Department of Defense Authorization Act, 1986

(Conference report filed in House, H. Rept. 99-235) Department of Defense Authorization Act, 1986 - Title I: Procurement - Part A: Funding - Authorizes appropriations for FY 1986 for procurement by the Army of aircraft, missiles, weapons, tracked combat vehicles, ammunition, and for other procurement. Merges appropriations for FY 1986 for specified procurement with specified amounts remaining available from FY 1984 and 1985. Permits the Secretary of the Army to enter into multi year contracts for the purchase of T-700 series engines, various components of the M1 and M1A1 tank, and the transmission system for the Bradley Fighting Machine. Prohibits the Secretary from entering into a multiyear contract for procurement of the Armored Combat Earthmover. Removes a limitation on contractors for 120-millimeter mortar. Authorizes the continued use of funds appropriated for FY 1985 for the multiple launch rocket system (MLRS) for materials and components for such system. Authorizes appropriations for FY 1986 for procurement by the Navy and Marine Corps of aircraft, weapons, shipbuilding and conversion, and for other procurement. Merges such appropriations with amounts remaining available from FY 1985 and prior years for such purposes. Permits the Secretary of the Navy to enter into multiyear contracts for the procurement of LHD-1 class amphibious assault ships and MK-46 torpedoes and modification kits. Prohibits the Secretary from entering into such a contract for the procurement of the P-3C Orion antisubmarine warfare patrol aircraft. Authorizes appropriations for FY 1986 for procurement by the Air Force of aircraft, missiles, and other procurement. Authorizes the transfer of prior-year funds for such procurement for use in FY 1986. Authorizes appropriations for FY 1986 for reserve components of the armed forces. Authorizes appropriations for FY 1986 for the defense agencies. Authorizes appropriations for FY 1986 to the Secretary of Defense for acquisition in connection with cooperative defense programs of the North Atlantic Treaty Organization (NATO). Prohibits the use of such funds until the Secretary of Defense submits to the Armed Services Committees a copy of each government-to-government agreement or if the U.S. obligation exceeds the collective obligation of the involved European countries. Extends through FY 1986 the authority of the Secretary of Defense, in carrying out the Multilateral Memorandum of Understanding Between the NATO Ministers of Defense concerning the NATO AWACS program, to waive reimbursement for the cost of specified functions performed by certain personnel and to assume contingent liability for program losses and specified charges. Authorizes certain reductions in the FY 1986 authorization of appropriations for the armed forces and the defense agencies for certain specified procurement. Prohibits the Secretary of Defense from implementing such a program reduction until a report on such reductions is submitted by the Secretary to the Senate and House Armed Services Committees. Expresses the sense of the Congress that the United States should place greater emphasis on the improvement of the capabilities of U.S. conventional forces. Part B: Army Program Limitations - Prohibits the Secretary of the Army from obligating funds for the production and assembly of the Sergeant York Air Defense Gun system until certain tests have been completed and certain specified reports have been made. Requires a performance guarantee of such system from the Secretary of the Army. Requires the Secretary of Defense to submit certain reports concerning testing results of the Bradley Fighting Vehicle to the Senate and House Armed Services Committees. Describes testing procedures and information to be included in such reports. Requires Phase 1 of such report no later than December 1, 1985, and Phase 2 of such report no later than June 1, 1986. Requires the Secretary of Defense to assure that no contract is entered into by the Department of Defense (DOD) for the procurement of any newly-developed combat vehicles until certain testing has been completed and certain congressional reporting requirements (concerning the results of such testing) have been met. Makes certain limitations on the sale of L119 howitzers to friendly foreign governments. Prohibits the Secretary of the Army from procuring five-ton trucks for the Army until the Secretary certifies to the Armed Services Committees of the Senate and House of Representatives that each truck has undergone certain testing and meets specified qualifications. Authorizes the Secretary to extend for up to 18 months the current multiyear contract for the procurement of five-ton trucks. Authorizes the Secretary to award a new multiyear contract for such truck procurement by May 1, 1986, such contract to extend for a period of five fiscal years. Requires the Secretary, by February 1, 1986, to notify the Armed Services Committees of the Senate and House of Representatives if such contract-awarding date is impracticable. Sets aside a specified amount of authorized funds for the Copperhead projectile program. Authorizes the Secretary of the Army to purchase certain safety modifications in carrying out the Pershing II missile program. Requires the Secretary to report to the Senate and House Armed Services Committees before purchasing any such modifications. Prohibits the Secretary of the Army from obligating funds for the procurement of AH-64 Apache attack helicopters until the Director of the Defense Contract Audit Agency certifies certain findings concerning such helicopters to the Secretary. Part C: Navy Program Limitations - Authorizes the Secretary of the Navy to undertake a program to replace the wings of the A6 aircraft, as long as certain warranties are made. Authorizes the transfer of certain prior-year unobligated funds for such program. Sets certain limitations on the procurement of A6E and F14 aircraft. Part D: Forces Program Limitations - Prohibits any more than 12 MX missiles from being procured from FY 1986 Air Force missile procurement funds. Prohibits the number of MX missiles deployed at any time from exceeding 50. Directs the Secretary of the Air Force, during FY 1986, to establish a competition for Air Force fighter aircraft procurement. Directs the Secretary of Defense, not later than February 1, 1986, to report to the Congress on the total program cost of the advanced technology bomber. Prohibits the expenditure of any funds for such program until such report is received. Sets aside a specified amount of authorized funds for the modification of HH-53 helicopters, to be obligated after the Secretary of the Air Force makes certain certifications concerning such helicopters. Part E: Other Limitations - Requires C-12 aircraft to be procured through competitive procedures. Requires the Secretary of Defense to ensure adequate airlift capability for specified units of the special operations forces. Title II: Research, Development, Test, and Evaluation Part A: Authorizations of Appropriations and Program Limitations - Authorizes appropriations for FY 1986 to the armed forces and the defense agencies for research, development, test, and evaluation. Authorizes appropriations for FY 1986 for pay, retirement, and employee benefits for civilian employees of DOD. Reduces the FY 1986 authorizations for research, development, test, and evaluation to the armed forces in specified amounts, due to prior-year cost savings. Authorizes the transfer of specified prior-year funds, to be merged with FY 1986 authorizations for the armed forces and defense agencies. Describes the source of such transferred funds. Requires a report from the Secretary of Defense to the Senate and House Armed Services Committees before any such reductions or transfer of funds occur. Sets aside specified FY 1986 authorizations for specified missile and tank programs. Directs the Secretary of the Army, no later than December 15, 1985, to submit to the Senate and House Armed Services Committees a report concerning the AGT-1500 tank engine and the Advanced Integrated Propulsion System. Sets aside specified FY 1986 authorizations for specified Navy programs. Directs the Secretary of the Navy, no later than December 15, 1985, to submit to the Senate and House Armed Services Committees a report concerning the Low-Cost Anti-Radiation Seeker Program. Requires the Secretary to also make certain written certifications to such committees concerning the SSN-21 Combat System Advanced and Engineering Programs. Prohibits the obligation of funds for the Rolling Airframe Missile program or the NATO Sea Sparrow program until the Secretary of the Navy makes certain certifications to the Senate and House Armed Services Committees. Requires competitive procurement for the acquisition of certain anti-submarine warfare training systems. Sets aside specified FY 1986 authorizations for specified Air Force programs and defense agency programs. Sets aside specified FY 1986 authorizations for the Joint Tactical Information Distribution System program. Requires the Secretary of Defense to take certain steps before such funds are obligated. Requires the President to make a determination and certification to the Congress before testing the miniature homing vehicle antisatellite warhead. Allows no more than three tests of such system before October 1, 1986. Sets aside specified funds for the Air Force Space Survivability Program. Sets aside specified 1986 funds for research, development, test, and evaluation with respect to the small mobile intercontinental ballistic missile (ICBM) program. Requires the Secretary of the Air Force, before any decision is made regarding the full-scale development of the small ICBM program, to submit to the appropriate congressional committees a legislative environmental impact statement with respect to such program. Sets aside specified FY 1986 funds for the Advanced Medium-Range Air-to-Air Missile (AMRAAM) program. Prohibits a certain amount of such funds from obligation until the Secretary of Defense submits a specified certification concerning such program to the Senate and House Armed Services Committees. Terminates such program on March 1, 1986, if the Secretary cannot make such certifications by that date. Prohibits the obligation of specified funds appropriated to the Navy and the Air Force until the Secretary of each certifies to the Congress certain findings concerning the testing and capability of the High-Speed Anti-Radiation (HARM) system. Requires each Secretary to report to the Congress any deficiencies found in the HARM system. Part B: Strategic Defense Initiative - Sets aside a specified amount of funds authorized for the defense agencies for FY 1986, to be used for the medical application of free-electron lasers and associated research. Requires certain certifications from the President to the Congress concerning the survivability and cost-effectiveness of the Strategic Defense Initiative (SDI) system before any deployment of such system may occur. Requires reports from the Secretary of Defense to the Congress concerning SDI, such reports being due at the same time that SDI appropriations are sought. Commends the President on his attempt to initiate cooperation between the United States and its NATO allies. Expresses the sense of the Congress that the President should continue such actions. Expresses the sense of the Congress that it fully supports the President's goal to reverse the erosion of the Anti-Ballistic Missile Treaty of 1972 and that the Congress' action in approving funds for SDI should not imply that the United States intends to abrogate such treaty. Directs the Secretary of Defense to conduct a study of U.S. defenses against ballistic missiles, and, not later than February 15, 1986, submit to the Congress a report containing the results of such study. Title III: Operation and Maintenance - Authorizes appropriations for the armed forces and defense agencies for FY 1986 for operation and maintenance, including funds for the reserve forces, the National Guard, the National Board for the Promotion of Rifle Practice, defense claims, and the court of Military Appeals. Authorizes additional appropriations for FY 1986 for: (1) unbudgeted increases in fuel costs and as a result of inflation; and (2) unbudgeted amounts for salary, pay, retirement, and other employee benefits for civilian DOD employees. Authorizes additional appropriations to the Army National Guard for specified purposes. Authorizes appropriations for FY 1986 for the working capital funds of the armed forces and defense agencies. Prohibits the use of DOD operation and maintenance funds to purchase expense items with a price of $3,000 or more. Authorizes the Secretary of Defense to provide logistical support, manpower, equipment, and other services in support of the Tenth International Pan American Games. Authorizes appropriations for such purpose. Authorizes appropriations to DOD for FY 1986 for the transportation of humanitarian relief supplies to Afghan refugees. Extends and expands the authority of the Secretary of Defense to transport humanitarian relief supplies to certain countries. Prohibits funds appropriated to the Air Force from being used to deactivate or divest any flying unit of the Air National Guard or Air Force Reserve. Directs the Secretary of Defense to allow commissary and exchange privileges to surviving dependents of reserve members who die while on active duty or while traveling to perform active duty or inactive duty for training. Title IV: Military Personnel Authorizations - Part A: Active Forces - Authorizes strengths for active duty personnel as of the end of FY 1986. Extends from FY 1985 to 1986 the limitation on the enlistment for active duty in the armed forces of persons whose scores on the Armed Forces Qualification Test is below a prescribed level. Part B: Reserve Forces - Authorizes average strengths for the selected reserve components of the armed forces for FY 1986. Permits the reduction and increase in such strength as specified. Increases the number of reserves to serve on full-time active duty in order to organize, administer, instruct, recruit, or train the reserve components. Permits the end strength levels to be increased by two percent in the national interest. Increases the number of certain personnel authorized to be on active duty in support of the reserve components. Part C: Military Training - Authorizes average military student loads for FY 1986 for the armed forces, to be adjusted in conformity with the previously-authorized personnel strengths. Title V: Defense Personnel Policy - Part A: Civilian Personnel - Waives the application of the civilian personnel ceiling for each component of the armed forces for FY 1986. Revises provisions concerning DOD personnel management end strengths for a fiscal year. Requires the Secretary of Defense and the Director of the Office of Management and Budget, no later than February 1, 1986, to each report to the Senate and House Armed Services Committees on DOD management of civilian personnel without a congressionally-imposed civilian end strength. Requires specified quarterly reports by the Secretary on the obligation of funds appropriated for DOD civilian personnel for FY 1986. Directs the President to furnish certain guidance to an interdepartmental group assembled to study security procedures with respect to Federal employees. Directs the Secretary of Defense to exercise certain authorities with respect to civilian DOD employees. Revises provisions concerning the employment of civilian faculty members of the Air Force Institute of Technology. Excludes such members from civil service classification. Directs the Secretary of Defense, not later than December 31, 1985, to submit to the Congress an evaluation concerning civilian employees of DOD and the retention of highly skilled professional personnel within DOD. Part B: Active Military Personnel - Increases the authorized number of majors in the Marine Corps. Revises provisions concerning service agreements of cadets of the U.S. Military Academy to define a breach of agreement by a cadet which would authorize the Secretary of the Army to transfer such cadet to the Army Reserve (in lieu of active-duty service). Similarly revises provisions concerning the service agreements of midshipmen at the U.S. Naval Academy and cadets at the U.S. Air Force Academy. Revises retirement provisions for members of the armed forces whose retirement is based upon physical disabilities incurred while entitled to basic pay to require such disability to be of a permanent and stable nature. Revises provisions concerning the discharge or reentry into duty of members with a temporary disability. Changes the name of the grade of commodore in the U.S. Navy to rear admiral (lower half). Increases the number of general officers and flag officers authorized to be on active duty in certain grades. Revises a provision concerning the grade of retired armed forces members who are recalled to active duty. Part C: Reserve Military Personnel - Extends certain reserve officer management programs through FY 1987. Authorizes the Secretary of the Army to retain in active status until age 60 an officer who: (1) is an officer in the Army National Guard; or (2) is employed as a technician in the National Guard or Army Reserve for which membership in such Guard or Reserve is required as a condition for employment, who would otherwise be removed from active duty because of years in service. Authorizes the Secretary of the Air Force to similarly retain officers employed as technicians in the National Guard or Air Force Reserve who would otherwise be removed from active duty because of years in service. Authorizes the Secretary of the Army to retain up to ten officers in the reserve grade of major general who would otherwise be removed from active duty because of years in service or grade. Directs the Secretary of Defense to conduct a test of the Army's ability to muster members of the Individual Ready Reserve in time of war or national emergency. Requires the Secretary to report on such muster test to the Committees on Armed Services of the Senate and House of Representatives not later than February 1, 1986. Part D: Miscellaneous - Revises provisions concerning the appointment of regular and reserve warrant officers. Authorizes the Secretary of the military department concerned to award a prisoner of war medal to former U.S. prisoners of war. Clarifies the precedence of the award of the Purple Heart. Amends the Uniform Code of Military Justice to establish under such Code the offense of espionage. Allows the death penalty for such offense to be imposed only when the offense directly concerned: (1) nuclear weaponry, military spacecraft or satellites, early warning systems, or other means of defense or retaliation against large-scale attack; (2) war plans; (3) communications intelligence or cryptographic information; or (4) any other major weapons system or major element of defense strategy. Provides procedures to be followed and factors to be considered during sentencing for such offenses. Title VI: Compensation and other Personnel Benefits - Part A: Basic Pay and Allowances - Prohibits adjustment to compensation levels of members of the uniformed services in conformity with adjustment to GS-level compensation of employees of the Federal Government during 1986. Increases by 3.0 percent, effective January 1, 1986, the rates of basic pay for all military personnel. Authorizes the payment of a variable housing allowance (VHA) for certain members of the armed forces who pay child support. Repeals the authority for the payment of a station housing allowance during FY 1985 for members assigned to a duty station in Alaska or Hawaii. Authorizes the payment in advance of the VHA and the basic allowance for quarters (BAQ). Revises provisions concerning the payment of a BAQ for members without dependents who are assigned to field duty or sea duty. Limits the amount available for FY 1986 for reimbursement for accommodations in place of quarters. Extends the authorization for the payment of such reimbursement through FY 1986. Increases the family separation allowance for members of the armed forces from $30 to $60 monthly. Part B: Travel and Transportation - Increases from one to two months the dislocation allowance for members and/or their dependents who make an authorized move in connection with such member's permanent change of duty station. Revises provisions which enumerate the general travel and transportation allowances for member and their dependents. Requires (currently allows) the payment of temporary lodging expenses for members making a permanent change of duty station. Authorizes the payment of a monetary allowance for members who perform all or a part of the labor in connection with the transportation of the baggage and household effects of a member making a permanent change of duty station. Requires a report by the Secretary of Defense to the Congress concerning such program no later than September 30, 1988. Authorizes a travel allowance for travel performed in connection with certain leave. Revises provisions concerning the allowance of travel expenses for members during a ship overhaul or inactivation. Defines the residence of a student dependent for purposes of the determination of the dependents' travel and transportation allowance. Authorizes the Secretary concerned to carry out a program to test a flat rate per diem system for travel allowances for travel performed by members of the armed forces while on temporary duty. Directs such program to begin October 1, 1985 and end September 30, 1986. Authorizes travel and transportation allowances for travel within the administrative limits of a member's duty station. Authorizes transportation allowances for survivors of deceased members in order to attend the burial ceremonies of such members. Part C: Bonuses and Special Incentive Pays - Subpart 1: Active Forces - Requires not less than 75 percent of a reenlistment bonus to be paid at the beginning of the reenlistment period, with any remaining amount paid in equal annual installments. Increases the special continuation pay for a Navy nuclear officer who agrees to extend his or her tour of duty for a specified period. Revises provisions concerning the period of agreement for such officers. Extends to September 30, 1990, the period during which an officer must sign a service-continuation agreement to be eligible for such special pay. Revises similarly special-pay provisions for individuals selected for officer naval nuclear power training who execute certain agreements to train for qualification in such field. Increases the bonus provided and extends until September 30, 1990, the agreement-execution date. Revises the annual incentive bonus provisions for nuclear-career officers to