[excerpts on intelligence policy]

111th Congress                                                   Report
 1st Session             HOUSE OF REPRESENTATIVES               111-230

                         DEPARTMENT OF DEFENSE

                       APPROPRIATIONS BILL, 2010


                              R E P O R T

                                 of the


                        [to accompany H.R. 3326]

 July 24, 2009.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                         INFORMATION OPERATIONS

    The budget request includes nearly one billion dollars for 
Department of Defense information operations (IO) programs. The 
Committee has serious concerns about not only the significant 
amount of funding being spent on these programs, but more 
importantly, about the Department's assumption of this mission 
area within its roles and responsibilities. Much of the content 
of what is being produced, and certainly some of the largest 
cost drivers in these programs, is focused so far beyond a 
traditional military information operation that the term non-
traditional military information operation does not justly 
apply. At face value, much of what is being produced appears to 
be United States Military, and more alarmingly non-military 
propaganda, public relations, and behavioral modification 
messaging. The Committee questions the effectiveness of much of 
the material being produced with this funding, the supposed 
efforts to minimize target audience knowledge of United States' 
Government sponsorship of certain production materials, and the 
ability of the Department to evaluate the impact of these 
    The Committee also notes that the official budget 
justification materials for requested funding of this magnitude 
are woefully inadequate. In addition, the Department's response 
to attempts by the Committee to obtain a meaningful explanation 
of funding for these programs clearly indicates that 
Departmental oversight of these efforts is disorganized, and 
that a thorough understanding of their scope within the 
Department's leadership is incomplete. According to the 
Department's limited response for information on this funding, 
IO programs have grown at an enormous rate, from approximately 
$9,000,000 in fiscal year 2005, to a staggering $988,000,000 
request for fiscal year 2010. The requested growth in these 
programs from fiscal year 2009 to fiscal year 2010 alone is 
just over $200,000,000.
    The Committee believes that the Department of Defense, and 
the Combatant Commands which drive the demand for information 
operations, need to reevaluate IO requirements in the context 
of the roles and missions of the United States Military along 
with consideration for the inherent capabilities of the 
military and the funding available to meet these requirements. 
In support of this evaluation, the Committee has determined 
that many of the ongoing IO activities for which fiscal year 
2010 funding is requested should be terminated immediately. The 
programs for which funding is specifically denied are 
identified in the classified annex to this report. Accordingly, 
the Committee has reduced requested funding for information 
operation programs in the various Service appropriations 
accounts in which they have been requested by a total of 
$500,000,000. Of the remaining funds provided for information 
operations, the Committee directs that no funds shall be 
obligated or expended until 30 days after the Secretary of 
Defense submits a report to the Committees on Appropriations of 
the House of Representatives and the Senate on the Department's 
IO programs. This report should encompass the period from 
fiscal years 2005 through 2010 and include all Department of 
Defense information operation programs for which base budget, 
supplemental, or overseas contingency operation funds have been 
appropriated or requested. The report shall include: program 
strategies, target audiences, goals, and measures of 
effectiveness; budget exhibits at the appropriations account 
and sub-activity level; spend plans (including positions and 
other direct costs); and production and dissemination 
mechanisms and locations. The report shall also include an 
annex for the inclusion of necessary explanatory and supporting 
classified information. The Secretary shall submit this report 
in writing not later than 180 days after enactment of this Act.



    The Committee is concerned about the urgent need for the 
modernization of Special Operations Forces' (SOF) capabilities 
to process, exploit, and disseminate critical operational 
intelligence from deployed locations overseas and specifically 
within the theater of operations. The immediacy of this 
requirement was communicated to the Committee by SOF operators 
during multiple visits to both Afghanistan and Iraq. Ongoing 
SOF operations demonstrate the ability to collect significant 
amounts of pocket litter, hard copy documents, hard drives, 
cell phones, and other important hard copy and electronic media 
with significant intelligence value. However, without 
specialized expeditionary processing, this information becomes 
inaccessible and of no value to SOF in immediate urgent 
operational missions, and over the longer term to the war 
fighter, the intelligence community and others in need of 
access. To address this requirement, the Committee has provided 
an additional $14,900,000 in funding for acquisition and 
development of improved processing, exploitation, and 
dissemination capabilities--$6,900,000 in ``Procurement, 
Defense-Wide'', and $8,000,000 in ``Research, Development, Test 
and Evaluation, Defense-Wide''.
    Procurement funding is provided for acquisition of multi-
discipline intelligence processing, exploitation and 
dissemination capabilities intended to meet Special Operations 
Command's unfunded requirement for full motion video 
exploitation. The funding will enable SOF to rapidly search and 
exploit accumulated tactical intelligence in support of 
operational decision-making and planning.
    Funding provided for Distributed Common Ground/Surface 
System (DCGS) capabilities modernization in the DCGS research, 
development, test and evaluation program shall be used to 
address requirements for integrating multi-function 
intelligence processing, exploitation and dissemination 
capabilities into the SOF information enterprise and the DCGS 
architecture. This funding is also provided to develop a DCGS 
tool for SOF to expand the capability to exploit documents and 
media for tactical and timely intelligence in forward deployed 
operations. The Committee believes that allowing larger volumes 
of data to be captured and processed more quickly while in the 
field will enable vastly improved support to not just SOF but 
all deployed war fighter operations.



