IB 

Union Calendar No. 88

108TH CONGRESS 

1ST SESSION H. R. 2559

[Report No. 108–173] 

Making appropriations for military construction, family housing, and base 

realignment and closure for the Department of Defense for the fiscal 

year ending September 30, 2004, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 23, 2003

Mr. KNOLLENBERG, from the Committee on Appropriations, reported the following bill; which was committed to the Committee of the Whole House 

on the State of the Union and ordered to be printed 

A BILL

Making appropriations for military construction, family housing, and base realignment and closure for the Department of Defense for the fiscal year ending September 

30, 2004, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 That the following sums are appropriated, out of any 

4 money in the Treasury not otherwise appropriated for 

5 military construction, family housing, and base realign-
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1 ment and closure functions administered by the Depart2 ment of Defense, for the fiscal year ending September 30, 

3 2004, and for other purposes, namely:

4 MILITARY CONSTRUCTION, ARMY

5 (INCLUDING RESCISSIONS)

6 For acquisition, construction, installation, and equip7 ment of temporary or permanent public works, military 

8 installations, facilities, and real property for the Army as 

9 currently authorized by law, including personnel in the 

10 Army Corps of Engineers and other personal services nec11 essary for the purposes of this appropriation, and for con12 struction and operation of facilities in support of the func13 tions of the Commander in Chief, $1,533,660,000, to re14 main available until September 30, 2008: Provided, That 

15 of this amount, not to exceed $122,710,000 shall be avail16 able for study, planning, design, architect and engineer 

17 services, and host nation support, as authorized by law, 

18 unless the Secretary of Defense determines that additional 

19 obligations are necessary for such purposes and notifies 

20 the Committees on Appropriations of both Houses of Con21 gress of his determination and the reasons therefor: Pro22 vided further, That of the funds appropriated for ‘‘Military 

23 Construction, Army’’ under Public Law 107–249, 

24 $142,200,000 are rescinded: Provided further, That of the 

25 funds appropriated for ‘‘Military Construction, Army’’ 
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1 under Public Law 107–64, $24,000,000 are rescinded: 

2 Provided further, That of the funds appropriated for ‘‘Mili3 tary Construction, Army’’ under Public Law 106–246, 

4 $17,415,000 are rescinded. 

5 MILITARY CONSTRUCTION, NAVY

6 (INCLUDING RESCISSIONS)

7 For acquisition, construction, installation, and equip8 ment of temporary or permanent public works, naval in9 stallations, facilities, and real property for the Navy as 

10 currently authorized by law, including personnel in the 

11 Naval Facilities Engineering Command and other per12 sonal services necessary for the purposes of this appropria13 tion, $1,211,077,000, to remain available until September 

14 30, 2008: Provided, That of this amount, not to exceed 

15 $65,612,000 shall be available for study, planning, design, 

16 architect and engineer services, as authorized by law, un17 less the Secretary of Defense determines that additional 

18 obligations are necessary for such purposes and notifies 

19 the Committees on Appropriations of both Houses of Con20 gress of his determination and the reasons therefor: Pro21 vided further, That of the funds appropriated for ‘‘Military 

22 Construction, Navy’’ under Public Law 107–249, 

23 $27,213,000 are rescinded: Provided further, That of the 

24 funds appropriated for ‘‘Military Construction, Navy’’ 

25 under Public Law 107–64, $12,109,000 are rescinded. 
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1 MILITARY CONSTRUCTION, AIR FORCE

2 For acquisition, construction, installation, and equip3 ment of temporary or permanent public works, military 

4 installations, facilities, and real property for the Air Force 

5 as currently authorized by law, $896,136,000, to remain 

6 available until September 30, 2008: Provided, That of this 

7 amount, not to exceed $80,543,000 shall be available for 

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

9 as authorized by law, unless the Secretary of Defense de10 termines that additional obligations are necessary for such 

11 purposes and notifies the Committees on Appropriations 

12 of both Houses of Congress of his determination and the 

13 reasons therefor. 

14 MILITARY CONSTRUCTION, DEFENSE-WIDE

15 (INCLUDING RESCISSION AND TRANSFER OF FUNDS)

16 For acquisition, construction, installation, and equip17 ment of temporary or permanent public works, installa18 tions, facilities, and real property for activities and agen19 cies of the Department of Defense (other than the military 

20 departments), as currently authorized by law, 

21 $813,613,000, to remain available until September 30, 

22 2008: Provided, That such amounts of this appropriation 

23 as may be determined by the Secretary of Defense may 

24 be transferred to such appropriations of the Department 

25 of Defense available for military construction or family 
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1 housing as he may designate, to be merged with and to 

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

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

4 Provided further, That of the amount appropriated, not 

5 to exceed $63,884,000 shall be available for study, plan6 ning, design, architect and engineer services, as authorized 

7 by law, unless the Secretary of Defense determines that 

8 additional obligations are necessary for such purposes and 

9 notifies the Committees on Appropriations of both Houses 

10 of Congress of his determination and the reasons therefor: 

11 Provided further, That of the funds appropriated for ‘‘Mili12 tary Construction, Defense-wide’’ under Public Law 107–

13 249, $32,680,000 are rescinded. 