increase such bonus and extend to October 1, 1990, the period during which such bonuses shall be paid. Revises provisions concerning eligibility for such bonus pay. Increases incentive pay for submarine duty according to a revised table based on pay grade and years of service. Increases the monthly incentive pay for hazardous duty according to a revised table based on pay grades. Extends through September 30, 1987, aviation career officer continuation pay. Revises the definition of "engineering or scientific duty" for purposes of the determination of career continuation pay for officers performing in that line of duty. Increases the incentive pay for duty subject to hostile fire. Revises special pay for dental officers in the armed forces to establish annual special pay according to a schedule based on years of service. Provides additional special pay if such dental officers are board-certified. Repeals Federal law relating to continuation pay for dentists in the armed forces. Authorizes certain dental officers to execute new service agreements in order to be eligible for the increased special pay under this Act. Provides that a discharge in bankruptcy does not discharge a medical officer in the armed forces from repayment to the United States of any unearned portion of special pay paid to such officer. Increases the rate of monthly special pay for qualified enlisted members who extend their duty at designated overseas locations. Subpart 2: Reserve Forces - Increases Selected Reserve enlistment and reenlistment bonuses. Authorizes a prior-service enlistment bonus for former enlisted members who enlist in a certain unit of the Selected Reserve of the Ready Reserve. Requires repayment of any unearned bonus for those persons who fail to satisfactorily serve any agreed-upon enlistment or reenlistment period. Prohibits the payment of any bonus for an enlistment after September 30, 1987. Increases the Selected Reserve affiliation bonus and extends the eligibility date for payment of such bonuses to September 30, 1987. Extends through September 30, 1990, the enlistment and reenlistment bonus payments of the Individual Ready Reserve. Authorizes the payment of a bonus for the enlistment or reenlistment for a period of three or six years in the Individual Ready Reserve of a person with critical skills. Provides amounts of such bonuses, depending upon the length of service agreed to. Authorizes the Secretary of Defense to require muster or drill on an annual basis for those receiving such bonuses. Modifies the computation of hazardous duty incentive pay for members of the Selected Reserve. Part D: Health Care Matters - Authorizes the Secretary of Defense to establish dental benefit plans for spouses and children of members of the uniformed services who are on active duty for a period of more than 30 days. Requires members enrolling in such plan to pay a share of the member's premium. Prohibits such dental benefits from including a benefit other than: (1) diagnostic, oral examination, and preventive services and palliative emergency care; and (2) basic restorative and composite services and dental appliance repairs. Authorizes medical and dental care to dependents of members: (1) who are on active duty for more than 30 days or who die while on that duty; or (2) who die while in a certain status or traveling to perform in a certain status. Authorizes similarly CHAMPUS care for such dependents. Provides that no person under the jurisdiction of the Secretary of a military department may provide health-care independently as a health-care professional unless the person has a current license to provide such care. Allows the Secretary of Defense to waive such requirement in unusual circumstances. Provides civil penalties for the unlicensed practice of health-care. Excepts from such requirement during the three years beginning on the date of enactment of this Act any person who on the date of enactment of this Act is a member of the armed forces. Directs the Secretary of Defense to study procedures used by the military departments for medical casualty investigations of members who die or are seriously injured while on active duty. Outlines the scope of such study. Directs the Secretary, within one year after the enactment of this Act, to report the results of such study, together with recommendations, to the Congress. Part E: Military Retirement - Limits amounts available to DOD for military personnel accounts for FY 1986 for basic pay and payment into the Department of Defense Military Retirement Fund for each military department. Requires the Secretary of Defense, not later than September 15, 1985, to submit to the Congress a report proposing changes in the military nondisability retirement system. Outlines proposed changes to be included in such report. Specifies the accounting methods to be used in determining the cost of any changes in such retirement system. Part F: Educational Assistance Programs - Authorizes the Secretary of Defense to repay any loan made, insured, or guaranteed under part B of the Higher Education Act of 1965, or any loan made under part E of such Act. Specifies those who qualify to have their loans so repaid. Specifies percentages and maximum amounts of such loan repayments. Authorizes repayment by the Secretary concerned of education loans of certain health professionals who serve in the Selected Reserve. Specifies those individuals eligible for such loan repayments. Limits the amount of such loan repayment to a maximum amount of $3,000 per year of service, with a total amount not to exceed $20,000. Authorizes the Secretary of each military department to provide financial assistance to persons engaged in specialized training in the health professions. Specifies those eligible for such assistance, the amount of such assistance, and the selected reserve obligation incurred for receiving such assistance. Requires the performance of active duty or repayment to the United States for those failing to complete such training program. Limits to 6,000 the number of participants in such program. Authorizes the Secretary of the Navy to allow certain members of the naval service to transfer all or part of their educational entitlement to their spouse or dependent children. Changes the eligibility requirements for the all-volunteer force educational assistance program by removing the requirement that no break in active duty service may have occurred since December 31, 1976, in order to be eligible for such assistance. Part G: Miscellaneous - Extends legal representation under the Uniform Code of Military Justice to civilians employed by or accompanying the armed forces overseas. Changes from September 1, 1976, to February 9, 1976, the trigger date for the payment of certain accrued military leave. Standardizes Naval and Marine Corps service pay allotments with that of the Army and Air Force. Directs the Secretary of Defense to require a surcharge to be made upon each person to whom a sale is made at a military animal disease prevention and control center. Title VII: Survivor Benefit Plan Improvements - Survivor Benefit Plan Amendments of 1985 - Part A: General Program Changes - Revises provisions concerning the computation of Survivor Benefit Plan annuities to provide varying portions of the base amounts of such annuities depending upon the age of the annuitant. Provides that the annuity for a former spouse shall be 55 percent of the pay of the person who elected to provide such annuity. Revises computation of annuities to a surviving spouse to provide varying percentages of the deceased's pay to such annuitant depending upon the age of such annuitant. Provides that any such annuities shall be reduced by the amount of dependency and indemnity compensation the surviving spouse is entitled to. Provides for a reduction of annuity upon the annuitant's attaining age 62. Outlines those eligible for annuities under the SBP. Provides that such annuities shall also be reduced by any monthly amount the annuitant is entitled to under title II (Old Age, Survivors and Disability Insurance) of the Social Security Act, for annuities from both former active-duty and reserve component members. Requires the Secretary of Defense to prescribe regulations for the determination of annuity amounts, taking into consideration specified information. Provides for SBP coverage for members who die after completing 20 years of service, but before becoming eligible for full retirement due to a shortage of active commissioned service. Makes eligible for such annuity the surviving spouse and dependent children of a person who dies on active-duty after September 20, 1972. Allows the Secretary concerned to pay an annuity to the surviving spouse of a person eligible to provide a reserve-component annuity but who dies within 90 days of qualifying for such annuity. Makes eligible for such annuity the surviving spouse and dependent children of any person who dies after September 30, 1978, and the former spouse of a person who dies after September 7, 1982. Modifies the threshold amount for the calculation of the reduction of retired pay upon attaining a specified age. Requires spousal concurrence of certain choices made by a Survivor Benefit Plan (SBP) participant with regard to plan coverage. Allows a person who is providing SBP coverage for a spouse or a spouse and child and who remarries to elect not to provide coverage for the previous spouse upon remarriage, provided he or she obtains the consent of the previous spouse. Allows such person the option of providing higher coverage to a former spouse after remarriage if such person had not previously been providing the highest possible coverage. Allows an SBP participant to provide an annuity for a former spouse and the dependent child of such spouse if such child resulted from the person's marriage to that former spouse. Allow persons who made an annuity election before the date of enactment of this Act to make a new election under the provisions of this Act. Requires a widow or widower whose annuity is readjusted to repay any amount overpaid. Reduces an annuity by the amount of any dependency and indemnity compensation received. Part B: Provisions Relating to Rights for Spouses and Former Spouses - Requires spousal concurrence for an election: (1) not to participate in a SBP; (2) to provide a less-than-maximum spousal annuity; or (3) to provide an annuity for a dependent child but not for the person's spouse. Makes similar requirements for reserve-component annuity elections. Provides for an election without spousal concurrence if the spouse's whereabouts cannot be determined or in other unusual circumstances. Allows persons who made an SBP annuity election before the enactment of this Act a one-year period after the enactment of this Act to elect a new annuity plan for either a former spouse or a new former spouse. Requires certain parties to be informed of the possibility or the occurrence of such annuity elections. Part C: Effective Date and Report - Sets forth the effective date for such SBP provisions. Requires the Secretary of Defense, no later than December 31, 1985, to submit to the Congress a plan for establishing a needs-based survivor annuity program for surviving spouses of certain members. Outlines the scope of such plan. Title VIII: Military Family Policy and Programs - Military Family Act of 1985 - Establishes in the Office of the Secretary of Defense an Office of Family Policy to coordinate programs and activities of the military departments relating to military families. Requires the Secretary, no later than September 30, 1986, to report to the Congress on the activities of such Office, together with recommendations concerning the well-being of military families. Transfers the Military Family Resource Center of DOD to the Assistant Secretary for Force Management and Personnel. Authorizes the Secretary to conduct surveys of military families to determine the effectiveness of Federal programs and the need for new programs. Increases employment opportunities for spouses of military members. Directs the Secretary to issue regulations ensuring employment opportunities for military spouses in the same geographic area as their husband or wife is assigned. Directs the Secretary to have established at each military installation a youth sponsorship program to facilitate the integration of children to new surroundings brought about due to a parent's permanent change of station. Allows certain DOD transportation and travel funds to be obligated for dependent student travel within or between the contiguous United States. (Currently, such funds are used only for overseas travel). Directs the Secretary of Defense, no later than March 1, 1986, to report to the Congress on the desirability and feasibility of providing relocation assistance to members of the uniformed services and their families through DOD contracts with private firms. Raises the amortization period for parking facilities provided for military members and families for house trailers and mobile homes from 15 to 25 years. Revises provisions concerning the cost of unaccompanied personnel housing for certain members of the uniformed services. Prohibits charging certain enlisted personnel and their families a price for meals sold at messes in excess of a level sufficient to cover food costs. Requires the Secretary of Defense to provide payments to military child care facilities for reimbursement of food costs. Requires the Secretary, no later than December 31, 1985, to report to the Congress on the feasibility of having DOD issue food stamps to overseas military households. Outlines information to be included in such report. Requires the Secretary to request each State to provide for the reporting to the Secretary of any information concerning known or suspected instances of child abuse and neglect where the person having care of the child is a member (or spouse of a member) of the armed forces. Directs the Secretary, within one year after enactment of this Act, to report to the Congress on the availability and affordability of off-base housing for members of the armed forces and their families. Outlines information to be included in such report. Directs the Secretary at the same time to report to the Congress proposed administrative or legislative action which would facilitate families of military members making a permanent change of station so that their dependent children will not be unduly disrupted or burdened by transferring between schools with different graduation requirements. Title IX: Procurement Policy Reform and Other Procurement Matters - Defense Procurement Improvement Act of 1985 - Part A: Program Management Matters - Directs the Secretary of Defense to require a covered contract to provide that if the contractor submits to DOD for payment costs specified by law as unallowable, then: (1) such cost will be disallowed; and (2) a specified penalty will be imposed upon such contractor. Provides civil and criminal penalties for contractors who knowingly submit for reimbursement costs unallowable by law. Lists the following costs as disallowed under such a contract: (1) entertainment and social activities; (2) costs incurred to influence action on legislation or appropriation matters pending before the Congress; (3) costs for the defense of any fraud proceeding; (4) fines and penalties imposed for noncompliance with Federal, State, or local laws and regulations; (5) costs of membership in any social or dining club or organization; (6) alcoholic beverages; (7) contributions or donations; (8) advertising; (9) models, gifts, souvenirs, or other memoribilia; and (10) aircraft travel to the extent that costs exceed the standard commercial fare. Requires the Secretary of Defense, within 150 days after the enactment of this Act, to issue regulations concerning the allowability of indirect contractor costs under DOD contracts. Outlines provisions to be included in such regulations. Prohibits the Secretary of Defense from beginning full-scale development of a major defense acquisition program until: (1) the Secretary prepares an acquisition strategy for the program; and (2) the Secretary reports such acquisition strategy to the Senate and House Armed Services Committees. Requires the acquisition strategy prepared to provide that there will be competitive alternative sources available for the production system throughout its development and production period. Authorizes the Secretary to waive such competition requirement in specified circumstances. Directs the Secretary to establish for each fiscal year a goal for the percentage of defense procurements to be made during that year that are to be competitive procurements. Directs the Secretary, no later than April 1 of each year, to report to the Congress on the goal for the next fiscal year. Directs the Secretary, no later than January 31, 1986, to report to the Senate and House Armed Services Committees on the remedying of management problems with respect to the cost control of the acquisition of spare parts. Requires the Secretary to issue regulations to limit the prices of spare parts if the Secretary concludes that such management problems have not been remedied. Directs the Secretary, annually no later than the date on which the budget for the next fiscal year is submitted, to report to the Senate and House Armed Services Committees an annual plan for the performance of cost analyses for major defense acquisition programs during the next fiscal year. Outlines provisions to be included in such report. Directs the Secretary to limit payments under a defense contract to progress for quality work already performed. Requires a defense contractor that is responsible for the acquisition of property or services under a covered defense contract to record the contractor's proposed and negotiated cost and pricing data into appropriate categories such as labor costs, material costs, subcontract costs, overhead costs, general and administrative costs, fee or profit, and recurring or nonrecurring costs. Requires bills of labor to reflect a computation of work required in manufacturing parts and assemblies, and other specified information. Requires the Secretary of Defense to have established in each military department an accounting procedure to aid in the cost and control of contracted advisory and assistance services. Requires the Secretary, within six months after the date of enactment of this Act, to report to the Congress concerning such accounting under this Act to prescribe regulations describing such advisory and assistance documents presented to the Congress in support of the annual budget, and to identify such advisory and assistance services. Authorizes the Secretary to enter into cooperative agreements with eligible entities to furnish procurement technical assistance to business entities. Limits to $150,000 the value of such agreement to any single entity. Extends funding for such program through FY 1987. Authorizes appropriations. Part B: Procurement Personnel Matters - Prohibits a Federal employee who acts as a primary government representative in the negotiation or resettlement of a defense contract with a defense contractor from accepting employment from such contractor within two years of termination of activities with such contractor. Provides civil and criminal penalties for violation of this section. Increases the reporting and disclosure requirements of certain former DOD defense contract employees who, within two years of such employment, act as a consultant to defense contractors awarded contracts with DOD. Raises to $25,000 the trigger amount of the defense contracts involved before the former employee is required to make such reports and disclosures. Provides penalties for those former employees failing to comply with this section. Provides that, if a covered defense official (a civilian officer of employee of DOD in a GS-11 or higher rate) who has participated in the procurement function of an awarded defense contract of DOD contacts, or is contacted by the defense contractor to whom such contract was awarded concerning possible future employment, then the covered defense official shall report such contact to his or her supervisor and the designated ethics official, and disqualify himself from working on defense contracts when such contractor is involved. Provides penalties for covered defense officials who violate the reporting requirements of this section. Directs the Secretary of each military department to prescribe regulations establishing requirements for the education, training, and experience of: (1) any person assigned as the program manager of a major defense acquisition program; and (2) general or flag officers assigned to duty in a procurement command. Outlines details to be covered by such regulations. Directs the Secretary of Defense to develop a training program for all personnel of DOD responsible for assuring quality control in contractor facilities. Requires such personnel to attend such training program during the first six months of the assignment to such duties. Directs the Secretary to develop a policy regarding the regular rotation of DOD principal administrative and corporate administrative contracting officers. Directs the Secretary to report such policy to the Senate and House Armed Services Committees no later than January 1, 1986. Requires such policy to be implemented no later than April 1, 1986. Part C: False Claims, Debarment, Burden of Proof, and Related Matters - Increases the criminal and civil penalties for the making of false claims with regards to defense contracts. Provides that an officer or employee of a defense contractor who is under indictment for fraud or any other felony arising out of a contract with DOD shall be personally suspended from working on or supervising a defense contract. Prohibits such person, if convicted, from employment with DOD for not less than one year from the date of conviction. Provides that, in any court proceedings involving the question of reasonableness of contractor indirect costs, the burden of proof of the reasonableness of such costs shall be upon the contractor. Provides for reimbursement, interest, and possible penalties from a contractor receiving an overpayment under a contract with DOD. Authorizes the Director of the Defense Contract Audit Agency to subpoena defense contractor records in appropriate cases. Requires the Director to submit to the Secretary of Defense an annual report on the excercise of such subpoena authority. Requires the Secretary to forward a copy of such report to the Senate and House Armed Services Committees. Part D: Reports - Requires the Secretary of Defense, not later than 60 days after the enactment of this Act, to report to the Senate and House Armed Services Committees his or her views regarding the prohibition of including general and administrative overhead