REFORM AND REBUILD NATIONAL DEFENSE AUTHORIZATION ACT · PDF file1 HASC COMMUNICATIONS: 52539...

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1 HASC COMMUNICATIONS: 52539 REFORM AND REBUILD:NATIONAL DEFENSE AUTHORIZATION ACT FOR FY18 For 56 years, the National Defense Authorization Act (NDAA) has been the primary way in which Congress executes its Article 1 constitutional obligation to “provide for the common defense.” The NDAA equips, supplies, and trains our troops; cares for them and their families; and sets national security policy in a dangerous world. The Fiscal Year 2018 (FY18) NDAA meets all of these commitments, while also continuing to reform the way the Department of Defense operates and organizes, equips our troops, and buys goods and services. It begins a much-needed rebuilding after a half-decade of cuts slashed nearly a quarter of the defense budget while the military remained in steady combat. These cuts, combined with the pace of operations, have driven military readiness to a level that Defense Secretary Mattis said “shocked” him. Today, we have too many planes that cannot fly, too many ships that cannot sail, too many Soldiers who cannot deploy, while too many threats are gathering. We have come to a key decision point. For six years, we have been just getting by -- cutting resources as the world becomes more dangerous, asking more and more of those who serve, and putting off tough choices. Chairman Thornberry and the Conferees believe that we cannot keep piling missions on our Servicemembers without ensuring they have all they need to succeed. The FY18 NDAA Conference Report supports funds for base budget requirements of $634.2 billion, a $26.4 billion increase for essential readiness recovery above the President’s combined initial and amended budget requests. This level is informed by in-depth committee oversight, as well as additional requirements identified by the military services and validated by Secretary Mattis. Committee oversight indicates that the Department can efficiently spend these additional funds in FY18. The series of tragic accidents that struck across the military highlight Conferees’ concerns about the readiness of the Force. Those concerns are further reinforced by extensive Armed Services Committee Oversight. The NDAA addresses important readiness shortfalls including: increased end strength, Aviation Readiness, increased Naval presence, Ground Forces, facilities maintenance, Missile Defense, and critical munitions.

Transcript of REFORM AND REBUILD NATIONAL DEFENSE AUTHORIZATION ACT · PDF file1 HASC COMMUNICATIONS: 52539...

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HASCCOMMUNICATIONS:52539

REFORMANDREBUILD:NATIONALDEFENSEAUTHORIZATIONACTFORFY18

For56years,theNationalDefenseAuthorizationAct(NDAA)hasbeentheprimarywayinwhichCongressexecutesitsArticle1constitutionalobligationto“provideforthecommondefense.”TheNDAAequips,supplies,andtrainsourtroops;caresforthemandtheirfamilies;andsetsnationalsecuritypolicyinadangerousworld.TheFiscalYear2018(FY18)NDAAmeetsallofthesecommitments,whilealsocontinuingtoreformthewaytheDepartmentofDefenseoperatesandorganizes,equipsourtroops,andbuysgoodsandservices.Itbeginsamuch-neededrebuildingafterahalf-decadeofcutsslashednearlyaquarterofthedefensebudgetwhilethemilitaryremainedinsteadycombat.Thesecuts,combinedwiththepaceofoperations,havedrivenmilitaryreadinesstoalevelthatDefenseSecretaryMattissaid“shocked”him.Today,wehavetoomanyplanesthatcannotfly,toomanyshipsthatcannotsail,toomanySoldierswhocannotdeploy,whiletoomanythreatsaregathering.Wehavecometoakeydecisionpoint.Forsixyears,wehavebeenjustgettingby--cuttingresourcesastheworldbecomesmoredangerous,askingmoreandmoreofthosewhoserve,andputtingofftoughchoices.ChairmanThornberryandtheConfereesbelievethatwecannotkeeppilingmissionsonourServicememberswithoutensuringtheyhavealltheyneedtosucceed.TheFY18NDAAConferenceReportsupportsfundsforbasebudgetrequirementsof$634.2billion,a$26.4billionincreaseforessentialreadinessrecoveryabovethePresident’scombinedinitialandamendedbudgetrequests.Thislevelisinformedbyin-depthcommitteeoversight,aswellasadditionalrequirementsidentifiedbythemilitaryservicesandvalidatedbySecretaryMattis.CommitteeoversightindicatesthattheDepartmentcanefficientlyspendtheseadditionalfundsinFY18.TheseriesoftragicaccidentsthatstruckacrossthemilitaryhighlightConferees’concernsaboutthereadinessoftheForce.ThoseconcernsarefurtherreinforcedbyextensiveArmedServicesCommitteeOversight.TheNDAAaddressesimportantreadinessshortfallsincluding:increasedendstrength,AviationReadiness,increasedNavalpresence,GroundForces,facilitiesmaintenance,MissileDefense,andcriticalmunitions.

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TABLE1:FY18DiscretionaryFundingLevelsPurpose(amountsinbillions)

NDAALevels

NationalDefense(050)*

DODDiscretionaryBaseBudget $605.5 $605.5

DOEDiscretionaryBaseBudget $20.6 $20.7

Defense-RelatedActivities $0.3 $7.9

FY18BaseBudgetNDAATopline $626.4 $634.2

OverseasContingencyOperations $65.7 $65.7

FY18DiscretionaryTopline $692.1 $699.9* For comparison purposes. Includes National Defense Budget Function (050) authorizations not within the jurisdiction of the Committee on Armed Services

TABLE2:FY18DiscretionaryandMandatoryFundingLevelsPurpose(amountsinbillions)

NDAALevels

NationalDefense(050)*

FY18DiscretionaryTopline $692.1 $699.9

FY18MandatorySpending $7.5 $8.1

FY18DiscretionaryandMandatorySpendingLevels $699.6 $708.0* For comparison purposes. Includes National Defense Budget Function (050) authorizations not within the jurisdiction of the Committee on Armed Services

REFORM

Repairingandrebuildingourmilitaryiskeytodefendingthecountry,andsoisreformingthewaythePentagondoesbusiness.ChairmanThornberryhascommittedtomakingdefensereformakeypriorityduringhistenure.Overthepasttwoyears,Congresshasenactedsignificantdefensereformswithstrongbipartisansupport.Theyincludeanupdatedretirementsystem,animprovedmilitaryhealthcaresystem,amoreefficientandsustainablecommissarybenefit,acomprehensiveoverhauloftheUniformCodeofMilitaryJustice,majorreorganizationoftheDefensebureaucracy,andreformstothewaythePentagonbuysgoodsandservices.Thesereformsalsoincreasecongressionaloversight,improvetransparency,andpromoteaccountabilityacrosstheDepartment.Anyoneenteringmilitaryservicetodaywillwitnessthesereforms,overthecourseoftheircareer,improveagility,cutbureaucracy,promotejustice,providebetterbenefits,andsavethetaxpayerbillions.

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AcquisitionReform:ChangingthewaythePentagondoesbusinessTheFY18NDAAincludesthethirdinstallmentofthisreforminitiative,whichwillfurtherstreamlinebureaucracy,driveefficiencythroughcompetition,andgivethePentagonthetoolsitneedstomakebetterbusinessdecisions.Thefirstofthemajorreformelementsistoaddoversighttoservicecontracts.Infiscalyear2015,thePentagonspent$274billionthroughcontracts,includingbig-ticketweaponsystemsliketheFordClassaircraftcarrierandtheF-35fighterjet.But,53percent($144billion)ofthissumwasactuallyspentonservices–everythingfromlawnmowingonmilitarybasestomaintainingequipmenttohiringspecializedexpertsandadministrativesupport.Unfortunately,DOD–andCongress–havelimitedinsightintohowandwherethismoneyisspent.Thebillrequiresmorespecificityinfundingrequestsforservicecontracts,whichwillnowbesubmittedthroughtheDODbudgetprocess,forcingthePentagontoanalyzeactualneedsandspendingpatternsmuchliketheydoforweapons.ThosewithintheDODwhoneedtocontractforaservicewillhavetospecifytheirrequirementsearlyenoughtohavethemvalidated,thecontractsawarded,andthefundingsecured.Congresswillhaveabetterideaofwhatkindsofservicesarebeingcontractedandtheircost,improvingoversightandenablingefficiencies.ThesecondreformwouldimprovethewaythePentagonbuyscommercial-off-the-shelfgoods,rangingfrombottledwatertotreadmillsorevenforklifts.Today,theDepartmenthastwooptionsforpurchases:throughtheDODcontractingprocessorfromtheGeneralServicesAdministration(GSA)atpricessetbythatagency.ThebottomlineisthattheDepartmentisrarelyabletobuyoff-the-shelfitemsquicklyandatareasonableprice.Thesolutionisobvioustomostconsumers–allowthegovernmenttouseonlinecommercialsiteslikeAmazon,Grainger,Staples,orWalmartjustasbusinessesdo.Theseportalsfunctionlikemini-marketplaces,ensuringthatthebuyergetsthebestpricewithoutalotofredtape.UsingtheseportalshastheaddedbenefitofallowingDODtotrackandanalyzeprocurementdata.Anybusinesswilltellyouthatthis“spendanalysis”iscriticaltoefficientoperations.Forthegovernment,thatkindoftransparencyandaccountabilitywouldberevolutionary.Finally,theNDAAwillreformcontractauditingbyfocusingitwhereitcandothemostgoodforthetaxpayers.Currently,theDefenseContractAuditAgency(DCAA)primarilyfocusesontwotypesofaudits:forward-pricingandincurredcost.Forwardpricingauditsreviewthecostoflabor,supplies,andoverheadtoinformtheappropriatepricerangeforacontractbeingnegotiated.Theyproviderealvaluetothetaxpayer.Theincurredcostauditslookatwhetherpastcostschargedtothegovernmentwerereasonableandpermissibleunderthecontract.

