Senator Carl Levin (D-MI), Chairman of the Senate Armed Services Committee, announced today that the Committee completed its markup of the National Defense Authorization bill for Fiscal Year 2003. The bill, which authorizes funding for the Department of Defense and the national security programs of the Department of Energy, was approved by the Committee on a bipartisan vote of 17-8.

"The committee has produced a strong, balanced bill that authorized $393.4 billion for national security activities to help ensure that our military is prepared to face the challenges of the 21st Century," Senator Levin said.

"The events following September 11, 2001 have once again shown that the U.S. military is the most capable fighting force in the world. Today, America's Armed Forces are ready to help keep the peace, deter traditional and nontraditional threats to our security and our vital interests around the world, and win any conflict decisively. This bill builds on the considerable strengths of our military forces and their record of success by preserving a high quality of life for U.S. forces and their families, sustaining readiness, and transforming the Armed Forces to meet the threats and challenges of tomorrow."

"This bill meets the five objectives that I established for this year's markup. It will:

• continue the improvements in the compensation and quality of life of the men and women in the Armed Forces, retirees and their families;

• sustain the readiness of the military services to conduct the full range of their assigned missions, including current and future operations against international terrorism;

• improve the efficiency of Defense Department programs and operations and apply the savings toward high-priority programs;

• improve the ability of the Armed Forces to meet nontraditional threats, including terrorism and weapons of mass destruction; and

• promote the transformation of the Armed Forces to meet the threats of the 21st century."

Continuing the improvements in the compensation and quality of life of the men and women in the Armed Forces, retirees and their families

The bill reflects the committee's highest priority – ensuring that our men and women in uniform, retirees and their families receive the compensation and quality of life they deserve. The committee:

• approved a 4.1 percent across-the-board pay raise for all military personnel, with an additional targeted pay raise for the mid-career force;

• added $640 million above the budget request to improve and replace facilities on military installations;

• approved a provision that would begin to address a longstanding inequity in the compensation of military retirees by authorizing the concurrent receipt of retired pay and veterans' disability compensation for military retirees eligible for non-disability retirement with disabilities rated at 60% or more;

• approved a separate Committee amendment to be offered during the full Senate's consideration of the bill that would authorize concurrent receipt of retired pay and veterans' disability compensation for all disabled military retirees eligible for non-disability retirement; and

• approved a provision that would authorize a new assignment incentive pay of up to $1,500 per month to reward military members who agree to serve in difficult-to-fill assignments.

The committee recommendations take an important step to ensure the readiness of our military forces by setting aside $10.0 billion, as requested by the Administration, to fund ongoing operations in the war against international terrorism during fiscal year 2003. These funds would be available only after a request by the President and passage of a subsequent appropriation act by the Congress.

The committee recommendations would also add funding above the budget request to address shortfalls in a number of key readiness accounts and help lessen the burden on some of the Department's high demand, low density assets. These funding increases include:

• $126.0 million to protect and enhance military training ranges;

• $231.6 million for aircraft, ship, and Navy gun depot maintenance;

• $176.2 million for improvements to Air Force and Army facilities;

• $51.0 million for ammunition to meet new training requirements and supplement war reserve stocks;

• $55.0 million to address the Army's aviation training backlog;

• $110.0 million for the purchase of an additional EC-130J Commando Solo aircraft; and

• $114.0 million for modifications to help improve the readiness of the EA-6B electronic warfare aircraft fleet.

A year ago, Secretary of Defense Rumsfeld testified that: "We have an obligation to taxpayers to spend their money wisely. Today we're not doing that." The committee approved a number of provisions to address this problem. These include:

• a reallocation of $812 million from not adequately justified and duplicative missile defense expenditures to higher priority areas. In particular, the committee transferred $690 million from missile defense activities to fund advance procurement of a second Virginia-class submarine as soon as FY2005 ($415 million); advance procurement for future LPD-17 amphibious transport docks ($150 million); and advance procurement for future DDG-51 Arleigh Burke-class destroyers ($125 million).

• a major initiative based on a recommendation by the DOD Director of Operational Test and Evaluation to address budget shortfalls and organizational problems in the Department's test and evaluation infrastructure that have led to inadequate testing of major weapons systems;

• a continuation of last year's initiative to improve the way in which the DOD manages its $50 billion of services contracts, with resulting savings of $850 million;

• a provision that would address DOD's inability to produce reliable financial information and achieve $400 million of savings by deferring spending on new financial systems that would be inconsistent with the comprehensive financial management enterprise architecture currently being developed by the Department; and

• a provision requiring the DOD to establish new internal controls to address recurring problems with the abuse of purchase cards and travel cards by military and civilian personnel.