expenses in the computation of contractor profits. Allows the Secretary to waive such possible prohibition in appropriate cases. Requires the Secretary, no later than April 1, 1986, to report to the Senate and House Armed Services Committees on the continued use of independent cost estimates for major defense acquisition programs. Outlines matters to be included in such report. Requires the Comptroller General to carry out a study to review all available information concerning the organizational structure for defense procurement. Requires the Comptroller to report to the Congress recommendations concerning the feasibility of creating an agency outside DOD to oversee all defense procurement. Requires such report within one year after the enactment of this Act. Revises provisions concerning the requirement of a minimum percentage of competitive defense procurements during a fiscal year by DOD. Directs the Secretary of Defense, within 180 days after the enactment of this Act, to report to the Congress concerning suspension and debarment of defense contractors. Directs the Secretary of Defense and the Administrator of the Small Business Administration, within 180 days after the enactment of this Act, to report to the Senate and House Committees on Armed Services and on Small Business on the case of competitive procedures for contracts awarded by DOD under the set-aside program of the Small Business Administration. Directs the Secretary of Defense, by March 31, 1986, to submit to the Congress a report on DOD efforts to increase defense contract awards to Indian-owned businesses. Part E: Technical Amendments to Federal Procurement Law - Makes technical corrections to Federal procurement provisions. Title X: Matters Relating to Arms Control - Expresses the sense of the Congress that the United States should pursue with the Soviet Union its concerns over Soviet compliance with existing strategic arms control agreements, and that the Soviet Union should take positive steps to resolve such concerns. Directs the President, no later than February 1, 1986, to report to the Congress on various specified aspects to assure compliance with existing arms control agreements. Directs the President, not later than December 1 annually beginning with 1985, to report to the Congress on Soviet compliance with arms control commitments. Directs the President, no later than May 1, 1986, to provide for an interagency study on cooperation between the United States and the Soviet Union in arms control verification capabilities. Names the agencies to be included in such study. Expresses the sense of the Congress that the President and the head of the Soviet Union should be commended for their willingness to meet for arms control negotiations. Directs the Secretary of Defense, no later that December 1, 1985, to submit to the appropriate congressional committees a plan for the establishment and operation during FY 1986 of a pilot program for the exchange of certain high-ranking military and civilian personnel between the United States and the Soviet Union. Outlines details to be included in such plan. Sets aside funds to cover costs incurred in such exchange. Directs the Secretary of Defense, no later than March 1, 1986, to report to the Senate and House Armed Services Committees its annual report on nuclear winter findings and policy implications. Title XI: Matters Relating to NATO - Allows the Secretary of Defense limited authority to exceed (by not more than 1/2 of one percent) the permanent ceiling on U.S. forces assigned to NATO. Amends the Arms Export Control Act to authorize the President to enter into a cooperative project agreement with NATO or with one or more NATO-member countries. Authorizes the President to enter contracts while pursuing such agreements if each of the other participants agree to share costs associated with any agreement. Requires the President, not less than 15 days before a cooperative project agreement is signed on behalf of the United States, to submit to the Speaker of the House of Representatives, the chairman of the Senate Foreign Relations Committee, and the chairman of the Senate Armed Services Committee certain certifications with respect to such proposed agreement. Provides that the Secretary of State shall be responsible for supervision and direction of sales, leases, financing, cooperative projects, and exports under the Arms Export Control Act. Allows the Secretary of Defense to use the authority incurred upon him by the President in initiating NATO cooperative projects to acquire defense equipment for such projects. Authorizes the Secretary to waive normal contract procedures during such acquisition, being bound only by terms of the Arms Export Control Act, if the Secretary determines that such waiver will significantly further NATO standardization, rationalization, and interoperability. Provides for limited delegations of such waiver authority. Requires certain notifications to the Congress by the Secretary upon the awarding of contracts or subcontracts under such projects, or upon the exercise of a waiver. Directs the Secretary to ensure that contracts will be made on a competitive basis, and that U.S. firms will not be precluded from such competition. Authorizes the Secretary, in carrying out a cooperative project, to agree to dispose of jointly-acquired property without regard to any U.S. laws applicable to the disposal of property owned by the United States. Urges and requests the President, the Secretary of Defense, and the U.S. Representative to NATO to diligently pursue cooperation among NATO nations in: (1) research and development; and (2) the production of defense equipment. Sets aside previously-authorized funds for such purpose. Prohibits funds from being used to procure equipment or services from any foreign government, foreign research organization, or other foreign entity. Directs the Under Secretary of Defense for Research and Engineering to prepare a formal arms cooperation opportunities document for review by the Defense Systems Acquisition Review Council at its formal meetings. Outlines provisions to be included in such document. Expresses the sense of the Congress that DOD should perform more side-by-side testing with NATO member nations of conventional defense equipment. Makes funds available to the Director of Defense Test and Evaluation for the purchase of specified items for the NATO defense system. Requires the Director to notify the Committees on Armed Services and on Appropriations of the Senate and the House of his intention to obligate for such acquisition at least 30 days before such funds are obligated. Requires the Director, no later than February 1 of each year, to report to the same Committees on: (1) the systems produced by other NATO member nations and evaluated by the director; and (2) the obligation of any funds during the previous fiscal year. Title XII: Department of Defense Management - Part A: Management of Facilities and DOD Organization - Requires specified additional information to be included in annual selected acquisition reports. Prohibits the closure of any military installation at which 300 civilians are employed, or any realignment at any installation which reduces by 1,000 or by more than 50 percent the number of civilians employed, until the Senate and House Armed Services Committees are notified by the appropriate Secretary, and a period of 30 legislative days or 60 calendar days, whichever is longer, have passed since the date of such notification. Authorizes immediate closure or realignment if determined by the President to be in the interest of national security or a military emergency. Directs the Secretary of Defense to carry out a demonstration project testing the use of a certain computer system in military hospitals. Outlines certain information concerning such project and requires a report by the Secretary to the Congress. Requires the Comptroller General to report to the Congress as to whether the Secretary has properly carried out such demonstration project. Sets forth certain restrictions upon the Secretary in the selection of vendors and in the contracting for the procurement of such computer system. Repeals Federal law which transferred overseas defense dependents schools to the Department of Education. Amends the Defense Dependents' Education Act of 1978 to require the Secretary of Defense to consult with the Secretary of Education on the educational programs and practices of the defense dependents' education system. Establishes in DOD an Advisory Council on Dependents' Education. Authorizes the Secretary of Defense to enroll in schools of the defense dependents' education system children of specified classes of officers, employees, and nationals stationed in overseas areas. Limits, as of September 30, 1986, the size of certain management staff within DOD. Excludes certain personnel in the computation of such staff size. Directs the Secretary, no later than six months after the enactment of this Act, to submit to the Congress a report on the organizational structure of the military health-care delivery system. Outlines certain goals to be accomplished with regard to such health-care system. Directs the Secretary of each military department and the Joint Chiefs of Staff to conduct independent studies of such system, such studies to be included in the Secretary's report to the Congress. Outlines additional information to be included in the annual report by the Secretary to the Congress with respect to equipment of the National Guard and reserve components of the armed forces. Imposes a moratorium on the construction of commercial franchise businesses by a military department on military installation grounds. Directs the Secretary, no later than February 1, 1986, to report to the Congress on current and proposed commercial franchise business operations on military installations. Outlines information to be included in such report. Directs the Secretary of the Air Force to give priority to the completion of the Air Force Shuttle Operations and Planning Complex to insure operational capability at such complex by November, 1992. Requires the Secretary, at the same time as the President's budget submission to the Congress for FY 1987, to report to the Senate and House Armed Services Committees on a plan to achieve such goal. Authorizes the sale of certain recordings of the U.S. Air Force Band. Authorizes the Secretary of the Army to provide uranium tetrafluoride (green salt) to a contractor for the production of conventional ammunition for the Army. Prohibits the Secretary of Defense and the Secretaries of the military departments, in contracting for off-duty postsecondary education services for members of the armed forces or defense agencies, from discriminating against an associate degree school due to lack of authority to award a baccalaureate degree. Prohibits the limit of course offerings to a single educational institution, with specified exceptions. Directs the Comptroller General to carry out a study with respect to the educational needs of members of the armed forces and civilian employees of DOD, and their dependents, stationed outside the United States. Directs the Comptroller General, no later than September 1, 1986, to report to the Congress concerning such study. Part B: Personnel Management - Directs the Secretary of Defense, during FY 1986 and 1987, to implement a program of counterintelligence polygraph examinations for military, civilian, and contractor personnel of DOD whose duties involve access to classified information. Limits the total number of persons required to take such examinations during each fiscal year. Directs the Secretary, no later than December 31, 1985, to report to the Senate and House Armed Services Committees on his plan to expand the use of such examinations in DOD. Requires the Secretary, no later than December 31, 1986, to report to the same committees on the use of such examinations during FY 1986. Outlines information to be included in such report. Directs the Secretary to conduct a continuing research program on polygraph activities of DOD. Directs the Secretary, no later than December 31 of each year, to report to specified congressional committees on the results of such research program. Authorizes appropriations. Excludes certain individuals from such examinations. Directs the Secretary to take steps to reduce the security clearance backlog. Authorizes appropriations. Directs the Secretary, no later than April 1, 1986, to report to the Congress concerning such backlog. Provides the same authority for independent criminal investigations by the Navy and Air Force as is currently granted to the Army. Establishes the minimum age with respect to the purchase and consumption of alcohol by State law as the minimum age on military installation located in that State. Establishes the minimum age for military installations located in more than one State or in one State but within 50 miles of another State, Mexico, or Canada, as the State law, Mexican law, or Canadian law that has the lower minimum age. Authorizes exemption under special circumstances. Directs the Secretary of Defense, no later than February 1, 1986, to report to the Senate and House Armed Services Committees concerning such minimum age requirements and related matters. Directs the Comptroller General, no later than March 15, 1988, to report to the Congress on the effectiveness of cash awards given to employees whose disclosure within DOD of fraud, waste, or mismanagement has resulted in cost savings to DOD. Part C: Contracting-Out for Performance of Certain Functions - Specifies certain core-logistics functions of the armed forces and defense agencies to be subject to certain contracting-out limitations. Excludes certain functions from such limitations. Extends until October 1, 1986, the prohibition on contracting-out for the performance of firefighting and security functions within DOD. Directs the Secretary, no later than March 1, 1986, to submit a report to the Congress on how adequately such functions are performed within DOD. Requires the Secretary to ensure that services and activities are performed by non-Government personnel when such performance would be cost-effective and in the interest of national security. Increases the employee-number thresholds applicable to certain contracting-out procedures under the Department of Defense Authorization Act, 1981. Part D: Economy and Efficiency - Amends the Contract Work Hours and Safety Standards Act to provide that Federal contractor employees shall be compensated at the rate of a standard workweek for forty hours, and at the rate of not less than one and one half times the basic rate for work in excess of forty hours. Prohibits the establishment of pay rates for prevailing rate employees of DOD using surveys of wages paid outside the local wage area, requiring instead using rates paid for comparable positions in local private industry. Title XIII: Technical and Clerical Amendments - Eliminates various gender-based distinctions contained in specified Federal provisions pertaining to the armed forces. Eliminates service credit for certain service as a nurse, woman medical specialist, or civilian employee of the Army Medical Department. Eliminates the entitlement to a higher grade for retirement of certain regular and reserve commissioned officers, Army Nurse Corps members, or dieticians or physical therapists who performed active duty during a specified time period. Makes technical amendments relating to benefits for certain Defense Intelligence Agency personnel. Provides benefits similar to those for foreign service officers to certain members assigned to overseas duty with the Defense Intelligence Agency. Makes clerical amendments to various provisions of Federal procurement law. Title XIV: General Provisions - Part A: Financial Matters - Authorizes the Secretary to transfer authorizations within DOD in the national interest, as long as the Secretary notifies the Congress of any such transfers. Limits to $2,000,000,000 the total amount of such authorizations. Authorizes the transfer of amounts appropriated for FY 1985 for operation and maintenance and military personnel in such sums as are necessary for civilian and military pay raises. Increases the yearly ceiling of the Special Defense Acquisition Fund. Directs the Secretary to submit to the Congress a four-year defense plan for FY 1987-1990 in which: (1) the total amount of new budget authority proposed for DOD for each fiscal year is not more than three percent over the amount proposed for the previous fiscal year, adjusted for inflation; and (2) the total amount of new budget authority is not more than the amount proposed for the previous fiscal year, adjusted for inflation. Outlines matters to be included in such report and requires such report within 60 days after enactment of this Act. Directs the President, in his FY 1988 budget submission to the Congress, to include a proposed two-year DOD budget for FY 1988 and 1989. Directs the Secretary, no later than April 1, 1986, to report to the Senate and House Armed Services Committees concerning such two-year budget plan. Directs the Secretary, within 60 days after enactment of this Act, to report to the Congress an explanation of what DOD does in any fiscal year with funds unexpended as a result of lower inflation. Outlines information and recommendations to be included in such report. Requires reports by the Secretary to the Senate and House Armed Services Committees on unobligated balances of DOD. Outlines matters to be included in such reports and requires such reports to be submitted concurrently with the President's annual budget submission to the Congress. Authorizes appropriations for FY 1986 for the purchase of foreign currencies. Part B: Chemical Weapons - Prohibits the use of FY 1986 funds for the procurement, assembly, or production facilities for binary chemical munitions unless: (1) the President certifies to the Congress that an appropriate plan has been developed for the proper deployment of such weapons; and (2) NATO-member countries have been consulted on such plan. Specifies conditions for the final assembly of such weapons. Expresses the sense of the Congress that existing unitary chemical munitions currently stored in the United States and in European NATO-member nations should be replaced by modern, safer binary chemical munitions. Directs the President, no later than October 1, 1986, to report to the Congress describing the results of consultations among NATO-member nations concerning NATO's chemical deterrent posture. Outlines information to be included in such report. Directs the Secretary of Defense to carry out the destruction of the existing stockpile of lethal chemical agents and munitions, such destruction to be completed by September 30, 1994. Authorizes the deferral of such weapons destruction if war, national emergency, or other exigent circumstances occur. Requires the Secretary to notify the Congress of any such deferral. Requires the Secretary to provide maximum protection to the environment during any such destruction of chemical weapons. Directs the Secretary to develop a comprehensive plan for destruction of such weapons without environmental damage and transmit such plan to the Congress no later than March 15, 1986. Directs the Secretary to establish within the Department of the Army a management organization to carry out such plan. Requires such organization to be established by May 1, 1986. Directs the Secretary to submit to the Congress an annual report, on December 15 of each year beginning with 1985, on activities carried out under such plan. Outlines information to be included in such reports. Prohibits, except in limited circumstances necessary for national security, any agency of the Federal Government from developing or acquiring lethal chemical agents or munitions after the date of enactment of this Act. Expresses the sense of the Congress that the President should reaffirm the U.S. policy of renouncing the first use of chemical agents and munitions under any circumstances. Directs the Secretary, within 90 days after the enactment of this Act, to report to the Senate and House Armed Services Committees concerning the testing of chemical warfare agents. Part C: Drug Interdiction, Law Enforcement, and Other Specific Programs - Directs the Secretaries of Defense and of Transportation to provide that there be assigned on board each surface naval vessel at sea in a drug-interdiction area at least one member of the Coast Guard trained in law enforcement and empowered to carry out drug enforcement functions. Increases the strength level of the Coast Guard for FY 1986 by 500 for such purposes, and sets aside specified funds. Authorizes appropriations to DOD for FY 1986 for: (1) airborne surveillance, detection, and interdiction units in DOD; and (2) the Directorate of the Department of Defense Task Force on Drug Law Enforcement. Directs the Secretary, not later than December 1, 1985, to report to the Senate and House Armed Services Committees on the manner in which DOD plans to obligate funds appropriated under this section. Outlines details to be included in such report. Directs the Attorney General, at least once each year, to brief law enforcement personnel of each State regarding information, training, technical assistance, and equipment and facilities available to civilian law enforcement personnel from DOD. Outlines information to be provided in such briefings. Directs the Secretary of the Navy to conduct a study on the possible use of E-2 aircraft for drug interdiction purposes along the U.S.