94–815 

108TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 2d Session 108–607 

MILITARY CONSTRUCTION APPROPRIATIONS BILL, 2005 

JULY 15, 2004.—Committed to the Committee of the Whole House on the State of 

the Union and ordered to be printed 

Mr. KNOLLENBERG, from the Committee on Appropriations, 

submitted the following 

R E P O R T 

[To accompany H.R. 4837] 

The Committee on Appropriations submits the following report in 

explanation of the accompanying bill making appropriations for 

military construction, family housing, and base realignment and 

closure for the Department of Defense for the fiscal year ending 

September 30, 2005. 

CONTENTS 

Page 

Purpose of the Bill ................................................................................................... 2 

Conformance With Authorization Bill .................................................................... 2 

Summary of Committee Recommendation ............................................................ 2 

General Statement ................................................................................................... 7 

Budgetary Cap on Housing Privatization .............................................................. 7 

Sustainment, Restoration, and Modernization ...................................................... 8 

Military Construction: 

Army .................................................................................................................. 9 

Navy and Marine Corps ................................................................................... 10 

Air Force ............................................................................................................ 11 

Defense-wide ..................................................................................................... 12 

Army National Guard ...................................................................................... 13 

Air National Guard .......................................................................................... 14 

Army Reserve .................................................................................................... 14 

Naval Reserve ................................................................................................... 15 

Air Force Reserve ............................................................................................. 15 

NATO Security Investment Program ..................................................................... 16 

Family Housing Overview ....................................................................................... 16 

Family Housing: 

Army .................................................................................................................. 18 

Navy and Marine Corps ................................................................................... 20 

Air Force ............................................................................................................ 20 

Defense-wide ..................................................................................................... 21 

Department of Defense Family Housing Improvement Fund .............................. 22 

Homeowners Assistance Fund, Defense ................................................................ 22 

Chemical Demilitarization Construction, Defense-wide ....................................... 23 

2 

Base Realignment and Closure Account ................................................................ 23 

General Provisions ................................................................................................... 24 

Changes in Application of Existing Law ................................................................ 26 

Definition of Program, Project and Activity .......................................................... 26 

Appropriations Not Authorized by Law ................................................................. 27 

Transfer of Funds .................................................................................................... 29 

Constitutional Authority ......................................................................................... 29 

Comparisons With Budget Resolution ................................................................... 29 

Five-Year Projection of Outlays .............................................................................. 29 

Financial Assistance to State and Local Governments ........................................ 30 

Statement of General Performance Goals and Objectives .................................... 30 

State List .................................................................................................................. 30

PURPOSE OF THE BILL

The Military Construction Appropriations bill provides funds for 

planning, design, construction, alteration, and improvement of facilities and family housing located on reserve and active duty military installations around the world. Additionally, the bill provides 

funds for the U.S. share of the North Atlantic Treaty Organization 

Security Investment Program. The bill also provides funds to execute projects identified by the base realignment and closure authorities. Finally, the bill provides funds for the Department of Defense Chemical Demilitarization Construction program. 

CONFORMANCE WITH AUTHORIZATION BILL

On May 20, 2004, the House passed the National Defense Authorization Act for 2005 (H.R. 4200) by a vote of 391 to 34. At this 

time, conference action on the legislation has not concluded; therefore, projects in this bill are approved subject to authorization. 

SUMMARY OF COMMITTEE RECOMMENDATION

The Committee recommends $10,003,000,000 in new budget authority for the Military Construction Appropriations bill. This recommendation is $449,625,000 above the President’s request and 

$162,139,000 above the fiscal year 2004 enacted level. The following table compares amounts recommended in the bill to the 

President’s request and amounts appropriated in fiscal year 2004: 

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GENERAL STATEMENT

Several witnesses from the Army, Navy, Marine Corps, Air 

Force, and the Office of the Secretary of Defense emphasized to 

this Committee that we remain a nation at war. Current operations relating to the Global War on Terrorism, including, but not 

limited to Iraq and Afghanistan, combined with the other security 

commitments of the United States and homeland defense, place a 

great burden on the armed services. The Committee believes the 

ultimate purpose of this bill is to support our service men and 

women and their families. 

The challenges to military infrastructure at this time are numerous. The Secretary of Defense set the goal of achieving a 67-year 

recapitalization rate across all facilities by 2008, but even at this 

rate, the Department will not bring facilities up to an average 

readiness rating of C–2 until the end of fiscal year 2010. 