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AccordingtoDCAA’sowndata,incurredcostauditsprovidethelowestreturnoninvestmenttothetaxpayerofanyofDCAA'saudits.DatashowsthatDCAAmayactuallyloseupto13centsforeverydollarinvestedinconductingthesetypesofaudits.Further,ittookanaverageofover880daystocompletetheincurredcostauditsconcludedlastyear,slowingtheabilityofDODtorecoupmoneyandimposingaddedcostsonthecompaniesbeingaudited.Increasingly,companiesaredecidingthatitisjustnotworthdoingbusinesswiththePentagon.Tohelpreducetheauditbacklogandgetbettervalueforourdefensedollars,theHouseArmedServicesCommitteelookedattheexperienceofotheragencies,anumberofwhichhavehiredprivateaccountingfirmstoconductincurredcostaudits.Withoutcostingextramoney,qualifiedprivatesectorauditorsaregettingthesameworkdonefaster.TheNDAAwilldirectDODtomoveasufficientnumberofincurredcostauditstotheprivatesectortoensurethatDCAAeliminatesitsauditbacklog,allauditsarecompletedwithinayear,andDCAAcanfocusitsexperienceandexpertiseonforward-pricingauditswherethetaxpayerreapsrealbenefits.SlimmingtheAcquisitionCodeTheConfereesstronglysupporttheongoingeffortsofthe“Section809Panel”onStreamliningandCodifyingAcquisitionRegulations,whichwasestablishedintheNationalDefenseAuthorizationActforFiscalYear2016(PublicLaw114-92).ThePanelproducedaninterimreportinMay2017recommendingseveralrevisionstoacquisitionstatutesandregulations.InadditiontothePanel'srecommendations,theConfereesareconcernedthatprocessrequirementshavebuiltupinacquisitionstatutesovertimeandmaynowimpaireffectiveprocurementpractices.TheNDAAincludesprovisionsintendedtosignalalonger-termefforttoremoveunnecessarilyprescriptiveandobsoleterequirementsfromU.S.Code,whichcreateacultureofcompliancewithintheacquisitioncommunity,ratherthanempoweringsmart,agile,decision-making.DefenseDataTransparencyTheConfereeshaveobservedthatmanyofthemanagementchallengescurrentlyfacedbyDODaredrivenbythelackofaccessible,sharedinformationanduncleardatagovernancepoliciesbetweencomponents.Moreover,theConfereesareconcernedthattheDepartmentlagswellbehindtheprivatesectorineffectivelyincorporatingenterprise-widedataanalysesintodecisionmakingandoversight.Therefore,theFY18NDAAestablishesastatutoryrequirementthattheOfficeoftheSecretaryofDefense,theJointStaff,andthemilitarydepartmentsbegivenaccesstobusinessmanagementrelateddatainordertoovercomeinstitutionalandculturalbarrierstoinformationsharing.FundamentalReformofNationalSecuritySpaceAsthreatstoourassetsinspaceincrease,theNDAAsupportstheAirForce’srecognitionthatspace--justlikeland,air,andseas--isnowawarfightingdomain.TheNDAAincorporatestheworkofStrategicForcesChairmanMikeRogers(R-AL)andRankingMemberJimCooper(D-TN)tobeginfixing

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thebrokennationalsecurityspaceenterprisebystreamliningAirForceacquisitionauthorities,eliminatingburdensomeredtape,empoweringasingleaccountableorganizationforspaceforceswithintheAirForce,placingrenewedemphasisontheorganizationandmanagementofspaceintheDoD,andholdingtheDeputySecretaryofDefenseresponsibleforthefullandfaithfulexecutionoftheseimprovements.Followingtheforward-lookinginitiativesonspacereformundertakenintheHousethisyear,theNDAAempowersAirForceSpaceCommandasthesoleauthorityfororganizing,training,andequippingallU.S.AirForcespaceforces.ThisidentifiesAirForceSpaceCommandasthefocalpointforaspaceservicewithintheAirForceresponsibleforacquisition,resourcesandrequirements,cadredevelopment,andwarfightingtobeginfixingthesystemicproblemsCongressidentifiedinthenationalsecurityspaceenterprise.Further,theNDAAreducesburdensomebureaucracyandineffectivebureaucracyinthenationalsecurityspaceenterpriseincluding:

● EliminatesthePrincipalDefenseSpaceAdvisor(PDSA),whichhadnodecision-makingauthorityandcreatedunnecessarybureaucracy;

● EliminatestheDefenseSpaceCouncil(DSC),whichwasabureaucraticforumwithoutintegrationintotherealdecision-makingbodiesoftheDepartmentofDefense;

● EliminatestheDeputyChiefofStaffoftheAirForceforSpaceOperations(A-11),ahastily-developedhalf-measureinstitutedbytheAirForce,whichatbestonlyaddedaboxontheorganizationalchart;and

● RequirestheDeputySecretaryofDefensetodetermineanofficialtoberesponsibleforspacebudgetprioritization,butsuchofficialcannotbetheSecretaryoftheAirForce.

Toensurethefullandfaithfulexecutionofthisreorganization,theNDAAalsorequirestheDeputySecretaryofDefensetoenterinacontractwithaFederally-fundedResearchandDevelopmentCorporation,withoutaffiliationwiththeU.S.AirForce,toprovideCongresswitharoadmaptoestablishaseparatemilitarydepartmentresponsiblefornationalsecurityspaceactivitiesoftheDoD,whichmayberequiredasCongressevaluateshowsupportiveDoDisaboutthisreorganization.

CongressionalOversightofCyberOperationsTheNDAAenhancescongressionaloversightofsensitivemilitarycyberoperationsandcyberweaponsbypromotinggreatertransparencyandaccountabilitytoCongressforsomeofthemostclassifiedelementsofournationaldefense.Asoffensiveanddefensivecybercapabilitiesevolve,itisimperativetoestablishclearstandards,processes,andproceduresfornotificationtoCongressofsensitiveoperationstoassuretheappropriateoversight.TheNDAArequirestheSecretaryofDefensetoconductaCyberPostureReviewwiththepurposeofclarifyingU.S.cyberdeterrencepolicyandstrategy.

