c)(1) of such section is amended by inserting ``and to ensure accountability to the citizens of the United States, Congress, the President, and managers within the Department of Defense'' before the semicolon at the end. (b) Management of Credit Cards.--(1) The Under Secretary of Defense (Comptroller) shall prescribe regulations governing the use and control of all credit cards and convenience checks that are issued to Department of Defense personnel for official use. The regulations shall be consistent with regulations that apply government-wide regarding use of credit cards by Federal Government personnel for official purposes. (2) The regulations shall include safeguards and internal controls to ensure the following: (A) There is a record of all credited card holders that is annotated with the limitations on amounts that are applicable to the use of each card by each credit card holder. (B) The credit card holders and authorizing officials are responsible for reconciling the charges appearing on each statement of account with receipts and other supporting documentation and for forwarding reconciled statements to the designated disbursing office in a timely manner. (C) Disputes and discrepancies are resolved in the manner prescribed in the applicable Governmentwide credit card contrac

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NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2000
(Senate - May 27, 1999)

Text of this article available as: TXT PDF [Pages S6160-S6274] [[Page S6160]] NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2000 The PRESIDING OFFICER. Under the previous order, the Senate will now resume consideration of S. 1059, which the clerk will report. The legislative assistant read as follows: A bill (S. 1059) to authorize appropriations for fiscal year 2000 military activities of the Department of Defense, for military construction, and for defense activities of the Department of Energy, to prescribe personnel strengths for such fiscal year for the Armed Forces, and for other purposes. Pending: Lott amendment No. 394, to improve the monitoring of the export of advanced satellite technology, to require annual reports with respect to Taiwan, and to improve the provisions relating to safeguards, security, and counterintelligence at Department of Energy facilities. Allard/Harkin amendment No. 396, to express the sense of Congress that no major change to the governance structure of the Civil Air Patrol should be mandated by Congress until a review of potential improvements in the management and oversight of Civil Air Patrol operations is conducted. Amendments Nos. 411 Through 441, En Bloc Mr. WARNER. Mr. President, it is the intention of the manager to try to do the cleared amendments. I want to make certain that the distinguished ranking member is in concurrence. That is indicated, so I think I will proceed. On behalf of myself and the ranking member, the Senator from Michigan, I send 31 amendments to the desk. I would say before the clerk reports that this package of amendments is for Senators on both sides of the aisle and has been cleared by the minority. I send the amendments to the desk at this time and ask that they be considered en bloc. The PRESIDING OFFICER. Without objection, it is so ordered. The clerk will report. The legislative clerk read as follows: The Senator from Virginia [Mr. Warner], for himself and Mr. Levin, and on behalf of other Senators, proposes amendments en bloc numbered 411 through 441. Mr. WARNER. Mr. President, I ask unanimous consent that the amendments be agreed to en bloc and that the motion to reconsider be laid upon the table. I further ask that any statements relating to these amendments be printed in the Record. The PRESIDING OFFICER. Without objection, it is so ordered. The amendments (Nos. 411 through 441) agreed to en bloc are as follows: amendment no. 411 (Purpose: To authorize the Secretary of Defense to incorporate into the Pentagon Renovation Program the construction of certain security enhancements) On page 428, after line 19, insert the following new section: SEC. . ENHANCEMENT OF PENTAGON RENOVATION ACTIVITIES. The Secretary of Defense in conjunction with the Pentagon Renovation Program is authorized to design and construct secure secretarial office and support facilities and security-related changes to the METRO entrance at the Pentagon Reservation. The Secretary shall, not later than January 15, 2000, submit to the congressional defense committees the estimated cost for the planning, design, construction, and installation of equipment for these enhancements, together with the revised estimate for the total cost of the renovation of the Pentagon. ____ amendment no. 412 (Purpose: To authorize the appropriation for the increased pay and pay reform for members of the uniformed services contained in the 1999 Emergency Supplemental Appropriations Act) On page 98, line 15, strike ``$71,693,093,000.'' and insert in lieu thereof the following: ``$71,693,093,000, and in addition funds in the total amount of $1,838,426,000 are authorized to be appropriated as emergency appropriations to the Department of Defense for fiscal year 2000 for military personnel, as appropriated in section 2012 of the 1999 Emergency Supplemental Appropriations Act (Public Law 106- 31).'' ____ amendment no. 413 (Purpose: To authorize dental benefits for retirees that are comparable to those provided for dependents of members of the uniformed services) In title VII, at the end of subtitle B, add the following: SEC. 717. ENHANCEMENT OF DENTAL BENEFITS FOR RETIREES. Subsection (d) of section 1076c of title 10, United States Code, is amended to read as follows: `'(d) Benefits Available Under the Plan.--The dental insurance plan established under subsection (a) shall provide benefits for dental care and treatment which may be comparable to the benefits authorized under section 1076a of this title for plans established under that section and shall include diagnostic services, preventative services, endodontics and other basic restorative services, surgical services, and emergency services.''