It is therefore with disappointment that the Committee notes the 

continuing inadequacy of military construction budget requests. As 

a percentage of the overall defense budget, military construction 

and family housing expenditures have declined since the mid1990s. The Committee understands that much of the growth in the 

defense budget in recent years has been due to operations and 

maintenance costs related to the Global War on Terrorism. At the 

same time, the Committee believes that the relatively small 

amounts needed to build and maintain good infrastructure and 

family housing yield tremendous benefits in terms of readiness, 

quality of life, and recruitment and retention rates of our service 

men and women. Yet the Committee notes that the military construction budget requests for the active and reserve components 

represent a cut of $378,697,000 and $110,545,000, respectively, 

from the fiscal year 2004 enacted level. Underfunding military construction with the expectation that Congress will fill in the gaps is 

an unwise and unsustainable budget strategy. The Committee is 

encouraged by indications that more substantial increases in military construction budget requests are forthcoming beginning in fiscal year 2006, and will continue to scrutinize those requests to ensure that those budgets are sufficiently matched to the Department’s goals. 

BUDGETARY CAP ON HOUSING PRIVATIZATION

The Committee fully supports the Military Housing Privatization 

Initiative (MHPI). Where it has been undertaken, privatized family 

housing for service members and their loved ones has dramatically 

improved the quality of life, resulting in residencies that are commensurate with the sacrifices that our service men and women are 

called on to make. By helping to ensure that inadequate housing 

is eliminated by the end of the decade, MHPI has a direct and positive impact on recruitment and retention rates, which are crucial 

to maintaining the excellence of the All Volunteer Force. 

While the Committee believes that the services should continue 

to rely on local housing markets as much as possible, privatized 

military housing represents the next best option in many cases. Before the end of this calendar year, the statutory cap limiting total 

Federal government contributions to $850,000,000 for privatized 

family housing will be reached. Without legislative relief, MHPI 

8 

will come to a halt, endangering numerous planned housing 

projects. Unfortunately, the Congressional Budget Office (CBO) has 

indicated that it will score any such legislation differently than in 

the past, rendering passage more difficult. 

The Committee believes that CBO’s approach is unmerited and 

greatly exaggerates the financial risk to the Federal government. 

While the Committee acknowledges the need for fiscal discipline, 

especially in this time of budget deficits, MHPI saves the Federal 

government money by leveraging private capital. The average ratio 

of private to Federal dollars is 11:1. Without MHPI, much of the 

family housing that would otherwise be built by leveraging private 

capital would necessarily be funded through traditional construction accounts. The inability to leverage private capital would entail 

a great loss of efficiency and likely delay the elimination of inadequate family housing well into the next decade of budget cycles. 

The Secretary of Defense has established a department-wide goal 

of eliminating inadequate family housing by the end of fiscal year 

2007. Without MHPI, achieving this goal is nearly impossible. The 

Committee therefore strongly supports current efforts to raise or 

eliminate the budgetary cap on MHPI and address scoring methodology changes proposed by CBO. 

SUSTAINMENT, RESTORATION, AND MODERNIZATION

The Committee continues to be concerned about the inadequacy 

of sustainment, restoration, and modernization (SRM) funds budgeted by the services. Although SRM funds are not appropriated in 

this bill, the level of SRM funds requested, enacted, and expended 

has a direct impact on the quality of all Department of Defense facilities. While the services submitted budgets that ostensibly fund 

95 percent of the required SRM level, the Committee is not confident this level will hold through budget execution, primarily due 

to the migration of funds to support underfunded base operations 

support accounts. Nor does the Committee have confidence that all 

installations will be treated equitably in the allocation of SRM 

funds. 

All services use C-ratings to measure facility readiness, with C– 1 being the best and C–4 the worst. Although these ratings are 

subject to slightly differing interpretations by each service, it is fair 

to say that C–3 and C–4 ratings negatively impact a facility’s ability to effectively support the mission. The Committee notes the percentages of C–3 and C–4 rated facilities as follows: 65 percent for 

the Army, 64 percent for the Navy, 50 percent for the Marine 

Corps, and 59 percent for the Air Force. Facilities in this shape 

have a direct impact on men and women in uniform, undermining 

readiness and endangering safety. The Committee therefore strongly urges the Administration to fully fund both SRM and base operating support for all services and ensure these levels are maintained through budget execution. 

The Department is directed to continue describing on form 1390 

the backlog of SRM requirements at installations with future construction projects. For troop housing requests, form 1391 should describe any SRM conducted in the past two years. Likewise, future 

requirements for unaccompanied housing at the corresponding installation should be included. Additionally, the forms should include English equivalent measurements for projects presented in 

9 

metric measurement. Rules for funding repairs of facilities under 

the Operation and Maintenance account are described below: • Components of the facility may be repaired by replacement. 