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ReviewofRegularandReserveOfficerCareerManagementTherecruiting,retention,andeffectivemanagementoftheofficercorpsisamajorcomponentofmilitaryreadiness.Overthelastseveralyears,theDepartmentofDefensehasexpressedconcernsthatsomemilitaryofficercareermanagementlawswereoverlyrestrictiveandoutdated.TheNDAArequirestheDepartmentofDefensetoconductacomprehensivereviewoftheDefenseOfficerPersonnelManagementAct(DOPMA)andReserveOfficerPersonnelManagementAct(ROPMA)toidentifydeficienciesinthelawandwhatstepstheDepartmentofDefensecantakewithinexistingauthoritiestoimproveofficercareermanagement.TheimportantanalysisrequiredbythisreportwillhelpinformCongressastowhetherDOPMAandROPMAreformisneeded.FinancialauditFormorethan20years,theComptrollerGeneraloftheUnitedStateshasconsistentlyidentifiedthefinancialmanagementoftheDepartmentofDefenseasahigh-riskarea.TheDepartment’sinabilitytotrackandaccountforbillionsofdollarsinfundingandtangibleassetscontinuestoundermineitsmanagementapproach.Italsocreatesalackoftransparencythatsignificantlylimitscongressionaloversight.TheDepartment’sinabilitytoproduceauditablefinancialstatementsunderminesitseffortstoreformdefenseacquisitionandtorealizeefficiencies.IncompliancewiththeSeptember30,2017deadlineestablishedbytheNationalDefenseAuthorizationActforFiscalYear2010(PublicLaw111-84),theDepartmenthascertifiedthattheyarereadytoundergoafullfinancialaudit.AstheDepartmentundergoestheirfirstfullfinancialstatementauditin2018,theConfereesturntheiroversightfromauditreadinesstotheremediationofdiscrepanciesfoundinupcomingfullfinancialstatementaudits.TheDepartment’smovetoundergoafullfinancialstatementauditwillrequirenewreportingrequirementsthanthosepreviouslyaimedatauditreadiness.Accordingly,theNDAAhasestablishedtheFinancialImprovementandAuditRemediationplan,supportingtheDepartment'sfocusonundergoingafullfinancialauditgoingforwardbutenforcingtheimportanceofthoroughoversightoftheDepartment’sactivities.ThebillstreamlinesexistingreportingrequirementsintoanewsectionofU.S.CodetoremainrelevantastheDepartmentundergoesfuturefinancialstatementaudits.CreatingadedicatedsectionofU.S.CodewillclarifytheDepartment’sreportingrequirementsforfutureyears.

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REPAIRINGTHEMILITARY&RESTORINGREADINESSTroopsandTheirFamiliesWhiletheworldhasgrownmoredangerous,ourmilitaryhasgrownsmaller.America’smilitaryleaderscontinuetowarnthatourpersonnelandtheirequipmentarestretchedthinafteryearsofwar,billionsinbudgetcuts,downsizing,andcontinuedfundinguncertainty.Tohelpalleviatethestressontheforce,theNDAAauthorizesincreasestothesizeoftheArmy,Navy,Marines,AirForce,ArmyGuardandReserve,NavalandAirReserve,andAirGuardcommensuratewiththethreatsweface.ChairmanThornberryandmembersoftheConferenceCommitteeagreethatourpersonnelareourcountry’smostvaluableasset.Thebillfullyfundsthe2.4%payraiseourtroopsareentitledtounderlawwhileblockingthePresident’sabilitytoreducetrooppay.UndertheConferenceAgreement,authorizedReserveComponentmembersactivatedunder12304aor12304borderswillreceivepre-mobilizationandtransitionalTRICAREhealthcare.Membersremainconcernedaboutthewidow’staxandthefinancialburdenitplacesonfamiliesoflostServicemembers.Tohelpsupportsurvivors,theConferenceReportpermanentlypreservesSpecialSurvivorIndemnityAllowance(SSIA)paymentstosurvivingmilitaryspouses.Themorethan60,000Americanswhosespousesdiedeitheronactivedutyorduringretirementwillcontinuetoreceive$310permonthplusCOLAindefinitely.EnsuringthecountrykeepsfaithwiththosewhoserveandtheirfamiliesisakeypriorityfortheConferees.TheNDAAtakesstepstoprotectthebenefitsservicemembershaveearnedanddeserve,includingqualityhealthcare.Tothatend,theConferenceReportcontinuestoprovideforthosemilitaryfamilymembersinthegreatestneedbyauthorizinghospicecareservicesforeligiblebeneficiariesundertheageof21thatmaybeusingotherhealthcareservicesorhospitalizationforthesamemedicalcondition.Additionally,thisyear’sNDAAincludesadditionalphysicalexaminations,mentalhealthassessmentsandastudyonsafeopioidprescribingpractices.ItcontinuestheimportantMilitaryHealthSystemsreformbyfurtherclarifyingtherolesofCommandersorDirectorsofMilitaryMedicalTreatmentFacilitiesandtheServiceSurgeonsGeneral.ThereportalsoprohibitsthereductionofinpatientcareformilitaryMedicalTreatmentfacilitieslocatedoutsidetheUnitedStates,untilacertificationiscompletedensuringnooperationalimpactfortheGeographicCombatantCommanderorimpactonabeneficiary'saccesstothesamequalityhealthcarecurrentlyprovidedthroughouttheMilitaryHealthSystem.Inaddition,theNDAAalsoprovidescommonsenseresourcestohelpfamiliesmanagechallengeslikerelocations,permittingtheServicestoreimburseaservicememberupto$500foraspouse’sexpensesrelatedtoobtaininglicensingorcertificationinanotherStatebecauseofamilitarymove.TheNDAAalsorequirestheSecretaryoftheNavytoprovidequarterlyupdatesontheprogressoftheNavy’sPhysiologicalEpisodeTeamanditseffortstocombatphysiologicalepisodesinF/A-18HornetsandSuperHornets,EA-18Growlers,andT-45Goshawks.TheNDAAaddsadditionalmeasurestoprotectvictimsofsexualassaultandprosecuteperpetrators.First,theConferenceReportenhancesthetoolsavailabletoprosecuteperpetratorsofnon-

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consensualsharingofintimateimagesbyaddinganewprovisiontotheUniformCodeofMilitaryJusticespecificallyprohibitingthesecrimes.Inaddition,theNDAAexpandstheSexualAssaultPreventionandResponseProgram,requiringthoseinthedelayedentryprogramtoreceivesexualassaultpreventiontraining;expandingsexualtraumacounselingandtreatmentformembersofthereservecomponents;andrequiringspecialvictimscounseltoreceivetrainingontheuniquechallengesfacedbymalevictimsofsexualassault.Italsoexpandsreportingrequirements,includinganewrequirementtoincludereportsofsexualassaultscommittedbyservicemembersagainsttheirspousesandotherdependentsintheannualSexualAssaultPreventionandResponseReport,aswellasrequiringanewreportonsexualassaultvictimrecoveryintheCoastGuard.Finally,theNDAAincludesmultipleprovisionsdesignedtoaddresssexualharassmentandassaultattheU.S.MerchantMarineAcademy.

IncreasedEndStrengthOverFY17Levels

ENDSTRENGTH FY17Authorized ConferenceReportProvides

Change

ARMYENDSTRENGTH 476,000Active343,000Guard199,000Reserve

483,500Active343,500Guard199,500Reserve

+7,500Active+500Guard+500Reserve

NAVYENDSTRENGTH 323,900Active58,000Reserve

327,900Active59,000Reserve

+4,000Active+1,000Reserve

MARINECORPSENDSTRENGTH

185,000Active38,500Reserve

186,000Active38,500Active

+1,000Active+0Reserve

AIRFORCEENDSTRENGTH

321,000Active105,700Guard69,000Reserve

325,100Active106,600Guard69,800Reserve

+4,100Active+900Guard+800Reserve

RebuildingFromtheReadinessCrisisThereadinesscrisisfacingourmilitarytodayisrealanddangerous.Alloftheserviceshavenotedtheseriousconsequencesofyearsofunder-fundingandhighoperationaltempo:theAirForcetestifiedthatlessthan50percentofitsplaneswerecombatready,whiletheNavyandMarineCorpshadjustover50percentoftheaircraftnecessaryfortheirtrainingandoperations.Intotal,onlyfiveoftheArmy’s58BrigadeCombatTeamsarereadyto“fighttonight”.Toaddressthiscrisis,theNDAAmakeskeyinvestmentsnotprovidedforinthePresident’sinitialBudgetRequest.Whilereadinessshortfallswilltakemanyyearstocorrect,theseinitiativeswillbegintorecoverlostreadinessandrebuildtheForce.

