75–718

107TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 1st Session 107–246

MAKING APPROPRIATIONS FOR MILITARY CONSTRUCTION,

FAMILY HOUSING, AND BASE REALIGNMENT AND CLOSURE FOR THE DEPARTMENT OF DEFENSE FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 2002, AND FOR OTHER

PURPOSES

OCTOBER 16, 2001.—Ordered to be printed

Mr. HOBSON, from the Committee of Conference,

submitted the following

CONFERENCE REPORT

[To accompany H.R. 2904]

The committee of conference on the disagreeing votes of the

two Houses on the amendment of the Senate to the bill (H.R. 2904)

‘‘making appropriations for military construction, family housing,

and base realignment and closure for the Department of Defense

for the fiscal year ending September 30, 2002, and for other purposes,’’ having met, after full and free conference, have agreed to

recommend and do recommend to their respective Houses as follows:

That the House recede from its disagreement to the amendment of the Senate, and agree to the same with an amendment, as

follows:

In lieu of the matter stricken and inserted by said amendment,

insert:

That the following sums are appropriated, out of any money in the

Treasury not otherwise appropriated for military construction, family housing, and base realignment and closure functions administered by the Department of Defense, for the fiscal year ending September 30, 2002, and for other purposes, namely:

MILITARY CONSTRUCTION, ARMY

(INCLUDING RESCISSION)

For acquisition, construction, installation, and equipment of

temporary or permanent public works, military installations, facilities, and real property for the Army as currently authorized by law,

including personnel in the Army Corps of Engineers and other perVerDate 13-OCT-2001 06:29 Oct 17, 2001 Jkt 075718 PO 00000 Frm 00001 Fmt 6659 Sfmt 6603 E:\HR\OC\HR246.XXX pfrm03 PsN: HR246
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sonal services necessary for the purposes of this appropriation, and

for construction and operation of facilities in support of the functions of the Commander in Chief, $1,778,256,000, to remain available until September 30, 2006: Provided, That of this amount, not

to exceed $163,198,000 shall be available for study, planning, design, architect and engineer services, and host nation support, as

authorized by law, unless the Secretary of Defense determines that

additional obligations are necessary for such purposes and notifies

the Committees on Appropriations of both Houses of Congress of his

determination and the reasons therefor: Provided further, That of

the funds appropriated for ‘‘Military Construction, Army’’ under

Public Law 106–52, $36,400,000 are rescinded.

MILITARY CONSTRUCTION, NAVY

(INCLUDING RESCISSION)

For acquisition, construction, installation, and equipment of

temporary or permanent public works, naval installations, facilities,

and real property for the Navy as currently authorized by law, including personnel in the Naval Facilities Engineering Command

and other personal services necessary for the purposes of this appropriation, $1,144,221,000, to remain available until September 30,

2006: Provided, That of this amount, not to exceed $34,152,000

shall be available for study, planning, design, architect and engineer services, as authorized by law, unless the Secretary of Defense

determines that additional obligations are necessary for such purposes and notifies the Committees on Appropriations of both Houses

of Congress of his determination and the reasons therefor: Provided

further, That of the funds appropriated for ‘‘Military Construction,

Navy’’ under Public Law 106–246, $19,588,000 are rescinded.

MILITARY CONSTRUCTION, AIR FORCE

(INCLUDING RESCISSION)

For acquisition, construction, installation, and equipment of

temporary or permanent public works, military installations, facilities, and real property for the Air Force as currently authorized by

law, $1,194,880,000, to remain available until September 30, 2006:

Provided, That of this amount, not to exceed $83,210,000 shall be

available for study, planning, design, architect and engineer services, as authorized by law, unless the Secretary of Defense determines that additional obligations are necessary for such purposes

and notifies the Committees on Appropriations of both Houses of

Congress of his determination and the reasons therefor: Provided

further, That of the funds appropriated for ‘‘Military Construction,

Air Force’’ under previous Military Construction Appropriations

Acts, $4,000,000 are rescinded.

MILITARY CONSTRUCTION, DEFENSE-WIDE

(INCLUDING TRANSFER AND RESCISSIONS OF FUNDS)

For acquisition, construction, installation, and equipment of

temporary or permanent public works, installations, facilities, and

real property for activities and agencies of the Department of Defense (other than the military departments), as currently authorized

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by law, $840,558,000, to remain available until September 30, 2006:

Provided, That such amounts of this appropriation as may be determined by the Secretary of Defense may be transferred to such appropriations of the Department of Defense available for military construction or family housing as he may designate, to be merged with

and to be available for the same purposes, and for the same time

period, as the appropriation or fund to which transferred: Provided

further, That of the amount appropriated, not to exceed $66,496,000

shall be available for study, planning, design, architect and engineer services, as authorized by law, unless the Secretary of Defense

determines that additional obligations are necessary for such purposes and notifies the Committees on Appropriations of both Houses

of Congress of his determination and the reasons therefor: Provided

further, That of the funds appropriated for ‘‘Military Construction,

Defense-wide’’ under Public Law 106–246, $65,280,000 are rescinded: Provided further, That of the funds appropriated for ‘‘Military Construction, Defense-wide’’ under previous Military Construction Appropriations Acts, $4,000,000 are rescinded.

MILITARY CONSTRUCTION, ARMY NATIONAL GUARD

For construction, acquisition, expansion, rehabilitation, and

conversion of facilities for the training and administration of the

Army National Guard, and contributions therefor, as authorized by

chapter 1803 of title 10, United States Code, and Military Construction Authorization Acts, $405,565,000, to remain available until

September 30, 2006.

MILITARY CONSTRUCTION, AIR NATIONAL GUARD

For construction, acquisition, expansion, rehabilitation, and

conversion of facilities for the training and administration of the

Air National Guard, and contributions therefor, as authorized by

chapter 1803 of title 10, United States Code, and Military Construction Authorization Acts, $253,386,000, to remain available until

September 30, 2006.

