Mr. REED - Madam President, I rise to discuss the National Defense 
Authorization Act. After several months of debate and negotiation, the 
House and Senate Armed Services Committees have arrived at a completed 
conference agreement. This will be the 55th consecutive time that we 
pass a National Defense Authorization Act, which sets national security 
policy and provides important authorities to the Department of Defense.
I want to begin by thanking Chairman McCain for his leadership during 
the course of this year. At his direction, the Senate Armed Services 
Committee undertook a robust review of how the Department develops 
strategic guidance and executes their business processes to help the 
Department operate more effectively and efficiently. I commend the 
chairman for making this effort a priority for the committee, and I 
appreciate his willingness to work in a bipartisan fashion on this 
important endeavor.

The conference report we are considering today includes many Senate 
reforms, including efforts to improve the defense strategy documents 
produced by the Department and reorganizing the Office of Acquisition, 
Technology and Logistics to ensure that the Pentagon emphasizes 
research and innovation in support of our warfighters.

In particular, one of the most important reform efforts included in 
the final conference agreement is a Senate provision that would create 
cross-functional teams. This is a new tool for the Secretary of Defense 
to manage the formation and implementation of policies and solutions 
for complex problems that inherently cut across the many stovepiped 
functional organizations in the Department of Defense. The private 
sector has pioneered and mastered this highly effective integration 
mechanism for a generation, and business schools and business 
consultancies have championed its use for decades. I consider this 
provision to be one of the most important reform initiatives in this 
bill. None of this would have happened without the leadership, 
guidance, and constant urging of the chairman, Senator McCain. Once 
again, I commend him for his extraordinary efforts.

As these reforms are introduced, it is imperative that we continue to 
collaborate with the Department of Defense to ensure that these reforms 
contribute to our national security and do not create unnecessary and 
detrimental consequences. This will be a partnership going forward to 
ensure that these reforms are adequate, appropriate, and work for the 
benefit of the men and women in uniform, and that is a process in which 
we will all be engaged.

With respect to the budget, the conference agreement we are 
considering today authorizes a total of $619 billion, which includes 
$543.4 billion in base budget funding for the Department of Defense and 
certain security activities of the Department of Energy and $67.8 
billion in overseas contingency operations, or OCO, funding.
This OCO amount includes $5.8 billion in supplemental funding 
requested by President Obama for operations in Afghanistan, Iraq, and 
Syria, as well as an additional $3.2 billion above President Obama's 
budget request for base budget requirements primarily devoted to 
increased end strength. I have serious concerns about increasing OCO 
funding above the President's budget request without a corresponding 
increase in domestic spending. While the OCO account is exempt from 
budget caps, the purpose of the Budget Control Act was to establish 
proportionately equal caps on defense and nondefense discretionary 
spending to force a bipartisan compromise on the budget.

During consideration of the NDAA, the House and Senate had different 
approaches on how best to fund these base budget requirements and 
ongoing military operations. However, after a robust debate, we reached 
an agreement on a modest increase in OCO to fund increased end strength 
and to replenish depleted munitions inventories.

With respect to Afghanistan, the conference agreement supports our 
military operations. Specifically, the bill authorizes approximately 
8,400 troops in Afghanistan in 2017, including fully funding the Afghan 
Security Forces Fund at $4.26 billion to continue support to the Afghan 
National Defense and Security Forces. Likewise, the bill contains $814 
million to enhance the capabilities of the Afghan Air Force and begin a 
transition from Mi-17 to the UH-60 helicopters.

Also--and this is an issue that I support very strongly after a 
recent trip to Afghanistan--it accelerates the Afghan Aviation 
Initiative, which is designed to build greater rotary wing capability 
and fixed-wing capabilities in the Afghan Air Force. This is a critical 
battlefield advantage that the Afghan forces will have over the 
Taliban.

With respect to Europe, we have fully funded the President's request 
of $3.4 billion for the European Reassurance Initiative. This funding 
will support critical investments that will increase rotational U.S. 
military presence in Europe, improve key infrastructure, and enhance 
allied and partner military capabilities to respond to external 
aggression and preserve regional stability. The agreement also includes 
an authorization of $350 million for the Ukraine training assistance 
initiative, to continue and expand security assistance and intelligence 
support to the Ukrainian security forces to protect their sovereignty 
and encourage a continued focus on robust defense reform efforts.

With regard to our special operations forces, they are at the 
forefront of our fight against ISIL, Al Qaeda, and other terrorist 
groups. The bill also includes important reforms designed to improve 
the oversight and advocacy for their important efforts by enhancing the 
role of the Assistant Secretary of Defense for Special Operations and 
Low Intensity Conflict. I think those reforms will be something we 
watch and encourage.

With respect to other aspects of our security programs, the 
conference agreement includes a comprehensive reform of Defense 
Department security cooperation programs. This is the first time such a 
reform has been undertaken, and it is an effort to ensure there is 
unity of effort across our government in the security assistance arena.
Likewise, the conference agreement includes a provision that would 
enhance the scope and authority of the Global Engagement Center. For 
too long we have been losing the information space to our adversaries--
both state and nonstate actors. It is my hope that by providing this 
critical center at the State Department with a powerful mandate, we can 
begin to improve our efforts in the information space.

The bill also supports modernization efforts of many different 
weapons platforms. I am particularly pleased to see that we are 
continuing two-per-year construction of the Virginia-class submarine. 
It also supports additional requests for advance procurement to keep 
this production on track. Furthermore, it authorizes $1.9 billion for 
the Ohio-class replacement, including the first strategic nuclear 
submarine procurement funds, to begin the process of reinvigorating and 
rebuilding our underwater nuclear deterrence through the Ohio-class 
replacement.