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MaintenanceMuchofourequipmentissimplytoobrokentorepairanddeliveryofnewequipmentisessential.Inthemeantime,CongressmustmakevitalmaintenanceinvestmentsnotincludedinthePresident’sbudgettoensurethatnext-to-deployunitsaremissioncapable.TheNDAAincreasesNavyShipandAircraftdepotmaintenanceandafloatreadiness,whilealsoincludingadditionalfundsfortheArmy,Navy,MarineCorps,andAirForceoperationandmaintenanceaccountstofulfilltheirunfundedrequestsfornecessarymaintenanceandincreasedtrainingopportunities.EachoftheseinvestmentswasidentifiedasacriticalrequirementbythemilitaryservicesandvalidatedbySecretaryMattis;noneofthemwerefullyfundedinthePresident'sinitialbudgetrequest.FacilitiesMilitaryinstallationsandtrainingrangesarethefoundationofmilitaryreadiness.Unfortunately,whileglobaldemandsonthetotalforcearebecomingincreasinglydiverseandunpredictable,the21stcenturywarfighterisstilloperatingfromrapidlyagingandpoorlyconfiguredinstallationinfrastructure.Cutstooverallfundinghave,inturn,forcedtheServicestomakeoutsizedcutstotheinfrastructurebudgetinrecentyearstofundotherurgentpriorities.Consequently,ourmilitaryinfrastructureisfailing,whilenewrequirementsremainunexecutedaspartofagrowingmulti-billion-dollarbacklogofmaintenance,repairandconstruction.Tocounterthesetrends,theNDAAcontinuesinstallationmanagementreformstartedintheFY2017NDAA,enablingmoreresilientandsustainablefacilities,whileacceleratingreadinessrecoveryinthemosteffectiveandaffordablemannerpossible.TheNDAA:

● Makesiteasiertocompletesmallprojectsandreuseolderfacilities:Doublestheauthorizedcostthresholdforunspecifiedminorconstructionprojects,enablinginstallationcommandersanddefenseagenciestomeetemergentfacilityrequirementswhileacceleratingthedivestitureorrecapitalizationofantiquatedandpoorlyconfiguredinfrastructure.

● IncreasesfundingtosupportmilitaryfacilitiesabovethePresident'sinitialbudgetrequest.Insodoing,itsupports90percentofrequirementsforfacilitiessustainmentandasignificantincreaseforfacilitiesrestorationandmodernization.Additionally,thebillincreasesfundingforfacilitiesrestorationandmodernizationby$1.4billion.Theincreasedfundingwillrestoreandmaintaininfrastructure,rangingfrombarrackstohospitalsandrunwaystohangers.EachoftheseinvestmentswasidentifiedasacriticalrequirementbythemilitaryservicesandvalidatedbySecretaryMattis.

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ComparisonofPresident'sinitialbudgetrequesttoFY18NDAA

PRESIDENT'SINITIALBUDGETREQUEST

SERVICE/COCOMIDENTIFIEDSHORTFALL

CONFERENCEREPORTPROVIDES

MILITARYPAYRAISE Requested2.1%increase,0.3%belowECI

Committeeaction Funds2.4%increase,matchingECIasrequiredbylaw

F-35 70aircraftrequested 24aircraft 90aircraftF/A18 14aircraftrequested 10aircraft 24aircraftV-22 6aircraftrequested 6aircraft 12aircraftAH-64E 61aircraftrequested 11aircraft 71aircraftCH-47 6aircraftrequested 13aircraft 14aircraftCH-53K 4aircraftrequested 2aircraft 4aircraftUH-60M 48aircraftrequested 15aircraft 53aircraftAH-1Z 22aircraftrequested 7aircraft 29aircraftHC-130J 2aircraftrequested 1aircraft 3aircraftMC-130J 5aircraftrequested 6aircraft 11aircraftKC-130J 2aircraftrequested 4aircraft 6aircraftKC-46A 15aircraftrequested 2aircraft 17aircraftE-2D 5aircraftrequested 0aircraft 5aircraftP-8A 7aircraftrequested 3aircraft 10aircraftMQ-1EXTENDEDRANGEGRAYEAGLES

11aircraftrequested 10aircraft 17aircraft

MQ-9REAPER 16aircraftrequested N/A 16aircraftRQ/MQ-4 3aircraftrequested $39.6million 3/$57.9millionJSTARSRECAP $417.2million

requestedN/A $417.2million

NAVYAVIATIONSPARESANDREPAIRPARTS

$1.7billionrequested $168.0million $1.9billion

DDG-51 2destroyersrequested Committeeactiontospeedthefleet

3destroyers

LITTORALCOMBATSHIP

1LCSrequested Committeeactiontospeedthefleet

3LCS

LPD-30ORLX(R) Nofundsrequested Committeeactiontospeedthefleet

1LPD-30orLX(R)

ESD Nofundsrequested Committeeactiontospeedthefleet

1ESD

SHIPTOSHORECONNECTOR

3SSCrequested 5SSC 8SSC

ABRAMSTANKUPGRADES

56requested 29tanks 85tanks

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BRADLEYFIGHTINGVEHICLES

60requested 33vehicles 93vehicles

HERCULESIMPROVEDRECOVERYVEHICLES

16requested 35vehicles 51vehicles

STRYKERDOUBLEV-HULL

$97.6millionrequested 116vehicles 116vehicles

STRYKERLETHALITY Nofundsrequested $354.0million $177millionJOINTLIGHTTACTICALVEHICLE

2,777requested N/A 2,777vehicles

AMPHIBIOUSCOMBATVEHICLE

26requested N/A 26vehicles

ARMOREDMULTIPURPOSEVEHICLE

107requested N/A 107vehicles

AMMOINDUSTRIALBASE

$329.3millionrequested

$100.0million $429.3million

ATACMS 121ATACMs 75ATACMs 196ATACMsRAMBLOCKII 60missilesrequested 60missiles 120missilesSTINGERMISSILES 1,100requested 576 1,676StingermissilesJAVELINS 794requested 373Javelinmissiles 1,167JavelinmissilesJOINTDIRECTATTACKMUNITION

34,529requested N/A 34,529JDAMs

SMALLDIAMETERBOMBS

7,312requested N/A 7,312bombs

GUIDEDMULTIPLELAUNCHROCKETSYSTEMS

6,000requested $14.5million(toolingforincreasedcapacity)

6,000systems/$14.5million(toolingforincreasedcapacity)

AMRAAM 325requested $12.0million(guidancesectionupgrades)

325AMRAAMs/$12.0million(guidancesectionupgrades)

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CONFRONTINGAGGRESSION&ADDRESSINGTHREATSEnhancingMissileDefenseTheNDAAadds$4.4billionabovethePresident'sinitialbudgetrequesttomeetcriticalmissiledefenseneeds.Italsorecognizestheincreasingquantitativeandqualitativenatureoftheballisticmissilethreatswefaceasanation.Giventheincreasedthreatsagainstourhomeland,particularlyfromNorthKorea,theNDAAauthorizesupto28additionalGround-BasedInterceptorsandrequirestheSecretaryofDefensetodevelopaplanforincreasingtheoverallnumberfrom44to104interceptors.ThebillalsoauthorizesfundingtoprocureadditionalSM-3IB,THAAD,andPatriotMSEinterceptors,alongwithadditionalinvestmentsintheGround-basedMidcourseDefenseSystem,andboostphasemissiledefense.Toensureweremainfaraheadofthethreat,theNDAArequirestheMissileDefenseAgencytodevelopaspace-basedsensorlayerforballisticmissiledefense.Tocombatincreasingthreatsandenablecriticalmodernizationasquicklyaspossible,thebillgivestheArmyonefinalchancetoproposeanacquisitionscheduleandmodernizationprogramfortheArmy’sAirandMissileDefenseSensorProgram.Otherwise,theprogramwillbetransferredtotheMissileDefenseAgency.TheNDAAalsoprovidesIsraeltheresourcesithasrequested,approximately$705million,forco-production,includingintheUnitedStates,andco-developmentofIsraelimissiledefensesystems,includingIronDome,David’sSling,andArrow.Indo-Asia-PacificRegionTheNDAAmakeskeyinvestmentsincriticalcapabilitiestosupportU.S.militaryreadiness,deteraggression,andtorespondtocrisesintheIndo-Asia-PacificRegion.Itseekstopositionsufficientforcesforwardandinvestsincriticalmunitionsandjointtrainingexercises.ItreaffirmsU.S.extendeddeterrencecommitmentstoourallies,condemnsanyassertionthatlimitstherightoffreedomofnavigationandoverflight,andbolstersourstrongalliancesandpartnershipsintheIndo-Asia-Pacificregion.Thisyear,theNDAAauthorizestheSecretaryofDefensetoestablishthe“Indo-Asia-PacificStabilityInitiative”tohelppreservepeace,stability,andsecurityintheregionbydevelopingandcarryingoutaprogramofactivitiestoincreasethepresence,capabilities,andpostureoftheUSMilitaryintheregionandtoenhancemilitarytrainingandexerciseswithalliesandpartnernations.TheNDAAalsorequirestheDepartmentofDefensetoprovidestrategiesandplansthatwouldprioritizeUnitedStatesdefenseinterestsintheregion,assessUnitedStatesforcepostureandbasingneeds,assesstheUnitedStatesdefenseimplicationsofChina’sexpandingglobalaccess.CongressrecognizesthatNorthKorea’ssuccessfultestofanintercontinentalballisticmissileandnuclearexplosivetestsconstituteagraveandimminentthreattotheUnitedStatessecurityandtothesecurityofU.S.alliesandpartners.ToaddresstheNorthKoreanthreat,theNDAArequiresthePresidenttoclarifyU.S.strategyandobjectivesonNorthKoreaandbolstersourMissileDefenseresources(seeMissileDefensesectionbelow).ItalsoreaffirmsU.S.securitycommitmentstothe

