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[107th Congress Public Law 249]
[From the U.S. Government Printing Office]

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[DOCID: f:publ249.107]

[[Page 1577]]

              MILITARY CONSTRUCTION APPROPRIATION ACT, 2003

[[Page 116 STAT. 1578]]

Public Law 107-249
107th Congress

                                 An Act

 
  Making appropriations for military construction, family housing, and 
   base realignment and closure for the Department of Defense for the 
          fiscal year ending September 30, 2003, and for other 
            purposes. <<NOTE: Oct. 23, 2002 -  [H.R. 5011]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: Military 
Construction Appropriation Act, 2003.<plus-minus>>> That the following 
sums are appropriated, out of any money in the Treasury not otherwise 
appropriated for military construction, family housing, and base 
realignment and closure functions administered by the Department of 
Defense, for the fiscal year ending September 30, 2003, and for other 
purposes, namely:

                       Military Construction, Army

                         (including rescission)

    For acquisition, construction, installation, and equipment of 
temporary or permanent public works, military installations, facilities, 
and real property for the Army as currently authorized by law, including 
personnel in the Army Corps of Engineers and other personal services 
necessary for the purposes of this appropriation, and for construction 
and operation of facilities in support of the functions of the Commander 
in Chief, $1,683,710,000, to remain available until September 30, 2007: 
Provided, That of this amount, not to exceed $163,135,000 shall be 
available for study, planning, design, architect and engineer services, 
and host nation support, as authorized by law, unless the Secretary of 
Defense determines that additional obligations are necessary for such 
purposes and notifies the Committees on Appropriations of both Houses of 
Congress of his determination and the reasons therefor: Provided 
further, That of the funds appropriated for ``Military Construction, 
Army'' in previous Military Construction Appropriation Acts, $49,376,000 
are rescinded.

                       Military Construction, Navy

                         (including rescission)

    For acquisition, construction, installation, and equipment of 
temporary or permanent public works, naval installations, facilities, 
and real property for the Navy as currently authorized by law, including 
personnel in the Naval Facilities Engineering Command and other personal 
services necessary for the purposes of this appropriation, 
$1,305,128,000, to remain available until September 30, 2007: Provided, 
That of this amount, not to exceed $87,043,000 shall be available for 
study, planning, design, architect and engineer

[[Page 116 STAT. 1579]]

services, as authorized by law, unless the Secretary of Defense 
determines that additional obligations are necessary for such purposes 
and notifies the Committees on Appropriations of both Houses of Congress 
of his determination and the reasons therefor: Provided further, That of 
the funds appropriated for ``Military Construction, Navy'' in previous 
Military Construction Appropriation Acts, $1,340,000 are rescinded.

                    Military Construction, Air Force

                         (including rescission)

    For acquisition, construction, installation, and equipment of 
temporary or permanent public works, military installations, facilities, 
and real property for the Air Force as currently authorized by law, 
$1,080,247,000, to remain available until September 30, 2007: Provided, 
That of this amount, not to exceed $72,283,000 shall be available for 
study, planning, design, architect and engineer services, as authorized 
by law, unless the Secretary of Defense determines that additional 
obligations are necessary for such purposes and notifies the Committees 
on Appropriations of both Houses of Congress of his determination and 
the reasons therefor: Provided further, That of the funds appropriated 
for ``Military Construction, Air Force'' in previous Military 
Construction Appropriation Acts, $13,281,000 are rescinded.

                   Military Construction, Defense-wide

              (including transfer and rescission of funds)

    For acquisition, construction, installation, and equipment of 
temporary or permanent public works, installations, facilities, and real 
property for activities and agencies of the Department of Defense (other 
than the military departments), as currently authorized by law, 
$874,645,000, to remain available until September 30, 2007: Provided, 
That such amounts of this appropriation as may be determined by the 
Secretary of Defense may be transferred to such appropriations of the 
Department of Defense available for military construction or family 
housing as he may designate, to be merged with and to be available for 
the same purposes, and for the same time period, as the appropriation or 
fund to which transferred: Provided further, That of the amount 
appropriated, not to exceed $50,432,000 shall be available for study, 
planning, design, architect and engineer services, as authorized by law, 
unless the Secretary of Defense determines that additional obligations 
are necessary for such purposes and notifies the Committees on 
Appropriations of both Houses of Congress of his determination and the 
reasons therefor: Provided further, That of the funds appropriated for 
``Military Construction, Defense-wide'' in previous Military 
Construction Appropriation Acts, $2,976,000 are rescinded.

