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. ------------------------------------------------------------------------- [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. -------------------------------------------------------------------------