-Mexico border. Requires the Secretary to report the results of such study to the Congress no later than September 30, 1986. Expresses the sense of the Congress that the technologies and programs of the Advanced Technology Bomber program and the Advanced Cruise Missile program should be developed as rapidly as feasible and that funds should be assured. Prohibits funds authorized for such programs from being used for any other purpose. Expresses the sense of the Congress that the B-1B bomber aircraft program should be terminated after the acquisition of 100 such aircraft. Prohibits the obligation of funds for the procurement of more than 100 such aircraft. Restricts funding for warheads for the MX missile. Restricts employment of the Standard Missile (SM-2N) or any associated nuclear warhead until 30 calendar days after the Secretary of the Navy submits to the Senate and House Armed Services Committees a report detailing certain information concerning such system. Directs the Secretaries of Defense and of Energy, no later than March 1, 1986, to report to the Senate and House Armed Services Committees detailing the military requirements for special nuclear materials through FY 1991. Outlines findings and recommendations to be included in such report. Part D: Miscellaneous Reporting Requirements - Extends the date for the submission of certain reports by the Commission on Merchant Marine and Defense. Directs the Secretary of the Navy to report to the Committees on Armed Services of the Senate and House of Representatives on the industrial base for the construction, overhaul, and repair of naval vessels. Outlines information to be included in such report, including an assessment of the current capabilities of the shipyard base. Prohibits the obligation of more than one half of the funds for the design or construction of the nuclear reactor components for the SSN-21 class submarine until the Secretary of the Navy makes a report on such to the Committees on Armed Services of the Senate and House of Representatives. Directs the Secretary of Defense, not later than 90 days after the enactment of this Act, to report to the Congress concerning an aircraft fuel conservation program. Outlines matters to be included in such report. Directs the President, within 30 days after enactment of this Act, to report to the Congress concerning the possible dismantling of Poseidon-class submarines. Directs the Secretary of the Navy to report to the Senate and House Armed Services Committees on the possible removal of the Basic Point Defense Missile System for naval amphibious vessels. Prohibits the Secretary from removing such system until the report is submitted. Directs the Secretary of the Army to conduct a study on possible retirement-benefits increases for members of the Philippine Scouts who served during World War II. Requires the Secretary to report his finding to the Senate during World War II. Requires the Secretary to report his findings to the Senate and House Armed Services Committees within one year after the enactment of this Act. Directs the Secretary to conduct a study concerning the desirability of reinstating the death penalty for persons convicted of espionage. Directs the Secretary, no later than 30 days after the enactment of this Act, to report to the Congress on the results of such study. Directs the Secretary to conduct a study of the impact of foreign exports on the defense industrial base of the United States. Outlines topics to be considered in such study. Directs the Secretary, no later than June 1, 1986, to report to the Congress on the results of such study. Expresses the sense of the Congress that the Secretary should develop specific criteria concerning the firing of tactical missiles for training purposes. Directs the Secretary, no later than February 1, 1986, to report to the Congress on actions taken to develop such criteria. Directs the Secretary, no later than October 1, 1985, to report to the Senate and House Armed Services Committees on the feasibility of implementing a program of drug testing on prospective recruits of the armed forces. Outlines matters to be included in such report. Expresses the sense of the Congress that: (1) U.S. armed forces should not be introduced into or over Nicaragua for combat; (2) the President should be supported in his effort to protect members of the armed forces against terrorist activity; and (3) the revitalization of the special operations forces of the armed forces should be given the highest priority. Authorizes the Secretary to make available for humanitarian relief purposes any nonlethal excess supplies of DOD. Directs the Secretary of State, no later than June 1 of each year, to report to the Senate Committees on Armed Services and Foreign Relations and to the House Committees on Armed Services and on Foreign Affairs on the disposition of all such excess supplies so transferred by the Secretary of Defense to the Secretary during preceding fiscal year. Directs the Secretary of the Navy to encourage U.S. shipyards to construct combatant vessels for allies of the United States. Directs the Secretary of Defense to monitor the capability of the domestic textile and apparel industrial base to support defense mobilization requirements. Directs the Secretary, not later than April 1 of each of the fiscal years beginning with 1986, to report on the status of such industrial base. Outlines provisions to be included in such report. Directs the Secretary of Defense to encourage the transfer of technology between DOD, other Federal agencies, State and local governments, colleges and universities, and private persons. Authorizes the Secretary of the Army to construct an Armed Forces National Science Center at or near Fort Gordon, Georgia, for the enhancement of communications and electronics development in the interest of national security. Authorizes the Secretary to appoint an advisory board to aid in the operation of the Center. Authorizes the Secretary to make such Center available to the National Science Center for Communications and Electronics Foundation Incorporated (a nonprofit Georgia corporation) for joint use. Authorizes the Secretary of a military department to donate certain unmarketable but edible commissary food to authorized nonprofit food banks. Prohibits a Federal officer, employee, or member of the Congress from accepting any gift or momento valued at $100 or more in connection with a naval shipbuilding ceremony. Authorizes the Secretary of the Navy to transfer certain aircraft to institutions leasing such aircraft. Authorizes the Secretary of the Air Force to lease certain Air Force helicopters to the State of California for specified purposes. Expresses the sense of the Congress that the Secretary of each military department should provide for free and open competition among commercial travel agencies in the establishment of travel offices and the acquisition of travel services for official travel. Expresses the sense of the Congress that performing groups in the U.S. armed forces should use domestically manufactured entertainment equipment at patriotic and ceremonial events at the U.S. Capitol and at all Federal buildings, unless there is no domestically manufactured item of comparable quality and price. Authorizes the sale of certain recordings of the U.S. Air Force Band. Title XV: Department of Energy National Security Programs - Department of Energy National Security and Military Applications of Nuclear Energy Authorization Act of 1986 - Part A: National Security Programs Authorization - Authorizes appropriations for the Department of Energy (DOE) for FY 1986 for operating expenses and for plant and capital equipment in carrying out national security programs in the following areas: (1) naval reactors development; (2) weapons activities; (3) verification and control technology; (4) defense nuclear materials production; (5) defense nuclear waste and byproduct management; (6) nuclear materials safeguards and security technology development; (7) security investigations; (8) materials production; and (9) capital equipment not related to construction. Part B: Recurring General Provisions - Prohibits the use of funds authorized under this Act where the costs of the program exceed 105 percent of the program authorization or the costs exceed by more than $10,000,000 the amount authorized by this Act, whichever is the lesser. Prohibits the use of funds authorized by this Act for programs which have not been presented to or requested of the Congress unless the Secretary of Energy transmits to the appropriate committees a full and complete statement of the action proposed and 30 days have expired since such statement was submitted. Authorizes the Secretary to carry out any general plant project only if the maximum estimated cost of the project does not exceed $1,000,000. Sets forth procedures for the approval of projects which exceed by more than 25 percent their estimated cost, and exempts from such procedures any projects which have an estimated cost of less than $5,000,000. Allows the transfer of funds from specified projects to other Government agencies for the performance of work for which the appropriation is made. Authorizes the Secretary to perform construction design services for construction projects in support of national security programs. Allows authorizations to be adjusted for pay and benefits increases for Federal employees. Part C: Program Revisions and Miscellaneous Provisions - Reduces the amounts appropriated under this Act by 32,280,000, such funds being obtained from other funds, or through management savings and program cuts. Authorizes the Secretary of Energy to obligate specified funds during FY 1986 for the purpose of carrying out a contract with Anderson County and Roane County, Tennessee, and the city of Oak Ridge, Tennessee for payments pursuant to the Atomic Energy Community Act of 1955. Requires the Secretary, no later than February 1, 1986, to report to the appropriate congressional committees concerning the need for any further financial assistance under such Act. Prohibits the obligation of funds for such assistance until the Secretary has complied with certain notice-and-wait procedures. Authorizes the Secretary to obligate specified FY 1986 funds for the renovation of a DOE building at Oak Ridge, Tennessee if the Secretary determines that the building requires such renovations. Defines the following costs as unallowable under a covered contract: (1) costs of entertainment; (2) costs incurred to influence legislative action; (3) costs incurred in defense of any civil or criminal contractor fraud proceedings; (4) payments of fines or penalties; (5) social dues; (6) alcoholic beverages; (7) contributions or donations; (8) advertising; (9) promotional items and memorabilia; and (10) costs for travel by commercial aircraft which exceeds the amount of the standard commercial fare. Defines a covered contract as one for more than $100,000 entered into by the Secretary of Energy obligating national security program funds. Directs the Secretary, within 150 days after the enactment of this Act, to prescribe regulations to implement this section. Title XVI: Other General Provisions - Part A: Civil Defense - Authorizes appropriations for FY 1986 for civil defense matters. Part B: National Defense Stockpile - Extends through FY 1986 the funding for the National Defense Stockpile Transaction Fund from naval petroleum reserve receipts. Prohibits, until October 1, 1986, the taking of any action that results in a reduction in quantity or quality of the Naval Defense Stockpile. Directs the Secretary of Defense to conduct a study measuring the impact that reduced production of domestic feroalloys would have on the industrial preparedness of the United States. Directs the Secretary, no later than 180 days after the enactment of this Act, to report to the Congress the results of such study. Part C: Other Provisions - Expresses the sense of the Congress that the President should recognize, by Presidential proclamation, the contribution of our young men to the success of the peacetime registration program. Prohibits any civil service employment to those persons born after December 31, 1959, who fail to register under the Selective Service System. Directs the Office of Personnel Management to prescribe regulations to carry out this section. Directs such Office, no later than February 1, 1986, to report to the Congress concerning the effects of such prohibition. Authorizes the provision of residence-to-work transportation for the Commandant of the Coast Guard. Extends to the Coast Guard the authority to accept certain volunteer services. Authorizes the Governor of the U.S. Soldiers and Airmen's Home to exempt up to two physicians at any one time from reductions in retired pay due to post-retirement employment. Directs the Archivist of the United States, no later than March 31, 1986, to report to the Congress outlining a plan for improving the management, maintenance, storage, preservation, and access of military records within the Naval Archives and Records Administration. Redesignates the Federal Merit Scholarship Program as the Robert C. Byrd Honors Scholarship Program. Expresses the sense of the Senate that the U.S. Postal Service should issue a postage stamp during 1986 commemorating the 350th anniversary of the establishment of the U.S. National Guard.

(Measure passed House, amended, in lieu of H.R. 1872) Department of Defense Authorization Act, 1986 - Title I: Procurement - Authorizes appropriations for FY 1986 for procurement by the Army of aircraft, missiles, weapons, tracked combat vehicles, ammunition, and for other procurement. Merges appropriations for FY 1986 for specified procurement with specified amounts remaining available from FY 1984 and 1985. Permits the Secretary of the Army to enter into multiyear contracts for the purchase of T-700 series engines, various components of the M1 and M1A1 tank, and the transmission system for the Bradley Fighting Machine. Removes a limitation on contractors for 120-millimeter mortar. Authorizes the continued use of funds appropriated for FY 1985 for the multiple launch rocket system (MLRS) for materials and components for such system. Sets aside a specified amount of FY 1986-authorized funds for the Copperhead Projectile Program. Limits the expenditure of such funds until the Secretary of Defense reports to the Congress a plan concerning a second production source for such projectile. Authorizes the Secretary of the Army to purchase safety modifications in carrying out the Pershing II missile program for FY 1986. Prohibits the obligation of any such funds until the Secretary reports a plan for the purchase of such modifications to the Senate and House Armed Services Committees. Prohibits the obligation of funds for the procurement of AH-64 Apache attack helicopters until the Director of the Defense Contract Audit Agency reports certain findings to the Secretary of the Army concerning accounting and expenses related to such procurement. Authorizes appropriations for FY 1986 for procurement by the Navy and Marine Corps of aircraft, weapons, shipbuilding and conversion, and for other procurement. Directs the Secretary of the Navy to report to the Senate and House Armed Services Committees, within 120 days after the enactment of this Act, concerning the procurement of gun pods for Marine Corps Reserve aircraft. Merges appropriations for FY 1986 for aircraft procurement and shipbuilding and conversion with amounts remaining available from FY 1985 for such purposes. Prohibits FY 1986 aircraft procurement funds from being obligated for the procurement of A6E aircraft until the Secretary of the Navy makes certain guarantees to the Senate and House Armed Services Committees concerning the useful life of such aircraft. Permits the Secretary of the Navy to enter into multiyear contracts for the procurement of LHD-1 class amphibious assault ships and MK-46 torpedoes and modification kits. Authorizes appropriations for FY 1986 for procurement by the Air Force of aircraft, missiles, and for other procurement. Authorizes the transfer of prior-year funds for missile procurement for use in FY 1986. Directs the Secretary of the Air Force to establish an ongoing, annual competition for the procurement of fighter aircraft. Authorizes appropriations for FY 1986 for the defense agencies. Authorizes appropriations for FY 1986 to the Secretary of Defense for acquisition in connection with cooperative defense programs of the North Atlantic Treaty Organization (NATO). Prohibits the use of such funds until the Secretary of Defense submits to the Armed Services Committees a copy of each government-to-government agreement or if the U.S. obligation exceeds the collective obligation of the involved European countries. Extends through FY 1986 the authority of the Secretary of Defense, in carrying out the Multilateral Memorandum of Understanding Between the NATO Ministers of Defense concerning the NATO AWACS program, to waive reimbursement for the cost of specified functions performed by certain personnel and to assume contingent liability for program losses and specified charges. Prohibits the Secretary of the Army from obligating funds for the production and assembly of the Sergeant York Air Defense Gun system until certain tests have been completed and certain specified reports have been made. Requires a performance guarantee of such system from the Secretary of the Army. Prohibits the Secretary of the Army from procuring five-ton trucks for the Army until the Secretary certifies to the Armed Services Committees of the Senate and House of Representatives that each truck has undergone certain testing and meets specified qualifications. Authorizes the Secretary to extend for up to 18 months the current multiyear contract for the procurement of five-ton trucks. Authorizes the Secretary to award a new multiyear contract for such truck procurement by May 1, 1986, such contract to extend for a period of five fiscal years. Requires the Secretary, by February 1, 1986, to notify the Armed Services Committee of the Senate and House of Representatives if such contract-awarding date is impracticable. Authorizes the sale of L110 howitzers to friendly foreign governments. Permits the use of Defense Department appropriations to administer funds credited to the Department through the foreign military sales program under the Arms Export Control Act. Directs the Secretary of the Navy to take all steps necessary to encourage the construction in U.S. shipyards of diesel submarines for U.S. allies. Prohibits funds to be used for such purposes until the Secretary reports to the Congress that the Navy is taking no action to halt or delay the construction of such submarines. Prohibits funds appropriated from being used to upgrade or modernize a foreign shipyard until the Secretary assures the Congress that such construction could not be done in the U.S. without a negative impact on U.S. nuclear submarine programs. Authorizes certain reductions in the FY 1986 authorization of appropriations for the armed forces, the defense agencies, and the NATO cooperative defense programs due to prior-year cost savings. Authorizes the additional transfer of unobligated prior-year funds to be merged with FY 1986 authorizations for the armed forces and defense agencies, in specified amounts. Authorizes such transfers only to the extent provided in appropriation Acts. Requires the Secretary of Defense, before such transfer of funds are made, to report to the Senate and House Armed Services Committees describing the programs reduced to make such funds available. Limits to 40 the number of MX missiles deployed at any time. Limits future spending for MX missiles to that required for operational testing and evaluation and the aging and surveillance program. Authorizes the Secretary of the Navy to undertake a program to replace the wings of the A6 aircraft, as long as certain warranties are made. Authorizes the transfer of certain prior-year unobligated funds for such program. Requires the Secretary of Defense to submit certain reports concerning testing results of the Bradley Fighting Vehicle to the Senate and House Armed Services Committees. Describes testing procedures and information to be included in such reports. Requires Phase 1 of such report no later than December 1, 1985, and Phase 2 of such report no later than June 1, 1986. Requires the Secretary of Defense to assure that no contract is entered into by the Department of Defense (DOD) for the procurement of any newly-developed combat vehicles until certain testing has been completed and certain congressional reporting requirements (concerning the results of such testing) have been met. Requires the Secretary, not later than February 1, 1986, to report to the Congress on the total program cost of the advanced technology bomber. Limits the expenditure of any funds for such program until such report is received. Sets conditions for the expenditure of funds for the procurement or assembly of binary chemical munitions. Title II: Research, Development, Test, and Evaluation - Authorizes appropriations for FY 1986 to the armed forces and the defense agencies for research, development, test, and evaluation. Authorizes appropriations for FY 1986 for pay, retirement, and employee benefits for civilian employees of DOD. Limits specified amounts of sums appropriated to each of the armed forces and the defense agencies to be used only for certain specified defense projects. Prohibits the obligation of specified funds appropriated to the Navy and Air Force until the Secretary of each certifies to the Congress certain findings concerning the testing and compatibility of the High-Speed Anti-Radiation Missile (HARM). Requires each Secretary to report to the Congress any deficiencies found in the HARM system. Reduces the FY 1986 authorizations for research, development, test, and evaluation to the armed forces and defense agencies in specified amounts, due to prior-year cost savings. Authorizes the transfer of specified prior year funds, to be merged with FY 1986 authorizations for the armed forces and defense agencies. Urges the President, the Secretary of Defense, and the U.S. representative to NATO to diligently pursue cooperation in research and development of defense equipment. Specifies certain previously-authorized sums to be used for such research and development. Prohibits such funds from being used to procure equipment or services from any foreign government, foreign research organization, or other foreign entity. Requires the Director of Defense Research and Engineering to prepare a formal arms cooperation opportunities document for review by the Defense Systems Acquisition Review Council at its formal meetings. Outlines information to be included in such document. Expresses the sense of the Congress that DOD should perform more side-by-side testing of conventional defense equipment manufactured by the U.S. and NATO-member nations. Authorizes additional appropriations to acquire such test items. Specifies defense items which may be so acquired. Requires the Director of Defense Test and Evaluation to notify the Senate and House Armed Services Committees of his intent to obligate funds for such acquisitions at least 30 days before such funds are obligated. Requires a report on any testing done no later than February 1, 1986, and annually thereafter. Request certain information from DOD concerning the Strategic Defense Initiative (SDI), due at the same time that DOD expenditure requests for SDI are submitted to the Congress. Requires the Secretary of Defense to continue the development of a small intercontinental ballistic missile. Seeks continued cooperation under SDI research contracts between the U.S. and its allies, including the encouragement of joint research ventures and the safeguarding of critical technologies from unauthorized transfer to nonalliance nations. Prohibits the testing of anti-satellite weapons against objects in space until the President certifies to the Congress that the Soviet Union has performed such testing. Terminates