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GovernmentsofJapanandSouthKorea,supportseffortstodeepentrilateralcooperation,andcallsforaplantoenhancetheextendeddeterrenceandassurancecapabilitiesoftheUnitedStatesintheIndo-Asia-Pacificregion.TheNDAAalsoseekstoadvancedefensecooperationbetweentheUnitedStatesandIndiaandtostrengthenthedefensepartnershipbetweentheUnitedStatesandTaiwan,toincludenormalizingthearmssalesprocesswithTaiwanandtakingstepstoenhancetrainingandexercisesandpromoteseniorofficialexchanges.ThebillalsoapprovesofanagreementsupplementaltotheCompactReviewAgreementwiththeRepublicofPalau.AfghanistanInsupportofthePresident’sSouthAsiaStrategy,theNDAAprovidesforarobustAfghanistanSecurityForcesFundtosupportourAfghanallieswhohavesufferedsignificantlossesinthefightagainsttheTalibanandotherterroristorganizations.ThefundprovidesforenhancementsforthemostsuccessfulelementsoftheAfghanArmedForces,andincludesfundsfortheAfghanAirForce’sfixedandrotarywingfleetandfundstheexpansionoftheAfghanistanSpecialSecurityForces.Atthesametime,thebillalsoprovidestoolstosupportPresidentGhani’santi-corruptionefforts.ItalsodirectstheSecretaryofDefensetoprovideanAfghanistanstrategythatwilllookbeyondthenextfiveyearstodescribethetrajectoryofU.S.effortsinAfghanistanandassessthetimelineandtotalresourcesnecessarytoachieveU.S.objectives.Syria&IraqTheNDAAprovidesforU.S.supporttopartnerforcesengagedincombatingtheISISthroughOperationINHERENTRESOLVE.ThissupporthasbeencriticaltocreatingthemomentumnecessarytocurtailISISexpansion,recoverterritoryinIraqandSyria,andrefitpartnerforcesafterdifficultcombatmissions.TheNDAAalsodirectstheDepartmentofDefenseprovideacomprehensive,regionalstrategyforSyriathatdescribesU.S.long-termobjectivesinthewakeofactivecombatagainstISIS.UkraineTheConfereesremaincommittedtoprovidedefensivelethalassistancetoUkrainetoallowittobetterdefenditselfagainstRussianaggression.TheNDAAbuildsonthelasttwoyears’authorizationsandappropriationsbyproviding$350millionfortheUkraineSecurityAssistanceInitiativetohelptrain,equip,andassisttheUkrainianmilitary,NationalGuard,andsecurityservices.RussiaOverthepastyear,RussiahasmaintaineditsgainsinUkraine,continuedsupportfortheAssadregimeinSyria,interferedinU.S.elections,violatedlandmarkdisarmamenttreaties,andcontinuedtotakeunprecedentedprovocativeactionsagainstU.S.,NATO-allied,andpartnershipsandplanes.These

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eventsallpointtotheimportanceofensuringtheU.S.Militaryhasthecapabilityneededtoprotectthecountryandourinterests,andtoassureAmerica’salliesandpartners.RussiahasemployedconventionalandunconventionalwarfaremethodstocounterU.S.andwesterninterests.TheNDAAincludesanew2-yearauthorityexpresslyforSpecialOperationForcestocounterirregularandunconventionalwarfarethreatssuchasthosebeingposedbyRussiaandotheradversaries.Also,tohelpaddressthisaggression,CongressauthorizedtheEuropeanDeterrenceInitiative(EDI),beginningin2015.Thisyear,theNDAAsupportsanothersignificantincreasetoEDIfunding.ThisfundingcontinuesthetransitionfromanassuranceposturetodeterrenceagainstRussianaggression.Theseresourcesareallocatedtospecificrequirements,includingheel-to-toerotationsofU.S.combatunitsintotheregion,thepre-positioningofuptoadivisionset’sworthofequipmentinEurope,vitalinfrastructureimprovementsfortheU.S.AirForce,andadditionaltrainingandexercises.TheNDAArequirestheDepartmentofDefensetostopfurtherconsolidationofEuropean-basedU.S.militaryfacilitiesandinfrastructure,undertheEuropeanInfrastructureConsolidation,untiltheDepartmentevaluatesandreportstotheCongressontheplantoadjustthepostureofrotationalandpermanentU.S.ForcesinEuropetodeterRussia.TheNDAAprovides$100millionfortheBalticnationstodevelopjointdefenseprogramstoincreasetheirstrengthandresiliencyagainstRussianaggression.TheNDAAprovidesincreasedfundingforU.S.intelligenceandwarningcapabilities,technologiessupportingU.S.informationoperations,andstrategiccommunicationsactivities.ItalsoprovidesincreasedfundingforadditionalmodernizedgroundcombatvehiclestoincludeAbramstanksandBradleyfightingvehicles,shortrangeairdefensecapabilities,Javelinanti-tankmissiles,conventionalandpreferredmunitions,vehicleactiveprotectionsystemsandaircraftsurvivabilityequipment.TofurtheraddressRussianaggression,theNDAArestrictsspendingontheOpenSkiesTreatytoprotectU.S.nationalsecurityandwouldimposenewprocesseswithrespecttooverflightsasaresultofRussianviolationofthistreaty.ItalsotakessignificantactionsconcerningRussia’sviolationoftheINFtreaty,including$58milliontodevelopmilitaryoptionstorespondtoRussiancapabilitiesdeployedinviolationoftheTreaty,andestablishinganewprogramofrecordtofacilitatetreatycompliantresearchanddevelopmentofaU.S.ground-launchedcruisemissilesystem.Additionally,theNDAArequiresimplementationofsanctionsonRussiaenactedintheFY17NationalDefenseAuthorization,whichpenalizeRussiaforitsbroad-spectrumviolationsofarmscontroltreatiesandagreements.Lastly,itrequiresthePresidenttoidentifyinapublicdocumentRussiansinvolvedinviolationoftheINFtreatyandotherseniorRussianpoliticalandmilitaryleaders,andtodevelopdraftregulationsthatwillbethebasisoffuturesanctionslegislationagainstRussia,includingassetseizuresandtravelbans.AstheCommanderofU.S.PacificCommand,AdmiralHarryHarrisrecentlytestified,“thereareonlytwocountriesthatsignedontoandoneofthemdoesn’tfollowit.Thatbecomesaunilaterallimitationonus.”

