24 May 1999


[DOCID: f:s1059pcs.txt]

                                                       Calendar No. 114

106th CONGRESS

  1st Session

                                S. 1059

                          [Report No. 106-50]
_______________________________________________________________________

                                 A BILL

     To authorize appropriations for fiscal year 2000 for military 
activities of the Department of Defense, for military construction, and 
   for defense activities of the Department of Energy, to prescribe 
personnel strengths for such fiscal year for the Armed Forces, and for 
                            other purposes.

_______________________________________________________________________

                 May 17 (legislative day, May 14), 1999

[Excerpt]

SEC. 346. USE OF SMART CARD TECHNOLOGY IN THE DEPARTMENT OF DEFENSE.

    (a) Leadership, Planning, and Execution of Smart Card Program.--(1) 
Not later than October 1, 1999, the Secretary of Defense shall 
designate the Department of the Navy to be the lead agency for the 
development and implementation of a Smart Card program for the 
Department of Defense effective as of the date of the designation.
    (2) The Secretary of Defense shall direct the Secretary of the Army 
and the Secretary of the Air Force to establish Smart Card project 
offices for the Department of the Army and the Department of the Air 
Force, respectively, not later than November 30, 1999. The designated 
offices shall coordinate closely with the lead agency to develop 
implementation plans for exploiting the capability of Smart Card 
technology as a means for enhancing readiness and improving business 
processes throughout the military departments.
    (3) Not later than November 30, 1999, the Secretary of Defense 
shall establish a senior coordinating group chaired by a representative 
of the Secretary of the Navy. The group shall include senior 
representatives from each of the Armed Forces. The senior coordinating 
group shall develop and implement Department-wide interoperability 
standards for use of Smart Card technology and a plan to exploit Smart 
Card technology as a means for enhancing readiness and improving 
business processes.
    (4) The Secretary of the Army and the Secretary of the Air Force, 
in coordination with the Secretary of the Navy, shall each develop and 
implement a program to demonstrate the benefits of Smart Card 
technology in the Army and the Air Force, respectively.
    (b) Increased Use Targeted to Certain Naval Regions.--Not later 
than November 30, 1999, the Secretary of the Navy shall establish a 
business plan to implement the use of Smart Cards in one major Naval 
region of the continental United States that is in the area of 
operations of the United States Atlantic Command and one major Naval 
region of the continental United States that is in the area of 
operations of the United States Pacific Command. The regions selected 
shall include a major fleet concentration area. The implementation of 
the use of Smart Cards in each region shall cover the Navy and Marine 
Corps bases and all non-deployed units in the region. The Secretary of 
the Navy shall submit the business plan to the congressional defense 
committees.
    (c) Funding for Increased Use of Smart Cards.--(1) Of the funds 
authorized to be appropriated for the Navy for fiscal year 2000 under 
section 102(a)(4) or 301(a)(2), the Secretary of the Navy--
            (A) shall allocate sufficient amounts, up to $30,000,000, 
        for ensuring that significant progress is made toward complete 
        implementation of the use of Smart Card technology in the 
        Department of the Navy; and
            (B) may allocate additional amounts for the conversion of 
        paper-based records to electronic media for records systems 
        that have been modified to use Smart Card technology.
    (2) Of the funds authorized to be appropriated under section 
301(a)(1), up to $5,000,000 shall be available for Army demonstration 
programs under subsection (a)(4). Of the funds authorized to be 
appropriated under section 301(a)(4), up to $5,000,000 shall be 
available for Air Force demonstration programs under subsection (a)(4).
    (d) Report.--Not later than March 31, 2000, the Secretary of 
Defense shall submit to the Committees on Armed Services of the Senate 
and the House of Representatives a report containing a detailed 
discussion of the progress made by the senior coordinating group in 
carrying out its duties under subsection (a)(3).
    (e) Definitions.--In this section:
            (1) The term ``Smart Card'' means a credit card-size 
        device, normally for carrying and use by personnel, that 
        contains one or more integrated circuits and may also employ 
        one or more of the following technologies:
                    (A) Magnetic stripe.
                    (B) Bar codes, linear or two-dimensional.
                    (C) Non-contact and radio frequency transmitters.
                    (D) Biometric information.
                    (E) Encryption and authentication.
                    (F) Photo identification.
            (2) The term ``Smart Card technology'' means a Smart Card 
        together with all of the associated information technology 
        hardware and software that comprise the system for support and 
        operation.
    (f) Repeal of Requirement for Automated Identification Technology 
Office.--Section 344(b) of the Strom Thurmond National Defense 
Authorization Act for Fiscal Year 1999 (Public Law 105-261; 112 Stat. 
1977; 10 U.S.C. 113 note) is repealed.

SEC. 347. STUDY ON USE OF SMART CARD AS PKI AUTHENTICATION DEVICE 
              CARRIER FOR THE DEPARTMENT OF DEFENSE.