14 MILITARY CONSTRUCTION, ARMY NATIONAL GUARD

15 For construction, acquisition, expansion, rehabilita16 tion, and conversion of facilities for the training and ad17 ministration of the Army National Guard, and contribu18 tions therefor, as authorized by chapter 1803 of title 10, 

19 United States Code, and Military Construction Authoriza20 tion Acts, $208,033,000, to remain available until Sep21 tember 30, 2008. 

22 MILITARY CONSTRUCTION, AIR NATIONAL GUARD

23 For construction, acquisition, expansion, rehabilita24 tion, and conversion of facilities for the training and ad25 ministration of the Air National Guard, and contributions 
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1 therefor, as authorized by chapter 1803 of title 10, United 

2 States Code, and Military Construction Authorization 

3 Acts, $77,105,000, to remain available until September 

4 30, 2008. 

5 MILITARY CONSTRUCTION, ARMY RESERVE

6 For construction, acquisition, expansion, rehabilita7 tion, and conversion of facilities for the training and ad8 ministration of the Army Reserve as authorized by chapter 

9 1803 of title 10, United States Code, and Military Con10 struction Authorization Acts, $84,569,000, to remain 

11 available until September 30, 2008. 

12 MILITARY CONSTRUCTION, NAVAL RESERVE

13 For construction, acquisition, expansion, rehabilita14 tion, and conversion of facilities for the training and ad15 ministration of the reserve components of the Navy and 

16 Marine Corps as authorized by chapter 1803 of title 10, 

17 United States Code, and Military Construction Authoriza18 tion Acts, $38,992,000, to remain available until Sep19 tember 30, 2008. 

20 MILITARY CONSTRUCTION, AIR FORCE RESERVE

21 For construction, acquisition, expansion, rehabilita22 tion, and conversion of facilities for the training and ad23 ministration of the Air Force Reserve as authorized by 

24 chapter 1803 of title 10, United States Code, and Military 
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1 Construction Authorization Acts, $56,212,000, to remain 

2 available until September 30, 2008. 

3 NORTH ATLANTIC TREATY ORGANIZATION

4 SECURITY INVESTMENT PROGRAM

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

6 Atlantic Treaty Organization Security Investment Pro7 gram for the acquisition and construction of military fa8 cilities and installations (including international military 

9 headquarters) and for related expenses for the collective 

10 defense of the North Atlantic Treaty Area as authorized 

11 in Military Construction Authorization Acts and section 

12 2806 of title 10, United States Code, $169,300,000, to 

13 remain available until expended. 

14 FAMILY HOUSING CONSTRUCTION, ARMY

15 (INCLUDING RESCISSION)

16 For expenses of family housing for the Army for con17 struction, including acquisition, replacement, addition, ex18 pansion, extension and alteration, as authorized by law, 

19 $409,191,000, to remain available until September 30, 

20 2008: Provided, That of the funds appropriated for ‘‘Fam21 ily Housing Construction, Army’’ under Public Law 107–

22 249, $52,300,000 are rescinded. 
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1 FAMILY HOUSING OPERATION AND MAINTENANCE, 

2 ARMY

3 For expenses of family housing for the Army for op4 eration and maintenance, including debt payment, leasing, 

5 minor construction, principal and interest charges, and in6 surance premiums, as authorized by law, $1,043,026,000. 

7 FAMILY HOUSING CONSTRUCTION, NAVY AND MARINE

8 CORPS

9 (INCLUDING RESCISSION)

10 For expenses of family housing for the Navy and Ma11 rine Corps for construction, including acquisition, replace12 ment, addition, expansion, extension and alteration, as au13 thorized by law, $184,193,000, to remain available until 

14 September 30, 2008: Provided, That of the funds appro15 priated for ‘‘Family Housing Construction, Navy and Ma16 rine Corps’’ under Public Law 107–249, $3,585,000 are 

17 rescinded. 