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AfricaTheConfereesremainconcernedaboutthreatstoU.S.nationalsecurityinAfrica.TheNDAAfocusesontheDepartmentofDefense'sabilitytorespondtocrisesontheAfricancontinentandtoaddresscurrentandevolvingthreats,andrequiresthePresidenttoclarifyU.S.strategicobjectivesinSomaliaandNigeria.CounterterrorismTheNDAAprovidestheresourcesnecessaryfortheDepartmentofDefensetocontinuetoprotectU.S.interestsfromterroristgroupsacrosstheglobe.TheNDAAfullyresourcesandauthorizescounterterrorismeffortsandU.S.SpecialOperationsForces,programs,andactivities,includingongoingoperationsinIraq,Syria,Afghanistan,Yemen,Somalia,andelsewhere.Thebillprovidesadditionalresourcesforunfundedrequirementstocounterglobalterrorismthreats,includingthreatsemanatingfromtheMiddleEast.Additionalresourcesareprovidedtoacceleratedevelopmentanddeploymentofanalyticalcapabilitiestosupportcounterterrorismanalysesandanalytictools.TheNDAAstrengthenscongressionaloversightofongoingcounterterrorismandunconventionalwarfareoperationsandprograms,includingvariousIntelligenceactivities.Thereisalsoathree-yearextensionoftheauthoritytosupporttheunifiedcounterdrugandcounterterrorismcampaigninColombia.Additionally,theNDAAmandatesareviewandassessmentforpersonnelrecoveryandnon-conventionalrecoveryassistedrecoverymechanismsandcapabilities,toensurethatourmilitarypersonnelhavesufficientresourcesavailablewhenoperatinginremote,difficult,anddangerousenvironments.Intelligence,Counterintelligence,andSecurityTheNDAAprovidespolicyguidanceandresourcestoimprovetheabilityofthedepartmenttodefeatcriticalthreatstoDODpersonnel,equipment,installationsandcriticaltechnologydevelopments.ItalsotakesstepstoaddressthebacklogofnationalsecurityclearancesbyprovidingauthoritiestotheSecretaryofDefensetoaddresshigh-prioritybackgroundinvestigations.TheNDAAdirectschangestoprocessesgoverningtheapprovalofclassifiedinformationprocessingfacilitiesforcompaniesseekingtodobusinesswiththeDepartmentofDefense,makingiteasierforsmallbusinessesandnon-traditionaldefensecontractorstoprovideinnovativeideastotheDepartmentinaclassifiedenvironment.TheCommitteehasreceivedmultiplebriefingsonthreatstotheUnitedStatestechnologicaladvantagesfrominvestmentsfromforeignstateownedorstatecontrolledentities.ThesebriefingshavemadeitclearseveraladversarialnationsareseekingtoexploitregulatoryprocessestogainaccesstosensitiveU.S.defensetechnologies.TheNDAAdirectstheSecretaryofDefensetodevelopaplantostrengthenDoDinputintotheinteragencyapprovalprocess,andprovideCongresswith

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recommendationstoimprovethegovernmentwidecoordinationandcollaborationtoidentifyandpreventforeigninvestmentsthatcouldimpairthenationalsecurityoftheUnitedStates.CounteringThreatsPosedbyUnmannedAircraftSystemsTheNDAAbuildsuponlastyear’scounter-unmannedaircraftsystems(CUAS)authoritytoaddressemergingunmannedaircraftthreatsfromoperatorsremotelypilotingunmannedaircraftinarecklessorunauthorizedmannernearoroverDepartmentofDefensefacilitiesandassetslocatedintheUnitedStates,itsterritories,andpossessions.TheNDAAauthorizessixadditionalmissionareas,inadditiontothethree-authorizedlastyear,thatDODmaydeployandemployCUAScapabilitiesafterclosecoordinationwiththeSecretaryofTransportationtodeconflictCUASoperations,ifnecessary,toensuresafetyandsecurityofoperationsforothersoperatingwithintheNationalAirspaceSystem.TheNDAAsupportsresponsibleandaccountableintegrationofunmannedaircraftintotheNationalAirspaceSystemforbothcivilianandmilitaryoperations,butprospectivelyprovidesnecessaryauthoritytoprotecthigh-priorityDODfacilitiesandassetsfromanynefarioususeofunmannedaircraft,whilepreservingessentialrightsaffordedU.S.citizensunderArticle4oftheConstitution.ForeignMilitarySales(FMS)TheNDAAbuildsupontheworkconductedbytheHASCOversight&InvestigationsSubcommitteetocontinuetoimprovetheForeignMilitarySalesprocesstoensureourpartnerscanprocureU.S.defenseproductsthatsupportourstrategicobjectivesandindustry.Amongotherprovisions,itwouldestablishspecificmilestonesandstandardtimelineswithDODforforeignmilitarysales.DefenseSecurityCooperationTheDepartmentofDefensetrainsandequipssomeofourforeignpartnersthroughDefenseSecurityCooperationarrangementssoouralliescanmeettheirownsecurityneedsinsupportofU.S.strategicobjectives,andreducethelikelihoodthatU.S.Forceswillneedtobeemployed.TheNDAAcontinuestoadvancetheprogressmadeinlastyear'sNDAAtoreformdefensesecuritycooperationinordertoensuretrainingandequipmentisprovidedeffectivelyandefficiently.AssuredAccesstoSpaceTheCommitteecontinuestoviewthenation’sassuredaccesstospaceasanationalsecuritypriority.ThisincludesacontinuedfocusonthedevelopmentofanewU.S.rocketenginetoreplacetheRussianRD-180enginecurrentlyinuse.AU.S.engineensureswedonotloseexistingandhighly-capablelaunchvehicles,andprioritizingnationalsecurity-specificrequirementsovernewlaunchvehiclestoprotectassuredaccesstospaceandendrelianceonRussianengines.TheCommitteealsoseestheneedtoensurethatDoDfundsauthorizedforthedevelopmentofexistingandplannedcommerciallaunchvehiclesthatareprimarilyfornationalsecurityspacemissionstomeettheassuredaccesstospacerequirements.

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StrengtheningourNuclearDeterrentTheNDAAauthorizesthefullbudgetrequestforDepartmentofDefensenuclearforcesandfortheNationalNuclearSecurityAdministration’s(NNSA)nuclearweaponsactivitiesanddefensenuclearnonproliferationprogram.Thisincludescriticaleffortstomaintainandmodernizeournation’snuclearbombers,ballisticmissiles,andsubmarinesaswellthenation’snuclearweaponsstockpile.TheNDAAprovidesNNSAenhancedauthorityandadditionalfundingtomoreeffectivelyandmorequicklycorrectthedecrepitstateofournuclearweaponsproductioninfrastructure.TheNDAAcreatesstrongoversightprocessesandintelligenceanalysisfunctionstoensurethenation’snuclearcommand,control,andcommunicationssystemremainsrobustandsecureduringongoingrecapitalizationefforts.CyberWarfareandCyberOperationsTheNDAAfullyfunds$8billionforcyberoperations,anincreaseof$1.7billion,andfullysupportstheDepartment’sdefensiveandoffensivecyberspacecapabilitiesandstrategies.Itprovides$647millionforU.S.CyberCommand,anincreaseof16percent.TheNDAAcontinuestobuildandenhanceU.S.cyberwarfareactivitiesandcapabilitieswithinCYBERCOM,acrosstheServices,andwithintheIntelligenceCommunity,includingresiliencyofDODnetworks,weaponssystems,andsupplychains.ItalsoclarifiesthefunctionsofU.S.CyberCommandandrefinescommandandcontrolresponsibilitiesofthecommander.TheU.S.CyberCommandandtheU.S.StrategicCommandcommandersarealsorequiredtojointlyassessthecyberresiliencyofthenuclearcommandandcontrolsystem.TheNDAAaddressesmilitaryservices’unfundedrequirementsbyprovidingadditionalfundingtoclosecriticalcybergaps.ItincreasescongressionaloversightofcyberoperationsbyensuringCongressiskeptfullyinformedofsensitivemilitarycyberoperations.ItalsobolstersinternationalpartnershipsforcyberwarfaretocounteraggressiveadversariessuchasRussia,China,andNorthKorea.Importantly,reportingisrequiredonmaliciouscyberactivitiesspecificallyfromRussiaandotheradversaries.SupportisincludedforthosewithintheIndo-Asia-PacificregionandourNATOpartnerstonotonlyenhancepartneredcybercapabilitiesandinformationsharing,butalsotocounterandmitigateadversarialpropagandaeffortsandinformationwarfarecampaigns.TheNDAAincreasescyberandinformationoperations,deterrence,anddefense.Astrongemphasisisplacedontheneedtodevelopacomprehensivecyberdeterrencestrategy.TheConferenceReportdirectsthearticulationofacomprehensivenationalpolicyoncyberthattheUnitedStatesshouldemployallinstrumentsofnationalpowertodeterandrespondtoanyandallcyber-attacksormaliciousactivitiesthattargetU.S.interestswiththeintenttocauseharmorchaostoindividuals,ourdemocraticsociety,orinfrastructure.

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DetentionFacilityatGuantanamoBay

TheNDAAcarriestheannualrestrictionsagainsttransferringdetaineesfromthedetentionfacilityatGuantanamoBaytotheUnitedStates,buildingormodifyingfacilitiesintheUnitedStatesforhousingdetainees,andtransferringdetaineestocertaincountries.ThebillalsoprohibitsDODfromusinganyfundstoreturncontrolovertheU.S.NavalBaseatGuantanamoBaytoCuba.