    (a) Study Required.--The Secretary of Defense shall conduct a study 
to determine the potential benefits of Department of Defense use of the 
Smart Card for addressing the need of the Department of Defense for a 
Public-Private Key Infrastructure (PKI) authentication device carrier.
    (b) Report.--Not later than January 31, 2000, the Secretary shall 
submit to the Committees on Armed Services of the Senate and the House 
of Representatives a report on the results of the study. The report 
shall include the Secretary's findings and any recommendations that the 
Secretary considers appropriate regarding Department of Defense use of 
the Smart Card for addressing the need identified in subsection (a).
    (c) Definitions.--In this section:
            (1) The term ``Smart Card'' means a credit card-size 
        device, normally for carrying and use by personnel, that 
        contains one or more integrated circuits and may also employ 
        one or more of the following technologies:
                    (A) Magnetic stripe.
                    (B) Bar codes, linear or two-dimensional.
                    (C) Non-contact and radio frequency transmitters.
                    (D) Biometric information.
                    (E) Encryption and authentication.
                    (F) Photo identification.
            (2) The term ``Public-Private Key Infrastructure (PKI) 
        authentication device carrier'' means a device that physically 
        stores, carries, and employs electronic authentication or 
        encryption keys necessary to create a unique digital signature, 
        digital certificate, or other mark on an electronic document or 
        file.

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[DOCID: f:sr050.106]
From the Senate Reports Online via GPO Access
[wais.access.gpo.gov]

                                                       Calendar No. 114
_______________________________________________________________________
106th Congress                                                   Report
                                 SENATE 
1st Session                                                      106-50
_______________________________________________________________________

 
                     NATIONAL DEFENSE AUTHORIZATION
                        ACT FOR FISCAL YEAR 2000
                                 REPORT
                         [TO ACCOMPANY S. 1059]

                                   on

AUTHORIZING APPROPRIATIONS FOR FISCAL YEAR 2000 FOR MILITARY ACTIVITIES 
  OF THE DEPARTMENT OF DEFENSE, FOR MILITARY CONSTRUCTION, AND FOR 
  DEFENSE ACTIVITIES OF THE DEPARTMENT OF ENERGY, TO PRESCRIBE PERSONNEL 
  STRENGTHS FOR SUCH FISCAL YEAR FOR THE ARMED FORCES, AND FOR OTHER 
  PURPOSES

[Excerpt]

Use of smart card technology in the Department of Defense (sec. 346)

    The committee recommends a provision that would require the 
Secretary of Defense to designate the Navy as the lead agency 
for development and implementation of the SMART CARD program. 
The provision would further authorize the Navy to spend up to 
$30.0 million for further fielding of the Smart Card. The 
provision would further authorize up to $5.0 million for the 
Army, and $5.0 million for the Air Force, to expand 
implementation of smart card technology throughout the 
Department of Defense.
    The committee is pleased with the Navy's efforts to develop 
and implement smart card technology. As part of its Revolution 
in Business Affairs initiative, the Navy has begun to use smart 
cards to re-engineer the processing of new recruits, ensure 
seamless transitions from ship to shore in its carrier battle 
groups, and significantly improve manifesting and in-transit 
visibility of troops.
    The committee encourages the Navy to expand upon its 
existing program, and begin to roll out smart card technology 
across the entire department. The Navy should also begin to 
identify ways smart cards can be exploited to further improve 
business processes. One potential area is the conversion of 
existing paper-based personnel records to electronic media for 
systems that have been modified to use smart card technology.
    The committee understands that both the Army and the Air 
Force have expressed an interest in smart card technology, and 
have begun to examine ways in which smart cards can be 
exploited. With the progress already made by the Navy, benefits 
and savings of smart card technology can best be achieved by 
ensuring that smart card initiatives are coordinated among all 
military services. Accordingly, the committee directs the 
Secretary of Defense to establish a senior coordinating group, 
led by the Navy, to oversee the development and implementation 
of smart card technology across the services. To ensure that 
duplicative systems are not needlessly developed, the senior 
coordinating group should take particular care to ensure that 
smart cards are interoperable both within and among the 
services.
    The senior coordinating group should identify and fund 
demonstration projects in the Army and Air Force that will 
exploit smart cards to improve business processes and enhance 
readiness. The committee allocates $5.0 million for each 
service for this purpose. The committee is particularly 
impressed with reports from USTRANSCOM that smart cards have 
reduced the time required to manifest a wide-body aircraft from 
3 to 4 hours, to under 20 minutes. A demonstration project that 
builds upon the initial success of USTRANSCOM would be an 
appropriate use of the Air Force funds.

Study on use of smart card as PKI authentication device carrier for the 
        Department of Defense (sec. 347)

    The Department of Defense (DOD) is planning to use Public 
Key Infrastructure (PKI) devices as a tool for authenticating 
and securing electronic mail and other network communications 
as part of its information assurance program. Smart card 
technology appears to be a strong candidate for contributing to 
the satisfaction of this requirement. Therefore, the committee 
recommends a provision that would require the Secretary 
ofDefense to conduct a study of the possibility of using smart card 
technology for application to satisfy DOD's PKI requirements. The 
provision also requires the Secretary to submit to the Senate and House 
Armed Services Committees a report on the results of the study not 
later than January 31, 2000.

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