    The Committee is concerned that there is no clear path for 
space system investment. The Committee strongly believes that 
an annual long-range plan for space system investment will 
provide a necessary roadmap for future government and 
industrial base investments. The Committee envisions this long-
range plan be structured like the Annual Long-Range Plan for 
Construction of Naval Vessels. Similarly, this plan should 
contain information on the research, development, test and 
evaluation, as well as, the procurement, including schedule and 
funding profiles, for all Department of Defense and 
Intelligence Community National Security Space Systems, 
including ground systems for the next 30 years.
    The Committee also expects the plan to include individual 
acquisition plans that provide descriptions of the programs and 
how these systems will meet the national security needs 
described in the most recent Quadrennial Defense Review and 
Space Posture Review. The report should also include the 
estimated levels of annual funding necessary to carry out the 
programs as well as a discussion of the acquisition strategies 
on which such estimated levels of annual funding are based to 
include both military and national intelligence funding.
    Because the long-range space investment strategy is 
dependent on the state of the space industrial base, the 
Committee recommends the Department of Defense Cost Assessment 
and Program Evaluation (CAPE) office continue with the current 
studies and projects on the Space Industrial Base and begin 
other industrial base analysis efforts such as shipbuilding.
    The Committee directs the Secretary of the Air Force and 
the Director of the National Reconnaissance Office, in 
coordination with the Secretary of Defense and the Director of 
National Intelligence, to deliver the 30-year Space System 
Investment Strategy to the congressional defense and 
intelligence committees by March 1, 2010. As necessary, the 
report should contain a classified appendix.
    Finally, the Committee also recognizes that good planning 
requires good budgeting and oversight mechanisms. For the past 
two years, the Committee has directed the Secretary of Defense 
to create a major force program category for space. The 
Committee expects that the space major force program will be 
implemented by the submission of the fiscal year 2011 budget.



    The Secretary of Defense shall provide a report to the 
congressional defense committees on memos, letters, and After 
Action Field Reports supporting the use of security level 
technologies designed for truth verification and detection of 
deceit through voice analysis. The report shall be submitted 
not later than 90 days after enactment of this Act.


                         SEA-BASED X-BAND RADAR

    The mission of the Sensors Program is to efficiently 
develop, acquire, test, field and operate an integrated sensor 
enterprise. However, the Committee is concerned that there are 
large unobligated and unexpended balances after fiscal year 
2009, the first year of execution for the program element. The 
Committee is also concerned that GTD-04 has already slipped to 
the first quarter of fiscal year 2011. Therefore, the Committee 
has reduced the Sea-Based X-Band Radar request by $13,000,000.


                               TITLE VII

                            RELATED AGENCIES


    The National Intelligence Program and the Military 
Intelligence Program budgets funded in the Department of 
Defense Appropriations Act consist primarily of resources for 
the Director of National Intelligence including the 
Intelligence Community Management staff, the Central 
Intelligence Agency (CIA), the Defense Intelligence Agency, the 
National Reconnaissance Office, the National Security Agency, 
the National Geospatial-Intelligence Agency, the intelligence 
services of the Departments of the Army, Navy, Air Force, and 
Marine Corps and the CIA Retirement and Disability fund.

                            CLASSIFIED ANNEX

    The Committee's budget reviews are published in a separate 
detailed and comprehensive classified annex. The intelligence 
community, Department of Defense and other organizations are 
expected to fully comply with the recommendations and 
directions in the classified annex accompanying the Department 
of Defense Appropriations Act, 2010. As directed by House 
Resolution 35, the recommendations of the Select Intelligence 
Oversight Panel are incorporated as recommendations to the 
House Appropriations Committee, Subcommittee on Defense, in the 
accompanying classified annex.


Fiscal year 2009 appropriation........................      $279,200,000
Fiscal year 2010 budget request.......................       290,900,000
Committee recommendation..............................       290,900,000
Change from request...................................  ................