. ____ amendment no. 413 Mr. ALLARD. Mr. President, this Amendment will give the Department of Defense the ability to significantly strengthen the dental benefits for over 270,000 of our nation's military retirees and their family members. The TRICARE retiree dental program began on February 1, 1998 and is an affordable plan paid for exclusively by retiree premiums. According to the Department, the enrollment in the program has exceeded all projections. While current law covers the most basic dental procedures, the Department of Defense does not have the flexibility to expand their benefits without a legislative change. Our nation's military retirees have expressed a desire to both the Department and the contractors for more services, and are willing to pay a reasonable price for these extra benefits. Currently, the retiree dental program is limited to an annual cleaning, filings, root canals, oral surgeries and the like. This amendment would change the law to allow, but not mandate, the Department the opportunity to offer an expanded list of benefits such as dentures, bridges and crowns, which are needs characteristic of our nation's retired military members. If the Department decided to offer these service, they would continue to be paid for by member premiums. In conclusion, I would ask the support of all my colleagues for this important amendment to allow the Department to give the needed dental services to our valued military retires. Thank you for the time. amendment no. 414 (Purpose: To provide $6,000,000 (in PE 604604F) for the Air Force for the 3-D advanced track acquisition and imaging system, and to provide an offset) On page 29, line 12, increase the amount by $6,000,000. On page 29, line 14, decrease the amount by $6,000,000. ____ 3-d advanced track acquisition and imaging system Mr. MACK. Mr. President, I rise today in support of additional funds to be made available for Air Force Research, Development, Test and Evaluation in the Fiscal Year 2000 Department of Defense Authorization measure to be used to complete development of a state-of-the-art 3 dimensional optical imaging and tracking instrumentation data system. The 3 Data System is a laser radar system that provides high fidelity time, space, positioning information (TSPI) on test articles during flight. The instrumentation can be applied to air, ground, and sea targets. Additionally, it will provide the potential capability for over-the-horizon tracking from an airborne platform or pedestal mounted ground platform. It includes a multi-object tracking capability that will allow simultaneous tracking of up to 20 targets throughout their profile. The system will enable testing of advanced smart weapon systems; force-on-force exercises where multiple aircraft and ground vehicle tracking is involved; over water scoring of large footprint autonomous guided and unguided munitions; and enable an improvement to existing aging radar presently in service. It is mobile and can support testing at other major ranges and locations in support of other Service's requirements. The Air Force has identified the 3-Data System as having high military value as it will enable the effective evaluation of the performance of advanced weapon systems to be utilized in future conflicts. The Air Force has informed me that precision engagement is one of the emerging operational concepts in Joint Vision 2010. The 3- Data system would provide a capability to effectively evaluate the performance of advanced precision guided munitions and smart weapons prior to their use in a wartime environment. It would also directly support ongoing activities abroad through Quick Reaction Tasking that may require a multiple object tracking device to evaluate engagement profiles. This requirement is documented through 46th Test Wing strategic planning initiatives, developmental program test plans, and munitions strategic planning roadmaps. [[Page S6161]] The Air Force is presently attempting to meet this requirement through existing radar systems and optical tracking systems which cannot track multiple objects to the fidelity levels required and which require extensive post-mission data reduction times. This system will provide the capability to effectively track multiple targets simultaneously. Mr. President, I thank the Committee for their willingness to support this amendment. The 3-Data System will play a important role in enabling the Air Force to evaluate the capabilities and limitations of multiple smart weapons and their delivery systems during their develpoment. amendment no. 415 (Purpose: To amend a per purchase dollar limitation of funding assistance for procurement of equipment for the National Guard for drug interdiction and counter-drug activities so as to apply the limitation to each item of equipment procured) In title III, at the end of subtitle D, add the following: SEC. 349. MODIFICATION OF LIMITATION ON FUNDING ASSISTANCE FOR PROCUREMENT OF EQUIPMENT FOR THE NATIONAL GUARD FOR DRUG INTERDICTION AND COUNTER--DRUG ACTIVITIES. Section 112(a)(3) of title 32, United States Code, is amended by striking ``per purchase order'' in the second sentence and inserting ``per item''. ____ AMENDMENT NO. 416 (Purpose: To require the Secretary of the Army to review the incidence of violations of State and local motor vehicle laws and to submit a report on the review to Congress) On page 357, between lines 11 and 12, insert the following: SEC. 1032. REVIEW OF INCIDENCE OF STATE MOTOR VEHICLE VIOLATIONS BY ARMY PERSONNEL. (a) Review and Report Required.--The Secretary of the Army shall review the incidence of violations of State and local motor vehicle laws applicable to the operation and parking of Army motor vehicles by Army personnel during fiscal year 1999, and, not later than March 31, 2000, submit a report on the results of the review to Congress. (b) Content of Report.--The report under subsection (a) shall include the following: (1) A quantitative description of the extent of the violations described in subsection (a). (2) An estimate of the total amount of the fines that are associated with citations issued for the violations. (3) Any recommendations that the Inspector General considers appropriate to curtail the incidence of the violations. ____ AMENDMENT NO. 417 (Purpose: To substitute for section 654 a repeal of the reduction in military retired pay for civilian employees of the Federal Government) Strike section 654, and insert the following: SEC. 654. REPEAL OF REDUCTION IN RETIRED PAY FOR CIVILIAN EMPLOYEES. (a) Repeal.--(1) Section 5532 of title 5, United States Code, is repealed. (2) The chapter analysis at the beginning of chapter 55 of such title is amended by striking the item relating to section 5532. (b) Effective Date.--The amendments made by subsection (a) shall take effect on the first day of the first month that begins after the date of the enactment of this Act. repeal dual compensation limitations Mr. CRAPO. Mr. President, my amendment is co-sponsored by the Senate Majority Leader, Senator Lott. On February 23, 1999, the Senate voted 87 to 11 in favor of this same amendment during consideration of S. 4. My amendment will repeal the current statute that reduces retirement pay for regular officers of a uniformed service who chose to work for the federal government. The uniformed services include the Army, Navy, Air Force, Marine Corps, Coast Guard, Public Health Service and the National Oceanographic and Atmospheric Agency. If a retired officer from the uniform services comes to work for the Senate, his or her retirement pay is reduced by about 50 percent, after the first $8,000, to offset for payments from the Senate. The retired officer can request a waiver but the executive, legislative and judicial branches of government handle the waiver process differently on a case by case basis. The current dual compensation limitation is also discriminatory in that regular officers are covered but reservists or enlisted personnel are not covered by the limitation. The Congressional Budget Office has recently looked at the current dual compensation limitation and it is estimated that around 6,000 military retirees lose an average of $800 per month because of this