MILITARY CONSTRUCTION, ARMY RESERVE

For construction, acquisition, expansion, rehabilitation, and

conversion of facilities for the training and administration of the

Army Reserve as authorized by chapter 1803 of title 10, United

States Code, and Military Construction Authorization Acts,

$167,019,000, to remain available until September 30, 2006.

MILITARY CONSTRUCTION, NAVAL RESERVE

(INCLUDING RESCISSION)

For construction, acquisition, expansion, rehabilitation, and

conversion of facilities for the training and administration of the reserve components of the Navy and Marine Corps as authorized by

chapter 1803 of title 10, United States Code, and Military Construction Authorization Acts, $53,201,000, to remain available until September 30, 2006: Provided, That of the funds appropriated for ‘‘Military Construction, Naval Reserve’’ under Public Law 106–246,

$925,000 are rescinded.

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MILITARY CONSTRUCTION, AIR FORCE RESERVE

For construction, acquisition, expansion, rehabilitation, and

conversion of facilities for the training and administration of the

Air Force Reserve as authorized by chapter 1803 of title 10, United

States Code, and Military Construction Authorization Acts,

$74,857,000, to remain available until September 30, 2006.

NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT

PROGRAM

For the United States share of the cost of the North Atlantic

Treaty Organization Security Investment Program for the acquisition and construction of military facilities and installations (including international military headquarters) and for related expenses

for the collective defense of the North Atlantic Treaty Area as authorized in Military Construction Authorization Acts and section

2806 of title 10, United States Code, $162,600,000, to remain available until expended.

FAMILY HOUSING CONSTRUCTION, ARMY

For expenses of family housing for the Army for construction,

including acquisition, replacement, addition, expansion, extension

and alteration, as authorized by law, $312,742,000, to remain available until September 30, 2006.

FAMILY HOUSING OPERATION AND MAINTENANCE, ARMY

For expenses of family housing for the Army for operation and

maintenance, including debt payment, leasing, minor construction,

principal and interest charges, and insurance premiums, as authorized by law, $1,089,573,000.

FAMILY HOUSING CONSTRUCTION, NAVY AND MARINE CORPS

For expenses of family housing for the Navy and Marine Corps

for construction, including acquisition, replacement, addition, expansion, extension and alteration, as authorized by law,

$331,780,000, to remain available until September 30, 2006.

FAMILY HOUSING OPERATION AND MAINTENANCE, NAVY AND

MARINE CORPS

For expenses of family housing for the Navy and Marine Corps

for operation and maintenance, including debt payment, leasing,

minor construction, principal and interest charges, and insurance

premiums, as authorized by law, $910,095,000.

FAMILY HOUSING CONSTRUCTION, AIR FORCE

For expenses of family housing for the Air Force for construction, including acquisition, replacement, addition, expansion, extension and alteration, as authorized by law, $550,703,000, to remain

available until September 30, 2006.

FAMILY HOUSING OPERATION AND MAINTENANCE, AIR FORCE

For expenses of family housing for the Air Force for operation

and maintenance, including debt payment, leasing, minor construcVerDate 13-OCT-2001 06:29 Oct 17, 2001 Jkt 075718 PO 00000 Frm 00004 Fmt 6659 Sfmt 6603 E:\HR\OC\HR246.XXX pfrm03 PsN: HR246
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tion, principal and interest charges, and insurance premiums, as

authorized by law, $844,715,000.

FAMILY HOUSING, DEFENSE-WIDE

For expenses of family housing for the activities and agencies

of the Department of Defense (other than the military departments)

for construction, including acquisition, replacement, addition, expansion, extension and alteration, and for operation and maintenance, leasing, and minor construction, as authorized by law, as

follows: for Construction, $250,000 to remain available until September 30, 2006; for Operation and Maintenance, $43,762,000; in

all $44,012,000.

DEPARTMENT OF DEFENSE FAMILY HOUSING IMPROVEMENT FUND

For the Department of Defense Family Housing Improvement

Fund, $2,000,000, to remain available until expended, for family

housing initiatives undertaken pursuant to section 2883 of title 10,

United States Code, providing alternative means of acquiring and

improving military family housing, and supporting facilities.

HOMEOWNERS ASSISTANCE FUND, DEFENSE

For the Homeowners Assistance Fund established by section

1013 of the Demonstration Cities and Metropolitan Development Act

of 1966, as amended (42 U.S.C. 3374) $10,119,000, to remain available until expended.

BASE REALIGNMENT AND CLOSURE ACCOUNT

For deposit into the Department of Defense Base Closure Account 1990 established by section 2906(a)(1) of the Department of

Defense Authorization Act, 1991 (Public Law 101–510),

$632,713,000, to remain available until expended.

GENERAL PROVISIONS

SEC. 101. None of the funds appropriated in Military Construction Appropriations Acts shall be expended for payments under a

cost-plus-a-fixed-fee contract for construction, where cost estimates

exceed $25,000, to be performed within the United States, except

Alaska, without the specific approval in writing of the Secretary of

Defense setting forth the reasons therefor.

SEC. 102. Funds appropriated to the Department of Defense for

construction shall be available for hire of passenger motor vehicles.

SEC. 103. Funds appropriated to the Department of Defense for

construction may be used for advances to the Federal Highway Administration, Department of Transportation, for the construction of

access roads as authorized by section 210 of title 23, United States

Code, when projects authorized therein are certified as important to

the national defense by the Secretary of Defense.

SEC. 104. None of the funds appropriated in this Act may be

used to begin construction of new bases inside the continental

United States for which specific appropriations have not been made.

SEC. 105. No part of the funds provided in Military Construction Appropriations Acts shall be used for purchase of land or land

easements in excess of 100 percent of the value as determined by the

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Army Corps of Engineers or the Naval Facilities Engineering Command, except: (1) where there is a determination of value by a Federal court; (2) purchases negotiated by the Attorney General or his

designee; (3) where the estimated value is less than $25,000; or (4)

as otherwise determined by the Secretary of Defense to be in the

public interest.

