U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON : 

1

82–254

" HOUSE OF REPRESENTATIVES ! 107TH CONGRESS

2d Session 

REPORT

2002

107–732

MAKING APPROPRIATIONS FOR THE DEPARTMENT OF DEFENSE FOR THE FISCAL YEAR 

ENDING SEPTEMBER 30, 2003, AND FOR 

OTHER PURPOSES

CONFERENCE REPORT

TO ACCOMPANY

H.R. 5010

OCTOBER 9, 2002.—Ordered to be printed


E:\Seals\Congress.#13
107TH CONGRESS REPORT " HOUSE OF REPRESENTATIVES ! 2d Session 107–732 

MAKING APPROPRIATIONS FOR THE DEPARTMENT OF DEFENSE FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 

2003, AND FOR OTHER PURPOSES

OCTOBER 9, 2002.—Ordered to be printed 

Mr. LEWIS of California, from the committee of confernece, 

submitted the following 

CONFERENCE REPORT 

[To accompany H.R. 5010] 

The committee of conference on the disagreeing votes of the 

two Houses on the amendment of the Senate to the bill (H.R. 5010) 

‘‘making appropriations for the Department of Defense for the fiscal year ending September 30, 2003, 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 the fiscal year ending September 30, 2003, for military functions administered by the Department of Defense, and for other purposes, namely: 

TITLE I 

MILITARY PERSONNEL 

MILITARY PERSONNEL, ARMY

For pay, allowances, individual clothing, subsistence, interest 

on deposits, gratuities, permanent change of station travel (including all expenses thereof for organizational movements), and expenses of temporary duty travel between permanent duty stations, 

for members of the Army on active duty (except members of reserve 

components provided for elsewhere), cadets, and aviation cadets; 

and for payments pursuant to section 156 of Public Law 97–377, as 

2

amended (42 U.S.C. 402 note), and to the Department of Defense 

Military Retirement Fund, $26,855,017,000. 

MILITARY PERSONNEL, NAVY

For pay, allowances, individual clothing, subsistence, interest 

on deposits, gratuities, permanent change of station travel (including all expenses thereof for organizational movements), and expenses of temporary duty travel between permanent duty stations, 

for members of the Navy on active duty (except members of the Reserve provided for elsewhere), midshipmen, and aviation cadets; and 

for payments pursuant to section 156 of Public Law 97–377, as 

amended (42 U.S.C. 402 note), and to the Department of Defense 

Military Retirement Fund, $21,927,628,000. 

MILITARY PERSONNEL, MARINE CORPS

For pay, allowances, individual clothing, subsistence, interest 

on deposits, gratuities, permanent change of station travel (including all expenses thereof for organizational movements), and expenses of temporary duty travel between permanent duty stations, 

for members of the Marine Corps on active duty (except members of 

the Reserve provided for elsewhere); and for payments pursuant to 

section 156 of Public Law 97–377, as amended (42 U.S.C. 402 note), 

and to the Department of Defense Military Retirement Fund, 

$8,501,087,000. 

MILITARY PERSONNEL, AIR FORCE

For pay, allowances, individual clothing, subsistence, interest 

on deposits, gratuities, permanent change of station travel (including all expenses thereof for organizational movements), and expenses of temporary duty travel between permanent duty stations, 

for members of the Air Force on active duty (except members of reserve components provided for elsewhere), cadets, and aviation cadets; and for payments pursuant to section 156 of Public Law 97–

377, as amended (42 U.S.C. 402 note), and to the Department of Defense Military Retirement Fund, $21,981,277,000. 

RESERVE PERSONNEL, ARMY

For pay, allowances, clothing, subsistence, gratuities, travel, 

and related expenses for personnel of the Army Reserve on active 

duty under sections 10211, 10302, and 3038 of title 10, United 

States Code, or while serving on active duty under section 12301(d) 

of title 10, United States Code, in connection with performing duty 

specified in section 12310(a) of title 10, United States Code, or while 

undergoing reserve training, or while performing drills or equivalent duty or other duty, and for members of the Reserve Officers’

Training Corps, and expenses authorized by section 16131 of title 

10, United States Code; and for payments to the Department of Defense Military Retirement Fund, $3,374,355,000. 

RESERVE PERSONNEL, NAVY

For pay, allowances, clothing, subsistence, gratuities, travel, 

and related expenses for personnel of the Navy Reserve on active 

duty under section 10211 of title 10, United States Code, or while 

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serving on active duty under section 12301(d) of title 10, United 

States Code, in connection with performing duty specified in section 

12310(a) of title 10, United States Code, or while undergoing reserve 

training, or while performing drills or equivalent duty, and for 

members of the Reserve Officers’ Training Corps, and expenses authorized by section 16131 of title 10, United States Code; and for 

payments to the Department of Defense Military Retirement Fund, 

$1,907,552,000. 

RESERVE PERSONNEL, MARINE CORPS

For pay, allowances, clothing, subsistence, gratuities, travel, 

and related expenses for personnel of the Marine Corps Reserve on 

active duty under section 10211 of title 10, United States Code, or 

while serving on active duty under section 12301(d) of title 10, 

United States Code, in connection with performing duty specified in 

section 12310(a) of title 10, United States Code, or while undergoing 

reserve training, or while performing drills or equivalent duty, and 

for members of the Marine Corps platoon leaders class, and expenses authorized by section 16131 of title 10, United States Code; 

and for payments to the Department of Defense Military Retirement 

Fund, $553,983,000. 

RESERVE PERSONNEL, AIR FORCE

For pay, allowances, clothing, subsistence, gratuities, travel, 

and related expenses for personnel of the Air Force Reserve on active 

duty under sections 10211, 10305, and 8038 of title 10, United 

States Code, or while serving on active duty under section 12301(d) 

of title 10, United States Code, in connection with performing duty 

specified in section 12310(a) of title 10, United States Code, or while 

undergoing reserve training, or while performing drills or equivalent duty or other duty, and for members of the Air Reserve Officers’

Training Corps, and expenses authorized by section 16131 of title 

10, United States Code; and for payments to the Department of Defense Military Retirement Fund, $1,236,904,000. 

NATIONAL GUARD PERSONNEL, ARMY

For pay, allowances, clothing, subsistence, gratuities, travel, 

and related expenses for personnel of the Army National Guard 

while on duty under section 10211, 10302, or 12402 of title 10 or 

section 708 of title 32, United States Code, or while serving on duty 

under section 12301(d) of title 10 or section 502(f) of title 32, United 

States Code, in connection with performing duty specified in section 

12310(a) of title 10, United States Code, or while undergoing training, or while performing drills or equivalent duty or other duty, and 

expenses authorized by section 16131 of title 10, United States Code; 

and for payments to the Department of Defense Military Retirement 

Fund, $5,114,588,000.

NATIONAL GUARD PERSONNEL, AIR FORCE

For pay, allowances, clothing, subsistence, gratuities, travel, 

and related expenses for personnel of the Air National Guard on 

duty under section 10211, 10305, or 12402 of title 10 or section 708 

of title 32, United States Code, or while serving on duty under secVerDate 0ct 09 2002 14:16 Oct 15, 2002 Jkt 019006 PO 00000 Frm 00005 Fmt 6659 Sfmt 6603 E:\PICKUP\HR732.XXX HR732
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tion 12301(d) of title 10 or section 502(f) of title 32, United States 

Code, in connection with performing duty specified in section 

12310(a) of title 10, United States Code, or while undergoing training, or while performing drills or equivalent duty or other duty, and 

expenses authorized by section 16131 of title 10, United States Code; 

and for payments to the Department of Defense Military Retirement 

Fund, $2,125,161,000. 

TITLE II 

OPERATION AND MAINTENANCE 

OPERATION AND MAINTENANCE, ARMY

(INCLUDING TRANSFER OF FUNDS)

For expenses, not otherwise provided for, necessary for the operation and maintenance of the Army, as authorized by law; and not 

to exceed $10,818,000 can be used for emergencies and extraordinary expenses, to be expended on the approval or authority of the 

Secretary of the Army, and payments may be made on his certificate 

of necessity for confidential military purposes, $23,992,082,000: Provided, That of the funds appropriated in this paragraph, not less 

than $355,000,000 shall be made available only for conventional 

ammunition care and maintenance: Provided further, That of the 

funds made available under this heading, $2,500,000 shall be available for Fort Baker, in accordance with the terms and conditions as 

provided under the heading ‘‘Operation and Maintenance, Army’’, in 

Public Law 107–117. 

OPERATION AND MAINTENANCE, NAVY

For expenses, not otherwise provided for, necessary for the operation and maintenance of the Navy and the Marine Corps, as authorized by law; and not to exceed $4,415,000 can be used for emergencies and extraordinary expenses, to be expended on the approval 

or authority of the Secretary of the Navy, and payments may be 

made on his certificate of necessity for confidential military purposes, $29,331,526,000. 

OPERATION AND MAINTENANCE, MARINE CORPS

For expenses, not otherwise provided for, necessary for the operation and maintenance of the Marine Corps, as authorized by law, 

$3,585,759,000. 

OPERATION AND MAINTENANCE, AIR FORCE

For expenses, not otherwise provided for, necessary for the operation and maintenance of the Air Force, as authorized by law; and 

not to exceed $7,902,000 can be used for emergencies and extraordinary expenses, to be expended on the approval or authority of the 

Secretary of the Air Force, and payments may be made on his certificate of necessity for confidential military purposes, 

$27,339,533,000: Provided, That notwithstanding any other provision of law, that of the funds available under this heading, 

$750,000 shall only be available to the Secretary of the Air Force 

for a grant to Florida Memorial College for the purpose of funding 

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minority aviation training: Provided further, That of the amount 

provided under this heading, $2,000,000 may be obligated for the 

deployment of Air Force active and Reserve aircrews that perform 

combat search and rescue operations to operate and evaluate the 

United Kingdom’s Royal Air Force EH–101 helicopter, to receive 

training using that helicopter, and to exchange operational techniques and procedures regarding that helicopter. 

OPERATION AND MAINTENANCE, DEFENSE-WIDE

(INCLUDING TRANSFER OF FUNDS)

For expenses, not otherwise provided for, necessary for the operation and maintenance of activities and agencies of the Department 

of Defense (other than the military departments), as authorized by 

law, $14,773,506,000, of which not to exceed $25,000,000 may be 

available for the CINC initiative fund account; and of which not to 

exceed $34,500,000 can be used for emergencies and extraordinary 

expenses, to be expended on the approval or authority of the Secretary of Defense, and payments may be made on his certificate of 

necessity for confidential military purposes: Provided, That notwithstanding any other provision of law, of the funds provided in this 

Act for Civil Military programs under this heading, $750,000 shall 

be available for a grant for Outdoor Odyssey, Roaring Run, Pennsylvania, to support the Youth Development and Leadership program and Department of Defense STARBASE program: Provided 

further, That none of the funds appropriated or otherwise made 

available by this Act may be used to plan or implement the consolidation of a budget or appropriations liaison office of the Office of 

the Secretary of Defense, the office of the Secretary of a military department, or the service headquarters of one of the Armed Forces 

into a legislative affairs or legislative liaison office: Provided further, That $4,675,000, to remain available until expended, is available only for expenses relating to certain classified activities, and 

may be transferred as necessary by the Secretary to operation and 

maintenance appropriations or research, development, test and evaluation appropriations, to be merged with and to be available for the 

same time period as the appropriations to which transferred: Provided further, That any ceiling on the investment item unit cost of 

items that may be purchased with operation and maintenance funds 

shall not apply to the funds described in the preceding proviso: Provided further, That the transfer authority provided under this heading is in addition to any other transfer authority provided elsewhere 

in this Act. 

OPERATION AND MAINTENANCE, ARMY RESERVE

For expenses, not otherwise provided for, necessary for the operation and maintenance, including training, organization, and administration, of the Army Reserve; repair of facilities and equipment; hire of passenger motor vehicles; travel and transportation; 

care of the dead; recruiting; procurement of services, supplies, and 

equipment; and communications, $1,970,180,000.

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OPERATION AND MAINTENANCE, NAVY RESERVE

For expenses, not otherwise provided for, necessary for the operation and maintenance, including training, organization, and administration, of the Navy Reserve; repair of facilities and equipment; hire of passenger motor vehicles; travel and transportation; 

care of the dead; recruiting; procurement of services, supplies, and 

equipment; and communications, $1,236,809,000. 

OPERATION AND MAINTENANCE, MARINE CORPS RESERVE

For expenses, not otherwise provided for, necessary for the operation and maintenance, including training, organization, and administration, of the Marine Corps Reserve; repair of facilities and 

equipment; hire of passenger motor vehicles; travel and transportation; care of the dead; recruiting; procurement of services, supplies, and equipment; and communications, $187,532,000. 

OPERATION AND MAINTENANCE, AIR FORCE RESERVE

For expenses, not otherwise provided for, necessary for the operation and maintenance, including training, organization, and administration, of the Air Force Reserve; repair of facilities and equipment; hire of passenger motor vehicles; travel and transportation; 

care of the dead; recruiting; procurement of services, supplies, and 

equipment; and communications, $2,163,104,000. 

OPERATION AND MAINTENANCE, ARMY NATIONAL GUARD

For expenses of training, organizing, and administering the 

Army National Guard, including medical and hospital treatment 

and related expenses in non-Federal hospitals; maintenance, operation, and repairs to structures and facilities; hire of passenger 

motor vehicles; personnel services in the National Guard Bureau; 

travel expenses (other than mileage), as authorized by law for Army 

personnel on active duty, for Army National Guard division, regimental, and battalion commanders while inspecting units in compliance with National Guard Bureau regulations when specifically 

authorized by the Chief, National Guard Bureau; supplying and 

equipping the Army National Guard as authorized by law; and expenses of repair, modification, maintenance, and issue of supplies 

and equipment (including aircraft), $4,261,707,000. 

OPERATION AND MAINTENANCE, AIR NATIONAL GUARD

For operation and maintenance of the Air National Guard, including medical and hospital treatment and related expenses in 

non-Federal hospitals; maintenance, operation, repair, and other 

necessary expenses of facilities for the training and administration 

of the Air National Guard, including repair of facilities, maintenance, operation, and modification of aircraft; transportation of 

things, hire of passenger motor vehicles; supplies, materials, and 

equipment, as authorized by law for the Air National Guard; and 

expenses incident to the maintenance and use of supplies, materials, 

and equipment, including such as may be furnished from stocks 

under the control of agencies of the Department of Defense; travel 

expenses (other than mileage) on the same basis as authorized by 

law for Air National Guard personnel on active Federal duty, for 

7

Air National Guard commanders while inspecting units in compliance with National Guard Bureau regulations when specifically authorized by the Chief, National Guard Bureau, $4,117,585,000. 

OVERSEAS CONTINGENCY OPERATIONS TRANSFER ACCOUNT

(INCLUDING TRANSFER OF FUNDS)

For expenses directly relating to Overseas Contingency Oper- ations by United States military forces, $5,000,000, to remain available until expended: Provided, That the Secretary of Defense may 

transfer these funds only to military personnel accounts; operation 

and maintenance accounts within this title; the Defense Health Program appropriation; procurement accounts; research, development, 

test and evaluation accounts; and to working capital funds: Provided further, That the funds transferred shall be merged with and 

shall be available for the same purposes and for the same time period, as the appropriation to which transferred: Provided further, 

That upon a determination that all or part of the funds transferred 

from this appropriation are not necessary for the purposes provided 

herein, such amounts may be transferred back to this appropriation: 

Provided further, That the transfer authority provided in this paragraph is in addition to any other transfer authority contained elsewhere in this Act. 

UNITED STATES COURT OF APPEALS FOR THE ARMED FORCES

For salaries and expenses necessary for the United States Court of Appeals for the Armed Forces, $9,614,000, of which not to exceed 

$2,500 can be used for official representation purposes. 

ENVIRONMENTAL RESTORATION, ARMY

(INCLUDING TRANSFER OF FUNDS)

For the Department of the Army, $395,900,000, to remain available until transferred: Provided, That the Secretary of the Army 

shall, upon determining that such funds are required for environmental restoration, reduction and recycling of hazardous waste, removal of unsafe buildings and debris of the Department of the 

Army, or for similar purposes, transfer the funds made available by 

this appropriation to other appropriations made available to the Department of the Army, to be merged with and to be available for the 

same purposes and for the same time period as the appropriations 

to which transferred: Provided further, That upon a determination 

that all or part of the funds transferred from this appropriation are 

not necessary for the purposes provided herein, such amounts may 

be transferred back to this appropriation. 

ENVIRONMENTAL RESTORATION, NAVY

(INCLUDING TRANSFER OF FUNDS)

For the Department of the Navy, $256,948,000, to remain available until transferred: Provided, That the Secretary of the Navy 

shall, upon determining that such funds are required for environmental restoration, reduction and recycling of hazardous waste, removal of unsafe buildings and debris of the Department of the 

Navy, or for similar purposes, transfer the funds made available by 

8

this appropriation to other appropriations made available to the Department of the Navy, to be merged with and to be available for the 

same purposes and for the same time period as the appropriations 

to which transferred: Provided further, That upon a determination 

that all or part of the funds transferred from this appropriation are 

not necessary for the purposes provided herein, such amounts may 

be transferred back to this appropriation.

ENVIRONMENTAL RESTORATION, AIR FORCE

(INCLUDING TRANSFER OF FUNDS)

For the Department of the Air Force, $389,773,000, to remain 

available until transferred: Provided, That the Secretary of the Air 

Force shall, upon determining that such funds are required for environmental restoration, reduction and recycling of hazardous waste, 

removal of unsafe buildings and debris of the Department of the Air 

Force, or for similar purposes, transfer the funds made available by 

this appropriation to other appropriations made available to the Department of the Air Force, to be merged with and to be available 

for the same purposes and for the same time period as the appropriations to which transferred: Provided further, That upon a determination that all or part of the funds transferred from this appropriation are not necessary for the purposes provided herein, such 

amounts may be transferred back to this appropriation. 

ENVIRONMENTAL RESTORATION, DEFENSE-WIDE

(INCLUDING TRANSFER OF FUNDS)

For the Department of Defense, $23,498,000, to remain available until transferred: Provided, That the Secretary of Defense shall, 

upon determining that such funds are required for environmental 

restoration, reduction and recycling of hazardous waste, removal of 

unsafe buildings and debris of the Department of Defense, or for 

similar purposes, transfer the funds made available by this appropriation to other appropriations made available to the Department 

of Defense, to be merged with and to be available for the same purposes and for the same time period as the appropriations to which 

transferred: Provided further, That upon a determination that all or 

part of the funds transferred from this appropriation are not necessary for the purposes provided herein, such amounts may be 

transferred back to this appropriation. 

ENVIRONMENTAL RESTORATION, FORMERLY USED DEFENSE SITES

(INCLUDING TRANSFER OF FUNDS)

For the Department of the Army, $246,102,000, to remain available until transferred: Provided, That the Secretary of the Army 

shall, upon determining that such funds are required for environmental restoration, reduction and recycling of hazardous waste, removal of unsafe buildings and debris at sites formerly used by the 

Department of Defense, transfer the funds made available by this 

appropriation to other appropriations made available to the Department of the Army, to be merged with and to be available for the 

same purposes and for the same time period as the appropriations 

to which transferred: Provided further, That upon a determination 

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that all or part of the funds transferred from this appropriation are 

not necessary for the purposes provided herein, such amounts may 

be transferred back to this appropriation. 

OVERSEAS HUMANITARIAN, DISASTER, AND CIVIC AID

For expenses relating to the Overseas Humanitarian, Disaster, 

and Civic Aid programs of the Department of Defense (consisting of 

the programs provided under sections 401, 402, 404, 2547, and 2551 

of title 10, United States Code), $58,400,000, to remain available 

until September 30, 2004. 

FORMER SOVIET UNION THREAT REDUCTION

For assistance to the republics of the former Soviet Union, including assistance provided by contract or by grants, for facilitating 

the elimination and the safe and secure transportation and storage 

of nuclear, chemical and other weapons; for establishing programs 

to prevent the proliferation of weapons, weapons components, and 

weapon-related technology and expertise; for programs relating to 

the training and support of defense and military personnel for demilitarization and protection of weapons, weapons components and 

weapons technology and expertise, and for defense and military contacts, $416,700,000, to remain available until September 30, 2005: 

Provided, That of the amounts provided under this heading, 

$10,000,000 shall be available only to support the dismantling and 

disposal of nuclear submarines and submarine reactor components 

in the Russian Far East. 

SUPPORT FOR INTERNATIONAL SPORTING COMPETITIONS, DEFENSE

For logistical and security support for international sporting 

competitions (including pay and non-travel related allowances only 

for members of the Reserve Components of the Armed Forces of the 

United States called or ordered to active duty in connection with 

providing such support), $19,000,000, to remain available until expended.

TITLE III 

PROCUREMENT 

AIRCRAFT PROCUREMENT, ARMY

For construction, procurement, production, modification, and 

modernization of aircraft, equipment, including ordnance, ground 

handling equipment, spare parts, and accessories therefor; specialized equipment and training devices; expansion of public and private plants, including the land necessary therefor, for the foregoing 

purposes, and such lands and interests therein, may be acquired, 

and construction prosecuted thereon prior to approval of title; and 

procurement and installation of equipment, appliances, and machine tools in public and private plants; reserve plant and Government and contractor-owned equipment layaway; and other expenses 

necessary for the foregoing purposes, $2,285,574,000, to remain 

available for obligation until September 30, 2005: Provided, That of 

the funds made available under this heading, $39,100,000 shall be 

available only to support a restructured CH–47F helicopter upgrade 

10

program for the full fleet to facilitate increases in the planned production rate to an economically optimal rate by fiscal year 2005: 

Provided further, That funds in the immediately preceding proviso 

shall not be made available until the Secretary of the Army has certified to the congressional defense committees that the Army intends 

to budget for the upgrade of the entire CH–47 fleet required for the 

Objective Force at economically optimal production rates in order to 

complete this program within ten years after it is initiated. 

MISSILE PROCUREMENT, ARMY

For construction, procurement, production, modification, and 

modernization of missiles, equipment, including ordnance, ground 

handling equipment, spare parts, and accessories therefor; specialized equipment and training devices; expansion of public and private plants, including the land necessary therefor, for the foregoing 

purposes, and such lands and interests therein, may be acquired, 

and construction prosecuted thereon prior to approval of title; and 

procurement and installation of equipment, appliances, and machine tools in public and private plants; reserve plant and Government and contractor-owned equipment layaway; and other expenses 

necessary for the foregoing purposes, $1,096,548,000, to remain 

available for obligation until September 30, 2005. 

PROCUREMENT OF WEAPONS AND TRACKED COMBAT VEHICLES, 

ARMY

For construction, procurement, production, and modification of 

weapons and tracked combat vehicles, equipment, including ordnance, spare parts, and accessories therefor; specialized equipment 

and training devices; expansion of public and private plants, including the land necessary therefor, for the foregoing purposes, and 

such lands and interests therein, may be acquired, and construction 

prosecuted thereon prior to approval of title; and procurement and 

installation of equipment, appliances, and machine tools in public 

and private plants; reserve plant and Government and contractorowned equipment layaway; and other expenses necessary for the 

foregoing purposes, $2,266,508,000, to remain available for obligation until September 30, 2005. 

PROCUREMENT OF AMMUNITION, ARMY

For construction, procurement, production, and modification of 

ammunition, and accessories therefor; specialized equipment and 

training devices; expansion of public and private plants, including 

ammunition facilities authorized by section 2854 of title 10, United 

States Code, and the land necessary therefor, for the foregoing purposes, and such lands and interests therein, may be acquired, and 

construction prosecuted thereon prior to approval of title; and procurement and installation of equipment, appliances, and machine 

tools in public and private plants; reserve plant and Government 

and contractor-owned equipment layaway; and other expenses necessary for the foregoing purposes, $1,253,099,000, to remain available for obligation until September 30, 2005. 

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OTHER PROCUREMENT, ARMY

For construction, procurement, production, and modification of 

vehicles, including tactical, support, and non-tracked combat vehicles; the purchase of passenger motor vehicles for replacement only; 

and the purchase of 6 vehicles required for physical security of personnel, notwithstanding price limitations applicable to passenger 

vehicles but not to exceed $180,000 per vehicle; communications and 

electronic equipment; other support equipment; spare parts, ordnance, and accessories therefor; specialized equipment and training 

devices; expansion of public and private plants, including the land 

necessary therefor, for the foregoing purposes, and such lands and 

interests therein, may be acquired, and construction prosecuted 

thereon prior to approval of title; and procurement and installation 

of equipment, appliances, and machine tools in public and private 

plants; reserve plant and Government and contractor-owned equipment layaway; and other expenses necessary for the foregoing purposes, $5,874,674,000, to remain available for obligation until September 30, 2005. 

AIRCRAFT PROCUREMENT, NAVY

For construction, procurement, production, modification, and 

modernization of aircraft, equipment, including ordnance, spare 

parts, and accessories therefor; specialized equipment; expansion of 

public and private plants, including the land necessary therefor, 

and such lands and interests therein, may be acquired, and construction prosecuted thereon prior to approval of title; and procurement and installation of equipment, appliances, and machine tools 

in public and private plants; reserve plant and Government and 

contractor-owned equipment layaway, $8,812,855,000, to remain 

available for obligation until September 30, 2005. 

WEAPONS PROCUREMENT, NAVY

For construction, procurement, production, modification, and 

modernization of missiles, torpedoes, other weapons, and related 

support equipment including spare parts, and accessories therefor; 

expansion of public and private plants, including the land necessary 

therefor, and such lands and interests therein, may be acquired, 

and construction prosecuted thereon prior to approval of title; and 

procurement and installation of equipment, appliances, and machine tools in public and private plants; reserve plant and Government and contractor-owned equipment layaway, $1,868,517,000, to 

remain available for obligation until September 30, 2005.

PROCUREMENT OF AMMUNITION, NAVY AND MARINE CORPS

For construction, procurement, production, and modification of 

ammunition, and accessories therefor; specialized equipment and 

training devices; expansion of public and private plants, including 

ammunition facilities authorized by section 2854 of title 10, United 

States Code, and the land necessary therefor, for the foregoing purposes, and such lands and interests therein, may be acquired, and 

construction prosecuted thereon prior to approval of title; and procurement and installation of equipment, appliances, and machine 

tools in public and private plants; reserve plant and Government 

12

and contractor-owned equipment layaway; and other expenses necessary for the foregoing purposes, $1,165,730,000, to remain available for obligation until September 30, 2005. 

SHIPBUILDING AND CONVERSION, NAVY

For expenses necessary for the construction, acquisition, or conversion of vessels as authorized by law, including armor and armament thereof, plant equipment, appliances, and machine tools and 

installation thereof in public and private plants; reserve plant and 

Government and contractor-owned equipment layaway; procurement 

of critical, long leadtime components and designs for vessels to be 

constructed or converted in the future; and expansion of public and 

private plants, including land necessary therefor, and such lands 

and interests therein, may be acquired, and construction prosecuted 

thereon prior to approval of title, as follows: 

Carrier Replacement Program, $90,000,000; 

Carrier Replacement Program (AP), $403,703,000; 

NSSN, $1,499,152,000; 

NSSN (AP), $645,209,000; 

SSGN, $404,305,000; 

SSGN (AP), $421,000,000; 

CVN Refuelings (AP), $221,781,000; 

Submarine Refuelings, $435,792,000; 

Submarine Refuelings (AP), $64,000,000; 

DDG–51 Destroyer, $2,321,502,000; 

LPD–17, $596,492,000; 

LHD–8, $243,000,000; 

LCAC Landing Craft Air Cushion, $89,638,000; 

Mine Hunter SWATH, $7,000,000; 

Prior year shipbuilding costs, $1,279,899,000; 

Service Craft, $9,756,000; and 

For outfitting, post delivery, conversions, and first destination transportation, $300,608,000;

In all: $9,032,837,000, to remain available for obligation until 

September 30, 2007: Provided, That additional obligations may be 

incurred after September 30, 2007, for engineering services, tests, 

evaluations, and other such budgeted work that must be performed 

in the final stage of ship construction: Provided further, That none 

of the funds provided under this heading for the construction or 

conversion of any naval vessel to be constructed in shipyards in the 

United States shall be expended in foreign facilities for the construction of major components of such vessel: Provided further, That 

none of the funds provided under this heading shall be used for the 

construction of any naval vessel in foreign shipyards. 

OTHER PROCUREMENT, NAVY

For procurement, production, and modernization of support 

equipment and materials not otherwise provided for, Navy ordnance 

(except ordnance for new aircraft, new ships, and ships authorized 

for conversion); the purchase of passenger motor vehicles for replacement only, and the purchase of 3 vehicles required for physical security of personnel, notwithstanding price limitations applicable to 

passenger vehicles but not to exceed $240,000 per unit for one unit 

and not to exceed $125,000 per unit for the remaining two units; exVerDate 0ct 09 2002 14:16 Oct 15, 2002 Jkt 019006 PO 00000 Frm 00014 Fmt 6659 Sfmt 6603 E:\PICKUP\HR732.XXX HR732
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pansion of public and private plants, including the land necessary 

therefor, and such lands and interests therein, may be acquired, 

and construction prosecuted thereon prior to approval of title; and 

procurement and installation of equipment, appliances, and machine tools in public and private plants; reserve plant and Government and contractor-owned equipment layaway, $4,612,910,000, to 

remain available for obligation until September 30, 2005. 

PROCUREMENT, MARINE CORPS

For expenses necessary for the procurement, manufacture, and 

modification of missiles, armament, military equipment, spare 

parts, and accessories therefor; plant equipment, appliances, and 

machine tools, and installation thereof in public and private plants; 

reserve plant and Government and contractor-owned equipment layaway; vehicles for the Marine Corps, including the purchase of passenger motor vehicles for replacement only; and expansion of public 

and private plants, including land necessary therefor, and such 

lands and interests therein, may be acquired, and construction prosecuted thereon prior to approval of title, $1,388,583,000, to remain 

available for obligation until September 30, 2005. 

AIRCRAFT PROCUREMENT, AIR FORCE

For construction, procurement, lease, and modification of aircraft and equipment, including armor and armament, specialized 

ground handling equipment, and training devices, spare parts, and 

accessories therefor; specialized equipment; expansion of public and 

private plants, Government-owned equipment and installation 

thereof in such plants, erection of structures, and acquisition of 

land, for the foregoing purposes, and such lands and interests therein, may be acquired, and construction prosecuted thereon prior to 

approval of title; reserve plant and Government and contractorowned equipment layaway; and other expenses necessary for the 

foregoing purposes including rents and transportation of things, 

$13,137,255,000, to remain available for obligation until September 

30, 2005: Provided, That amounts provided under this heading 

shall be used for the advance procurement of 15 C–17 aircraft. 

MISSILE PROCUREMENT, AIR FORCE

For construction, procurement, and modification of missiles, 

spacecraft, rockets, and related equipment, including spare parts 

and accessories therefor, ground handling equipment, and training 

devices; expansion of public and private plants, Government-owned 

equipment and installation thereof in such plants, erection of structures, and acquisition of land, for the foregoing purposes, and such 

lands and interests therein, may be acquired, and construction prosecuted thereon prior to approval of title; reserve plant and Government and contractor-owned equipment layaway; and other expenses 

necessary for the foregoing purposes including rents and transportation of things, $3,174,739,000, to remain available for obligation 

until September 30, 2005. 

14

PROCUREMENT OF AMMUNITION, AIR FORCE

For construction, procurement, production, and modification of 

ammunition, and accessories therefor; specialized equipment and 

training devices; expansion of public and private plants, including 

ammunition facilities authorized by section 2854 of title 10, United 

States Code, and the land necessary therefor, for the foregoing purposes, and such lands and interests therein, may be acquired, and 

construction prosecuted thereon prior to approval of title; and procurement and installation of equipment, appliances, and machine 

tools in public and private plants; reserve plant and Government 

and contractor-owned equipment layaway; and other expenses necessary for the foregoing purposes, $1,288,164,000, to remain available for obligation until September 30, 2005. 

OTHER PROCUREMENT, AIR FORCE

For procurement and modification of equipment (including 

ground guidance and electronic control equipment, and ground electronic and communication equipment), and supplies, materials, and 

spare parts therefor, not otherwise provided for; the purchase of passenger motor vehicles for replacement only, and the purchase of 2 

vehicles required for physical security of personnel, notwithstanding 

price limitations applicable to passenger vehicles but not to exceed 

$232,000 per vehicle; lease of passenger motor vehicles; and expansion of public and private plants, Government-owned equipment 

and installation thereof in such plants, erection of structures, and 

acquisition of land, for the foregoing purposes, and such lands and 

interests therein, may be acquired, and construction prosecuted 

thereon, prior to approval of title; reserve plant and Government 

and contractor-owned equipment layaway, $10,672,712,000, to remain available for obligation until September 30, 2005. 

PROCUREMENT, DEFENSE-WIDE

For expenses of activities and agencies of the Department of Defense (other than the military departments) necessary for procurement, production, and modification of equipment, supplies, materials, and spare parts therefor, not otherwise provided for; the purchase of passenger motor vehicles for replacement only; the purchase 

of 4 vehicles required for physical security of personnel, notwithstanding price limitations applicable to passenger vehicles but not 

to exceed $250,000 per vehicle; expansion of public and private 

plants, equipment, and installation thereof in such plants, erection 

of structures, and acquisition of land for the foregoing purposes, 

and such lands and interests therein, may be acquired, and construction prosecuted thereon prior to approval of title; reserve plant 

and Government and contractor-owned equipment layaway, 

$3,444,455,000, to remain available for obligation until September 

30, 2005. 

NATIONAL GUARD AND RESERVE EQUIPMENT

For procurement of aircraft, missiles, tracked combat vehicles, 

ammunition, other weapons, and other procurement for the reserve 

components of the Armed Forces, $100,000,000, to remain available 

for obligation until September 30, 2005: Provided, That the Chiefs 

15

of the Reserve and National Guard components shall, not later than 

30 days after the enactment of this Act, individually submit to the 

congressional defense committees the modernization priority assessment for their respective Reserve or National Guard component. 

DEFENSE PRODUCTION ACT PURCHASES

For activities by the Department of Defense pursuant to sections 

108, 301, 302, and 303 of the Defense Production Act of 1950 (50 

U.S.C. App. 2078, 2091, 2092, and 2093), $73,057,000, to remain 

available until expended, of which, $5,000,000 may be used for a 

Processable Rigid-Rod Polymeric Material Supplier Initiative under 

title III of the Defense Production Act of 1950 (50 U.S.C. App. 2091 

et seq.) to develop affordable production methods and a domestic 

supplier for military and commercial processable rigid-rod polymeric materials.