               Military Construction, Army National Guard

    For construction, acquisition, expansion, rehabilitation, and 
conversion of facilities for the training and administration of the Army 
National Guard, and contributions therefor, as authorized by chapter 
1803 of title 10, United States Code, and Military

[[Page 116 STAT. 1580]]

Construction Authorization Acts, $241,377,000, to remain available until 
September 30, 2007.

                Military Construction, Air National Guard

    For construction, acquisition, expansion, rehabilitation, and 
conversion of facilities for the training and administration of the Air 
National Guard, and contributions therefor, as authorized by chapter 
1803 of title 10, United States Code, and Military Construction 
Authorization Acts, $203,813,000, to remain available until September 
30, 2007.

                   Military Construction, Army Reserve

    For construction, acquisition, expansion, rehabilitation, and 
conversion of facilities for the training and administration of the Army 
Reserve as authorized by chapter 1803 of title 10, United States Code, 
and Military Construction Authorization Acts, $100,554,000, to remain 
available until September 30, 2007.

                  Military Construction, Naval Reserve

    For construction, acquisition, expansion, rehabilitation, and 
conversion of facilities for the training and administration of the 
reserve components of the Navy and Marine Corps as authorized by chapter 
1803 of title 10, United States Code, and Military Construction 
Authorization Acts, $74,921,000, to remain available until September 30, 
2007.

                Military Construction, Air Force Reserve

    For construction, acquisition, expansion, rehabilitation, and 
conversion of facilities for the training and administration of the Air 
Force Reserve as authorized by chapter 1803 of title 10, United States 
Code, and Military Construction Authorization Acts, $67,226,000, to 
remain available until September 30, 2007.

     North Atlantic Treaty Organization Security Investment Program

    For the United States share of the cost of the North Atlantic Treaty 
Organization Security Investment Program for the acquisition and 
construction of military facilities and installations (including 
international military headquarters) and for related expenses for the 
collective defense of the North Atlantic Treaty Area as authorized in 
Military Construction Authorization Acts and section 2806 of title 10, 
United States Code, $167,200,000, to remain available until expended.

                    Family Housing Construction, Army

                         (including rescission)

    For expenses of family housing for the Army for construction, 
including acquisition, replacement, addition, expansion, extension and 
alteration, as authorized by law, $280,356,000, to remain available 
until September 30, 2007: Provided, That of the funds appropriated for 
``Family Housing Construction, Army'' in previous Military Construction 
Appropriation Acts, $4,920,000 are rescinded.

[[Page 116 STAT. 1581]]

             Family Housing Operation and Maintenance, Army

    For expenses of family housing for the Army for operation and 
maintenance, including debt payment, leasing, minor construction, 
principal and interest charges, and insurance premiums, as authorized by 
law, $1,106,007,000.

           Family Housing Construction, Navy and Marine Corps

                         (including rescission)

    For expenses of family housing for the Navy and Marine Corps for 
construction, including acquisition, replacement, addition, expansion, 
extension and alteration, as authorized by law, $376,468,000, to remain 
available until September 30, 2007: Provided, That of the funds 
appropriated for ``Family Housing Construction, Navy and Marine Corps'' 
in previous Military Construction Appropriation Acts, $2,652,000 are 
rescinded.

     Family Housing Operation and Maintenance, Navy and Marine Corps

    For expenses of family housing for the Navy and Marine Corps for 
operation and maintenance, including debt payment, leasing, minor 
construction, principal and interest charges, and insurance premiums, as 
authorized by law, $861,788,000.