SEC. 106. None of the funds appropriated in Military Construction Appropriations Acts shall be used to: (1) acquire land; (2) provide for site preparation; or (3) install utilities for any family housing, except housing for which funds have been made available in

annual Military Construction Appropriations Acts.

SEC. 107. None of the funds appropriated in Military Construction Appropriations Acts for minor construction may be used to

transfer or relocate any activity from one base or installation to another, without prior notification to the Committees on Appropriations.

SEC. 108. No part of the funds appropriated in Military Construction Appropriations Acts may be used for the procurement of

steel for any construction project or activity for which American

steel producers, fabricators, and manufacturers have been denied

the opportunity to compete for such steel procurement.

SEC. 109. None of the funds available to the Department of Defense for military construction or family housing during the current

fiscal year may be used to pay real property taxes in any foreign nation.

SEC. 110. None of the funds appropriated in Military Construction Appropriations Acts may be used to initiate a new installation

overseas without prior notification to the Committees on Appropriations.

SEC. 111. None of the funds appropriated in Military Construction Appropriations Acts may be obligated for architect and engineer contracts estimated by the Government to exceed $500,000 for

projects to be accomplished in Japan, in any NATO member country, or in countries bordering the Arabian Sea, unless such contracts

are awarded to United States firms or United States firms in joint

venture with host nation firms.

SEC. 112. None of the funds appropriated in Military Construction Appropriations Acts for military construction in the United

States territories and possessions in the Pacific and on Kwajalein

Atoll, or in countries bordering the Arabian Sea, may be used to

award any contract estimated by the Government to exceed

$1,000,000 to a foreign contractor: Provided, That this section shall

not be applicable to contract awards for which the lowest responsive

and responsible bid of a United States contractor exceeds the lowest

responsive and responsible bid of a foreign contractor by greater

than 20 percent: Provided further, That this section shall not apply

to contract awards for military construction on Kwajalein Atoll for

which the lowest responsive and responsible bid is submitted by a

Marshallese contractor.

SEC. 113. The Secretary of Defense is to inform the appropriate

committees of Congress, including the Committees on Appropriations, of the plans and scope of any proposed military exercise involving United States personnel 30 days prior to its occurring, if

amounts expended for construction, either temporary or permanent,

are anticipated to exceed $100,000.

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SEC. 114. Not more than 20 percent of the appropriations in

Military Construction Appropriations Acts which are limited for obligation during the current fiscal year shall be obligated during the

last 2 months of the fiscal year.

(TRANSFER OF FUNDS)

SEC. 115. Funds appropriated to the Department of Defense for

construction in prior years shall be available for construction authorized for each such military department by the authorizations enacted into law during the current session of Congress.

SEC. 116. For military construction or family housing projects

that are being completed with funds otherwise expired or lapsed for

obligation, expired or lapsed funds may be used to pay the cost of

associated supervision, inspection, overhead, engineering and design

on those projects and on subsequent claims, if any.

SEC. 117. Notwithstanding any other provision of law, any

funds appropriated to a military department or defense agency for

the construction of military projects may be obligated for a military

construction project or contract, or for any portion of such a project

or contract, at any time before the end of the fourth fiscal year after

the fiscal year for which funds for such project were appropriated

if the funds obligated for such project: (1) are obligated from funds

available for military construction projects; and (2) do not exceed

the amount appropriated for such project, plus any amount by

which the cost of such project is increased pursuant to law.

(TRANSFER OF FUNDS)

SEC. 118. During the 5-year period after appropriations available to the Department of Defense for military construction and

family housing operation and maintenance and construction have

expired for obligation, upon a determination that such appropriations will not be necessary for the liquidation of obligations or for

making authorized adjustments to such appropriations for obligations incurred during the period of availability of such appropriations, unobligated balances of such appropriations may be transferred into the appropriation ‘‘Foreign Currency Fluctuations, Construction, Defense’’ to be merged with and to be available for the

same time period and for the same purposes as the appropriation

to which transferred.

SEC. 119. The Secretary of Defense is to provide the Committees

on Appropriations of the Senate and the House of Representatives

with an annual report by February 15, containing details of the specific actions proposed to be taken by the Department of Defense during the current fiscal year to encourage other member nations of the

North Atlantic Treaty Organization, Japan, Korea, and United

States allies bordering the Arabian Sea to assume a greater share

of the common defense burden of such nations and the United

States.

(TRANSFER OF FUNDS)

SEC. 120. During the current fiscal year, in addition to any

other transfer authority available to the Department of Defense, proceeds deposited to the Department of Defense Base Closure Account

established by section 207(a)(1) of the Defense Authorization

8

Amendments and Base Closure and Realignment Act (Public Law

100–526) pursuant to section 207(a)(2)(C) of such Act, may be transferred to the account established by section 2906(a)(1) of the Department of Defense Authorization Act, 1991, to be merged with, and to

be available for the same purposes and the same time period as that

account.

SEC. 121. (a) No funds appropriated pursuant to this Act may

be expended by an entity unless the entity agrees that in expending

the assistance the entity will comply with sections 2 through 4 of the

Act of March 3, 1933 (41 U.S.C. 10a–10c, popularly known as the

‘‘Buy American Act’’).

(b) No funds made available under this Act shall be made

available to any person or entity who has been convicted of violating

the Act of March 3, 1933 (41 U.S.C. 10a–10c, popularly known as

the ‘‘Buy American Act’’).

SEC. 122. (a) In the case of any equipment or products that may

be authorized to be purchased with financial assistance provided

under this Act, it is the sense of the Congress that entities receiving

such assistance should, in expending the assistance, purchase only

American-made equipment and products.

(b) In providing financial assistance under this Act, the Secretary of the Treasury shall provide to each recipient of the assistance a notice describing the statement made in subsection (a) by the

Congress.