TITLE IV 

RESEARCH, DEVELOPMENT, TEST AND EVALUATION 

RESEARCH, DEVELOPMENT, TEST AND EVALUATION, ARMY

For expenses necessary for basic and applied scientific research, 

development, test and evaluation, including maintenance, rehabilitation, lease, and operation of facilities and equipment, 

$7,669,656,000, to remain available for obligation until September 

30, 2004. 

RESEARCH, DEVELOPMENT, TEST AND EVALUATION, NAVY

For expenses necessary for basic and applied scientific research, 

development, test and evaluation, including maintenance, rehabilitation, lease, and operation of facilities and equipment, 

$13,946,085,000, to remain available for obligation until September 

30, 2004: Provided, That funds appropriated in this paragraph 

which are available for the V–22 may be used to meet unique operational requirements of the Special Operations Forces. 

RESEARCH, DEVELOPMENT, TEST AND EVALUATION, AIR FORCE

For expenses necessary for basic and applied scientific research, 

development, test and evaluation, including maintenance, rehabilitation, lease, and operation of facilities and equipment, 

$18,822,569,000, to remain available for obligation until September 

30, 2004. 

RESEARCH, DEVELOPMENT, TEST AND EVALUATION, DEFENSE-WIDE

For expenses of activities and agencies of the Department of Defense (other than the military departments), necessary for basic and 

applied scientific research, development, test and evaluation; advanced research projects as may be designated and determined by 

the Secretary of Defense, pursuant to law; maintenance, rehabilitation, lease, and operation of facilities and equipment, 

$17,924,642,000, to remain available for obligation until September 

30, 2004. 

16

OPERATIONAL TEST AND EVALUATION, DEFENSE

For expenses, not otherwise provided for, necessary for the independent activities of the Director, Operational Test and Evaluation, 

in the direction and supervision of operational test and evaluation, 

including initial operational test and evaluation which is conducted 

prior to, and in support of, production decisions; joint operational 

testing and evaluation; and administrative expenses in connection 

therewith, $245,554,000, to remain available for obligation until 

September 30, 2004.

TITLE V 

REVOLVING AND MANAGEMENT FUNDS 

DEFENSE WORKING CAPITAL FUNDS

For the Defense Working Capital Funds, $1,784,956,000: Provided, That during fiscal year 2003, funds in the Defense Working 

Capital Funds may be used for the purchase of not to exceed 315 

passenger carrying motor vehicles for replacement only for the Defense Security Service, and the purchase of not to exceed 7 vehicles 

for replacement only for the Defense Logistics Agency. 

NATIONAL DEFENSE SEALIFT FUND

For National Defense Sealift Fund programs, projects, and activities, and for expenses of the National Defense Reserve Fleet, as 

established by section 11 of the Merchant Ship Sales Act of 1946 (50 

U.S.C. App. 1744), and for the necessary expenses to maintain and 

preserve a U.S.-flag merchant fleet to serve the national security 

needs of the United States, $942,629,000, to remain available until 

expended: Provided, That none of the funds provided in this paragraph shall be used to award a new contract that provides for the 

acquisition of any of the following major components unless such 

components are manufactured in the United States: auxiliary equipment, including pumps, for all shipboard services; propulsion system components (that is; engines, reduction gears, and propellers); 

shipboard cranes; and spreaders for shipboard cranes: Provided further, That the exercise of an option in a contract awarded through 

the obligation of previously appropriated funds shall not be considered to be the award of a new contract: Provided further, That the 

Secretary of the military department responsible for such procurement may waive the restrictions in the first proviso on a case-bycase basis by certifying in writing to the Committees on Appropriations of the House of Representatives and the Senate that adequate 

domestic supplies are not available to meet Department of Defense 

requirements on a timely basis and that such an acquisition must 

be made in order to acquire capability for national security purposes: Provided further, That, notwithstanding any other provision 

of law, $8,500,000 of the funds available under this heading shall 

be available in addition to other amounts otherwise available, only 

to finance the cost of constructing additional sealift capacity.

17

TITLE VI 

OTHER DEPARTMENT OF DEFENSE PROGRAMS 

DEFENSE HEALTH PROGRAM

For expenses, not otherwise provided for, for medical and health 

care programs of the Department of Defense, as authorized by law, 

$14,843,542,000, of which $14,100,386,000 shall be for Operation 

and maintenance, of which not to exceed 2 percent shall remain 

available until September 30, 2004; of which $284,242,000, to remain available for obligation until September 30, 2005, shall be for 

Procurement; of which $458,914,000, to remain available for obligation until September 30, 2004, shall be for Research, development, 

test and evaluation, and of which not less than $7,000,000 shall be 

available for HIV prevention educational activities undertaken in 

connection with U.S. military training, exercises, and humanitarian 

assistance activities conducted primarily in African nations. 

CHEMICAL AGENTS AND MUNITIONS DESTRUCTION, ARMY

For expenses, not otherwise provided for, necessary for the destruction of the United States stockpile of lethal chemical agents 

and munitions in accordance with the provisions of section 1412 of 

the Department of Defense Authorization Act, 1986 (50 U.S.C. 

1521), and for the destruction of other chemical warfare materials 

that are not in the chemical weapon stockpile, $1,490,199,000, of 

which $974,238,000 shall be for Operation and maintenance to remain available until September 30, 2004, $213,278,000 shall be for 

Procurement to remain available until September 30, 2005, and 

$302,683,000 shall be for Research, development, test and evaluation to remain available until September 30, 2004. 

DRUG INTERDICTION AND COUNTER-DRUG ACTIVITIES, DEFENSE

(INCLUDING TRANSFER OF FUNDS)

For drug interdiction and counter-drug activities of the Department of Defense, for transfer to appropriations available to the Department of Defense for military personnel of the reserve components 

serving under the provisions of title 10 and title 32, United States 

Code; for Operation and maintenance; for Procurement; and for Research, development, test and evaluation, $881,907,000: Provided, 

That the funds appropriated under this heading shall be available 

for obligation for the same time period and for the same purpose as 

the appropriation to which transferred: Provided further, That upon 

a determination that all or part of the funds transferred from this 

appropriation are not necessary for the purposes provided herein, 

such amounts may be transferred back to this appropriation: Provided further, That the transfer authority provided under this heading is in addition to any other transfer authority contained elsewhere in this Act. 

OFFICE OF THE INSPECTOR GENERAL

For expenses and activities of the Office of the Inspector General 

in carrying out the provisions of the Inspector General Act of 1978, 

as amended, $157,165,000, of which $155,165,000 shall be for OperVerDate 0ct 09 2002 14:16 Oct 15, 2002 Jkt 019006 PO 00000 Frm 00019 Fmt 6659 Sfmt 6603 E:\PICKUP\HR732.XXX HR732
18

ation and maintenance, of which not to exceed $700,000 is available 

for emergencies and extraordinary expenses to be expended on the 

approval or authority of the Inspector General, and payments may 

be made on the Inspector General’s certificate of necessity for confidential military purposes; and of which $2,000,000 to remain 

available until September 30, 2005, shall be for Procurement.

TITLE VII 

RELATED AGENCIES 

CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY

SYSTEM FUND

For payment to the Central Intelligence Agency Retirement and 

Disability System Fund, to maintain the proper funding level for 

continuing the operation of the Central Intelligence Agency Retirement and Disability System, $222,500,000. 

INTELLIGENCE COMMUNITY MANAGEMENT ACCOUNT

(INCLUDING TRANSFER OF FUNDS)

For necessary expenses of the Intelligence Community Management Account, $163,479,000, of which $24,252,000 for the Advanced 

Research and Development Committee shall remain available until 

September 30, 2004: Provided, That of the funds appropriated 

under this heading, $34,100,000 shall be transferred to the Department of Justice for the National Drug Intelligence Center to support 

the Department of Defense’s counter-drug intelligence responsibilities, and of the said amount, $1,500,000 for Procurement shall remain available until September 30, 2005 and $1,000,000 for Research, development, test and evaluation shall remain available 

until September 30, 2004: Provided further, That the National Drug 

Intelligence Center shall maintain the personnel and technical resources to provide timely support to law enforcement authorities and 

the intelligence community by conducting document and computer 

exploitation of materials collected in Federal, State, and local law 

enforcement activity associated with counter-drug, counter-terrorism, and national security investigations and operations. 

PAYMENT TO KAHO’OLAWE ISLAND CONVEYANCE, REMEDIATION, AND

ENVIRONMENTAL RESTORATION FUND

For payment to Kaho’olawe Island Conveyance, Remediation, 

and Environmental Restoration Fund, as authorized by law, 

$75,000,000, to remain available until expended. 

NATIONAL SECURITY EDUCATION TRUST FUND

For the purposes of title VIII of Public Law 102–183, 

$8,000,000, to be derived from the National Security Education 

Trust Fund, to remain available until expended.

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TITLE VIII 

GENERAL PROVISIONS 

SEC. 8001. No part of any appropriation contained in this Act 

shall be used for publicity or propaganda purposes not authorized 

by the Congress. 

SEC. 8002. During the current fiscal year, provisions of law prohibiting the payment of compensation to, or employment of, any person not a citizen of the United States shall not apply to personnel 

of the Department of Defense: Provided, That salary increases 

granted to direct and indirect hire foreign national employees of the 

Department of Defense funded by this Act shall not be at a rate in 

excess of the percentage increase authorized by law for civilian employees of the Department of Defense whose pay is computed under 

the provisions of section 5332 of title 5, United States Code, or at 

a rate in excess of the percentage increase provided by the appropriate host nation to its own employees, whichever is higher: Provided further, That this section shall not apply to Department of Defense foreign service national employees serving at United States 

diplomatic missions whose pay is set by the Department of State 

under the Foreign Service Act of 1980: Provided further, That the 

limitations of this provision shall not apply to foreign national employees of the Department of Defense in the Republic of Turkey. 

SEC. 8003. No part of any appropriation contained in this Act 

shall remain available for obligation beyond the current fiscal year, 

unless expressly so provided herein. 

SEC. 8004. No more than 20 percent of the appropriations in 

this Act which are limited for obligation during the current fiscal 

year shall be obligated during the last 2 months of the fiscal year: 

Provided, That this section shall not apply to obligations for support of active duty training of reserve components or summer camp 

training of the Reserve Officers’ Training Corps. 

(TRANSFER OF FUNDS)

SEC. 8005. Upon determination by the Secretary of Defense that 

such action is necessary in the national interest, he may, with the 

approval of the Office of Management and Budget, transfer not to 

exceed $2,000,000,000 of working capital funds of the Department 

of Defense or funds made available in this Act to the Department 

of Defense for military functions (except military construction) between such appropriations or funds or any subdivision thereof, 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, That such authority to transfer may not be used 

unless for higher priority items, based on unforeseen military requirements, than those for which originally appropriated and in no 

case where the item for which funds are requested has been denied 

by the Congress: Provided further, That the Secretary of Defense 

shall notify the Congress promptly of all transfers made pursuant 

to this authority or any other authority in this Act: Provided further, That no part of the funds in this Act shall be available to prepare or present a request to the Committees on Appropriations for 

reprogramming of funds, unless for higher priority items, based on 

unforeseen military requirements, than those for which originally 

20

appropriated and in no case where the item for which reprogramming is requested has been denied by the Congress: Provided further, That a request for multiple reprogrammings of funds using 

authority provided in this section must be made prior to May 31, 

2003: Provided further, That section 8005 of the Department of Defense Appropriations Act, 2002 (Public Law 107–117) is amended by 

striking ‘‘$2,000,000,000’’, and inserting ‘‘$2,500,000,000’’. 

(TRANSFER OF FUNDS)

SEC. 8006. During the current fiscal year, cash balances in 

working capital funds of the Department of Defense established pursuant to section 2208 of title 10, United States Code, may be maintained in only such amounts as are necessary at any time for cash 

disbursements to be made from such funds: Provided, That transfers may be made between such funds: Provided further, That transfers may be made between working capital funds and the ‘‘Foreign 

Currency Fluctuations, Defense’’ appropriation and the ‘‘Operation 

and Maintenance’’ appropriation accounts in such amounts as may 

be determined by the Secretary of Defense, with the approval of the 

Office of Management and Budget, except that such transfers may 

not be made unless the Secretary of Defense has notified the Congress of the proposed transfer. Except in amounts equal to the 

amounts appropriated to working capital funds in this Act, no obligations may be made against a working capital fund to procure or 

increase the value of war reserve material inventory, unless the Secretary of Defense has notified the Congress prior to any such obligation. 

SEC. 8007. Funds appropriated by this Act may not be used to 

initiate a special access program without prior notification 30 calendar days in session in advance to the congressional defense committees. 

SEC. 8008. None of the funds provided in this Act shall be 

available to initiate: (1) a multiyear contract that employs economic 

order quantity procurement in excess of $20,000,000 in any 1 year 

of the contract or that includes an unfunded contingent liability in 

excess of $20,000,000; or (2) a contract for advance procurement 

leading to a multiyear contract that employs economic order quantity procurement in excess of $20,000,000 in any 1 year, unless the 

congressional defense committees have been notified at least 30 days 

in advance of the proposed contract award: Provided, That no part 

of any appropriation contained in this Act shall be available to initiate a multiyear contract for which the economic order quantity advance procurement is not funded at least to the limits of the Government’s liability: Provided further, That no part of any appropriation 

contained in this Act shall be available to initiate multiyear procurement contracts for any systems or component thereof if the value 

of the multiyear contract would exceed $500,000,000 unless specifically provided in this Act: Provided further, That no multiyear procurement contract can be terminated without 10-day prior notification to the congressional defense committees: Provided further, That 

the execution of multiyear authority shall require the use of a 

present value analysis to determine lowest cost compared to an annual procurement. 

Funds appropriated in title III of this Act may be used for 

multiyear procurement contracts as follows: 

21

C–130 aircraft; 

FMTV; and 

F/A–18E and F engine. 

SEC. 8009. Within the funds appropriated for the operation and 

maintenance of the Armed Forces, funds are hereby appropriated 

pursuant to section 401 of title 10, United States Code, for humanitarian and civic assistance costs under chapter 20 of title 10, United 

States Code. Such funds may also be obligated for humanitarian 

and civic assistance costs incidental to authorized operations and 

pursuant to authority granted in section 401 of chapter 20 of title 

10, United States Code, and these obligations shall be reported to 

the Congress as of September 30 of each year: Provided, That funds 

available for operation and maintenance shall be available for providing humanitarian and similar assistance by using Civic Action 

Teams in the Trust Territories of the Pacific Islands and freely associated states of Micronesia, pursuant to the Compact of Free Association as authorized by Public Law 99–239: Provided further, That 

upon a determination by the Secretary of the Army that such action 

is beneficial for graduate medical education programs conducted at 

Army medical facilities located in Hawaii, the Secretary of the Army 

may authorize the provision of medical services at such facilities 

and transportation to such facilities, on a nonreimbursable basis, 

for civilian patients from American Samoa, the Commonwealth of 

the Northern Mariana Islands, the Marshall Islands, the Federated 

States of Micronesia, Palau, and Guam. 

SEC. 8010. (a) During fiscal year 2003, the civilian personnel 

of the Department of Defense may not be managed on the basis of 

any end-strength, and the management of such personnel during 

that fiscal year shall not be subject to any constraint or limitation 

(known as an end-strength) on the number of such personnel who 

may be employed on the last day of such fiscal year. 

(b) The fiscal year 2004 budget request for the Department of 

Defense as well as all justification material and other documentation supporting the fiscal year 2004 Department of Defense budget 

request shall be prepared and submitted to the Congress as if subsections (a) and (b) of this provision were effective with regard to 

fiscal year 2004. 

(c) Nothing in this section shall be construed to apply to military (civilian) technicians. 

SEC. 8011. Notwithstanding any other provision of law, none of 

the funds made available by this Act shall be used by the Department of Defense to exceed, outside the 50 United States, its territories, and the District of Columbia, 125,000 civilian workyears: 

Provided, That workyears shall be applied as defined in the Federal 

Personnel Manual: Provided further, That workyears expended in 

dependent student hiring programs for disadvantaged youths shall 

not be included in this workyear limitation.

SEC. 8012. None of the funds made available by this Act shall 

be used in any way, directly or indirectly, to influence congressional 

action on any legislation or appropriation matters pending before 

the Congress. 

SEC. 8013. None of the funds appropriated by this Act shall be 

available for the basic pay and allowances of any member of the 

Army participating as a full-time student and receiving benefits 

paid by the Secretary of Veterans Affairs from the Department of 

22

Defense Education Benefits Fund when time spent as a full-time 

student is credited toward completion of a service commitment: Provided, That this subsection shall not apply to those members who 

have reenlisted with this option prior to October 1, 1987: Provided 

further, That this subsection applies only to active components of 

the Army. 

SEC. 8014. None of the funds appropriated by this Act shall be 

available to convert to contractor performance an activity or function of the Department of Defense that, on or after the date of the 

enactment of this Act, is performed by more than 10 Department of 

Defense civilian employees until a most efficient and cost-effective 

organization analysis is completed on such activity or function and 

certification of the analysis is made to the Committees on Appropriations of the House of Representatives and the Senate: Provided, 

That this section and subsections (a), (b), and (c) of 10 U.S.C. 2461 

shall not apply to a commercial or industrial type function of the 

Department of Defense that: (1) is included on the procurement list 

established pursuant to section 2 of the Act of June 25, 1938 (41 

U.S.C. 47), popularly referred to as the Javits-Wagner-O’Day Act; 

(2) is planned to be converted to performance by a qualified nonprofit agency for the blind or by a qualified nonprofit agency for 

other severely handicapped individuals in accordance with that Act; 

or (3) is planned to be converted to performance by a qualified firm 

under 51 percent ownership by an Indian tribe, as defined in section 

450b(e) of title 25, United States Code, or a Native Hawaiian organization, as defined in section 637(a)(15) of title 15, United States 

Code. 

(TRANSFER OF FUNDS)

SEC. 8015. Funds appropriated in title III of this Act for the Department of Defense Pilot Mentor-Protege Program may be transferred to any other appropriation contained in this Act solely for the 

purpose of implementing a Mentor-Protege Program developmental 

assistance agreement pursuant to section 831 of the National Defense Authorization Act for Fiscal Year 1991 (Public Law 101–510; 

10 U.S.C. 2301 note), as amended, under the authority of this provision or any other transfer authority contained in this Act. 

SEC. 8016. None of the funds in this Act may be available for 

the purchase by the Department of Defense (and its departments 

and agencies) of welded shipboard anchor and mooring chain 4 

inches in diameter and under unless the anchor and mooring chain 

are manufactured in the United States from components which are 

substantially manufactured in the United States: Provided, That for 

the purpose of this section manufactured will include cutting, heat 

treating, quality control, testing of chain and welding (including the 

forging and shot blasting process): Provided further, That for the 

purpose of this section substantially all of the components of anchor 

and mooring chain shall be considered to be produced or manufactured in the United States if the aggregate cost of the components 

produced or manufactured in the United States exceeds the aggregate cost of the components produced or manufactured outside the 

United States: Provided further, That when adequate domestic supplies are not available to meet Department of Defense requirements 

on a timely basis, the Secretary of the service responsible for the 

procurement may waive this restriction on a case-by-case basis by 

23

certifying in writing to the Committees on Appropriations that such 

an acquisition must be made in order to acquire capability for national security purposes. 

SEC. 8017. None of the funds appropriated by this Act available 

for the Civilian Health and Medical Program of the Uniformed 

Services (CHAMPUS) or TRICARE shall be available for the reimbursement of any health care provider for inpatient mental health 

service for care received when a patient is referred to a provider of 

inpatient mental health care or residential treatment care by a medical or health care professional having an economic interest in the 

facility to which the patient is referred: Provided, That this limitation does not apply in the case of inpatient mental health services 

provided under the program for persons with disabilities under subsection (d) of section 1079 of title 10, United States Code, provided 

as partial hospital care, or provided pursuant to a waiver authorized by the Secretary of Defense because of medical or psychological 

circumstances of the patient that are confirmed by a health professional who is not a Federal employee after a review, pursuant to 

rules prescribed by the Secretary, which takes into account the appropriate level of care for the patient, the intensity of services required by the patient, and the availability of that care. 

SEC. 8018. Notwithstanding any other provision of law, during 

the current fiscal year, the Secretary of Defense may, by executive 

agreement, establish with host nation governments in NATO member states a separate account into which such residual value 

amounts negotiated in the return of United States military installations in NATO member states may be deposited, in the currency of 

the host nation, in lieu of direct monetary transfers to the United 

States Treasury: Provided, That such credits may be utilized only 

for the construction of facilities to support United States military 

forces in that host nation, or such real property maintenance and 

base operating costs that are currently executed through monetary 

transfers to such host nations: Provided further, That the Department of Defense’s budget submission for fiscal year 2004 shall identify such sums anticipated in residual value settlements, and identify such construction, real property maintenance or base operating 

costs that shall be funded by the host nation through such credits: 

Provided further, That all military construction projects to be executed from such accounts must be previously approved in a prior 

Act of Congress: Provided further, That each such executive agreement with a NATO member host nation shall be reported to the congressional defense committees, the Committee on International Relations of the House of Representatives and the Committee on Foreign 

Relations of the Senate 30 days prior to the conclusion and endorsement of any such agreement established under this provision.

SEC. 8019. None of the funds available to the Department of Defense may be used to demilitarize or dispose of M–1 Carbines, M–

1 Garand rifles, M–14 rifles, .22 caliber rifles, .30 caliber rifles, or 

M–1911 pistols. 

SEC. 8020. No more than $500,000 of the funds appropriated 

or made available in this Act shall be used during a single fiscal 

year for any single relocation of an organization, unit, activity or 

function of the Department of Defense into or within the National 

Capital Region: Provided, That the Secretary of Defense may waive 

this restriction on a case-by-case basis by certifying in writing to the 

24

congressional defense committees that such a relocation is required 

in the best interest of the Government. 

SEC. 8021. In addition to the funds provided elsewhere in this Act, $8,000,000 is appropriated only for incentive payments authorized by Section 504 of the Indian Financing Act of 1974 (25 U.S.C. 

1544): Provided, That a prime contractor or a subcontractor at any 

tier that makes a subcontract award to any subcontractor or supplier as defined in 25 U.S.C. 1544 or a small business owned and 

controlled by an individual defined under 25 U.S.C. 4221(9) shall 

be considered a contractor for the purposes of being allowed additional compensation under section 504 of the Indian Financing Act 

of 1974 (25 U.S.C. 1544) whenever the prime contract or subcontract 

amount is over $500,000 and involves the expenditure of funds appropriated by an Act making Appropriations for the Department of 

Defense with respect to any fiscal year: Provided further, That notwithstanding 41 U.S.C. § 430, this section shall be applicable to any 

Department of Defense acquisition of supplies or services, including 

any contract and any subcontract at any tier for acquisition of commercial items produced or manufactured, in whole or in part by any 

subcontractor or supplier defined in 25 U.S.C. § 1544 or a small 

business owned and controlled by an individual defined under 25 

U.S.C. 4221(9). 

SEC. 8022. None of the funds appropriated by this Act shall be 

available to perform any cost study pursuant to the provisions of 

OMB Circular A–76 if the study being performed exceeds a period 

of 24 months after initiation of such study with respect to a single 

function activity or 48 months after initiation of such study for a 

multi-function activity. 

SEC. 8023. Funds appropriated by this Act for the American 

Forces Information Service shall not be used for any national or 

international political or psychological activities. 

SEC. 8024. Notwithstanding any other provision of law or regulation, the Secretary of Defense may adjust wage rates for civilian 

employees hired for certain health care occupations as authorized 

for the Secretary of Veterans Affairs by section 7455 of title 38, 

United States Code. 

SEC. 8025. (a) Of the funds for the procurement of supplies or 

services appropriated by this Act, qualified nonprofit agencies for 

the blind or other severely handicapped shall be afforded the maximum practicable opportunity to participate as subcontractors and 

suppliers in the performance of contracts let by the Department of 

Defense. 

(b) During the current fiscal year, a business concern which has 

negotiated with a military service or defense agency a subcontracting plan for the participation by small business concerns pursuant to section 8(d) of the Small Business Act (15 U.S.C. 637(d)) 

shall be given credit toward meeting that subcontracting goal for 

any purchases made from qualified nonprofit agencies for the blind 

or other severely handicapped. 

(c) For the purpose of this section, the phrase ‘‘qualified nonprofit agency for the blind or other severely handicapped’’ means a 

nonprofit agency for the blind or other severely handicapped that 

has been approved by the Committee for the Purchase from the 

Blind and Other Severely Handicapped under the Javits-WagnerO’Day Act (41 U.S.C. 46–48). 

25

SEC. 8026. During the current fiscal year, net receipts pursuant 

to collections from third party payers pursuant to section 1095 of 

title 10, United States Code, shall be made available to the local facility of the uniformed services responsible for the collections and 

shall be over and above the facility’s direct budget amount. 

SEC. 8027. During the current fiscal year, the Department of 

Defense is authorized to incur obligations of not to exceed 

$350,000,000 for purposes specified in section 2350j(c) of title 10, 

United States Code, in anticipation of receipt of contributions, only 

from the Government of Kuwait, under that section: Provided, That 

upon receipt, such contributions from the Government of Kuwait 

shall be credited to the appropriations or fund which incurred such 

obligations. 

SEC. 8028. Of the funds made available in this Act, not less than $21,188,000 shall be available for the Civil Air Patrol Corporation, of which $19,688,000 shall be available for Civil Air Patrol Corporation operation and maintenance to support readiness 

activities which includes $1,500,000 for the Civil Air Patrol 

counterdrug program: Provided, That funds identified for ‘‘Civil Air 

Patrol’’ under this section are intended for and shall be for the exclusive use of the Civil Air Patrol Corporation and not for the Air 

Force or any unit thereof.

SEC. 8029. (a) None of the funds appropriated in this Act are 

available to establish a new Department of Defense (department) 

federally funded research and development center (FFRDC), either 

as a new entity, or as a separate entity administrated by an organization managing another FFRDC, or as a nonprofit membership 

corporation consisting of a consortium of other FFRDCs and other 

non-profit entities. 

(b) No member of a Board of Directors, Trustees, Overseers, Advisory Group, Special Issues Panel, Visiting Committee, or any similar entity of a defense FFRDC, and no paid consultant to any defense FFRDC, except when acting in a technical advisory capacity, 

may be compensated for his or her services as a member of such entity, or as a paid consultant by more than one FFRDC in a fiscal 

year: Provided, That a member of any such entity referred to previously in this subsection shall be allowed travel expenses and per 

diem as authorized under the Federal Joint Travel Regulations, 

when engaged in the performance of membership duties. 

(c) Notwithstanding any other provision of law, none of the 

funds available to the department from any source during fiscal 

year 2003 may be used by a defense FFRDC, through a fee or other 

payment mechanism, for construction of new buildings, for payment 

of cost sharing for projects funded by Government grants, for absorption of contract overruns, or for certain charitable contributions, 

not to include employee participation in community service and/or 

development. 

(d) Notwithstanding any other provision of law, of the funds 

available to the department during fiscal year 2003, not more than 

6,321 staff years of technical effort (staff years) may be funded for 

defense FFRDCs: Provided, That of the specific amount referred to 

previously in this subsection, not more than 1,050 staff years may 

be funded for the defense studies and analysis FFRDCs. 

(e) The Secretary of Defense shall, with the submission of the 

department’s fiscal year 2004 budget request, submit a report preVerDate 0ct 09 2002 14:16 Oct 15, 2002 Jkt 019006 PO 00000 Frm 00027 Fmt 6659 Sfmt 6603 E:\PICKUP\HR732.XXX HR732
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senting the specific amounts of staff years of technical effort to be 

allocated for each defense FFRDC during that fiscal year. 

(f) Notwithstanding any other provision of this Act, the total 

amount appropriated in this Act for FFRDCs is hereby reduced by 

$74,200,000. 

SEC. 8030. None of the funds appropriated or made available 

in this Act shall be used to procure carbon, alloy or armor steel 

plate for use in any Government-owned facility or property under 

the control of the Department of Defense which were not melted and 

rolled in the United States or Canada: Provided, That these procurement restrictions shall apply to any and all Federal Supply 

Class 9515, American Society of Testing and Materials (ASTM) or 

American Iron and Steel Institute (AISI) specifications of carbon, 

alloy or armor steel plate: Provided further, That the Secretary of 

the military department responsible for the procurement may waive 

this restriction on a case-by-case basis by certifying in writing to the 

Committees on Appropriations of the House of Representatives and 

the Senate that adequate domestic supplies are not available to meet 

Department of Defense requirements on a timely basis and that such 

an acquisition must be made in order to acquire capability for national security purposes: Provided further, That these restrictions 

shall not apply to contracts which are in being as of the date of the 

enactment of this Act. 

SEC. 8031. For the purposes of this Act, the term ‘‘congressional 

defense committees’’ means the Armed Services Committee of the 

House of Representatives, the Armed Services Committee of the Senate, the Subcommittee on Defense of the Committee on Appropriations of the Senate, and the Subcommittee on Defense of the Committee on Appropriations of the House of Representatives. 

SEC. 8032. During the current fiscal year, the Department of 

Defense may acquire the modification, depot maintenance and repair of aircraft, vehicles and vessels as well as the production of 

components and other Defense-related articles, through competition 

between Department of Defense depot maintenance activities and 

private firms: Provided, That the Senior Acquisition Executive of the 

military department or defense agency concerned, with power of delegation, shall certify that successful bids include comparable estimates of all direct and indirect costs for both public and private 

bids: Provided further, That Office of Management and Budget Circular A–76 shall not apply to competitions conducted under this section. 

SEC. 8033. (a)(1) If the Secretary of Defense, after consultation 

with the United States Trade Representative, determines that a foreign country which is party to an agreement described in paragraph 

(2) has violated the terms of the agreement by discriminating 

against certain types of products produced in the United States that 

are covered by the agreement, the Secretary of Defense shall rescind 

the Secretary’s blanket waiver of the Buy American Act with respect 

to such types of products produced in that foreign country. 

(2) An agreement referred to in paragraph (1) is any reciprocal 

defense procurement memorandum of understanding, between the 

United States and a foreign country pursuant to which the Secretary of Defense has prospectively waived the Buy American Act for 

certain products in that country. 

27

(b) The Secretary of Defense shall submit to the Congress a report on the amount of Department of Defense purchases from foreign entities in fiscal year 2003. Such report shall separately indicate the dollar value of items for which the Buy American Act was 

waived pursuant to any agreement described in subsection (a)(2), 

the Trade Agreement Act of 1979 (19 U.S.C. 2501 et seq.), or any 

international agreement to which the United States is a party. 

(c) For purposes of this section, the term ‘‘Buy American Act’’

means title III of the Act entitled ‘‘An Act making appropriations for 

the Treasury and Post Office Departments for the fiscal year ending 

June 30, 1934, and for other purposes’’, approved March 3, 1933 (41 

U.S.C. 10a et seq.). 

SEC. 8034. Appropriations contained in this Act that remain 

available at the end of the current fiscal year as a result of energy 

cost savings realized by the Department of Defense shall remain 

available for obligation for the next fiscal year to the extent, and for 

the purposes, provided in section 2865 of title 10, United States 

Code.

(INCLUDING TRANSFER OF FUNDS)

SEC. 8035. Amounts deposited during the current fiscal year to 

the special account established under 40 U.S.C. 485(h)(2) and to the 

special account established under 10 U.S.C. 2667(d)(1) are appropriated and shall be available until transferred by the Secretary of 

Defense to current applicable appropriations or funds of the Department of Defense under the terms and conditions specified by 40 

U.S.C. 485(h)(2)(A) and (B) and 10 U.S.C. 2667(d)(1)(B), to be 

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

same purposes as the appropriation to which transferred. 

SEC. 8036. The President shall include with each budget for a 

fiscal year submitted to the Congress under section 1105 of title 31, 

United States Code, materials that shall identify clearly and separately the amounts requested in the budget for appropriation for 

that fiscal year for salaries and expenses related to administrative 

activities of the Department of Defense, the military departments, 

and the defense agencies. 

SEC. 8037. Notwithstanding any other provision of law, funds 

available for ‘‘Drug Interdiction and Counter-Drug Activities, Defense’’ may be obligated for the Young Marines program. 

(INCLUDING TRANSFER OF FUNDS)

SEC. 8038. During the current fiscal year, amounts contained in 

the Department of Defense Overseas Military Facility Investment 

Recovery Account established by section 2921(c)(1) of the National 

Defense Authorization Act of 1991 (Public Law 101–510; 10 U.S.C. 

2687 note) shall be available until expended for the payments specified by section 2921(c)(2) of that Act. 

SEC. 8039. (a) IN GENERAL.—Notwithstanding any other provision of law, the Secretary of the Air Force may convey at no cost to 

the Air Force, without consideration, to Indian tribes located in the 

States of North Dakota, South Dakota, Montana, and Minnesota 

relocatable military housing units located at Grand Forks Air Force 

Base and Minot Air Force Base that are excess to the needs of the 

Air Force. 

28

(b) PROCESSING OF REQUESTS.—The Secretary of the Air Force 

shall convey, at no cost to the Air Force, military housing units 

under subsection (a) in accordance with the request for such units 

that are submitted to the Secretary by the Operation Walking Shield 

Program on behalf of Indian tribes located in the States of North 

Dakota, South Dakota, Montana, and Minnesota. 

(c) RESOLUTION OF HOUSING UNIT CONFLICTS.—The Operation 

Walking Shield program shall resolve any conflicts among requests 

of Indian tribes for housing units under subsection (a) before submitting requests to the Secretary of the Air Force under subsection 

(b). 

(d) INDIAN TRIBE DEFINED.—In this section, the term ‘‘Indian 

tribe’’ means any recognized Indian tribe included on the current 

list published by the Secretary of the Interior under section 104 of 

the Federally Recognized Indian Tribe Act of 1994 (Public Law 

103–454; 108 Stat. 4792; 25 U.S.C. 479a–1). 

SEC. 8040. During the current fiscal year, appropriations which 

are available to the Department of Defense for operation and maintenance may be used to purchase items having an investment item 

unit cost of not more than $100,000. 

SEC. 8041. (a) During the current fiscal year, none of the appropriations or funds available to the Department of Defense Working 

Capital Funds shall be used for the purchase of an investment item 

for the purpose of acquiring a new inventory item for sale or anticipated sale during the current fiscal year or a subsequent fiscal year 

to customers of the Department of Defense Working Capital Funds 

if such an item would not have been chargeable to the Department 

of Defense Business Operations Fund during fiscal year 1994 and 

if the purchase of such an investment item would be chargeable during the current fiscal year to appropriations made to the Department of Defense for procurement. 

(b) The fiscal year 2004 budget request for the Department of 

Defense as well as all justification material and other documentation supporting the fiscal year 2004 Department of Defense budget 

shall be prepared and submitted to the Congress on the basis that 

any equipment which was classified as an end item and funded in 

a procurement appropriation contained in this Act shall be budgeted for in a proposed fiscal year 2004 procurement appropriation 

and not in the supply management business area or any other area 

or category of the Department of Defense Working Capital Funds. 