                 Family Housing Construction, Air Force

                         (including rescission)

    For expenses of family housing for the Air Force for construction, 
including acquisition, replacement, addition, expansion, extension and 
alteration, as authorized by law, $684,824,000, to remain available 
until September 30, 2007: Provided, That of the funds appropriated for 
``Family Housing Construction, Air Force'' in previous Military 
Construction Appropriation Acts, $8,782,000 are rescinded.

           Family Housing Operation and Maintenance, Air Force

    For expenses of family housing for the Air Force for operation and 
maintenance, including debt payment, leasing, minor construction, 
principal and interest charges, and insurance premiums, as authorized by 
law, $863,050,000.

                Family Housing Construction, Defense-wide

    For expenses of family housing for the activities and agencies of 
the Department of Defense (other than the military departments) for 
construction, including acquisition, replacement, addition, expansion, 
extension and alteration, as authorized by law, $5,480,000, to remain 
available until September 30, 2007.

         Family Housing Operation and Maintenance, Defense-wide

    For expenses of family housing for the activities and agencies of 
the Department of Defense (other than the military departments)

[[Page 116 STAT. 1582]]

for operation and maintenance, leasing, and minor construction, as 
authorized by law, $42,395,000.

          Department of Defense Family Housing Improvement Fund

    For the Department of Defense Family Housing Improvement Fund, 
$2,000,000, to remain available until expended, for family housing 
initiatives undertaken pursuant to section 2883 of title 10, United 
States Code, providing alternative means of acquiring and improving 
military family housing, and supporting facilities.

                  Base Realignment and Closure Account

    For deposit into the Department of Defense Base Closure Account 1990 
established by section 2906(a)(1) of the Department of Defense 
Authorization Act, 1991 (Public Law 101-510), $561,138,000, to remain 
available until expended.

                           GENERAL PROVISIONS

    Sec. 101. <<NOTE: Contracts.>> None of the funds appropriated in 
Military Construction Appropriations Acts shall be expended for payments 
under a cost-plus-a-fixed-fee contract for construction, where cost 
estimates exceed $25,000, to be performed within the United States, 
except Alaska, without the specific approval in writing of the Secretary 
of Defense setting forth the reasons therefor.

    Sec. 102. Funds appropriated to the Department of Defense for 
construction shall be available for hire of passenger motor vehicles.
    Sec. 103. Funds appropriated to the Department of Defense for 
construction may be used for advances to the Federal Highway 
Administration, Department of Transportation, for the construction of 
access roads as authorized by section 210 of title 23, United States 
Code, when projects authorized therein are certified as important to the 
national defense by the Secretary of Defense.
    Sec. 104. None of the funds appropriated in this Act may be used to 
begin construction of new bases inside the continental United States for 
which specific appropriations have not been made.
    Sec. 105. No part of the funds provided in Military Construction 
Appropriations Acts shall be used for purchase of land or land easements 
in excess of 100 percent of the value as determined by the Army Corps of 
Engineers or the Naval Facilities Engineering Command, except: (1) where 
there is a determination of value by a Federal court; (2) purchases 
negotiated by the Attorney General or his designee; (3) where the 
estimated value is less than $25,000; or (4) as otherwise determined by 
the Secretary of Defense to be in the public interest.
    Sec. 106. None of the funds appropriated in Military Construction 
Appropriations Acts shall be used to: (1) acquire land; (2) provide for 
site preparation; or (3) install utilities for any family housing, 
except housing for which funds have been made available in annual 
Military Construction Appropriations Acts.
    Sec. 107. None of the funds appropriated in Military Construction 
Appropriations Acts for minor construction may be used to transfer or 
relocate any activity from one base or installation to another, without 
prior notification to the Committees on Appropriations.