prohibition. I have been unable to find one good reason to explain why we should want our law to discourage retired members of the uniformed services from seeking full time employment with the Federal Government. Our laws should not reduce a benefit military retirees have earned because they chose to work for the federal government. My amendment would fix this inequity, it would give retired officers equal pay for equal work from the federal government and it would give the federal government access to a workforce that currently avoids employment with the Federal Government. I am pleased the managers of the bill have agreed to accept my amendment and I thank them for their support for this important amendment. AMENDMENT NO. 418 (Purpose: To establish as a policy of the United States that the United States will seek to establish a multinational economic embargo against any foreign country with which the United States is engaged in armed conflict, and for other purposes) In title X, at the end of subtitle D, add the following: SEC. 1061. MULTINATIONAL ECONOMIC EMBARGOES AGAINST GOVERNMENTS IN ARMED CONFLICT WITH THE UNITED STATES. (a) Policy on the Establishment of Embargoes.-- (1) In general.--It is the policy of the United States, that upon the use of the Armed Forces of the United States to engage in hostilities against any foreign country, the President shall as appropriate-- (A) seek the establishment of a multinational economic embargo against such country; and (B) seek the seizure of its foreign financial assets. (b) Reports.--Not later than 20 days, or earlier than 14 days, after the first day of the engagement of the United States in any armed conflict described in subsection (a), the President shall, if the armed conflict continues, submit a report to Congress setting forth-- (1) the specific steps the United States has taken and will continue to take to institute the embargo and financial asset seizures pursuant to subsection (a); and (2) any foreign sources of trade of revenue that directly or indirectly support the ability of the adversarial government to sustain a military conflict against the Armed Forces of the United States. ____ AMENDMENT NO. 419 (Purpose: To require a report on the Air Force distributed mission training) On page 54, after line 24, insert the following: Subtitle E--Other Matters SEC. 251. REPORT ON AIR FORCE DISTRIBUTED MISSION TRAINING. (a) Requirement.--The Secretary of the Air Force shall submit to Congress, not later than January 31, 2000, a report on the Air Force Distributed Mission Training program. (b) Content of Report.--The report shall include a discussion of the following: (1) The progress that the Air Force has made to demonstrate and prove the Air Force Distributed Mission Training concept of linking geographically separated, high-fidelity simulators to provide a mission rehearsal capability for Air Force units, and any units of any of the other Armed Forces as may be necessary, to train together from their home stations. (2) The actions that have been taken or are planned to be taken within the Department of the Air Force to ensure that-- (A) an independent study of all requirements, technologies, and acquisition strategies essential to the formulation of a sound Distributed Mission Training program is under way; and (B) all Air Force laboratories and other Air Force facilities necessary to the research, development, testing, and evaluation of the Distributed Mission Training program have been assessed regarding the availability of the necessary resources to demonstrate and prove the Air Force Distributed Mission Training concept. ____ AMENDMENT NO. 420 (Purpose: To add test and evaluation laboratories to the pilot program for revitalizing Department of Defense laboratories; and to add an authority for directors of laboratories under the pilot program) On page 48, line 5, after ``laboratory'', insert the following: ``, and the director of one test and evaluation laboratory,''. On page 48, between lines 11 and 12, insert the following: (B) To develop or expand innovative methods of operation that provide more defense research for each dollar of cost, including to carry out such initiatives as focusing on the performance of core functions and adopting more business-like practices. On page 48, line 12, strike ``(B)'' and insert ``(C)''. On page 48, beginning on line 14, strike ``subparagraph (A)'' and insert ``subparagraphs (A) and (B)''. [[Page S6162]] ____ AMENDMENT NO. 421 (Purpose: To authorize land conveyances with respect to the Twin Cities Army Ammunition Plant, Minnesota) On page 453, between lines 10 and 11, insert the following: SEC. 2832. LAND CONVEYANCES, TWIN CITIES ARMY AMMUNITION PLANT, MINNESOTA. (a) Conveyance to City Authorized.--The Secretary of the Army may convey to the City of Arden Hills, Minnesota (in this section referred to as the ``City''), all right, title, and interest of the United States in and to a parcel of real property, including improvements thereon, consisting of approximately 4 acres at the Twin Cities Army Ammunition Plant, for the purpose of permitting the City to construct a city hall complex on the parcel. (b) Conveyance to County Authorized.--The Secretary of the Army may convey to Ramsey County, Minnesota (in this section referred to as the ``County''), all right, title, and interest of the United States in and to a parcel of real property, including improvements thereon, consisting of approximately 35 acres at the Twin Cities Army Ammunition Plant, for the purpose of permitting the County to construct a maintenance facility on the parcel. (c) Consideration.--As a consideration for the conveyances under this section, the City shall make the city hall complex available for use by the Minnesota National Guard for public meetings, and the County shall make the maintenance facility available for use by the Minnesota National Guard, as detailed in agreements entered into between the City, County, and the Commanding General of the Minnesota National Guard. Use of the city hall complex and maintenance facility by the Minnesota National Guard shall be without cost to the Minnesota National Guard. (d) Description of Property.--The exact acreage and legal description of the real property to be conveyed under this section shall be determined by surveys satisfactory to the Secretary. The cost of the survey shall be borne by the recipient of the real property. (e) Additional Terms and Conditions.--The Secretary may require such additional terms and conditions in connection with the conveyances under this section as the Secretary considers appropriate to protect the interests of the United States. ____ AMENDMENT NO. 422 (Purpose: To require a land conveyance, Naval Training Center, Orlando, Florida) On page 459, between lines 17 and 18, insert the following: SEC. 2844. LAND CONVEYANCE, NAVAL TRAINING CENTER, ORLANDO, FLORIDA. (a) Conveyance Required.