SEC. 8042. None of the funds appropriated by this Act for programs of the Central Intelligence Agency shall remain available for 

obligation beyond the current fiscal year, except for funds appropriated for the Reserve for Contingencies, which shall remain available until September 30, 2004: Provided, That funds appropriated, 

transferred, or otherwise credited to the Central Intelligence Agency 

Central Services Working Capital Fund during this or any prior or 

subsequent fiscal year shall remain available until expended: Provided further, That any funds appropriated or transferred to the 

Central Intelligence Agency for agent operations and for covert action programs authorized by the President under section 503 of the 

National Security Act of 1947, as amended, shall remain available 

until September 30, 2004. 

SEC. 8043. Notwithstanding any other provision of law, funds 

made available in this Act for the Defense Intelligence Agency may 

29

be used for the design, development, and deployment of General Defense Intelligence Program intelligence communications and intelligence information systems for the Services, the Unified and Specified Commands, and the component commands. 

SEC. 8044. Of the funds appropriated to the Department of Defense under the heading ‘‘Operation and Maintenance, DefenseWide’’, not less than $10,000,000 shall be made available only for 

the mitigation of environmental impacts, including training and 

technical assistance to tribes, related administrative support, the 

gathering of information, documenting of environmental damage, 

and developing a system for prioritization of mitigation and cost to 

complete estimates for mitigation, on Indian lands resulting from 

Department of Defense activities. 

SEC. 8045. Of the funds made available in this Act, not less 

than $68,900,000 shall be available to maintain an attrition reserve 

force of 18 B–52 aircraft, of which $3,700,000 shall be available 

from ‘‘Military Personnel, Air Force’’, $40,000,000 shall be available 

from ‘‘Operation and Maintenance, Air Force’’, and $25,200,000 

shall be available from ‘‘Aircraft Procurement, Air Force’’: Provided, 

That the Secretary of the Air Force shall maintain a total force of 

94 B–52 aircraft, including 18 attrition reserve aircraft, during fiscal year 2003: Provided further, That the Secretary of Defense shall 

include in the Air Force budget request for fiscal year 2004 amounts 

sufficient to maintain a B–52 force totaling 94 aircraft. 

SEC. 8046. (a) None of the funds appropriated in this Act may 

be expended by an entity of the Department of Defense unless the 

entity, in expending the funds, complies with the Buy American Act. 

For purposes of this subsection, the term ‘‘Buy American Act’’ means 

title III of the Act entitled ‘‘An Act making appropriations for the 

Treasury and Post Office Departments for the fiscal year ending 

June 30, 1934, and for other purposes’’, approved March 3, 1933 (41 

U.S.C. 10a et seq.). 

(b) If the Secretary of Defense determines that a person has 

been convicted of intentionally affixing a label bearing a ‘‘Made in 

America’’ inscription to any product sold in or shipped to the United 

States that is not made in America, the Secretary shall determine, 

in accordance with section 2410f of title 10, United States Code, 

whether the person should be debarred from contracting with the 

Department of Defense.

(c) In the case of any equipment or products purchased with appropriations provided under this Act, it is the sense of the Congress 

that any entity of the Department of Defense, in expending the appropriation, purchase only American-made equipment and products, 

provided that American-made equipment and products are costcompetitive, quality-competitive, and available in a timely fashion. 

SEC. 8047. None of the funds appropriated by this Act shall be 

available for a contract for studies, analysis, or consulting services 

entered into without competition on the basis of an unsolicited proposal unless the head of the activity responsible for the procurement 

determines—

(1) as a result of thorough technical evaluation, only one 

source is found fully qualified to perform the proposed work; 

(2) the purpose of the contract is to explore an unsolicited 

proposal which offers significant scientific or technological 

30

promise, represents the product of original thinking, and was 

submitted in confidence by one source; or 

(3) the purpose of the contract is to take advantage of 

unique and significant industrial accomplishment by a specific 

concern, or to insure that a new product or idea of a specific 

concern is given financial support: 

Provided, That this limitation shall not apply to contracts in an 

amount of less than $25,000, contracts related to improvements of 

equipment that is in development or production, or contracts as to 

which a civilian official of the Department of Defense, who has been 

confirmed by the Senate, determines that the award of such contract 

is in the interest of the national defense. 

SEC. 8048. (a) Except as provided in subsections (b) and (c), 

none of the funds made available by this Act may be used—

(1) to establish a field operating agency; or 

(2) to pay the basic pay of a member of the Armed Forces 

or civilian employee of the department who is transferred or reassigned from a headquarters activity if the member or employee’s place of duty remains at the location of that headquarters. 

(b) The Secretary of Defense or Secretary of a military department may waive the limitations in subsection (a), on a case-by-case 

basis, if the Secretary determines, and certifies to the Committees on 

Appropriations of the House of Representatives and Senate that the 

granting of the waiver will reduce the personnel requirements or the 

financial requirements of the department. 

(c) This section does not apply to field operating agencies funded within the National Foreign Intelligence Program. 

SEC. 8049. Notwithstanding section 303 of Public Law 96–487 

or any other provision of law, the Secretary of the Navy is authorized to lease real and personal property at Naval Air Facility, Adak, 

Alaska, pursuant to 10 U.S.C. 2667(f), for commercial, industrial or 

other purposes: Provided, That notwithstanding any other provision 

of law, the Secretary of the Navy may remove hazardous materials 

from facilities, buildings, and structures at Adak, Alaska, and may 

demolish or otherwise dispose of such facilities, buildings, and 

structures. 

(RESCISSIONS)

SEC. 8050. Of the funds appropriated in Department of Defense 

Appropriations Acts, the following funds are hereby rescinded from 

the following accounts and programs in the specified amounts: 

‘‘Procurement of Weapons and Tracked Combat Vehicles, 

Army, 2001/2003’’, $9,500,000; 

‘‘Procurement of Ammunition, Army, 2001/2003’’, 

$4,000,000; 

‘‘Other Procurement, Army, 2001/2003’’, $8,000,000; 

‘‘Other Procurement, Navy, 2001/2003’’, $5,000,000; 

‘‘Missile Procurement, Air Force, 2001/2003’’, $93,600,000; 

‘‘Missile Procurement, Army, 2002/2004’’, $37,650,000; 

‘‘Procurement of Ammunition, Army, 2002/2004’’, 

$19,000,000; 

‘‘Other Procurement, Army, 2002/2004’’, $21,200,000; 

‘‘Missile Procurement, Air Force, 2002/2004’’, 

$114,600,000; 

31

‘‘Research, Development, Test and Evaluation, Navy, 2002/

2003’’, $1,700,000; 

‘‘Research, Development, Test and Evaluation, Air Force, 

2002/2003’’, $69,000,000; and ‘‘Research, Development, Test and Evaluation, DefenseWide, 2002/2003’’, $19,500,000. 

SEC. 8051. None of the funds available in this Act may be used 

to reduce the authorized positions for military (civilian) technicians 

of the Army National Guard, the Air National Guard, Army Reserve 

and Air Force Reserve for the purpose of applying any administratively imposed civilian personnel ceiling, freeze, or reduction on 

military (civilian) technicians, unless such reductions are a direct 

result of a reduction in military force structure.

SEC. 8052. None of the funds appropriated or otherwise made 

available in this Act may be obligated or expended for assistance to 

the Democratic People’s Republic of North Korea unless specifically 

appropriated for that purpose. 

SEC. 8053. During the current fiscal year, funds appropriated 

in this Act are available to compensate members of the National 

Guard for duty performed pursuant to a plan submitted by a Governor of a State and approved by the Secretary of Defense under section 112 of title 32, United States Code: Provided, That during the 

performance of such duty, the members of the National Guard shall 

be under State command and control: Provided further, That such 

duty shall be treated as full-time National Guard duty for purposes 

of sections 12602(a)(2) and (b)(2) of title 10, United States Code. 

SEC. 8054. Funds appropriated in this Act for operation and 

maintenance of the Military Departments, Combatant Commands 

and Defense Agencies shall be available for reimbursement of pay, 

allowances and other expenses which would otherwise be incurred 

against appropriations for the National Guard and Reserve when 

members of the National Guard and Reserve provide intelligence or 

counterintelligence support to Combatant Commands, Defense Agencies and Joint Intelligence Activities, including the activities and 

programs included within the National Foreign Intelligence Program (NFIP), the Joint Military Intelligence Program (JMIP), and 

the Tactical Intelligence and Related Activities (TIARA) aggregate: 

Provided, That nothing in this section authorizes deviation from established Reserve and National Guard personnel and training procedures. 

SEC. 8055. During the current fiscal year, none of the funds appropriated in this Act may be used to reduce the civilian medical 

and medical support personnel assigned to military treatment facilities below the September 30, 2002 level: Provided, That the Service 

Surgeons General may waive this section by certifying to the congressional defense committees that the beneficiary population is declining in some catchment areas and civilian strength reductions 

may be consistent with responsible resource stewardship and capitation-based budgeting. 

SEC. 8056. (a) LIMITATION ON PENTAGON RENOVATION COSTS.— Not later than the date each year on which the President submits 

to Congress the budget under section 1105 of title 31, United States 

Code, the Secretary of Defense shall submit to Congress a certification that the total cost for the planning, design, construction, and 

installation of equipment for the renovation of wedges 2 through 5 

32

of the Pentagon Reservation, cumulatively, will not exceed four 

times the total cost for the planning, design, construction, and installation of equipment for the renovation of wedge 1. 

(b) ANNUAL ADJUSTMENT.—For purposes of applying the limitation in subsection (a), the Secretary shall adjust the cost for the renovation of wedge 1 by any increase or decrease in costs attributable 

to economic inflation, based on the most recent economic assumptions issued by the Office of Management and Budget for use in 

preparation of the budget of the United States under section 1104 

of title 31, United States Code. 

(c) EXCLUSION OF CERTAIN COSTS.—For purposes of calculating 

the limitation in subsection (a), the total cost for wedges 2 through 

5 shall not include— (1) any repair or reconstruction cost incurred as a result of 

the terrorist attack on the Pentagon that occurred on September 

11, 2001; 

(2) any increase in costs for wedges 2 through 5 attributable to compliance with new requirements of Federal, State, 

or local laws; and 

(3) any increase in costs attributable to additional security 

requirements that the Secretary of Defense considers essential to 

provide a safe and secure working environment. 

(d) CERTIFICATION COST REPORTS.—As part of the annual certification under subsection (a), the Secretary shall report the projected cost (as of the time of the certification) for—

(1) the renovation of each wedge, including the amount adjusted or otherwise excluded for such wedge under the authority 

of paragraphs (2) and (3) of subsection (c) for the period covered 

by the certification; and 

(2) the repair and reconstruction of wedges 1 and 2 in response to the terrorist attack on the Pentagon that occurred on 

September 11, 2001. 

(e) DURATION OF CERTIFICATION REQUIREMENT.—The requirement to make an annual certification under subsection (a) shall 

apply until the Secretary certifies to Congress that the renovation of 

the Pentagon Reservation is completed. 

SEC. 8057. Notwithstanding any other provision of law, that 

not more than 35 percent of funds provided in this Act for environmental remediation may be obligated under indefinite delivery/indefinite quantity contracts with a total contract value of 

$130,000,000 or higher. 

SEC. 8058. (a) None of the funds available to the Department 

of Defense for any fiscal year for drug interdiction or counter-drug 

activities may be transferred to any other department or agency of 

the United States except as specifically provided in an appropriations law. 

(b) None of the funds available to the Central Intelligence Agency for any fiscal year for drug interdiction and counter-drug activities may be transferred to any other department or agency of the 

United States except as specifically provided in an appropriations 

law. 

(TRANSFER OF FUNDS)

SEC. 8059. Appropriations available in this Act under the heading ‘‘Operation and Maintenance, Defense-Wide’’ for increasing enVerDate 0ct 09 2002 14:16 Oct 15, 2002 Jkt 019006 PO 00000 Frm 00034 Fmt 6659 Sfmt 6603 E:\PICKUP\HR732.XXX HR732
33

ergy and water efficiency in Federal buildings may, during their period of availability, be transferred to other appropriations or funds 

of the Department of Defense for projects related to increasing energy and water efficiency, to be merged with and to be available for 

the same general purposes, and for the same time period, as the appropriation or fund to which transferred. 

SEC. 8060. None of the funds appropriated by this Act may be 

used for the procurement of ball and roller bearings other than 

those produced by a domestic source and of domestic origin: Provided, That the Secretary of the military department responsible for 

such procurement may waive this restriction on a case-by-case basis 

by certifying in writing to the Committees on Appropriations of the 

House of Representatives and the Senate, that adequate domestic 

supplies are not available to meet Department of Defense requirements on a timely basis and that such an acquisition must be made 

in order to acquire capability for national security purposes: Provided further, That this restriction shall not apply to the purchase 

of ‘‘commercial items’’, as defined by section 4(12) of the Office of 

Federal Procurement Policy Act, except that the restriction shall 

apply to ball or roller bearings purchased as end items. 

SEC. 8061. Notwithstanding any other provision of law, funds 

available to the Department of Defense shall be made available to 

provide transportation of medical supplies and equipment, on a 

nonreimbursable basis, to American Samoa, and funds available to 

the Department of Defense shall be made available to provide transportation of medical supplies and equipment, on a nonreimbursable 

basis, to the Indian Health Service when it is in conjunction with 

a civil-military project. 

SEC. 8062. None of the funds in this Act may be used to purchase any supercomputer which is not manufactured in the United 

States, unless the Secretary of Defense certifies to the congressional 

defense committees that such an acquisition must be made in order 

to acquire capability for national security purposes that is not available from United States manufacturers.

SEC. 8063. Notwithstanding any other provision of law, the 

Naval shipyards of the United States shall be eligible to participate 

in any manufacturing extension program financed by funds appropriated in this or any other Act. 

SEC. 8064. Notwithstanding any other provision of law, each 

contract awarded by the Department of Defense during the current 

fiscal year for construction or service performed in whole or in part 

in a State (as defined in section 381(d) of title 10, United States 

Code) which is not contiguous with another State and has an unemployment rate in excess of the national average rate of unemployment as determined by the Secretary of Labor, shall include a provision requiring the contractor to employ, for the purpose of performing that portion of the contract in such State that is not contiguous with another State, individuals who are residents of such 

State and who, in the case of any craft or trade, possess or would 

be able to acquire promptly the necessary skills: Provided, That the 

Secretary of Defense may waive the requirements of this section, on 

a case-by-case basis, in the interest of national security. 

SEC. 8065. (a) None of the funds made available in this or any 

other Act may be used to pay the salary of any officer or employee 

of the Department of Defense who approves or implements the transVerDate 0ct 09 2002 14:16 Oct 15, 2002 Jkt 019006 PO 00000 Frm 00035 Fmt 6659 Sfmt 6603 E:\PICKUP\HR732.XXX HR732
34

fer of administrative responsibilities or budgetary resources of any 

program, project, or activity financed by this Act to the jurisdiction 

of another Federal agency not financed by this Act without the express authorization of Congress: Provided, That this limitation shall 

not apply to transfers of funds expressly provided for in Defense Appropriations Acts, or provisions of Acts providing supplemental appropriations for the Department of Defense. 

(b) None of the funds in this or any other Act may be used to 

dismantle national memorials commemorating United States participation in World War I. 

SEC. 8066. (a) LIMITATION ON TRANSFER OF DEFENSE ARTICLES

AND SERVICES.—Notwithstanding any other provision of law, none 

of the funds available to the Department of Defense for the current 

fiscal year may be obligated or expended to transfer to another nation or an international organization any defense articles or services 

(other than intelligence services) for use in the activities described 

in subsection (b) unless the congressional defense committees, the 

Committee on International Relations of the House of Representatives, and the Committee on Foreign Relations of the Senate are notified 15 days in advance of such transfer. 

(b) COVERED ACTIVITIES.—This section applies to— (1) any international peacekeeping or peace-enforcement operation under the authority of chapter VI or chapter VII of the 

United Nations Charter under the authority of a United Nations Security Council resolution; and 

(2) any other international peacekeeping, peace-enforcement, or humanitarian assistance operation. 

(c) REQUIRED NOTICE.—A notice under subsection (a) shall include the following: 

(1) A description of the equipment, supplies, or services to 

be transferred. 

(2) A statement of the value of the equipment, supplies, or 

services to be transferred. 

(3) In the case of a proposed transfer of equipment or supplies—

(A) a statement of whether the inventory requirements 

of all elements of the Armed Forces (including the reserve 

components) for the type of equipment or supplies to be 

transferred have been met; and 

(B) a statement of whether the items proposed to be 

transferred will have to be replaced and, if so, how the 

President proposes to provide funds for such replacement. 

SEC. 8067. To the extent authorized by subchapter VI of chapter 

148 of title 10, United States Code, the Secretary of Defense may 

issue loan guarantees in support of United States defense exports 

not otherwise provided for: Provided, That the total contingent liability of the United States for guarantees issued under the authority of this section may not exceed $15,000,000,000: Provided further, 

That the exposure fees charged and collected by the Secretary for 

each guarantee shall be paid by the country involved and shall not 

be financed as part of a loan guaranteed by the United States: Provided further, That the Secretary shall provide quarterly reports to 

the Committees on Appropriations, Armed Services, and Foreign Relations of the Senate and the Committees on Appropriations, Armed 

Services, and International Relations in the House of RepresentaVerDate 0ct 09 2002 14:16 Oct 15, 2002 Jkt 019006 PO 00000 Frm 00036 Fmt 6659 Sfmt 6603 E:\PICKUP\HR732.XXX HR732
35

tives on the implementation of this program: Provided further, That 

amounts charged for administrative fees and deposited to the special account provided for under section 2540c(d) of title 10, shall be 

available for paying the costs of administrative expenses of the Department of Defense that are attributable to the loan guarantee program under subchapter VI of chapter 148 of title 10, United States 

Code. 

SEC. 8068. None of the funds available to the Department of Defense under this Act shall be obligated or expended to pay a contractor under a contract with the Department of Defense for costs of 

any amount paid by the contractor to an employee when— (1) such costs are for a bonus or otherwise in excess of the 

normal salary paid by the contractor to the employee; and 

(2) such bonus is part of restructuring costs associated with 

a business combination. 

SEC. 8069. (a) None of the funds appropriated or otherwise 

made available in this Act may be used to transport or provide for 

the transportation of chemical munitions or agents to the Johnston 

Atoll for the purpose of storing or demilitarizing such munitions or 

agents. 

(b) The prohibition in subsection (a) shall not apply to any obsolete World War II chemical munition or agent of the United States 

found in the World War II Pacific Theater of Operations. 

(c) The President may suspend the application of subsection (a) 

during a period of war in which the United States is a party. 

(INCLUDING TRANSFER OF FUNDS)

SEC. 8070. During the current fiscal year, no more than $30,000,000 of appropriations made in this Act under the heading 

‘‘Operation and Maintenance, Defense-Wide’’ may be transferred to 

appropriations available for the pay of military personnel, to be 

merged with, and to be available for the same time period as the 

appropriations to which transferred, to be used in support of such 

personnel in connection with support and services for eligible organizations and activities outside the Department of Defense pursuant 

to section 2012 of title 10, United States Code. 

SEC. 8071. During the current fiscal year, in the case of an appropriation account of the Department of Defense for which the period of availability for obligation has expired or which has closed 

under the provisions of section 1552 of title 31, United States Code, 

and which has a negative unliquidated or unexpended balance, an 

obligation or an adjustment of an obligation may be charged to any 

current appropriation account for the same purpose as the expired 

or closed account if—

(1) the obligation would have been properly chargeable (except as to amount) to the expired or closed account before the 

end of the period of availability or closing of that account; 

(2) the obligation is not otherwise properly chargeable to 

any current appropriation account of the Department of Defense; and 

(3) in the case of an expired account, the obligation is not 

chargeable to a current appropriation of the Department of Defense under the provisions of section 1405(b)(8) of the National 

Defense Authorization Act for Fiscal Year 1991, Public Law 

101–510, as amended (31 U.S.C. 1551 note): Provided, That in 

36

the case of an expired account, if subsequent review or investigation discloses that there was not in fact a negative unliquidated or unexpended balance in the account, any charge to a 

current account under the authority of this section shall be reversed and recorded against the expired account: Provided further, That the total amount charged to a current appropriation 

under this section may not exceed an amount equal to 1 percent 

of the total appropriation for that account. 

SEC. 8072. Funds appropriated in title II of this Act and for the 

Defense Health Program in title VI of this Act for supervision and 

administration costs for facilities maintenance and repair, minor 

construction, or design projects may be obligated at the time the reimbursable order is accepted by the performing activity: Provided, 

That for the purpose of this section, supervision and administration 

costs includes all in-house Government cost. 

SEC. 8073. During the current fiscal year and hereafter, the 

Secretary of Defense may waive reimbursement of the cost of conferences, seminars, courses of instruction, or similar educational activities of the Asia-Pacific Center for Security Studies for military 

officers and civilian officials of foreign nations if the Secretary determines that attendance by such personnel, without reimbursement, 

is in the national security interest of the United States: Provided, 

That costs for which reimbursement is waived pursuant to this section shall be paid from appropriations available for the Asia-Pacific 

Center. 

SEC. 8074. (a) Notwithstanding any other provision of law, the 

Chief of the National Guard Bureau may permit the use of equipment of the National Guard Distance Learning Project by any person or entity on a space-available, reimbursable basis. The Chief of 

the National Guard Bureau shall establish the amount of reimbursement for such use on a case-by-case basis. 

(b) Amounts collected under subsection (a) shall be credited to 

funds available for the National Guard Distance Learning Project 

and be available to defray the costs associated with the use of equipment of the project under that subsection. Such funds shall be available for such purposes without fiscal year limitation. 

SEC. 8075. Using funds available by this Act or any other Act, 

the Secretary of the Air Force, pursuant to a determination under 

section 2690 of title 10, United States Code, may implement cost-effective agreements for required heating facility modernization in the 

Kaiserslautern Military Community in the Federal Republic of Germany: Provided, That in the City of Kaiserslautern such agreements 

will include the use of United States anthracite as the base load energy for municipal district heat to the United States Defense installations: Provided further, That at Landstuhl Army Regional Medical Center and Ramstein Air Base, furnished heat may be obtained 

from private, regional or municipal services, if provisions are included for the consideration of United States coal as an energy 

source. 

SEC. 8076. None of the funds appropriated in title IV of this Act 

may be used to procure end-items for delivery to military forces for 

operational training, operational use or inventory requirements: 

Provided, That this restriction does not apply to end-items used in 

development, prototyping, and test activities preceding and leading 

to acceptance for operational use: Provided further, That this reVerDate 0ct 09 2002 14:16 Oct 15, 2002 Jkt 019006 PO 00000 Frm 00038 Fmt 6659 Sfmt 6603 E:\PICKUP\HR732.XXX HR732
37

striction does not apply to programs funded within the National 

Foreign Intelligence Program: Provided further, That the Secretary 

of Defense may waive this restriction on a case-by-case basis by certifying in writing to the Committees on Appropriations of the House 

of Representatives and the Senate that it is in the national security 

interest to do so. 

SEC. 8077. None of the funds made available in this Act may 

be used to approve or license the sale of the F–22 advanced tactical 

fighter to any foreign government.

SEC. 8078. (a) The Secretary of Defense may, on a case-by-case 

basis, waive with respect to a foreign country each limitation on the 

procurement of defense items from foreign sources provided in law 

if the Secretary determines that the application of the limitation 

with respect to that country would invalidate cooperative programs 

entered into between the Department of Defense and the foreign 

country, or would invalidate reciprocal trade agreements for the 

procurement of defense items entered into under section 2531 of title 

10, United States Code, and the country does not discriminate 

against the same or similar defense items produced in the United 

States for that country. 

(b) Subsection (a) applies with respect to—

(1) contracts and subcontracts entered into on or after the 

date of the enactment of this Act; and 

(2) options for the procurement of items that are exercised 

after such date under contracts that are entered into before such 

date if the option prices are adjusted for any reason other than 

the application of a waiver granted under subsection (a). 

(c) Subsection (a) does not apply to a limitation regarding construction of public vessels, ball and roller bearings, food, and clothing or textile materials as defined by section 11 (chapters 50–65) of 

the Harmonized Tariff Schedule and products classified under 

headings 4010, 4202, 4203, 6401 through 6406, 6505, 7019, 7218 

through 7229, 7304.41 through 7304.49, 7306.40, 7502 through 

7508, 8105, 8108, 8109, 8211, 8215, and 9404. 

SEC. 8079. Funds made available to the Civil Air Patrol in this 

Act under the heading ‘‘Drug Interdiction and Counter-Drug Activities, Defense’’ may be used for the Civil Air Patrol Corporation’s 

counterdrug program, including its demand reduction program involving youth programs, as well as operational and training drug 

reconnaissance missions for Federal, State, and local government 

agencies; and for equipment needed for mission support or performance: Provided, That the Department of the Air Force should waive 

reimbursement from the Federal, State, and local government agencies for the use of these funds. 

SEC. 8080. (a) PROHIBITION.—None of the funds made available 

by this Act may be used to support any training program involving 

a unit of the security forces of a foreign country if the Secretary of 

Defense has received credible information from the Department of 

State that the unit has committed a gross violation of human rights, 

unless all necessary corrective steps have been taken. 

(b) MONITORING.—The Secretary of Defense, in consultation 

with the Secretary of State, shall ensure that prior to a decision to 

conduct any training program referred to in subsection (a), full consideration is given to all credible information available to the DeVerDate 0ct 09 2002 14:16 Oct 15, 2002 Jkt 019006 PO 00000 Frm 00039 Fmt 6659 Sfmt 6603 E:\PICKUP\HR732.XXX HR732
38

partment of State relating to human rights violations by foreign security forces. 

(c) WAIVER.—The Secretary of Defense, after consultation with 

the Secretary of State, may waive the prohibition in subsection (a) 

if he determines that such waiver is required by extraordinary circumstances. 

(d) REPORT.—Not more than 15 days after the exercise of any 

waiver under subsection (c), the Secretary of Defense shall submit 

a report to the congressional defense committees describing the extraordinary circumstances, the purpose and duration of the training 

program, the United States forces and the foreign security forces involved in the training program, and the information relating to 

human rights violations that necessitates the waiver. 

SEC. 8081. The Secretary of Defense, in coordination with the 

Secretary of Health and Human Services, may carry out a program 

to distribute surplus dental equipment of the Department of Defense, at no cost to the Department of Defense, to Indian Health 

Service facilities and to federally-qualified health centers (within 

the meaning of section 1905(l)(2)(B) of the Social Security Act (42 

U.S.C. 1396d(l)(2)(B))). 

SEC. 8082. The total amount appropriated in this Act is hereby reduced by $338,000,000 to reflect savings from favorable foreign 

currency fluctuations, to be derived as follows: ‘‘Military Personnel, Army’’, $80,000,000; ‘‘Military Personnel, Navy’’, $6,500,000; ‘‘Military Personnel, Marine Corps’’, $11,000,000; ‘‘Military Personnel, Air Force’’, $29,000,000; ‘‘Operation and Maintenance, Army’’, $102,000,000; ‘‘Operation and Maintenance, Navy’’, $21,500,000; ‘‘Operation and Maintenance, Marine Corps’’, $2,000,000; ‘‘Operation and Maintenance, Air Force’’, $46,000,000; and ‘‘Operation and Maintenance, Defense-Wide’’, $40,000,000. 

SEC. 8083. None of the funds appropriated or made available 

in this Act to the Department of the Navy shall be used to develop, 

lease or procure the T–AKE class of ships unless the main propulsion diesel engines and propulsors are manufactured in the United 

States by a domestically operated entity: Provided, That the Secretary of Defense may waive this restriction on a case-by-case basis 

by certifying in writing to the Committees on Appropriations of the 

House of Representatives and the Senate that adequate domestic 

supplies are not available to meet Department of Defense requirements on a timely basis and that such an acquisition must be made 

in order to acquire capability for national security purposes or there 

exists a significant cost or quality difference. 

SEC. 8084. None of the funds appropriated or otherwise made 

available by this or other Department of Defense Appropriations 

Acts may be obligated or expended for the purpose of performing repairs or maintenance to military family housing units of the Department of Defense, including areas in such military family housing units that may be used for the purpose of conducting official Department of Defense business. 

SEC. 8085. Notwithstanding any other provision of law, funds 

appropriated in this Act under the heading ‘‘Research, Development, 

Test and Evaluation, Defense-Wide’’ for any advanced concept technology demonstration project may only be obligated 30 days after a 

39

report, including a description of the project and its estimated annual and total cost, has been provided in writing to the congressional defense committees: Provided, That the Secretary of Defense 

may waive this restriction on a case-by-case basis by certifying to 

the congressional defense committees that it is in the national interest to do so. 

SEC. 8086. Notwithstanding any other provision of law, for the 

purpose of establishing all Department of Defense policies governing 

the provision of care provided by and financed under the military 

health care system’s case management program under 10 U.S.C. 

1079(a)(17), the term ‘‘custodial care’’ shall be defined as care designed essentially to assist an individual in meeting the activities 

of daily living and which does not require the supervision of trained 

medical, nursing, paramedical or other specially trained individuals: Provided, That the case management program shall provide 

that members and retired members of the military services, and 

their dependents and survivors, have access to all medically necessary health care through the health care delivery system of the 

military services regardless of the health care status of the person 

seeking the health care: Provided further, That the case management program shall be the primary obligor for payment of medically 

necessary services and shall not be considered as secondarily liable 

to title XIX of the Social Security Act, other welfare programs or 

charity based care.

SEC. 8087. During the current fiscal year, refunds attributable 

to the use of the Government travel card, refunds attributable to the 

use of the Government Purchase Card and refunds attributable to 

official Government travel arranged by Government Contracted 

Travel Management Centers may be credited to operation and maintenance accounts of the Department of Defense which are current 

when the refunds are received. 

SEC. 8088. (a) REGISTERING FINANCIAL MANAGEMENT INFORMATION TECHNOLOGY SYSTEMS WITH DOD CHIEF INFORMATION OFFICER.—None of the funds appropriated in this Act may be used for 

a mission critical or mission essential financial management information technology system (including a system funded by the defense 

working capital fund) that is not registered with the Chief Information Officer of the Department of Defense. A system shall be considered to be registered with that officer upon the furnishing to that 

officer of notice of the system, together with such information concerning the system as the Secretary of Defense may prescribe. A financial management information technology system shall be considered a mission critical or mission essential information technology 

system as defined by the Under Secretary of Defense (Comptroller). 

(b) CERTIFICATIONS AS TO COMPLIANCE WITH FINANCIAL MANAGEMENT MODERNIZATION PLAN.—

(1) During the current fiscal year, a financial management 

major automated information system may not receive Milestone 

A approval, Milestone B approval, or full rate production, or 

their equivalent, within the Department of Defense until the 

Under Secretary of Defense (Comptroller) certifies, with respect 

to that milestone, that the system is being developed and managed in accordance with the Department’s Financial Management Modernization Plan. The Under Secretary of Defense 

40

(Comptroller) may require additional certifications, as appropriate, with respect to any such system. 

(2) The Chief Information Officer shall provide the congressional defense committees timely notification of certifications 

under paragraph (1). 

(c) CERTIFICATIONS AS TO COMPLIANCE WITH CLINGER-COHEN

ACT.—(1) During the current fiscal year, a major automated information system may not receive Milestone A approval, Milestone B 

approval, or full rate production approval, or their equivalent, within the Department of Defense until the Chief Information Officer 

certifies, with respect to that milestone, that the system is being developed in accordance with the Clinger-Cohen Act of 1996 (40 

U.S.C. 1401 et seq.). The Chief Information Officer may require additional certifications, as appropriate, with respect to any such system. 

(2) The Chief Information Officer shall provide the congressional defense committees timely notification of certifications under 

paragraph (1). Each such notification shall include, at a minimum, 

the funding baseline and milestone schedule for each system covered 

by such a certification and confirmation that the following steps 

have been taken with respect to the system: 

(A) Business process reengineering. 

(B) An analysis of alternatives. 

(C) An economic analysis that includes a calculation of the 

return on investment. 

(D) Performance measures. 

(E) An information assurance strategy consistent with the 

Department’s Global Information Grid. 

(d) DEFINITIONS.—For purposes of this section: 

(1) The term ‘‘Chief Information Officer’’ means the senior 

official of the Department of Defense designated by the Secretary of Defense pursuant to section 3506 of title 44, United 

States Code. 

(2) The term ‘‘information technology system’’ has the 

meaning given the term ‘‘information technology’’ in section 

5002 of the Clinger-Cohen Act of 1996 (40 U.S.C. 1401). 

(3) The term ‘‘major automated information system’’ has the 

meaning given that term in Department of Defense Directive 

5000.1. 

SEC. 8089. During the current fiscal year, none of the funds 

available to the Department of Defense may be used to provide support to another department or agency of the United States if such 

department or agency is more than 90 days in arrears in making 

payment to the Department of Defense for goods or services previously provided to such department or agency on a reimbursable 

basis: Provided, That this restriction shall not apply if the department is authorized by law to provide support to such department or 

agency on a nonreimbursable basis, and is providing the requested 

support pursuant to such authority: Provided further, That the Secretary of Defense may waive this restriction on a case-by-case basis 

by certifying in writing to the Committees on Appropriations of the 

House of Representatives and the Senate that it is in the national 

security interest to do so. 

SEC. 8090. None of the funds provided in this Act may be used 

to transfer to any nongovernmental entity ammunition held by the 

41

Department of Defense that has a center-fire cartridge and a United 

States military nomenclature designation of ‘‘armor penetrator’’, ‘‘armor piercing (AP)’’, ‘‘armor piercing incendiary (API)’’, or ‘‘armor-piercing incendiary-tracer (API–T)’’, except to an entity performing demilitarization services for the Department of Defense 

under a contract that requires the entity to demonstrate to the satisfaction of the Department of Defense that armor piercing projectiles 

are either: (1) rendered incapable of reuse by the demilitarization 

process; or (2) used to manufacture ammunition pursuant to a contract with the Department of Defense or the manufacture of ammunition for export pursuant to a License for Permanent Export of Unclassified Military Articles issued by the Department of State. 

SEC. 8091. Notwithstanding any other provision of law, the 

Chief of the National Guard Bureau, or his designee, may waive 

payment of all or part of the consideration that otherwise would be 

required under 10 U.S.C. 2667, in the case of a lease of personal 

property for a period not in excess of 1 year to any organization 

specified in 32 U.S.C. 508(d), or any other youth, social, or fraternal 

non-profit organization as may be approved by the Chief of the National Guard Bureau, or his designee, on a case-by-case basis. 