[[Page 116 STAT. 1583]]

    Sec. 108. No part of the funds appropriated in Military Construction 
Appropriations Acts may be used for the procurement of steel for any 
construction project or activity for which American steel producers, 
fabricators, and manufacturers have been denied the opportunity to 
compete for such steel procurement.
    Sec. 109. None of the funds available to the Department of Defense 
for military construction or family housing during the current fiscal 
year may be used to pay real property taxes in any foreign nation.
    Sec. 110. None of the funds appropriated in Military Construction 
Appropriations Acts may be used to initiate a new installation overseas 
without prior notification to the Committees on Appropriations.
    Sec. 111. None of the funds appropriated in Military Construction 
Appropriations Acts may be obligated for architect and engineer 
contracts estimated by the Government to exceed $500,000 for projects to 
be accomplished in Japan, in any NATO member country, or in countries 
bordering the Arabian Sea, unless such contracts are awarded to United 
States firms or United States firms in joint venture with host nation 
firms.
    Sec. 112. None of the funds appropriated in Military Construction 
Appropriations Acts for military construction in the United States 
territories and possessions in the Pacific and on Kwajalein Atoll, or in 
countries bordering the Arabian Sea, may be used to award any contract 
estimated by the Government to exceed $1,000,000 to a foreign 
contractor: Provided, That this section shall not be applicable to 
contract awards for which the lowest responsive and responsible bid of a 
United States contractor exceeds the lowest responsive and responsible 
bid of a foreign contractor by greater than 20 percent: Provided 
further, That this section shall not apply to contract awards for 
military construction on Kwajalein Atoll for which the lowest responsive 
and responsible bid is submitted by a Marshallese contractor.
    Sec. 113. <<NOTE: Notification.>> The Secretary of Defense is to 
inform the appropriate committees of Congress, including the Committees 
on Appropriations, of the plans and scope of any proposed military 
exercise involving United States personnel 30 days prior to its 
occurring, if amounts expended for construction, either temporary or 
permanent, are anticipated to exceed $100,000.

    Sec. 114. Not more than 20 percent of the appropriations in Military 
Construction Appropriations Acts which are limited for obligation during 
the current fiscal year shall be obligated during the last 2 months of 
the fiscal year.

                           (transfer of funds)

    Sec. 115. Funds appropriated to the Department of Defense for 
construction in prior years shall be available for construction 
authorized for each such military department by the authorizations 
enacted into law during the current session of Congress.
    Sec. 116. For military construction or family housing projects that 
are being completed with funds otherwise expired or lapsed for 
obligation, expired or lapsed funds may be used to pay the cost of 
associated supervision, inspection, overhead, engineering and design on 
those projects and on subsequent claims, if any.
    Sec. 117. <<NOTE: 10 USC 2860 note.>> Notwithstanding any other 
provision of law, any funds appropriated to a military department or 
defense agency for the construction of military projects may be 
obligated for a

[[Page 116 STAT. 1584]]

military construction project or contract, or for any portion of such a 
project or contract, at any time before the end of the fourth fiscal 
year after the fiscal year for which funds for such project were 
appropriated if the funds obligated for such project: (1) are obligated 
from funds available for military construction projects; and (2) do not 
exceed the amount appropriated for such project, plus any amount by 
which the cost of such project is increased pursuant to law.

                           (transfer of funds)

    Sec. 118. <<NOTE: 10 USC 2860 note.>> During the 5-year period after 
appropriations available to the Department of Defense for military 
construction and family housing operation and maintenance and 
construction have expired for obligation, upon a determination that such 
appropriations will not be necessary for the liquidation of obligations 
or for making authorized adjustments to such appropriations for 
obligations incurred during the period of availability of such 
appropriations, unobligated balances of such appropriations may be 
transferred into the appropriation ``Foreign Currency Fluctuations, 
Construction, Defense'' to be merged with and to be available for the 
same time period and for the same purposes as the appropriation to which 
transferred.

    Sec. 119. <<NOTE: Reports. Deadline.>> The Secretary of Defense is 
to provide the Committees on Appropriations of the Senate and the House 
of Representatives with an annual report by February 15, containing 
details of the specific actions proposed to be taken by the Department 
of Defense during the current fiscal year to encourage other member 
nations of the North Atlantic Treaty Organization, Japan, Korea, and 
United States allies bordering the Arabian Sea to assume a greater share 
of the common defense burden of such nations and the United States.