Such replacement can be up to current standards or codes. • Interior arrangements and restorations may be included as repair. • Additions, new facilities, and functional conversions must be 

performed as military construction projects. Such projects may be 

done concurrently with repair projects as long as the final conjunctively funded project is a complete and usable facility. • The appropriate service secretary shall notify the appropriate 

committees 21 days prior to carrying out any repair project with an 

estimated cost in excess of $7,500,000. 

MILITARY CONSTRUCTION, ARMY

Fiscal year 2004 appropriation .......................................................... $1,426,724,000 

Fiscal year 2005 budget request ....................................................... 1,771,285,000 

Committee recommendation in the bill ............................................ 1,862,854,000 

Comparison with: 

Fiscal year 2004 appropriation .................................................. 436,130,000 

Fiscal year 2005 budget request ................................................ 91,569,000 

The Committee recommends an appropriation of $1,862,854,000 

for Military Construction, Army, for fiscal year 2005. This is an increase of $436,130,000 above the fiscal year 2004 enacted level and 

an increase of $91,569,000 above the budget request. 

Alabama—Fort Rucker: Aircraft Maintenance Hangar.—Of the 

amount provided for planning and design in this account, the Committee directs that not less than $750,000 be made available for 

the design of this facility. 

California—Sierra Army Depot: Amedee Army Airfield Runway 

Extension.—Of the amount provided for planning and design in this account, the Committee directs that not less than $561,000 be 

made available for the design of this project. 

Georgia—Fort Benning: Receptee Barracks Expansion.—Of the 

amount provided for planning and design in this account, the Committee directs that not less than $2,250,000 be made available for 

the design of this facility. 

Georgia—Fort Gordon: Law Enforcement Complex.—Of the 

amount provided for planning and design in this account, the Committee directs that not less than $310,000 be made available for 

the design of this facility. 

Kentucky—Bluegrass Depot: Consolidated Shipping Center.—Of 

the amount provided for planning and design in this account, the 

Committee directs that not less than $365,000 be made available 

for the design of this facility. 

North Carolina—Raleigh: Joint Forces Headquarters Armed 

Forces Reserve Center.—The Committee recognizes the importance 

of the North Carolina Joint Forces Headquarters Readiness Center 

to the Army National Guard and requests the National Guard Bureau to provide a status report on the planning and design for this 

facility no later than February 1, 2005. The committee also encourages the Department to consider including this project in the next 

Future Year Defense Program. 

Pennsylvania—Tobyhanna: Child Development Center.—Of the 

amount provided for planning and design in this account, the ComVerDate May 21 2004 01:35 Jul 16, 2004 Jkt 094815 PO 00000 Frm 00009 Fmt 6659 Sfmt 6602 E:\HR\OC\HR607.XXX HR607
10 

mittee directs that not less than $278,000 be made available for 

the design of this facility. 

Virginia—Fort A.P. Hill: Combined Arms Collective Training Facility.—Of the amount provided for planning and design in this ac- count, the Committee directs that not less than $486,000 be made 

available for the design of this facility. 

Virginia—Fort Belvoir: Access Roads.—Of the amount provided 

for planning and design in this account, the Committee directs that 

not less than $500,000 be made available for the design of this 

project. 

Army Aviation Restructuring and Revitalization.—The Army announced on February 23, 2004 its intention to restructure and revitalize the Army Aviation program. In addition to the purchase of 

800 new aircraft and the modernization of 1,400 helicopters, the 

plan envisions the transformation of the Reserve component of 

Army Aviation. As a result of the cancellation of the Comanche helicopter program, the Administration submitted a budget amendment requesting the reallocation of $30,000,000 from the Comanche 

program to the Military Construction, Army National Guard account in fiscal year 2005. The Committee understands that these 

funds are intended to provide a head start on the Reserve component of Army Aviation restructuring. The Committee, however, believes that additional information is required to assess the impact 

of Army Aviation restructuring on Army facilities. The Committee 

therefore directs the Army to submit by September 10, 2004 a report on future plans for Army Aviation Support Facilities and all 

other projects required or affected by restructuring (e.g., runways). 

The report should include, for as many fiscal years as information 

is available, the installations at which new or modernized aircraft 

are to be delivered, the type of aircraft and date of delivery, and 

the projected cost of associated military construction. 

MILITARY CONSTRUCTION, NAVY AND MARINE CORPS

Fiscal year 2004 appropriation .......................................................... $1,238,366,000 

Fiscal year 2005 budget request ....................................................... 1,060,455,000 

Committee recommendation in the bill ............................................ 1,081,042,000 

Comparison with: 

Fiscal year 2004 appropriation .................................................. (157,324,000) 

Fiscal year 2005 budget request ................................................ 20,587,000 

The Committee recommends an appropriation of $1,081,042,000 

for Military Construction, Navy and Marine Corps, for fiscal year 

2005. This is a decrease of $157,324,000 below the fiscal year 2004 

enacted level and an increase of $20,587,000 above the budget request. 