SEC. 8092. None of the funds appropriated by this Act shall be 

used for the support of any nonappropriated funds activity of the 

Department of Defense that procures malt beverages and wine with 

nonappropriated funds for resale (including such alcoholic beverages sold by the drink) on a military installation located in the 

United States unless such malt beverages and wine are procured 

within that State, or in the case of the District of Columbia, within 

the District of Columbia, in which the military installation is located: Provided, That in a case in which the military installation 

is located in more than one State, purchases may be made in any 

State in which the installation is located: Provided further, That 

such local procurement requirements for malt beverages and wine 

shall apply to all alcoholic beverages only for military installations 

in States which are not contiguous with another State: Provided 

further, That alcoholic beverages other than wine and malt beverages, in contiguous States and the District of Columbia shall be 

procured from the most competitive source, price and other factors 

considered. 

SEC. 8093. During the current fiscal year and hereafter, under 

regulations prescribed by the Secretary of Defense, the Center of Excellence for Disaster Management and Humanitarian Assistance 

may also pay, or authorize payment for, the expenses of providing 

or facilitating education and training for appropriate military and 

civilian personnel of foreign countries in disaster management, 

peace operations, and humanitarian assistance. 

SEC. 8094. (a) The Department of Defense is authorized to enter 

into agreements with the Department of Veterans Affairs and federally-funded health agencies providing services to Native Hawaiians 

for the purpose of establishing a partnership similar to the Alaska 

Federal Health Care Partnership, in order to maximize Federal resources in the provision of health care services by federally-funded 

health agencies, applying telemedicine technologies. For the purpose 

of this partnership, Native Hawaiians shall have the same status as 

other Native Americans who are eligible for the health care services 

provided by the Indian Health Service. 

42

(b) The Department of Defense is authorized to develop a consultation policy, consistent with Executive Order No. 13084 (issued 

May 14, 1998), with Native Hawaiians for the purpose of assuring 

maximum Native Hawaiian participation in the direction and administration of governmental services so as to render those services 

more responsive to the needs of the Native Hawaiian community. 

(c) For purposes of this section, the term ‘‘Native Hawaiian’’

means any individual who is a descendant of the aboriginal people 

who, prior to 1778, occupied and exercised sovereignty in the area 

that now comprises the State of Hawaii. 

(INCLUDING TRANSFER OF FUNDS)

SEC. 8095. Of the amounts appropriated in this Act under the 

heading ‘‘Research, Development, Test and Evaluation, DefenseWide’’, $136,000,000 shall be made available for the Arrow missile 

defense program: Provided, That of this amount, $66,000,000 shall 

be available for the purpose of continuing the Arrow System Improvement Program (ASIP), and $70,000,000 shall be available for 

the purpose of producing Arrow missile components in the United 

States and Arrow missile components and missiles in Israel to meet 

Israel’s defense requirements, consistent with each nation’s laws, 

regulations and procedures: Provided further, That funds made 

available under this provision for production of missiles and missile 

components may be transferred to appropriations available for the 

procurement of weapons and equipment, to be merged with and to 

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

appropriation to which transferred: Provided further, That the 

transfer authority provided under this provision is in addition to 

any other transfer authority contained in this Act. 

SEC. 8096. Funds available to the Department of Defense for 

the Global Positioning System during the current fiscal year may be 

used to fund civil requirements associated with the satellite and 

ground control segments of such system’s modernization program. 

(INCLUDING TRANSFER OF FUNDS)

SEC. 8097. Of the amounts appropriated in this Act under the 

heading, ‘‘Operation and Maintenance, Defense-Wide’’, $68,000,000 

shall remain available until expended: Provided, That notwithstanding any other provision of law, the Secretary of Defense is authorized to transfer such funds to other activities of the Federal 

Government. 

SEC. 8098. Section 8106 of the Department of Defense Appropriations Act, 1997 (titles I through VIII of the matter under subsection 101(b) of Public Law 104–208; 110 Stat. 3009–111; 10 

U.S.C. 113 note) shall continue in effect to apply to disbursements 

that are made by the Department of Defense in fiscal year 2003. 

SEC. 8099. In addition to amounts provided in this Act, 

$1,700,000 is hereby appropriated for ‘‘Defense Health Program’’, to 

remain available for obligation until expended: Provided, That notwithstanding any other provision of law, these funds shall be available only for a grant to the Fisher House Foundation, Inc., only for 

the construction and furnishing of additional Fisher Houses to meet 

the needs of military family members when confronted with the illness or hospitalization of an eligible military beneficiary. 

43

SEC. 8100. Notwithstanding any other provision of this Act, the 

total amount appropriated in this Act is hereby reduced by 

$850,000,000, to reflect savings to be achieved from business process 

reforms, management efficiencies, and procurement of administrative and management support, to be distributed as follows: 

‘‘Operation and Maintenance, Army’’, $26,000,000; 

‘‘Operation and Maintenance, Navy’’, $60,300,000; 

‘‘Operation and Maintenance, Marine Corps’’, $8,400,000; 

‘‘Operation and Maintenance, Air Force’’, $91,200,000; 

‘‘Operation and Maintenance, Defense-Wide’’, $199,000,000; 

‘‘Operation and Maintenance, Army Reserve’’, $5,900,000; 

‘‘Operation and Maintenance, Marine Corps Reserve’’, 

$900,000; 

‘‘Operation and Maintenance, Air Force Reserve’’, 

$1,000,000; 

‘‘Operation and Maintenance, Army National Guard’’, 

$4,300,000;

‘‘Operation and Maintenance, Air National Guard’’, 

$2,600,000; 

‘‘Aircraft Procurement, Army’’, $3,700,000; 

‘‘Missile Procurement, Army’’, $1,100,000; 

‘‘Procurement of Weapons and Tracked Combat Vehicles, 

Army’’, $3,100,000; 

‘‘Other Procurement, Army’’, $17,700,000; 

‘‘Aircraft Procurement, Navy’’, $22,800,000; 

‘‘Weapons Procurement, Navy’’, $4,800,000; 

‘‘Procurement of Ammunition, Navy and Marine Corps’’, 

$1,000,000; 

‘‘Shipbuilding and Conversion, Navy’’, $15,700,000; 

‘‘Other Procurement, Navy’’, $7,200,000; 

‘‘Procurement, Marine Corps’’, $2,600,000; 

‘‘Aircraft Procurement, Air Force’’, $9,700,000; 

‘‘Missile Procurement, Air Force’’, $6,200,000; 

‘‘Other Procurement, Air Force’’, $6,200,000; 

‘‘Procurement, Defense-Wide’’, $1,200,000; 

‘‘Research, Development, Test and Evaluation, Army’’, 

$23,500,000; 

‘‘Research, Development, Test and Evaluation, Navy’’, 

$55,700,000; 

‘‘Research, Development, Test and Evaluation, Air Force’’, 

$66,200,000; 

‘‘Research, Development, Test and Evaluation, DefenseWide’’, $154,000,000; 

‘‘Operational Test and Evaluation, Defense’’, $5,000,000; 

‘‘National Defense Sealift Fund’’, $1,000,000; 

‘‘Defense Health Program’’, $12,000,000; 

‘‘Chemical Agents and Munitions Destruction, Army’’, 

$20,000,000; and 

‘‘Drug Interdiction and Counter-Drug Activities, Defense’’, 

$10,000,000:

Provided, That these reductions shall be applied proportionally to 

each budget activity, activity group and subactivity group and each 

program, project, and activity within each appropriation account: 

Provided further, That none of the funds provided in this Act may 

44

be used for consulting and advisory services for legislative affairs 

and legislative liaison functions. 

(INCLUDING TRANSFER OF FUNDS)

SEC. 8101. Of the amounts appropriated in this Act under the 

heading ‘‘Shipbuilding and Conversion, Navy’’, $1,279,899,000 shall 

be available until September 30, 2003, to fund prior year shipbuilding cost increases: Provided, That upon enactment of this Act, 

the Secretary of the Navy shall transfer such funds to the following 

appropriations in the amounts specified: Provided further, That the 

amounts transferred shall be merged with and be available for the 

same purposes as the appropriations to which transferred: 

To: 

Under the heading, ‘‘Shipbuilding and Conversion, 

Navy, 1996/03’’: 

LPD–17 Amphibious Transport Dock Ship Pro- gram, $300,681,000; 

Under the heading, ‘‘Shipbuilding and Conversion, 

Navy, 1998/03’’: 

DDG–51 Destroyer Program, $76,100,000; New SSN, $190,882,000; 

Under the heading, ‘‘Shipbuilding and Conversion, 

Navy, 1999/03’’: 

DDG–51 Destroyer Program, $93,736,000; 

LPD–17 Amphibious Transport Dock Ship Pro- gram, $82,000,000; New SSN, $135,800,000; 

Under the heading, ‘‘Shipbuilding and Conversion, 

Navy, 2000/03’’: 

DDG–51 Destroyer Program, $51,724,000; 

LPD–17 Amphibious Transport Dock Ship Pro- gram, $187,000,000; 

Under the heading, ‘‘Shipbuilding and Conversion, 

Navy, 2001/03’’: 

DDG–51 Destroyer Program, $63,976,000; and 

Under the heading, ‘‘Shipbuilding and Conversion, 

Navy, 2002/03’’: 

DDG–51 Destroyer Program, $98,000,000. 

SEC. 8102. The Secretary of the Navy may settle, or compromise, and pay any and all admiralty claims under 10 U.S.C. 

7622 arising out of the collision involving the U.S.S. 

GREENEVILLE and the EHIME MARU, in any amount and without regard to the monetary limitations in subsections (a) and (b) of 

that section: Provided, That such payments shall be made from 

funds available to the Department of the Navy for operation and 

maintenance. 

SEC. 8103. The total amount appropriated in title II of this Act 

is hereby reduced by $97,000,000, to reflect savings attributable to 

improved supervision in determining appropriate purchases to be 

made using the Government purchase card, to be derived as follows:

‘‘Operation and Maintenance, Army’’, $24,000,000; 

‘‘Operation and Maintenance, Navy’’, $29,000,000; 

‘‘Operation and Maintenance, Marine Corps’’, $3,000,000; 

‘‘Operation and Maintenance, Air Force’’, $27,000,000; and 

‘‘Operation and Maintenance, Defense-Wide’’, $14,000,000. 

45

SEC. 8104. Funds provided for the current fiscal year or hereafter for Operation and maintenance for the Armed Forces may be 

used, notwithstanding any other provision of law, for the purchase 

of ultralightweight camouflage net systems as unit spares. 

(INCLUDING TRANSFER OF FUNDS)

SEC. 8105. During the current fiscal year and for fiscal years 

2004 and 2005, notwithstanding any other provision of law, the 

Secretary of Defense may transfer not more than $20,000,000 of unobligated balances remaining in a Research, Development, Test and 

Evaluation, Army appropriation account during the last fiscal year 

before the account closes under section 1552 of title 31 United States 

Code, to a current Research, Development, Test and Evaluation, 

Army appropriation account to be used only for the continuation of 

the Venture Capital Fund demonstration, as originally approved in 

Section 8150 of Public Law 107–117, to pursue high payoff technology and innovations in science and technology: Provided, That 

any such transfer shall be made not later than July 31 of each year: 

Provided further, That funds so transferred shall be merged with 

and shall be available for the same purposes and for the same time 

period as the appropriation to which transferred: Provided further, 

That the transfer authority provided in this section is in addition 

to any other transfer authority available to the Department of Defense: Provided further, That no funds for programs, projects, or activities designated as special congressional interest items in DD 

Form 1414 shall be eligible for transfer under the authority of this 

section: Provided further, That any unobligated balances transferred under this authority may be restored to the original appropriation if required to cover unexpected upward adjustments: Provided further, That the Secretary of the Army shall provide an annual report to the House and Senate Appropriations Committees no 

later than 15 days prior to the annual transfer of funds under authority of this section describing the sources and amounts of funds 

proposed to be transfered, summarizing the projects funded under 

this demonstration program (including the name and location of 

project sponsors) to date, a description of the major program accomplishments to date, and an overall assessment of the benefits of this 

demonstration program compared to the goals expressed in the legislative history accompanying Section 8150 of Public Law 107–117. 

SEC. 8106. Notwithstanding any other provision of law or regulation, the Secretary of Defense may exercise the provisions of 38 

U.S.C. 7403(g) for occupations listed in 38 U.S.C. 7403(a)(2) as well 

as the following: 

Pharmacists, Audiologists, and Dental Hygienists. 

(A) The requirements of 38 U.S.C. 7403(g)(1)(A) shall 

apply. 

(B) The limitations of 38 U.S.C. 7403(g)(1)(B) shall not 

apply. 

SEC. 8107. Funds appropriated by this Act, or made available 

by the transfer of funds in this Act, for intelligence activities are 

deemed to be specifically authorized by the Congress for purposes of 

section 504 of the National Security Act of 1947 (50 U.S.C. 414) 

during fiscal year 2003 until the enactment of the Intelligence Authorization Act for fiscal year 2003. 

46

SEC. 8108. In addition to funds made available elsewhere in 

this Act $7,750,000 is hereby appropriated and shall remain available until expended to provide assistance, by grant or otherwise 

(such as, but not limited to, the provision of funds for repairs, maintenance, construction, and/or for the purchase of information technology, text books, teaching resources), to public schools that have 

unusually high concentrations of special needs military dependents 

enrolled: Provided, That in selecting school systems to receive such 

assistance, special consideration shall be given to school systems in 

States that are considered overseas assignments, and all schools 

within these school systems shall be eligible for assistance: Provided 

further, That up to $2,000,000 shall be available for the Department 

of Defense to establish a non-profit trust fund to assist in the publicprivate funding of public school repair and maintenance projects, or 

provide directly to non-profit organizations who in return will use 

these monies to provide assistance in the form of repair, maintenance, or renovation to public school systems that have high concentrations of special needs military dependents and are located in 

States that are considered overseas assignments, and of which 2 

percent shall be available to support the administration and execution of the funds: Provided further, That to the extent a federal 

agency provides this assistance, by contract, grant, or otherwise, it 

may accept and expend non-federal funds in combination with these 

federal funds to provide assistance for the authorized purpose, if the 

non-federal entity requests such assistance and the non-federal 

funds are provided on a reimbursable basis: Provided further, That 

$2,750,000 shall be available for a grant to the Central Kitsap 

School District, Washington. 

SEC. 8109. Notwithstanding any other provision in this Act, the 

total amount appropriated in this Act is hereby reduced by 

$400,000,000, to reduce cost growth in information technology development, to be distributed as follows: 

‘‘Operation and Maintenance, Defense-Wide’’, $19,500,000; 

‘‘Other Procurement, Army’’, $53,200,000; 

‘‘Other Procurement, Navy’’, $20,600,000; 

‘‘Procurement, Marine Corps’’, $3,400,000; 

‘‘Other Procurement, Air Force’’, $12,000,000; 

‘‘Procurement, Defense-Wide’’, $3,500,000; 

‘‘Research, Development, Test and Evaluation, Army’’, 

$17,700,000; 

‘‘Research, Development, Test and Evaluation, Navy’’, 

$25,600,000; 

‘‘Research, Development, Test and Evaluation, Air Force’’, 

$27,200,000; 

‘‘Research, Development, Test and Evaluation, DefenseWide’’, $36,600,000;

‘‘Defense Working Capital Funds’’, $148,600,000; and 

‘‘Defense Health Program’’, $32,100,000: 

Provided, That these reductions shall be applied proportionally to 

each budget activity, activity group and subactivity group and each 

program, project, and activity within each appropriation account. 

SEC. 8110. Notwithstanding section 1116(c) of title 10, United 

States Code, payments into the Department of Defense Medicare-Eligible Retiree Health Care Fund for fiscal year 2003 under section 

47

1116(a) of such title shall be made from funds available in this Act 

for the pay of military personnel. 

SEC. 8111. None of the funds in this Act may be used to initiate 

a new start program without prior notification to the Office of Secretary of Defense and the congressional defense committees. 

SEC. 8112. The amount appropriated in title II of this Act is hereby reduced by $120,000,000, to reflect Working Capital Fund 

cash balance and rate stabilization adjustments, to be derived as 

follows: ‘‘Operation and Maintenance, Navy’’, $120,000,000. 

SEC. 8113. Notwithstanding any other provision in this Act, the 

total amount appropriated in this Act is hereby reduced by 

$48,000,000, to reduce excess funded carryover, to be derived as follows: ‘‘Operation and Maintenance, Army’’, $48,000,000. 

SEC. 8114. Of the amounts appropriated in title II of the Act, not less than $1,000,000,000 is available for operations of the Department of Defense to prosecute the war on terrorism. 

SEC. 8115. (a) In addition to the amounts provided elsewhere in this Act, the amount of $3,400,000 is hereby appropriated to the 

Department of Defense for ‘‘Operation and Maintenance, Army National Guard’’. Such amount shall be made available to the Secretary of the Army only to make a grant in the amount of 

$3,400,000 to the entity specified in subsection (b) to facilitate access 

by veterans to opportunities for skilled employment in the construction industry. 

(b) The entity referred to in subsection (a) is the Center for Military Recruitment, Assessment and Veterans Employment, a nonprofit labor-management co-operation committee provided for by section 302(c)(9) of the Labor-Management Relations Act, 1947 (29 

U.S.C. 186(c)(9)), for the purposes set forth in section 6(b) of the 

Labor Management Cooperation Act of 1978 (29 U.S.C. 175a note). 

SEC. 8116. (a) During the current fiscal year, funds available 

to the Secretary of a military department for Operation and Maintenance may be used for the purposes stated in subsection (b) to support chaplain-led programs to assist members of the Armed Forces 

and their immediate family members in building and maintaining 

a strong family structure. 

(b) The purposes referred to in subsection (a) are costs of transportation, food, lodging, supplies, fees, and training materials for 

members of the Armed Forces and their family members while participating in such programs, including participation at retreats and 

conferences. 

SEC. 8117. Section 8159 of the Department of Defense Appropriations Act, 2002 (division A of Public Law 107–117; 115 Stat. 

2284), is revised as follows: 

(1) in subsection (c) by inserting at the end of paragraph 

(1) the following new sentence: ‘‘Notwithstanding the provisions 

of Section 3324 of Title 31, United States Code, payment for the 

acquisition of leasehold interests under this section may be 

made for each annual term up to one year in advance.’’ (2) by adding the following paragraph (g): ‘‘(g) Notwithstanding any other provision of law, any payments 

required for a lease entered into under this Section, or any payments made pursuant to subsection (c)(3) above, may be made from 

48

appropriations available for operation and maintenance or for lease 

or procurement of aircraft at the time that the lease takes effect; appropriations available for operation and maintenance or for lease or 

procurement of aircraft at the time that the payment is due; or 

funds appropriated for those payments.’’. 

SEC. 8118. (a) LIMITATION ON ADDITIONAL NMCI CONTRACT

WORK STATIONS.—Notwithstanding section 814 of the Floyd D. 

Spence National Defense Authorization Act for Fiscal Year 2001 (as 

enacted into law by Public Law 106–398; 114 Stat. 1654A–215) or 

any other provision of law, the total number of work stations provided under the Navy-Marine Corps Intranet contract (as defined in 

subsection (i) of such section 814) may not exceed 160,000 work stations until the Under Secretary of Defense for Acquisition, Technology, and Logistics and the Chief Information Officer of the Department of Defense certify to the congressional defense committees 

that all of the conditions specified in subsection (b) have been satisfied. 

(b) CONDITIONS.—The conditions referred to in subsection (a) 

are the following:

(1) The Commander of the Navy Operational Test and 

Evaluation Force conducts an operational assessment of the 

work stations that have been fully transitioned to the Navy-Marine Corps Intranet, as defined in the Test and Evaluation 

Strategy Plan for the Navy-Marine Corps Intranet approved on 

September 4, 2002. 

(2) The results of the assessment are submitted to the 

Under Secretary of Defense for Acquisition, Technology, and Logistics and the Chief Information Officer of the Department of 

Defense, and they determine that the results of the assessment 

are acceptable. 

SEC. 8119. None of the funds in this Act, excluding funds provided for advance procurement of fiscal year 2004 aircraft, may be 

obligated for acquisition of more than 16 F–22 aircraft until the 

Under Secretary of Defense for Acquisition, Technology, and Logistics has provided to the congressional defense committees: 

(a) A formal risk assessment which identifies and characterizes 

the potential cost, technical, schedule or other significant risks resulting from increasing the F–22 procurement quantities prior to the 

conclusion of Dedicated Initial Operational Test and Evaluation 

(DIOT&E) of the aircraft: Provided, That such risk assessment shall 

evaluate, based on the best available current information: (1) the 

range of potential additional program costs (compared to the program costs assumed in the President’s fiscal year 2003 budget) that 

could result from retrofit modifications to F–22 production aircraft 

that are placed under contract or delivered to the government prior 

to the conclusion of DIOT&E; and (2) a cost-benefit analysis comparing, in terms of unit cost and total program cost, the cost advantages of increasing aircraft production at this time to the potential 

cost of retrofitting production aircraft once DIOT&E has been completed; and 

(b) Certification that increasing the F–22 production quantity 

for fiscal year 2003 beyond 16 airplanes involves lower risk and 

lower total program cost than staying at that quantity, or he submits a revised production plan, funding plan and test schedule. 

49

(INCLUDING TRANSFER OF FUNDS)

SEC. 8120. Section 305(a) of the Emergency Supplemental Act, 

2002 (division B of Public Law 107–117; 115 Stat. 2300), is amended by adding at the end the following new sentences: ‘‘From 

amounts transferred to the Pentagon Reservation Maintenance Revolving Fund pursuant to the preceding sentence, not to exceed 

$305,000,000 may be transferred to the Defense Emergency Response Fund, but only in amounts necessary to reimburse that fund 

(and the category of that fund designated as ‘Pentagon Repair/Upgrade’) for expenses charged to that fund (and that category) between September 11, 2001, and February 19, 2002, for reconstruction costs of the Pentagon Reservation. Funds transferred to the Defense Emergency Response Fund pursuant to this section shall be 

available only for reconstruction, recovery, force protection, or security enhancements for the Pentagon Reservation.’’. 

SEC. 8121. FINANCING AND FIELDING OF KEY ARMY CAPABILITIES.—The Department of Defense and the Department of the Army 

shall make future budgetary and programming plans to fully finance the Non-Line of Sight (NLOS) Objective Force cannon and resupply vehicle program in order to field this system in the 2008 

timeframe. As an interim capability to enhance Army lethality, survivability, and mobility for light and medium forces before complete 

fielding of the Objective Force, the Army shall ensure that budgetary 

and programmatic plans will provide for no fewer than six Stryker 

Brigade Combat Teams to be fielded between 2003 and 2008. 

SEC. 8122. (a) MANAGEMENT OF CHEMICAL DEMILITARIZATION

ACTIVITIES AT BLUEGRASS ARMY DEPOT, KENTUCKY.—If a technology other than the baseline incineration program is selected for 

the destruction of lethal chemical munitions pursuant to section 142 

of the Strom Thurmond National Defense Authorization Act for Fiscal Year 1999 (Public Law 105–261; 50 U.S.C. 1521 note), the program manager for the Assembled Chemical Weapons Assessment 

shall be responsible for management of the construction, operation, 

and closure, and any contracting relating thereto, of chemical demilitarization activities at Bluegrass Army Depot, Kentucky, including management of the pilot-scale facility phase of the alternative 

technology. 

(b) MANAGEMENT OF CHEMICAL DEMILITARIZATION ACTIVITIES

AT PUEBLO DEPOT, COLORADO.—The program manager for the Assembled Chemical Weapons Assessment shall be responsible for 

management of the construction, operation, and closure, and any 

contracting relating thereto, of chemical demilitarization activities 

at Pueblo Army Depot, Colorado, including management of the 

pilot-scale facility phase of the alternative technology selected for the 

destruction of lethal chemical munitions. 

SEC. 8123. Of the total amount appropriated pursuant to this 

Act for any selected component of the Department of Defense that 

the Director of the Office of Management and Budget determines 

shall require audited financial statements under subsection (c) of 

section 3515 of title 31, United States Code, not more than 99 percent may be expended until the Inspector General of the Department 

of Defense certifies to the Congress of the United States that the 

head of the affected agency has made a formal decision as to whether to audit vouchers of the agency pursuant to section 3521(b) of 

50

title 31, United States Code: Provided, That such certification shall 

include a written assessment of the agency head’s decision by the Inspector General. 

SEC. 8124. Of the funds made available under the heading ‘‘Operation and Maintenance, Air Force’’, $8,000,000 shall be available 

to realign railroad track on Elmendorf Air Force Base and Fort 

Richardson. 

(TRANSFER OF FUNDS)

SEC. 8125. Upon enactment of this Act, the Secretary of the 

Navy shall make the following transfers of funds: Provided, That 

the amounts transferred shall be available for the same purpose as 

the appropriations to which transferred, and for the same time period as the appropriation from which transferred: Provided further, 

That the amounts shall be transferred between the following appropriations in the amount specified: 

From: 

Under the heading, ‘‘Shipbuilding and Conversion, 

Navy, 1994/2003’’: 

DDG–51 Destroyer program, $7,900,000;

LHD–1 Amphibious Assault Ship program, $6,500,000; 

Oceanographic Ship program, $3,416,000; 

Craft, outfitting, post delivery, first destination transportation, $1,800,000; 

Mine warfare command and control ship, $604,000; 

To: 

Under the heading, ‘‘Shipbuilding and Conversion, 

Navy, 1999/2003’’: 

LPD–17 Amphibious Transport Dock Ship pro- gram, $20,220,000. 

SEC. 8126. Of the amounts appropriated in Public Law 107–

206 under the heading ‘‘Defense Emergency Response Fund’’, an 

amount up to the fair market value of the leasehold interest in adjacent properties necessary for the force protection requirements of 

Tooele Army Depot, Utah, may be made available to resolve any 

property disputes associated with Tooele Army Depot, Utah, and to 

acquire such leasehold interest as required: Provided, That none of 

these funds may be used to acquire fee title to the properties. 

SEC. 8127. Up to $3,000,000 of the funds appropriated under 

the heading ‘‘Operation and Maintenance, Navy’’ in this Act for the 

Pacific Missile Range Facility may be made available to contract for 

the repair, maintenance, and operation of adjacent off-base water, 

drainage, and flood control systems critical to base operations. 

SEC. 8128. Of the total amount appropriated by this Act under 

the heading ‘‘Operation and Maintenance, Defense-Wide’’, 

$3,000,000 may be available for payments under section 363 of the 

Floyd D. Spence National Defense Authorization Act for Fiscal Year 

2001 (as enacted into law by Public Law 106–398; 114 Stat. 1654A–

77). 

SEC. 8129. In addition to the amounts appropriated or otherwise made available in this Act, $8,100,000, to remain available 

until September 30, 2003, is hereby appropriated to the Department 

of Defense: Provided, That the Secretary of Defense shall make 

51

grants in the amount of $2,800,000 to the American Red Cross for 

Armed Forces Emergency Services; $2,800,000 to the United Service 

Organizations, Incorporated; and $2,500,000 to the Intrepid SeaAir-Space Foundation. 

SEC. 8130. None of the funds appropriated in this Act under the 

heading ‘‘Overseas Contingency Operations Transfer Fund’’ may be 

transferred or obligated for Department of Defense expenses not directly related to the conduct of overseas contingencies: Provided, 

That the Secretary of Defense shall submit a report no later than 

30 days after the end of each fiscal quarter to the Committees on 

Appropriations of the Senate and House of Representatives that details any transfer of funds from the ‘‘Overseas Contingency Operations Transfer Fund’’: Provided further, That the report shall explain any transfer for the maintenance of real property, pay of civilian personnel, base operations support, and weapon, vehicle or 

equipment maintenance. 

SEC. 8131. For purposes of section 1553(b) of title 31, United 

States Code, any subdivision of appropriations made in this Act 

under the heading ‘‘Shipbuilding and Conversion, Navy’’ shall be 

considered to be for the same purpose as any subdivision under the 

heading ‘‘Shipbuilding and Conversion, Navy’’ appropriations in 

any prior year, and the 1 percent limitation shall apply to the total 

amount of the appropriation. 

SEC. 8132. The budget of the President for fiscal year 2004 submitted to the Congress pursuant to section 1105 of title 31, United 

States Code, and each annual budget request thereafter, shall include separate budget justification documents for costs of United 

States Armed Forces’ participation in contingency operations for the 

Military Personnel accounts, the Overseas Contingency Operations 

Transfer Fund, the Operation and Maintenance accounts, and the 

Procurement accounts: Provided, That these budget justification 

documents shall include a description of the funding requested for 

each anticipated contingency operation, for each military service, to 

include active duty and Guard and Reserve components, and for 

each appropriation account: Provided further, That these documents 

shall include estimated costs for each element of expense or object 

class, a reconciliation of increases and decreases for ongoing contingency operations, and programmatic data including, but not limited 

to troop strength for each active duty and Guard and Reserve component, and estimates of the major weapons systems deployed in 

support of each contingency: Provided further, That these documents 

shall include budget exhibits OP–5 and OP–32, as defined in the 

Department of Defense Financial Management Regulation, for the 

Overseas Contingency Operations Transfer Fund for fiscal years 

2002 and 2003. 

SEC. 8133. Notwithstanding any other provision in this Act, the 

total amount appropriated in this Act is hereby reduced by 

$59,260,000, to reduce cost growth in travel, to be distributed as follows: 

‘‘Operation and Maintenance, Army’’, $14,000,000; 

‘‘Operation and Maintenance, Navy’’, $9,000,000;

‘‘Operation and Maintenance, Marine Corps’’, $10,000,000; 

‘‘Operation and Maintenance, Air Force’’, $15,000,000; and 

‘‘Operation and Maintenance, Defense-Wide’’, $11,260,000. 

52

SEC. 8134. None of the funds in this Act may be used for research, development, test, evaluation, procurement or deployment of 

nuclear armed interceptors of a missile defense system. 

(INCLUDING RESCISSIONS)

SEC. 8135. (a) The total amount appropriated or otherwise 

made available in titles II, III, and IV of this Act is hereby reduced 

by $1,374,000,000 to reflect revised economic assumptions: Provided, That the Secretary of Defense shall allocate this reduction 

proportionately to each budget activity, activity group, subactivity 

group, and each program, project, and activity within each applicable appropriation account: Provided further, That appropriations 

made available in this Act for the pay and benefits of military personnel are exempt from reductions under this provision. 

(b) Of the funds provided in the Department of Defense Appropriations Act, 2002, (division A of Public Law 107–117), 

$300,000,000 are rescinded from amounts made available under titles III and IV of that Act: Provided, That the Secretary of Defense 

shall allocate this rescission proportionately by program, project, 

and activity. 

SEC. 8136. During the current fiscal year, section 2533a(f) of 

Title 10, United States Code, shall not apply to any fish, shellfish, 

or seafood product. This section is applicable to contracts and subcontracts for the procurement of commercial items notwithstanding 

section 34 of the Office of Federal Procurement Policy Act (41 U.S.C. 

430). 

SEC. 8137. None of the funds appropriated by this Act may be 

used to convert the 939th Combat Search and Rescue Wing of the 

Air Force Reserve until the Secretary of the Air Force certifies to the 

Congress the following: (a) that a functionally comparable search 

and rescue capability is available in the 939th Search and Rescue 

Wing’s area of responsibility; (b) that any new aircraft assigned to 

the unit will comply with local environmental and noise standards; 

and (c) that the Air Force has developed a plan for the transition 

of personnel and manpower billets currently assigned to this unit. 

SEC. 8138. NAVY DRY-DOCK AFDL–47 (a) REQUIREMENT FOR

SALE.—Notwithstanding any other provision of law, the Secretary of 

the Navy shall sell the Navy Dry-dock AFDL–47, located in Charleston, South Carolina, to Detyens Shipyards, Inc., the current lessee 

of the dry-dock from the Navy. 

(b) CONSIDERATION.—As consideration for the sale of the drydock under subsection (a), the Secretary shall receive an amount 

equal to the fair market value of the dry-dock at the time of the sale, 

as determined by the Secretary, taking into account amounts paid 

by, or due and owing from, the lessee. 

SEC. 8139. From funds made available in this Act for the Office 

of Economic Adjustment under the heading ‘‘Operation and Maintenance, Defense-Wide’’, $100,000 shall be available for the elimination of asbestos at former Battery 204, Odiorne Point, New 

Hampshire. 

SEC. 8140. The Secretary of Defense may, using amounts appropriated or otherwise made available by this Act, make a grant to the 

National D-Day Museum in the amount of $3,000,000. 

SEC. 8141. (a) PRELIMINARY STUDY AND ANALYSIS REQUIRED.—

The Secretary of the Army shall carry out a preliminary engineering 

53

study and environmental analysis regarding the establishment of a 

connector road between United States Route 1 and Telegraph Road 

in the vicinity of Fort Belvoir, Virginia. 

(b) FUNDING.—Of the amount appropriated by title II under the 

heading ‘‘OPERATION AND MAINTENANCE, ARMY’’, up to $5,000,000 

may be available for the preliminary study and analysis required 

by subsection (a). 

SEC. 8142. Of the amount appropriated by title V under the 

heading ‘‘NATIONAL DEFENSE SEALIFT FUND’’, up to $10,000,000 

may be available for implementing the recommendations resulting 

from the Navy’s Non-Self Deployable Watercraft (NDSW) Study and 

the Joint Chiefs of Staff Focused Logistics Study, which are to determine the requirements of the Navy for providing lift support for 

mine warfare ships and other vessels. 

SEC. 8143. (a) Congress finds that— (1) the Medal of Honor is the highest award for valor in action against an enemy force which can be bestowed upon an individual serving in the Armed Forces of the United States; 

(2) the Medal of Honor was established by Congress during 

the Civil War to recognize soldiers who had distinguished themselves by gallantry in action; 

(3) the Medal of Honor was conceived by Senator James 

Grimes of the State of Iowa in 1861; and 

(4) the Medal of Honor is the Nation’s highest military 

honor, awarded for acts of personal bravery or self-sacrifice 

above and beyond the call of duty. 

(b)(1) Chapter 9 of title 36, United States Code, is amended by 

adding at the end the following new section: 

‘‘§ 903. Designation of Medal of Honor Flag 

‘‘(a) DESIGNATION.—The Secretary of Defense shall design and 

designate a flag as the Medal of Honor Flag. In selecting the design 

for the flag, the Secretary shall consider designs submitted by the 

general public. ‘‘(b) PRESENTATION.—The Medal of Honor Flag shall be presented as specified in sections 3755, 6257, and 8755 of title 10 and 

section 505 of title 14.’’. (2) The table of sections at the beginning of such chapter is 

amended by adding at the end the following new item:

‘‘903. Designation of Medal of Honor Flag.’’.

