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Analysis of Conference Agreement on the FY2008 Defense Authorization Bill (H.R. 1585/S. 1547)

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by Christopher Hellman [contact information]

by Travis Sharp [contact information]

December 12, 2007

The House and Senate conferees completed their work on H.R. 1585, the FY'08 Defense Authorization bill, on December 6. The bill includes $506.9 billion for the Department of Defense and the nuclear weapons activities of the Department of Energy. The bill also authorizes $189.4 billion for military operations in Iraq and Afghanistan. This funding is NOT counted as part of the $506.9 billion.

The full House is expected to take up consideration of the legislation on Wednesday, December 12.

In order to maintain accounting transparency, this analysis divides base budget and war-related authorizations. For war-related spending and authorization, see "Title XV - Ongoing Operations in Iraq and Afghanistan" below.

For additional information on the Fiscal Year 2008 defense budget, visit the National Security Spending section of the Center's website.

BASE BUDGET

HIGHLIGHTS

Reliable Replacement Warhead (RRW) - Provides $66 million in funding for the Reliable Replacement Warhead (RRW), $22.8 million below the request, and restricts RRW program activities to phase 2A levels or below, design definition and cost study.

DoD Cooperative Threat Reduction Program ("Nunn-Lugar") - Increases funding by $80 million from administration request to $428 million, expands the program to countries outside the former Soviet Union, and repeals all the required annual certifications that encumbered the program.

Conventional Trident Conversion Program – The administration requested $175.4 million for research and development and advanced procurement for the Navy's program to convert a portion of the Trident ballistic missile submarine fleet to launch conventionally armed missiles. The conference agreement includes no funding for Trident conversion, and allocates $100 million for conventional "Prompt Global Strike" program. Under General Provisions, conferees also extended annual reporting requirements on prompt global strike capabilities through 2009.

Missile Defenses in Europe – Reduces the budget request of $310.4 million for deployment of the proposed European missile defense system by $85 million to limit the use of funds for construction or deployment until Poland and the Czech Republic approve deployment.

National Missile Defense Deployment - Requires a certification from the Secretary of Defense that the Block 2006 Ground-based Midcourse Defense (GMD) system is operationally effective before deploying more than 40 Ground-Based Interceptors (GBIs) at Fort Greely, Alaska.

Iran Missile Defense Deployment - States that the policy of the United States is to develop, test, and deploy an effective defense against Iranian ballistic missile threats, and to encourage the North Atlantic Treaty Organization to accelerate its missile defense efforts.

End Strengths – The Defense Department plans to permanently increase the active Army's end strength to 547,000, and the active Marine Corps's to 202,000 by fiscal year 2012. This year's request increases their end strengths by 7,000 and 5,000, respectively. The Conference agreement speeds the growth of both branches, and increases the Army's end strength 36,000 above the request (to 525,400), and the Marine Corps 9,000 above the request (to 189,900).

U.S. Strategic Posture Commission – Establishes a 12 member congressional commission "to look at the strategic posture of the United States in the broadest sense," meaning that "conventional force structures, as well as nuclear force structures, must be included in the overall review and assessment of the strategic posture of the United States." The commission is asked to include a threat assessment, a detailed review of nuclear weapons policy and strategy, and an examination of non-nuclear alternatives to nuclear weapons (both kinetic and non-kinetic). The Commission's report would be due December 1, 2008.

No Permanent Bases, Control of Oil Resources in Iraq – Prohibits funding being used to establish permanent bases or exercise control over oil resources in Iraq, extending the provision already in effect for FY2007 (Section 1222). However, the bill follows the Senate's language and only extends the prohibition through FY'08. The House language sought to prohibit funding for these purposes "in this or any other act."

Wounded Warriors Act – Creates the Wounded Warrior Resource Center as a single point of contact for service personnel, family members, and caregivers to report issues with facilities, obtain care, and receive benefits information.

Nuclear Posture Review – Directs the Secretary of Defense and Secretary of Energy to conduct a review of the nuclear posture of the United States for the next 5 to 10 years. The new nuclear posture review (NPR) would be submitted to Congress in December 2009 (Section 1070). The Bush administration hasn't conducted a thorough assessment of U.S. nuclear doctrine and policy since the 2001 Nuclear Posture Review.

Hate-Crimes Legislation - The conference agreement eliminated the Senate-passed hate crimes provision.

FUNDING PROVISIONS

Total Funding (Function 050)

Procurement

Research, Development, Testing & Evaluation

Operations & Maintenance

Personnel

Military Construction

Department of Energy Defense Activities (Function 053)

MAJOR WEAPONS SYSTEMS

[Note: Title XV of the bill, which funds ongoing military operations in Iraq and Afghanistan, contains additional funding for a number of these programs. See below.]