                           (transfer of funds)

    Sec. 120. During the current fiscal year, in addition to any other 
transfer authority available to the Department of Defense, proceeds 
deposited to the Department of Defense Base Closure Account established 
by section 207(a)(1) of the Defense Authorization Amendments and Base 
Closure and Realignment Act (Public Law 100-526) pursuant to section 
207(a)(2)(C) of such Act, may be transferred to the account established 
by section 2906(a)(1) of the Department of Defense Authorization Act, 
1991, to be merged with, and to be available for the same purposes and 
the same time period as that account.
    Sec. 121. (a) No funds appropriated pursuant to this Act may be 
expended by an entity unless the entity agrees that in expending the 
assistance the entity will comply with sections 2 through 4 of the Act 
of March 3, 1933 (41 U.S.C. 10a-10c, popularly known as the ``Buy 
American Act'').
    (b) No funds made available under this Act shall be made available 
to any person or entity who has been convicted of violating the Act of 
March 3, 1933 (41 U.S.C. 10a-10c, popularly known as the ``Buy American 
Act'').
    Sec. 122. (a) In the case of any equipment or products that may be 
authorized to be purchased with financial assistance provided under this 
Act, it is the sense of the Congress that entities

[[Page 116 STAT. 1585]]

receiving such assistance should, in expending the assistance, purchase 
only American-made equipment and products.
    (b) <<NOTE: Notice.>> In providing financial assistance under this 
Act, the Secretary of the Treasury shall provide to each recipient of 
the assistance a notice describing the statement made in subsection (a) 
by the Congress.

                           (transfer of funds)

    Sec. 123. Subject to 30 days prior notification to the Committees on 
Appropriations, such additional amounts as may be determined by the 
Secretary of Defense may be transferred to the Department of Defense 
Family Housing Improvement Fund from amounts appropriated for 
construction in ``Family Housing'' accounts, to be merged with and to be 
available for the same purposes and for the same period of time as 
amounts appropriated directly to the Fund: Provided, That appropriations 
made available to the Fund shall be available to cover the costs, as 
defined in section 502(5) of the Congressional Budget Act of 1974, of 
direct loans or loan guarantees issued by the Department of Defense 
pursuant to the provisions of subchapter IV of chapter 169, title 10, 
United States Code, pertaining to alternative means of acquiring and 
improving military family housing and supporting facilities.
    Sec. 124. None of the funds appropriated or made available by this 
Act may be obligated for Partnership for Peace Programs in the New 
Independent States of the former Soviet Union.
    Sec. 125. <<NOTE: Deadline. Notice.>> (a) Not later than 60 days 
before issuing any solicitation for a contract with the private sector 
for military family housing the Secretary of the military department 
concerned shall submit to the congressional defense committees the 
notice described in subsection (b).

    (b)(1) A notice referred to in subsection (a) is a notice of any 
guarantee (including the making of mortgage or rental payments) proposed 
to be made by the Secretary to the private party under the contract 
involved in the event of--
            (A) the closure or realignment of the installation for which 
        housing is provided under the contract;
            (B) a reduction in force of units stationed at such 
        installation; or
            (C) the extended deployment overseas of units stationed at 
        such installation.

    (2) Each notice under this subsection shall specify the nature of 
the guarantee involved and assess the extent and likelihood, if any, of 
the liability of the Federal Government with respect to the guarantee.
    (c) In this section, the term ``congressional defense committees'' 
means the following:
            (1) The Committee on Armed Services and the Military 
        Construction Subcommittee, Committee on Appropriations of the 
        Senate.
            (2) The Committee on Armed Services and the Military 
        Construction Subcommittee, Committee on Appropriations of the 
        House of Representatives.