REBUILDINGEquipmentModernizationEightyearsofconstrainedbudgetsandconsistenthigh-operationaltempohasforcedthemilitaryservicestodeferbuyingmoremodernandcapableequipment,insteadrelyingonrepairingexistingequipment.Today,muchofthatequipmentcannolongerbesafelyrepaired,orthecostofdoingsoishigherthanbringingmoremodernplatformsintoservice.TheNDAAauthorizeskeyinvestmentstoacceleratefieldingofnew,moreeffective,lethal,andreliableandcost-effectiveplatforms.Italsoprovidesadditionalcapacityforhigh-demandassetstoreducethestressontheforce,rebuildthedepth-of-benchincriticalcapabilityareas,andbeginsapathtorestoringfull-spectrumreadiness.ArmoredBrigadeCombatTeamModernizationTheArmy’smodernizationfundinghasdeclined74percentfrom2008-2015becauseofsequestrationandContinuingResolutions.Asaresult,GeneralDanAllyn,theViceChiefofStaffoftheArmytestified,today’sArmyis“out-ranged,outgunned,andoutdated;andonourpresentcourse,theU.S.Armywillnotbesufficientlymoderntodeteranddefeatpotentialenemies.”UnderthePresident’sbudget,theArmywillnotcompletemodernizingtheirAbramstanksuntil2035.TheNDAAprovidesadditionalfundingtoaddressunfundedrequirementstoacceleratearmoredbrigadecombatteammodernizationandworkstorestoreneededcapabilitytoArmyArmoredBrigadeCombatTeams(ABCTs)toensurecontinuedgroundcombatovermatch.Specifically,theNDAA:● Authorizesover$1.1billionfor85M1A2SEPv3Abramstanks,themostmodernizedversionofthe

Abramstank.Thisrepresentsanincreaseof$375.0millionabovethePresident’sinitialbudgetrequestandaddressesapreviouslyunfundedrequirement.

● Authorizes$311millionfor93M2A4Bradleyfightingvehicles,themostmodernizedversionofthe

Bradley,aswellasothermodifications.Thisrepresentsanincreaseof$111.0millionabovethePresident’sinitialrequestandfullysupportsanotherpreviouslyunfundedrequirement.

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● Authorizes$194.4millionfor51HERCULESimprovedrecoveryvehicles,theprimarysinglerecoveryvehicleinABCTs.Thisrepresentsanincreaseof$122.0millionovertheinitialbudgetrequestandfullysupportsanunfundedrequirement.

● FullysupportsthePresident'sinitialbudgetrequestfortheArmoredMultipurposeVehicle

program. ● FullysupportsthePresident'sinitialbudgetrequestfortheJointLightTacticalVehicleprogram. ● DirectstheSecretaryoftheArmytoprovidealong-terminvestmentstrategythatsufficientlyfunds

improvementsandneededmodernizationforArmyAmmunitionPlantstohelpimprovesafetyandcapacity.

● DirectstheSecretaryoftheArmytodevelopacomprehensivemodernizationstrategyforthe

totalArmytoincludeadetaileddescriptionofitscombatvehiclemodernizationprioritiesoverthenext5and10years.ThisstrategywillexplicitlyaddresstheArmy'svision,endstate,keyobjectives,warfightingchallenges,andrisks.

MaintainingAirDominanceTestimonyfromseniorNavyandMarineCorpsleadersthisyearhaveindicatedthatover60percentofDepartmentofNavyF-18scannotfly.Worse,thetwoservicesareshortover100aircraft.SeniorAirForceofficialshavealsostatedthat“wehavebecomeoneofthesmallest,oldest-equipped,andleastreadyforcesacrossthefull-spectrumofoperations,intheAirForce’shistory…”TheNDAAprovidestheauthorityfortheprocurementofEconomicOrderQuantitiesforF-35JointStrikeFighterstoreducecoststothetaxpayerbyauthorizingbulkprocurementofcommonmanufacturingmaterialswhilealsorequiringcontinuedoversightthroughDODcertificationsregardingdesignstabilityandcostsavingsestimates.ItalsodirectsareportontheextensionoftheSystemDesignandDevelopment(SDD)phaseoftheF-35JointStrikeFighterprogram,whichisexpectedtofinishinFY18.TheNDAAfullyfundsresearch,development,testandevaluationoftheMQ-25Aunmannedaerialtanker.Primarily,thisnewcarrier-basedassetwillenablethecarrierairwing(CVW)toincreaseitsstrikingrangebyhundredsofmiles,thusenablingCVWaircrafttopenetratedeeperintocontestedairspace.Secondarily,theMQ-25Awillbecapableofcollectingandsharingintelligence,surveillanceandreconnaissanceinformation.Ineffect,theMQ-25AwillactasaforcemultiplierbyincreasingsituationalawarenessofemployedforceswhileincreasingthenumberofF-18savailableforcombatmissionsbyeliminatingthecurrentrequirementfortheseassetstoprovideairrefuelingsupport.TogeneratebettercostsavingsforthetaxpayerandprovideneededcapabilitytotheNavyandMarineCorps,theNDAAauthorizesmultiyearprocurementauthoritiesforV-22Ospreytiltrotoraircraft.

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Itprovidesanadditional$522.0millionfor6V-22aircraftsupportingNavyandMarineCorpsunfundedrequirements;anadditional$103.0millionforA-10wingupgradestoaddressanAirForceunfundedrequirement;andanadditional$220.5millionfor7AH-1ZattackhelicopterstohelpaddressanunfundedrequirementfortheMarineCorps.EachoftheseinvestmentswasidentifiedasacriticalrequirementbythemilitaryservicesandvalidatedbySecretaryMattis.StrikeFighterShortfallTohelpaddressstrike-fightercapabilityandcapacityshortfalls,theNDAAincludesover$2.5billioninadditionalfundingtoprocureadditionalF-35As,F-35BsandF-35Cstoaddressunfundedrequirementsandhelpaccelerateneeded5thgenerationstrike-fightercapabilitytotheAirForce,NavyandMarineCorps.Thebillalsoprovidesanadditional$739.0milliontoprocure10additionalF/A-18E/FSuperHornetstosupportaNavyunfundedrequirement.ArmyAviationToaddressunfundedrequirementsandtoacceleratemodernizationofArmyrotorcraftfortheActiveandReserveComponents,theNDAAprovidesadditionalfundingforUH-60MBlackhawks,AH-64EApaches,andCH-47FChinookhelicopters,specifically:● $108.0millionfor5UH-60MsfortheArmyNationalGuard ● $273.7millionfor8AH-64Es ● $108.0millionfor4CH-47FBlockIs ● $246.5millionfor4MH-47Gs ● $16.7millionfor3UH-60Vs CriticalMunitionsTheConfereesremainconcernedaboutshortfallsincriticalmunitions.Toaddressthisgap,theNDAAauthorizesadditionalfundingforcriticalmunitionsinwarreserves,improvesthemanufacturingcapacityofthemunitionsindustrialbase,andaccelerateslongrangeprecisionfiresprograms.TheNDAA:● Providesadditionalfundingforcriticalmunitionstoaddressshortfallsinwarreserves,improve

themanufacturingcapacityofthemunitionsindustrialbase,andacceleratelong-rangeprecisionfiresprograms.

● SupportsthePresident’srequestforJointDirectAttackMunitionsandSmallDiameterBombs,

criticalmunitionsbeingusedinOperationINHERENTRESOLVEtomaximizecurrentproductioncapacityforthesemunitions.

● Authorizesanadditional$100milliontoaddressanunfundedrequirementforcriticallyneeded

modernizationeffortsrequiredtoimprovecapacityandsafetyatArmyAmmunitionPlants,and

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directsabriefingfromtheSecretaryoftheArmyonthelong-terminvestmentstrategyformodernizationoftheseplants.

● Authorizesanadditional147lowertierairandmissiledefenseinterceptorstofullymeetthe

Army’srequirement. ● SupportsthebudgetrequestforArmyandMarineCorpsGuidedMultipleLaunchedRocket

Systems(GMLRS),ahighprioritymunitionforgroundforces.TheNDAAmaximizescurrentproductioncapacityforGMLRSbyprovidinganadditional$14.5milliontoaddressanArmyunfundedrequirementthatwouldprovidethetoolingnecessarytoincreasemaximumproductionratesforGMLRSrockets.