18 FAMILY HOUSING OPERATION AND MAINTENANCE, 

19 NAVY AND MARINE CORPS

20 For expenses of family housing for the Navy and Ma21 rine Corps for operation and maintenance, including debt 

22 payment, leasing, minor construction, principal and inter23 est charges, and insurance premiums, as authorized by 

24 law, $852,778,000. 
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1 FAMILY HOUSING CONSTRUCTION, AIR FORCE

2 (INCLUDING RESCISSIONS)

3 For expenses of family housing for the Air Force for 

4 construction, including acquisition, replacement, addition, 

5 expansion, extension and alteration, as authorized by law, 

6 $657,065,000, to remain available until September 30, 

7 2008: Provided, That of the funds appropriated for ‘‘Fam8 ily Housing Construction, Air Force’’ under Public Law 

9 107–249, $19,347,000 are rescinded: Provided further,

10 That of the funds appropriated for ‘‘Family Housing Con11 struction, Air Force’’ under Public Law 105–237, 

12 $9,692,000 are rescinded. 

13 FAMILY HOUSING OPERATION AND MAINTENANCE, AIR

14 FORCE

15 For expenses of family housing for the Air Force for 

16 operation and maintenance, including debt payment, leas17 ing, minor construction, principal and interest charges, 

18 and insurance premiums, as authorized by law, 

19 $826,074,000. 

20 FAMILY HOUSING CONSTRUCTION, DEFENSE-WIDE

21 For expenses of family housing for the activities and 

22 agencies of the Department of Defense (other than the 

23 military departments) for construction, including acquisi24 tion, replacement, addition, expansion, extension and al-
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1 teration, as authorized by law, $350,000, to remain avail2 able until September 30, 2008. 

3 FAMILY HOUSING OPERATION AND MAINTENANCE, 

4 DEFENSE-WIDE

5 For expenses of family housing for the activities and 

6 agencies of the Department of Defense (other than the 

7 military departments) for operation and maintenance, 

8 leasing, and minor construction, as authorized by law, 

9 $49,440,000. 

10 DEPARTMENT OF DEFENSE FAMILY HOUSING

11 IMPROVEMENT FUND

12 For the Department of Defense Family Housing Im13 provement Fund, $300,000, to remain available until ex14 pended, for family housing initiatives undertaken pursu15 ant to section 2883 of title 10, United States Code, pro16 viding alternative means of acquiring and improving mili17 tary family housing and supporting facilities. 

18 BASE REALIGNMENT AND CLOSURE ACCOUNT

19 For deposit into the Department of Defense Base 

20 Closure Account 1990 established by section 2906(a)(1) 

21 of the Department of Defense Authorization Act, 1991 

22 (Public Law 101–510), $370,427,000, to remain available 

23 until expended. 
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1 GENERAL PROVISIONS 

2 SEC. 101. None of the funds appropriated in Military 

3 Construction Appropriations Acts shall be expended for 

4 payments under a cost-plus-a-fixed-fee contract for con5 struction, where cost estimates exceed $25,000, to be per6 formed within the United States, except Alaska, without 

7 the specific approval in writing of the Secretary of Defense 

8 setting forth the reasons therefor. 

9 SEC. 102. Funds appropriated to the Department of 

10 Defense for construction shall be available for hire of pas11 senger motor vehicles. 

12 SEC. 103. Funds appropriated to the Department of 

13 Defense for construction may be used for advances to the 

14 Federal Highway Administration, Department of Trans15 portation, for the construction of access roads as author16 ized by section 210 of title 23, United States Code, when 

17 projects authorized therein are certified as important to 

18 the national defense by the Secretary of Defense. 

19 SEC. 104. None of the funds appropriated in this Act 

20 may be used to begin construction of new bases inside the 

21 continental United States for which specific appropria22 tions have not been made. 

23 SEC. 105. No part of the funds provided in Military 

24 Construction Appropriations Acts shall be used for pur25 chase of land or land easements in excess of 100 percent 
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1 of the value as determined by the Army Corps of Engi2 neers or the Naval Facilities Engineering Command, ex3 cept: (1) where there is a determination of value by a Fed4 eral court; (2) purchases negotiated by the Attorney Gen5 eral or his designee; (3) where the estimated value is less 

6 than $25,000; or (4) as otherwise determined by the Sec7 retary of Defense to be in the public interest. 

8 SEC. 106. None of the funds appropriated in Military 

9 Construction Appropriations Acts shall be used to: (1) ac10 quire land; (2) provide for site preparation; or (3) install 

11 utilities for any family housing, except housing for which 

12 funds have been made available in annual Military Con13 struction Appropriations Acts. 

14 SEC. 107. None of the funds appropriated in Military 

15 Construction Appropriations Acts for minor construction 

16 may be used to transfer or relocate any activity from one 

17 base or installation to another, without prior notification 

18 to the Committees on Appropriations. 