                           (transfer of funds)

    Sec. 126. During the current fiscal year, in addition to any other 
transfer authority available to the Department of Defense,

[[Page 116 STAT. 1586]]

amounts may be transferred from the account established by section 
2906(a)(1) of the Department of Defense Authorization Act, 1991, to the 
fund established by section 1013(d) of the Demonstration Cities and 
Metropolitan Development Act of 1966 (42 U.S.C. 3374) to pay for 
expenses associated with the Homeowners Assistance Program. Any amounts 
transferred shall be merged with and be available for the same purposes 
and for the same time period as the fund to which transferred.
    Sec. 127. <<NOTE: 10 USC 2821 note.>> Notwithstanding this or any 
other provision of law, funds appropriated in Military Construction 
Appropriations Acts for operations and maintenance of family housing 
shall be the exclusive source of funds for repair and maintenance of all 
family housing units, including general or flag officer quarters: 
Provided, That not more than $35,000 per unit may be spent annually for 
the maintenance and repair of any general or flag officer quarters 
without 30 days advance prior notification to the appropriate committees 
of Congress, except that an after-the-fact notification shall be 
submitted if the limitation is exceeded solely due to costs associated 
with environmental remediation that could not be reasonably anticipated 
at the time of the budget submission: Provided 
further, <<NOTE: Reports.>> That the Under Secretary of Defense 
(Comptroller) is to report annually to the Committees on Appropriations 
all operations and maintenance expenditures for each individual general 
or flag officer quarters for the prior fiscal year.

    Sec. 128. Notwithstanding any other provision of law, the Secretary 
of the Navy is authorized to use funds received pursuant to section 2601 
of title 10, United States Code, for the construction, improvement, 
repair, and maintenance of the historic residences located at Marine 
Corps Barracks, 8th and I Streets, Washington, D.C.: 
Provided, <<NOTE: Notification.>> That the Secretary notifies the 
appropriate committees of Congress 30 days in advance of the intended 
use of such funds: Provided further, <<NOTE: Expiration date.>> That 
this section remains effective until September 30, 2004.

    Sec. 129. None of the funds made available in this Act may be 
transferred to any department, agency, or instrumentality of the United 
States Government, except pursuant to a transfer made by, or transfer 
authority provided in, this Act or any other appropriation Act.
    Sec. 130. Amounts appropriated for a military construction project 
at Camp Kyle, Korea, relating to construction of a physical fitness 
center, as authorized by section 8160 of the Department of Defense 
Appropriations Act, 2000 (Public Law 106-79; 113 Stat. 1274), shall be 
available instead for a similar project at Camp Bonifas, Korea.
    Sec. 131. <<NOTE: 10 USC 221 note.>> (a) Requests for Funds for 
Environmental Restoration at BRAC Sites in Future Fiscal Years.--In the 
budget justification materials submitted to Congress in support of the 
Department of Defense budget for any fiscal year after fiscal year 2003, 
the amount requested for environmental restoration, waste management, 
and environmental compliance activities in such fiscal year with respect 
to military installations approved for closure or realignment under the 
base closure laws shall accurately reflect the anticipated cost of such 
activities in such fiscal year.

    (b) Base Closure Laws Defined.--In this section, the term ``base 
closure laws'' means the following:
            (1) Section 2687 of title 10, United States Code.

[[Page 116 STAT. 1587]]

            (2) The Defense Base Closure and Realignment Act of 1990 
        (part A of title XXIX of Public Law 101-510; 10 U.S.C. 2687 
        note).
            (3) Title II of the Defense Authorization Amendments and 
        Base Closure and Realignment Act (Public Law 100-526; 10 U.S.C. 
        2687 note).

    This Act may be cited as the ``Military Construction Appropriation 
Act, 2003''.

    Approved October 23, 2002.

LEGISLATIVE HISTORY--H.R. 5011 (S. 2709):
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HOUSE REPORTS: Nos. 107-533 (Comm. on Appropriations) and 107-731
(Comm. of Conference).
SENATE REPORTS: No. 107-202 accompanying S. 2709 (Comm. on 
Appropriations).
CONGRESSIONAL RECORD, Vol. 148 (2002):
            June 27, considered and passed House.
            July 17, 18, considered and passed Senate, amended.
            Oct. 10, House and Senate agreed to conference report.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 38 (2002):
            Oct. 23, Presidential remarks and statement.

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