such prohibition on October 1, 1986. Authorizes appropriations to the Air Force for FY 1986 to carry out the satellite survivability project of the Air Force Space Survivability Program. Requires the Secretary of the Air Force, not later than February 1, 1986, to report to the Senate and House Armed Services Committees concerning the survivability of U.S. satellites with respect to anti-satellite weapons. Prohibits SDI test or development of nuclear weapons in a manner inconsistent with the various nuclear test-ban treaties. Title III: Operation and Maintenance - Authorizes appropriations for the armed forces and defense agencies for FY 1986 for operation and maintenance, including funds for the reserve forces, the National Guard, the National Board for the Promotion of Rifle Practice, defense claims, and the court of Military Appeals. Authorizes additional appropriations for FY 1986 for: (1) unbudgeted increases in fuel costs and as a result of inflation; and (2) unbudgeted amounts for salary, pay, retirement, and other employee benefits for civilian DOD employees. Authorizes appropriations for FY 1986 for the working capital funds of the armed forces and defense agencies. Prohibits the use of DOD operation and maintenance funds to purchase expense items with a price of $3,000 or more. Authorizes the Secretary of Defense to provide logistical support, manpower, equipment, and other services in support of the Tenth International Pan American Games. Authorizes appropriations for such purpose. Requires, before any Pan Am Games assistance is given, the establishment of a law enforcement coordination entity to justify to the House and Senate Armed Services committees the necessity of such assistance. Makes sums available from authorized funds as necessary to the Air Force for the establishment, operation, and maintenance of a Special Operations Wing of the Air Force Reserve and for the operation of the Directorate of the Department of Defense Task Force on Drug Law Enforcement. Requires the Secretary of Defense to report to the Committees on Armed Services of the Senate and House of Representatives on the manner in which the DOD plans to obligate funds for the operation of the Special Operations Wing and the Task Force on Drug Law Enforcement. Outlines details to be included in such report. Authorizes the Secretary of a military department to donate unmarketable but otherwise edible commissary food to authorized charitable nonprofit food banks. Authorizes the Secretary of Defense to allow commissary and exchange privileges to surviving dependents of reserve members who die while on active duty or while travelling to perform active duty or inactive duty for training. Reduces the FY 1986 authorizations for operation and maintenance to the armed forces, reserves, and National Guard in specified amounts, due to prior-year cost savings. Specifies certain core-logistics functions of the armed forces and defense agencies to be subject to certain contracting-out limitations. Excludes certain functions from such limitations. Prohibits funds appropriated to the Air Force from being used to deactivate or divest any flying unit of the Air National Guard or Air Force Reserve. Authorizes the Secretary of Defense to provide certain assistance to those who have been displaced or are refugees because of the invasion of Afghanistan by the Soviet Union. Title IV: Military Personnel Authorizations - Part A: Active Forces - Authorizes strengths for active duty personnel as of the end of FY 1986. Amends the Department of Defense Authorization Act, 1981, to extend for one year the limitation on the enlistment for active duty in the armed forces of persons whose scores on the Armed Forces Qualification Test is below a prescribed level. Part B: Reserve Forces - Authorizes average strengths for the selected reserve components of the armed forces for FY 1986. Permits the reduction and increase in such strengths as specified number of reserves to serve on full-time active duty in order to organize, administer, instruct, recruit, or train the reserve components. Permits the end strength levels to be increased by two percent in the national interest. Increases the number of certain personnel authorized to be on active duty in support of the reserve components. Part C: Military Training - Authorizes average military student loads for FY 1986 for the armed forces, to be adjusted in conformity with the previously-authorized personnel strengths. Title V: Defense Personnel Policy - Part A: Civilian Personnel - Waives the application of the civilian personnel ceiling for each component of the armed forces for FY 1986. Revises provisions concerning the DOD personnel management end strengths for a fiscal year. Part B: Active Military Personnel - Increases the authorized number of majors in the Marine Corps. Revises provisions concerning service agreements of cadets of the U.S. Military Academy to define a breach of agreement by a cadet which would authorize the Secretary of the Army to transfer such cadet to the Army Reserve (in lieu of active-duty service). Similarly revises provisions concerning the service agreements of midshipmen at the U.S. Naval Academy and cadets at the U.S. Air Force Academy. Revises retirement provisions for members of the armed forces whose retirement is based upon physical disabilities incurred while entitled to basic pay to require such disability to be of a permanent and stable nature. Revises provisions concerning the discharge or reentry into duty of members with a temporary disability. Changes the name of the grade of commodore in the U.S. Navy to rear admiral (lower half). Part C: Reserve Military Personnel - Extends certain reserve officer management programs through FY 1987. Authorizes the Secretary of the Army to retain in active status until age 60 an officer who: (1) is an officer in the Army National Guard; or (2) is employed as a technician in the National Guard or Army Reserve for which membership in such Guard or Reserve is required as a condition for employment, who would otherwise be removed from active duty because of years in service. Authorizes the Secretary of the Air Force to similarly retain officers employed as technicians in the National Guard or Air Force Reserve who would otherwise be removed from active duty because of years in service. Authorizes the Secretary of the Army to retain up to ten officers in the reserve grade of major general who would otherwise be removed from active duty because of years in service or grade. Directs the Secretary of Defense to conduct a test of the Army's ability to muster members of the Individual Ready Reserve in time of war or national emergency. Requires the Secretary to report on such muster test to the Committees on Armed Services of the Senate and House of Representatives not later than February 1, 1986. Part D: Miscellaneous - Revises provisions concerning the appointment of regular and reserve warrant officers. Grants to the Secretaries of the Navy and Air Force authority to conduct independent criminal investigations through the use of their own investigative units. Authorizes the Secretary of Defense, or the Secretary of Transportation with respect to the Coast Guard when it is not operating as a service in the Navy, to award a prisoner of war medal to former U.S. prisoners of war. Excludes a lieutenant general or vice admiral serving as Director of the Department of Defense Task Force on Drug Enforcement from the number authorized to serve in that grade in the armed forces. Makes certain lawfully-admitted aliens eligible for junior reserve officers training (ROTC). Title VI: Compensation and other Personnel Benefits - Part A: Basic Pay and Allowances - Prohibits adjustment to compensation levels of members of the uniformed services in conformity with adjustment to GS-level compensation of employees of the Federal Government during 1986. Increases by 3.0 percent, effective January 1, 1986, the rates of basic pay for all military personnel. Authorizes the payment of a variable housing allowance (VHA) for certain members of the armed forces who pay child support. Repeals the authority for the payment of a station housing allowance during FY 1985 for members assigned to a duty station in Alaska or Hawaii. Authorizes the payment in advance of the VHA and the basic allowance for quarters (BAQ). Revises provisions concerning the payment of a BAQ for members without dependents who are assigned to field duty or sea duty. Limits the amount available for FY 1986 for reimbursement for accommodations in place of quarters. Extends the authorization for the payment of such reimbursement through FY 1986. Part B: Travel and Transportation - Increases from one to two months the dislocation allowance for members and/or their dependents who make an authorized move in connection with such member's permanent change of duty station. Revises provisions which enumberate the general travel and transportation allowances for members and their dependents. Defines the residence of a student dependent for purposes of the determination of dependents' travel and transportation allowances. Authorizes dependent student travel allowances for dependents of members stationed in Alaska or Hawaii. Authorizes the Secretary concerned to carry out a program to test a flat rate per diem system for travel allowances for travel performed by members of the armed forces while on temporary duty. Directs such program to begin October 1, 1985 and end September 30, 1986. Authorizes appropriate pay allowances to certain members directed to perform overnight duty at their duty station. Revises provisions concerning the allowance of travel expenses for members during a ship overhaul or inactivation. Authorizes travel allowance for travel performed in connection with certain leave. Part C: Bonuses and Special Incentive Pays - Subpart 1: Active Forces - Requires not less than 75 percent of a reenlistment bonus to be paid at the beginning of the reenlistment period, with any remaining amount paid in equal annual installments. Increase the special continuation pay for a Navy nuclear officer who agrees to extend his or her tour of duty for a specified period. Revises provisions concerning the period of agreement for such officers. Extends to September 30, 1990, the period during which an officer must sign a service-continuation agreement to be eligible for such special pay. Revises similarly special-pay provisions for individuals selected for officer naval nuclear power training who execute certain agreements to train for qualification in such field. Increases the bonus provided and extends until September 30, 1990, the agreement-execution date. Revises the annual incentive bonus provisions for nuclear-career officers to increase such bonus and extend to October 1, 1990, the period during which such bonuses shall be paid. Revises provisions concerning eligibility for such bonus pay. Increases incentive pay for submarine duty according to a revised table based on pay grade and years of service. Revises special pay for dental officers in the armed forces to establish annual special pay according to a schedule based on years of service. Provides additional special pay if such dental officers are board-certified. Repeals Federal law relating to continuation pay for dentists in the armed forces. Authorizes certain dental officers to execute new service agreements in order to be eligible for the increased special pay under this Act. Provides that a discharge in bankruptcy does not discharge a medical officer in the armed forces from repayment to the United States of any unearned portion of special pay paid to such officer. Increases the rate of monthly special pay for qualified enlisted members who extend their duty at designated overseas locations. Extends through FY 1988 the authorization for continuation pay for aviation officers. Subpart 2: Reserve Forces - Increases and extends through FY 1990 Selected Reserve enlistment and reenlistment bonuses. Subpart 2: Reserve Forces - Increases Selected Reserve enlistment and reenlistment bonuses. Authorizes a prior-service enlistment bonus for former enlisted members who enlist in a certain unit of the Selected Reserve of the Ready Reserve. Requires repayment of any unearned bonus for those persons who fail to satisfactorily serve any agreed-upon enlistment or reenlistment period. Prohibits the payment of any bonus for an enlistment after September 30, 1990. Increases the Selected Reserve affiliation bonus and extends the eligibility date for payment of such bonuses to September 30, 1990. Authorizes incentive pay for members of the Selected Reserve who are assigned to certain high-priority units. Limits the amount of such pay to a maximum of $10 per drill. Revises provisions concerning eligibility for an active-duty reenlistment bonus. Extends through September 30, 1990, the enlistment and reenlistment bonus payments of the Individual Ready Reserve. Authorizes the payment of a bonus for the enlistment or reenlistment for a period of three or six years in the Individual Ready Reserve of a person with critical skills. Provides amounts of such bonuses, depending upon the length of service agreed to. Authorizes the Secretary of Defense to require muster or drill on an annual basis for those receiving such bonuses. Modifies the computation of hazardous duty incentive pay for members of the Selected Reserve. Authorizes repayment by the Secretary concerned of education loans of certain health professionals who serve in the Selected Reserve. Specifies those individuals eligible for such loan repayments. Limits the amount of such loan repayment to a maximum amount of $3,000 per year of service, with a total amount not to exceed $20,000. Makes members of the Selected Reserve eligible for the armed forces health professions scholarship program. Increases from 5,000 to 7,500 the number of members who may be appointed to such program. Part D: Health Care Matters - Authorizes the Secretary of Defense to establish dental benefit plans for spouses and children of members of the uniformed services who are on active duty for a period of more than 30 days. Requires members enrolling in such plan to pay a share of the member's premium. Prohibits such dental benefits from including a benefit other than: (1) diagnostic, oral examination, and preventive services and palliative emergency care; and (2) basic restorative and composite services and dental appliance repairs. Eliminates the payment of a deductible under the Civilian Health and Medical Program of the Uniformed Services (CHAMPUS) and co-payment for active duty dependents living in areas remote to a medical facility of the armed forces. Limits to $1,000 the annual payment for catastrophic loss protection under CHAMPUS. Limits to $3,000 the annual payment for health care coverage under CHAMPUS. Authorizes medical and dental care to dependents of members: (1) who are on active duty for more than 30 days or who die while on that duty; or (2) who die while in a certain status or traveling to perform in a certain status. Authorizes similarly CHAMPUS care for such dependents. Provides CHAMPUS coverage for military dependents for certain organ transplants, under specified conditions. Directs the Secretary of Defense to establish and appoint, within 180 days after the enactment of this Act, an Advisory Panel on Medical Aspects of Casualty Resolution (the panel) to study procedures used by the military departments for medical casualty investigations of members who die or are seriously injured while on active duty. Requires the panel, after conducting such study, to make appropriate recommendations to the Secretary of Defense concerning autopsies and other concerns related to the investigation of military casualties. Provides for payment through DOD of the expenses of such panel. Requires the panel to report to the Secretary within one year after its appointment. Requires the Secretary, 180 days thereafter, to file such report with the Congress, together with recommendations. Provides that no person under the jurisdiction of the Secretary of a military department may provide health-care independently as a health-care professional unless the person has a current license to provide such care. Allows the Secretary of Defense to waive such requirement in unusual circumstances. Provides civil penalties for the unlicensed practice of health-care. Excepts from such requirement during the three years beginning on the date of enactment of this Act any person who on the date of enactment of this Act is a member of the armed forces. Part E: Military Retirement - Limits amounts available to the DOD for military personnel accounts for FY 1986 for basic pay and payment into the Department of Defense Military Retirement Fund for each military department. Requires the Secretary of Defense to submit to the Congress a report proposing changes in the military nondisability retirement system. Outlines proposed changes to be included in such report. Specifies the accounting methods to be used in determining the cost of any changes in such retirement system. Part F: Survivor Benefit Plan Improvements - Survivor Benefit Plan Amendments of 1985 - Subpart 1: General Program Changes - Revises provisions concerning the computation of Survivor Benefit Plan annuities to provide varying portions of the base amounts of such annuities depending upon the age of the annuitant. Provides that the annuity for a former spouse shall be 55 percent of the pay of the person who elected to provide such annuity. Revises computation of annuities to a surviving spouse to provide varying percentages of the deceased's pay to such annuitant depending upon the age of such annuitant. Provides that any such annuities shall be reduced by the amount of dependency and indemnity compensation the surviving spouse is entitled to. Provides for a reduction of annuity upon the annuitant's attaining age 62. Outlines those eligible for annuities under the SBP. Provides that such annuities shall also be reduced by any monthly amount the annuitant is entitled to under title II (Old Age, Survivors and Disability Insurance) of the Social Security Act, for annuities from both former active-duty and reserve component members. Requires the Secretary of Defense to prescribe regulations for the determination of annuity amounts, taking into consideration specified information. Provides for SBP coverage for members who die after completing 20 years of service, but before becoming eligible for full retirement due to a shortage of active commissioned service. Makes eligible for such annuity the surviving spouse and dependent children of a person who dies on active-duty after September 20, 1972, and the former spouse of a person who dies after September 7, 1980. Allows the Secretary concerned to pay an annuity to the surviving spouse of a person eligible to provide a reserve-component annuity but who dies within 90 days of qualifying for such annuity. Makes eligible for such annuity the surviving spouse and dependent children of any person who dies after September 30, 1978, and the former spouse of a person who dies after September 7, 1982. Modifies the threshold amount for the calculation of the reduction of retired pay upon attaining a specified age. Requires spousal concurrence of certain choices made by a Survivor Benefit Plan (SBP) participant with regard to plan coverage. Allows a person who is providing SBP coverage for a spouse or a spouse and child and who remarries to elect not to provide coverage for the previous spouse upon remarriage, provided he or she obtains the consent of the previous spouse. Allows such person the option of providing higher coverage to a former spouse after remarriage if such person had not previously been providing the highest possible coverage. Allows an SBP participant to provide an annuity for a former spouse and the dependent child of such spouse if such child resulted from the person's marriage to that former spouse. Allow persons who made an annuity election before the date of enactment of this Act to make a new election under the provisions of this Act. Requires a widow or widower whose annuity is readjusted to repay any amount overpaid. Reduces an annuity by the amount of any dependency and indemnity compensation received. Subpart 2: Provisions Relating to Rights for Spouses and Former Spouses - Requires spousal concurrence for an election: (1) not to participate in a SBP; (2) to provide a less-than-maximum spousal annuity; or (3) to provide an annuity for a dependent child but not for the person's spouse. Makes similar requirements for reserve-component annuity elections. Provides for an election without spousal concurrence if the spouse's whereabouts cannot be determined or in other unusual circumstances. Requires certain parties to be informed of the possibility or the occurrence of such annuity elections. Part G: Miscellaneous - Extends legal representation under the Uniform Code of Military Justice to civilians employed by or accompanying the armed forces overseas. Directs the Secretary of Defense to require a surcharge to be made upon each person whom a sale is made at a military animal disease prevention and control center. Changes from September 1, 1976, to February 9, 1976, the trigger date for the payment of certain military accrued leave. Standardizes Naval and Marine Corps service pay allotments with that of the Army and Air Force. Authorizes deductions from pay of members who make checks drawn or payable to the United States that are dishonored. Requires certain notification to and failure to act on the part of the member before any such deductions are made. Makes such section applicable to checks drawn or made after the date of enactment of this Act. Title VII: Civil Defense - Authorizes appropriations for FY 1986 for civil defense matters. Title VIII: Procurement Policy Reform and Other Procurement Matters - Directs the Secretary of Defense to require a covered contract to provide that if the contractor submits to DOD for payment costs specified by law as unallowable, then: (1) such cost will be disallowed; and (2) a specified penalty will be imposed upon such contractor. Provides civil and criminal penalties for contractors who knowingly submit for reimbursement costs unallowable by law. Lists the following costs as disallowed under such a contract: (1) entertainment and social activities; (2) costs incurred to influence action on legislation or appropriation matters pending before the Congress; (3) costs or the defense of any fraud proceeding; (4) fines and penalties imposed for noncompliance with Federal, State, or local laws and regulations; (5) costs of membership in any social or dining club or organization; (6) alcoholic beverages; (7) contributions for donations; (8) advertising; (9) models, gifts, souvenirs, or other memoribilia; (10) other items