19 SEC. 108. No part of the funds appropriated in Mili20 tary Construction Appropriations Acts may be used for 

21 the procurement of steel for any construction project or 

22 activity for which American steel producers, fabricators, 

23 and manufacturers have been denied the opportunity to 

24 compete for such steel procurement. 
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1 SEC. 109. None of the funds available to the Depart2 ment of Defense for military construction or family hous3 ing during the current fiscal year may be used to pay real 

4 property taxes in any foreign nation. 

5 SEC. 110. None of the funds appropriated in Military 

6 Construction Appropriations Acts may be used to initiate 

7 a new installation overseas without prior notification to 

8 the Committees on Appropriations. 

9 SEC. 111. None of the funds appropriated in Military 

10 Construction Appropriations Acts may be obligated for ar11 chitect and engineer contracts estimated by the Govern12 ment to exceed $500,000 for projects to be accomplished 

13 in Japan, in any NATO member country, or in countries 

14 bordering the Arabian Sea, unless such contracts are 

15 awarded to United States firms or United States firms 

16 in joint venture with host nation firms. 

17 SEC. 112. None of the funds appropriated in Military 

18 Construction Appropriations Acts for military construc19 tion in the United States territories and possessions in the 

20 Pacific and on Kwajalein Atoll, or in countries bordering 

21 the Arabian Sea, may be used to award any contract esti22 mated by the Government to exceed $1,000,000 to a for23 eign contractor: Provided, That this section shall not be 

24 applicable to contract awards for which the lowest respon25 sive and responsible bid of a United States contractor ex-
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1 ceeds the lowest responsive and responsible bid of a for2 eign contractor by greater than 20 percent: Provided fur3 ther, That this section shall not apply to contract awards 

4 for military construction on Kwajalein Atoll for which the 

5 lowest responsive and responsible bid is submitted by a 

6 Marshallese contractor. 

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

8 appropriate committees of Congress, including the Com9 mittees on Appropriations, of the plans and scope of any 

10 proposed military exercise involving United States per11 sonnel 30 days prior to its occurring, if amounts expended 

12 for construction, either temporary or permanent, are an13 ticipated to exceed $100,000. 

14 SEC. 114. Not more than 20 percent of the appro15 priations in Military Construction Appropriations Acts 

16 which are limited for obligation during the current fiscal 

17 year shall be obligated during the last 2 months of the 

18 fiscal year. 

19 (TRANSFER OF FUNDS)

20 SEC. 115. Funds appropriated to the Department of 

21 Defense for construction in prior years shall be available 

22 for construction authorized for each such military depart23 ment by the authorizations enacted into law during the 

24 current session of Congress. 

25 SEC. 116. For military construction or family housing 

26 projects that are being completed with funds otherwise ex-
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1 pired or lapsed for obligation, expired or lapsed funds may 

2 be used to pay the cost of associated supervision, inspec3 tion, overhead, engineering and design on those projects 

4 and on subsequent claims, if any. 

5 SEC. 117. Notwithstanding any other provision of 

6 law, any funds appropriated to a military department or 

7 defense agency for the construction of military projects 

8 may be obligated for a military construction project or 

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

10 at any time before the end of the fourth fiscal year after 

11 the fiscal year for which funds for such project were ap12 propriated if the funds obligated for such project: (1) are 

13 obligated from funds available for military construction 

14 projects; and (2) do not exceed the amount appropriated 

15 for such project, plus any amount by which the cost of 

16 such project is increased pursuant to law. 

17 (TRANSFER OF FUNDS)

18 SEC. 118. During the 5-year period after appropria19 tions available to the Department of Defense for military 

20 construction and family housing operation and mainte21 nance and construction have expired for obligation, upon 

22 a determination that such appropriations will not be nec23 essary for the liquidation of obligations or for making au24 thorized adjustments to such appropriations for obliga25 tions incurred during the period of availability of such ap26 propriations, unobligated balances of such appropriations 
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1 may be transferred into the appropriation ‘‘Foreign Cur2 rency Fluctuations, Construction, Defense’’ to be merged 

3 with and to be available for the same time period and for 

4 the same purposes as the appropriation to which trans5 ferred. 

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

7 Committees on Appropriations of the Senate and the 

8 House of Representatives with an annual report by Feb9 ruary 15, containing details of the specific actions pro10 posed to be taken by the Department of Defense during 

11 the current fiscal year to encourage other member nations 

12 of the North Atlantic Treaty Organization, Japan, Korea, 

13 and United States allies bordering the Arabian Sea to as14 sume a greater share of the common defense burden of 

15 such nations and the United States. 

