II 

Calendar No. 177

108TH CONGRESS 

1ST SESSION H. R. 2559

IN THE SENATE OF THE UNITED STATES 

JUNE 26, 2003

Received; read twice and placed on the calendar 

AN ACT

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,
2

HR 2559 PCS 

1 That the following sums are appropriated, out of any 

2 money in the Treasury not otherwise appropriated for 

3 military construction, family housing, and base realign4 ment and closure functions administered by the Depart5 ment of Defense, for the fiscal year ending September 30, 

6 2004, and for other purposes, namely: 

7 MILITARY CONSTRUCTION, ARMY

8 (INCLUDING RESCISSIONS)

9 For acquisition, construction, installation, and equip10 ment of temporary or permanent public works, military 

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

12 currently authorized by law, including personnel in the 

13 Army Corps of Engineers and other personal services nec14 essary for the purposes of this appropriation, and for con15 struction and operation of facilities in support of the func16 tions of the Commander in Chief, $1,533,660,000, to re17 main available until September 30, 2008: Provided, That 

18 of this amount, not to exceed $122,710,000 shall be avail19 able for study, planning, design, architect and engineer 

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

21 unless the Secretary of Defense determines that additional 

22 obligations are necessary for such purposes and notifies 

23 the Committees on Appropriations of both Houses of Con24 gress of his determination and the reasons therefor: Pro-
3

HR 2559 PCS 

1 vided further, That of the funds appropriated for ‘‘Military 

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

3 $142,200,000 are rescinded: Provided further, That of the 

4 funds appropriated for ‘‘Military Construction, Army’’ 

5 under Public Law 107–64, $24,000,000 are rescinded: 

6 Provided further, That of the funds appropriated for ‘‘Mili7 tary Construction, Army’’ under Public Law 106–246, 

8 $17,415,000 are rescinded. 

9 MILITARY CONSTRUCTION, NAVY

10 (INCLUDING RESCISSIONS)

11 For acquisition, construction, installation, and equip12 ment of temporary or permanent public works, naval in13 stallations, facilities, and real property for the Navy as 

14 currently authorized by law, including personnel in the 

15 Naval Facilities Engineering Command and other per16 sonal services necessary for the purposes of this appropria17 tion, $1,211,077,000, to remain available until September 

18 30, 2008: Provided, That of this amount, not to exceed 

19 $65,612,000 shall be available for study, planning, design, 

20 architect and engineer services, as authorized by law, un21 less the Secretary of Defense determines that additional 

22 obligations are necessary for such purposes and notifies 

23 the Committees on Appropriations of both Houses of Con24 gress of his determination and the reasons therefor: Pro25 vided further, That of the funds appropriated for ‘‘Military 
4

HR 2559 PCS 

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

2 $27,213,000 are rescinded: Provided further, That of the 

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

4 under Public Law 107–64, $12,109,000 are rescinded. 

5 MILITARY CONSTRUCTION, AIR FORCE

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

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

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

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

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

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

13 as authorized by law, unless the Secretary of Defense de14 termines that additional obligations are necessary for such 

15 purposes and notifies the Committees on Appropriations 

16 of both Houses of Congress of his determination and the 

17 reasons therefor. 

18 MILITARY CONSTRUCTION, DEFENSE-WIDE

19 (INCLUDING RESCISSION AND TRANSFER OF FUNDS)

20 For acquisition, construction, installation, and equip21 ment of temporary or permanent public works, installa22 tions, facilities, and real property for activities and agen23 cies of the Department of Defense (other than the military 

24 departments), as currently authorized by law, 

25 $813,613,000, to remain available until September 30, 
5

HR 2559 PCS 

1 2008: Provided, That such amounts of this appropriation 

2 as may be determined by the Secretary of Defense may 

3 be transferred to such appropriations of the Department 

4 of Defense available for military construction or family 

5 housing as he may designate, to be merged with and to 

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

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

8 Provided further, That of the amount appropriated, not 

9 to exceed $63,884,000 shall be available for study, plan10 ning, design, architect and engineer services, as authorized 

11 by law, unless the Secretary of Defense determines that 

12 additional obligations are necessary for such purposes and 

13 notifies the Committees on Appropriations of both Houses 

14 of Congress of his determination and the reasons therefor: 

15 Provided further, That of the funds appropriated for ‘‘Mili16 tary Construction, Defense-wide’’ under Public Law 107–

17 249, $32,680,000 are rescinded. 

