MIL X ASSIGNED SAME ALT AS ACR Y HAD LTSS. SYS ERROR.

Narrative

MIL X; A FLT OF 4 FGT'S; WERE RECOVERING FROM WARNING AREA W-157A ENRTE TO DOBBINS AFB (MGE); GA. A RADAR HDOF WAS RECEIVED FROM 'SEALORD' (FACSFAC JAX; MRU LOCATED AT NAS JACKSONVILLE) WITH THE MIL X AT AND ASSIGNED FL370. ACR Y WAS SBOUND ON J79 AT FL350. THE SEALORD CTLR ISSUED (IN ERROR) DSCNT TO FL350 TO MIL X; AND MIL X EXITED THE WARNING AREA AT FL350 APPROX 10 NM CONVERGING WITH ACR Y. I AT FIRST BELIEVED THAT MIL X MODE C WAS INCORRECT; BUT ISSUED TFC INFO AND A TURN TO 270 DEGS TO ACR Y UNTIL COMS WERE ESTABLISHED WITH MIL X. WHEN MIL X CHKED ON FREQ I ISSUED 'IMMEDIATE' CLB TO FL370; AS CONFLICT ALERT HAD ACTIVATED WHEN THE ACFT WERE APPROX 6 NM APART AND CLOSING. UNFORTUNATELY; ALL MODE C INFO ON BOTH TARGETS WAS LOST UNTIL AFTER THE ACFT PASSED EACH OTHER. I ESTIMATE THAT THE CLOSEST PROX WAS 2-3 MI AT THE SAME ALT AND CLOSING WHEN 'IMMEDIATE' INSTRUCTIONS WERE ISSUED TO MIL X. THE ACR Y ACFT WAS TCASII EQUIPPED; BUT WHETHER AN ALERT WAS ACTIVATED TO THE FLC IS UNKNOWN BUT THE CREW DID QUESTION WHY THE MIL ACFT WERE AT HIS ALT. A MIL FACILITY DEV HAS BEEN FILED.