California—Miramar MCAS: East Gate Physical Security.—Of 

the amount provided for planning and design in this account, the 

Committee directs that not less than $268,000 be made available 

for the design of this project. 

California—China Lake NAWC: Advanced Sensor Integration Facility.—Of the amount provided for planning and design in this ac- count, the Committee directs that not less than $250,000 be made 

available for the design of this facility. 

California—Naval Postgraduate School: Spanagel Hall.—The 

Committee is aware the Navy is in the process of conducting a 

space requirement for Spanagel Hall. The Navy is also in the procVerDate May 21 2004 01:35 Jul 16, 2004 Jkt 094815 PO 00000 Frm 00010 Fmt 6659 Sfmt 6602 E:\HR\OC\HR607.XXX HR607
11 

ess of making a determination of whether replacement or renovation of the existing facility is the right acquisition approach. The 

Committee encourages the Navy to move this project forward in an 

expeditious manner. 

Florida—Jacksonville NAS: Construct Aircraft Parking Apron 

(III).—Of the amount provided for planning and design in this ac- count, the Committee directs that not less than $150,000 be made 

available for the design of this project. 

Florida—Jacksonville NAS: Consolidated Operational Support 

Facility.—Of the amount provided for planning and design in this account, the Committee directs that not less than $150,000 be 

made available for the design of this facility. 

Pennsylvania—Norfolk NSY Philadelphia DET: Improve Inside 

Machine Shops.—Of the amount provided for planning and design 

in this account, the Committee directs that not less than 

$1,032,000 be made available for the design of this facility. 

Energy Conservation.—In addition to energy conservation programs for military construction projects funded through the Energy 

Conservation Improvement program, the Department of Defense 

has the authority to develop geothermal resources on military 

lands and keep the proceeds from the sale of electricity generated 

from those resources for use by the Department, including military 

construction projects. The Committee understands the Department 

of the Navy’s Geothermal Program Office is responsible for managing and developing these resources for the military. The Committee encourages the Navy to expand opportunities to use this authority for military construction projects, such as the use of triple 

junction amorphous silicon photovoltaic roofing. The Committee requests the Navy to provide a report to the Committee on actions 

taken to incorporate section 2867 of title 10 U.S.C. into the military construction program no later than January 14, 2005. 

MILITARY CONSTRUCTION, AIR FORCE

Fiscal year 2004 appropriation .......................................................... $1,337,301,000 

Fiscal year 2005 budget request ....................................................... 663,964,000 

Committee recommendation in the bill ............................................ 797,865,000 

Comparison with: 

Fiscal year 2004 appropriation .................................................. (539,436,000) 

Fiscal year 2005 budget request ................................................ 133,901,000 

The Committee recommends an appropriation of $797,865,000 for 

Military Construction, Air Force, for fiscal year 2005. This is a decrease of $539,436,000 below the fiscal year 2004 enacted level and 

an increase of $133,901,000 above the budget request. 

Florida—Cape Canaveral: Security Forces Operational Facility.—

Of the amount provided for planning and design in this account, 

the Committee directs that not less than $880,000 be made available for the design of this facility. 

Florida—MacDill AFB: CENTCOM Consolidation.—Of the 

amount provided for planning and design in this account, the Committee directs that not less than $8,000,000 be made available for 

the design of this facility. 

Idaho—Mountain Home AFB: Logistics Readiness Center.—Of 

the amount provided for planning and design in this account, the 

Committee directs that not less than $1,340,000 be made available 

for the design of this facility. 

12 

Kansas—McConnell AFB: Consolidated Mobility Processing Center.—Of the amount provided for planning and design in this ac- count, the Committee directs that not less than $1,332,000 be made 

available for the design of this facility. 

Nebraska—Offutt AFB: Repair Runway.—Of the amount provided for planning and design in this account, the Committee directs that not less than $497,000 be made available for the design 

of this project. 

Nevada—Nellis AFB: Fire and Crash Rescue Station.—Of the 

amount provided for planning and design in this account, the Committee directs that not less than $837,000 be made available for 

the design of this facility. 

North Dakota—Minot AFB: Dock 1 Multi-purpose Hangar 

Project.—Of the amount provided for planning and design in this account, the Committee directs that not less than $890,000 be 

made available for the design of this facility. 