(TRANSFER OF FUNDS)

SEC. 123. Subject to 30 days prior notification to the Committees on Appropriations, such additional amounts as may be determined by the Secretary of Defense may be transferred to the Department of Defense Family Housing Improvement Fund from amounts

appropriated for construction in ‘‘Family Housing’’ accounts, to be

merged with and to be available for the same purposes and for the

same period of time as amounts appropriated directly to the Fund:

Provided, That appropriations made available to the Fund shall be

available to cover the costs, as defined in section 502(5) of the Congressional Budget Act of 1974, of direct loans or loan guarantees

issued by the Department of Defense pursuant to the provisions of

subchapter IV of chapter 169, title 10, United States Code, pertaining to alternative means of acquiring and improving military

family housing and supporting facilities.

SEC. 124. None of the funds appropriated or made available by

this Act may be obligated for Partnership for Peace Programs in the

New Independent States of the former Soviet Union.

SEC. 125. (a) Not later than 60 days before issuing any solicitation for a contract with the private sector for military family housing the Secretary of the military department concerned shall submit

to the congressional defense committees the notice described in subsection (b).

(b)(1) A notice referred to in subsection (a) is a notice of any

guarantee (including the making of mortgage or rental payments)

proposed to be made by the Secretary to the private party under the

contract involved in the event of—

(A) the closure or realignment of the installation for which

housing is provided under the contract;

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(B) a reduction in force of units stationed at such installation; or

(C) the extended deployment overseas of units stationed at

such installation.

(2) Each notice under this subsection shall specify the nature of

the guarantee involved and assess the extent and likelihood, if any,

of the liability of the Federal Government with respect to the guarantee.

(c) In this section, the term ‘‘congressional defense committees’’ means the following:

(1) The Committee on Armed Services and the Military

Construction Subcommittee, Committee on Appropriations of

the Senate.

(2) The Committee on Armed Services and the Military

Construction Subcommittee, Committee on Appropriations of

the House of Representatives.

(TRANSFER OF FUNDS)

SEC. 126. During the current fiscal year, in addition to any

other transfer authority available to the Department of Defense,

amounts may be transferred from the account established by section

2906(a)(1) of the Department of Defense Authorization Act, 1991, to

the fund established by section 1013(d) of the Demonstration Cities

and Metropolitan Development Act of 1966 (42 U.S.C. 3374) to pay

for expenses associated with the Homeowners Assistance Program.

Any amounts transferred shall be merged with and be available for

the same purposes and for the same time period as the fund to

which transferred.

SEC. 127. Notwithstanding this or any other provision of law,

funds appropriated in Military Construction Appropriations Acts for

operations and maintenance of family housing shall be the exclusive

source of funds for repair and maintenance of all family housing

units, including general or flag officer quarters: Provided, That not

more than $35,000 per unit may be spent annually for the maintenance and repair of any general or flag officer quarters without 30

days advance prior notification to the appropriate committees of

Congress: Provided further, That the Under Secretary of Defense

(Comptroller) is to report annually to the Committees on Appropriations all operations and maintenance expenditures for each individual general or flag officer quarters for the prior fiscal year.

SEC. 128. In addition to the amounts provided in Public Law

107–20, of the funds appropriated under the heading ‘‘Military Construction, Air Force’’ in this Act, $8,000,000 is to remain available

until September 30, 2005: Provided, That notwithstanding any

other provision of law, such funds may be obligated or expended to

carry out planning and design and military construction activities

at the Masirah Island Airfield in Oman, not otherwise authorized

by law.

SEC. 129. Not later than 90 days after the enactment of this

Act, the Secretary of Defense shall submit to the congressional defense committees a master plan for the environmental remediation

of Hunters Point Naval Shipyard, California. The plan shall identify an aggregate cost estimate for the entire project as well as cost

estimates for individual parcels. The plan shall also include a detailed cleanup schedule and an analysis of whether the Department

10

is meeting legal requirements and community commitments. Following submission of the initial report, the Department shall submit

semi-annual progress reports to the congressional defense committees.

(RESCISSION OF FUNDS)

SEC. 130. Of the funds available to the Secretary of Defense in

the ‘‘Foreign Currency Fluctuations, Construction, Defense’’ account,

$60,000,000 are rescinded.

SEC. 131. (a) REQUESTS FOR FUNDS FOR ENVIRONMENTAL RESTORATION AT BRAC SITES IN FUTURE FISCAL YEARS.—In the budget

justification materials submitted to Congress in support of the Department of Defense budget for any fiscal year after fiscal year 2002,

the amount requested for environmental restoration, waste management, and environmental compliance activities in such fiscal year

with respect to military installations approved for closure or realignment under the base closure laws shall accurately reflect the

anticipated cost of such activities in such fiscal year.

(b) BASE CLOSURE LAWS DEFINED.—In this section, the term

‘‘base closure laws’’ means the following:

(1) Section 2687 of title 10, United States Code.

(2) The Defense Base Closure and Realignment Act of 1990

(part A of title XXIX of Public Law 101–510; 10 U.S.C. 2687

note).

(3) Title II of the Defense Authorization Amendments and

Base Closure and Realignment Act (Public Law 100–526; 10

U.S.C. 2687 note).

SEC. 132. (a) The total of the amounts appropriated by the other

provisions of this Act, other than the amounts appropriated for the

accounts specified in subsection (c), is hereby reduced by 1.127 percent.

(b) The total amount of the reduction computed under subsection (a) shall be allocated proportionally among all of the budget

activities, activity groups, and subactivity groups and among all of

the accounts and all of the programs, projects, and activities within

each account, except for the accounts specified in subsection (c).

(c) No reduction shall be allocated under this section to the

Base Realignment and Closure Account, or to the North Atlantic

Treaty Organization Security Investment Program.

This Act may be cited as the ‘‘Military Construction Appropriations Act, 2002’’.

And the Senate agree to the same.