In addition to modernization of our underwater forces, we are also 
looking at modernizing our triad of air, sea, and ground delivery 
platforms for strategic deterrence. This is the beginning of a multi-
decade effort involving three major acquisition programs: our ballistic 
missile submarines--as I have mentioned, the Ohio-class replacement--
long-range penetrating bombers, and also the land-based 
intercontinental ballistic missiles. Most importantly, we will be 
modernizing their command and control systems to ensure that our 
President always has positive control of these forces. As I have stated 
many times, modernization is critical in light of the increasingly 
belligerent actions by Russia, which conducted a nuclear exercise 
immediately after invading Crimea as a form of nuclear intimidation.
In the area of technology and acquisition, I am pleased the 
conference report takes a number of important steps to help DOD 
maintain its technological superiority. We continue to build on past 
work on acquisition reform undertaken by the committee, as well as the 
successes of Defense Secretary Carter and his colleagues, including 
Under Secretary Kendall, in controlling the costs of major weapons 
systems procurement programs.

The agreement includes a number of steps to improve defense 
acquisition processes, including strengthening the acquisition 
workforce, simplifying and streamlining regulatory and bureaucratic 
burdens on the government and industry, making it easier for DOD to 
work with innovative small businesses and commercial companies, and 
promoting the use of prototyping and rapid fielding to speed the 
development and deployment of advanced new systems.
In the area of technological innovation, I hope that reconstituting 
the position of Under Secretary of Research and Engineering will help 
promote connections with innovators both inside and outside of the 
government and ensure that the policies and practices governing our R&D 
programs, our defense labs, and our engagements with universities and 
industry are optimized to promote the most efficient and effective 
development of new systems and technologies.

Finally, I think the conference report includes important provisions 
designed to streamline and modernize Pentagon management processes. The 
bill supports efforts to develop and execute the modern management 
techniques and practices modeled on private sector best practices, 
including the use of big data to improve Pentagon business processes. I 
believe that refining Pentagon management practices will result in cost 
savings and efficiencies, freeing up funds for other critical needs.
I note that the conferees did not include several provisions 
regarding the application of Obama administration Executive orders 
related to labor, safe workplace, and LGBT issues. Many of these are 
very problematic. I hope we continue to work to ensure the Department 
engages with fiscally and socially responsible and effective 
contractors to the best benefit of warfighters and taxpayers alike.
Of course, one of the key issues for the committee was the readiness 
of troops. I am pleased the conference report includes significant 
resources for the military services' unfunded requirements, with the 
goal of restoring full-spectrum readiness as soon as possible. For 
example, the bill includes additional funding for Army units to conduct 
additional home station training in order to prepare them for future 
combat training center rotations, as well as additional flight training 
for the other services.

We have also included significant resources in order to provide 
additional depot maintenance to repair our military aircraft, ships, 
and combat vehicles. There is also additional funding to better sustain 
our military installations, specifically in the facilities restoration 
and modernization accounts.

In the area of military personnel, the conference agreement 
accomplishes much on behalf of our servicemembers and the Department of 
Defense because we owe them much. It authorizes a 2.1 percent pay raise 
for all servicemembers, supports requested increases in the housing 
benefit, and reauthorizes a number of expiring bonus and special pay 
authorities to encourage enlistment, reenlistment, and continued 
service by Active-Duty and Reserve component military personnel.

Unfortunately, the bill does not include the provision in the Senate-
passed bill that would have required women to register for the draft to 
the same extent men are required. I continue to believe this is the 
right policy for the Nation and the military. If we are going to have a 
draft, women must share equally the burden and privilege of service. We 
must be able to take advantage of their extraordinary talents because 
without those talents our military today could not function as it does.
However, the bill does establish an independent national commission 
on military, national, and public service to study the need for a 
military selective service process, including whether the Nation 
continues to need a mechanism designed to draft large numbers of 
replacement combat troops; whether women should be required to 
participate equally in the process; the means by which to foster a greater attitude and ethos of service among the United States' young men and women, including an increased propensity for military service; and how to obtain military, national, and public service individuals with skills for which the Nation has a critical need. This commission could provide valuable insight on how we should proceed, particularly in a state of national emergency, in pulling together the best of our young people to serve the Nation.

With respect to health care, the bill contains a robust package of 
health care reforms that will bring the military health care program in 
line with the best practices in the civilian health care industry. This 
is something we have to continue to emphasize--the ability to care and 
treat all of our personnel and retirees with respect to their health 
care.

I think we have done a lot of important work in this legislation.
Let me conclude, as I began, by thanking Chairman McCain and my 
Senate colleagues on the committee for their thoughtful contributions 
to this process. I also thank my colleagues on the House Armed Services 
Committee, Chairman Mac Thornberry and Ranking Member Adam Smith. They 
did a superb job, along with their staffs. This was truly a thoughtful, 
bipartisan process that resulted in a bill that I believe will receive 
overwhelming support on the floor of the Senate, as it did in the 
House.

Finally, of course, this agreement would not have been possible 
without the extraordinary work of the staff. I thank so many, but I 
particularly thank Chris Brose, Steve Barney, and all the majority 
committee staff for their hard work. On the Democratic side, I thank my staff director, Elizabeth King. I 
also thank Gary Leeling, Creighton Greene, Carolyn Chuhta, Maggie 
McNamara, Jonathan Clark, Jonathan Epstein, Ozge Guzelsu, Jody Bennett, 
Mike Kuiken, Kirk McConnell, Mike Noblet, John Quirk, Arun Seraphin, 
and Jon Green.

I deeply appreciate all of their efforts. They have made this bill 
possible. With that, I yield the floor.