18 MILITARY CONSTRUCTION, ARMY NATIONAL GUARD

19 For construction, acquisition, expansion, rehabilita20 tion, and conversion of facilities for the training and ad21 ministration of the Army National Guard, and contribu22 tions therefor, as authorized by chapter 1803 of title 10, 

23 United States Code, and Military Construction Authoriza24 tion Acts, $208,033,000, to remain available until Sep25 tember 30, 2008. 
6

HR 2559 PCS 

1 MILITARY CONSTRUCTION, AIR NATIONAL GUARD

2 For construction, acquisition, expansion, rehabilita3 tion, and conversion of facilities for the training and ad4 ministration of the Air National Guard, and contributions 

5 therefor, as authorized by chapter 1803 of title 10, United 

6 States Code, and Military Construction Authorization 

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

8 30, 2008. 

9 MILITARY CONSTRUCTION, ARMY RESERVE

10 For construction, acquisition, expansion, rehabilita11 tion, and conversion of facilities for the training and ad12 ministration of the Army Reserve as authorized by chapter 

13 1803 of title 10, United States Code, and Military Con14 struction Authorization Acts, $84,569,000, to remain 

15 available until September 30, 2008. 

16 MILITARY CONSTRUCTION, NAVAL RESERVE

17 For construction, acquisition, expansion, rehabilita18 tion, and conversion of facilities for the training and ad19 ministration of the reserve components of the Navy and 

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

21 United States Code, and Military Construction Authoriza22 tion Acts, $38,992,000, to remain available until Sep23 tember 30, 2008. 
7

HR 2559 PCS 

1 MILITARY CONSTRUCTION, AIR FORCE RESERVE

2 For construction, acquisition, expansion, rehabilita3 tion, and conversion of facilities for the training and ad4 ministration of the Air Force Reserve as authorized by 

5 chapter 1803 of title 10, United States Code, and Military 

6 Construction Authorization Acts, $56,212,000, to remain 

7 available until September 30, 2008. 

8 NORTH ATLANTIC TREATY ORGANIZATION

9 SECURITY INVESTMENT PROGRAM

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

11 Atlantic Treaty Organization Security Investment Pro12 gram for the acquisition and construction of military fa13 cilities and installations (including international military 

14 headquarters) and for related expenses for the collective 

15 defense of the North Atlantic Treaty Area as authorized 

16 in Military Construction Authorization Acts and section 

17 2806 of title 10, United States Code, $169,300,000, to 

18 remain available until expended. 

19 FAMILY HOUSING CONSTRUCTION, ARMY

20 (INCLUDING RESCISSION)

21 For expenses of family housing for the Army for con22 struction, including acquisition, replacement, addition, ex23 pansion, extension and alteration, as authorized by law, 

24 $409,191,000, to remain available until September 30, 

25 2008: Provided, That of the funds appropriated for ‘‘Fam-
8

HR 2559 PCS 

1 ily Housing Construction, Army’’ under Public Law 107–

2 249, $52,300,000 are rescinded. 

3 FAMILY HOUSING OPERATION AND MAINTENANCE, 

4 ARMY

5 For expenses of family housing for the Army for op6 eration and maintenance, including debt payment, leasing, 

7 minor construction, principal and interest charges, and in8 surance premiums, as authorized by law, $1,043,026,000. 