DAVID L. HOBSON, JAMES T. WALSH,

DAN MILLER,

ROBERT B. ADERHOLT,

KAY GRANGER,

VIRGIL GOODE, Jr.,

JOE SKEEN,

DAVID VITTER,

BILL YOUNG,

JOHN W. OLVER,

CHET EDWARDS,

SAM FARR,

11

ALLEN BOYD, NORMAN DICKS, DAVID OBEY, Managers on the Part of the House.

DIANNE FEINSTEIN,

DANIEL K. INOUYE,

TIM JOHNSON,

MARY LANDRIEU,

HARRY REID,

ROBERT C. BYRD,

KAY BAILEY HUTCHISON,

CONRAD BURNS,

LARRY E. CRAIG

MIKE DEWINE,

TED STEVENS,

Managers on the Part of the Senate.

(12)

JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF

CONFERENCE

The managers on the part of the House and the Senate at the

conference on the disagreeing votes of the two Houses on the

amendment of the Senate to the bill (H.R. 2904) making appropriations for the Department of Defense for the fiscal year ending September 30, 2002, and for other purposes, submit the following joint

statement to the House of Representatives and the Senate in explanation of the effect of the action agreed upon by the managers and

recommended in the accompanying conference report.

The Senate deleted the entire House bill after the enacting

clause and inserted the Senate bill (S. 1460). The conference agreement includes a revised bill.

ITEMS OF GENERAL INTEREST

Matters Addressed by Only One Committee.—The language and

allocations set forth in House Report 107–207 and Senate Report

107–68 should be complied with unless specifically addressed to the

contrary in the conference report and statement of the managers.

Report language included by the House which is not changed by

the report of the Senate or the conference, and Senate report language which is not changed by the conference is approved by the

committee of conference. The statement of the managers, while repeating some report language for emphasis, does not intend to negate the language referred to above unless expressly provided herein. In cases in which the House or the Senate have directed the

submission of a report from the Department of Defense, such report

is to be submitted to both House and Senate Committees on Appropriations.

Financial Management.—The conferees agree that the rescission of funds and general reductions included in the conference

agreement are based on prior year unobligated balances and such

factors as savings through favorable bids, reduced overhead costs,

downsizing or cancellation due to force structure changes (if any),

other administrative cost reduction initiatives, revised economic assumptions, and inflation re-estimates. The conferees direct that no

project for which funds were previously appropriated, or for which

funds are appropriated in this bill, may be canceled as a result of

the reductions included in the conference agreement.

Foreign Currency Fluctuations, Construction, Defense.—The

amounts available in the ‘‘Foreign Currency Fluctuations, Construction, Defense’’ account exceed those necessary to eliminate

losses due to unfavorable fluctuations in foreign currency exchange

rates. Accordingly, the conferees include a provision (Section 130)

which rescinds $60,000,000 from this account.

13

Sustainment, Restoration, and Modernization: Reporting Requirement.—The conferees agree to the following general rules for

repairing a facility under operation and maintenance funding:

Components of the facility may be repaired by replacement,

and such replacement can be up to current standards or code.

Interior arrangements and restorations may be included as repair, but additions, new facilities, and functional conversions must

be performed as military construction projects.

Such projects may be done concurrent with repair projects, as

long as the final conjunctively funded project is a complete and usable facility.

The appropriate Service Secretary shall notify the appropriate

Committees 21 days prior to carrying out any repair project with

an estimated cost in excess of $7,500,000.

The Department is directed to provide sustainment, restoration, and modernization backlog at all installations for which there

is a requested construction project in future budget requests. This

information is to be provided on the form 1390. In addition, for all

troop housing requests, the form 1391 is to show all sustainment,

restoration, and modernization conducted in the past two years and

future requirements for unaccompanied housing at the installation.

Family Housing Operation and Maintenance: Financial Management.—The conferees agree to continue the restriction on the

transfer of funds between the family housing operation and maintenance accounts. The limitation is ten percent to all primary accounts and subaccounts. Such transfers are to be reported to the

appropriate Committees within thirty days of such action.

Overseas Basing Master Plan.—The conferees support the Senate direction for an overseas basing master plan, to be submitted

no later than April 1, 2002.

Pennsylvania: Joint-use Facility.—The conferees are aware of

the need to renovate four Guard and Reserve facilities in Northeastern Pennsylvania and the benefits of consolidating them into a

joint-use facility. Therefore, the conferees encourage the Department to make this project a priority and program the requirement

in the Future Years Defense Plan.

MILITARY CONSTRUCTION, ARMY

(INCLUDING RESCISSION)

The conference agreement appropriates $1,778,256,000 for

Military Construction, Army, instead of $1,739,334,000 as proposed

by the House, and $1,668,957,000 as proposed by the Senate. Within this amount, the conference agreement earmarks $163,198,000

for study, planning, design, architect and engineer services, and

host nation support instead of $163,141,000 as proposed by the

House and $176,184,000 as proposed by the Senate. The conference

agreement rescinds $36,400,000 from funds appropriated for Military Construction, Army under Public Law 106–52, as proposed by

the House, instead of $26,400,000 as proposed by the Senate.

14

MILITARY CONSTRUCTION, NAVY

(INCLUDING RESCISSION)

The conference agreement appropriates $1,144,221,000 for

Military Construction, Navy, instead of $1,154,248,000 as proposed

by the House, and $1,148,633,000 as proposed by the Senate. Within this amount, the conference agreement earmarks $34,152,000 for

study, planning, design, architect and engineer services instead of

$30,972,000 as proposed by the House and $37,332,000 as proposed

by the Senate. The conference agreement rescinds $19,588,000

from funds appropriated for Military Construction, Navy under

Public Law 106–246, as proposed by the House and Senate.

Texas: Kingsville Naval Air Station: Airfield Lighting.—The

conferees direct the Navy to accelerate design of this project and

to include the required construction funding in the budget request

for fiscal year 2003.