Washington—Fairchild AFB: Mission Support Complex.—Of the 

amount provided for planning and design in this account, the Committee directs that not less than $670,000 be made available for 

the design of this facility. 

MILITARY CONSTRUCTION, DEFENSE-WIDE

Fiscal year 2004 appropriation .......................................................... $581,347,000 

Fiscal year 2005 budget request ....................................................... 709,337,000 

Committee recommendation in the bill ............................................ 718,837,000 

Comparison with: 

Fiscal year 2004 appropriation .................................................. 137,490,000 

Fiscal year 2005 budget request ................................................ 9,500,000 

The Committee recommends an appropriation of $718,837,000 for 

Military Construction, Defense-wide, for fiscal year 2005. This is an 

increase of $137,490,000 above the fiscal year 2004 enacted level 

and an increase of $9,500,000 above the budget request. Within 

this appropriation is $50,000,000 for the Energy Conservation Improvement Program, the same as the fiscal year 2004 level. 

Use of Steel in Military Construction.—The Committee understands the Department of Defense uses cold-formed steel for the 

framing of both residential and non-residential construction 

projects in tropical and coastal regions due to steel’s enhanced resistance to hurricanes, mold, rot and insect problems that frequently occur in these areas. Steel framing, which is produced domestically, may also hold other advantages in terms of fire resistance and life cycle costs. The Committee encourages the Department to explore opportunities for expanding the use of steel to 

other regions for military construction projects. 

Use of Sustainable Design Standards by the Department of Defense.—The Committee encourages the Department to utilize sustainable building design and construction methods of maximize the 

efficient use of renewable, recycled, and environmentally sound materials. However, concerns have been expressed that certain rating 

systems adopted by the Department to assess the standards of sustainable design and construction of facilities may unfairly discriminate against domestic producers of wood construction products. 

Therefore, the Committee requests the Secretary of Defense submit 

a report to the Committee by June 1, 2005 that describes: (1) the 

standards used by each military department to assess the use of 

13 

sustainable design and construction methods, including credits provided for products made from renewable and recycled materials; (2) 

the extent to which such standards comply with the requirements 

of section 6002 of the Resource Conservation and Recovery Act, section 6962 of title 42 U.S.C., Executive Order 13101, Office of Management and Budget Circular A–119, and other applicable requirements of law and regulation; and (3) the extent to which the standards adopted by each military department unfairly discriminate 

against the use of products and materials manufactured in the 

United States. The Committee expects the Secretary to take appropriate action to address any noncompliance with applicable requirements of law or regulation and any unfair discrimination against 

any U.S. manufactured materials identified during the course of 

this review. 

Water-Saving Technology.—The Committee is aware that the Department of Defense has installed water-free urinals in some new 

facilities. These devices may reduce a facility’s cost to taxpayers by 

reducing water and sewer bills, as well as maintenance and repair 

costs. These devices also can yield environmental and hygienic benefits. The Committee encourages the Department to utilize this and 

other water-saving technology when building or improving facilities. 

MILITARY CONSTRUCTION, ARMY NATIONAL GUARD

Fiscal year 2004 appropriation .......................................................... $311,592,000 

Fiscal year 2005 budget request ....................................................... 295,657,000 

Committee recommendation in the bill ............................................ 394,100,000 

Comparison with: 

Fiscal year 2004 appropriation .................................................. 82,508,000 

Fiscal year 2005 budget request ................................................ 98,443,000 

The Committee recommends an appropriation of $394,100,000 for 

Military Construction, Army National Guard, for fiscal year 2005. 

This is an increase of $82,508,000 above the fiscal year 2004 enacted level and an increase of $98,443,000 above the budget request. 

Florida—Daytona Beach: Joint Armed Forces Reserve Center.—Of 

the amount provided for planning and design in this account, the 

Committee directs that not less than $789,000 be made available 

for the design of this facility. 

Indiana—Gary: Joint Armed Forces Reserve Center.—Of the 

amount provided for planning and design in this account, the Committee directs that not less than $844,000 be made available for 

the design of this facility. 

Mississippi—Camp Shelby: Wastewater Treatment Facility.—Of 

the amount provided for unspecified minor construction in this account, the Committee directs that not less than $2,700,000 be made 

available for the construction of this facility. 

Nebraska—Lincoln: Joint Forces Headquarters.—Of the amount 

provided for planning and design in this account, the Committee 

directs that not less than $614,000 be made available for the design of this facility. 

