HARM BLOCK IV UPGRADE AND THE HARM LOW COST SEEKER

The conferees strongly support the services' requirement to upgrade the HARM missile as soon as possible to counter the increased sophistication of new target radars and new ECCM techniques not originally specified for the HARM missile. The conferees also agree that it is in the national interest to broaden the industrial base for the production of anti-radiation missile. Consequently, the conferees have agreed to guidelines for the funding of future production of anti-radiation missiles that respond to the concerns of both the House and Senate about the incorporation of alternative seekers into the HARM missile and future anti-radiation missiles.

The conferees direct that:

1. The development and integration of a Low Cost Seeker (LCS) compatible with HARM will be completed as fast as possible, for the purpose of incorporation into production HARM missiles. This direction is consistent with the written commitment made to the Congress by the Deputy Secretary of Defense on November 8, 1983 that"immediate development and application of a lower cost seeker for HARM" was required and that DoD would "ensure a rapid and efficient technology transfer to the contractors who will compete for production."

2. Beginning with missiles funded in fiscal year 1989, the LCS shall be phased into production. Not less than 800 HARM production missiles in the first year of LCS production shall incorporate LSC, and not less than 1,200 HARM production missiles in the second and subsequent years shall incorporate LCS, procured from the present LSC contractors.

3. Program management for LCS shall be transferred immediately to the Naval Air Systems Command, and technical management of LCS will be retained by the Naval Weapons Center, China Lake, California.

4. The proposed Block IV seeker design (or any derivative thereof) may be produced beginning in fiscal year 1990, provided that the Secretary of Defense certifies not later than December 15, 1986 that implementation of a Block IV program will be done at no cost to the government, and provided that the contractor agrees to transfer design data to the government for the purpose of establishing a second production source, should such establishment be desired by the Depart

ment.

5. The Department of Defense shall include in its fiscal year 1988 budget sufficient procurement for production start-up and long-lead items necessary for initial production of LCS/HARM in fiscal year 1989. The Navy and Air Force shall identify as

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separate items the procurement funding for both the HARM Block IV and the LCS seekers for HARM in its budget documentation to Congress, beginnning in fiscal year 1988.

6. The Low Cost Seeker development program shall form the basis for an advanced ARM development/production program with the same contractors who are presently developing the HARM Low Cost Seeker. The advanced ARM program shall be pursued as a joint Navy and Air Force program, with the Navy as Executive Agent. The new development shall be managed and controlled by the Naval Weapons Center, China Lake, California, to include the letting of contracts for work controlled and directed by that Center, in the same manner as was the case for the LCS development program. The Secretary of Defense shall ensure that adequate fuding if provided by the Navy and Air Force to support this development.

AIM-9 SIDEWINDER MISSILE

The conferees agree to provide $35,800,000 rather than the $46,277,000 proposed by the House and $30,677,000 by the Senate. The combined Navy and Air Force allowances reduce the fiscal year 1987 program to a level that will support one rather than two contractors. The conferees note that Department's future procurement plans will support only one producer. The conferees expect that the Department will competitively award a 5 year multiyear contract starting in 1987. The purpose of this multiyear contract is to insure the existence of a warm production base until a follow-on missile, or a product improvement to the current AIM-9 missile, are ready for production.

PHOENIX

PHOENIX ADVANCE PROCUREMENT

The conferees agree to provide $267,272,000 for Phoenix procurement as proposed by the Senate and $20,000,000 for Phoenix advance procurement. Furthermore, the conferees agree to the establishment of a second competitive source of production for the Phoenix and hereby approve the Department's reprograming request fiscal year 85-65PA which will provide $85,000,000 for non-recurring costs to establish the second source. These reprogrammed funds plus the $130,000,000 provided this year provide all of the up front costs.