MILITARY CONSTRUCTION, AIR FORCE

(INCLUDING RESCISSION)

The conference agreement appropriates $1,194,880,000 for

Military Construction, Air Force, instead of $1,185,220,000 as proposed by the House, and $1,148,269,000 as proposed by the Senate.

Within this amount, the conference agreement earmarks

$83,210,000 for study, planning, design, architect and engineer

services instead of $83,000,000 as proposed by the House and

$83,420,000 as proposed by the Senate. The conference agreement

rescinds $4,000,000 from funds appropriated for Military Construction, Air Force under previous Military Construction Appropriations Acts, as proposed by the Senate.

Nebraska—Offutt Air Force Base: Fire/Crash Rescue Station.—

The conferees direct the Air Force to accelerate design of this

project and to include the required construction funding in the

budget request for fiscal year 2003.

Wyoming—F.E. Warren Air Force Base: Storm Water Drainage

System.—The fiscal year 2001 Senate Report 106–290 included

funding of $10,300,000 for a Storm Water Drainage System Project

at F.E. Warren Air Force Base in Wyoming. Unfortunately, funding

constraints prohibited final action. Storm water flooding remains a

major problem at F.E. Warren Air Force Base. The project will better manage and divert flood waters on the installation. In addition,

the project will greatly decrease the amount of storm water leaving

the base which significantly impacts on the surrounding community. The conferees agree that this project addresses an urgent,

mission critical, and safety requirement, and the Air Force is

strongly encouraged to include this project in the budget request

for fiscal year 2003.

Korea—Osan Air Base: Base Civil Engineer Complex.—The

conferees are concerned about the significant cost of replacing current civil engineer facilities at Osan Air Base as proposed in the

fiscal year 2002 budget request. Although the conferees support follow-on family housing projects envisioned for Osan Air Base, they

do not support funding for a robust civil engineering complex without significant host nation contribution. The conferees understand

15

that the civil engineers currently occupy land that will ultimately

be used to build family housing. Family housing is a direct quality

of life issue that will have a significant impact on the airmen and

the families assigned to the base. The conferees agree to provide

the Air Force $12,000,000 for the base civil engineer project for site

preparation and preliminary utilities requirements. The conferees

direct that any further funding requirements related to this project

be funded through host nation support.

MILITARY CONSTRUCTION, DEFENSE-WIDE

(INCLUDING TRANSFER AND RESCISSIONS OF FUNDS)

The conference agreement appropriates $840,558,000 for Military Construction, Defense-wide, instead of $863,058,000 as proposed by the House, and $881,058,000 as proposed by the Senate.

Within this amount, the conference agreement earmarks

$66,496,000 for study, planning, design, architect and engineer

services instead of $74,496,000 as proposed by the House and

$88,496,000 as proposed by the Senate. The conference agreement

rescinds $69,280,000 from funds appropriated for Military Construction, Defense-wide under Public Law 106–246 and previous

Military Construction Appropriations Acts, as proposed by the Senate, instead of $10,250,000 as proposed by the House.

Chemical Demilitarization: Defense Road Requirements.—The

conferees are concerned about the emergency preparedness planning as part of the Chemical Demilitarization Program. Of the

funds made available in the ‘‘Military Construction, Defense-wide’’

account, the Department may spend up to $300,000 to conduct a

feasibility study on the requirements for defense roads at the

chemical demilitarization sites in the United States to support

emergency preparedness requirements.

Energy Conservation and Improvement Program.—The conferees agree to provide a total of $27,000,000 for this program. Of

these funds, the conferees direct that $6,000,000 be used to conduct

a service-wide assessment of renewable energy alternatives at or

near Department of Defense installations, as described in detail in

Senate Report 107–68.

Measurement and Signature Intelligence Facilities.—The conferees have agreed to drop Senate report language which allocated

$10,000,000 for the planning and design of two Measurement and

Signature Intelligence (MASINT) facilities.

MILITARY CONSTRUCTION, ARMY NATIONAL GUARD

The conference agreement appropriates $405,565,000 for Military Construction, Army National Guard, instead of $313,348,000

as proposed by the House, and $378,549,000 as proposed by the

Senate.

Arizona—Papago Park Military Reservation: Add/Alter Readiness Center.—Although the conferees were unable to fund this

project due to funding constraints, the conferees strongly urge the

Army National Guard to include this project in its fiscal year 2003

budget submission.

Weapons of Mass Destruction—Civil Support Teams.—Of the

funds provided for unspecified minor construction within the ‘‘MiliVerDate 13-OCT-2001 06:29 Oct 17, 2001 Jkt 075718 PO 00000 Frm 00015 Fmt 6604 Sfmt 6601 E:\HR\OC\HR246.XXX pfrm03 PsN: HR246
16

tary Construction, Army National Guard’’ account, the conferees direct that not less than $6,000,000 be made available to directly

support the completion of facilities for WMD/CST locations.

MILITARY CONSTRUCTION, AIR NATIONAL GUARD

The conference agreement appropriates $253,386,000 for Military Construction, Air National Guard, instead of $198,803,000 as

proposed by the House, and $222,767,000 as proposed by the Senate.

Ohio—Mansfield Lahm Airport: Replace Vehicle Maintenance

Facility.—Although the conferees were unable to fund this project

due to funding constraints, the conferees strongly urge the Air National Guard to include this project in its fiscal year 2003 budget

submission.

MILITARY CONSTRUCTION, ARMY RESERVE

The conference agreement appropriates $167,019,000 for Military Construction, Army Reserve, instead of $167,769,000 as proposed by the House, and $111,404,000 as proposed by the Senate.

MILITARY CONSTRUCTION, NAVAL RESERVE

(INCLUDING RESCISSION)

The conference agreement appropriates $53,201,000 for Military Construction, Naval Reserve, instead of $62,351,000 as proposed by the House, and $33,641,000 as proposed by the Senate.

The conference agreement rescinds $925,000 from funds appropriated for Military Construction, Naval Reserve under Public Law

106–246, as proposed by the House and Senate.