9 FAMILY HOUSING CONSTRUCTION, NAVY AND MARINE

10 CORPS

11 (INCLUDING RESCISSION)

12 For expenses of family housing for the Navy and Ma13 rine Corps for construction, including acquisition, replace14 ment, addition, expansion, extension and alteration, as au15 thorized by law, $184,193,000, to remain available until 

16 September 30, 2008: Provided, That of the funds appro17 priated for ‘‘Family Housing Construction, Navy and Ma18 rine Corps’’ under Public Law 107–249, $3,585,000 are 

19 rescinded. 

20 FAMILY HOUSING OPERATION AND MAINTENANCE, 

21 NAVY AND MARINE CORPS

22 For expenses of family housing for the Navy and Ma23 rine Corps for operation and maintenance, including debt 

24 payment, leasing, minor construction, principal and inter-
9

HR 2559 PCS 

1 est charges, and insurance premiums, as authorized by 

2 law, $852,778,000. 

3 FAMILY HOUSING CONSTRUCTION, AIR FORCE

4 (INCLUDING RESCISSIONS)

5 For expenses of family housing for the Air Force for 

6 construction, including acquisition, replacement, addition, 

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

8 $657,065,000, to remain available until September 30, 

9 2008: Provided, That of the funds appropriated for ‘‘Fam10 ily Housing Construction, Air Force’’ under Public Law 

11 107–249, $19,347,000 are rescinded: Provided further,

12 That of the funds appropriated for ‘‘Family Housing Con13 struction, Air Force’’ under Public Law 105–237, 

14 $9,692,000 are rescinded. 

15 FAMILY HOUSING OPERATION AND MAINTENANCE, AIR

16 FORCE

17 For expenses of family housing for the Air Force for 

18 operation and maintenance, including debt payment, leas19 ing, minor construction, principal and interest charges, 

20 and insurance premiums, as authorized by law, 

21 $826,074,000. 

22 FAMILY HOUSING CONSTRUCTION, DEFENSE-WIDE

23 For expenses of family housing for the activities and 

24 agencies of the Department of Defense (other than the 

25 military departments) for construction, including acquisi-
10

HR 2559 PCS 

1 tion, replacement, addition, expansion, extension and al2 teration, as authorized by law, $350,000, to remain avail3 able until September 30, 2008. 

4 FAMILY HOUSING OPERATION AND MAINTENANCE, 

5 DEFENSE-WIDE

6 For expenses of family housing for the activities and 

7 agencies of the Department of Defense (other than the 

8 military departments) for operation and maintenance, 

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

10 $49,440,000. 

11 DEPARTMENT OF DEFENSE FAMILY HOUSING

12 IMPROVEMENT FUND

13 For the Department of Defense Family Housing Im14 provement Fund, $300,000, to remain available until ex15 pended, for family housing initiatives undertaken pursu16 ant to section 2883 of title 10, United States Code, pro17 viding alternative means of acquiring and improving mili18 tary family housing and supporting facilities. 

19 BASE REALIGNMENT AND CLOSURE ACCOUNT

20 For deposit into the Department of Defense Base 

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

22 of the Department of Defense Authorization Act, 1991 

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

24 until expended. 
11

HR 2559 PCS 

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 
12

HR 2559 PCS 

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. 
13

HR 2559 PCS 

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-
14

HR 2559 PCS 

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-
15

HR 2559 PCS 

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 
16

HR 2559 PCS 

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 
17

HR 2559 PCS 

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-
18

HR 2559 PCS 

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 
19

HR 2559 PCS 

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

HR 2559 PCS 

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

2 Appropriations Act, 2004’’.

Passed the House of Representatives June 26, 2003. 

Attest: JEFF TRANDAHL, 

Clerk. 

Calendar No. 177

108TH CONGRESS 

1ST SESSION H. R. 2559

AN ACT

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 26, 2003

Received; read twice and placed on the calendar