PUBLIC LAW 107–249—OCT. 23, 2002

MILITARY CONSTRUCTION

APPROPRIATION ACT, 2003

116 STAT. 1578 PUBLIC LAW 107–249—OCT. 23, 2002

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.

Be it enacted by the Senate and House of Representatives of

the United States of America in Congress assembled, 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Army’’ in previous Military Construction Appropriation Acts, $49,376,000 are rescinded.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

Military

Construction

Appropriation

Act, 2003.

Oct. 23, 2002

[H.R. 5011]

PUBLIC LAW 107–249—OCT. 23, 2002 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

116 STAT. 1580 PUBLIC LAW 107–249—OCT. 23, 2002

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.

PUBLIC LAW 107–249—OCT. 23, 2002 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)

116 STAT. 1582 PUBLIC LAW 107–249—OCT. 23, 2002

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. 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.

Contracts.

PUBLIC LAW 107–249—OCT. 23, 2002 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. 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. 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

10 USC 2860

note.

Notification.

116 STAT. 1584 PUBLIC LAW 107–249—OCT. 23, 2002

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

a project or contract, at any time before the end of the fourth

fiscal year after the fiscal year for which funds for such project

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

obligated from funds available for military construction projects;

and (2) do not exceed the amount appropriated for such project,

plus any amount by which the cost of such project is increased

pursuant to law.

(TRANSFER OF FUNDS)

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

family housing operation and maintenance and construction have

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

for making authorized adjustments to such appropriations for

obligations incurred during the period of availability of such appropriations, unobligated balances of such appropriations may be transferred into the appropriation ‘‘Foreign Currency Fluctuations,

Construction, Defense’’ to be merged with and to be available for

the same time period and for the same purposes as the appropriation to which transferred.

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

on Appropriations of the Senate and the House of Representatives

with an annual report by February 15, containing details of the

specific actions proposed to be taken by the Department of Defense

during the current fiscal year to encourage other member nations

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

United States allies bordering the Arabian Sea to assume a greater

share of the common defense burden of such nations and the United

States.

(TRANSFER OF FUNDS)

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

other transfer authority available to the Department of Defense,

proceeds deposited to the Department of Defense Base Closure

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

Reports.

Deadline.

10 USC 2860

note.

PUBLIC LAW 107–249—OCT. 23, 2002 116 STAT. 1585

receiving such assistance should, in expending the assistance, purchase only American-made equipment and products.

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

by the Congress.

(TRANSFER OF FUNDS)

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

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

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

the same period of time as amounts appropriated directly to the

Fund: Provided, That appropriations made available to the Fund

shall be available to cover the costs, as defined in section 502(5)

of the Congressional Budget Act of 1974, of direct loans or loan

guarantees issued by the Department of Defense pursuant to the

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

Code, pertaining to alternative means of acquiring and improving

military family housing and supporting facilities.

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

by this Act may be obligated for Partnership for Peace Programs

in the New Independent States of the former Soviet Union.

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

the Secretary of the military department concerned shall submit

to the congressional defense committees the notice described in

subsection (b).

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

guarantee (including the making of mortgage or rental payments)

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

the contract involved in the event of— (A) the closure or realignment of the installation for which

housing is provided under the contract;

(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,

Deadline.

Notice.

Notice.

116 STAT. 1586 PUBLIC LAW 107–249—OCT. 23, 2002

amounts may be transferred from the account established by section

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

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

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

to pay for expenses associated with the Homeowners Assistance

Program. Any amounts transferred shall be merged with and be

available for the same purposes and for the same time period

as the fund to which transferred.

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

funds appropriated in Military Construction Appropriations Acts

for operations and maintenance of family housing shall be the

exclusive source of funds for repair and maintenance of all family

housing units, including general or flag officer quarters: Provided,

That not more than $35,000 per unit may be spent annually for

the maintenance and repair of any general or flag officer quarters

without 30 days advance prior notification to the appropriate

committees of Congress, 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, 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, That the Secretary notifies the appropriate committees of Congress 30 days in advance of the intended use of such

funds: Provided further, 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. (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.

10 USC 221 note.

Expiration date.

Notification.

Reports.

10 USC 2821

note.

PUBLIC LAW 107–249—OCT. 23, 2002 116 STAT. 1587

LEGISLATIVE HISTORY—H.R. 5011 (S. 2709):

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.

Æ

(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.