    This appropriation provides payments of benefits to 
qualified beneficiaries in accordance with the Central 
Intelligence Agency Retirement Act of 1964 for Certain 
Employees (P.L. 88-643), as amended by Public Law 94-522. This 
statute authorized the establishment of the CIA Retirement and 
Disability System (CIARDS) for certain employees and authorized 
the establishment and maintenance of a fund from which benefits 
would be paid to those beneficiaries.
    The Committee recommends the budget request of $290,900,000 
for the Central Intelligence Agency Retirement and Disability 
System fund. This is a mandatory account.


Fiscal year 2009 appropriation........................      $710,042,000
Fiscal year 2010 budget request.......................       672,812,000
Committee recommendation..............................       611,002,000
Change from request...................................       -61,810,000

    The Committee recommends an appropriation of $611,002,000 
for the Intelligence Community Management Account, a decrease 
of $61,810,000 below the budget request. Of the amount 
appropriated under this heading, $24,000,000 may be transferred 
to the Executive Office of the President for the Program 
Manager for Information Sharing. The total program recommended 
in the bill will provide the following in fiscal year 2010:

                                    EXPLANATION OF PROJECT LEVEL ADJUSTMENTS
                                            [in thousands of dollars]
                                                                                     Committee      Change from
                                                                  Budget request    recommended       request
Intelligence Community Management Account.......................         672,812         611,002         -61,810
    Classified Adjustment.......................................  ..............         -64,810
    Language Mentorship Program incorporating an electronic       ..............           1,000
    Counter-Threat Finance--Global..............................  ..............           2,000
        Total, ICMA.............................................         672,812         611,002         -61,810


    The Committee appreciates the progress the Business 
Transformation Office (BTO) has made in the last year to the 
Intelligence Community's business systems and looks forward to 
continued progress to address these issues. The Committee has 
included a funding transfer of the Financial Improvement Group 
to the BTO and the Committee supports the efforts made by BTO 
in creating the May 2009 BTO strategy. The Committee is 
concerned that recent changes to place the BTO under the Chief 
Information Office may not result in the necessary level of 
emphasis and attention to these issues by senior management 
within the Office of the Director of National Intelligence and 
within the Intelligence Community. The Committee requests that 
the Director of National Intelligence review this recent change 
and take the necessary steps to ensure that BTO initiatives are 
successfully implemented. The Director of National Intelligence 
is directed to report to the Committee on the actions taken to 
ensure that these concerns are addressed.
    The Committee remains concerned that the Office of the 
Director of National Intelligence, the National Geospatial-
Intelligence Agency, the Central Intelligence Agency, the 
National Security Agency, the Defense Intelligence Agency, and 
the National Reconnaissance Office cannot receive unqualified 
or ``clean'' financial audit opinions. This reality is even 
more concerning considering the Intelligence Community spends 
over a quarter billion dollars annually on ``financial 
management,'' which does not include other business systems and 
processes like procurement, human resources, or logistics. 
Therefore, within 90 days of enactment of this Act, the 
Committee directs the Director of National Intelligence to 
submit a report that: 1) addresses the acquisition challenges 
facing the Business Transformation Office; 2) explains where 
the most efficient and secure place to store the Community's 
business data will be for the foreseeable future; and 3) review 
the process for hiring highly qualified experts and provide 
recommendations that streamline the current bureaucratic 
process to one that allows the Director of the Business 
Transformation Office to efficiently build an effective staff. 
Finally, the report should provide a target date when all 
National Intelligence Program funds will achieve a sustainable 
unqualified audit opinion.



    The Committee continues to be concerned with the lack of a 
strategic plan when it comes to the Intelligence Community's 
professional education curriculum and supporting training 
programs. The current patchwork of academies, courses, language 
training efforts and schools is the result of multiple programs 
and initiatives instead of a coherent strategy. The Director of 
National Intelligence needs to benchmark successful programs 
like the Department of Defense's National Defense University 
and develop an appropriate educational and professional 
development strategy for the Intelligence Community that 
creates an innovative and competitive 21st century professional 
intelligence workforce. The Committee would like to see steps 
taken to establish the Intelligence Community's cap-stone 
school in a manner that takes best advantage of opportunities 
for learning synergies and a transformative learning 
environment with other national security students. Also, the 
Committee directs that steps be taken to evolve the National 
Defense Intelligence College to a fee-for-service program so 
that both Congress and the executive branch can be assured that 
there is still a true demand for the product being provided.


                       HUMAN LANGUAGE TECHNOLOGY

    The Committee directs the Director of National Intelligence 
to submit to the congressional intelligence committees within 
120 days of enactment of this Act, a report on the status of 
Human Language Technology (HLT) within the Intelligence 
Community. The report shall identify an intelligence community 
executive agent responsible for the coordination of research, 
development, and implementation of HLT initiatives, identify 
current HLT capabilities and their return on investment, 
project future HLT requirements, and describe efforts to 
implement community licensing.