● Authorizesanadditional$69.4millionforArmyTacticalMissiles,acriticallyneededsurface-to-

surfacemunitionforfullspectrumoperationsandlong-rangefires. ● Authorizesanadditional$183.5milliontoaddressanArmyunfundedrequirement

tomaximizeproductioncapacityofExcalibur155mmprecisionguidedartilleryrounds. ISRIntelligence,Surveillance,andReconnaissance(ISR)isacriticalcapabilityofourmilitarythatenableswarfighterstoeffectivelybuildsituationalawarenesstomitigateoperationalriskwhileaccomplishingtheirmissions.RepeatedtestimonyfromseniormilitaryleadersindicatesasignificantISRshortfallwithinmultipleintelligencedisciplines.TheNDAAmakesprogressonaddressingthisshortfallbystrengtheningandimprovingISRinvestmentstrategiesinordertobettermeetcombatantcommanderISRrequirements.Italso:prohibitstheretirementoftheU-2andRQ-4GlobalHawk,supportsanimprovedandacceleratedacquisitionstrategytorecapitalizeE-8CJointSurveillanceTargetingandReconnaissanceSystemplatforms;authorizesanadditional$60millionfor6ExtendedRange(ER)ImprovedGrayEagle(IGE)AirVehicles;supportsincreasedfundingfordevelopmentofISRsensorssupportingtheU-2,MQ-4,andwide-areamotionimagerycapabilities;and,addressesadministrativedeficienciesrelatedtoNationalGuardaccesstoDOD-ownedandallocatedunmannedaircraftsystemsthatsupportindividualState’sdisaster-responseandotheroperationalandtrainingmissions.TheNDAAalsoappointstheChairmanoftheJointChiefsofStaffastheISRfunctionalmanagerforintegration,synchronization,andallocationoftheDepartment’sairborneISRcapabilitiestoefficientlyandeffectivelysupportISRrequirementsofthecombatantcommanders.StrykerCombatVehicles TheNDAAauthorizesanadditional$348.0millionfor116doubleV-hullStrykercombatvehiclesinordertocompletethe4thStrykerBrigadeCombatTeamvehiclesetofthesehighlysurvivablecombatvehicles.ThisinvestmentwasidentifiedasacriticalrequirementbythemilitaryservicesandvalidatedbySecretaryMattis.

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Italsoauthorizesanadditional$177milliontobeginequippingasecondSBCTwitha30mmcannonlethalityupgrade,whichaddressanotherArmyunfundedrequirement.MarineCorpsCombatVehiclesTheNDAAsupportsthePresident'sinitialbudgetrequestfortheAmphibiousCombatVehicleIncrement1.1program,authorizing$161.5millionfor26lowrateproductionvehicles.Short-RangeAirDefenseTheArmyhasidentifiedsignificantcapabilityandcapacityshortfallsinshort-rangeairdefenseartillery(SHORAD)forcestructureandposture.Givencurrentandemergingthreats,toincludetheproliferationofsmall,unmannedaircraftaswellasnear-peerandpeercompetitor'santi-accessandareadenialcapability,thiswasahighpriorityforthecommittee.TheNDAAprovidesanadditional$632.0milliontofullysupportArmyunfundedrequirementsforSHORAD.ElectronicWarfareToenhancecapabilitiesacrossanarrayofelectronicwarfaresystems,theNDAAsupportsprogrammaticincreasesrelatedtogroundandairborneunfundedrequirementsofover$60.0million.

FORCEPROJECTION&STRATEGICPRESENCE

TheNDAAprioritizesforceprojectionoftheU.S.Militaryanditsabilitytomaintainastrategicpresence.InordertoadvancetheChiefofNavalOperationsvisionofa355-shipNavy,theConfereesbelievethatlong-termcontractswiththeshipbuildingindustryareessentialtoreducingcostsanddeliveringtheshipsweneed.TheNDAAprovidesauthorityfortheDepartmentoftheNavytoenterintolongtermcontractsforArleighBurkeclassdestroyersandVirginiaclasssubmarines.Thesefive-yearcontractsareprojectedtosavealmost15percentoveratypicalprocurementthatordersshipsonanannualbasis.NationalSea-BasedDeterrenceFundTheDepartmentoftheNavy’shighestpriorityforthefutureisthetimelyprocurementof12Columbia-classballisticmissilesubmarines.Manyofthecomponentsassociatedwiththesesubmarinesarecommonacrosstheunderseaindustrialbase.TheConfereesbelievethatefficienciescanbeobtainedbyprocuringcommonequipmentwithothersimilarplatformssuchastheVirginia-classattacksubmarinesandFordclassaircraftcarriers.ThebillexpandstheNavy’sabilitytoefficientlyprocure

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additionalequipment,savingseveralhundredmilliondollarswitheachsubmarineandaircraftcarrier.AcceleratingtheFutureNavyFleetInkeepingwiththePresident’spledgetogrowthefleet,theNDAAaddsanadditionalfivebattleforceshipsincludinganArleighBurkeclassdestroyer,twoLittoralCombatShips,aPuller-classExpeditionarySupportBase,andaSanAntonioclassAmphibiousLandingPlatform.Italsosupportsadvanceprocurementforattacksubmarines.ThisisinadditiontotheeightshipsthatwererequestedbytheAdministrationandtakesadvantageofhotproductionlinestodelivertherightcapabilitiesatthelowestcosttothetaxpayers.LongRangeStrikeTheabilityofAirForcebomberstoholdtargetsatriskaroundtheglobewithconventionalornuclearweaponsisdiminishingasadversarycountriesaddhighlysophisticatedairdefenseweaponssystemstotheirarsenals.TheNDAArecognizesthiscriticalchallengetoairpowerandfullysupportsthedevelopmentoftheadvancedstealthB-21program,whichisintendedtorecapitalizetheagingbomberfleetsstartinginthemid-2020s.Airlift,SpecialMissionandAirRefuelingTankersAirliftandairrefuelingaircraftextendthereachofthemilitaryenablingittoconductoperationsonaglobalscale.Theseassetsmustalsooperatethroughoutincreasinglycontestedairspace.TheNDAAboostsAirForceprocurementbyaddingfundsforanadditional2KC-46Aairrefuelingaircraft,6MC-130Jand1HC-130Jspecialmissionaircraft.Italsoprovidesfundstoupgradethepropulsionsystemsof20C-130HtacticalairliftaircraftandfundsupgradedLargeAircraftInfraredCountermeasuresdefensivesystemsforC-5,C-17,andC130aircraftidentifiedontheservice’sunfundedrequirementslist.Inaddition,thebillprovidesfundstoprocureanadditional3P-8A,and4KC-130JaircraftfortheNavyandMarineCorps.ArcticOperationsTheUnitedStateshasfallensignificantlybehindothernationstomaintainassuredoperationsintheArctic.WhiletheHouseArmedServicesCommitteebelievesthattheseoperationsarebestmanagedbytheUnitedStatesCoastGuard,theNDAAprovidestheauthorityforthefirstpolaricebreakertobegintherecapitalizationofexistingCoastGuardfleet.ItalsoprovidesaprocesstoensureastreamlinedacquisitiondecisionprocessthatbetweentheUnitedStatesCoastGuardandtheUnitedStatesNavytoensurethisicebreakercapabilityisdeliveredontimeandwithinbudget.Finally,theNDAArequirestheSecretaryoftheNavytoprovideareporttoCongressonexistingArcticcapabilitiesandanygapsthatexistwiththeoverallArcticrequirements.

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ExpandingtheMerchantMarineWithanaverageageofalmost40years,shipsintheReadyReserveForcearequicklybecomingoutdatedandunabletomeetthesurgesealiftmission.TheNDAAendorsestheAdministration’splanofextendingthecurrentfleet,procuringusedvesselsandsupportingstepstobeginaconstructionprogram.TheNDAAspecificallyauthorizestheprocurementoftwousedsealiftvessels,acableship,andrequestsacomprehensiveplantodeveloptheoverallReadyReserveForce.Furthermore,theNDAAexpandssupportfortheMaritimeSecurityProgramandauthorizes$300milliontoretaincommercialassetsformilitaryuse.Finally,thebillauthorizes$35millionforsmallshipyardgrantstoexpandthecapabilitiesofourexistingmaritimeindustry.