North Carolina—Raleigh: Joint Forces Headquarters Armed 

Forces Reserve Center.—The Committee recognizes the importance 

of the North Carolina Joint Forces Headquarters Readiness Center 

to the Army National Guard and requests the National Guard BuVerDate May 21 2004 02:20 Jul 16, 2004 Jkt 094815 PO 00000 Frm 00013 Fmt 6659 Sfmt 6602 E:\HR\OC\HR607.XXX HR607
14 

reau to provide a status report on the planning and design for this 

facility no later than February 1, 2005. The Committee also encourages the Department to consider including this project in the next 

Future Year Defense Program. 

Pennsylvania—Hermitage: Readiness Center.—Of the amount 

provided for planning and design in this account, the Committee 

directs that not less than $485,000 be made available for the design of this facility. 

Tennessee—Nashville: Readiness Center Addition/Alteration 

Phase II.—Of the amount provided for planning and design in this account, the Committee directs that not less than $1,999,000 be 

made available for the design of this facility. 

Tennessee—Smyrna: Reserve Center.—Of the amount provided for 

planning and design in this account, the Committee directs that 

not less than $935,000 be made available for the design of this facility. 

Virginia—Winchester: Armory.—Of the amount provided for planning and design in this account, the Committee directs that not 

less than $530,000 be made available for the design of this facility. 

Washington—Gray Field: Aviation Readiness Center.—Of the 

amount provided for planning and design in this account, the Committee directs that not less than $2,014,000 be made available for 

the design of this facility. 

MILITARY CONSTRUCTION, AIR NATIONAL GUARD

Fiscal year 2004 appropriation .......................................................... $222,908,000 

Fiscal year 2005 budget request ....................................................... 127,368,000 

Committee recommendation in the bill ............................................ 180,533,000 

Comparison with: 

Fiscal year 2004 appropriation .................................................. (42,375,000) 

Fiscal year 2005 budget request ................................................ 53,165,000 

The Committee recommends an appropriation of $180,533,000 for 

Military Construction, Air National Guard, for fiscal year 2005. 

This is a decrease of $42,375,000 below the fiscal year 2004 enacted 

level and an increase of $53,165,000 above the budget request. 

Alabama—Montgomery Regional Airport: Composite Operations 

Training Facility.—Of the amount provided for planning and design in this account, the Committee directs that not less than 

$772,000 be made available for the design of this facility. 

Colorado—Greeley Airport: Space Warning System Squadron 

Support Facility.—Of the amount provided for planning and design in this account, the Committee directs that not less than $509,000 

be made available for the design of this facility. 

Illinois—Springfield: Base Entrance 183rd Fighter Wing.—Of the 

amount provided for planning and design in this account, the Committee directs that not less than $300,000 be made available for 

the design of this project. 

Iowa—Fort Dodge: Vehicle Maintenance and Communications 

Training Facility.—Of the amount provided for planning and design in this account, the Committee directs that not less than 

$375,000 be made available for the design of this facility. 

Missouri—Rosencrans Airport: Fire and Crash Rescue Station.—

Of the amount provided for planning and design in this account, 

the Committee directs that not less than $650,000 be made available for the design of this facility. 

15 

New York—Westhampton: Pararescue Complex.—Of the amount 

provided for planning and design in this account, the Committee 

directs that not less than $990,000 be made available for the design of this facility. 

New York—Stewart IAP: Replace Fire and Crash Rescue Station.—Of the amount provided for planning and design in this account, the Committee directs that not less than $501,000 be made 

available for the design of this facility. 

MILITARY CONSTRUCTION, ARMY RESERVE

Fiscal year 2004 appropriation .......................................................... $88,451,000 

Fiscal year 2005 budget request ....................................................... 87,070,000 

Committee recommendation in the bill ............................................ 116,521,000 

Comparison with: 

Fiscal year 2004 appropriation .................................................. 28,070,000 

Fiscal year 2005 budget request ................................................ 29,451,000 

The Committee recommends an appropriation of $116,521,000 for 

Military Construction, Army Reserve, for fiscal year 2005. This is 

an increase of $28,070,000 above the fiscal year 2004 enacted level 

and an increase of $29,451,000 above the budget request. 

California—Garden Grove: Army Reserve Center/OMS/Unheated 

Storage.—Of the amount provided for planning and design in this 

account, the Committee directs that not less than $843,000 be 

made available for the design of this facility. 

MILITARY CONSTRUCTION, NAVAL RESERVE

Fiscal year 2004 appropriation .......................................................... $45,498,000 

Fiscal year 2005 budget request ....................................................... 25,285,000 

Committee recommendation in the bill ............................................ 30,955,000 

Comparison with: 

Fiscal year 2004 appropriation .................................................. (14,543,000) 

Fiscal year 2005 budget request ................................................ 5,670,000 

The Committee recommends an appropriation of $30,955,000 for 

Military Construction, Naval Reserve, for fiscal year 2005. This is 

a decrease of $14,543,000 below the fiscal year 2004 enacted level 

and an increase of $5,670,000 above the budget request. 