Texas—Fort Worth Joint Reserve Base: Compartmented Intelligence Facility.—In Senate Report 107–68, the compartmented intelligence facility at Fort Worth Joint Reserve Base was incorrectly

identified as a Navy project. This project should be executed with

funds made available for unspecified minor construction in the

‘‘Military Construction, Naval Reserve’’ account.

MILITARY CONSTRUCTION, AIR FORCE RESERVE

The conference agreement appropriates $74,857,000 for Military Construction, Air Force Reserve, instead of $81,882,000 as

proposed by the House, and $53,732,000 as proposed by the Senate.

Michigan—Selfridge Air National Guard Base: Alter Command

Post/Logistics Base.—In Senate Report 107–68, the alter command

post/logistics base project at Selfridge Air National Guard Base was

incorrectly identified as an Air National Guard project. This project

should be executed with funds made available for unspecified

minor construction in the ‘‘Military Construction, Air Force Reserve’’ account.

NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT

PROGRAM

The conference agreement appropriates $162,600,000 for the

North Atlantic Treaty Organization Security Investment Program

(NSIP), as proposed by the House and Senate.

17

FAMILY HOUSING CONSTRUCTION, ARMY

The conference agreement appropriates $312,742,000 for Family Housing Construction, Army, as proposed by the Senate, instead

of $294,042,000 as proposed by the House.

FAMILY HOUSING OPERATION AND MAINTENANCE, ARMY

The conference agreement appropriates $1,089,573,000 for

Family Housing Operation and Maintenance, Army, instead of

$1,096,431,000 as proposed by the House and $1,108,991,000 as

proposed by the Senate.

District of Columbia-Fort McNair: General Officer Quarters.—

The Army has requested it be allowed to substitute the renovation

of Quarters 7 at Fort McNair, at a cost of $700,000, in place of

Quarters 3, as submitted in its budget request for $1,200,000. The

conferees agree with this substitution. The conferees are encouraged by the Army’s study being performed by the National Association of Homebuilders to refine and reduce the original cost projections for Fort McNair’s quarters, which appear too high. The conferees expect the Army to use the most economical and cost-effective approach toward renovating these historic quarters.

FAMILY HOUSING CONSTRUCTION, NAVY AND MARINE CORPS

The conference agreement appropriates $331,780,000 for Family Housing Construction, Navy and Marine Corps, instead of

$334,780,000 as proposed by the House and $312,600,000 as proposed by the Senate.

The conferees direct that the following projects are to be accomplished within the increased amount provided for construction

improvements:

District of Columbia: 8th and I Marine Barracks (2 units) ............... $1,600,000

Hawaii: Barking Sands (69 units) ........................................................ 11,840,000

Massachusetts: Westover Air Reserve Base (124 units) ..................... 6,940,000

FAMILY HOUSING OPERATION AND MAINTENANCE, NAVY AND MARINE

CORPS

The conference agreement appropriates $910,095,000 for Family Housing Operation and Maintenance, Navy and Marine Corps,

as proposed by the House, instead of $918,095,000 as proposed by

the Senate.

FAMILY HOUSING CONSTRUCTION, AIR FORCE

The conference agreement appropriates $550,703,000 for Family Housing Construction, Air Force, as proposed by the Senate, instead of $536,237,000 as proposed by the House.

The conferees direct that the following projects are to be accomplished within the increased amount provided for construction

improvements:

Missouri: Whiteman AFB (164 units) .................................................. $17,966,000

South Carolina: Charleston AFB (32 units) ........................................ 4,500,000

18

FAMILY HOUSING OPERATION AND MAINTENANCE, AIR FORCE

The conference agreement appropriates $844,715,000 for Family Housing Operation and Maintenance, Air Force, instead of

$858,121,000 as proposed by the House and $869,121,000 as proposed by the Senate.

FAMILY HOUSING, DEFENSE-WIDE

The conference agreement appropriates $44,012,000 for Family

Housing, Defense-wide, as proposed by the House and Senate.

DEPARTMENT OF DEFENSE FAMILY HOUSING IMPROVEMENT FUND

The conference agreement provides $2,000,000 for the Department of Defense Family Housing Improvement Fund, as proposed

by the House and Senate. Transfer authority is provided for the

execution of any qualifying project under privatization authority,

which resides in the Fund.

Housing Privatization Support Costs.—The conferees are extremely concerned about the costs of consultants hired to assist the

services with the housing privatization initiative. For example, the

Army requested $27,918,000 and the Air Force requested

$35,402,000 to pay for consultants. Costs of this magnitude are exorbitant, especially as neither the Army nor Air Force has made

sufficient progress in privatizing its housing inventory. Therefore,

the conferees agree to reduce $7,918,000 from the ‘‘Family Housing

Operation and Maintenance, Army’’ account, and $13,402,000 from

the ‘‘Family Housing Operation and Maintenance, Air Force’’ account. Furthermore, the conferees remind the services that these

funds should be spent on creating, analyzing and negotiating complex real estate transactions—not on public relations or work that

can be done by the services’ staff.

HOMEOWNERS ASSISTANCE FUND, DEFENSE

The conference agreement appropriates $10,119,000 for the

Homeowners Assistance Fund, Defense, as proposed by the House

and Senate.

BASE REALIGNMENT AND CLOSURE ACCOUNT

The conference agreement appropriates $632,713,000 for the Base Realignment and Closure Account, instead of $552,713,000 as

proposed by the House and $682,200,000 as proposed by the Senate.

Environmental Remediation Shortfalls.—The conferees have

included a general provision (Section 131) directing the Department of Defense to accurately reflect the cost of environmental remediation activities in its future budget submissions for Base Realignment and Closure (BRAC) funding. The conferees note that

the Navy and Air Force BRAC budget requests for fiscal year 2002

were far below the level of funding needed to meet urgent obligations.