and prescribed by the Secretary of Defense; and (11) aircraft travel to the extent such costs exceed the standard commercial fare. Allows such noncommercial air travel in specified limited circumstances. Requires the Secretary of Defense, within 150 days after the enactment of this Act, to issue regulations concerning the allowability of indirect contractor costs under DOD contracts. Requires such regulations to: (1) define in detail unallowable costs; and (2) provide that specific costs unallowable under one cost principle shall not be allowable under any other cost principle. Provides that such regulations shall require than a contractor provide current, accurate, and complete documentation to support the allowability of an indirect cost. Requires a defense contract auditor, whenever feasible and practicable, to be present at any meeting or negotiation regarding the allowability of an indirect cost. Requires a contractor to certify that all indirect costs included in a final settlement proposal are allowable. Allows the Secretary of Defense or the Secretary of the military department concerned to waive such certification in specified limited circumstances. Gives the Secretary of Defense the authority to subpoena defense contractor records in order to determine the validity of submitted costs. Provides for the limited delegation of such authority. Limits to five years the tour of duty of a principal contracting officer of DOD with respect to a defense contract. Authorizes the Secretary of Defense to waive such limitation in specified exceptional circumstances. Prohibits the Secretary of Defense and the Secretaries of the military departments, in contracting for off-duty postsecondary education services for members of the armed forces or defense agencies, from discriminating against an associate degree school due to lack of authority to award a baccalaureate degree. Prohibits the limit of course offerings to a single educational institution, with specified exceptions. Requires the Comptroller General to carry out a study to review all available information concerning the organizational structure for defense procurement. Requires the Comptroller to report to the Congress recommendations concerning the feasibility of creating an agency outside DOD to oversee all defense procurement. Requires such report within one year after the enactment of this Act. Revises provisions concerning the requirement of a minimum percentage of competitive defense procurements during a fiscal year by DOD. Directs the Secretary of Defense, within 180 days after the enactment of this Act, to report to the Congress concerning suspension and debarment of defense contractors. Requires the Secretary to ensure that an independent compliance officer monitors the activities of a debarred or suspended defense contractor. Prohibits a former officer or employee of the Department of Defense (DOD) or former retired member of the uniformed services from accepting compensation from a Government contractor for two years following the individuals separation from Government service if, during the two year preceding separation from service, such individual had significant responsibilities for a procurement function with respect to that contractor. Specifies penalties for violations of this prohibition. Requires defense contractors to include in defense contracts a provision stating that the contractor agrees not to compensate an individual who falls under such category. Specifies penalties for a contractor's violation of this requirement. Requires contractors subject to such a contract term to issue an annual report listing specified information concerning individuals who has significant responsibilities for a procurement function, left Government within the previous two years, and was compensated by that contractor after leaving Government services. Requires the first such report no later than April 1, 1987. Requires the Secretary of Defense to assess such reports and report any possible violations to the Attorney General. Provides penalties for those contractors failing to file such report. Requires the Director of the Office of Government Ethics to have access to such reports and to submit an annual report to the Congress concerning such reports. Excludes from application of these sections those contracts for an amount less than $100,000. Requires the Secretary of Defense, not later than 180 days after enactment of this Act, to delineate the procurement functions covered by these sections and provide a list of such functions to the Congress. Allows an individual who is offered compensation which might be in violation of this Act to apply to the Director of the Office of Government Ethics for advice on the applicability of this Act to such compensation. Requires the Secretary to prepare a plan for competition for major defense acquisition programs before beginning the full-scale engineering development under any such program. Requires the Secretary to report such plan to the Senate and House Armed Services Committees, not later than at the same time the Secretary submits budget requests for full-scale engineering development programs. Outlines proposals to be included in such plan. Requires the Secretary to determine whether competitive alternative sources of competition exist for a program, and, if not, to revise the plan of competition. Requires at least two sources of supply before full-scale engineering development of a program takes place. Requires the Secretary to ensure that, of the total dollar amount of contracts awarded for a fiscal year for major acquisition programs, the amount awarded to the contractors whose proposals were most advantageous to the United States shall be greater than the amount awarded other contractors. Provides for waiver of such competition requirements in specified limited circumstances. Requires a defense that is responsible for the acquisition of property or services under a covered defense contract to record the contractor's proposed and negotiated cost and pricing data into appropriate categories such as labor costs, material costs, subcontract costs, overhead costs, general and administrative costs, fee or profit, and recurring or nonrecurring costs. Requires bills of labor to reflect a computation of work required in manufacturing parts and assemblies, and other specified information. Title IX: Department of Energy National Security Programs - Department of Energy National Security and Military Applications of Nuclear Energy Authorization Act of 1986 - Part A: National Security Programs Authorization - Authorizes appropriations for the Department of Energy (DOE) for FY 1986 for operating expenses and for plant and capital equipment in carrying out national security programs in the following areas: (1) naval reactors development; (2) weapons activities; (3) verification and control technology; (4) defense nuclear materials production; (5) defense nuclear waste and by product management; (6) nuclear safeguards and security technology development; (7) security investigations; (8) materials production; and (9) capital equipment not related to construction. Part B: Recurring General Provisions - Prohibits the use of funds authorized under this Act where the costs of the program exceed 105 percent of the program authorization or the costs exceed by more than $10,000,000 the amount authorized by this Act, whichever is the lesser. Prohibits the use of funds authorized by this Act for programs which have not been presented to or requested of the Congress unless the Secretary of Energy transmits to the appropriate committees a full and complete statement of the action proposed and 30 days have expired since such statement was submitted. Authorizes the Secretary to carry out any general plant project only if the maximum estimated cost of the project does not exceed $1,000,000. Sets forth procedures for the approval of projects which exceed by more than 25 percent their estimated cost, and exempts from such procedures any project which have an estimated cost of less than $5,000,000. Allows the transfer of funds from specified projects to other Government agencies for the performance of work for which the appropriation is made. Authorizes the Secretary to perform construction design services for construction projects in support of national security programs. Allows authorizations to be adjusted for pay and benefits increases for Federal employees. Part C: Special Programs Provisions - Reduces the amounts appropriated under this Act by 32,280,000, such funds being obtained from other funds, or through management savings and program cuts. Authorizes the Secretary of Energy to obligate specified funds during FY 1986 for the purpose of carrying out a contract with Anderson County and Roane County, Tennessee, and the city of Oak Ridge, Tennessee for payments pursuant to the Atomic Energy Community Act of 1955. Requires the Secretary, no later than February 1, 1986, to report to the appropriate congressional committees concerning the need for any further financial assistance under such Act. Prohibits the obligation of funds for such assistance until the Secretary has complied with certain notice-and-wait procedures. Authorizes the Secretary to obligate specified FY 1986 funds for the renovation of a DOE building at Oak Ridge, Tennessee if the Secretary determines that the building requires such renovations. Prohibits funds appropriated under this title from being used for any of the following purposes: (1) publicity or propaganda purposes not authorized by the Congress; (2) advertising (with limited exceptions); (3) influencing legislative action on matters pending before the Congress; (4) contributions or donations; (5) initiation fees or social dues; (6) gifts; (7) entertainment costs; and (8) the use of corporate aircraft for other-than-business purposes. Title X: Military Family Policy and Programs - Military Family Act - Establishes in the Office of the Secretary of Defense an Office of Family Policy to coordinate programs and activities of the military departments relating to military families. Requires the Secretary, no later than September 30, 1986, to report to the Congress on the activities of such Office, together with recommendations concerning the well-being of military families. Transfers the Military Family Resource Center of DOD to the Assistant Secretary of Defense for Manpower, Installations, and Logistics. Authorizes the Secretary to conduct surveys of military families to determine the effectiveness of Federal programs and the need for new programs. Increases employment opportunities for spouse of military members stationed outside the United States. Directs the Secretary to issue regulations ensuring employment opportunities for military spouses in the same geographic area as their husband or wife is assigned. Directs the Secretary to have established at each military installation a youth sponsorship program to facilitate the integration of children to new surroundings brought about due to a parent's permanent change of station. Allows certain DOD transportation and travel funds to be obligated for travel within or between the contiguous United States. (Currently, such funds are used only for overseas travel). Authorizes the Secretary to contract with firms to provide certain relocation and housing assistance to families of military members. Raises the amortization period for parking facilities provided for military members and families for house trailers and mobile homes from 15 to 25 years. Revises provisions concerning the cost of unaccompanied personnel housing for certain members of the uniformed services. Prohibits charging certain enlisted personnel and their families a price for meals sold at messes in excess of a level sufficient to cover food costs. Requires the Secretary of Defense to provide payments to military child care facilities for reimbursement of food costs. Requires the Secretary, no later than December 31, 1985, to report to the Congress on the feasibility of having DOD issue food stamps to overseas military household. Outlines information to be included in such such report. Requires the Secretary to request each State to provide for the reporting to the Secretary of any information concerning known or suspected instances of child abuse and neglect where the person having care of the child is a member (or spouse of a member) of the armed forces. Directs the Secretary, within one year after enactment of this Act, to report to the Congress on the availability and affordability of off-base housing for members of the armed forces and their families. Outlines information to be included in such report. Directs the Secretary at the same time to report to the Congress proposed administrative or legislative action which would facilitate families of military members making a permanent change of station so that their dependent children will not be unduly disrupted or burdened by transferring between schools with different graduation Title XI: General Provisions - Part A: Financial Matters - Authorizes the transfer of authorizations to DOD between departments in the national interest. Limits to $2,000,000,000 the total amount of authorizations which can be so transferred. Requires the Secretary of Defense to promptly notify the Congress of any such transfers. Requires the Secretary of Defense to have established in each military department an accounting procedure to aid in the cost and control of contracted advisory and assistance services. Requires the Secretary, within six months after the date of enactment of this Act, to report to the Congress concerning such accounting procedure. Requires the Secretary, within six months after the enactment of this Act to prescribe regulations describing such advisory and assistance documents presented to the Congress in support of the annual budget to identify such advisory and assistance services. Directs the Secretary to submit to the Congress a five-year defense plan for FY 1986-1990 in which: (1) the total amount if new budget authority proposed for DOD for each fiscal year is not more than three percent over the amount proposed for the previous fiscal year, adjusted for inflation; and (2) the total amount of new budget authority is not more than the amount proposed for the previous fiscal year, adjusted for inflation. Outlines matterw to be included in such report and requires such report within 90 days after enactment of this Act. Directs the Secretary, within 90 days after enactment of this Act, to report to the Congress an explanation of what DOD does in any fiscal year with funds unexpended as a result of lower inflation. Outlines information and recommendations to be included in such report. Authorizes appropriations of DOD for FY 1986 for the transportation of nonlethal assistance to Afghan refugees. Requires reports by the Secretary to the Senate and House Armed Services Committees of unobligated balances of DOD. Outlines matters to be included in such reports and requires such reports to be submitted concurrently with the President's annual budget submission to the Congress. Authorizes the transfer of certain funds for FY 1985 for civilian and military pay raises as provided by law. Part B: Defense Management - Requires specified additional information to be included in annual selected acquisition reports. Requires the Secretary of Defense, within 30 days after the enactment of this Act, to resubmit the selected acquisition reports for the first quarter of FY 1985. Requires certain additional information concerning items of equipment of the National Guard and the reserve components to be included in annual DOD operations and maintenance reports. Prohibits funds appropriated to the DOD from being used to provide certain technical information or assistance to foreign governments. Requires the Secretary of the Navy to ensure that at least one-half of the depot-level maintenance work for naval vessels for FY 1986-1988 is carried out in the United States. Requires the Secretary of Defense to conduct a study for formulating a plan for the destruction of chemical agents and munitions before any such destruction takes place. Requires a copy of such study to be submitted to the Committees on Armed Services of the Senate and House of Representatives. Directs the Secretary of Defense to carry out a demonstration project testing the use of a certain computer system in military hospitals. Outlines certain information concerning such project and requires a report by the Secretary of the Congress. Requires the Comptroller General to report to the Congress as to whether the Secretary has properly carried out such demonstration project. Specifies various initial operational capability dates expected to be met by the Secretary of the Air Force for the Air Force Shuttle Operations and Planning Complex. Authorizes the Secretary of Defense to enter into cooperative agreements with eligible entities who agree to furnish procurement technical assistance to business entities. Authorizes the Secretary to defray 50 percent of the cost of the eligible entity's cost of providing such assistance, or 75 percent of such cost if such entity is a distressed entity. Limits to $150,000 the payment ot any single entity during any fiscal year. Provides for the geographic distribution of such assistance. Limits the total amount of such assistance during FY 1986 and 1987 to $7,500,000. Directs the Secretary of Defense to require that progress payments under a defense contract shall be paid only after such work is completed and only in accordance with a specified payment schedule. Requires contract terms, specifications, and price to be definite before progress payments for more than 80 percent of the work can be made. Establishes the Congressional Commission on Strategic Defense (the Commission) to monitor the progress of certain DOD programs known as the Strategic Defense Initiative. Outlines membership and reporting requirements of the Commission. Terminates such Commission as of October 1, 1990. Extends through October 1, 1987, the prohibition on entering into contracts for the performance of firefighting and security functions within DOD. Requires the Secretary, no later than March 1, 1986, to report to the Congress an assessment of firefighting and security functions within DOD. Part C: Miscellaneous Reporting Requirements - Extends the date for the submission of certain reports by the Commission on Merchant Marine and Defense. Directs the Secretary of the Navy to report to the Committees on Armed Services of the Senate and House of Representatives on the industrial base for the construction, overhaul, and repair of naval vessels. Outlines information to be included in such report, including an assessment of the current capabilities of the shipyard base. Prohibits the obligation of funds for the design or construction of nuclear reactor components for the SSN-21 class submarine until the Secretary of Navy makes a report on such to the Committees on Armed sErvices of the Senate and House of Representatives. Directs the Secretary of Defense to conduct a feasiblity study and a demonstration project to stocking American-produced beef, pork, and lamb in three Air Force commissaries in Europe to test their saleability. Requires the Secretary to report the results of such study and project to the Congress within one year after enactment of this Act. Directs the Secretary, within 90 days after enactment of this Act, to report to the Senate and House Armed Services Committees concerning certain matters involved in the testing of chemical warfare agents. Directs the Secretary to conduct a study of providing a system of point defense for land-based strategic forces. Requires a report to the Congress on such study no later than April 30, 1986. Directs the Secretary, no later than six months after the enactment of this Act, to report to the Congress a plan for revising the organizational structure of the military health-care delivery system in order to accomplish certain specified goals. Requires the Secretary of each military department and the Joint Chiefs of Staff to conduct independent studies concerning such matter. Directs the President, within 30 days after enactment of this Act, to report to the Congress concerning the possible dismantling of Poseidon-class submarines. Directs the Secretary of the Navy to report to the Senate and House Armed Services Committees on the possible removal of the Basic Point Defense Missile System for naval amphibious vessels. Prohibits the Secretary from removing such system until the report is submitted. Directs the Secretary of Defense, no later than March 1, 1986, to report to the Senate and House Armed Services Committees its annual report on nuclear winter findings and policy implications. Requires reports on the same subject on March 1 of 1987 through 1990. Directs the Secretary of the Army to conduct a study on possible retirement-benefits increases for members of the Philippine Scounts who served during World War II. Requires the Secretary to report his findings to the Senate and House Armed Services Committees within one year after the enactment of this Act. Directs the Secretary of Defense, on or before November 1, 1985, to report to the Congress concerning the ability of U.S. industries to serve the defense needs of the United States. Directs the Secretary and the Administrator of the Small Business Administration, within 180 days after enactment of this Act, to report to the Senate and House Armed Services and Small Business Committees, respectively, on the feasibility of requiring competitive procedures for DOD contracts awarded under the Small Business Administration's set-aside program. Directs the Secretary of Defense, by March 31, 1986, to report to the Congress on DOD efforts to increase defense contract awards to Indian-owned businesses. Directs the Secretary, within 90 days after enactment of this Act, to report to the Congress concerning possible ways the United States may further its national security interests in the Far East. Outlines matters to be included in such report. Part D: Technical and Clerical Amendments - Eliminates various gender-based distinctions contained in specified Federal provisions pertaining to the armed forces. Eliminates service credit for certain service as a nurse, woman medical specialist, or civilian employee of the Army Medical Department. Eliminates the entitlement to a higher grade for retirement of certain regular and reserve commissioned officers, Army Nurse Corps members, or dieticians or physical therapists who performed active duty during a specified time period. Makes technical amendments relating to benefits for certain Defense Intelligence Agency personnel. Provides benefits similar to those for foreign service officers to certain members assigned to overseas duty witht he Defense Intelligence Agency. Part E: Strategic Defense Initiative Commission - Directs the President, within 30 days after enactment of this Act, to establish a Strategic Defense Initiative Commission (the Commission) to oversee the Strategic Defense Initiative program. Outlines duties, membership, staffing, and administrative powers of such Commission. Directs the Commission, not later than six months after enactment of this Act, to report to the President and each House of the Congress its findings and recommendations with regards to the SDI program. Terminates the Commission after the submission of such report. Part F: Miscellaneous - Authorizes the provision of residence-to-work transportation for the Commandant of the Coast Guard. Requires to be deposited annually in the National Defense Stockpile Transaction Fund 30 percent of all moneys accruing to the United States from lands in the naval petroleum and oil shale reserves (Currently, such deposit is required only for collections made during FY 1985). Expresses the sense of the Congress that the President should recognize, by Presidential proclamation, the contribution of our young men to the success of the peacetime registration program. Prohibits a Federal officer, employee, or member of the Congress from accepting any gift or momento valued at $100 or more in connection with a naval shipbuilding ceremony. Authorizes the Secretary of the Navy to transfer certain aircraft to institutions leasing such aircraft. Requires the Secretary of Defense, no later than January 15, 1986, to report to the Committees on Armed Services and on Appropriations of the Senate and House of Representatives on a proposed two-year budget cycle for the DOD. Directs the Secretary of the Navy to conduct a study on the possible use of E-2 aircraft for drug interdiction purposes along the U.S.