--The Secretary of the Navy shall convey all right, title, and interest of the United States in and to the land comprising the main base portion of the Naval Training Center and the McCoy Annex Areas, Orlando, Florida, to the City of Orlando, Florida, in accordance with the terms and conditions set forth in the Memorandum of Agreement by and between the United States of America and the City of Orlando for the Economic Development Conveyance of Property on the Main Base and McCoy Annex Areas of the Naval Training Center, Orlando, executed by the Parties on December 9, 1997, as amended. ____ amendment no. 423 (Purpose: To modify the conditions for issuing obsolete or condemned rifles of the Army and blank ammunition without charge) In title X, at the end of subtitle D, add the following: SEC. 1061. CONDITIONS FOR LENDING OBSOLETE OR CONDEMNED RIFLES FOR FUNERAL CEREMONIES. Section 4683(a)(2) of title 10, United States Code, is amended to read as follows: ``(2) issue and deliver those rifles, together with blank ammunition, to those units without charge if the rifles and ammunition are to be used for ceremonies and funerals in honor of veterans at national or other cemeteries.''. ____ amendment no. 424 (Purpose: To authorize use of Navy procurement funds for advance procurement for the Arleigh Burke class destroyer program) On page 25, between lines 17 and 18, insert the following: (c) Other Funds for Advance Procurement.--Notwithstanding any other provision of this Act, of the funds authorized to be appropriated under section 102(a) for procurement programs, projects, and activities of the Navy, up to $190,000,000 may be made available, as the Secretary of the Navy may direct, for advance procurement for the Arleigh Burke class destroyer program. Authority to make transfers under this subsection is in addition to the transfer authority provided in section 1001. ____ amendment no. 425 (Purpose: To set aside funds for the procurementof the MLRS rocket inventory and reuse model) In title I, at the end of subtitle B, add the following: SEC. 114. MULTIPLE LAUNCH ROCKET SYSTEM. Of the funds authorized to be appropriated under section 101(2), $500,000 may be made available to complete the development of reuse and demilitarization tools and technologies for use in the disposition of Army MLRS inventory. ____ amendment no. 426 (Purpose: To expand the entities eligible to participate in alternative authority for acquisition and improvement of military housing) On page 440, between lines 6 and 7, insert the following: SEC. 2807. EXPANSION OF ENTITIES ELIGIBLE TO PARTICIPATE IN ALTERNATIVE AUTHORITY FOR ACQUISITION AND IMPROVEMENT OF MILITARY HOUSING. (a) Definition of Eligible Entity.--Section 2871 of title 10, United States Code, is amended-- (1) by redesignating paragraphs (5) through (7) as paragraphs (6) through (8) respectively; and (2) by inserting after paragraph (4) the following new paragraph (5): ``(5) The term `eligible entity' means any individual, corporation, firm, partnership, company, State or local government, or housing authority of a State or local government.''. (b) General Authority.--Section 2872 of such title is amended by striking ``private persons'' and inserting ``eligible entities''. (c) Direct Loans and Loan Guarantees.--Section 2873 of such title is amended-- (1) in subsection (a)(1)-- (A) by striking ``persons in private sector'' and inserting ``an eligible entity''; and (B) by striking ``such persons'' and inserting ``the eligible entity''; and (2) in subsection (b)(1)-- (A) by striking ``any person in the private sector'' and inserting ``an eligible entity''; and (B) by striking ``the person'' and inserting ``the eligible entity''. (d) Investments.--Section 2875 of such title is amended-- (1) in subsection (a), by striking ``nongovernmental entities'' and inserting ``an eligible entity''; (2) in subsection (c)-- (A) by striking ``a nongovernmental entity'' both places it appears and inserting ``an eligible entity''; and (B) by striking ``the entity'' each place it appears and inserting ``the eligible entity''; (3) in subsection (d), by striking ``nongovernmental'' and inserting ``eligible''; and (4) in subsection (e), by striking ``a nongovernmental entity'' and inserting ``an eligible entity''. (e) Rental Guarantees.--Section 2876 of such title is amended by striking ``private persons'' and inserting ``eligible entities''. (f) Differential Lease Payments.--Section 2877 of such title is amended by striking ``private''. (g) Conveyance or Lease of Existing Property and Facilities.--Section 2878(a) of such title is amended by striking ``private persons'' and inserting ``eligible entities''. (h) Clerical Amendments.--(1) The heading of section 2875 of such title is amended to read as follows: ``Sec. 2875. Investments''. (2) The table of sections at the beginning of subchapter IV of chapter 169 of such title is amended by striking the item relating to section 2875 and inserting the following new item: ``2875. Investments.''. ____ amendment no. 427 (Purpose: To authorize medical and dental care for certain members of the Armed Forces incurring injuries on inactive-duty training) On page 272, between lines 8 and 9, insert the following: SEC. 717. MEDICAL AND DENTAL CARE FOR CERTAIN MEMBERS INCURRING INJURIES ON INACTIVE-DUTY TRAINING. (a) Order to Active Duty Authorized.--(1) Chapter 1209 of title 10, United States Code, is amended by adding at the end the following: ``Sec. 12322. Active duty for health care ``A member of a uniformed service described in paragraph (1)(B) or (2)(B) of section 1074a(a) of this title may be ordered to active duty, and a member of a uniformed service described in paragraph (1)(A) or (2)(A) of such section may be continued on active duty, for a period of more than 30 days while the member is being treated for (or recovering from) an injury, illness, or disease incurred or aggravated in the line of duty as described in such paragraph.''. (2) The table of sections at the beginning of such chapter is amended by adding at the end the following: ``12322. Active duty for health care.''. (b) Medical and Dental Care for Members.--Subsection (e) of section 1074a of such title is amended to read as follows: ``(e)(1) A member of a uniformed service on active duty for health care or recuperation reasons, as described in paragraph (2), is entitled to medical and dental care on the same basis and to the same extent as members covered by section 1074(a) of this title while the member remains on active duty. ``(2) Paragraph (1) applies to a member described in paragraph (1) or (2) of subsection (a) who, while being treated for (or recovering from) an injury, illness, or disease incurred or aggravated in the line of duty, is continued on active duty pursuant to a modification or extension of orders, or is ordered to active duty, so as to result in active duty for a period of more than 30 days.''. (c) Medical and Dental Care for Dependents.--Subparagraph (D) of section 1076(a)(2) of such title is amended to read as follows: [[Page S6163]] ``(D) A member on active duty who is entitled to benefits under subsection (e) of section 1074a of this title by reason of paragraph (1), (2), or (3) of subsection (a) of such section.''