AIRCRAFT

F/A-22 "Raptor" Fighter

Joint Strike Fighter

F/A-18E/F "Super Hornet" Fighter

EA-18G Radar Jamming Aircraft

V-22 "Osprey" Tilt-rotor

C-130J Transport Aircraft

C-17 Globemaster Transport Aircraft

BALLISTIC MISSILE DEFENSE

DDG-1000 "Zumwalt" Destroyer [DD(x)]

Carrier Replacement Program (CVN-21)

LPD-17 "San Antonio" Amphibious Assault Ship

LHA Replacement Vessel (LHA-R)

SSN-774 "Virginia" Class Submarine

Littoral Combat Ship (LCS)

ARMY PROGRAMS

Stryker Interim Armored Vehicle (IAV)

Future Combat System

Armed Reconnaissance Helicopter

UH-60 Blackhawk Helicopters

NON-PROLIFERATION PROGRAMS

Dept. of Energy Nonproliferation Programs

DoD Cooperative Threat Reduction Program ("Nunn-Lugar")

DEPARTMENT OF ENERGY NUCLEAR WEAPONS-RELATED ACTIVITIES

National Nuclear Security Administration

Environmental and Other Defense Activities

LEGISLATIVE PROVISIONS

Pay and Benefits - Authorizes a 3.5 percent across-the-board pay raise for military personnel, 0.5 percent more than the administration's request. The pay raise would become effective January 1, 2008.

General Transfer Authority – Authorizes $5 billion in transfer authority for shifting money between different DOD accounts.

Guard and Reserve Equipment - Provides $980 million for depleted equipment stocks.

Airborne Laser Program (ABL) – Provides $513.8 million, $35 million below the request. The House provided $298.8 million, and the Senate included $348.8 million

Increase in Maximum Hardship Duty Pay – Increases the maximum monthly amount of hardship duty pay to $1500 from $750. Hardship duty pay was increased from $300 to $750 in the FY'06 National Defense Authorization bill.

"Substantial Savings" in Multiyear Contracts as 10 Percent – Defines "substantial savings" under section 2360b(a)(1) of title 10, U.S. Code, to mean savings that exceed 10 percent of the total costs of carrying out a weapon acquisition program through annually approved contracts. This provision can be waived if DOD presents "an exceptionally strong case." The historic benchmark for "substantial" savings was 10 percent, and U.S.C. 2360b used to contain that definition, but it was removed years ago. The FY'08 Defense Authorization therefore restores the historic definition.

Commission on Wartime Contracting in Iraq and Afghanistan – Creates an eight member Commission on Wartime Contracting to review federal contracting for reconstruction in war zones, and to review contracting for logistical support of coalition forces. The Commission's initial report would be due January 15, 2009.

U.S. Space Protection Strategy – Calls on the Secretary of Defense and Director of National Intelligence to set forth the policy of the United States "with respect to the priority within the Nation's space programs on the protection of national security space systems." The strategy must explain planning through 2025 and the first report on the strategy would be due six months after the date of enactment. The conferees highlighted "the growing threat to and vulnerability of" U.S. space assets, especially after the "January 11, 2007 Chinese anti-satellite test and other counterspace developments." Conferees suggest that Space Situational Awareness capabilities "could mitigate such vulnerabilities but continue to be under-funded."

Destruction of U.S. Chemical Weapons Stockpile – Conferees included a sense of the Congress that the United States should "remain committed to making every effort" to destroy its chemical weapons stockpile by April 2012, the deadline included in the Chemical Weapons Convention. However, conferees included a binding provision that requires the destruction of the stockpile by December 31, 2017. Progress and "accelerated funding options" reports, including life cycle cost estimates for each facility, are required to survey what it will take to complete destruction by 2017.

Nuclear Power Systems for Major Combatant Naval Vessels – Requires that all new classes of submarines, aircraft carriers, cruisers, large escorts for carrier strike groups, expeditionary strike groups, and vessels comprising a sea base have integrated nuclear power systems. The Navy's first test under this new requirement will be the next generation cruiser CG(X) (which will now become the "CGN(X)" to reflect nuclear power system).

Non-Federal Development of Chemical Agent Defense – Authorizes the Secretary of Defense to provide small quantities of toxic chemicals or their precursors to a State or local government, or a private entity incorporated in the United States, for development or testing of material designed to be used for defensive purposes. All such transfers must be consistent with the Chemical Weapons Convention.

Prohibition on F-14 Aircraft Fighter Parts - Prohibits the sale and issuance of export licenses for F-14 fighter parts, with an exception for museums and other organizations involved in restoration of aircraft for historical purposes. Conferees encourage DOD to "scrap" F-14s, F-14 spare parts, and the tools used to make them.

Study on U.S. Airlift Force – Requires the Secretary of Defense to conduct a study on the size and mix of various assets for the Air Force airlift force, with a particular focus on current and planned capabilities and costs of the C–5 aircraft and the C–17 aircraft fleets.

WMD Civil Support Teams – Authorizes the creation of two additional Weapons of Mass Destruction Civil Support Teams. These National Guard-equipped and certified teams' mission is to assist local first-responders in determining the nature of a terrorist attacks, provide medical and technical advice, and pave the way for identification and arrival of follow-on assets.