(c)(1)(A) Chapter 357 of title 10, United States Code, is amended by adding at the end the following new section: 

‘‘§ 3755. Medal of honor: presentation of Medal of Honor Flag 

‘‘The President shall provide for the presentation of the Medal 

of Honor Flag designated under section 903 of title 36 to each person to whom a medal of honor is awarded under section 3741 of 

this title after the date of the enactment of this section. Presentation 

of the flag shall be made at the same time as the presentation of 

the medal under section 3741 or 3752(a) of this title.’’.

(B) The table of sections at the beginning of such chapter is 

amended by adding at the end the following new item:

‘‘3755. Medal of honor: presentation of Medal of Honor Flag.’’.

(2)(A) Chapter 567 of such title is amended by adding at the 

end the following new section: 

54

‘‘§ 6257. Medal of honor: presentation of Medal of Honor Flag 

‘‘The President shall provide for the presentation of the Medal 

of Honor Flag designated under section 903 of title 36 to each person to whom a medal of honor is awarded under section 6241 of 

this title after the date of the enactment of this section. Presentation 

of the flag shall be made at the same time as the presentation of 

the medal under section 6241 or 6250 of this title.’’. 

(B) The table of sections at the beginning of such chapter is 

amended by adding at the end the following new item:

‘‘6257. Medal of honor: presentation of Medal of Honor Flag.’’.

(3)(A) Chapter 857 of title 10, United States Code, is amended 

by adding at the end the following new section: 

‘‘§ 8755. Medal of honor: presentation of Medal of Honor Flag 

‘‘The President shall provide for the presentation of the Medal 

of Honor Flag designated under section 903 of title 36 to each person to whom a medal of honor is awarded under section 8741 of 

this title after the date of the enactment of this section. Presentation 

of the flag shall be made at the same time as the presentation of 

the medal under section 8741 or 8752(a) of this title.’’. 

(B) The table of sections at the beginning of such chapter is 

amended by adding at the end the following new item:

‘‘8755. Medal of honor: presentation of Medal of Honor Flag.’’.

(4)(A) Chapter 13 of title 14, United States Code, is amended 

by inserting after section 504 the following new section: 

‘‘§ 505. Medal of honor: presentation of Medal of Honor Flag 

‘‘The President shall provide for the presentation of the Medal 

of Honor Flag designated under section 903 of title 36 to each person to whom a medal of honor is awarded under section 491 of this 

title after the date of the enactment of this section. Presentation of 

the flag shall be made at the same time as the presentation of the 

medal under section 491 or 498 of this title.’’. 

(B) The table of sections at the beginning of such chapter is 

amended by inserting after the item relating to section 504 the following new item:

‘‘505. Medal of honor: presentation of Medal of Honor Flag.’’.

(d) The President shall provide for the presentation of the 

Medal of Honor Flag designated under section 903 of title 36, 

United States Code, as added by subsection (b), to each person 

awarded the Medal of Honor before the date of enactment of this Act 

who is living as of that date. Such presentation shall be made as 

expeditiously as possible after the date of the designation of the 

Medal of Honor Flag by the Secretary of Defense under such section. 

SEC. 8144. (a) The conditions described in section 1305 of the 

National Defense Authorization Act for Fiscal Year 2000 (Public 

Law 106–65; 22 U.S.C. 5952 note) shall not apply to the obligation 

and expenditure of funds for fiscal years 2000, 2001, 2002 and 2003 

for the planning, design, or construction of a chemical weapons destruction facility in Russia if the President submits to Congress a 

written certification that includes—

(1) a statement as to why waiving the conditions is important to the national security interests of the United States; 

55

(2) a full and complete justification for exercising this waiver; and 

(3) a plan to promote a full and accurate disclosure by Russia regarding the size, content, status, and location of its chemical weapons stockpile. 

(b) EXPIRATION OF AUTHORITY.—The authority under paragraph (a) shall expire on September 30, 2003. 

SEC. 8145. Effecitve as of August 2, 2002, the 2002 Supplemental Appropriations Act for Further Recovery From and Response 

To Terrorist Attacks on United States (Public Law 107–206) is 

amended—

(1) in section 305(a) (116 Stat. 840), by striking ‘‘fiscal year 

2002’’ and inserting ‘‘fiscal years 2002 and 2003’’; and 

(2) in section 309 (116 Stat. 841), by striking ‘‘of’’ after ‘‘instead’’. SEC. 8146. The Secretary of Defense may modify the grant 

made to the State of Maine pursuant to section 310 of the 2002 Supplemental Appropriations Act for Further Recovery From and Response To Terrorist Attacks on the United States (Public Law 107– 206) such that the modified grant is for purposes of supporting community adjustment activities relating to the closure of the Naval Security Group Activity, Winter Harbor, Maine (the naval base on 

Schoodic Point, within Acadia National Park), and the reuse of 

such Activity, including reuse as a research and education center 

the activities of which may be consistent with the purposes of Acadia National Park, as determined by the Secretary of the Interior. 

The grant may be so modified not later than 60 days after the date 

of the enactment of this Act. 

SEC. 8147. None of the funds appropriated by this Act may be 

used for leasing of transport/VIP aircraft under any contract entered into under any procurement procedures other than pursuant 

to the Competition and Contracting Act. 

SEC. 8148. (a) Funds appropriated by title II under the heading ‘‘Operation and Maintenance, Defense-Wide’’ may be used by the 

Military Community and Family Policy Office of the Department of 

Defense for the operation of multidisciplinary, impartial domestic 

violence fatality review teams of the Department of Defense that operate on a confidential basis. 

(b) Of the total amount appropriated by title II under the heading ‘‘Operation and Maintenance, Defense-Wide’’, $5,000,000 may be 

used for an advocate of victims of domestic violence to provide confidential assistance to victims of domestic violence at military installations. 

(c) Not later than June 30, 2003, the Secretary of Defense shall 

submit to the Congress a report on the implementation of the recommendations included in the reports submitted to the Secretary by 

the Defense Task Force on Domestic Violence. 

SEC. 8149. (a) LIMITATION ON NUMBER OF GOVERNMENT

CHARGE CARD ACCOUNTS DURING FISCAL YEAR 2003.—The total 

number of accounts for government purchase charge cards and government travel charge cards for Department of Defense personnel 

during fiscal year 2003 may not exceed 1,500,000 accounts. 

(b) REQUIREMENT FOR CREDITWORTHINESS FOR ISSUANCE OF

GOVERNMENT CHARGE CARD.—(1) The Secretary of Defense shall 

evaluate the creditworthiness of an individual before issuing the inVerDate 0ct 09 2002 14:16 Oct 15, 2002 Jkt 019006 PO 00000 Frm 00057 Fmt 6659 Sfmt 6603 E:\PICKUP\HR732.XXX HR732
56

dividual a government purchase charge card or government travel 

charge card. 

(2) An individual may not be issued a government purchase 

charge card or government travel charge card if the individual is 

found not credit worthy as a result of the evaluation under paragraph (1). 

(c) DISCIPLINARY ACTION FOR MISUSE OF GOVERNMENT CHARGE

CARD.—(1) The Secretary shall establish guidelines and procedures 

for disciplinary actions to be taken against Department personnel 

for improper, fraudulent, or abusive use of government purchase 

charge cards and government travel charge cards. 

(2) The guidelines and procedures under this subsection shall 

include appropriate disciplinary actions for use of charge cards for 

purposes, and at establishments, that are inconsistent with the official business of the Department or with applicable standards of conduct. 

(3) The disciplinary actions under this subsection may include—

(A) the review of the security clearance of the individual involved; and 

(B) the modification or revocation of such security clearance 

in light of the review. 

(4) The guidelines and procedures under this subsection shall 

apply uniformly among the Armed Forces and among the elements 

of the Department. 

(d) REPORT.—Not later than June 30, 2003, the Secretary shall 

submit to the congressional defense committees a report on the implementation of the requirements and limitations in this section, including the guidelines and procedures established under subsection 

(c). 

SEC. 8150. Notwithstanding any provision of 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) or any other provision of law, 

the Secretary of the Navy shall transfer administrative jurisdiction 

of the portion of the former Charleston Naval Base, South Carolina, 

comprising a law enforcement training facility of the Department of 

Justice, together with any improvements thereon, to the head of the 

department of the Federal Government having jurisdiction of the 

Border Patrol as of the date of the transfer under this section.

TITLE IX—COMMERCIAL REUSABLE IN-SPACE 

TRANSPORTATION 

SEC. 901. SHORT TITLE. 

This title may be cited as the ‘‘Commercial Reusable In-Space 

Transportation Act of 2002’’. 

SEC. 902. FINDINGS. 

Congress makes the following findings: 

(1) It is in the national interest to encourage the production 

of cost-effective, in-space transportation systems, which would 

be built and operated by the private sector on a commercial 

basis. 

(2) The use of reusable in-space transportation systems will 

enhance performance levels of in-space operations, enhance efficient and safe disposal of satellites at the end of their useful 

57

lives, and increase the capability and reliability of existing 

ground-to-space launch vehicles. 

(3) Commercial reusable in-space transportation systems 

will enhance the economic well-being and national security of 

the United States by reducing space operations costs for commercial and national space programs and by adding new space 

capabilities to space operations. 

(4) Commercial reusable in-space transportation systems 

will provide new cost-effective space capabilities (including orbital transfers from low altitude orbits to high altitude orbits 

and return, the correction of erroneous satellite orbits, and the 

recovery, refurbishment, and refueling of satellites) and the provision of upper stage functions to increase ground-to-orbit 

launch vehicle payloads to geostationary and other high energy 

orbits. 

(5) Commercial reusable in-space transportation systems 

can enhance and enable the space exploration of the United 

States by providing lower cost trajectory injection from earth 

orbit, transit trajectory control, and planet arrival deceleration 

to support potential National Aeronautics and Space Administration missions to Mars, Pluto, and other planets. 

(6) Satellites stranded in erroneous earth orbit due to deficiencies in their launch represent substantial economic loss to 

the United States and present substantial concerns for the current backlog of national space assets. 

(7) Commercial reusable in-space transportation systems 

can provide new options for alternative planning approaches 

and risk management to enhance the mission assurance of national space assets.

(8) Commercial reusable in-space transportation systems 

developed by the private sector can provide in-space transportation services to the National Aeronautics and Space Administration, the Department of Defense, the National Reconnaissance Office, and other agencies without the need for the United 

States to bear the cost of production of such systems. 

(9) The availability of loan guarantees, with the cost of 

credit risk to the United States paid by the private-sector, is an 

effective means by which the United States can help qualifying 

private-sector companies secure otherwise unattainable private 

financing for the production of commercial reusable in-space 

transportation systems, while at the same time minimizing Government commitment and involvement in the development of 

such systems. 

SEC. 903. LOAN GUARANTEES FOR PRODUCTION OF COMMERCIAL REUSABLE IN-SPACE TRANSPORTATION. 

(a) AUTHORITY TO MAKE LOAN GUARANTEES.—The Secretary 

may guarantee loans made to eligible United States commercial 

providers for purposes of producing commercial reusable in-space 

transportation services or systems. 

(b) ELIGIBLE UNITED STATES COMMERCIAL PROVIDERS.—The 

Secretary shall prescribe requirements for the eligibility of United 

States commercial providers for loan guarantees under this section. 

Such requirements shall ensure that eligible providers are financially capable of undertaking a loan guaranteed under this section. 

58

(c) LIMITATION ON LOANS GUARANTEED.—The Secretary may 

not guarantee a loan for a United States commercial provider under 

this section unless the Secretary determines that credit would not 

otherwise be reasonably available at the time of the guarantee for 

the commercial reusable in-space transportation service or system to 

be produced utilizing the proceeds of the loan. 

(d) CREDIT SUBSIDY.—

(1) COLLECTION REQUIRED.—The Secretary shall collect 

from each United States commercial provider receiving a loan 

guarantee under this section an amount equal to the amount, 

as determined by the Secretary, to cover the cost, as defined in 

section 502(5) of the Federal Credit Reform Act of 1990, of the 

loan guarantee. 

(2) PERIODIC DISBURSEMENTS.—In the case of a loan guarantee in which proceeds of the loan are disbursed over time, the 

Secretary shall collect the amount required under this subsection on a pro rata basis, as determined by the Secretary, at 

the time of each disbursement. 

(e) OTHER TERMS AND CONDITIONS.—

(1) PROHIBITION ON SUBORDINATION.—A loan guaranteed 

under this section may not be subordinated to another debt contracted by the United States commercial provider concerned, or 

to any other claims against such provider. 

(2) RESTRICTION ON INCOME.—A loan guaranteed under 

this section may not—

(A) provide income which is excluded from gross income for purposes of chapter 1 of the Internal Revenue 

Code of 1986; or 

(B) provide significant collateral or security, as determined by the Secretary, for other obligations the income 

from which is so excluded. 

(3) TREATMENT OF GUARANTEE.—The guarantee of a loan 

under this section shall be conclusive evidence of the following: 

(A) That the guarantee has been properly obtained. 

(B) That the loan qualifies for the guarantee. 

(C) That, but for fraud or material misrepresentation 

by the holder of the loan, the guarantee is valid, legal, and 

enforceable. 

(4) OTHER TERMS AND CONDITIONS.—The Secretary may establish any other terms and conditions for a guarantee of a 

loan under this section, as the Secretary considers appropriate 

to protect the financial interests of the United States. 

(f) ENFORCEMENT OF RIGHTS.—

(1) IN GENERAL.—The Attorney General may take any action the Attorney General considers appropriate to enforce any 

right accruing to the United States under a loan guarantee 

under this section. 

(2) FORBEARANCE.—The Attorney General may, with the 

approval of the parties concerned, forebear from enforcing any 

right of the United States under a loan guaranteed under this 

section for the benefit of a United States commercial provider 

if such forbearance will not result in any cost, as defined in section 502(5) of the Federal Credit Reform Act of 1990, to the 

United States. 

59

(3) UTILIZATION OF PROPERTY.—Notwithstanding any other 

provision of law and subject to the terms of a loan guaranteed 

under this section, upon the default of a United States commercial provider under the loan, the Secretary may, at the election 

of the Secretary— (A) assume control of the physical asset financed by the 

loan; and 

(B) complete, recondition, reconstruct, renovate, repair, 

maintain, operate, or sell the physical asset. 

(g) CREDIT INSTRUMENTS.— (1) AUTHORITY TO ISSUE INSTRUMENTS.—Notwithstanding 

any other provision of law, the Secretary may, subject to such 

terms and conditions as the Secretary considers appropriate, 

issue credit instruments to United States commercial providers 

of in-space transportation services or system, with the aggregate 

cost (as determined under the provisions of the Federal Credit 

Reform Act of 1990 (2 U.S.C. 661 et seq.)) of such instruments 

not to exceed $1,500,000,000, but only to the extent that new 

budget authority to cover such costs is provided in subsequent 

appropriations Acts or authority is otherwise provided in subsequent appropriations Acts. 

(2) CREDIT SUBSIDY.—The Secretary shall provide a credit 

subsidy for any credit instrument issued under this subsection 

in accordance with the provisions of the Federal Credit Reform 

Act of 1990. 

(3) CONSTRUCTION.—The eligibility of a United States commercial provider of in-space transportation services or systems 

for a credit instrument under this subsection is in addition to 

any eligibility of such provider for a loan guarantee under other 

provisions of this section. 

SEC. 904. DEFINITIONS. 

In this title: 

(1) SECRETARY.—The term ‘‘Secretary’’ means the Secretary 

of Defense. 

(2) COMMERCIAL PROVIDER.—The term ‘‘commercial provider’’ means any person or entity providing commercial reusable in-orbit space transportation services or systems, primary 

control of which is held by persons other than the Federal Government, a State or local government, or a foreign government. 

(3) IN-SPACE TRANSPORTATION SERVICES.—The term ‘‘inspace transportation services’’ means operations and activities 

involved in the direct transportation or attempted transportation of a payload or object from one orbit to another by means 

of an in-space transportation vehicle.

(4) IN-SPACE TRANSPORTATION SYSTEM.—The term ‘‘in-space 

transportation system’’ means the space and ground elements, 

including in-space transportation vehicles and support space 

systems, and ground administration and control facilities and 

associated equipment, necessary for the provision of in-space 

transportation services. 

(5) IN-SPACE TRANSPORTATION VEHICLE.—The term ‘‘inspace transportation vehicle’’ means a vehicle designed—

(A) to be based and operated in space; 

(B) to transport various payloads or objects from one 

orbit to another orbit; and 

60

(C) to be reusable and refueled in space. 

(6) UNITED STATES COMMERCIAL PROVIDER.—The term ‘‘United States commercial provider’’ means any commercial 

provider organized under the laws of the United States that is 

more than 50 percent owned by United States nationals. 

This Act may be cited as the ‘‘Department of Defense Appropriations Act, 2003’’. And the Senate agree to the same.

JERRY LEWIS, 

BILL YOUNG, 

JOE SKEEN, 

DAVE L. HOBSON, 

HENRY BONILLA, 

GEORGE R. NETHERCUTT, Jr., 

RANDY ‘‘DUKE’’ CUNNINGHAM, 

RODNEY P. FRELINGHUYSEN, 

TODD TIAHRT, 

JOHN P. MURTHA, 

NORMAN D. DICKS, 

MARTIN OLAV SABO, 

PETER J. VISCLOSKY, 

JAMES P. MORAN, 

DAVE R. OBEY

(Except for sec. 8149 relating to corporate expatriates), 

Managers on the Part of the House.

DANIEL K. INOUYE, ERNEST F. HOLLINGS, ROBERT C. BYRD, PATRICK J. LEAHY, 

TOM HARKIN, BYRON L. DORGAN, 

RICHARD J. DURBIN, HARRY REID, DIANNE FEINSTEIN, HERB KOHL, TED STEVENS, THAD COCHRAN, 

ARLEN SPECTER, 

PETE V. DOMENICI, 

CHRISTOPHER S. BOND, 

MITCH MCCONNELL, 

RICHARD C. SHELBY, 

JUDD GREGG, 

KAY BAILEY HUTCHISON, 

Managers on the Part of the Senate.

(61)

JOINT EXPLANATORY STATEMENT 

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. 5010), making appropriations for the Department of Defense for the fiscal year ending 

September 30, 2003, and for other purposes, submit the following 

joint statement to the House and the Senate in explanation of the 

effect of the action agreed upon by the managers and recommended 

in the accompanying conference report. 

The conference agreement on the Department of Defense Appropriations Act, 2003, incorporates some of the provisions of both 

the House and Senate versions of the bill. The language and allocations set forth in House Report 107–532 and Senate Report 107– 213 should be complied with unless specifically addressed in the accompanying bill and statement of the managers to the contrary. 

Senate Amendment: The Senate deleted the entire House bill 

after the enacting clause and inserted the Senate bill. The conference agreement includes a revised bill. 

DEFINITION OF PROGRAM, PROJECT, AND ACTIVITY

The conferees agree that for the purposes of the Balanced 

Budget and Emergency Deficit Control Act of 1985 (Public Law 99– 177) as amended by the Balanced Budget and Emergency Deficit 

Control Reaffirmation Act of 1987 (Public Law 100–119) and by the 

Budget Enforcement Act of 1990 (Public Law 101–508), the term 

program, project, and activity for appropriations contained in this 

Act shall be defined as the most specific level of budget items identified in the Department of Defense Appropriations Act, 2003, the 

accompanying House and Senate Committee reports, the conference 

report and accompanying joint explanatory statement of the managers of the Committee of Conference, the related classified annexes and reports, and the P–1 and R–1 budget justification documents as subsequently modified by Congressional action. The following exception to the above definition shall apply: for the Military Personnel and the Operation and Maintenance accounts, the 

term ‘‘program, project, and activity’’ is defined as the appropriations accounts contained in the Department of Defense Appropriations Act. 

At the time the President submits his budget for fiscal year 

2004, the conferees direct the Department of Defense to transmit 

to the congressional defense committees budget justification documents to be known as the ‘‘M–1’’ and ‘‘O–1’’ which shall identify, 

at the budget activity, activity group, and subactivity group level, 

the amounts requested by the President to be appropriated to the 

Department of Defense for military personnel and operation and 

maintenance in any budget request, or amended budget request, 

for fiscal year 2004. 

62

SPECIAL INTEREST ITEMS

Items for which additional funds have been provided as shown 

in the project level adjustment tables or items identified in paragraphs using the phrase ‘‘only for’’ or ‘‘only to’’ in this Statement, 

are congressional interest items for the purpose of the Base for Reprogramming (DD 1414). Each of these items must be carried on 

the DD Form 1414 at the stated amount, or a revised amount if 

changed during the conference or if otherwise specifically addressed 

in the conference report. These items remain special interest items 

whether or not they are repeated in a subsequent conference report 

or Statement. 

CLASSIFIED ANNEX

Adjustments to classified programs are addressed in the classified annex accompanying this report.

63


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64

FORCE STRUCTURE CHANGES

The conferees recommend a total of $110,100,000 in the military personnel, operation and maintenance, and procurement accounts for force structure that was not included in the budget request, as follows:

[In thousands of dollars] 

Milpers O&M Proc. Total 

Air Force B–52 aircraft .................................................................. 2,600 28,000 17,700 48,300 

Army Reserve Full-Time Support ................................................... 11,400 4,000 .................... 15,400 

Army National Guard Full-Time Support ....................................... 35,100 11,300 .................... 46,400 

ACTIVE END STRENGTH 

[Fiscal Year 2003] 

Budget Conference Conference vs. budget 

Army ............................................................................................................ 480,000 480,000 ........................

Navy ............................................................................................................ 375,700 375,700 ........................

Marine Corps ............................................................................................... 175,000 175,000 ........................

Air Force ...................................................................................................... 359,000 359,000 ........................

Total, Active Personnel .................................................................. 1,389,700 1,389,700 ........................

65


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67

ADJUSTMENTS TO BUDGET ACTIVITIES

Adjustments to the budget activities are as follows:

[In thousands of dollars] 

Budget Activity 1: Pay and Allowances of Officers: 

600 Separation Pay/$30,000 Lump Sum Bonus ........................ ¥26,000

Budget Activity 2: Pay and Allowances of Enlisted Personnel: 

800 Basic Pay/CT–FP DERF Transfer—CINC Protective 

Services Detail ............................................................................ 963

825 Retired Pay Accrual/CT–FP DERF Transfer—CINC Protective Services Detail ................................................................ 264

1100 Special Pays/Enlistment Bonuses ...................................... ¥24,000

1100 Special Pays/Selective Reenlistment Bonus ...................... ¥13,000

1200 Separation Pays/$30,000 Lump Sum Bonus ..................... ¥3,000

1250 Social Security Tax/CT–FP DERF Transfer—CINC Protective Services Detail ................................................................ 73

Budget Activity 6: Other Military Personnel Costs: 

2450 Unemployment Benefits ..................................................... ¥5,375

Other Adjustments: 

2780 DHP Accrual Reestimate .................................................... ¥110,700

2790 Unobligated Balances ......................................................... ¥50,000

2800 Adopted Legislative Proposals ........................................... 6,400

SELECTIVE REENLISTMENT BONUS PROGRAM

The conferees direct the Army to transfer $13,000,000 from Selective Reenlistment Bonus initial payments to anniversary payments to cover the anticipated shortfall in anniversary payments 

during fiscal year 2003.

68


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70


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71


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72


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73


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74


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76

ADJUSTMENTS TO BUDGET ACTIVITIES

Adjustments to the budget activities are as follows:

[In thousands of dollars] 

Budget Activity 1: Pay and Allowances of Officers: 

8750 Special Pays/High Deployment Per Diem Allowances ..... ¥383

8750 Special Pays/Critical Skills Accession Bonus ................... ¥18,300

8750 Special Pays/Critical Skills Retention Bonus ................... ¥20,000

8850 Separation Pay/$30,000 Lump Sum Bonus ...................... ¥32,000

Budget Activity 2: Pay and Allowances of Enlisted Personnel: 

9350 Special Pays/High Deployment Per Diem Allowances ..... ¥1,898

9350 Special Pays/Selective Reenlistment Bonus ...................... ¥5,000

9450 Separation Pay/$30,000 Lump Sum Bonus ...................... ¥1,000

Budget Activity 6: Other Military Personnel Costs: 

10700 Unemployment Benefits ................................................... ¥6,747

Other Adjustments: 

10980 B–52 Force Structure ........................................................ 2,600

11080 DHP Accrual Reestimate .................................................. ¥82,800

11090 Adopted Legislative Proposals ......................................... 4,220

NATIONAL GUARD AND RESERVE FORCES

The conferees agree to provide $14,312,543,000 in Reserve personnel appropriations, $13,936,917,000 in Reserve operation and 

maintenance appropriations, and $100,000,000 in the National 

Guard and Reserve Equipment appropriation. These funds support 

a Selected Reserve end strength of 864,558 as shown below.

SELECTED RESERVE END STRENGTH 

[Fiscal Year 2003] 

Budget Conference Conference vs. 

budget 

Selected Reserve: 

Army Reserve ..................................................................................... 205,000 205,000 ........................

Navy Reserve ...................................................................................... 87,800 87,800 ........................

Marine Corps Reserve ........................................................................ 39,558 39,558 ........................

Air Force Reserve ............................................................................... 75,600 75,600 ........................

Army National Guard ......................................................................... 350,000 350,000 ........................

Air National Guard ............................................................................. 106,600 106,600 ........................

Total ............................................................................................... 864,558 864,558 ........................

AGR/TARS: 

Army Reserve ..................................................................................... 13,588 13,888 +300

Navy Reserve ...................................................................................... 14,572 14,572 ........................

Marine Corps Reserve ........................................................................ 2,261 2,261 ........................

Air Force Reserve ............................................................................... 1,498 1,498 ........................

Army National Guard ......................................................................... 23,768 24,662 +894

Air National Guard ............................................................................. 11,697 11,727 +30

Total ............................................................................................... 67,384 68,608 +1,224

Technicians: 

Army Reserve ..................................................................................... 7,344 7,594 +250

Air Force Reserve ............................................................................... 9,911 9,911 ........................

Army National Guard ......................................................................... 25,215 25,702 +487

Air National Guard ............................................................................. 22,845 22,845 ........................

Total ............................................................................................... 65,315 66,052 +737

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79


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80


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81


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82


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83


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84


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85


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86

ADJUSTMENTS TO BUDGET ACTIVITIES

Adjustments to the budget activities are as follows:

[In thousands of dollars] 

Budget Activity 1: Unit and Individual Training: 

14800 Pay Group A Training/AT Participation Rates .............. ¥18,000

Other Adjustments: 

15370 Emergency Spill Response Program ................................ 600

15390 Additional Full-Time Support .......................................... 35,100

15400 DHP Accrual Reestimate .................................................. ¥34,200

15420 Adopted Legislative Proposals ......................................... 2,100

ACTIVE GUARD AND RESERVE PERSONNEL

The conferees recommend a total of $35,100,000 for additional 

Active Guard and Reserve (AGR) personnel, instead of $28,400,000 

as proposed by the House and Senate. The additional $6,700,000, 

offset by a reduction in Research, Development, Test and Evaluation, Defense-Wide, line 74, will provide 52 AGRs for security at 

the Missile Defense Agency Test Bed site at Fort Greely, Alaska 

and 33 AGRs for emergency defensive operations at Fort Greely, 

Alaska and Colorado Springs, Colorado.

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90

MANAGEMENT RESERVE FUNDS

Each service headquarters retains a portion of its operation 

and maintenance appropriation as a reserve to meet emergent 

needs. From fiscal year 1999 through fiscal year 2002, the services 

set aside the following amounts in management reserve funds: 

Army, $278,000,000; Navy, $466,000,000; Air Force, $200,000,000; 

and, Marine Corps, $96,000,000. In fiscal year 2002 alone, the 

Army set aside $128,000,000; the Navy, $150,000,000; the Air 

Force, $50,000,000; and, the Marines, $30,000,000. These funds are 

used at the discretion of the service chiefs or service secretaries 

and, since fiscal year 1999, have been used for projects ranging in 

cost from $5,000 to $40,100,000. 

The amount retained by the Army in the management reserve 

fund grew from $50,000,000 in fiscal year 2001 to $128,000,000 in 

fiscal year 2002. The Navy increased its management reserve from 

$81,000,000 in fiscal year 1999 to $150,000,000 in fiscal year 2002. 

The Marine Corps’ management reserve historically has been between $30,000,000, and $40,000,000, significantly higher than the 

Army, Navy, and Air Force reserve funds when considered as a 

percentage of the operation and maintenance funding provided for 

each service. The Air Force management reserve fund has remained constant at $50,000,000 per year. The services have applied 

the reserve funds to address a broad range of requirements, ranging from employment kiosks at minority institutions, to funding for 

a North Atlantic Treaty Organization Meeting, to ship and aircraft 

depot maintenance. 

The conferees acknowledge the utility of retaining a small 

amount of the operation and maintenance funds appropriate for 

each service in the service headquarters to address emergent requirements. The conferees are concerned, however, with the recent 

growth in the amounts retained in the management reserve funds. 

Further, the growing amounts that the service chiefs and service 

secretaries have chosen to withhold from distribution to field activities call into question the validity of the budget justification process. 

The conferees direct that not more than the following amounts 

may be used for service chief/service secretary reserve funds:

Operation and Maintenance, Army ...................................................... $50,000,000

Operation and Maintenance, Navy ...................................................... 50,000,000

Operation and Maintenance, Marine Corps ........................................ 10,000,000

Operation and Maintenance, Air Force ............................................... 50,000,000

Additionally, the conferees direct that not later than 60 days 

after the end of fiscal year 2003, the Secretary of the Army, the 

Secretary of the Navy, and the Secretary of the Air Force shall 

each submit to the congressional defense committees a report detailing service chief/service secretary reserve fund expenditures 

during the fiscal year. 

MIDWAY AIRFIELD

The conferees are aware of the continuing efforts to forge a 

long term solution for the operation and maintenance of the Midway Island airfield, and are aware that Department of Defense aircraft used the Midway facility 17 times in fiscal year 2002. The 

91

conferees encourage the Department of Defense, in conjunction 

with the Department of the Interior, to identify a long-term contracting solution to continue the availability of this airfield in a 

manner which meets the refueling and emergency divert airfield 

requirements of military aircraft.

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95

ADJUSTMENTS TO BUDGET ACTIVITIES

Adjustments to the budget activities are as follows:

[In thousands of dollars] 

Budget Activity 1: Operating Forces: 

250 All Terrain Military Utility Vehicles ................................... 2,900

250 Hydration on the Move System, Including Chem/Bio Sys 1,000

250 Modular Lightweight Load-Carrying Equipment 

(MOLLE) ...................................................................................... 3,600

250 Modular General Purpose Tent System (MGPTS) ............. 1,200

250 Expendable Light Air Mobility Shelter ............................... 2,500

450 Camera Assisted Monitoring System (CAMS) .................... 4,000

450 SBCT Implementation .......................................................... 42,500

550 Continuity of Operations DERF—Alt Nat Cmd Ctr .......... 44,000

550 CT/FP DERF—Physical Security Equipment ..................... 76,900

550 CT/FP DERF—Physical Security Equipment trans to 

OPA .............................................................................................. ¥76,900

550 ITAM Program at Army NTC .............................................. 1,000

550 Corrosion Prevention and Control Program at CCAD and 

Fort Hood ..................................................................................... 1,500

600 Studies, analysis and headquarters growth ....................... ¥10,000

750 USARSO headquarters growth ............................................ ¥1,000

750 Other Contracts, unjustified program growth .................... ¥5,000

750 Training and Support Facilities—Continue Ft. Irwin facility and road improvements .................................................... 6,000

800 Airborne Barracks—Ft. Benning, Georgia .......................... 2,000

800 Ft. Lewis SRM, Vancouver Barracks preservation ............ 3,700

850 USARPAC C41 PACMERS .................................................. 4,300

850 USARPAC C4 shortfalls ....................................................... 5,100

850 Management and Operational Headquarters, unjustified 

program growth ........................................................................... ¥2,000

900 DERF transfer—CINC AT/FP staff ..................................... 9,400

900 Hunter UAV .......................................................................... 6,000

950 Nuclear Posture Review DERF—Info Systems Security ... 15,000

Budget Activity 3: Training and Recruiting: 

1650 SROTC—Air Battle Captain Program .............................. 1,400

1850 Sec, Comms & Info Opns DERF—Army Lang Pgm 

TIARA .......................................................................................... 19,500

1850 Sec, Comms & Info Opns DERF—Contr Linguists 

TIARA .......................................................................................... 9,400

1850 Sec, Comms & Info Opns DERF—Contract Linguists Interrogation ................................................................................... 5,000

1850 Military Police MCTFT joint training ............................... 1,700

1850 SCOLA language training .................................................. 1,000

2000 Defense Language Institute (DLI) LandNet ..................... 1,000

2000 TRADOC Transformation, unjustified program increase ¥15,000

2000 Ft. Knox Distance Learning ............................................... 2,100

2050 DoD Monterey Bay Center furniture and equipment ...... 1,000

2100 Restoration and modernization of dining facilities .......... 2,300

2200 Contract Recruiting Companies ......................................... ¥5,000

2350 Online Technology Training Pilot Program Ft. Lewis ..... 1,000

2450 Sec, Comms & Info Opns DERF—PE0135197 ................. 2,300

Budget Activity 4: Administration and Servicewide Activities: 

2650 Continuity of Operations DERF—CONUS Support ......... 2,000

2650 Sec, Comms & Info Opns DERF—Battle Space Character ............................................................................................. 2,000

2650 Sec, Comms & Info Opns DERF—Sec & Invest backlog 10,000

2650 Sec, Comms & Info Opns DERF—Information Dominance ............................................................................................ 1,000

2750 Second Destination Transportation, unjustified pgm 

growth .......................................................................................... ¥18,000

2750 MTMC DRMEC demo project including RAPID .............. 2,000

2800 Pulse Technology—Army Battery Management Program 3,200

2850 AIT/RFID Program at Sierra Army Depot ........................ 1,000

2850 Electronic Maintenance System (EMS)/Point-to-Point 

Wiring and Signal Tracing ......................................................... 1,000

2850 Logistics and Technology Program .................................... 1,000

96

3000 Sec, Comms & Info Opns DERF—Crit Infr Protect (CIP) 600

3000 Administration .................................................................... ¥17,000

3000 Biometrics Support ............................................................. 9,500

3050 Continuity of Operations DERF—JMIP CONUS Support ............................................................................................... 5,000

3050 Sec, Comms & Info Opns DERF—Collaboration Planning/Enablers .............................................................................. 2,500

3050 Sec, Comms & Info Opns DERF—CONUS Support, CIP 500

3050 Servicewide Communications ............................................. ¥22,000

3050 Army Information Systems ................................................ ¥6,000

3050 Army Enterprise Architecture ........................................... ¥6,000

3100 Manpower Management ..................................................... ¥3,000

3150 Chaplain—Building Strong and Ready Families Pgm ..... 1,000

3200 Other Service Support ........................................................ ¥10,000

3200 Army Conservation and Ecosystem Management ............ 3,400

3300 Real Estate Management—underexecution ...................... ¥2,000

3350 Worker Safety Pilot Program at Fort Bragg, NC and 

Watervliet, NY expansion .......................................................... 2,500

3350 Innovative Safety Management ......................................... 2,500

3400 Army Chapel Renovation Matching Funds Program ....... 3,400

3400 Rock Island Bridge Repairs ................................................ 1,700

3400 Yukon training infrastructure and access upgrades ........ 1,700

3400 Ft. Richardson Bldg. 802 repairs ....................................... 3,900

3400 Ft. Wainwright utilidors ..................................................... 8,500

3400 Tanana River bridge study ................................................. 1,275

Undistributed: 

3710 Classified Programs ............................................................ 42,153

3720 Memorial Events ................................................................. 800

3730 Repairs at Fort Baker ......................................................... 2,500

3960 FECA Surcharge ................................................................. ¥8,799

3970 Un-obligated Balance .......................................................... ¥50,000

3980 CONOPS Costs .................................................................... ¥50,000

4035 Anti-corrosion programs ..................................................... 1,000

4037 Utilities privatization ......................................................... ¥9,000

4045 PACOM Infrastructure Modernization Program—transfer To OPA ................................................................................... ¥41,800

4050 EUSA command and control—transfer to OPA ................ ¥4,700

4055 USARPAC Comms equipment fielding—transfer to OPA ¥3,200

4060 PACOM Infrastructure Modernization Program—transfer To OPA ................................................................................... ¥620

ARMY BUDGET JUSTIFICATION MATERIALS

The conferees recognize the importance of the budgetary management improvement process undertaken by the Under Secretary 

of the Army to provide more meaningful budget justification materials for future budget submissions. The conferees strongly encourage further efforts to ensure programmatic accountability, integrity, management, and oversight, which may continue to benefit 

from an independent third party experienced in federal assurance 

services to mitigate program and operational risk, and to ensure 

quality. 