. Mr. CLELAND. Mr. President, I am pleased to offer this amendment to S. 1059, The National Defense Authorization Act for Fiscal Year 2000, which seeks to protect the men and women of our reserve military components. The 1998 National Defense Authorization Act provided health care coverage for Reservists and Guardsmen incurring injury, illness or disease while performing duty in an active-duty status. However, it overlooked those servicemen and women performing duty in ``inactive duty'' status, which is the status they are in while performing their monthly ``drill weekends.'' This problem was dramatically illustrated recently when an Air Force Reserve C-130 crashed in Honduras, killing three crewmembers. One of the survivors was unable to work for over a year due to the serious nature of his injuries. While he was reimbursed for lost earnings, this serviceman was only eligible for military medical care related to injuries sustained in the crash. His family lost their civilian health insurance and was ineligible to receive medical from the military. Had he been on military orders of more than 30 days, both he and his family would have been eligible for full military medical benefits for the duration of his recovery. My dear colleagues, this is unacceptable. We must plug this loophole so that these tragic circumstances are not repeated. Why is it so important that we look out for our Guardsmen and Reservists? It is because our military services have been reduced by one-third, while worldwide commitments have increased fourfold, leading to a dramatic increase in the dependence on our reserve components to meet our worldwide commitments. Like their active duty counterparts, they are dealing with the demands of a high operations tempo; yet they must meet the additional challenge of balancing their military duty with their civilian employment. Members of the Guard and Reserve have been participating at record levels. Nearly 270,000 Reservists and Guardsmen were mobilized during Operations Desert Shield and Desert Storm. Over 17,000 Reservists and Guardsmen have answered the Nation's call to bring peace to Bosnia. And, recently, over 4,000 Reservists and Guardsmen have been called up to support current operations in Kosovo. The days of the ``weekend warrior'' are long gone. In addition to significant contributions to military operations, members of the reserve components have delivered millions of pounds of humanitarian cargo to all corners of the globe. Closer to home, they have responded to numerous state emergencies, such as the devastating floods that struck in America's heartland last year. The men and women of the Reserve Components are on duty all over the world, every day of the year. Considering everything our citizen soldiers, sailors, airmen and marines have done for us, we must not turn our backs on them and their families in their times of need. Please join me in supporting this amendment providing for those who provide for us. amendment no. 428 (Purpose: To refine and extend Federal acquisition streamlining) At the end of title VIII, add the following: SEC. 807. STREAMLINED APPLICABILITY OF COST ACCOUNTING STANDARDS. (a) Applicability.--Paragraph (2) of section 26(f) of the Office of Federal Procurement Policy Act (41 U.S.C. 422(f)(2)) is amended-- (1) by redesignating subparagraph (C) as subparagraph (D); (2) by striking subparagraph (B) and inserting the following: ``(B) The cost accounting standards shall not apply to a contractor or subcontractor for a fiscal year (or other one- year period used for cost accounting by the contractor or subcontractor) if the total value of all of the contracts and subcontracts covered by the cost accounting standards that were entered into by the contractor or subcontractor, respectively, in the previous or current fiscal year (or other one-year cost accounting period) was less than $50,000,000. ``(C) Subparagraph (A) does not apply to the following contracts or subcontracts for the purpose of determining whether the contractor or subcontractor is subject to the cost accounting standards: ``(i) Contracts or subcontracts for the acquisition of commercial items. ``(ii) Contracts or subcontracts where the price negotiated is based on prices set by law or regulation. ``(iii) Firm, fixed-price contracts or subcontracts awarded on the basis of adequate price competition without submission of certified cost or pricing data. ``(iv) Contracts or subcontracts with a value that is less than $5,000,000.''. (b) Waiver.--Such section is further amended by adding at the end the following: ``(5)(A) The head of an executive agency may waive the applicability of cost accounting standards for a contract or subcontract with a value less than $10,000,000 if that official determines in writing that-- ``(i) the contractor or subcontractor is primarily engaged in the sale of commercial items; and ``(ii) the contractor or subcontractor would not otherwise be subject to the cost accounting standards. ``(B) The head of an executive agency may also waive the applicability of cost accounting standards for a contract or subcontract under extraordinary circumstances when necessary to meet the needs of the agency. A determination to waive the applicability of cost accounting standards under this subparagraph shall be set forth in writing and shall include a statement of the circumstances justifying the waiver. ``(C) The head of an executive agency may not delegate the authority under subparagraph (A) or (B) to any official in the executive agency below the senior policymaking level in the executive agency. ``(D) The Federal Acquisition Regulation shall include the following: ``(i) Criteria for selecting an official to be delegated authority to grant waivers under subparagraph (A) or (B). ``(ii) The specific circumstances under which such a waiver may be granted. ``(E) The head of each executive agency shall report the waivers granted under subparagraphs (A) and (B) for that agency to the Board on an annual basis.''. (c) Construction Regarding Certain Not-For-Profit Entities.--The amendments made by this section shall not be construed as modifying or superseding, nor as intended to impair or restrict, the applicability of the cost accounting standards to-- (1) any educational institution or federally funded research and development center that is associated with an educational institution in accordance with Office of Management and Budget Circular A-21, as in effect on January 1, 1999; or (2) any contract with a nonprofit entity that provides research and development and related products or services to the Department of Defense. SEC. 808. GUIDANCE ON USE OF TASK ORDER AND DELIVERY ORDER CONTRACTS. (a) Guidance in the Federal Acquisition Regulation.--Not later than 180 days after the date of the enactment of this Act, the Federal Acquisition Regulation issued in accordance with sections 6 and 25 of the Office of Federal Procurement Policy Act shall be revised to provide guidance to agencies on the appropriate use of task order and delivery order contracts in accordance with sections 2304a through 2304d of title 10, United States Code, and sections 303H through 303K of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 253h through 253k). (b) Content of Guidance.