MILITARY CONSTRUCTION, AIR FORCE RESERVE

Fiscal year 2004 appropriation .......................................................... $62,032,000 

Fiscal year 2005 budget request ....................................................... 84,556,000 

Committee recommendation in the bill ............................................ 111,725,000 

Comparison with: 

Fiscal year 2004 appropriation ...................................................... 49,693,000 

Fiscal year 2005 budget request .................................................... 27,169,000 

The Committee recommends an appropriation of $111,725,000 for 

Military Construction, Air Force Reserve, for fiscal year 2005. This 

is an increase of $49,693,000 above the fiscal year 2004 enacted 

level and an increase of $27,169,000 above the budget request. 

Ohio—Youngstown ARS: Joint Services Lodging Facility Phase 

I.—Of the amount provided for planning and design in this account, the Committee directs that not less than $954,000 be made 

available for the design of this facility. 

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NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT

PROGRAM

Fiscal year 2004 appropriation .......................................................... $161,300,000 

Fiscal year 2005 budget request ....................................................... 165,800,000 

Committee recommendation in the bill ............................................ 165,800,000 

Comparison with: 

Fiscal year 2004 appropriation ...................................................... 4,500,000 

Fiscal year 2005 budget request .................................................... ............................

The Committee recommends an appropriation of $165,800,000 for 

the North Atlantic Treaty Organization Security Investment Program (NSIP). This is an increase of $4,500,000 above the fiscal year 

2004 enacted level and the same level as the budget request. 

NSIP consists of annual contributions by NATO member countries. The program finances the costs of construction needed to support the roles of the major NATO commands. The investments 

cover facilities such as airfields, fuel pipelines and storage, harbors, 

communications and information systems, radar and navigational 

aids, and military headquarters. 

Occasionally, the U.S. has been forced to delay temporarily the 

authorization of projects due to shortfalls in U.S. obligation authority. The Committee directs the Secretary of Defense to notify the 

Committee 30 days prior to taking such action. 

FAMILY HOUSING OVERVIEW

Fiscal year 2004 appropriation .......................................................... $3,820,100,000 

Fiscal year 2005 budget request ....................................................... 4,171,596,000 

Committee recommendation in the bill ............................................ 4,151,766,000 

Comparison with: 

Fiscal year 2004 appropriation ...................................................... 331,666,000 

Fiscal year 2005 budget request .................................................... (19,830,000) 

The Committee recommends a total appropriation of $4,151,766,000 for the family housing construction and operation 

and maintenance accounts for fiscal year 2005. This is an increase 

of $331,666,000 above the fiscal year 2004 enacted level and a decrease of $19,830,000 below the budget request. The decrease below 

the request is within the operation and maintenance accounts and 

is explained under general and flag officer quarters and under the 

individual account sections. The operation and maintenance accounts provide funds to pay for maintenance and repair, furnishings, management, services, utilities, leasing, interest, mortgage insurance, and miscellaneous expenses. 

Historically, housing for military personnel and their families 

has been a low priority for the Department of Defense. Consequently, the inventory is old and in many cases substandard. In 

January 2001, the Department estimated that out of 300,000 total 

housing units worldwide, approximately 180,000 (or 60 percent) 

were inadequate. The Committee is pleased to note that progress 

has been made to reduce this percentage. At the beginning of fiscal 

year 2004, the number of inadequate units had been reduced to 

120,000 (or 47 percent) of 256,000 total units. With the budget effort supported in this bill and assuming the continuation of the 

Military Housing Privatization Initiative (MHPI), the number of inadequate units will be reduced to 61,000 by the end of fiscal year 

2005. The Committee fully approves the Secretary of Defense’s goal 

to eliminate inadequate housing by the end of fiscal year 2007, 

17 

with the exception of four Air Force installations in fiscal year 2008 

and Air Force overseas housing in 2009. 

Achieving that goal depends on two key factors. The first is the 

continuation of the MHPI. The Committee has noted its concern 

about the future of this program in the beginning of this report. 

The second is the commitment of the services and the Administration to request an increased level of funding for fiscal years 2006 

and 2007. The Committee strongly supports continuation of MHPI 

and expects to see future budget requests follow through on the 

commitment to eliminate inadequate housing. 