The conferees have agreed to provide and fully offset

$100,513,000 over the budget request to fund environmental remediation funding shortfalls in the Navy and Air Force BRAC accounts. The conference provision includes $80,513,000 for the Navy

19

and $20,000,000 for the Air Force. The conferees note that the

funding shortfalls are the result of inadequate programming and

budgeting decisions on the part of the Navy and Air Force.

The conferees strongly believe that the Navy and Air Force

should bear the burden of making up these shortfalls. Therefore,

the funding to cover the BRAC environmental remediation shortfalls is derived from the following sources: a rescission of

$19,588,000 from previously appropriated Navy planning and design funds, a rescission of $925,000 from previously appropriated

Naval Reserve planning and design funds, a $60,000,000 general

reduction in the fiscal year 2002 ‘‘Military Construction, Navy’’ account, and a $20,000,000 general reduction in the fiscal year 2002

‘‘Military Construction, Air Force’’ account. The conferees direct

that no item of congressional interest may be canceled or delayed

as a result of these general reductions.

In addition to the funds provided in this Act, the Navy and Air

Force are directed to allocate all unobligated balances from previously appropriated BRAC funds to address their fiscal year 2002

BRAC environmental remediation funding shortfall. The conferees

direct the services to program and budget for the entire amount of

their annual BRAC environmental remediation obligations in future years, beginning with fiscal year 2003. Failure to do so will

force the congressional committees to take proportionate reductions

in specific military construction projects or programs requested by

the services.

GENERAL PROVISIONS

The conference agreement includes general provisions (Sections

101–120) that were not amended by either the House or Senate in

their versions of the bill.

The conference agreement includes a provision, Section 121, as

proposed by the House, which prohibits the expenditure of funds

except in compliance with the Buy American Act. The Senate bill

contained no similar provision.

The conference agreement includes a provision, Section 122, as

proposed by the House, which states the Sense of the Congress that

recipients of equipment or products authorized to be purchased

with financial assistance provided in this Act are to be notified that

they must purchase American-made equipment and products. The

Senate bill contained no similar provision.

The conference agreement includes a provision, Section 123, as

proposed by the House and Senate, permitting the transfer of funds

from Family Housing, Construction accounts to the DOD Family

Housing Improvement Fund.

The conference agreement includes a provision renumbered

Section 124, as proposed by the House and the Senate, to prohibit

the use of funds in this Act to be obligated for Partnership for

Peace programs in the New Independent States of the former Soviet Union.

The conference agreement includes a provision renumbered

Section 125, as proposed by the House and the Senate, which requires the Secretary of Defense to notify Congressional Committees

sixty days prior to issuing a solicitation for a contract with the private sector for military family housing.

20

The conference agreement includes a provision renumbered

Section 126, as proposed by the House and the Senate, which provides transfer authority to the Homeowners Assistance Program.

The conference agreement includes a provision renumbered

Section 127, as proposed by the Senate, regarding funding for operation and maintenance of general officer quarters.

The conference agreement includes a provision renumbered

Section 128, as proposed by the Senate, which authorizes

$8,000,000 for a military construction project at Masirah Island

Airfield, Oman. The House bill contained a similar provision.

The conference agreement includes a provision, Section 129, as

proposed by the Senate, which requires the Secretary of Defense to

submit a master plan for the environmental remediation of Hunters Point Naval Shipyard, California. The House bill contained no

similar provision.

The conference agreement includes a provision, Section 130, which rescinds $60,000,000 from the ‘‘Foreign Currency Fluctuations, Construction, Defense’’ account.

The conference agreement includes a provision, Section 131,

which directs the Department of Defense to accurately reflect the

cost of environmental restoration activities in its future budget

submissions for the Base Realignment and Closure (BRAC) account.

The conference agreement includes a provision, Section 132,

which reduces all accounts in the bill with the exception of the

‘‘NATO Security Investment Program’’ account and the ‘‘Base Realignment and Closure’’ account by 1.127 percent.

Those general provisions not included in the conference agreement are as follows:

The conference agreement deletes the House provision regarding family housing master plans.

The conference agreement deletes the Senate provision regarding a defense road feasibility study at Pine Bluff Arsenal, Arkansas.

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CONFERENCE TOTAL—WITH COMPARISONS

The total new budget (obligational) authority for the fiscal year

2002 recommended by the Committee of Conference, with comparisons to the fiscal year 2001 amount, the 2002 budget estimates,

and the House and Senate bills for 2002 follows:

[In thousands of dollars]

New budget (obligational) authority, fiscal year 2001 ........................ $8,936,498

Budget estimates of new (obligational) authority, fiscal year 2002 9,971,312

House bill, fiscal year 2002 ................................................................... 10,500,000

Senate bill, fiscal year 2002 .................................................................. 10,500,000

Conference agreement, fiscal year 2002 .............................................. 10,500,000

Conference agreement compared with:

New budget (obligational) authority, fiscal year 2001 ................ +1,563,502

Budget estimates of new (obligational) authority, fiscal year

2002 .............................................................................................. +528,688

House bill, fiscal year 2002 ............................................................

Senate bill, fiscal year 2002 ...........................................................

DAVID L. HOBSON,

JAMES T. WALSH,

DAN MILLER,

ROBERT B. ADERHOLT,

KAY GRANGER,

VIRGIL GOODE, Jr.,

JOE SKEEN,

DAVID VITTER,

BILL YOUNG,

JOHN W. OLVER,

CHET EDWARDS,

SAM FARR,

ALLEN BOYD,

NORMAN DICKS,

DAVID OBEY,

Managers on the Part of the House.

DIANNE FEINSTEIN, DANIEL K. INOUYE, TIM JOHNSON, MARY LANDRIEU, HARRY REID, ROBERT C. BYRD, KAY BAILEY HUTCHISON, CONRAD BURNS, LARRY E. CRAIG, MIKE DEWINE, TED STEVENS, Managers on the Part of the Senate.

Æ