--The regulations issued pursuant to subsection (a) shall, at a minimum, provide the following: (1) Specific guidance on the appropriate use of government- wide and other multiagency contracts entered in accordance with the provisions of law referred to in that subsection. (2) Specific guidance on steps that agencies should take in entering and administering multiple award task order and delivery order contracts to ensure compliance with-- (A) the requirement in section 5122 of the Clinger-Cohen Act (40 U.S.C. 1422) for capital planning and investment control in purchases of information technology products and services; (B) the requirement in section 2304c(b) of title 10, United States Code, and section 303J(b) of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 253j(b)) to ensure that all contractors are afforded a fair opportunity to be considered for the award of task orders and delivery orders; and (C) the requirement in section 2304c(c) of title 10, United States Code, and section 303J(c) of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 253j(c)) for a statement of work in each task order or delivery order issued that clearly specifies all tasks to be performed or property to be delivery under the order. (c) GSA Federal Supply Schedules Program.--The Administrator for Federal Procurement Policy shall consult with the Administrator of General Services to assess the effectiveness of the multiple awards schedule program of the General Services Administration referred to in section 309(b)(3) of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 259(b)(3)) that is administered as the Federal Supply Schedules program. The assessment shall include examination of the following: (1) The administration of the program by the Administrator of General Services. (2) The ordering and program practices followed by Federal customer agencies in using schedules established under the program. (d) GAO Report.--Not later than one year after the date on which the regulations required by subsection (a) are published in the [[Page S6164]] Federal Register, the Comptroller General shall submit to Congress an evaluation of executive agency compliance with the regulations, together with any recommendations that the Comptroller General considers appropriate. SEC. 809. CLARIFICATION OF DEFINITION OF COMMERCIAL ITEMS WITH RESPECT TO ASSOCIATED SERVICES. Section 4(12) (E) of the Office of Federal Procurement Policy Act (41 U.S.C. 403(E)) is amended to read as follows: ``(E) Installation services, maintenance services, repair services, training services, and other services if-- ``(i) the services are procured for support of an item referred to in subparagraph (A), (B), (C), or (D), regardless of whether such services are provided by the same source or at the same time as the item; and ``(ii) the source of the services provides similar services contemporaneously to the general public under terms and conditions similar to those offered to the Federal Government.''. SEC. 810. USE OF SPECIAL SIMPLIFIED PROCEDURES FOR PURCHASES OF COMMERCIAL ITEMS IN EXCESS OF THE SIMPLIFIED ACQUISITION THRESHOLD. (a) Extension of Authority.--Section 4202(e) of the Clinger-Cohen Act of 1996 (divisions D and E of Public Law 104-106; 110 Stat. 654; 10 U.S.C. 2304 note) is amended by striking ``three years after the date on which such amendments take effect pursuant to section 4401(b)'' and inserting ``January 1, 2002''. (b) GAO Report.--Not later than March 1, 2001, the Comptroller General shall submit to Congress an evaluation of the test program authorized by section 4204 of the Clinger- Cohen Act of 1996, together with any recommendations that the Comptroller General considers appropriate regarding the test program or the use of special simplified procedures for purchases of commercial items in excess of the simplified acquisition threshold. SEC. 811. EXTENSION OF INTERIM REPORTING RULE FOR CERTAIN PROCUREMENTS LESS THAN $100,000. Section 31(e) of the Office of Federal Procurement Policy Act (41 U.S.C. 427(e)) is amended by striking ``October 1, 1999'' and inserting ``October 1, 2004''. Mr. THOMPSON. Mr. President, I offer this amendment on behalf of myself as chairman of the Governmental Affairs Committee and Senator Lieberman, the Committee's ranking minority member, and Senators Warner and Levin, the chairman and ranking minority member of the Armed Services Committee. Senator Lieberman and I thank the Armed Services chairman and ranking member for their cooperation and assistance in preparing this amendment which will benefit not only the procurement process within the Department of Defense, but other agencies across the Federal government as well. The amendment which we offer today began as a request from the Administration and others to include additional procurement-related reforms to those enacted over the past several years and those already included in S. 1059. Our amendment includes five provisions, as follows: (1) Streamlined Applicability of Cost Accounting Standards; (2) Task Order and Delivery Order Contracts; (3) Clarification to the Definition of Commercial Items; (4) Two-year Extension of Commercial Items Test Program; and (5) Extension of Interim Reporting Rule on Contracts with Small Business. I ask unanimous consent that a joint statement of sponsors explaining the amendment be placed in the Record immediately following my statement. This statement represents the consensus view of the sponsors as to the meaning and intent of the amendment. There being no objection, the statement was ordered to be printed in the Record, as follows: Joint Statement of Sponsors 1. Streamlined Applicability of Cost Accounting Standards In recent years, Congress has enacted two major acquisition reform statutes--the Federal Acquisition Streamlining Act of 1994 (FASA) and the Clinger-Cohen Act of 1996. These statutes changed the trend in government contracting toward simplifying the government's acquisition process and eliminating many government-unique requirements. The goal of these changes in the government's purchasing processes has been to modify or eliminate unnecessary and burdensome legislative mandates, increase the use of commercial items to meet government needs, and give more discretion to contracting agencies in making their procurement decisions. Since the early 1900's, the Federal government has required certain unique accounting standards or criteria designed to protect it from the risk of overpaying for goods and services by directing the manner or degree to which Federal contractors apportion costs to their contracts with the government. The Cost Accounting Standards (CAS standards) are a set of 19 accounting principles developed and maintained by the Cost Accounting Standards (CAS) Board, a body created by Congress to develop uniform and consistent standards. The CAS standards require government contractors to account for their costs on a consistent basis and prohibit any shifting of overhead or other costs from commercial contacts to government contracts, or from fixed-priced contracts to cost- type contracts. FASA and the Clinger-Cohen Act took significant steps to exempt commercial items from the applicability of the CAS standards. Nonetheless, the