SOLDIER EQUIPMENT—ORGANIZATIONAL CLOTHING AND INDIVIDUAL

EQUIPMENT

The conferees are aware that experience in Afghanistan 

showed once again that while the Army is continuing to invest significant sums in developing better soldier equipment, the system to 

get that equipment to soldiers still has major shortcomings. Consequently, the Army now estimates that its soldiers spend on average about $300 per year out of pocket to buy additional necessary 

equipment ranging from hydration systems to GPS receivers. 

97

Equipment shortages reported by American soldiers in Afghanistan 

and elsewhere include modern knee and elbow pads, hydration systems to replace canteens, GPS receivers, lensatic compasses, sunglasses, helmet pads, polypropylene underwear, assault packs, close 

combat optics, soldier intercoms, viper binoculars, black fleece and 

‘‘bear suits’’, thermal weapons sights, body armor, and other important basic gear. In Afghanistan, some soldiers reported the loss of 

circulation in their arms in situations where they had to wear the 

new Interceptor Body Armor with the ALICE rucksack frame or 

the current Load Bearing Vest instead of the MOLLE pack for 

which it was designed. Many Reserve Components have a far worse 

equipment situation. For example, soldiers from the 1–151st Infantry of the Indiana Army National Guard personally purchased radios from local discount department stores to serve as soldier intercoms for their deployment to Bosnia. With the expected increased 

OPTEMPO of both active and reserve forces to sustain the war on 

terrorism, this problem is becoming evermore acute and unacceptable. 

The conferees believe the Army leadership must take a fresh 

look at the entire system for issuing soldier equipment. It is unacceptable for American soldiers—both active and reserve—to be deployed with anything but the best equipment the Army has developed, and it must be a priority objective to dramatically improve 

the situation where soldiers deploy with lower quality gear that 

could cost their lives. In the short term this will require more investment in the Soldier Enhancement Program, the Centralized 

Funding and Fielding activity, and other accounts whose purpose 

is to field new equipment to soldiers expeditiously. In the long 

term, the Army must retool its practices and procedures for equipping its soldiers, in order to field the most advanced gear faster 

and to more soldiers. The Secretary of the Army is directed to submit a report to the congressional defense committees by May 1, 

2003 assessing and identifying the major soldier equipment shortages in all major active and reserve component units, identifying 

the highest priority Army-wide soldier equipment items that require higher procurement rates and faster distribution, and explaining how the Army plans to address those needs. This report 

shall also present the Army’s plan and timetable for transforming 

its practices and procedures for procuring and distributing soldier 

equipment in order to dramatically improve the distribution of 

modern soldier equipment across the board to all units—both active 

and reserve.

NATIONAL MEMORIAL CEMETERY OF THE PACIFIC

The conferees are pleased that the Department of the Army 

has been able to accomplish the necessary research and coordination with the Department of Veterans Affairs in order to bring 

about the remarking of 178 graves at the National Memorial Cemetery of the Pacific, to properly denote service members killed on 

December 7, 1941 on United States Ships Oklahoma, West Virginia, California, Utah, Nevada, and Curtis, as well as Hickam Air 

Field. The Conferees understand that the new grave markers will 

be provided to the National Cemetery in Hawaii by approximately 

98

November 20, 2002 with the goal of replacing the 178 grave markers by December 7, 2002. 

INTERNET ACCESS KOREA

The conferees direct that of the funds provided in Operation 

and Maintenance, Army, $2,500,000 shall be available only to accelerate the Army Knowledge Online pilot program to full implementation in order to provide access to internet and electronic mail 

services for soldiers stationed in the Republic of Korea. 

FORT BAKER

The conference agreement provides an additional $2,500,000 to 

continue infrastructure repairs at Fort Baker. The accompanying 

bill provides authority to transfer these funds under the same 

terms and conditions and to the same federal recipient as specified 

under Operation and Maintenance, Army, in P.L. 107–117

LOWRY BOMBING RANGE

The Conferees are aware of the unique environmental clean-up 

measures needed at the former Lowry Bombing and Gunnery 

Range, and recognize the importance of expediting restoration and 

containment activities to permit planned development in the surrounding area to proceed without delay. The conferees encourage 

the Corps of Engineers to provide sufficient resources, and select 

appropriate clean-up and containment methodologies, in a timely 

manner, to ensure that Jeep demolition range and the 20-millimeter range areas are safe for future economic, educational and 

recreational activities. 

SUSTAINMENT, RESTORATION AND MODERNIZATION

The conferees direct that facilities sustainment, restoration 

and modernization funds recommended in this bill shall provide 

the following program baseline in fiscal year 2003. Any adjustments directed in the bill shall be applied to this baseline:

[In thousands of dollars] 

AMC ........................................................................................................ 126,000

ATEC ...................................................................................................... 71,888

COE ......................................................................................................... 8,050

EUSA ...................................................................................................... 128,000

FORSCOM .............................................................................................. 400,206

MDW ....................................................................................................... 57,674

MEDCOM ............................................................................................... 28,000

MTMC ..................................................................................................... 22,229

OSA ......................................................................................................... 14,275

TRADOC ................................................................................................. 358,430

USAREUR .............................................................................................. 332,702

USARPAC ............................................................................................... 207,420

USARSO ................................................................................................. 9,659

USMA ..................................................................................................... 57,102

Site R ...................................................................................................... 3,010

Total ............................................................................................. 1,823,945

99

BROADWAY ARMORY PROJECT

The conferees direct the Secretary of the Army to provide funding, from within available funds under Operation and Maintenance, Army, for the Chicago Park District’s Broadway Armory 

project, consistent with Section 8161 of Public Law 107–117.

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ADJUSTMENTS TO BUDGET ACTIVITIES

Adjustments to the budget activities are as follows:

[In thousands of dollars] 

Budget Activity 1: Operating Forces: 

4500 Sea Sparrow Test Set Upgrade .......................................... 4,300

4900 Continuity of Operations DERF, software licenses 

CNSG ........................................................................................... 5,000

4900 Sec, Comms & Info Opns DERF—Cryptologic Direct 

Support ........................................................................................ 2,000

5050 Apprentice, Engineering Technician and CO-OP Program NUWC Keyport ................................................................. 1,400

5050 Apprentice, Engineering Technician and CO-OP Program IMF Bangor ....................................................................... 700

5050 Improved Engineering Design Process .............................. 4,000

5050 Shipyard Apprentice Program ........................................... 10,000

5050 PHNSY SRM ....................................................................... 13,800

5400 Warfare Tactics PMRF ....................................................... 17,000

5450 Hydrographic Center of Excellence ................................... 2,500

5500 Continuity of Operations DERF—Office of Navy Intelligence Data Backup ................................................................... 2,000

5500 Sec, Comms & Info Opns DERF—classified ..................... 1,000

5500 Sec, Comms & Info Opns DERF—Analysts ...................... 3,000

5500 Sec, Comms & Info Opns DERF—SCI GCCS I3 .............. 3,800

5500 Sec, Comms & Info Opns DERF—GENSER GCCS I3 .... 5,400

5500 Sec, Comms & Info Opns DERF—JDIS/LOCE/CENTRIX 5,300

5500 Sec, Comms & Info Opns DERF—CMMA ........................ 1,500

5500 Sec, Comms & Info Opns DERF—CMMA ........................ 17,000

5500 Sec, Comms & Info Opns DERF—JWICS Connectivity .. 5,500

5500 Center of Excellence for Disaster Management and Humanitarian Assistance ................................................................ 4,300

5550 MROD testing, repair and replacement ............................ 1,000

5550 Central Command deployable HQ spares & tech supt .... 2,500

5850 CT/FP DERF—Strat Security Forces & Technicians ....... 7,000

5900 In-service Weapons Systems Support, underexecution .... ¥3,000

5950 Sec, Comms & Info Opns DERF—Pioneer ........................ 6,000

5950 Mark-45 Gun, 5′′ Depot Overhauls .................................... 10,500

5950 Mark-245 Decoys ................................................................. 1,000

6210 CT/FP DERF—Site Improvement, SRM ........................... 219,200

6210 Homeland Security—Guantanamo Bay Operations ......... 2,500

6210 NAS North Island CNAF Facility Renovation Projects ... 2,600

6220 CT/FP DERF—Security Forces and Technicians ............. 143,096

6220 CT/FP DERF—Law Enforcement ...................................... 32,573

6220 CT/FP DERF—Management and Planning ...................... 1,712

6220 CT/FP DERF—Shipyard Security Forces and Tech ......... 28,000

6220 Homeland Security DERF—Base Supt Svcs—Guantanamo ............................................................................................. 38,500

6220 Critical Asset Vulnerability Assessment, Navy Region 

NW ............................................................................................... 1,100

6220 Northwest Environmental Resource Centers ................... 4,200

6220 Combating Terrorism Data Base Sys (CDTS) Remote 

Data Repository ........................................................................... 1,200

6220 Earle Naval Weapons Station, N.J .................................... 1,250

Budget Activity 2: Mobilization: 

6500 Ex-Oriskany Remediation, Demil and Disposal ............... 2,800

6500 Ship Disposal Project .......................................................... 3,500

6500 Ship Disposal Program—James River .............................. 20,000

6600 Homeland Security—Medical Operations—Guantanamo 4,000

Budget Activity 3: Training and Recruiting: 

7000 ROTC Unit Operating Costs .............................................. 2,000

7200 Sec, Comms & Info Opns DERF—Pre-deploy Training ... 1,000

7200 Sec, Comms & Info Opns DERF—Imagery Training Init 1,000

7300 NPS unjustified program growth ....................................... ¥2,000

7350 Center for Civil-Military Relations at NPS ...................... 1,000

7350 CNET Distance Learning ................................................... 3,400

7350 Prototype System for Embedded Training and Performance Supt—CNET ....................................................................... 1,000

105

7350 Navy Learning Network Program CNET ......................... 2,600

7600 Continuing Education Distance Learning ......................... 1,000

7700 Naval Sea Cadet Corps ....................................................... 1,000

7820 CT/FP DERF—Site Improvement ...................................... 42,000

7830 CT/FP DERF—Security Forces and Tech ......................... 1,500

7830 Fire Fighter Protective Equipment Maintenance Pilot, 

Puget Sound Federal Fire Dept, NW Region ............................ 500

Budget Activity 4: Administration and Servicewide Activities: 

8000 CT/FP DERF—HQ Management and Planning ............... 1,600

8000 Administration Unsupported Growth ............................... ¥6,000

8000 Navy-wide PVCS Enterprise license ................................. 2,500

8250 Continuity of Opns DERF—Various/ONI Data Backup .. 3,000

8250 CT/FP DERF—HQ Management and Planning ............... 3,920

8250 Sec, Comms & Info Opns DERF—Computer Network 

Def ................................................................................................ 3,800

8250 Sec, Comms & Info Opns DERF—Enclave Boundary ...... 1,200

8250 Sec, Comms & Info Opns DERF—Intrusion Detection .... 1,140

8250 Servicewide Communications ............................................. ¥12,000

8250 Critical Infrastructure Protection Program ...................... 5,100

8500 Servicewide Transportation ............................................... ¥1,000

8550 Stainless Steel Sanitary Space System ............................. 2,500

8550 Planning, Engineering and Design .................................... ¥15,000

8600 Sec, Comms & Info Opns DERF—Acquisition and PM ... 5,500

8600 Acquisition and Program Management ............................. ¥16,000

8600 Space and Naval Warfare Info Tech Center (SITC) ......... 1,500

8600 Naval Armory Inventory and Custody Tracking .............. 800

8650 Air Systems Support ........................................................... ¥8,000

8650 Configuration Management Info System (CMIS) ............. 2,800

8700 Advanced Technical Information Support ........................ 1,800

8700 Flash Detection System ...................................................... 900

8800 Sec, Comms & Info Opns DERF—Carryon Cryptologic 

Sys ................................................................................................ 500

9000 Continuity of Operations DERF—Various/Navy Criminal Investigations ....................................................................... 2,000

9000 CT/FP DERF—Intel Security & Invest Matters .............. 3,500

9000 Sec, Comms & Info Opns DERF—HUMINT .................... 3,700

9000 Sec, Comms & Info Opns DERF—Counter Surveillance 

and Law Enforcement ................................................................. 5,000

9220 CT/FP DERF—Site Improvement—SRM .......................... 13,000

9230 NAS Jacksonville and NAS Mayport Anti-Corrosion Init 1,000

Undistributed: 

9280 Classified Programs ............................................................ 41,664

9400 Legislative Proposals Not Adopted .................................... ¥2,100

9410 Non-NMCI IT Savings ........................................................ ¥20,000

9430 FECA Surcharge ................................................................. ¥14,764

9440 Un-obligated Balance .......................................................... ¥82,000

9510 Anti-corrosion programs ..................................................... 1,000

9530 CINCPACFLT Ultra-thin Client Pilot Program ............... 5,000

EX-ORISKANY DISPOSAL

The conferees recommend an additional $2,800,000 in Operation and Maintenance, Navy for the remediation, demilitarization 

and disposal of the Ex-Oriskany in the manner determined by the 

Secretary of the Navy to be most advantageous. 

NAVAL SHIPYARD APPRENTICE PROGRAM

The conferees agree to provide an increase of $10,000,000 for 

the Shipyard Apprentice program. The conferees direct that during 

fiscal year 2003 the Navy shall induct classes of no fewer than 125 

apprentices, respectively, at each of the Naval Shipyards. The conferees further direct the Navy to include the costs of the fiscal year 

2004 class of apprentices in the budget request. 

106

NAVY PILOT HUMAN RESOURCES CALL CENTER

The conferees direct that of the funds provided in Operation and Maintenance, Navy, not less than $1,000,000 shall be made 

available for the Navy Pilot Human Resources Call Center, Cutler, 

Maine. 

CASUALTY CARE RESEARCH CENTER

The conferees recommend $4,300,000 for the Center of Excellence for Disaster Management and Humanitarian Assistance 

(COE), of which $600,000 shall be made available for the Casualty 

Care Research Center. 

CENTRAL KITSAP SCHOOL

The conferees included a general provision, Section 8108, that includes $2,700,000 for a grant to the Central Kitsap School District for the construction and outfitting of the Central Kitsap 

School special needs learning center, to meet the needs of Department of Defense special needs students at Submarine Base Bangor, 

Washington. 

CLASSIFICATION OF VESSELS

The American Bureau of Shipping has been expressly designated in 46 USC 3316(a) as the chosen instrument of the United 

States Government in classifying all vessels owned by the United 

States Government (including those leased or bareboat chartered) 

and in matters related to classification. The conferees therefore 

note with approval Military Sealift Command’s compliance with 

those requirements in its recent request for proposal for a high 

speed vessel and expect continued compliance in all subsequent 

procurements, excluding experimental or service unique vessels, 

theater-assigned assets, or as designated by the service secretary. 

Congress designated the American Bureau of Shipping for those 

purposes in furtherance of the national interest in a strong merchant marine and industrial base, and the conferees expect all government agencies to comply with 46 USC 3316(a).

NAVY MARINE CORPS INTRANET

The conferees believe that the Navy has made significant 

progress in establishing an adequate test plan for the Navy Marine 

Corps Intranet. Accordingly, the conferees have included a general 

provision requiring that the next NMCI decision point include an 

evaluation of the Operational Assessment and a certification to the 

congressional defense committees that the results of the assessment are acceptable for additional seat orders. 

The conferees remain concerned, however, about the legacy application challenges the program faces and believe that greater attention must be paid to innovative, commercially available secure 

technologies and solutions to address this problem. In an NMCI 

Stakeholders’ Council Issue Paper dated more than one year ago, 

CINCPACFLT proposed the exploration of using ultra thin clients 

as a solution to both the security and software incompatibilities 

certain legacy applications present to the NMCI network. To date, 

107

these recommendations have not been acted on. The conferees recommend $5,000,000 to conduct a pilot program at CINCPACFLT 

using ultra thin clients integrated with a network security solution 

previously evaluated by the National Security Agency at a Level of 

Trust not less than B2, and currently at a minimum Common Criteria Evaluation Assurance Level (EAL) of not less than 4.

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110

ADJUSTMENTS TO BUDGET ACTIVITIES

Adjustments to the budget activities are as follows:

[In thousands of dollars] 

Budget Activity 1: Operating Forces: 

10050 Continuity of Operations DERF—Continuity of Intel ... 1,000

10050 Sec, Comms & Info Opns DERF—I–SURSS ................... 700

10050 Sec, Comms & Info Opns DERF—TRSS ......................... 1,000

10050 Sec, Comms & Info Opns DERF—TCAC ........................ 500

10050 Sec, Comms & Info Opns DERF—RREP ........................ 200

10050 Sec, Comms & Info Opns DERF—TPC ........................... 700

10050 Sec, Comms & Info Opns DERF—MCIA Analytic Supt 2,400

10050 Sec, Comms & Info Opns DERF—TEG ........................... 1,000

10050 Sec, Comms & Info Opns DERF—TROJAN Lite ........... 1,500

10050 Sec, Comms & Info Opns DERF—ISR ............................ 2,900

10050 Sec, Comms & Info Opns DERF—FLAMES/CESAS ..... 2,000

10050 Sec, Comms & Info Opns DERF—Computer Network 

Def ................................................................................................ 2,000

10050 Sec, Comms & Info Opns DERF—Secure Wireless ........ 800

10050 Sec, Comms & Info Opns DERF—Deployed Security 

Interdiction Devices .................................................................... 700

10050 Modular General Purpose Tent System (MGPTS) ......... 4,200

10050 Joint Service NBC Defense Equipment Surveillance .... 2,400

10050 Polar Fleece shirts ............................................................ 1,000

10150 Depot Maintenance of Radar Systems ............................ 4,300

10200 CT/FP DERF—Physical Security Equipment ................. 228,000

10200 CT/FP DERF—CINC AT/FP Staffs ................................. 3,200

10200 CT/FP DERF—Physical Security Upgrades ................... 10,000

10200 Training and Support Facilities ....................................... 12,000

Budget Activity 4: Administration and Servicewide Support: 

11800 Continuity of Operations DERF—Site R ........................ 1,000

Undistributed: 

12000 FECA Surcharge ............................................................... ¥1,283

12100 Un-obligated Balance ........................................................ ¥8,000

12020 Anti-corrosion programs ................................................... 1,000

TRAINING AND SUPPORT FACILITIES

The conferees recommend an additional $12,000,000 in Oper- ation and Maintenance, Marine Corps of which $7,500,000 is provided only for mission critical requirements at the Marine AirGround Task Force Training Center, and $4,500,000 is provided 

only for the seismic retrofit of buildings at Barstow Marine Corps 

Logistics Base.

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115

ADJUSTMENTS TO BUDGET ACTIVITIES

Adjustments to budget activities are as follows:

[In thousands of dollars] 

Budget Activity 1: Operating Forces: 

12600 CONUS Combat Air Patrol DERF—Changed Alert 

Posture ......................................................................................... 380,000

12600 Unmanned Aerial Vehicles DERF—Predator O&M ...... 9,000

12600 F–16 Distributed Mission Training System .................... 8,500

12600 B–52 Attrition Reserve ..................................................... 28,000

12600 B–1 Bomber modifications ............................................... 7,700

12600 B–52 Engine Modification Study ..................................... 3,000

12775 Oklahoma City Air Logistics Center ............................... 1,400

12800 AFSAA HQ program growth ............................................ ¥4,000

12850 CT/FP DERF—AEF Force Prot Certification Tng .......... 10,200

12850 CT/FP DERF—WMD 1st Responder ............................... 46,000

12850 PACAF server consolidation ............................................ 6,800

12900 CT/FP DERF—AT/FP Facilities Upgrades ..................... 99,585

12900 Wright-Patterson AFB Dormitory Renovation ............... 1,800

12900 11th AF Range upgrades—fiber optics and power ......... 6,800

13000 CT/FP DERF—Geo Reach/Geo Base ............................... 25,800

13000 Nuclear Posture Review DERF—Info Warfare Support 5,000

13000 Sec, Comms & Info Opps DERF—Defense Recon Supt 68,630

13000 Sec, Comms & Info Opns DERF—Defense Recon Trans ¥68,630

13050 University Partnership for Operational Support ........... 3,400

13100 Continuity of Ops DERF—Nat’l Abn Cmd Ctr ............... 10,000

13100 Continuity of Ops DERF—Aircraft Comms Mods .......... 3,600

13100 Continuity of Ops DERF—UH–1 Support, NCR ............ 700

13100 Continuity of Ops DERF—Comms Sys Operators Tng 500

13100 Sec, Comms & Info Opns DERF—Commercial Imagery 2,000

13200 CT/FP DERF—CENTCOM PSD and Forward HQ ........ 700

13200 CT/FP DERF—CINC AT/FP Staff ................................... 5,500

13200 Nuclear Posture Review DERF—Mgt HQ STRATCOM 1,250

13200 Nuclear Posture Review DERF—Info Warfare Supt ..... 4,000

13200 Nuclear Posture Review DERF—Tactical Deception ..... 1,000

13200 Sec, Comms & Info Opns DERF—Critical Infrastructure Protection ............................................................................ 400

13200 Management Supt for Air Force Battle Labs ................. 4,300

13250 Continuity of Ops DERF—Combat Air Intel Sys ........... 2,300

13250 Continuity of Ops DERF—Special Purpose Comms ...... 2,000

13250 Continuity of Ops DERF—Tactical Info Program .......... 5,000

13250 Sec, Comms & Info Opps DERF—SEP classified ........... 1,200

13250 Sec, Comms & Info Opns DERF—DCGS Architecture 3,000

13250 Sec, Comms & Info Opns DERF—Integrated Broadcast 

Service .......................................................................................... 100

13250 Sec, Comms & Info Opns DERF—IBS Smart Pull Tech 100

13450 Space Control Systems, underexecution ......................... ¥5,000

13500 Satellite Systems, underexecution ................................... ¥2,000

13550 Continuity of Ops DERF—Recon Supt Activities ........... 10,000

13550 Other Space Operations, headquarters growth .............. ¥5,000

Budget Activity 2: Mobilization: 

13900 Sec, Comms & Info Opns DERF—Critical Infrastructure Protection ............................................................................ 1,800

14000 Transportation Business Area, program growth ............ ¥115,657

14050 CT/FP DERF—AEF Force Protection Certification 

Training ....................................................................................... 4,800

14050 CT/FP DERF—WMD 1st Responder ............................... 21,850

14050 Combined Air Crew System Tester (CAST) .................... 2,500

14100 CT/FP DERF—AT/FP Facility Upgrades ........................ 57,254

14100 PACAF strategic airlift ..................................................... 2,600

Budget Activity 3: Training and Recruiting: 

14500 CT/FP DERF—AT/FP Facility Upgrades ........................ 16,341

14650 MBU–20/P Oxygen Mask ................................................. 2,800

14650 AWACS Modeling and Simulation System ..................... 500

14700 Professional Development Education—underexecution, 

unjustified growth in other costs ............................................... ¥5,000

14800 CT/FP DERF—WMD 1st Responder ............................... 1,150

116

15100 Workforce Shaping—civilian manpower mispricing ...... ¥2,000

Budget Activity 4: Administration and Servicewide Activities: 

15400 Technical support activities—unjustified growth in 

other contracts ............................................................................ ¥4,000

15450 Servicewide Transportation ............................................. ¥2,000

15500 CT/FP DERF—AEF Force Protection Certification 

Training ....................................................................................... 2,900

15500 CT/FP DERF—WMD 1st Responder ............................... 4,600

15500 Hickam AFB Alternative Fuel Vehicle Program ............ 1,000

15500 Eielson AFB Utilidors ....................................................... 8,500

15550 CT/FP DERF—AT/FP Facilities Upgrades ..................... 3,976

15650 Tanker Lease Pilot Program ............................................ 3,000

15650 Administration .................................................................. ¥10,000

15700 Sec, Comms & Info Opns DERF—Modernization, 

Sustainment and Dev ................................................................. 4,900

15700 Sec, Comms & Info Opns DERF—Modernization, 

Sustainment and Dev ................................................................. 1,700

15700 Sec, Comms & Info Opns DERF—Intrusion Detect Sys 1,500

15700 Servicewide Communications .......................................... ¥9,000

15700 ALCOM Wide Mobile Radio Network ............................. 421

15750 Personnel Programs .......................................................... ¥5,000

15900 Arms control, underexecution .......................................... ¥1,000

15950 Other Servicewide Activities ............................................ ¥16,500

15950 Range residue recycling program .................................... 2,600

16100 William Lehman Aviation Center .................................... 750

16150 NAIC Foreign Materials Exploitation Facility ............... 1,000

16150 Conformable Lithography System AFIT Wright-Patterson AFB ....................................................................................... 1,000

16250 Nuclear Posture Review DERF—Security and Investigative Activities/on-line threat collection ............................... 2,000

16250 Sec, Comms & Info Opns DERF—Def Security Service 5,000

Undistributed: 

16410 Classified Programs .......................................................... 27,462

16480 MTAPP ............................................................................... 4,200

16580 FECA Surcharge ............................................................... ¥8,717

16590 Aeronautical System Center Enterprise Infostructure 

Prototype ...................................................................................... 4,600

16600 Threat Representation and Validation (TR&V) ............. 1,000

16610 Classified NAIC operationalizing MASINT .................... 3,200

16620 Information Assurance Initiative for Air Force Material Command .............................................................................. 1,100

16630 Un-obligated Balance ........................................................ ¥33,000

16640 CONOPS Costs .................................................................. ¥50,000

16685 Anti-corrosion programs ................................................... 1,000

16690 Utilities .............................................................................. ¥55,000

EGLIN AFB BOS SIMULATION MODEL

The conferees recommend that of the funds provided in Operation and Maintenance, Air Force, $1,000,000 shall be made available for the Eglin Air Force Base, Base Operations and Support 

simulation model. 

COMBAT SEARCH AND RESCUE (CSAR) PLATFORM

The accompanying bill provides that of the funds made available in Operation and Maintenance, Air Force, $2,000,000 may be 

obligated for the deployment of Air Force active duty and Reserve 

CSAR air crews to the United Kingdom to participate in an Interfly program to train, operate, evaluate and exchange operational 

techniques and procedures on the EH–101. The Air Force has identified mission deficiencies with the current CSAR platform for future requirements, which include mission reaction time, inadequate 

range, insufficient cabin space, poor survivability, insufficient situVerDate 0ct 09 2002 14:16 Oct 15, 2002 Jkt 019006 PO 00000 Frm 00118 Fmt 6601 Sfmt 6601 E:\PICKUP\HR732.XXX HR732
117

ational awareness, and inadequate adverse weather capability. Following the Inter-fly program, the Secretary of the Air Force shall 

report to the congressional defense committees on the suitability of 

this aircraft as the future CSAR platform.

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ADJUSTMENTS TO BUDGET ACTIVITIES

The adjustments to the budget activities are as follows:

[In thousands of dollars] 

Budget Activity 1: Operating Forces: 

17050 (TJS—Combating Terrorism Readiness Initiative Fund 

(Transfer from DERF) ................................................................ 12,000

17050 (TJS—JCS Exercise Program .......................................... ¥5,000

17100 SOCOM—Hydration on the Move (Camel Bak) ............. 1,000

17100 SOCOM—SPECWARCOM Mission Support Center ...... 1,700

Budget Activity 3: Training and Recruiting: 

17400 Classified Programs .......................................................... ¥6,869

17460 DAU—DCMS/IT Organizational Composition Research 1,000

17460 DAU—Distance Learning and Performance ................... 2,975

17480 DHRA—DLAMP ................................................................ ¥19,155

17480 DHRA—JRAP .................................................................... ¥24,250

17480 DHRA—Joint Military Education Venture Forum ........ 500

Budget Activity 4: Administration and Servicewide Activities: 

17750 Civil Military Program—Innovative Readiness Training ................................................................................................ 8,500

17750 Civil Military Program—Challenge Program ................. 1,250

17775 Classified Programs .......................................................... 385,072

17850 DFAS—Financial Operations (Transfer from DERF) .... 5,900

17875 DHRA—Critical Infrastructure Protection (Transfer 

from DERF) ................................................................................. 500

17875 DHRA—Civilian Personnel Data System ....................... ¥20,000

17900 DISA—Secure Voice Teleconferencing System (Transfer from DERF) ........................................................................... 2,500

17900 DISA—Defense Conferencing Enhancement Program 

(Transfer from DERF) ................................................................ 8,900

17900 DISA—DISA Continuity of Operations (Transfer from 

DERF) .......................................................................................... 2,500

17900 DISA—Bandwidth Expansion (Transfer from DERF) ... 7,600

17900 DISA—IA, Intell/Coalition Encrp (CWAN) (Transfer 

from DERF) ................................................................................. 5,000

17900 DISA—IA, Intell/Coalition Encrp (CFBL) (Transfer 

from DERF) ................................................................................. 1,600

17900 DISA—IA Computer Network Defense (Transfer from 

DERF) .......................................................................................... 3,500

17900 DISA—On-site administrators for primary sites 

(Transfer from DERF) ................................................................ 3,000

17900 DISA—White House Communications (Transfer from 

DERF) .......................................................................................... 3,000

17900 DISA—Wireless Priority Service Program ..................... ¥73,000

17900 DISA—Travel Program Growth ....................................... ¥1,000

17900 DISA—CWIN Contract Savings ...................................... ¥1,000

17900 DISA—DISA Tier One and DERF Reductions ............... ¥10,000

17925 DLA—Critical Infrastructure Protection (Transfer from 

DERF) .......................................................................................... 600

17925 DLA—Information Technology Network Consolidation ¥10,000

17925 DLA—PTAP ....................................................................... 3,500

17975 DODEA—Enhanced Force Protection (Transfer from 

DERF) .......................................................................................... 24,200

17975 DODEA—GAVRT Project Expansion .............................. 2,550

17975 DODEA—Lewis Center for Educational Research ......... 3,440

17975 DODEA—Family Support Services ................................. 2,500

17975 DODEA—UNI Math Teacher Leadership ....................... 1,000

17975 DODEA—Galena IDEA .................................................... 4,250

18000 DSCA—Program Growth .................................................. ¥2,000

18050 DSS—Critical Infrastructure Protection (Transfer from 

DERF) .......................................................................................... 500

18075 DTRA—Chemical & Biological Defense Capabilities 

Assessment .................................................................................. 1,000

18075 DTRA—Unconventional Nuclear Threat ........................ 34,000

18100 OEA—George AFB ............................................................ 2,125

18100 OEA—Norton AFB ............................................................ 2,550

18100 OEA—Bayonne Military Ocean Terminal ...................... 2,500

121

18100 OEA—Philadelphia Naval Business Center ................... 3,500

18100 OEA—Cecil Field .............................................................. 2,500

18100 OEA—Charles Melvin Price Support Center ................. 1,000

18100 OEA—East Bay Conversion and Reinvestment Commission Pilot ................................................................................ 1,000

18100 OEA—CCAT ...................................................................... 2,000

18100 OEA—Hunters Point NSY ............................................... 1,400

18100 OEA—Relocate Barrow Landfill ...................................... 4,000

18100 OEA—Fitzsimmons Army Hospital ................................. 6,000

18100 OEA—Port of Anchorage Intermodal Marine Facility 

Program ....................................................................................... 5,000

18100 OEA—Security Lighting for Platt Bridge ....................... 600

18100 OEA—Commonwealth of Pennsylvania—Reimbursement of extraordinary Quecreek Mine disaster rescue/recovery expenses ................................................................................ 2,000

18125 OSD—OSD Continuity of Operations (COOP) (Transfer 

from DERF) ................................................................................. 18,000

18125 OSD—NCR COOP (Transfer from DERF) ...................... 10,500

18125 OSD—NICP Reserve Support (Transfer from DERF) ... 4,000

18125 OSD—Hard and Deeply Buried Targets (Transfer from 

DERF) .......................................................................................... 3,050

18125 OSD—CIP—Biological Agent Security (Transfer from 

DERF) .......................................................................................... 2,000

18125 OSD—CIP—Nuclear Security Command and Control 

(Transfer from DERF) ................................................................ 400

18125 OSD—CIP Technology & Consequence Management 

(Transfer from DERF) ................................................................ 6,600

18125 OSD—Information Operations (Transfer from DERF) .. 1,500

18125 OSD—Horizontal Fusion Analysis (Transfer from 

DERF) .......................................................................................... 2,000

18125 OSD—CENTRIX (Transfer from DERF) ......................... 14,000

18125 OSD—Classified (Transfer from DERF) ......................... 9,500

18125 OSD—Classified Programs (Change to DERF) .............. 52,600

18125 OSD—Program Growth .................................................... ¥17,000

18125 OSD—Management Headquarters .................................. ¥11,600

18125 OSD—Information Technology Network Consolidation ¥10,000

18125 OSD—Legacy—CSS Alabama .......................................... 600

18125 OSD—Middle East Regional Security Issues Program .. 1,500

18125 OSD—ADUSD (MPP&R) Wearable Computers—Existing Program ................................................................................. 3,400

18125 OSD—Commercial Technologies for Maintenance Activities (CTMA) ............................................................................ 5,750

18125 OSD—Clara Barton Center .............................................. 3,000

18125 OSD—Pacific Command Regional Initiative .................. 5,100

18125 OSD—National Dedicated Fiber Optic Network Feasibility Study .................................................................................. 1,250

18125 OSD—Studies and Analysis, SECDEF Study Fund ...... ¥1,200

18125 OSD—PA&E Long Range Planning ................................ ¥5,300

18125 OSD—Logistics Systems Modernization ......................... ¥2,000

18125 OSD—C31 Mission Analysis Fund .................................. ¥4,894

18125 OSD—Intelligence Fusion Study continuation ............... 4,250

18125 OSD—Command Information Superior Architectures ... 2,800

18150 SOCOM—Combat Development Activities (Transfer to 

DERF) .......................................................................................... 7,000

18150 SOCOM—Combat Development Activities—Classified 

(Change to DERF) ....................................................................... 16,000

18200 TJS—Critical Infrastructure Protection (Transfer from 

DERF) .......................................................................................... 300

18200 TJS—CINC for Homeland Security (Transfer from 

DERF) .......................................................................................... 41,000

18200 TJS—Other Combating Terrorism Initiatives (Transfer 

from DERF) ................................................................................. 1,459

18200 TJS—Vulnerability Assessments, AT/FP requirements 

(Transfer from DERF) ................................................................ 400

18200 TJS—Program Growth ..................................................... ¥12,000

18200 TJS—Counter Terrorism Analysis Method for Adaptive 

Threats ......................................................................................... 1,000

18200 TJS—NDU XXI ................................................................. 3,400

122

18225 WHS—Classified Program (Transfer from DERF) ......... 28,000

18225 WHS—Information Technology Network Consolidation ¥10,000

Undistributed: 

19000 Legacy ................................................................................ 8,400

19010 Impact Aid ......................................................................... 30,000

19015 Impact Aid for Children with Disabilities ...................... 3,000

19210 FECA Reduction ................................................................ ¥6,455

19220 Un-obligated Balance ........................................................ ¥25,000

19245 Operation Walking Shield ................................................ 3,500

19250 NIMA Commercial Imagery ............................................. 15,000

LEGACY

The conference agreement provides $8,400,000 for continuation 

of the Legacy program. From within these funds, the conferees direct the Department to continue naval archaeology programs in the 

Lake Champlain basin. Of equal importance to the conferees are 

the reclamation of the C.S.S. Alabama, the recovery and preservation of the U.S.S. Monitor, the U.S.S. Constitution Museum, the 

Graveyard of the Atlantic Museum, the U.S.S. Massachusetts and 

other naval vessels of Battleship Cove, the preservation of the 

cruiser Olympia of the Independence Seaport Museum, the preservation of the LST 325 in the Port of Mobile and restoration of the 

Lincoln Cottage of the Armed Forces Retirement Home. The Undersecretary of Defense (Comptroller) shall report to the Appropriations Committees no later than March 15, 2003, on the allocation 

of Legacy funding, and the status of the projects named above. 