The committee recommendations would take a significant step toward addressing nontraditional threats by providing in excess of $10.0 billion for combating terrorism initiatives, as requested by the Department. In addition, the committee recommendations include:

• an increase of $199.7 million to enhance the security of our nuclear materials and nuclear weapons at Department of Energy facilities;

• an increase of $42.7 million in funding for the U.S. Special Operations Command;

• an increase of $30.5 million for defense against chemical and biological weapons and other efforts to combat weapons of mass destruction (WMD);

• approving the request of over $2 billion for force protection improvements to DOD installations around the world;

• a legislative provision that would require the Department of Defense to take a more comprehensive approach to installation preparedness for WMD attacks; and

• a new initiative authorizing the Secretary of Defense to expand the activities of the Cooperative Threat Reduction program beyond the countries of the former Soviet Union.

The committee continued its effort to promote the transformation of the Armed Forces to meet the threats of the 21st century. The committee recommendations would:

• add more than $1.1 billion to the Navy's shipbuilding accounts to refuel a nuclear submarine and pay for additional advance procurement of an aircraft carrier, a Virginia-class submarine, a DDG-51 class destroyer, and an LPD-17 class amphibious transport dock;

• promote the transformation of the Army by adding $105.0 million of funding for research and development on the Army Future Combat System, and adding more than $100.0 million for science and technology needed to help the Army achieve its Objective Force;

• advance the transformation of the Air Force by fully funding the $5.2 billion requested by the Department for the F-22, the $3.5 billion requested for continued research and development on the Joint Strike Fighter, and more than $600 million requested for Air Force unmanned aerial vehicles;

• add more than $300.0 million to the Department's science and technology budget, bringing the Department closer to the Secretary's goal of devoting 3 percent of all defense funds to the programs that promise to bring us the revolutionary technologies that will be needed to prevail in future conflicts; and

• establish a technology transition initiative to ensure that new technologies developed in the Department's science and technology programs are rapidly fielded in weapons systems for our warfighters.

Under the leadership of the Chairman, Senator Max Cleland (D-GA) and Ranking Member, Senator Tim Hutchinson (R-AR), the Personnel Subcommittee focused on continuing the improvements in the compensation and quality of life of the men and women in the armed forces, retirees, and their families. The committee:

• for the fourth year in a row, approved a significant military pay raise above the rate of inflation. Authorized an across-the-board pay raise of 4.1%, and an additional targeted pay raise for mid-career personnel that will result in pay raises ranging from 5.5% to 6.5%;

• authorized a National Call to Service enlistment program designed to attract volunteers who prefer a shorter term of active duty - 15 months after completion of initial entry training - followed by a service commitment in the reserves or civilian national service programs. Participants would be offered a choice of incentives at the end of their active duty service: a $5000 bonus, educational assistance, or repayment of a student loan;

• authorized a new Assignment Incentive Pay of up to $1500 per month to encourage service members to volunteer for hard-to-fill assignments;

• authorized phased in concurrent receipt of retired pay and veterans' disability compensation military retirees eligible for non-disability retirement who have disabilities rated at 60% or more;

• approved a Committee amendment that will be offered during the full Senate's consideration of the bill that will authorize concurrent receipt of retired pay and veterans' disability compensation for all disabled military retirees eligible for non-disability retirement;

• authorized an increase in the housing allowance that will reduce average out-of-pocket expenses for off-post housing to 7.5 percent in 2002, continuing progress toward the goal of eliminating average out-of pocket housing expenses by 2005;

• directed the Secretary of Defense to carry out a quadrennial review of the quality of life of members of the Armed Forces;

• required issuance of the Korea Defense Service Medal to individuals who served in the Republic of Korea or the adjacent waters between July 27, 1954 and a date determined by the Secretary of Defense;

• directed the Secretary of Defense to review personnel compensation laws and policies, including the Reserve retirement system, to determine how well they address the needs of Guard and Reserve personnel; and

• provided $35 million for impact aid, including $30 million for assistance to local educational agencies and an additional $5 million for assistance to local educational agencies serving children with severe disabilities.

Subcommittee Chairman Senator Daniel K. Akaka (D-HI) and Ranking Member Senator James M. Inhofe (R-OK) focused the subcommittee's efforts on supporting the readiness of U.S. military forces, improving the quality of the facilities in which our personnel live and work, and increasing the efficiency of Department of Defense operations to free up resources for higher priority defense needs.

The committee supported the administration's request to provide $10.0 billion for the fiscal year 2003 operating costs of the ongoing war on terrorism, and authorized these contingency funds once the President submits a request for specific uses of these funds to Congress.