Department of Defense and others in the public and private sectors continue to identify the CAS standards as a continuing barrier to the integration of commercial items into the government marketplace. Advocates of relaxing the CAS standards argue that they require companies to create unique accounting systems to do business with the government in cost-type contracts. They believe that the added cost of developing the required accounting systems has discouraged some commercial companies from doing business with the government and led others to set up separate assembly lines for government products, substantially increasing costs to the government. This provision carefully balances the government's need for greater access to commercial items, particularly those of nontraditional suppliers, with the need for a strong set of CAS standards to protect the taxpayers from overpayments to contractors. The provision would modify the CAS standards to streamline their applicability, while maintaining the applicability of the standards to the vast majority of contract dollars that are currently covered. In particular, the provision would raise the threshold for coverage under the CAS standards from $25 million to $50 million; exempt contractors from coverage if they do not have a contract in excess of $5 million; and exclude coverage based on firm, fixed price contracts awarded on the basis of adequate price competition without the submission of certified cost or pricing data. The provision also would provide for waivers of the CAS standards by Federal agencies in limited circumstances. This would allow contracting agencies to handle this contract administration function, in limited circumstances, as part of their traditional role in administering contracts. The sponsors note that waivers would be available for contracts in excess of $10 million only in ``exceptional circumstances.'' The ``exceptional circumstances'' waiver may be used only when a waiver is necessary to meet the needs of an agency, and i.e., the agency determines that it would not be able to obtain the products or services in the absence of a waiver. 2. task order and delivery order contracts FASA authorized Federal agencies to enter into multiple award task and delivery order contracts for the procurement of goods and services. Multiple award contracts occur when two or more contracts are awarded from one solicitation. Multiple award contracting allows the government to procure products and services more quickly using streamlined acquisition procedures while taking advantage of competition to obtain optimum prices and quality on individual task orders or delivery orders. FASA requires orders under multiple-award contracts to contain a clear description of the services or supplies ordered and--except under specified circumstances--requires that each of the multiple vendors be provided a fair opportunity to be considered for specific orders. Concerns have been raised that the simplicity of these multiple-award contracts has brought with it the potential for abuse. The General Accounting Office and the Department of Defense Inspector General have reported that agencies have routinely failed to comply with the basic requirements of FASA, including the requirement to provide vendors a fair opportunity to be considered for specific orders. While performance guidance was established by the Office of Federal Procurement Policy (OFPP) in 1996, the regulations implementing FASA do not establish any specific procedures for awarding orders or any specific safeguards to ensure compliance with competition requirements. This provision would require that the Federal Acquisition Regulation provide the necessary guidance on the appropriate use of task and delivery order contracts as authorized by FASA. It also would require that the Administrator of OFPP work with the Administrator of the General Services Administration (GSA) to review the ordering procedures and practices of the Federal Supply Schedule program administered by GSA. This review should include an assessment as to whether the GSA program should be modified to provide consistency with the regulations for task order and delivery order contracts required by this provision. 3. clarification to the definition of commercial items FASA included a broad new definition of ``commercial items,'' designed to give the Federal government greater access to previously unavailable advanced commercial products and technologies. However, the FASA definition of commercial items included only a limited definition of commercial services. Under FASA, commercial items include services purchased to support a commercial product as a commercial service. This language has been interpreted by some to mean that these ancillary services must be procured at the same time or from [[Page S6165]] the same vendor as the commercial item the service is intended to support. This provision would clarify that services ancillary to a commercial item, such as installation, maintenance, repair, training, and other support services, would be considered a commercial service regardless of whether the service is provided by the same vendor or at the same time as the item if the service is provided contemporaneously to the general public under similar terms and conditions. 4. two-year extension of commercial items test program Section 4202 of the Clinger-Cohen Act of 1996 provided the authority for Federal agencies to use special simplified procedures to purchases for amounts greater than $100,000 but not greater than $5 million if the agency reasonably expects that the offers will include only commercial items. The purpose of this test program was to give agencies additional procedural discretion and flexibility so that purchases of commercial items in this dollar range could be solicited, offered, evaluated, and awarded in a simplified manner that maximizes efficiency and economy and minimizes paperwork burden and administration costs for both government and industry. Authority to use this test program expires on January 1, 2000. The Administration has reported that, due to delays in implementing the test program, the data available from the test program is insufficient to assess the effectiveness of the test, and additional data is required to determine whether this authority should be made permanent. This provision would extend the authority to January 1, 2002. The provision also requires the Comptroller General to report to Congress on the impact of the provision. The sponsors note that the shortened notice period authorized under the test program may have a different impact on competition, depending on the complexity of the commercial items to be procured. For this reason, the sponsors expect the Comptroller General's report to address the extent to which the test authority has been used, the types of commercial items procured under the test program, and the impact of the test program on competition for agency contracts and on the small business share of such contracts. The Comptroller General's report also should assess the extent to which the test program has streamlined the procurement process. 