-Mexico border. Requires the Secretary to report the results of such study to the Congress no later than September 30, 1986. Makes certain technical and clerical amendments to various provisions of Federal procurement law. Directs the Secretary of Defense, within 120 days after the enactment of this Act, to establish a test program in each military department the Defense Logistics Agency under which persons requesting a solicitation package shall be required to pay a fee. Authorizes the Commander in Chief to take necessary steps to protect U.S. armed forces against terrorism and terrorist activities. Directs the Secretary of Defense to monitor the capability of the domestic textile and apparel industrial base to support defense mobilization requirements, and report the results of such monitoring to the Congress not later than April 1 of each of the five years beginning with 1986. Directs the Secretary to provide that alcoholic beverages procured by DOD for resale on a military installation located in any State shall be procured in the States in which the installation is located. Establishes the minimum age with respect to the purchase and consumption of alcohol by State law as the minimum age on military installation located in that State. Establishes the minimum age for military installations located in more than one State or in one State but within 40 miles of another State, Mexico, or Canada, as the State law, Mexican law, or Canadian law that has the lower minimum age. Authorizes exemption under special circumstances, but requires reports from the head of the military department involved to the Secretary of Defense, who then must report such to the Congress. Authorizes the sale of certain recordings of the U.S. Air Force Band. Authorizes the Secretary of the Army to provide uranium tetrafluoride (green salt) to a contractor for the production of conventional ammunition for the Army. Authorizes the Secretary of the Army to construct an Armed Forces National Science Center at or near Fort Gordon, Georgia, for the enhancement at communications and electronics development in the interest of national security. Authorizes the Secretary to appoint an advisory board to aid in the operation of the Center. Authorizes the Secretary to make such Center available to the National Science Center for Communications and Electronics Foundation Incorporated (a nonprofit Georgia corporation) for joint use. Provides that an officer or employee of a defense contractor who is under indictment for fraud or any other felony arising out of a contract with DOD shall be personally suspended from working on or supervising a defense contract. Prohibits such person, if convicted from employment with DOD for not less than one nor more than five years. Limits the use of authorized funds for certain DOD contracting-out services. Authorizes additional appropriations for FY 1986 for the armed forces for procurement and military programs of the conventional (non-unclear) forces of the United States. Requires a certain amount of appropriated funds authorized by this Act to be used for contracts entered into with small businesses owned and controlled by socially and economically disadvantaged individuals. Requires the Secretaries of Defense and of Energy to submit semiannual reports to the Congress on their compliance with this provision, with the first such report due not later than May 1, 1986. Directs the Secretary of Defense to carry out the destruction of the existing stockpile of lethal chemical agents and munitions, such destruction to be completed by September 30, 1994. Authorizes the deferral of such weapons destruction if war, national emergency, or other exigent circumstances occur. Requires the Secretary to notify the Congress of any such deferral. Requires the Secretary to provide maximum protection to the environment during any such destruction of chemical weapons. Directs the Secretary to develop a comprehensive plan for destruction of such weapons without environmental damage. Directs the Secretary to establish within the Department of the Army a management organization to carry out such plan. Requires such organization to be established by May 1, 1986. Directs the Secretary to submit to the Congress an annual report, on December 15 of each year beginning with 1985, on activities carried out under such plan. Outlines information to be included in such reports. Prohibits, except in limited circumstances necessary for national security, any agency of the Federal Government from developing or acquiring lethal chemical agents or munitions after the date of enactment of this Act. Expresses the sense of the Congress that the President should reaffirm the U.S. policy of renouncing the first use of chemical agents and munitions under any circumstances. Authorizes the Secretary of Defense, in certain circumstances, to assign members of the armed forces to assist drug enforcement officials in drug searches, seizures, or arrests outside the land area of the United States. Authorizes the President to make cash payments to a member of the armed forces or a family member of such member who is a victim of a hostile action directed against the United States. Outliner matters and expenses for which such payments may be made. Authorizes home health care to be provided to a chronically ill dependent of an active duty member of the uniformed services, under certain conditions. Authorizes DOD to enter into contractual agreements for the education of high school students residing on the West Point military reservation. Limits the cost of such contracts. Directs the Secretary of Defense to conduct a detailed and complete study of U.S. measures to enhance crisis stability and control of nuclear weapons use. Outlines measures to be included in such study. Directs the Secretary to report the results of such study to the Senate Armed Services and Foreign Relations Committees and the House Armed Services and Foreign Affairs Committees by January 1, 1986. Expresses the sense of the Congress that the Secretary of each military department should provide for free and open competition among commercial travel agencies in the establishment of travel offices and the acquisition of travel services for official travel. Directs the Secretary of Defense to encourage the transfer of technology between DOD, other Federal agencies, State and local governments, colleges and universities, and private persons. Directs the Secretary to report to the Congress on the implementation of this provision no later than April 1, 1986. Outlines information to be included in such report. Directs the Secretary of Defense to study the desirability of reinstating the death penalty as an alternative penalty for persons convicted of espionage relating to the national defense. Directs the Secretary to report to the Congress the results of such study, together with legislative recommendations, not later than 30 days after the enactment of this Act. Directs the Secretary, no later than December 31, 1985, to submit to the Congress a plan for establishing a needs-based survivor annuity program for the surviving spouses of certain retired reservists. Authorizes the Inspector General of DOD to pay a cash award to any civilian employee of DOD whose disclosure of fraud, waste, or mismanagement has resulted in cost savings to DOD. Specifies the amount of such award and the period during which such awards may be made. Directs the Inspector General to report to the Congress concerning such cash awards on or before March 16, 1988. Directs the Secretary of Defense to similarly report to the Congress on or before March 16, 1988. Expresses the sense of the Congress that performing groups in the U.S. armed forces should use domestically manufactured entertainment equipment at patriotic and ceremonial events at the U.S. Capitol and at all Federal buildings, unless there is no domestically manufactured item of comparable quality and price. Directs the Secretary of Defense to establish a military aircraft fuel conservation program and report to the Congress concerning such program within 90 days after the enactment of this Act. Authorizes and directs the Secretary to institute a program of counterintelligence polygraph examinations for military, civilian, and contractor personnel of DOD, military departments, and the armed forces whose duties involve access to classified information. Limits the scope of questions permitted in such examination to technical questions relating to the unauthorized disclosure of classified inforamtion. Prohibits the obligation or expenditure of authorized funds for introducing U.S. armed forces into Nicaragua for combat. Provides specified limited exceptions to such prohibition. Directs the Secretary of Defense to exercise certain authorities relating to civilian employees of DOD. Expresses the sense of the Congress that the revitalization of the readiness of the special operations forces of the armed forces should command the highest priority due to the increase of violent threats in various forms to citizens and property of the United States. Authorizes the Secretary of the Navy to obligate specified funds for the acquisition of special operations weapons for the Navy for FY 1986. Directs the Secretary of Defense, not later than April 15 of eacy year, to submit to the Congress an annual report on cost savings under post-1980 DOD contracting-out procedures. Outlines information to be included in such report. Amends the Uniform Code of Military Justice to establish under such Code the offense of espionage. Allows the death penalty for such offense to be imposed only when the offense directly concerned: (1) nuclear weaponry, military spacecraft or satellites, early warning systems, or other means of defense or retaliation against large-scale attack; (2) war plans; (3) communications intelligence or cryptographic information; or (4) any other major weapons system or major element of defense strategy. Provides procedures to be followed and factors to be considered during sentencing for such offenses. Directs the Secretary of Defense to achieve a 25 percent reduction in security clearance backlogs. Authorizes appropriations for FY 1986 for such purposes and directs the Secretary to report to the Congress by April 1, 1986, on the level of funding required to achieve such reduction (if the authorized amount is insufficient). Directs the Secretary, not later than the date on which the budget is submitted for each fiscal year, to submit to the Senate and House Armed Services Committees an annual report setting forth the Secretary's plan for the performance during the next fiscal year of cost analyses of contractors for major defense acquisition programs. Earmarks specified funds for the acquisition of certain anti-submarine warfare training systems. Restricts the obligation of funds for production of MX-missile warheads. Restricts employment of the Standard Missile (SM-2N) or any associated nuclear warhead until 30 calendar days after the Secretary of the Navy submits to the Senate and House Armed Services Committees a report detailing certain information concerning such system. Prohibits the obligation of funds for the small atomic demolition munition. Directs the Secretaries of Defense and of Energy, not later than March 1, 1986, to report to the Senate and House Armed Services Committees detailing the military requirements for special nuclear materials through FY 1991. Outlines information, findings, and recommendations to be included in such report. Provides a criminal penalty for any defense contractor who knowingly and willingly permits any conviction with a defense contract.

National Defense Authorization Act for Fiscal Year 1986 - Division A: Department of Defense Authorization - Department of Defense Authorization Act, 1986 - Title I: Procurement - Authorizes appropriations for FY 1986 for procurement for the Army of aircraft, missiles, weapons, tracked combat vehicles, and ammunition and for the unspecified procurement. Prohibits funds appropriated pursuant to this or any other Act from being used for procuring the Division Air Defense system or for the purpose of entering into a new contract for the production and assembly of the Division Air Defense System until certain steps are taken. Prohibits the Secretary of the Army from entering into a multiyear contract for the procurement of the Armored Combat Earthmover (ACE). Prohibits funds authorized under this title from being used to contract for the procurement of 5-ton Army trucks until the Secretary certifies to the Committees on Armed Services of the Senate and the House that all engines for such trucks have undergone certain testing. Authorizes the Secretary to extend up to 18 months the 5-ton truck multiyear procurement contract in effect on the date of enactment of this Act. Authorizes the Secretary to award a multiyear contract for the procurement of 5-ton trucks not later than May 1, 1986, or notify the Committees on Armed Services of the Senate and the House of the impracticability of such a contract before February 1, 1986. Permits the use of funds appropriated for the multiple launch Rocket System (MLRS) program for FY 1985 to make economic order quantity material and component purchases for use with MLRS program end items proposed for procurement in FY 1989. Merges appropriations for FY 1986 for Army aircraft procurement with a specified amount remaining available from FY 1985 for such procurement. Authorizes appropriations for the Navy and Marine Corps for FY 1986 for the procurement of aircraft, missiles, weapons, tracked combat vehicles, and shipbuilding and conversion and for other unspecified procurement. Authorizes the Secretary of the Navy to enter into multiyear contracts for the purchase of LHD-1 class amphibious assault ships. Permits such contracts to include an unfunded cancellation ceiling. Sets aside a specified amount of the funds authorized for shipbuilding and conversion to be available only for the aircraft carrier service life extension program. Prohibits a certain amount of such set-aside funds from being obligated or expended until the Secretary of the Navy makes certain certifications to the Committees on Armed Services of the Senate and the House concerning a service life extension program for the U.S.S. Kitty Hawk. Prohibits funds authorized under this title from being obligated or expended for the procurement of C-12 or C-12 type aircraft unless such aircraft are procured through competitive procedures. Prohibits funds appropriated for shipbuilding and conversion from being obligated or expended until the Secretary of Defense has reported to the Committees on Armed Services of the Senate and the House on procedures which would permit allied or friendly nations to construct diesel-electric submarines in U.S. shipyards. Prohibits the Secretary of the Navy from entering into multiyear contract for the procurement of P-3C Orion aircraft. Authorizes the transfer of prior-year funds remaining available for use in FY 1986 for shipbuilding and conversion. Authorizes appropriations for the Air Force for FY 1986 for procurement of aircraft and missiles and for other procurement. Authorizes appropriations for the reserve components of the armed forces for FY 1986 for procurement of aircraft, missiles, tracked combat vehicles, ammunition, and other weapons, and for other unspecified procurement. Authorizes appropriations to the defense agencies for FY 1986. Extends through FY 1986 the authority of the Secretary of Defense, in carrying out the Multilateral Memorandum of Understanding Between the NATO Ministers of Defense concerning the NATO AWACS program, to waive the reimbursement for the cost of specified functions performed by certain personnel and to assume contingent liability for program losses and specified charges. Title II: Research, Development, Test, and Evaluation - Authorizes appropriations for the armed forces and defense agencies for FY 1986 for research, development, test and evaluation. Requires that a specified amount of the funds authorized to the Navy be used only for the Navy Oceanography Program. Requires that specified amounts of the funds authorized to the defense agencies be used for: (1) the hardened ballistic missile materials program; and (2) computer and related research at Syracuse University, New York. Requires, before any decision is made regarding the full-scale development of a small intercontinental ballistic missile or the selection of its basing sites, the Secretary of the Air Force to submit to the appropriate congressional committees an environmental impact statement with respect to such development and basing. Title III: Operation and Maintenance - Authorizes appropriations for the armed forces and defense agencies for FY 1986 for operation and maintenance, including funds for the reserve forces, the National Guard, the National Board for the Promotion of Rifle Practice, defense claims, and the court of Military Appeals. Authorizes the transfer of funds from the Foreign Currency Fluctuations, Defense Fund to the operation and maintenance accounts of the military departments in specified amounts. Authorizes additional appropriations for increases in civilian personnel costs, unbudgeted increases in fuel costs, and inflation. Authorizes appropriations for FY 1986 for the working capital funds of the armed forces and defense agencies. Requires the Secretary of Defense, not later than December 1, 1985, to submit to the appropriate committees of the Congress a plan for the establishment and operation during FY 1986 of a pilot program for the exchange of visits between high-ranking U.S. military and civilian officers and personnel and their counterparts from the Soviet Union. Outlines details to be included in such plan. Authorizes certain appropriated funds to be available for travel and subsistence expenses for those participating in such program from the United States. Authorizes the Secretary of Defense to use certain funds appropriated to the Department of Defense (DOD) in support of the Tenth International Pan American Games to be held in Indianapolis, Indiana, in August, 1987. Directs that such support be in the form of logistical support, personnel services, and other services and equipment. Title IV: Personnel Authorizations - Part A: Active Forces - Authorizes strengths for active duty personnel as of the end of FY 1986. Amends the Department of Defense Authorization Act, 1981, to extend for one year the limitation on the enlistment for active duty in the armed forces of persons whose score on the Armed Forces Qualification Test is below a prescribed level. Part B: Reserve Forces - Authorizes average strengths for the selected reserve components of the armed forces for FY 1986. Permits the reduction and increase in such strengths as specified. Authorizes a specified number of reserves to serve on full-time active duty in order to organize, administer, instruct, recruit, or train the reserve components. Permits the end strength levels to be increased by two percent in the national interest. Part C: Civilian Personnel - Authorizes an end strength for civilian personnel for the Department of Defense for FY 1986. Requires the apportionment of such personnel among the various military branches and departments. Requires the Secretary of Defense to report to the Congress on such allocation within 60 days after the enactment of this Act. Specifies the types of civilian employees to be included in such end strengths. Permits the Secretary to increase the number of such personnel by two percent in the national interest. Directs the Secretary to notify the Congress of any such increase. Part D: Military Training Student Loads - Authorizes average military training student loads for each component of the armed forces for FY 1986. Requires the adjustment of such loads as the manpower strengths of each component are adjusted. Title V: Compensation and Other Benefits; Educational Assistance and Miscellaneous Personnel Matters - Prohibits adjustment to compensation levels of members of the uniformed services in conformity with adjustment to GS-level compensation to Federal employees during FY 1986. Increases by three percent the rates of basic pay, basic allowance for quarters, and basic subsistence allowance for members of the uniformed services, effective January 1, 1986. Prohibits a member of the uniformed services serving in Alaska or Hawaii from being paid a station housing allowance. Excepts from such provision those already serving in Alaska or Hawaii the day before the enactment of this Act. Prohibits all such members receiving a station housing allowance from receiving a variable housing allowance. Prohibits a member from receiving housing allowances which exceed actual housing costs. Allows the basic allowance for quarters and the variable housing allowance to be paid in advance. Increases the family separation allowance. Requires temporary lodging expenses to be paid to a member making a permanent change in a duty station. Increases the mileage allowance for