MK-48 ADCAP TORPEDO

The conferees agree to provide $254,770,000 for the MK-48 ADCAP torpedo program. In fiscal year 1986, Congress provided $417,437,000 to procure 123 MK-48 ADCAP torpedos. The conferees are pleased to see that the current prime contractor is continuing its efforts to reduce the MK-48 ADCAP costs which resulted in the submission of favorable not-to-exceed estimates. The conferees believe that cost reduction efforts should be continued and direct the Navy not to limit the quantity of MK-48 ADCAP torpedoes to be procured to 123 units, and purchase as many torpedoes as possible within the funds provided to date. Since only 123 torpedoes were

authorized, the Navy should also seek approval for this increase from the Committees on Armed Services.

MK-50, ADVANCED LIGHTWEIGHT TORPEDO

The conferees agree to provide $68,137,000 for the MK-50 advanced lightweight torpedo as proposed by the Senate of which $19,387,000 is to be used for second source qualification as proposed by the House.

MK-46 LIGHTWEIGHT TORPEDO

The conferees agree to provide a total of $180,036,000 the fully requested amount for the MK-46 torpedo program, MK-46 modifications, and MK-46 advance procurement. This sum is over the amount recommended by either Chamber and is being provided even though the multiyear contract was recently negotiated substantially below the budget request. These savings along with the substantial savings from the first MK-46 multiyear procurement had been proposed for transfer or recission. The conferees direct the Navy to use these funds to buy out one year early the multiyear contract in fiscal year 1987. The conferees direct that the Navy proceed expeditiously in this regard and if additional funds are required to execute the conferees direction, the Navy is encouraged to submit a reprogramming action.

VERTICAL LAUNCHED ASROC

The conferees agree to provide $74,289,000 for the Vertical Launch ASROC (VLA) program.

Because of continued technical problems and testing delays, the conferees agree that none of the funds are to be obligated for the procurement of law rate initial production of 200 rockets pending successful completion of field tests for CTV-3A, CTV-4, and FTR-1 through FTR-X. This prohibition is not intended to affect the second source funds. The conferees also direct that a report of the flight test results be provided both the House and Senate Appropriations Committees prior to contract award for procurement of 200 low rate initial production rockets. If the testing schedule continues to slip, the Navy, with the approval of both House and Senate Appropriations Committees, should proceed with procuring essential long lead material and equipment. The conferees believe that the funds should be allocated as follows: $9,000,000 for VLA advance procurement, and $9,800,000 for those items that would reduce risk and expedite procurement of VLA missiles such as rocket motor transition to industry, acceptance gauges and fleet introduction and production planning and support.

SUBMARINE LAUNCHED MOBILE MINE

Last year, the conferees stated that they would entertain a reprogramming request for the MK-67 submarine launched mobile mine to maintain program continuity. The conferees agree that the Navy should consider reprogramming funds to cover the fiscal year 1986 contract option if program continuity is desired.

SHIPBUILDING AND CONVERSION, NAVY

The conferees agree to the following amounts for Shipbuilding
and Conversion, Navy:

The conferees agree to support efforts by the Navy to compete sole source shipbuilding programs when it is clear that competition will benefit the government.

SSN-21

The conferees agree to provide $375,000,000 for the advance procurement of SSN-21 nuclear components and detail design instead of $187,800,000 as proposed by the House and $266,500,000 as proposed by the Senate.

DDG-51 DESTROYER

The conferees agree to provide $1,670,300,000 to procure two DDG-51 destroyers provided that one ship is awarded to a second source shipbuilder.

MSH MINE SWEEPER/HUNTER

The conferees agree to the Senate language which stipulates that of the funds remaining available for the MSH program, $5,000,000 shall be used to continue work studying the surface effect hull form technology including the related shock attenuation benefits in conjunction with the first MSH ship construction efforts.

MHC COASTAL MINE HUNTER

On September 29, 1986, the Department of the Navy submitted a report, to the House Appropriations Committee, on the costs and risks of alternative acquisition approaches for the MHC program. The report outlines the Navy's plans to proceed with the following approach: Complete the contract design currently ongoing with Intermarine, and the first ship is constructed by a U.S. division of Intermarine in consortium with a U.S. builder. The remaining ships would be constructed by Intermarine U.S. and one other U.S. shipbuilder.

The conferees agree that the Navy should continue pursuing this course of action with fiscal year 1986 MSH funds provided that all