Commanders' Emergency Response Program (CERP) – Provides $977 million per year in CERP funding for FY'08 and FY'09.

Pakistan Frontier Corps – Allows the Secretary of Defense to use up to $75 million in O&M funds during FY'08 to enhance the ability of the Pakistan Frontier Corps to conduct counterterrorist operations along the border between Pakistan and Afghanistan. Authorized assistance may include equipment, supplies, and training.

TITLE XV - ONGOING OPERATIONS IN IRAQ AND AFGHANISTAN

Section 1008 of the National Defense Authorization Act for Fiscal Year 2007 required the Defense Department to include in its annual budget request for future fiscal years detailed information on military operations in Iraq and Afghanistan previously funded through emergency supplemental appropriations. In February, the Defense Department request for continued operations in Iraq and Afghanistan was $141.8 billion for FY'08.

The White House subsequently made two additional supplemental requests, one in July for $5.3 billion for Mine Resistant Ambush Protecting (MRAP) vehicles, and one in October for $42.3 billion in additional funding for general military operations in Iraq and Afghanistan. In all the administration has requested $189.3 billion in supplemental funding for Fiscal Year 2008. The conference agreement authorizes $189.4 billion for military operations in Iraq and Afghanistan.

For more information and analysis on operations in Iraq and Afghanistan, check out these Center analyses: "Iraqi Security Forces Still Far From Independent" (Dec. 6), "CBO Says $1.765 Trillion to $2.365 Trillion for Iraq and Afghanistan by 2017" (Oct. 24), "White House War Funding Request Highlights Skyrocketing Pentagon Spending" (Oct. 23), "Cross Your Fingers: V-22 Ospreys Off to Iraq" (Sep. 28), and "The Next Korea? Estimated Cost of a Long-Term U.S. Presence in Iraq" (Sep. 28).

HIGHLIGHTS

Iraq and Afghanistan Security Forces – Fully funds the $3 billion request for the Iraq Security Forces Fund and the $2.7 billion request for the Afghanistan Security Fund.

Readiness – Provides $1 billion in unrequested funding for the Strategic Readiness Fund.

Improvised Explosive Devises (IEDs) – Provides $4.5 billion for the Joint IED Defeat Office (JIEDDO), $272 million above the request

Special Transfer Authority – Provides $3.5 billion in transfer authority for shifting money for war-related expenditures between different DOD accounts.

FUNDING PROVISIONS

NOTE: The funding levels shown below reflect the Defense Department's original February request, plus the amended amounts including the additional October request. Both the House and Senate completed work on their respective versions of the bill before the White House released the request for the additional $42.3 billion, so the figures shown for the House and Senate are based only on the original February request. The final conference figures are based on the total requests made for FY'08.

Total Funding

Procurement

Research, Development, Testing & Evaluation

Operations & Maintenance

Personnel

Military Construction

MAJOR WEAPONS SYSTEMS

Mine Resistant Ambush Protected vehicles (MRAP) - Includes $11.8 billion for MRAP, the cumulative amount requested.

F/A-18E/F Fighter Aircraft (Navy)

F-35 Joint Strike Fighter

V-22 "Osprey" Tilt-rotor

C-130J Transport Aircraft

C-17 Globemaster Transport Aircraft

Stryker Interim Armored Vehicle (IAV)

Armed Reconnaissance Helicopter

UH-60 Blackhawk Helicopters

SOURCES

National Defense Authorization Act for Fiscal Year 2008 Conference Committee Report 110-477 (PDF), released December 6, 2007.

National Defense Authorization Act for Fiscal Year 2008 Senate Committee Report 110-77 (PDF), released June 5, 2007.

National Defense Authorization Act for Fiscal Year 2008 House Committee Report 110-146 Part 1 (PDF) and Part 2 (PDF), released May 14, 2007.

National Defense Authorization Act for Fiscal Year 2008 bill text (PDF) as of October 4, 2007.

Senate Armed Services Committee summary and press release (PDF), released December 6, 2007.

House Armed Services Committee summary and press release (PDF), released December 6, 2007.

Defense Department's Fiscal Year 2008 Budget Request, released February 2007.

Christopher Hellman 202-546-0795 chellman@armscontrolcenter.org

Christopher Hellman is the Military Policy Fellow at the Center for Arms Control and Non-Proliferation where his work focuses on national security spending, military planning and policy, trends in the defense industry, global military spending, and homeland security. Hellman is a frequent media commentator on these issues. Previously, Hellman worked for the Center for Defense Information, Physicians for Social Responsibility, and spent ten years as a congressional staffer working on national security and foreign policy issues.

Travis Sharp 202-546-0795 ext. 2105 tsharp@armscontrolcenter.org

Travis Sharp is the Military Policy Analyst at the Center for Arms Control and Non-Proliferation. He is a frequent media commentator and has published letters and articles in the New York Times, Los Angeles Times, Washington Post, Parameters, Peace Review, United Press International, The Hill, IraqSlogger, and Politico.