minor dependents of members making a permanent change in duty stations. Increases the weight allowances for the transportation of household goods of members making a permanent change in duty stations, according to a table based on pay grades. Extends through September 30, 1985, the availability of funds appropriated under the Department of Defense Appropriations Act, 1985 to execute agreements for the continuation of pay to certain dental officers. Revises eligibility for basic allowance for quarters to disallow such allowance for members who make a permanent change of station for either field duty or sea duty. Increases the frequency of travel and transportation allowances to a home port when a member is away from home port and involved in a ship overhauling or inactivating by providing such allowances every 60 days a member is away from such home port. Provides transportation allowances from the home port to the port of overhauling for members' dependents, including spouses. Raises the dislocation allowance from one to two months of a member's basic allowance for quarters. Provides travel allowances for travel undertaken in connection with certain leave. Provides travel and transportation allowances for survivors of deceased members to attend the member's burial ceremonies, if such member dies while on active duty. Provides certain time and geographic limitations for such allowances. Increases the death gratuity paid to survivors of members who die while serving on active duty. Includes officers along with enlisted crew members as eligible for receiving hazardous duty pay when such members are involved in frequent and regular aerial flight. Revises tables for hazardous duty pay for enlisted members and officers. Revises similarly tables for the payment of special pay while on duty at certain places. Authorizes the payment of special pay for positions of unusual responsibility which are of a critical nature to an armed force under the Secretary concerned. Authorizes such pay when a member is assigned to and present within a danger area for a period of not less than six days. Raises special pay for naval officers who work in connection with nuclear propulsion plants and who agree to extend their commission in such work for specified periods. Outlines provisions for the payment of such special pay. Extends from September 30, 1987, to September 30, 1990, the date by which a naval officer is required to execute an agreement-to-extend in order to be eligible for such special pay. Authorizes special pay for naval officers selected for nuclear power training who agree to participate in such a training program for assignment to active duty. Raises the amount of such pay and extends through September 30, 1990, the period of execution for eligibility for such pay. Revises similarly provisions for special pay to nuclear career officers not above grade 0-6 who have completed less than 26 years of commissioned service. Raises from $50 to $80 the special monthly pay for qualified enlisted members extending their tour of duty at designated locations overseas. Part B: Extension of Expiring Bonus Authority, Benefits, and Personnel Management Authorities - Extends for one year, through FY 1986, the authority to provide reimbursement in place of quarters to crew members assigned to a naval vessel rendered temporarily uninhabitable. Extends the special pay provisions for certain Navy aviation career officers from FY 1985 to FY 1986. Extends for two years, through FY 1987, the authority to pay reenlistment bonuses and bonuses to reserve commissioned officers who extend their periods of active duty. Increases the number of certain officer personnel who may be on active duty in specified grades. Part C: Educational Assistance Programs - Authorizes the Secretary of Defense to repay any loan made, insured, or guaranteed under part B of the Higher Education Act of 1965, or any loan made under part E of such Act, after October 1, 1975. Specifies those who qualify to have their loans so repaid. Specifies percentages and maximum amounts of such loan repayments. Defines loan repayment recipients as those persons who enlist or reenlist in the Selected Reserve of the Ready Reserve of an armed force who enlist or reenlist for service on active duty after September 30, 1980. Amends the Veterans' Educational Assistance Act of 1984 to repeal the requirement that a member must have served on active duty without a break in such service since December 31, 1976, in order to be eligible for veteran' educational assistance under such Act. Reduces by $100 per month for 12 months the basic pay of a member who elects to become entitled to such assistance. Requires an election by a member to receive such assistance within 120 days of entering upon active duty. Provides for revocation of such election. Provides for reimbursement to a member of that portion by which the $100-per-month pay reduction exceeds the amount of educational assistance received for any reason. Authorizes the Secretary of the Navy to permit a member to transfer all or a portion of such educational entitlement to a spouse or dependent children upon certain conditions. Part D: Miscellaneous Personnel Matters and Benefits - Limits the size of certain headquarter staffs within the Department of Defense. Authorizes the Governor of the U.S. Soldiers' and Airmen's Home to exempt up to two physicians employed by the Home from reductions in retired pay due to such employment. Revises general military law clarifying the precedence of the Purple Heart award. Authorizes the President to advance two retired lieutenant generals to the grade of general on the retired list of the Air Force. Authorizes members of the Selected Reserve of the Ready Reserve to have limited use of commissary stores. Repeals the test program on such use by Selected Reserve members created under the Department of Defense Authorization Act, 1984. Part E: Military Retirement - Limits the amount available for obligation to each branch of the armed forces for basic pay and payments into the Department of Defense Military Retirement Fund for FY 1986. Directs the Secretary of Defense, not later than September 1, 1985, to submit to the Congress a report proposing changes in the military nondisability retirement system, in other elements of the military compensation system, or in other military personnel programs. Outlines changes to be proposed in such report. Requires the Secretary to submit a separate report on the anticipated effects such changes will have on recruitment and retention of armed forces. Title VI: (Reserved) Title VII: Department of Defense Efficiency and Economy Matters - Department of Defense Efficiency and Economy Act of 1985 - Directs the Secretary of Defense, within 90 days after enactment of this Act, to issue proposed regulations dealing with the unallowability of contractor indirect costs. Requires the Secretary, in determining allowable costs, to consider whether the costs incurred benefit the United States or are necessary for the operation of the business. Specifies certain costs which should be considered unallowable under such new regulations. Authorizes the Secretary to make disallowances and to assess a penalty of three times the disallowed expense whenever there is clear and convincing evidence that such expense is disallowable. Considers as a false claim specifically punishable under specified Federal law an expense submitted by a contractor for reimbursement that was not actually incurred. Requires the Secretary, within 90 days after the enactment of this Act, to report to the Armed Services Committees of the Congress on specific actions taken to address the problems related to spare parts purchasing by DOD. Requires the Secretary to issue proposed regulations and legislation as part of such report if such problems have not been remedied. Increases penalties under specified provisions of Federal law for the making of false claims in DOD procurement. Part B: Competitive Labor Purchase Requirements - Amends the Davis-Bacon Act to provide that the minimum wages paid on a construction, alteration, or repair contract awarded by DOD shall be the prevailing wages as determined by the Secretary of Labor. Outlines the manner in which the Secretary shall make such determination. Revises provisions dealing with wage-rate determinations to require the consideration of local wage rates for private industry (currently, surveys of wages paid outside the local area are used) in the determination of the prevailing rate for employees under certain DOD contracts. Makes inapplicable to DOD contracts certain Federal provisions which require an overtime rate of pay for work performed after eight hours of work per day. Requires wages of employees DOD contracts to be computed on a 40-hour week, with hours in excess of 40 hours to be compensated at not less than one and one half times the basic rate of pay. Outlines the liability of a contractor or subcontractor for unpaid wages. Part C: Miscellaneous Cost Savings Provisions - Removes restrictions on contracting-out authority of the Secretary if he or she determines that such contracting-out would be cost-effective and in the best interest of the national defense. Authorizes the Secretary to close or realign any military installation, upon certain considerations, if the President submits a budget reflecting a budget deficit in a fiscal year and the Secretary notifies the Congress at least 60 days prior to taking action. Title VIII: National Defense Stockpile - Authorizes the President, effective October 1, 1985, to dispose of certain quantities of specified materials currently held in the National Defense Stockpile. Requires to be deposited into the National Defense Stockpile Transaction Fund 30 percent of all money accruing to the United States during FY 1986 from lands in the naval petroleum and oil shale reserves. Title IX: General Provisions - Limits to $1,000,000,000 the size of the Special Defense Acquisition Fund. Grants limited authority for the Secretary of Defense to exceed the permanent ceiling on U.S. forces assigned to NATO. Requires the Secretary of Defense, within 60 days of the date of enactment of this Act, to advise the Committees on Armed Services of the Senate and the House of Representatives, in writing, of his or her views regarding the desirability of legislation that would prohibit the inclusion of contractor administrative and general overhead expenses in the computation of contractor profits. Limits the use of authorized funds in conducting polygraph examination tests. Directs the Secretary of Defense, not later than December 31, 1986, to report to the Committees on Armed Services of the Senate and the House of Representatives on the use of polygraph examinations administered by or for DOD during FY 1986. Outlines details to be included in such report. Requires the Secretary to establish and report annually on a continuing polygraph research program to support polygraph activities within DOD. Authorizes the appropriation of funds to DOD for such program. Provides certain restrictions on the contracting for educational services which are provided to members of the armed forces or civilian DOD employees or their dependents. Directs the President, not later than December 1, 1985, and not later than December 1 of each year thereafter, to report to the Congress concerning the Soviet Union's compliance with arms control commitments. Directs the Secretary of Defense, not later than April 1, 1986, to report to the Armed Services Committees of the Senate and House of Representatives on the continued use of independent cost estimates in the planning, programming, budgeting, and selection process for major defense acquisition programs in DOD. Outlines details to be included in such report. Extends through 1988 certain reporting dates for the Commission on Merchant Marine and Defenses. Directs the President, in submitting a proposes budget for FY 1988, to submit a single proposed budget for DOD and related agencies for FY 1988 and 1989 and thereafter to submit a two-year proposed budget for DOD and related agencies biennially. Requires the Secretary of Defense, not later than July 1, 1986, to submit to the Committees on Armed Services and on Appropriations of the Senate and House of Representatives a report containing the Secretary's views on certain aspects of the proposed two-year defense budget. Abolishes the position of Administrator of Education for Overseas Dependents, the Office of Education for Overseas Dependents, and certain functions transfers from DOD related to overseas education. Revises provisions concerning the organization of the Advisory Council on Dependents' Education. Extends and expands the authority of the Secretary of Defense to transport humanitarian relief supplies to certain countries. Declares as a policy of the Congress that: (1) it supports the objective of the U.S. to reverse the erosion of the arms-limitation treaty between the U.S. and the U.S.S.R.; and (2) the Congress' approval for funds for research on the Strategic Defense Initiative does not express or imply an intention to abrogate or erode such treaty. Authorizes appropriations for FY 1986 for the purchase of foreign currencies from the Treasury Department to carry out DOD programs. Prohibits the use of any funds appropriated under authorization in this Act to be used for the B1-B aircraft program unless the Secretary of Defense first notifies the Committees on Armed Services of the Senate and House of Representatives. Division B: Military Construction - Military Construction Authorization Act, 1986 - Title I: Army - Authorizes the Secretary of the Army to acquire real property and carry out military construction projects in specified amounts at specified installations and locations. Permits the Secretary to construct or acquire family housing units at specified installations in specified amounts. Permits the Secretary to improve existing military family housing units. Title II: Navy - Authorizes the Secretary of the Navy to acquire real property and carry out military construction projects in specified amounts at specified installations and locations. Permits the Secretary to construct or acquire family housing units at specified installations in specified amounts. Permits the Secretary to improve existing military family housing units. Authorizes the Secretary to convert four transient housing units in Chinhae, Korea, to family housing units. Restricts the obligation or expenditure of funds appropriated for Naval Strategic Homeporting until the Secretary reports the Congress on such and 90 days elapse after such report is received. Title III: Air Force - Authorizes the Secretary of the Air Force to acquire real property and carry out military construction projects in specified amounts at specified installations and locations. Permits the Secretary to construct or acquire family housing units at specified installations in specified amounts. Permits the Secretary to improve existing military family housing units. Restricts the obligation or expenditure of funds appropriated for the construction of ground launch cruise missile facilities in the Netherlands until that country has approved the deployment of such missiles there. Restricts the use of authorized funds for the construction of beddown facilities for the B-1 bomber aircraft until the Secretary of the Air force has made certain notifications to the Committees on Armed Services of the Senate and House of Representatives and 21 days have elapsed since such notifications. Title IV: Defense Agencies - Authorizes the Secretary of Defense to acquire real property and carry out military construction projects in specified amounts at specified installations and locations. Permits the Secretary to construct or acquire 20 family housing units for a specified amount at classified locations. Permits the Secretary to improve existing military family housing units. Authorizes the Secretary to contract for the design and construction of a research and engineering facility for the National Security Agency in Fort Meade, Maryland. Title V: North Atlantic Treaty Organization Infrastructure - Authorizes the Secretary of Defense to make contributions for the North Atlantic Treaty Organization (NATO) Infrastructure program. Title VI: Authorization of Appropriations and Recurring Administrative Provisions - Authorizes appropriations for fiscal years after FY 1985 for military construction, land acquisition, and military family housing functions of the Department of the Army, the Navy, and the Air Force and the defense agencies. Authorizes appropriations for the NATO Infrastructure program. Limits the total costs of all projects to the total amounts authorized to be appropriated for each military department concerned. States that such authorizations shall expire at the end of FY 1987 except as otherwise specified. Establishes maximum amounts on certain expenditures, including unspecified minor military construction projects and per unit improvement and rental costs for military family housing. Title VII: Guard and Reserve Forces Facilities - Authorizes appropriations for fiscal years after FY 1985 for the costs of acquisition, architectural and engineering services, and construction of facilities for the guard and reserve forces. Title VIII: General Provisions - Prohibits the Secretary of a military department from contracting for the acquisition of any interest in land exceeding $100,000 unless the Secretary notifies the appropriate congressional committees of intent to do so and 21 days elapse after such notification. Raises from $100,000 to $400,000 the maximum interest in land a Secretary may purchase. Requires a member of the armed forces who moves out of an assigned military family housing unit to leave such unit in a satisfactorily clean condition or be liable to the United States for the cleaning costs of such unit. Expands activities and expenses to be included within authorizations for military family housing. Extends to October 1, 1986, the authority of the Secretary of a military department to enter into contracts for the leasing of military family housing where there exists a deficit in available family housing. Authorizes the Secretary concerned to enter into agreements under certain conditions with the Secretary of State whereby the Secretary of State provides housing and related services to personnel under the jurisdiction of the Secretary concerned who are assigned to duty in a foreign country. Requires notification to the Congress and a 21-day lapse period before such agreements may take effect. Changes from October 1, 1985, to October 1, 1986, the effective date for the repeal of Federal law relating to the sale and replacement of nonexcess real property and the abolition of the Department of Defense Facilities Replacement Management Account. Authorizes the Secretary of Defense to carry out sale and replacement transactions with respect to specified facilities at Schofield Barracks, Hawaii, and March Air Force Base, California. Requires the Administrator of General Services to transfer certain surplus land adjacent to Fort McNair, Washington, D.C., to the Secretary of the Army for use in connection with the National Defense University. Directs the Administrator to reacquire certain land previously conveyed to the city of Los Angeles and to transfer such land to the Secretary of the Air Force to be used for military family housing. Authorizes the Secretary of the Army to sell a tract of land within Fort Jackson, South Carolina, known as the Gregg Circle Area. Requires the buyer of such land to construct up to 400 units of family housing and lease such units to the Army or rent such units to military personnel. Requires the sale of the Gregg Circle Area tract to be carried out under public advertisement and competitive bidding, with the Secretary having full authority to determine which offer is in the best interest of the United States. Requires the Secretary, before any contract for the sale of such land is entered into, to report to the appropriate congressional committees on the procedures used in selecting a buyer and allow 21 days to elapse after such report is submitted. Authorizes the Secretary to use the proceeds from such sale for specified housing improvement facilities at Fort Jackson. Prohibits any funds appropriated under this Act from being available for any project for which all requirements under the National Environmental Policy Act of 1969 have not been completed as of March 29, 1985, with specified exceptions. Amends the Military Construction Authorization Act, 1985, to convey a portion of March Air Force Base, California, to Air Force Village West Corporation to be used as security for financing the construction of facilities on such land. Revises Federal law concerning building-height restrictions on Santa Rosa Island, Florida. Division C: Department of Energy National Security and Military Applications of Nuclear Energy Authorization - National Security Programs Authorization Act for Fiscal Year 1986 - Title I: National Security Programs Operating Expenses - Authorizes appropriations for the Department of Energy (DOE) for FY 1986 for plant and capital equipment and operating expenses in carrying out national security programs in the following areas: (1) weapons activities; (2) defense nuclear materials production; (3) defense nuclear waste and byproduct management; (4) verification and control technology; (5) nuclear materials safeguards and security technology development; (6) security investigations; and (7) naval reactors development. Title II: Recurring General Provisions - Prohibits the use of funds authorized under this Act where the costs of the program exceed 105 percent of the program authorization or the costs exceed by more than $10,000,000 the amount authorized by this Act, whichever is the lesser. Prohibits the use of funds authorized by this Act for programs which have not been presented to or requested of the Congress unless the Secretary of Energy transmits to the appropriate committees a full and complete statement of the action proposed. Authorizes the Secretary to carry out any general plant project only if the maximum estimated cost of the project does not exceed $1,200,000. Sets forth procedures for the approval of projects which exceed by more than 25 percent their estimated cost and exempts from such procedures any project which has an estimated cost of less than $5,000,000. Allows the transfer of funds from specified projects to other Government agencies for the performance of work for which the appropriation is made. Authorizes the Secretary to perform construction design services for construction projects in support of national security programs. Division D: Civil Defense - Authorizes appropriations for FY 1986 to carry out the Federal Civil Defense Act of 1950.