The committee provided both funding increases and new legislative authority to help ensure that military units remain highly trained. The committee:

• added $126.0 million for range enhancements, including $106.0 million for improvements to Army, Navy, Marine Corps and Air Force ranges and for range management; and

• authorized the two provisions of DOD's Readiness and Range Preservation Initiative that fell within the Committee's jurisdiction, including DOD's request for permanent legislative authority to enter into agreements with non-federal entities to manage lands adjacent to military installations. In addition, the Committee provided $20 million for a Range Enhancement Initiative Fund to allow DoD to implement this authority. Lands acquired with this Fund would help to protect existing operations and training ranges by providing buffer zones between military training areas and the surrounding population.

The committee also took action to reduce overall life-cycle costs of maintaining military equipment and facilities with its initiative to improve the Department's ability to prevent and mediate the effects of corrosion. The committee added a provision to enhance intra-Departmental coordination on anti-corrosion efforts and technologies, and provided $15.0 million to apply proven technologies and test promising future ones.

To help to ensure that military units remain ready, the committee added $231.6 million to the budget request for maintenance of Navy guns and ships and Air Force aircraft, including $95.0 million for ship depot maintenance and gun repairs; $67.1 million for high priority aircraft maintenance; $60.0 million for repairs specifically for KC-135 aircraft; and $11.5 million for engine overhauls for Air Force Special Operations Command MH-53 helicopters.

The committee included a number of legislative provisions to improve DOD management and financial oversight, including provisions that would:

• achieve $850 million of savings through continued implementation of management improvements for the Department's $50 billion of services contracts;

• achieve $400 million of savings by deferring spending on financial systems that would not be consistent with comprehensive financial management system architecture to be developed over the next year;

• enable the DOD to make the best use of limited resources by conducting "buy-to-budget" acquisition – i.e., by authorizing the Department to acquire a higher quantity of an end item than specified in an authorization or appropriation law by achieving cost reductions;

• require the DOD to address credit card abuses by implementing GAO recommendations for enhanced internal controls;

• authorize the Secretary of Defense to waive domestic source or content requirements for close defense allies that provide reciprocal treatment for our defense products; and

• improve the energy efficiency of the Department of Defense and reduce environmental compliance costs by requiring the Department to establish a program for the acquisition of environmentally preferable products.

Military Construction

The committee continued its efforts to improve the facilities in which our military personnel work and the housing in which they and their families live. The committee was disappointed that the amount requested in the budget to repair or replace the facilities needed to support the Department's operational missions declined from the fiscal year 2002 level, and that the budget did not include sufficient facility maintenance funds to keep all DoD facilities from deteriorating during fiscal year 2003. To help address these shortfalls, the committee added funds to enhance mission performance and the quality of the workplace for our armed forces, including an increase of over $600 million in new construction and an additional $166 million for facilities sustainment and maintenance to allow the military services to better protect existing infrastructure from future decay.

Under the leadership of the Chairman and Ranking Member, Senator Mary Landrieu (D-LA) and Senator Pat Roberts (R-KS), the Emerging Threats and Capabilities Subcommittee focused its efforts on improving the ability of the armed forces to meet nontraditional threats, including terrorism and weapons of mass destruction, and promoting the transformation of the armed forces to meet the threats of the 21st Century. In these areas, the committee added over $300 million for high priority science and technology programs that will be the foundation of the next generation of military systems; $73 million for Test and Evaluation facilities and programs; and $219 million for Army RDT&E accounts to develop the new technologies in robotics, precision munitions, computers and communications to develop the Army's Objective Force.

The Committee approved a number of key legislative initiatives designed to promote the transformation of the Armed Forces and improve the Department's ability to meet non-traditional threats. These initiatives included:

• new legislative provisions that will help small businesses provide their innovative technologies to support the war on terrorism;

• new legislation that will accelerate the transition of new defense technologies from laboratories into the hands of our nation's warfighters;

• legislation that will help the Defense Department address critical workforce shortages so that defense labs can hire and retain the finest technical talent available;

• a major initiative to address budget shortfalls and organizational shortcomings in the Department's test and evaluation infrastructure that have led to inadequate testing of major weapons systems. As a part of this initiative, the Committee included provisions based on recommendations of the DOD Director of Operational Test and Evaluation that would:
• establish a new Test and Evaluation Resource
  Enterprise, which would be responsible for funding the
  investment, operation and maintenance, development and
  management of the Department's most important test facilities
  and resources;
• reduce a disincentive for testing by eliminating
  surcharges by the Department's test facilities and transferring
  funds to those facilities to cover the lost revenue;
• require the Department to adhere to the
  requirements of its own Test and Evaluation Master Plans for
  major weapons systems by establishing a more disciplined process
  for waiving such requirements.

• a provision requiring the DOD to develop and submit a comprehensive plan to improve the preparedness of military installations to deal with incidents involving weapons of mass destruction;

• a provision requiring a detailed report from the DOD on its role in homeland defense, and how it is fulfilling this new mission;

• language directing the Department of Defense to work with the Department of Health and Human Services on the development of a single national biological defense research facility to serve Department of Defense and other homeland security requirements; an