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The Committee is concerned about the large cost increases associated with the 210-foot cutter MMA project. The total estimated cost of this program has increased by 44 percent over 2 years. Testimony indicates that cost escalation is especially pronounced at one of the two shipyards performing this work. The MMA cost of the first vessel was $28,600,000 at this shipyard versus $18,000,000 at the other shipyard. This could result in excess costs of $90,000,000 to $100,000,000 if all nine of the remaining "B" class cutters are rehabilitated at this facility. The Committee understands that the Department has reviewed its operations under its MMA contract and plans to move the project to the Coast Guard yard. The Committee supports this decision. The Coast Guard should ensure that future contracts of this type are reviewed similarly.

Aircraft.-The Committee recommends an appropriation of $217,100,000 which is to be distributed as follows:

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Command, control, and communications.-The Committee recommends $15,900,000. The following table displays the project allocation:

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At least one additional sarsat LUT will be provided for Hawaii. Shore facilities and aids to navigation.-The program level recommended is $68,600,000, and includes the following projects:

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The Committee understands that $4,500,000 is included in the allowance for aids to navigation work in the Chesapeake Bay and Rappahannock Channel, MD, waterway projects.

The Committee expects that in fiscal year 1990, from within available funds, the Coast Guard will complete design and other predevelopment work on a new shore facility on Lake Champlain in Burlington, VT.

The Committee is pleased to learn that the construction schedule for the Coast Guard Operations Computer Center to be located in

Martinsburg, WV, is now progressing well despite earlier delays which were necessary to incorporate local real estate market conditions and for additional time to review the solicitation for offers. The Committee fully expects the Coast Guard to work closely with the General Services Administration to comply with the following revised construction schedule which calls for contract negotiations to be completed by the fall of 1989 and delivery of the project by the fall of 1990.

U.S. Coast Guard facility acquisition schedule, Martinsburg, WV

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Administration.-The Committee allowance is $20,900,000. Included in the allowance is a reduction of $1,800,000, which maintains survey and design expenses at the fiscal year 1989 level, and an offset of $8,400,000, to be derived from prior year AC&I savings. The Committee has agreed to House proposed earmarking of the "Acquisition, construction, and improvements" account funding into 5 subcategories, and has added bill language to permit reprogramming between these subcategories through the normal reprogramming procedures.

CONTRACTOR WARRANTIES

The Committee concurs with the House in continuing bill language requiring written warranties on all major system acquisitions by the Coast Guard. The Committee also agrees with the House report language specifying the minimum terms and conditions that such warranties should include.

COAST GUARD SHORE FACILITIES ACCOUNT

The Committee has also included bill language concerning the merger of funds remaining in the "Coast Guard shore facilities" account with funds in the "Acquisition, construction, and improvements" account.

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The "Alteration of bridges" appropriation provides funds for the Coast Guard's share of the cost of altering or removing bridges obstructive to navigation. Under the provisions of the Truman-Hobbs Act of June 21, 1940, as amended (33 U.S.C. 511 et seq.), the Coast Guard, as the Federal Government's agent, is required to share

with owners the cost of altering railroad and publicly owned highway bridges which obstruct the free movement of navigation on navigable waters of the United States in accordance with the formula established in 33 U.S.C. 516.

The Committee recommends an appropriation of $2,330,000 in fiscal 1990, the same as the budget and the House.

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The "Retired pay" appropriation provides for retired pay of military personnel of the Coast Guard and Coast Guard Reserve, members of the former Lighthouse Service, and for annuities payable to beneficiaries of retired military personnel under the retired serviceman's family protection plan (10 U.S.C. 1431-1446) and survivor benefit plan (10 U.S.C. 1447-1455), and for medical care of retired personnel and their dependents under the Dependents Medical Care Act. The average number of personnel on the retired rolls is estimated to be 25,606 in fiscal year 1990, as compared with an estimated 25,130 in fiscal year 1989 and 24,528 in fiscal year 1988. The bill includes $420,800,000 for retired pay, which is the same as the House allowance and the budget request.

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The Coast Guard Reserve was established by Act of Congress in February 1941, to provide qualified individuals and trained units for active duty in time of war or national emergency. This objective is now being accomplished through formal training and augmentation of regular forces in the performance of peacetime missions during domestic emergencies and during routine and peak operations. The program activities fall into the following categories. Initial training. For non-prior-service trainees.

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Continuing training.-For officer and enlisted personnel through the performance of drills and annual active duty training.

Operation and maintenance of training facilities.-For the day-today operation and maintenance of Reserve training facilities, including organized Reserve training units.

Administration.-For all administrative functions required in the operation of the Reserve Forces Program.

The bill includes $73,800,000 for Reserve training, the same as the budget request. It is $2,000,000 above the House allowance and $6,800,000 above 1989 appropriations to date.

Consistent with the Coast Guard budget justification, the Committee allowance provides for Selected Reserve strengths of 12,950 in 1990, compared to a 1989 reserve strength of 12,100.

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The Coast Guard's Research and Development Program seeks to improve the tools and techniques with which Coast Guard carries out its varied operational missions and to increase the knowledge base upon which it depends to fulfill its regulatory responsibilities.

The bill includes $22,800,000 for research, development, test, and evaluation, which is $3,800,000 more than the budget request and $4,000,000 more than the House allowance.

The Committee recommendation for funding distribution is as follows:

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The amount provided for administration will support the requested complement of military and civilian positions.

Recent experience attempting to clean up Alaska crude oil indicates that oil and hazardous material cleanup capabilities are rudimentary and need to be upgraded. The Committee, therefore, urges the Coast Guard to accelerate its applied research activities in the marine environmental protection area, and to provide the Committee with a proposed research plan within 90 days of enactment.

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