MOTOR VEHICLE SAFETY INITIATIVES

The conferees are aware of Department of Defense data showing that the leading cause of death and serious injury for all military personnel is motor vehicle crashes as opposed to training accidents or combat. Between fiscal year 2001 and the first 10 months 

of fiscal year 2002, Department of Defense data show fatalities 

among military personnel in motor vehicle crashes have increased 

by 35 percent—from 191 to 258. Fiscal year 2002 would appear to 

be the highest motor vehicle fatality rate for military personnel in 

at least four years, with the Marine Corps experiencing an especially high death rate compared to the other services. The Marine 

Corps reports that of the 25 Marines killed in motor vehicle crashes in fiscal year 2001 and 46 killed in fiscal year 2002, well over 

half were not wearing seat belts. During the Thanksgiving holiday 

period, law enforcement officials across the nation will conduct special seat belt enforcement activities as part of the U.S. Department 

of Transportation Click It Or Ticket program. The conferees strongly encourage the Secretary of Defense to direct all services to join 

the Marine Corps in actively participating in this program and 

other similar seat belt usage efforts throughout the year. The Secretary is directed to submit a report to the congressional defense 

committees within 90 days of enactment of this Act summarizing 

personal motor vehicle safety statistics of each service for the last 

five fiscal years and outlining the plans of each service to increase 

efforts to reduce the level of deaths and injuries suffered by its personnel from motor vehicle accidents. 

123

DLAMP 

The conferees remain concerned about the focus and management of the Defense Leadership and Management Program 

(DLAMP). Though during fiscal year 2002 DLAMP restructured, 

the outcome of the restructure is unclear and the full costs of the 

program are poorly defined. The Department needs to insure that 

the restructured program is more mission-oriented, focused, efficient, and effective. Additionally, the conferees direct that any reductions to this program cannot be applied to the leased facility in 

Southbridge, Massachusetts.

STARBASE 

The conferees are aware of the high demand and strong support for the STARBASE civil-military program that has reached 

over 200,000 youths and their families at 39 locations. The conferees urge the Department to strengthen its management of this 

program in line with the recommendations made in the 

STARBASE program annual report. The conferees direct the Secretary of Defense to provide a report to the congressional defense 

committees by no later than March 1, 2003 summarizing the status 

of implementing program improvements in the areas of systematic 

assessment, core curriculum, host service component regulations, 

STARBASE resource/training center, startup program standardization, and quality control.

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ADJUSTMENTS TO BUDGET ACTIVITIES

Adjustments to the budget activities are as follows:

[In thousands of dollars] 

Budget Activity 1: Operating Forces: 

19530 Division Forces/ECWCS ................................................... 2,800

19640 Forces Readiness Operations Support/Controlled Humidity Preservation .................................................................... 2,000

19650 Land Forces System Readiness/Homeland Security 

DERF Transfer—Enhanced Secure Communications .............. 5,900

19650 Land Forces System Readiness/Homeland Security 

DERF Transfer—Enhanced Secure Communications .............. 25,600

19650 Land Forces System Readiness/Information Operations 

Sustainment ................................................................................ 1,500

19680 Base Support/CT–FP DERF Transfer—Access Control 

Program ....................................................................................... 20,000

19680 Base Support/Homeland Security DERF Transfer—Enhanced Secure Communications ................................................ 30,700

19680 Base Support/Salute our Services Pilot Project .............. 170

Budget Activity 4: Administration and Servicewide Activities: 

19980 Administration/Headquarters Program Growth ............. ¥5,000

19990 Servicewide Communications/Homeland Security 

DERF Transfer—Enhanced Secure Communications .............. 2,400

Other Adjustments: 

20160 Additional Military Technicians ...................................... 4,000

SECURE WIRELESS TECHNOLOGY

The conferees recommend that of the funds requested in the 

Defense Emergency Response Fund and transferred to Operation 

and Maintenance, Army Reserve, for enhanced secure communications, $4,500,000 may be available to increase the availability of 

current generation NSA-approved secure nationwide digital cell 

phones to meet urgent service needs. Furthermore, the conferees 

believe that significant development opportunities have arisen in 

this area since the submission of the budget request. An accelerated research and development investment strategy could realize 

advancements that would greatly benefit all defense community 

users of this technology. The conferees direct the Department to 

consider accelerating the National Security Agency’s continued development of secure cellular wireless technology and multi-band 

functionality. To accomplish this the conferees would be supportive 

of a reprogramming of $10,000,000 to support development of a 

more robust secure nationwide cellular capability with multi-band 

functionality.

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ADJUSTMENTS TO BUDGET ACTIVITIES

Adjustments to the budget activities are as follows:

[In thousands of dollars] 

Budget Activity 1: Operating Forces: 

26180 Divisions/ECWCS .............................................................. 4,200

26180 Divisions/Homeland Security Training, Camp Gruber .. 2,900

26200 Corps Combat Forces/Unjustified Growth for Other 

Purchases ..................................................................................... ¥3,000

26360 Azure Blue Cannon Bore Cleaning System .................... 1,000

26420 Base Operations Support/Homeland Security DERF 

Transfer—Long-Haul Communications ..................................... 86,200

26420 Base Operations Support/Homeland Security DERF 

Transfer—General Communications ......................................... 48,500

26440 Facilities Sustainment, Restoration and Modernization/1st Bn, 118th Infantry Brigade Rifle Range ..................... 3,000

26480 Miscellaneous Activities/Distributed Battle Simulation 

Program Support ......................................................................... 895

Budget Activity 4: Administration and Servicewide Activities: 

26680 Information Management/Interoperable Automation 

Continuity of Operations ............................................................ 1,000

26680 Information Management/Information Operations ........ 4,200

Other Adjustments: 

26820 Angel Gate Academy ........................................................ 2,500

26830 National Emergency and Disaster Information Center 2,600

26840 Emergency Spill Response ............................................... 500

26850 Distributed Learning Project ........................................... 30,000

26890 Joint Training and Experimentation Program ............... 3,400

26940 Rural Access to Broadband Technology .......................... 2,100

26960 Additional Military Technicians ...................................... 11,300

26970 National Guard Global Education Project ...................... 500

26980 All Terrain Military Utility Vehicle ................................ 2,170

26990 Northeast Center for Homeland Security Feasibility 

Study ............................................................................................ 1,000

27000 Courseware to Educate IT Managers .............................. 1,700

27010 Information Assurance ..................................................... 1,275

27030 WMD Response Element Advanced Laboratory Integrated Training and Indoctrination ........................................... 1,700

27050 Cold Weather Clothing ..................................................... 300

27057 Southeast Regional Terrorism Training ......................... 1,200

27070 Communicator Emergency Notification Center .............. 1,000

INFORMATION ASSURANCE

The conferees recommend $1,275,000 for information assurance 

only for a local community education agency in a collaborative information effort with the Software Engineering Institute. 

SECURE WIRELESS TECHNOLOGY CAPABILITY

The conferees remain concerned that the Army National Guard 

lacks a near-term capability or plan to ensure a secure cellular 

phone capability for use in the event of a domestic emergency. Accordingly, the conferees direct the Director of the Army National 

Guard to report to the congressional defense committees within 30 

days of enactment of this legislation on its plans to achieve that objective and would be supportive of a reprogramming to increase 

this capability.

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ADJUSTMENTS TO BUDGET ACTIVITIES

Adjustments to the budget activities are as follows:

[In thousands of dollars] 

Budget Activity 1: Operating Forces: 

27650 Aircraft Operations/ECWCS ............................................ 2,800

27800 Facilities, Sustainment, Restoration and Modernization/CT–FP DERF Transfer—Facility Upgrades ...................... 38,015

27800 Facilities, Sustainment, Restoration and Modernization/Key Field Facility Renovation ............................................ 1,000

27850 Depot Maintenance ........................................................... 2,500

Budget Activity 4: Administration and Servicewide Activities: 

28050 Administration/Information Operations .......................... 3,500

Other Adjustments: 

28160 National Guard State Partnership Program .................. 1,000

28170 Project Alert ...................................................................... 1,375

28215 Defense Support Evaluation Group ................................. 2,800

28250 Surveying Training Systems ............................................ 1,000

28260 Instrument Landing System at Rickenbacker ANG 

Base .............................................................................................. 500

28270 Cold Weather Clothing ..................................................... 300

28280 Medical Equipment ........................................................... 350

OVERSEAS CONTINGENCY OPERATIONS TRANSFER FUND

The conference agreement provides $5,000,000 for the Overseas Contingency Operations Transfer Fund. 

UNITED STATES COURT OF APPEALS FOR THE ARMED FORCES

The conference agreement provides $9,614,000 for the United 

States Court of Appeals for the Armed Forces. 

ENVIRONMENTAL RESTORATION, ARMY

The conference agreement provides $395,900,000 for Environmental Restoration, Army. 

ENVIRONMENTAL RESTORATION, NAVY

The conference agreement provides $256,948,000 for Environmental Restoration, Navy. 

ENVIRONMENTAL RESTORATION, AIR FORCE

The conference agreement provides $389,773,000 for Environmental Restoration, Air Force. 

ENVIRONMENTAL RESTORATION, DEFENSE-WIDE

The conference agreement provides $23,489,000 for Environmental Restoration, Defense-Wide. 

ENVIRONMENTAL RESTORATION, FORMERLY USED DEFENSE SITES

The conference agreement provides $246,102,000 for Environmental Restoration, Formerly Used Defense Sites, instead of 

$212,102,000 as proposed by the House and $252,102,000 as proposed by the Senate. 

138

OVERSEAS HUMANITARIAN, DISASTER, AND CIVIC AID

The conference agreement provides $58,400,000 for Overseas 

Humanitarian, Disaster, and Civic Aid. 

FORMER SOVIET UNION THREAT REDUCTION

The conference agreement provides $416,700,000 for the 

Former Soviet Union Threat Reduction program. 

SUPPORT FOR INTERNATIONAL SPORTING COMPETITIONS, DEFENSE

The conference agreement provides $19,000,000 for the Support for International Sporting Competitions, Defense account. 

DEFENSE EMERGENCY RESPONSE FUND

The conference agreement provides amounts approved for 

those items requested in the Defense Emergency Response Fund in 

the appropriation accounts and line items identified by the Department.

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PROCUREMENT OF SECURITY VEHICLES

The conferees are concerned about the justification provided for 

the procurement of physical security vehicles. The services’ budget 

requests provide little explanation for the number of vehicles requested or the fluctuation in costs from one year to the next. In 

fact, the current budget request presents a disparity in costs by 

service ranging from $180,000 to $250,000 per physical security vehicle. The conferees believe that a better presentation of the request for procurement of these vehicles is necessary. Accordingly, 

the conferees direct the Under Secretary of Defense (Comptroller) 

to be the central coordinator of all budget justification material for 

physical security vehicle procurement. The Under Secretary shall 

submit to the congressional defense committees a separate consolidated justification that clearly explains each service’s requirement 

and the maximum purchase cost authority requested. 

NATIONAL IMAGERY AND MAPPING AGENCY (NIMA) 

NFIP/JMIP CONSOLIDATION

The House included language directing that all NIMA funding 

be consolidated within the National Foreign Intelligence Program 

(NFIP) account. The Senate did not include such language. In response to the House direction, the Secretary of Defense stated that 

he is working with the Director of Central Intelligence (DCI) to determine the most efficient resource strategy for NIMA and is committed to revising the NIMA budget appropriately in the fiscal year 

2004 President’s Budget Request. The conferees appreciate the 

commitment of the Secretary of Defense on this matter, and on the 

basis of this commitment, the House recedes. 

SUPPORT TO SMALL BUSINESS

The conferees recognize the importance of small business to 

the Department’s procurement chain. In order to effectively compete in federal procurement processes, small businesses require 

proficiency in electronic commerce and electronic business practices. As such, the conferees recommend the Department seek innovative methods for providing support to small business supply providers in these areas and full funding of the Supply Chain Management program.

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UH–60 BLACKHAWK HELICOPTERS

The conference agreement includes $269,916,000 to procure 19 

UH–60 Blackhawk helicopters. This is an increase of $116,555,000, 

providing for an additional seven aircraft. Of the additional aircraft 

in the conference agreement, two UH–60L aircraft are available 

only for the Army Reserve as described in House Report 107–532. 

Of the additional aircraft, three shall be HH–60L Medical Evacuation (MEDEVAC) models available only for units of the Army National Guard, and two aircraft shall be UH–60L models available 

only for units of the Army National Guard. 

CH–47F UPGRADE PROGRAM RESTRUCTURING

The conferees agree to provide an additional $39,100,000 to facilitate the restructuring of the CH–47F Chinook helicopter upgrade program. Given the critical importance of this improved helicopter to the Army’s Objective Force, these funds should be used 

to facilitate a program restructuring in order to upgrade the full 

fleet of helicopters (which is currently 465) at the most efficient 

economic rate, which the conferees believe is between 36 and 48 

helicopters per year. The Army is directed to ensure that out-year 

budgetary and program plans are implemented to meet 100 percent 

of the Army’s CH–47F Objective Force helicopter requirement by 

no later than 2016. 

ATIRCM 

The conferees agree not to rescind $3,000,000 for ATIRCM as 

recommended by the House. These funds should have been reprogrammed to USSOCOM when responsibility for this program was 

moved to USSOCOM. The conferees direct the Army to expeditiously submit a reprogramming to the Congress in order to properly realign these funds to Procurement, Defense-Wide.

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CONTINUITY OF OPERATIONS

The budget request included $215,000,000 in funding under 

the Defense Emergency Response Fund for activities associated 

with upgrades and improvements to alternate relocation sites. The 

conferees have provided $120,000,000 for these activities. The conferees note that the Army, which is the executive agent, has provided little justification for these funds, no plan for their execution, 

has not coordinated military construction requirements at the sites, 

and has not demonstrated a commitment to support funding for 

these activities in subsequent years. For these reasons, the conferees direct that none of the funds provided for alternate relocation sites may be obligated until 30 days after the Secretary of the 

Army provides a report to the congressional defense committees 

which provides, in detail, the proposed use of funding, a timeline 

for execution, a review of necessary improvements to infrastructure, and a plan for funding in subsequent years. 

STRYKER BRIGADE COMBAT TEAMS

In order to enhance the Army’s transformation initiatives, the 

conferees provide an additional $59,500,000 for fielding of the 

Stryker Brigade Combat Teams (SBAT). Of this amount, 

$42,500,000 is provided in the ‘‘Operation and Maintenance, Army’’ appropriation and $17,000,000 in the ‘‘Other Procurement, Army’’ appropriation. The conferees direct that the additional operation 

and maintenance funding be made available to the Army Materiel 

Command Transformation Support Office, specifically to support 

the fielding of the six brigade teams. 

GENERATORS

The conference agreement provides $79,180,000, as provided in 

the budget request, for generators and associated equipment. Of 

this amount, the conferees direct that no less than $2,400,000 shall 

be available only for the procurement of 2kW Military Tactical 

Generators, as proposed in the budget request.

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CVN–77 INTEGRATED WARFARE SYSTEM (IWS) 

The conferees agree to provide $90,000,000 for the CVN–77 Integrated Warfare System (IWS) instead of $250,000,000 as proposed by the House and no funding as proposed by the Senate. The 

conferees do not agree to the House restriction on the obligation of 

funds for the CVN–77 IWS contract data package. 

It is the sense of the conferees that every opportunity should 

be taken to include potentially transformational technologies on the 

CVN–77 as it is being constructed. This will not only provide enhanced warfighting and defensive capabilities in the near-term, but 

also lay a cornerstone for risk and cost reduction on the CVN(X) 

program which is also strongly supported by the conferees. 

To that end, the conferees direct that the additional funds provided are only for transformational technologies and initiatives for 

other CVN–77 IWS to include: (1) design and development of a 

common flexible island, (2) full service integrated networks to include data, voice, sensor, and HM&E monitoring and control, (3) 

multi-modal display workstation concepts using middleware and 

open system architectures, and (4) integrated advanced strike and 

mission planning capabilities for both the ship and embarked 

airwings. 

The conferees also direct the Assistant Secretary of the Navy 

for Research, Development, and Acquisition to provide, no later 

than March 15, 2003, a revised program acquisition strategy for 

the CVN–77 which incorporates these transformational initiatives 

and establishes a foundation for regular technology refresh and 

product improvements during the life cycle of the ship. 

ROPELESS ELEVATOR

The conferees understand the Department of the Navy is working on design concepts for ropeless elevator systems in aircraft carriers. The conferees support this effort and encourages the Navy to 

continue this development in future defense budgets.

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F–22 

The conferees agree with the language in the House and Senate reports regarding the F–22 program. In addition, the conferees 

agree, with some modification, to a general provision included in 

the House bill related to the F–22 testing program. Finally, of the 

amounts provided for the F–22, the conferees designate 

$207,000,000, requested for the producibility improvement program, as a special interest item. If the Air Force believes it is necessary to use these funds for an alternative purpose, the Department must submit a prior approval reprogramming. 

C–17 AIRCRAFT

In the Department of Defense’s fiscal year 2003 budget submission, the Air Force did not request a sufficient amount to fully fund 

the purchase of 15 C–17 cargo aircraft per year. Instead, it requested only the amount of funds it expected to obligate each year 

to start production of 15 aircraft, and financed the remaining costs 

in later years. This financing scheme runs counter to the ‘‘full funding’’ principles which guide Federal government procurement practice, and thereby creates a future liability for the Air Force and 

Congress. For this reason, the conferees disapprove the Air Force’s 

C–17 financing proposal. As such, the conference agreement in- cludes an increase of $585,900,000 over the budget request to fully 

fund the purchase of 15 C–17 aircraft in fiscal year 2003. Additionally, the conferees agree to retain House language which directs 

that funds made available within the ‘‘Aircraft Procurement, Air 

Force’’ account be used for advance procurement of 15 aircraft. 

NATO AWACS 

Not later than 60 days after the enactment of this Act, the 

Commander in Chief of the United States European Command 

shall submit a plan to the congressional defense committees that 

provides for the refurbishment and re-engining of the NATO 

AWACS aircraft fleet. This report should reflect the significant contribution made by the NATO AWACS fleet in response to the attack on the United States on September 11, 2001, and the invocation of Article V of the North Atlantic Treaty. The plan shall also 

describe any necessary memorandum of agreement between the 

United States and NATO for the refurbishment and re-engining of 

these aircraft.

APPLICATION OF BERRY AMENDMENT TO MULTI-YEAR AIRCRAFT

LEASE PILOT PROGRAM

Due to the special circumstances surrounding the Multi-Year 

Aircraft Lease Pilot Program authorized in fiscal year 2002, Congress enacted Section 308 of P.L. 107–206 to clarify Berry Amendment restrictions on the use of foreign sourced specialty metals in 

commercial aircraft to be leased under this program. In this case, 

the Congress concurred with views expressed by Air Force officials 

that the unique financial and time-sensitive requirements of the 

aircraft lease arrangements and the administrative complexity involved in making Berry Amendment determinations on a plane-byVerDate 0ct 09 2002 14:16 Oct 15, 2002 Jkt 019006 PO 00000 Frm 00208 Fmt 6601 Sfmt 6601 E:\PICKUP\HR732.XXX HR732
207

plane basis for over 100 aircraft built under commercial practices 

instead of under military acquisition procedures would add so 

much cost and delay that the entire program would be undermined. 

Enactment of Section 308 was intended to provide the opportunity 

to ensure that the Air Force would be able to economically procure 

air refueling tanker replacement aircraft necessary to the national 

security while maintaining the overall integrity of the Berry 

Amendment for future application. 

The conferees note the assertion expressed by some industry 

officials that if the aircraft manufacturer for this lease program 

were allowed to calculate Berry Amendment requirements on a system-level basis for the entire fleet of aircraft, it could demonstrate 

that these aircraft contain a very high percentage content of domestically produced specialty metals such as titanium. The conferees believe this data could be useful in future deliberations 

about this program. The Secretary of the Air Force is therefore directed to provide the congressional defense committees with estimates of the amount, value, and overall percentage of foreign and 

domestic-sourced specialty metals (under the definitions of the 

Berry Amendment) to be used in the fleet of leased aircraft under 

this program and how this compares to the specialty metal content 

of military aircraft that have been procured by the Air Force over 

the last five years. The Secretary shall use such methodology as he 

determines will provide the most accurate estimates at a reasonable cost after consultations with the specialty metals and aircraft 

manufacturing industries. This report shall be submitted to Congress no later than six months after enactment of this Act.

PREDATOR UNMANNED AERIAL VEHICLE (UAV) 

The conferees agree to provide an additional $26,000,000 for 

the acquisition of not less than three Predator B turboprop aircraft, 

including spares. Should the program office determine there are 

additional costs for aircraft, spares, support equipment, sensors, 

and productionization efforts which cannot be accommodated within the amount appropriated, the Air Force should consider submitting to Congress the appropriate reprogramming request to fund 

these requirements. 

The conferees agree to provide an additional $68,000,000 in 

transfer from the Defense Emergency Response Fund for the acquisition of Predator A UAVs. This among, when added to the request 

of $23,068,000, is for the acquisition of 22 air vehicles. 

DEFENSE AIRBORNE RECONNAISSANCE PROGRAM

The conferees agree to reduce funding for the RIVET JOINT Quick Reaction Capability (QRC) by $12,700,000 instead of 

$15,000,000 as proposed by the House and no reduction as proposed by the Senate.

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The conferees are aware the Air Force preferred to have these 

funds transferred to a different line in the Aircraft Procurement, 

Air Force account to fund the same QRC on the COMPASS CALL 

platform. The conferees agree that should the Air Force determine 

that it wishes to proceed with putting this QRC on the COMPASS 

CALL aircraft, it should submit a request to reprogram funds and 

justify the requirement for expanding the program.

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MISCELLANEOUS EQUIPMENT

The conferees agree that the Chiefs of the Reserve and National Guard components could exercise control of modernization 

funds provided in this account. The conferees further agree that 

separate submissions of a detailed assessment of its modernization 

priorities by the component commanders is required to be submitted to the defense committees. The conferees expect the component commanders to give priority consideration to the following 

items: HMMWV, Family of Medium Tactical Vehicles, Commercial 

Construction Equipment, AN/TMQ–41A Meteorological Measuring 

Sets, Bladefold Kits for Apache Helicopters, Combat Arms Training 

Systems, Firefinder Systems, the National Guard Lightway Project 

and the Paul Revere Portal, Next Generation Small Loader, Modern Burner unit, APN–21 beacon radar, P4RC+(P5) airborne combat training pods, APN–241 radar, F–16 Re-engining, Abrams Fullcrew Interactive Skills Trainer, Cockpit Air Bag System, and 

Deployable Force-on-Force Integrated Range System. 

DEFENSE PRODUCTION ACT PURCHASES

The conferees agree to provide a total of $73,057,000 for the 

Defense Production Act Purchases, the amount of the budget request.

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MAGNETO INDUCTIVE INITIATOR

The President’s budget request includes $3,000,000 to be used 

for Engineering and Manufacturing Development of the Magneto 

Inductive Initiator. The conferees support the rapid fielding of this 

capability which will allow for U.S. forces to have a remote precision demolition capability that is highly reliable in hardened structures, bunkers, caves, buildings, and in the littoral surf zone. The 

conferees ask to be kept apprised of the progress of this important 

program. 

SOLID STATE LASERS

There has been substantial technical progress in the ongoing 

solid state laser development efforts, and the need to continue 

rapid progress toward developing an Army tactical laser weapons 

capability for the Objective Force. Therefore, the conferees urge the 

Army to allocate $11,200,000, as proposed in the fiscal year 2003 

budget request, for High Energy Laser Technology to the current 

Solid State Heat Capacity Laser program. 

BRILLIANT ANTI-ARMOR TECHNOLOGY (BAT) AND BAT P3I 

SUBMUNITION PROGRAM

The conferees agree with the recommendations found in both 

the House and Senate reports to terminate the BAT program, and 

accordingly, include a reduction of $145,293,000 to this program. 

The conference agreement also provides $45,000,000 of the funds 

requested for this program for the purpose of developing and testing a multi-mode seeker technology. In addition, the conferees direct the Army establish a new project code for the seeker development to distinguish this work from the base BAT and BAT P3I programs. 

LOITERING ATTACK MISSILE REQUIREMENTS REVIEW

The conferees direct the Secretary of the Army to submit a report to the congressional defense committees by no later than 

March 31, 2003, comparing and contrasting the cost, technical risk, 

schedule risk, and combat capability of replacing the planned Loitering Attack Missile (LAM) with a comparable capability centered 

on the use of Unmanned Aerial Vehicles (UAV) with a smart seeker munition. This report shall assess whether a UAV with a smart 

seeker munition can provide equal or better combat capability 

within the same or a shorter timeframe compared to use of the 

LAM under the existing Army Objective Force Transformation 

plan. This report shall also include an analysis of the relative capabilities of each system to discern friend or foe in real time and to 

limit collateral damage. It shall also assess whether a UAV/smart 

munition option provides better value and greater overall combat 

effectiveness to the Army when considering the added potential of 

combining surveillance and strike capability on the same platform.

FUTURE COMBAT SYSTEM AND INTELLIGENT MINEFIELDS

The conferees agree to provide an additional $105,000,000 for 

the Army’s next generation warfighting capability, the Future 

256

Combat System. The conferees also agree with the Senate’s language that encourages the Army to invest part of this additional 

funding into a development program for a next generation intelligent minefield. The conferees direct that the Army clearly define 

the requirements for a next generation intelligent minefield and 

ensure compliance with the Ottawa Treaty, and report back to the 

House and Senate Appropriations Committees with detailed plans 

for such a system. The conferees understand that the Army has already begun this process with plans to incorporate the Intelligent 

Munitions System (IMS) into the Future Combat System. The conferees urge that the Army consider using a portion of this additional funding to begin development of the IMS. Funds for the intelligent minefield may be obligated before the Milestone B decision 

for the Future Combat System program, for demonstration and validation of technologies as appropriate. 

FUTURE TESTING REQUIREMENTS

The conferees agree with the House report language requiring 

the Secretary of Defense to provide a report on Future Testing Requirements. The Senate did not address this matter. The conferees 

direct the Secretary of Defense to submit this report to the congressional defense committees not later than May 1, 2003. The report 

should provide an analysis of the capabilities of the test ranges, including the need for investment in new equipment; the capabilities 

of current modeling and simulation techniques used in testing and 

evaluation; recommend a means of using modeling and simulation 

techniques to make the testing of weapons systems more efficient 

and effective; and propose a five-year plan of integrated investment 

for both ranges and modeling and simulation techniques. 

NON-LINE OF SIGHT (NLOS) CANNON

The conferees agree to align the funding proposed in the Crusader budget amendment of the Non-Line of Sight (NLOS) Cannon 

to the Artillery Systems-Demonstration/Validation program to ensure that the experienced Army staff who were developing the Crusader will lead the effort to migrate these technologies, and to develop the NLOS cannon. The conferees, therefore, have included a 

total of $368,500,000, for the Non-Line of Sight Cannon and Resupply Vehicle Program in Artillery Systems Demonstration/Validation, to develop a Non-Line of Sight Cannon. This amount is an increase of $173,000,000 above the President’s budget request. The 

conferees direct that this additional funding be used to integrate 

cannon technologies with a suitable platform and munitions to ensure that this NLOS Cannon can be delivered in the 2008 timeframe. Finally, the conferees direct the NLOS Cannon program office to closely coordinate its program with the Army’s Future Combat Systems program office.

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COMBAT SUPPORT HOSPITAL-MOBILE SURGICAL UNIT

The conferees understand that the Army is working to develop 

a replacement system to the deployable medical hospital. Accordingly, $2,500,000 is provided to the U.S. Army Medical Research 

and Materiel Command, Ft. Detrick, MD, to prototype a 44-bed 

Combat Support Hospital consistent with the concept design of the 

U.S. Army Medical Center and School’s ICT report on the Future 

Medical Support System. 

M934 MORTAR—LOW COST COURSE CORRECTION MODULE

The conferees are aware of recently concluded tests sponsored 

by Army PM-Mortar which support further demonstration and 

evaluation of the Low Cost Course Correction (LCCC) module for 

the M934 Mortar. The conferees also note the positive performance 

of the LCCC module as reported by the Army and encourage the 

Secretary of the Army to address future funding requirements for 

the LCCC module and future testing requirements. 

ARMY ASSAULT RIFLE EARLY TRANSFORMATION

The conferees are aware of significant Army progress in developing the XM–8 assault rifle as a stand-alone module of the XM–

29 assault weapon program. The XM–8 appears to offer significant 

improvements over the current M–4 assault rifle and may be worthy of fielding on an expedited basis. The conferees direct the Secretary of the Army to review the costs, benefits and feasibility of 

accelerating replacement of the M–4 with the XM–8. The Secretary 

shall submit a report to the congressional defense committees by 

no later than April 1, 2003, comparing and contrasting the cost, 

weapon performance/capabilities, technical risk, schedule risk, and 

improvements in overall combat capability of fielding the XM–8 assault rifle module of the XM–29 assault weapon under an initial 

block development approach compared to the current fielding plan. 

This report shall specifically assess the benefits of an early block 

development fielding of the XM–8 in providing equal or better combat capability in a shorter timeframe, and the overall benefits to 

soldier effectiveness and survivability, compared to waiting for 

final development of the XM–29 under the existing Army Objective 

Force Transformation Plan. 

PSEUDOFOLLICULITIS BARBE

The Conferees agree that Pseudofolliculitis Barbe (PFB) is a 

serious condition that impacts many African American military 

personnel and deserves additional attention. The conferees strongly 

encourage the Department of Defense to act quickly on a plan of 

action to initiate research into more effective treatments and control of this problem.

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FORCENET

The conferees agree to provide an appropriation of $13,000,000 

for the Navy’s FORCEnet program instead of $20,000,000 as proposed by the House and no appropriation as proposed by the Senate. 

Despite the conferees interest in the goals of FORCEnet, a program the Chief of Naval Operations considers a key transformation 

enabler for the 21st Century Navy, concerns remain about the lack 

of specificity and documentation provided thus far by the Navy. 

While a solid organizational structure for the development of 

FORCEnet requirements has been established, the Navy must now 

refine the program’s plan and scope. To ensure continued oversight 

of this important program, the conferees direct that the Secretary 

of the Navy submit, by May 1, 2003, a detailed report on the 

FORCEnet program. At a minimum, the report shall identify the 

five-year estimated cost of the program, describe the long term and 

short term program objectives, define requirements, detail the spiral development and testing milestone plan, and indicate how each 

existing system will be integrated into the FORCEnet approach. 

JOINT STRIKE FIGHTER—F136 INTERCHANGEABLE ENGINE

The conferees have included an additional $29,750,000 for the 

Joint Strike Fighter Interchangeable Engine Program only to continue the current effort to develop and maintain two, competing, 

interchangeable engine programs for the Joint Strike Fighter. 

UNMANNED AERIAL VEHICLES

The conferees agree to provide a total of $262,459,000 for the 

Navy’s tactical unmanned aerial vehicles program. 

Broad Area Maritime Surveillance (BAMS): The conferees 

agree to provide an additional $42,300,000 for the Navy BAMS 

UAV. Of this amount, $28,300,000 is a transfer from the Defense 

Emergency Response Fund and shall only be used for the projects 

and activities as described in justification material submitted by 

the Navy and detailed in House Report 107–532; $7,000,000 is to 

determine the requirement for utilizing existing infrastructure resident in the Tactical Support Centers (TSCs) at P–3/EP–3 bases for 

hosting the BAMS mission planning and control and to initiate 

equipment upgrades as necessary; and $7,000,000 is for Global 

Hawk HAEUAV producibility initiatives such as tooling enhancements and improvements and special test equipment, an effort 

which the Navy shall coordinate with the Air Force. 