16 (TRANSFER OF FUNDS)

17 SEC. 120. During the current fiscal year, in addition 

18 to any other transfer authority available to the Depart19 ment of Defense, proceeds deposited to the Department 

20 of Defense Base Closure Account established by section 

21 207(a)(1) of the Defense Authorization Amendments and 

22 Base Closure and Realignment Act (Public Law 100–526) 

23 pursuant to section 207(a)(2)(C) of such Act, may be 

24 transferred to the account established by section 

25 2906(a)(1) of the Department of Defense Authorization 
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1 Act, 1991, to be merged with, and to be available for the 

2 same purposes and the same time period as that account. 

3 (TRANSFER OF FUNDS)

4 SEC. 121. Subject to 30 days prior notification to the 

5 Committees on Appropriations, such additional amounts 

6 as may be determined by the Secretary of Defense may 

7 be transferred to the Department of Defense Family 

8 Housing Improvement Fund from amounts appropriated 

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

10 merged with and to be available for the same purposes 

11 and for the same period of time as amounts appropriated 

12 directly to the Fund: Provided, That appropriations made 

13 available to the Fund shall be available to cover the costs, 

14 as defined in section 502(5) of the Congressional Budget 

15 Act of 1974, of direct loans or loan guarantees issued by 

16 the Department of Defense pursuant to the provisions of 

17 subchapter IV of chapter 169, title 10, United States 

18 Code, pertaining to alternative means of acquiring and im19 proving military family housing and supporting facilities. 

20 SEC. 122. None of the funds appropriated or made 

21 available by this Act may be obligated for Partnership for 

22 Peace Programs in the New Independent States of the 

23 former Soviet Union. 

24 (TRANSFER OF FUNDS)

25 SEC. 123. During the current fiscal year, in addition 

26 to any other transfer authority available to the Depart-
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1 ment of Defense, amounts may be transferred from the 

2 account established by section 2906(a)(1) of the Depart3 ment of Defense Authorization Act, 1991, to the fund es4 tablished by section 1013(d) of the Demonstration Cities 

5 and Metropolitan Development Act of 1966 (42 U.S.C. 

6 3374) to pay for expenses associated with the Home7 owners Assistance Program. Any amounts transferred 

8 shall be merged with and be available for the same pur9 poses and for the same time period as the fund to which 

10 transferred. 

11 SEC. 124. Notwithstanding this or any other provi12 sion of law, funds appropriated in Military Construction 

13 Appropriations Acts for operations and maintenance of 

14 family housing shall be the exclusive source of funds for 

15 repair and maintenance of all family housing units, includ16 ing general or flag officer quarters: Provided, That not 

17 more than $35,000 per unit may be spent annually for 

18 the maintenance and repair of any general or flag officer 

19 quarters without 30 days advance prior notification to the 

20 appropriate committees of Congress, except that an after21 the-fact notification shall be submitted if the limitation is 

22 exceeded solely due to costs associated with environmental 

23 remediation that could not be reasonably anticipated at 

24 the time of the budget submission: Provided further, That 

25 the Under Secretary of Defense (Comptroller) is to report 
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1 annually to the Committees on Appropriations all oper2 ations and maintenance expenditures for each individual 

3 general or flag officer quarters for the prior fiscal year. 

4 SEC. 125. None of the funds made available in this 

5 Act may be transferred to any department, agency, or in6 strumentality of the United States Government, except 

7 pursuant to a transfer made by, or transfer authority pro8 vided in, this Act or any other appropriation Act. 

9 SEC. 126. None of the funds appropriated in this Act 

10 for the Department of the Army for military construction 

11 projects in the Republic of Korea may be obligated or ex12 pended for projects at Camp Humphreys in the Republic 

13 of Korea until the Secretary of Defense certifies and re14 ports to the appropriate committees of Congress that the 

15 United States and the Republic of Korea have entered into 

16 an agreement on the availability and use of land sufficient 

17 for such projects. The certification must be presented to 

18 the committees no later than September 30, 2004, or the 

19 funds expire. 

20 This Act may be cited as the ‘‘Military Construction 

21 Appropriations Act, 2004’’. 
Union Calendar No. 88

108TH CONGRESS 

1ST SESSION H. R. 2559

[Report No. 108–173] 

A BILL

Making appropriations for military construction, 

family housing, and base realignment and closure for the Department of Defense for the fiscal year ending September 30, 2004, and for other purposes. 

JUNE 23, 2003

Committed to the Committee of the Whole House on the 

State of the Union and ordered to be printed