5. extension of interim reporting rule on contracts with small business Section 31(f) of the OFPP Act, as amended by FASA, requires detailed reporting of contract activity between $25,000 and $100,000 in the Federal Procurement Data System (FPDS). This requirement gives the government the ability to track the impact of acquisition reform on the share of contracts in this dollar range that are awarded to small businesses, small disadvantaged businesses and woman-owned small businesses. It also enables the government to track progress and compliance on a variety of Federal procurement programs, such as Small Business Competitiveness Demonstration Program, the Small Disadvantaged Business Reform Program, the HUDBZone Small Business Program, and the IRS Offset Program. Under FASA, this provision is scheduled to expire on October 1, 1999, so that after that date agencies would only be required to report summary data for procurements below $100,000. Because the implementation of acquisition reform measures is ongoing and information on the impact of those measures on small business is important both to Congress and the executive branch, this provision would extend the current reporting requirement until October 1, 2004, as requested by the Administration. amendment no. 429 (Purpose: To authorize an additional $21,700,000 for research, development, test, and evaluation for the Army for the Force XXI Battle Command, Brigade and Below (FBCB2) (PE0203759A), and to offset the additional amount by decreasing by $21,700,000 the authorization for other procurement for the Army for the Maneuver Control System (MCS) On page 17, line 1, strike ``$3,669,070,000'' and insert ``$3,647,370,000''. On page 29, line 10, strike, $4,671,194,000'' and insert ``$4,692,894,000''. ____ amendment no. 430 (Purpose: To improve financial management and accountability in the Department of Defense) On page 321, line 18, strike out ``and''. On page 321, after line 24, insert the following: (iv) obligations and expenditures are recorded contemporaneously with each transaction; (v) organizational and functional duties are performed separately at each step in the cycles of transactions (including, in the case of a contract, the specification of requirements, the formation of the contract, the certification of contract performance, receiving and warehousing, accounting, and disbursing); and (vi) use of progress payment allocation systems results in posting of payments to appropriation accounts consistent with section 1301 of title 31, United States Code. On page 322, line 4, insert before the semicolon the following: ``that, at a minimum, uses double-entry bookkeeping and complies with the United States Government Standard General Ledger at the transaction level as required under section 803(a) of the Federal Financial Management Improvement Act of 1996 (31 U.S.C. 3512 note)''. On page 322, between lines 17 and 18, insert the following: (5) An internal controls checklist which, consistent with the authority in sections 3511 and 3512 of title 31, United States Code, the Comptroller General shall prescribe as the standards for use throughout the Department of Defense, together with a statement of the Department of Defense policy on use of the checklist throughout the department. On page 323, line 14, before the period insert ``or the certified date of receipt of the items''. On page 324, between the matter following line 20 and the matter on line 21, insert the following: (c) Study and Report on Department of Defense Electronic Fund Transfers.--(1) Subject to paragraph (3), the Secretary of Defense shall conduct a feasibility study to determine-- (A) whether all electronic payments issued by the Department of Defense should be routed through the Regional Finance Centers of the Department of the Treasury for verification and reconciliation; (B) whether all electronic payments made by the Department of Defense should be subjected to the same level of reconciliation as United States Treasury checks, including matching each payment issued with each corresponding deposit at financial institutions; (C) whether the appropriate computer security controls are in place in order to ensure the integrity of electronic payments; (D) the estimated costs of implementing the processes and controls described in subparagraphs (A), (B), (C); and (E) the period that would be required to implement the processes and controls. (2) Not later than March 1, 2000, the Secretary of Defense shall submit a report to Congress containing the results of the study required by paragraph (1). (3) In this subsection, the term ``electronic payment'' means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, which is initiated through an electronic terminal, telephonic instrument, or computer or magnetic tape so as to order, instruct, or authorize a debit or credit to a financial account. On page 329, after line 25, insert the following: SEC. 1009. RESPONSIBILITIES AND ACCOUNTABILITY FOR FINANCIAL MANAGEMENT. (a) Under Secretary of Defense (Comptroller).--(1) Section 135 of title 10, United States Code, is amended-- (A) by redesignating subsections (d) and (e) as subsections (e) and (f), respectively; and (B) by inserting after subsection (c) the following: ``(d)(1) The Under Secretary is responsible for ensuring that the financial statements of the Department of Defense are in a condition to receive an unqualified audit opinion and that such an opinion is obtained for the statements. ``(2) If the Under Secretary delegates the authority to perform a duty, including any duty relating to disbursement or accounting, to another officer, employee, or entity of the United States, the Under Secretary continues after the delegation to be responsible and accountable for the activity, operation, or performance of a system covered by the delegated authority.''. (2) Subsection (c)(1) of such section is amended by inserting ``and to ensure accountability to the citizens of the United States, Congress, the President, and managers within the Department of Defense'' before the semicolon at the end. (b) Management of Credit Cards.--(1) The Under Secretary of Defense (Comptroller) shall prescribe regulations governing the use and control of all credit cards and convenience checks that are issued to Department of Defense personnel for official use. The regulations shall be consistent with regulations that apply government-wide regarding use of credit cards by Federal Government personnel for official purposes. (2) The regulations shall include safeguards and internal controls to ensure the following: (A) There is a record of all credited card holders that is annotated with the limitations on amounts that are applicable to the use of each card by each credit card holder. (B) The credit card holders and authorizing officials are responsible for reconciling the charges appearing on each statement of account with receipts and other supporting documentation and for forwarding reconciled statements to the designated disbursing office in a timely manner. (C) Disputes and discrepancies are resolved in the manner prescribed in the applicable Governmentwide credit card