The conferees believe the Navy should initiate a technology 

program to improve maritime ISR, including space-time processing 

algorithms from electro-optical data. 

The conferees agree with the reporting requirements contained 

in House Report 107–532 with respect to the BAMS UAV. 

VTOL UAV Operational Testing: The conferees agree to reduce 

by $4,000,000 the Navy’s request for operational testing of the 

Vertical Take Off and Landing UAV instead of $9,000,000 as proposed by the House. This reduction is taken without prejudice and 

may be applied as a general reduction to the program. 

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USMC Pioneer upgrades: The conferees agree to provide a total 

of $16,000,000 for upgrades to the Pioneer UAV used in support of 

the Marine Corps; $7,000,000 is provided in the Research, Development, Test and Evaluation, Navy appropriation and $9,000,000 is 

provided in the Weapons Procurement, Navy appropriation. The 

conferees direct that these funds, and any additional funds as required, shall be used only to upgrade the Pioneer UAV in support 

of the Marine Corps.

VTOL UAV Rescission: The conferees agree not to rescind 

$2,000,000 from the $5,000,000 appropriated to the Research, Development, Test and Evaluation, Navy account in fiscal year 2002 

as proposed by the House. The conferees agree that these funds are 

excess to the requirement for which originally appropriated and 

therefore direct that these funds instead be used by the Navy to 

establish a Joint Program Office with the Air Force for the Predator B and Global Hawk UAVs. To the extent that there may be 

similar vehicle and sensor requirements for the Navy and the Air 

Force, the Joint Program Office could facilitate the development of 

requirements, program management, acquisition support, testing 

and training. 

Joint Operational Test Bed (JOTBS): The conferees agree to 

provide an additional $4,100,000 for the Joint Operational Test Bed 

System (JOTBS) project. The conferees further agree to the language contained in House Report 107–532 with respect to designation of the Deputy Chief of Naval Operations for Warfare Requirements and Programs (N7/N78), as the program sponsor. The conferees direct the Navy to evaluate the JOTBS prototype to determine if the system adequately addresses Service requirements and 

if so initiate the development of the necessary documentation of requirements. 

NAVAL FIRES NETWORK

The conferees agree to provide an additional $7,500,000 in the 

Land Attack Technology program for Naval Fires Network (NFN), 

of which $2,500,000 is for the tactical dissemination module. The 

conferees agree that remaining funds shall be used to continue architecture design for NFN, to study and initiate a design for the 

Joint Fires Center, improve training devices, and support major 

Fleet exercises. 

The conferees have also provided an additional $1,300,000 in 

the Distributed Common Ground Station line to continue development of an open architecture and sustain modernization and enhancement of precision strike capabilities for NFN. 

TREATMENT OF RADIATION SICKNESS RESEARCH

The conference agreement provides $3.4 million for the establishment of a blood bank for the purpose of treating patients exposed to high doses of radiation. The conferees agree that these 

funds are to establish a blood bank with an entity that has a demonstrated track record in this specific area.

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B–1 DSUP PROGRAM

Despite development problems which have plagued the Air 

Force’s B–1 Defense System Upgrade Program (DSUP), the conferees agree to provide the fiscal year 2003 funding requested for 

this program. Concerned, however, by the need to continue modernizing the B–1 bomber so the aircraft can undertake combat missions in various threat environments, the conferees direct the Air 

Force to use these funds to explore alternative towed decoy and defensive systems other than the ALE–55 towed decoy included in 

the Department of Defense’s original request. The Secretary of the 

Air Force shall report to the congressional defense committees on 

the allocation of these funds not later than January 1, 2003. Finally, the conferees approve a rescission totaling $45,500,000 of 

prior year funds in excess to the Air Force’s DSUP requirements. 

MC2C 

The conference agreement provides a total of $338,089,000 for 

the Multi-sensor Command and Control Constellation (MC2C) program. This level is more than sufficient to fully fund all planned 

MP–RTIP design and platform adaptation activities for the coming 

year. Given the reported technical difficulties this program recently 

experienced in initial testing, the conferees strongly urge the Air 

Force to use any remaining funds for sensor and command and 

control system integration development efforts. 

SPACE SURVEILLANCE (MSSS) 

The conference agreement includes funding of $48,472,000 for 

the MSSS program. Of this amount, $13,000,000 shall be used to 

continue the Panoramic Survey Telescope and Rapid Response System. In addition, $2,000,000 shall be used only to fund the High 

Accuracy Network Determination System. The conferees are aware 

of security and electromagnetic interference concerns from antennas located near the site, and recommend allocating up to 

$5,000,000 for assisting in the relocation of the antennas. The remaining research funds should be allocated by on-site officials to 

programs which offer the greatest potential return. The conferees 

expect the officials to consider the following programs for funding: 

MATRIX, NEAT, and HSN. 

ADVANCED POWER TECHNOLOGY

To improve technology transition and the incorporation of advanced power concepts into vehicles and facilities, the conferees direct the Secretary of the Air Force to prepare a plan for establishing an Advanced Power Technology office to support the program manager for support equipment, ground vehicles, and bare 

base. The plan should be provided to the House and Senate Appropriations Committees with the submission of the Department of 

Defense fiscal year 2004 budget request.

ENDURANCE UNMANNED AERIAL VEHICLES

The conferees agree to provide a total of $352,743,000 for the 

Air Force’s endurance unmanned aerial vehicles program, including 

298

an additional $31,000,000 for the continued development and testing of the Global Hawk endurance UAV system and sensor requirements. 

Global Hawk Defensive System: The conferees do not agree to the Budget request for an additional $30,000,000 for the development of a U–2 like defensive system for the Global Hawk UAV. 

Global Hawk SIGINT Sensor Development: The conferees agree to transfer $59,000,000 requested for Global Hawk SIGINT sensor 

development, and the development efforts these funds were requested to support, into a new line entitled Global Hawk Advanced 

Payload Development and Support. 

Global Hawk Advanced Payload Development and Support: The conferees agree to provide a total of $84,000,000 in this new 

line, of which $59,000,000 is a transfer from the SIGINT Sensor 

Development line, including the High Band Subsystem development effort, and $15,775,000 is a transfer from the Airborne Reconnaissance Systems Sensor Development line. It is the intent of the 

conferees that the Air Force work with the Navy and the Army to 

identify new and existing sensor technologies for a high altitude 

UAV, including a day/night hyperspectral sensor system developed 

by an Air Force laboratory, and use the funds appropriated to develop, test and demonstrate payload options to enhance Global 

Hawk UAV mission capabilities. The conferees directed the Air 

Force to submit by January 15, 2003, a plan for expenditure of 

these funds. 

The conferees support the Air Force’s Airborne Signals Intelligence Payload (ASIP) program, a common high altitude SIGINT 

sensor based on the ongoing HBSS program and a new low band 

effort based on existing technology. The ASIP program is the Office 

of Secretary of Defense approved program designed to replace the 

failed Joint SIGINT Avionics Family (JSAF) program. The fiscal 

year 2003 estimated cost for ASIP is $31,400,000, of which 

$17,900,000 shall be funded from Global Hawk SIGINT sensor development (Advanced Payload Development and Support) and 

$13,500,000 from funds provided in a separate line for U–2 SIGINT 

systems. The conferees direct the Navy to evaluate its requirements and participate in the ASIP effort as appropriate.

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CHEMICAL AND BIOLOGICAL DEFENSE

The conferees agree to establish a ‘‘Chem-bio Defense Initiatives Fund’’ within the Department of Defense’s Chemical and Biological Defense program, and provide an increase of $25,000,000 for 

this purpose. The Secretary of Defense is directed to allocate these 

funds among the program proposals listed below in a manner 

which yields the greatest gain in our chem-bio defensive posture. 

The program proposals to be considered are: 

The National Center for Biodefense; 

Chem-bio Threat Mitigation technologies; 

Global Pathogen Science Portal; 

Advanced Sensors for Chem-bio Agents; 

Rapid Sensitive Biowarfare Protection; 

Diagnostic Tool for Biowarfare; 

Ultra-High Field Instrumentation; 

Urban Security Initiative; 

Chemical Imaging Biothreat Detection; 

Biological Agent Sensor/Detection System; 

Chem-bio Air Filtration System; 

Food Safety and Security Sensors; 

Bioinformatics; 

Phylogenetic- and PCR-based Detector System 

Field Portable Nucleic Acid Bioterrorism Detection; 

LISA-Inspector Transportable Chem-bio Detection System; 

Distributed Chemical Agent Sensing and Transmission; 

Wide-Area Standoff Chem-bio Agent Detection System; 

Air Purification for Protection System; 

Rapid Antibody-based Countermeasures; 

Oral Anthrax Antibiotic; 

Plant Vaccine Development; 

Rapid Response Sensor Networking for Multiple Applications; and 

Chemical Biological Incident Response Force (CBIRF). 

ANTHRAX VACCINE SUPPLY PREPAREDNESS

The conferees are concerned about the adequacy of the supply 

and production capacity for the only FDA-licensed anthrax vaccine 

currently available in the U.S. to protect our military and civilian 

defense personnel from the demonstrated and potential future 

threat of anthrax. The Secretary of Defense is directed to provide 

a report which assesses the immediate and short-term preparedness and potential future total biowarfare defense need for the 

FDA-licensed anthrax vaccine, the potential need for expanded production capacity to meet that need, and the need for a separate 

production capacity to mitigate risks of an event which could result 

in a halt to current vaccine production. The Secretary shall submit 

this report to the congressional defense committees within 90 days 

after enactment of this Act.

CHRONIC MULTI-SYMPTOM ILLNESSES

The conferees have provided $5,200,000 to extend research on 

chronic multi-symptom illnesses with a special focus on the relationship between Gulf War Illnesses and other diseases, 

316

fibromyalgia, chronic fatigue syndrome, and multiple chemical sensitivity. Within this amount up to $2,000,000 may be made available for research in the Upper Great Plains Region. 

MEDICAL FREE ELECTRON LASER

The conferees agree that the work the universities are doing 

in conjunction with the Department of Defense to develop the medical free electron laser is vital to address a wide variety of research 

problems that are important to military personnel and civilian populations. The conferees provide $12,000,000 to continue research 

within the Department of Defense for this program and expect that 

these funds, along with any associated outyear funding, be retained 

within the Department of Defense. 

BALLISTIC MISSILE DEFENSE

The conferees agree to provide a total of $7,387,856,000 for ballistic missile defense research and development and related procurement activities. This reflects a reduction of $14,400,000 from 

the President’s request and transfers to other accounts totaling 

$28,700,000. 

Last year the conferees provided guidance in the Statement of 

Managers accompanying the Department of Defense Appropriations 

Act, 2002 regarding special interest projects, budget justification 

material and reprogrammings. The conferees agree to sustain that 

guidance and, unless exceptions to the countrary are provided explicitly, expect the Department to continue abiding by this guidance in the future. 

RADAR RESEARCH

The conferees agree to transfer $22,000,000 from the Missile 

Defense Agency’s sea-based midcourse program to the Navy (PE 

0604307N) only for the development of Solid State S-Band radar. 

In addition, the conferees agree that $10,000,000 in sea-based midcourse funds shall be made available for radar development, the 

exact technology to be decided by the agency after a careful consideration of relevant radar options. 

SEA-BASED X-BAND RADAR

Subsequent to submission of the budget for fiscal year 2003, 

the Missile Defense Agency proposed acquisition of a sea-based Xband radar, in lieu of the land based concept previously funded by 

Congress. At this juncture, the conferees have little insight about 

the technical and cost feasibility of this initiative, or about the impact of this change on the schedule and test plan for the ground 

based mid-course segment. On that basis, the conferees direct that 

none of the funds provided for the ground based mid-course segment program may be obligated to acquire the proposed, foreign 

built sea-based platform until 30 days after the Director of the Missile Defense Agency provides a report to the congressional defense 

committees on the cost and schedule impact of this approach, including a comparison to the cost and capability of the previously 

proposed land based site and the technical criteria used to deterVerDate 0ct 09 2002 14:16 Oct 15, 2002 Jkt 019006 PO 00000 Frm 00318 Fmt 6601 Sfmt 6601 E:\PICKUP\HR732.XXX HR732
317

mine that a sea-based platform will provide effective test and operational performance for the missile defense system.

TECHNOLOGY TRANSITION PROGRAMS

The conferees agree to provide $25,430,000 for technology transition efforts, including the Challenge program, the Quick Reaction 

Special Projects program, and the Technology Transition Initiative. 

Of this amount, $12,800,000 shall be used only to fund the Challenge program. The remainder shall be allocated between the other 

listed programs, at the discretion of the Secretary of Defense. The 

Secretary is directed to provide to the congressional defense committees a report detailing his funding allocation decisions with the 

submission of the fiscal year 2004 Defense budget request. 

HISTORICALLY BLACK COLLEGES AND UNIVERSITIES SCIENCE

The conferees direct the Department of Defense to evaluate the 

programmatic impact of combining funding and administration for 

the Historically Black Colleges and Universities Science program, 

the Hispanic Serving Institutions program, and American Indian 

Tribal Colleges program under a new program element. 

The Department shall provide a report to the congressional defense committees on the results of this evaluation within 120 days 

of enactment of this legislation. 

ADVANCED SEMICONDUCTOR DEVICES

The conferees recommend that the Department of Defense conduct a study to examine the long-term DoD acquisition model for 

advanced semiconductor devices used in military and intelligence 

applications. This study should address whether a consolidated 

U.S. semiconductor foundry could offer the U.S. Government a solution to the impending advanced technology procurement challenge. The Department is encouraged to make this study a high 

priority so that a preliminary assessment can be available by December 2002. 

JOINT ROBOTICS

Based on reports received from the Department of Defense and 

U.S. military field commanders, the conferees agree the Department should proceed expeditiously to test, produce, and field technologically mature robots and other unmanned vehicles for use in 

combat. As such, the conferees recommend a total increase of 

$24,000,000 for the Joint Robotics program. Further, the conferees 

strongly encourage the Department to retain oversight of this program under the Office of the Secretary of Defense, given the applicability of robots to numerous joint and combined combat missions. 

STRATEGIC CAPABILITY MODERNIZATION

The conference agreement includes $20,000,000 to fund the Department of Defense Strategic Capability Modernization program. 

The Department shall give priority to upgrading command and control systems and related Strategic Command communication systems in the use of these funds. 

318

INFORMATION SYSTEMS ENGINEERING

The conferees remain interested in the Department of Defense 

providing a greater focus on its information systems engineering 

(ISE) effort. This effort is important to enabling the engineering of 

large-scale information systems for transformation to network-centric operations. Thus, the conferees direct DARPA to continue its 

efforts to pursue and support ISE research. The conferees urge that 

the expertise of ICICX and others be used to assist in developing 

and implementing new management strategies, consistent with the 

recommendations of the President’s Information Technology Advisory Committee.

HOMELAND SECURITY COMMAND AND CONTROL ADVANCED CONCEPT

TECHNOLOGY DEMONSTRATION

The conferees recommend $3,000,000 for the Homeland Security Command and Control Advanced Concept Technology Demonstration for upgrades to communication and display equipment, 

and subsequent demonstrations and spiral development at the C2 

nodes in Louisiana.

319


Insert offset folio 481 here 82254.211
320


Insert offset folio 482 here 82254.212
321

TITLE V—REVOLVING AND MANAGEMENT FUNDS 

DEFENSE WORKING CAPITAL FUNDS

The conference agreement provides $1,784,956,000 for Defense 

Working Capital Funds, instead of $1,832,956,000 as proposed by 

the House. 

NATIONAL DEFENSE SEALIFT FUND

The conferees agree to provide $942,629,000 for the National 

Defense Sealift Fund, an increase of $8,500,000 to the budget request. The conferees also agree that the additional funds provided 

are only to finance the cost of constructing additional sealift capacity.

322


Insert offset folio 485 here 82254.213
323


Insert offset folio 486 here 82254.214
324


Insert offset folio 487 here 82254.215
325

DHP REPROGRAMMING PROCEDURES

The conferees share the concerns expressed in the report accompanying the House version of the Department of Defense Appropriations bill for fiscal year 2003 regarding the diversion of 

funds from DoD military medical treatment facilities (MTFs) to pay 

for contractor-provided medical care. To limit such transfers within 

the Defense Health Program operation and maintenance account, 

the conferees agree that the Department of Defense shall follow 

prior approval reprogramming procedures for transfers with a cumulative value in excess of $25,000,000 into the Private Sector 

Care activity group. 

In addition, the conferees agree that the Department of Defense shall provide budget execution data for all of the Defense 

Health Program accounts. Such budget execution data shall be provided quarterly to the congressional defense committees through 

the DD–COMP(M) 1002. 

PEER REVIEWED MEDICAL RESEARCH PROGRAM

The Senate recommended $50,000,000 for a Peer Reviewed 

Medical Research program. The conferees agree to provide 

$50,000,000 for this program, and recommend the following 

projects as candidates for study: acellular matrix research for military orthopedic trauma; alcoholism research; amyotrophic lateral 

sclerosis; and anti-diarrhea supplement; Army nutrition research; 

augmented care in the chain of stroke survival (ACCESS); bloodrelated cancer research; bone-related disease research; cell response to anti-cancer agents; Mt. Sinai cancer research program; 

casualty care research center; chiropractic care; epilepsy; infectious 

disease tracking system; interstitial cystitis research; low vision research; medical digital assistance; miniature renal assist devices; 

natural toxin detection technology; neuroscience research; Paget’s 

disease; personal intelligent medical assistant; Providence cancer 

center; respiratory research; smoking cessation; social work research; and Volume Angio CAT (VAC) research. 

CHEMICAL AGENTS AND MUNITIONS DESTRUCTION, ARMY

The conference agreement on items addressed by either the 

House or Senate is as follows:

[In thousands of dollars] 

Budget House Senate Conference 

CHEM AGENTS & MUNITIONS DESTRUCTION, ARMY: 

CHEM DEMILITARIZATION—O&M .......................................... 974,238 974,238 974,238 974,238

CHEM DEMILITARIZATION—PROC ......................................... 213,278 213,278 213,278 213,278

CHEM DEMILITARIZATION—RDTE ......................................... 302,683 302,683 302,683 302,683

TOTAL, CHEM AGENTS & MUNITIONS DESTRUCTION, 

ARMY ............................................................................ 1,490,199 1,490,199 1,490,199 1,490,199

DRUG INTERDICTION AND COUNTER-DRUG ACTIVITIES DEFENSE

The conference agreement includes $881,907,000 for ‘‘Drug 

Interdiction and Counter-drug Activities, Defense’’ as opposed to 

$859,907,000 as proposed by the House and $916,107,000 as proVerDate 0ct 09 2002 14:16 Oct 15, 2002 Jkt 019006 PO 00000 Frm 00327 Fmt 6601 Sfmt 6601 E:\PICKUP\HR732.XXX HR732
326

posed by the Senate. Adjustments to the budget request are as follows:

EXPLANATION OF PROJECT LEVEL ADJUSTMENTS 

[In thousands of dollars] 

House Senate Conference 

Recommended Increases: 

SOUTHCOM Reconnaissance UAV Counter-drug Initiative ............................ 15,100 .................... 0

National Counter-narcotics Training Center, Hammer .................................. 1,000 .................... 1,000

Indiana National Guard Counter-drug Activities ........................................... 1,000 .................... 1,000

Nevada National Guard CD RAID Counter-drug Program ............................. 2,000 .................... 1,000

Florida National Guard Counter-drug Port Initiative ..................................... 2,500 .................... 2,100

Southwest Border Fence ................................................................................ 6,700 .................... 4,700

Multi-jurisdictional Counter-drug Task Force Training ................................. 5,000 .................... 4,300

Southwest Anti-drug Border States Initiative ............................................... 5,000 .................... 4,300

Tethered Aerostat Radar System at Morgan City, LA ................................... 4,000 .................... 2,200

C–26 Counter-drug Electro Optical Sensor Upgrades .................................. 6,200 .................... 5,200

Young Marines Program ................................................................................ 1,500 2,500 1,500

Kentucky National Guard Counter-drug Activities ......................................... 1,000 3,600 2,600

Northeast Counter-drug Training Center ....................................................... 8,000 5,000 6,800

Tennessee National Guard Counter-drug Activities ...................................... 1,000 1,000 1,000

National Guard Counter-drug Support .......................................................... .................... 35,000 20,000

OH–58 RAID EO/IR upgrades; ANG ................................................................ .................... 4,000 2,400

Alaska National Guard Counter-drug Program ............................................. .................... 3,000 2,700

West Virginia National Guard Counter-drug Program ................................... .................... 3,500 3,000

Regional Counter-drug Training Academy, Mississippi ................................ .................... 2,000 1,400

Hawaii Counter-drug Activities ...................................................................... .................... 3,000 2,700

NGB-Counter-drug Technology Consortium ................................................... .................... 2,600 1,800

P–3 Counter-drug EO/IR Upgrades ............................................................... .................... 2,000 1,000

Midwest Regional Counter-drug Training ...................................................... .................... 5,000 3,500

Recommended Reductions: 

Tethered Aerostat Radar System Procurement .............................................. ¥5,000 ¥5,000 ¥5,000

DEA Support ................................................................................................... ¥1,300 .................... ¥1,300

Transit Zone Maritime Patrol Aircraft ........................................................... ¥9,000 .................... ¥4,000

Riverine Training Deployments ...................................................................... ¥1,000 .................... ¥1,000

TAC OPS Support ........................................................................................... ¥1,800 .................... ¥1,000

T–AGOS .......................................................................................................... ¥13,000 .................... ¥13,000

Classified ....................................................................................................... ¥17,900 .................... ¥17,900

OFFICE OF THE INSPECTOR GENERAL

The conferees agree to provide $157,165,000, as proposed by 

both the House and Senate, for the Office of the Inspector General. 

Of this amount $155,165,000 shall be for operation and maintenance, and $2,000,000 shall be for procurement. 

TITLE VII—RELATED AGENCIES 

CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY

SYSTEM FUND

The conferees agree to provide $222,500,000 for CIARDS instead of $212,000,000 as proposed by both the House and Senate. 

INTELLIGENCE COMMUNITY MANAGEMENT ACCOUNT

The conferees agree to provide $163,479,000, of which 

$34,100,000 is for transfer to the Department of Justice, instead of 

$162,254,000 as proposed by the House and $122,754,000 as proposed by the Senate. 

327

PAYMENT TO KAHO’OLAWE ISLAND CONVEYANCE, REMEDIATION, AND

ENVIRONMENTAL RESTORATION FUND

The conference agreement provides $75,000,000 for payment to 

the Kaho’olawe Island Conveyance, Remediation, and Environ- mental Restoration Fund, instead of $25,000,000 as proposed by 

the House and $80,000,000 as proposed by the Senate. 

NATIONAL SECURITY EDUCATION TRUST FUND

The conferees agree to provide $8,000,000 as proposed by both 

the House and the Senate.

TITLE VIII—GENERAL PROVISIONS 

The conference agreement incorporated general provisions of 

the House and Senate versions of the bill which were not amended. 

Those general provisions that were amended in conference follow: 

The conferees included a general provision (Section 8005) 

which amends lanaguage providing transfer authority of 

$2,000,000,000; requires a request for multiple reprogramming to 

be made prior to May 31, 2003; and provides additional fiscal year 

2002 transfer authority. 

The conferees included a general provision (Section 8021) 

which amends language to clarify the original intent that incentives authorized in the Indian Financing Act be applied broadly. 

The conferees expect these adjustments will be implemented expeditiously by the publication of an interim final rule. 

The conferees included a general provision (Section 8029) 

which amends language directing that not more than 6,321 staff 

years may be funded, and reduces the amount appropriated for defense FFRDCs by $74,200,000. 

The conferees included a general provision (Section 8050) that 

amends lanaguage recommending rescissions. The recissions 

agreed to are:

(Rescissions) 

Fiscal Year 2001: 

Procurement of Weapons and Tracked Combat Vehicles, Army 

C2V ............................................................................................... $9,500,000

Procurement of Ammunition, Army: WAM .................................. 4,000,000

Other Procurement, Army: Semitrailers, Tankers ...................... 8,000,000

Other Procurement, Navy: JTCTS ................................................ 5,000,000

Missile Procurement, Air Force: Titan ......................................... 93,600,000

Fiscal Year 2002: 

Missile Procurement, Army: 

Stinger ...................................................................................... 5,150,000

Avenger Mods .......................................................................... 10,000,000

TOW Fire and Forget .............................................................. 13,200,000

LOSAT ...................................................................................... 9,300,000

Procurement of Ammunition, Army: RADAM .............................. 19,000,000

Other Procurement, Army: 

Combat Identification Program .............................................. 11,000,000

Spares—EHF Terminal .......................................................... 10,200,000

Missile Procurement, Air Force: 

MALD ....................................................................................... 8,900,000

JSOW–B ................................................................................... 18,000,000

Titan ......................................................................................... 87,700,000

Research, Development, Test and Evaluation, Navy: 

Naval T&E Airborne Telemetry System ............................... 1,700,000

Research, Development, Test and Evaluation, Air Force: 

B–1B DSUP ............................................................................. 45,500,000

328

(Rescissions) 

B–2 EHF SATCOM ................................................................. 23,500,000

Research, Development, Test and Evaluation, Defense-Wide: 

Towed Decoy ............................................................................ 3,000,000

Combat Development Activities ............................................. 4,000,000

VSWMMCM–SAHRV .............................................................. 1,500,000

Passive RW Survivability ....................................................... 1,000,000

Chemical and Biological Defense Program ........................... 10,000,000

(Note: The conferees agree to rescind Titan funding in fiscal 

year 2001 and fiscal year 2002 budgeted for program closeout and 

facilities shutdown. The conferees note that launch delays have deferred the last Titan launch to fiscal year 2005. The conferees believe it is more appropriate to budget for these activities in the 

year of performance. The conferees have made no adjustments to 

funds budgeted for special termination costs.) 

The conferees included a general provision (Section 8065) 

which amends language limiting the use of funds. The amended 

provision includes a government-wide appropriations limitation intended by the conferees to protect the status of a national memorial established under Section 8137 of Public Law 107–117. 

The conferees included a general provision (Section 8095) 

which amends language making funds available for the Arrow Missile Defense Program. 

The conferees included a general provision (Section 8099) 

which amends House language providing $1,700,000 for the Fisher 

House Foundation, Inc. 

The conferees included a new general provision (Section 8100) 

which amends Senate language which reduces funds available by 

$850,000,000 to reflect savings to be achieved from efficiencies in 

the procurement of advisory and assistance services. 

The conferees included a general provision (Section 8101) 

which amends language which allows the Secretary of Defense to 

transfer $1,279,899,000 to fund increases in the cost of prior year 

shipbuilding programs. 

The conferees included a general provision (Section 8105) 

which restores and amends a fiscal year 2002 provision which, for 

the period of fiscal years 2003 through 2005, provides the authority 

to transfer $20,000,000 of unobligated balances in ‘‘Research, Development, Test and Evaluation, Army’’ to a current year account 

only for the continuation of the Army Venture Capital Fund demonstration. 

The conferees included a general provision (Section 8108) 

which amends Senate language appropriating $7,750,000 to provide 

assistance by grant or otherwise to public schools that have unusually high concentrations of special needs military dependents enrolled. 

The conferees included a new general provision (Section 8109) 

which amends Senate language which reduces funds available by 

$400,000,000 for cost growth in information technology development. 

The conferees included a new general provision (section 8112) 

which amends House language reducing funds available in operation and maintenance accounts by $120,000,000 for Working Capital Fund cash balance and rate stabilization adjustments.

329

The conferees included a new general provision (Section 8113) 

which amends House language reducing funds available in operation and maintenance accounts by $48,000,000 for excess funded 

carryover. 

The conferees included a new general provision (Section 8114) 

which amends Senate language providing funds for combating terrorism. The conferees note that the conference agreement includes 

funds in title II, Operation and Maintenance, above those requested by the President for the service, Defense-Wide, and Reserve component operation and maintenance appropriations. This 

includes funds specifically requested in the Defense Emergency Response Fund for combating terrorism and related activities, which 

in this conference agreement have been provided in the operation 

and maintenance appropriations for proper execution. The provision provides that not less than $1,000,000,000 of these funds are 

available for operations of the Department of Defense to prosecute 

the war on terrorism. The conferees direct that these funds be executed as specifically delineated elsewhere in this statement. 

The conferees included a new general provision (Section 8115) that amends House language which provides $3,400,000 in ‘‘Operation and Maintenance, Army National Guard’’ funds for a grant 

to the Center for Military Recruitment, Assessment and Veterans 

Employment. 

The conferees included a new general provision (Section 8117) 

that amends Senate language amending Section 8159 of Public 

Law 107–117. 

The conferees included a new general provision (Section 8118) 

that amends House language placing limitations on additional 

NMCI contract work stations until an Operational Assessment has 

been conducted and certified as acceptable to the congressional defense committees. 

The conferees included a new general provision (Section 8119) 

which amends House language which prohibits acquisition of more 

than 16 F–22 aircraft until the Under Secretary of Defense for Acquisition, Technology, and Logistics provides a risk assessment to 

the congressional defense committees. 

The conferees included a new general provision (Section 8120) 

which amends House language that allows for the transfer of funds 

from the Pentagon Reservation Maintenance Revolving Fund to the 

Defense Emergency Response Fund. 

The conferees included a new general provision (Section 8121) 

which amends House language concerning development of the NonLine of Sight (NLOS) Objective Force cannon and resupply vehicle 

program. Language directs the Army to implement an interim capability before complete fielding of the Objective Force, and ensure 

that budgetary and programmatic plans will provide for no fewer 

than six Stryker Brigade Combat Teams. 

The conferees included a new general provision (Section 8123) 

which amends House language that limits expenditure of funds 

until certain audit decisions have been made. 

The conferees included a general provision (Section 8126) 

which amends Senate language making funds available from 

amounts appropriated in Public Law 107–206 under the heading 

‘‘DEFENSE EMERGENCY RESPONSE FUND’’, for an amount up 

330

to the fair market value of the leasehold interest in adjacent properties necessary for the force protection requirements of Tooele 

Army Depot, Utah. 

The conferees included a general provision (Section 8128) which amends Senate language providing $3,000,000 of ‘‘Operation 

and Maintenance, Defense-Wide’’ funds for impact aid for children 

with severe disabilities. 

The conferees included a general provision (Section 8129) which amends Senate language appropriating $8,100,000 for grants 

to the American Red Cross, the United Service Organizations, Inc., 

and the Intrepid Sea-Air-Space Foundation. 

The conferees included a new general provision (Section 8135) 

that amends Senate language which reduces available funds by 

$1,674,000,000 to reflect savings from revised economic assumptions. 

The conferees included a new general provision (Section 8140) which amends Senate language which earmarks $3,000,000 of 

funds available in this Act for a grant to the National D-Day Museum. 

The conferees included a new general provision (Section 8144) 

which amends Senate language authorizing that up to September 

30, 2003, the President may waive conditions described in section 

1305 of the National Defense Authorization Act for Fiscal Year 

2000 (Public Law 106–65; 22 U.S.C. 5952 note) if the President 

submits to Congress a written certification meeting several criteria. 

The conferees included a new general provision (Section 8145) 

which amends Senate language amending sections 305 and 309 of 

the Supplemental Appropriations Act for Fiscal year 2002 (Public 

Law 107–206). 

The conferees included a new general provision (Section 8146) 

which amends Senate language amending section 310 of the Supplemental Appropriations Act for Fiscal Year 2002 (Public Law 

107–206) modifying a grant for the purpose of supporting community adjustment activities relating to the closure of a Naval Security Group Activity. 

The conferees included a general provision (Section 8148) 

which amends Senate language which provides $5,000,000 of ‘‘Operation and Maintenance, Defense-Wide’’ funds for operation of domestic violence fatality review teams. 

The conferees included a general provision (Section 8149) 

which limits the issuance of government purchase and travel 

charge cards for Department of Defense personnel. The provision 

requires the Secretary of Defense to conduct a credit check before 

issuing to an individual a charge card, and prohibits the issuance 

of a charge card to an individual who is not found credit worthy. 

The conferees understand that this provision allows an individual 

with no credit history to be issued a restricted-use charge, debit, 

or stored value card. 

The conferees included a new general provision (Section 8150) 

which amends Senate language directing the Secretary of the Navy 

to transfer administrative jurisdiction of the law enforcement training facility at the former Charleston Naval Base. 

The conferees included a new title IX which provides the Secretary of Defense the authority to make loan guarantees to eligible 

331

U.S. commercial providers for the purpose of producing commercial 

reusable inspace transportation services or systems. 

CONFERENCE TOTAL—WITH COMPARISONS 

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

2003 recommended by the Committee of Conference, with comparisons to the fiscal year 2002 amount, the 2003 budget estimates, 

and the House and Senate bills for 2003 follow:

[In thousands of dollars] 

New budget (obligational) authority, fiscal year 2002 ........................ $334,239,062

Budget estimates of new (obligational) authority, fiscal year 2003 366,671,630

House bill, fiscal year 2003 ................................................................... 354,712,914

Senate bill, fiscal year 2003 .................................................................. 355,405,941

Conference agreement, fiscal year 2003 .............................................. 355,107,380

Conference agreement compared with: 

New budget (obligational) authority, fiscal year 2002 ................ +20,868,318

Budget estimates of new (obligational) authority, fiscal year 

2003 .............................................................................................. ¥11,564,250

House bill, fiscal year 2003 ............................................................ +394,466

Senate bill, fiscal year 2003 ........................................................... ¥298,561

JERRY LEWIS, 

BILL YOUNG, 

JOE SKEEN, 

DAVE HOBSON, 

HENRY BONILLA, 

GEORGE R. NETHERCUTT, Jr., 

RANDY ‘‘DUKE’’ CUNNINGHAM, 

RODNEY P. FRELINGHUYSEN, 

TODD TIAHRT, 

JOHN P. MURTHA, 

NORMAN D. DICKS, 

MARTIN OLAV SABO, 

PETER J. VISCLOSKY, 

JAMES P. MORAN, 

DAVE R. OBEY

(Except for sec. 8149 relating to corporate expatriates), 

Managers on the Part of the House.

DANIEL K. INOUYE, 

ERNEST F. HOLLINGS, 

ROBERT C. BYRD, 

PATRICK J. LEAHY, 

TOM HARKIN, 

BYRON L. DORGAN, 

RICHARD J. DURBIN, 

HARRY REID, 

DIANNE FEINSTEIN, 

HERB KOHL, 

TED STEVENS, 

THAD COCHRAN, 

ARLEN SPECTER, 

PETE V. DOMENICI, 

CHRISTOPHER S. BOND, 

332

MITCH MCCONNELL, RICHARD C. SHELBY, JUDD GREGG, KAY BAILEY HUTCHISON, Managers on the Part of the Senate.

Æ