General and Flag Officer Quarters.—The Committee is concerned 

by the often large expenditures on renovations and repairs for general and flag officer quarters (GFOQ), especially within the Navy 

and Marine Corps. A May 2004 General Accounting Office (GAO) 

report indicated that, of the 13 cases in which actual costs of major 

repair projects exceeding $100,000 went over budget, all were Navy 

and Marine Corps projects. The GAO report additionally found that 

45 percent of cost increases for Marine Corps major renovation 

projects that exceeded budgets by 10 percent were ‘‘customer driven,’’ or demanded by officers residing in those quarters. According 

to the GAO report, housing officials indicated that, ‘‘controlling 

costs due to customer requests is directly related to a housing officer’s ability to say no to requests that could be perceived as excessive and draw scrutiny upon the service.’’ The Committee believes that, in order to arrest this problem, the 

Navy and Marine Corps should ensure customer-driven cost increases for GFOQ repair and renovation projects are reviewed at 

the regional level before final approval. The Committee notes that 

the overwhelming majority—93 percent—of GFOQ repair and renovation projects reviewed by GAO across all services were completed within budget, and commends the services on their general 

performance. 

In order to further improve such performance, the Committee 

supports the recommendations of the House Armed Services Committee for increasing congressional oversight of GFOQ maintenance, including lowering the reporting threshold to $20,000. In addition, the Committee reduced the family housing operations and 

maintenance account for each service by the following amounts: 

$2,400,000 for the Army, $8,200,000 for the Navy and Marine 

Corps, and $230,000 for the Air Force. These amounts represent 

the President’s request for GFOQ repairs and maintenance. 

Family Housing Operations and Maintenance.—The Committee 

is very concerned by the migration of funds among accounts and 

sub-accounts within the services’ family housing operations and 

maintenance (O&M) accounts. In response to a Committee request, 

the GAO reported in May 2004 that reprogramming of O&M funds 

is frequent and substantial across all services, reaching levels of 

20, 40 and even 60 percent relative to the original appropriation for 

individual accounts and sub-accounts. While the sum of these 

reprogrammings did not reach the 10 percent threshold required 

for congressional notification, the shifting of funds is significant 

enough that the Committee believes further information is necessary. The Committee therefore directs each service to report to 

the Committee on reprogramming of funds within family housing 

operations and maintenance, including the net amount and perVerDate May 21 2004 01:35 Jul 16, 2004 Jkt 094815 PO 00000 Frm 00017 Fmt 6659 Sfmt 6602 E:\HR\OC\HR607.XXX HR607
18 

centage of funds transferred into or out of each account and subaccount during fiscal year 2004. This information should be provided no later than the President’s budget submission for fiscal 

year 2006, and may be included with budget justification materials. 

Inadequate Housing.—The fiscal year 2004 conference report 

noted the lack of a uniform definition of ‘‘inadequate’’ housing covering all the services. The report also noted that the lack of a uniform definition creates inequities between services, between installations, and even among homes on the same installation. The report accordingly directed the Department of Defense to establish a 

uniform procedure for identifying inadequate housing by October 1, 

2003. The Committee notes that as of the date of this report, no 

standard has been instituted. While the Committee fully supports 

the goal of eliminating inadequate housing by fiscal year 2007, no 

military families should be left behind in the accomplishment. This 

situation remains unacceptable and the Committee directs the Secretary of Defense to report on the progress of its efforts to form a 

standard definition of inadequate housing no later than 30 days 

after the enactment of this Act. 

Foreign Currency Savings.—The Committee directs that savings 

from foreign currency re-estimates be used to maintain existing 

family housing units. The Comptroller is directed to report to the 

Committee on how these savings are allocated by December 1, 

2005. Likewise, only 10 percent of funds made available to the construction and operation and maintenance sub-accounts may be 

transferred between the sub-accounts. Such transfers must be reported to the Committee within 30 days of such action. 

Leasing Reporting Requirement.—As in prior years, the Secretary 

of Defense is directed to report quarterly on the details of all new 

or renewal domestic leases entered into during the previous quarter that exceed $15,000 per unit per year, including certification 

that less expensive housing was not available for lease. For foreign 

leases, the Department is directed to: (1) perform an economic 

analysis on all new leases or lease/contract agreements where more 

than 25 units are involved; (2) report the details of new or renewal 

lease that exceeds $20,000 per year (as adjusted for foreign currency fluctuation from October 1, 1987, but not adjusted for inflation) 21 days prior to entering into such an agreement; and (3) base 

leasing decisions on the economic analysis. 

Reprogramming Criteria.—The reprogramming criteria that 

apply to military construction projects (25 percent of the funded 

amount or $2,000,000, whichever is less) apply to new housing construction projects and improvement projects over $2,000,000 as 

well. 

FAMILY HOUSING CONSTRUCTION, ARMY

Fiscal year 2004 appropriation .......................................................... $289,440,000 

Fiscal year 2005 budget request ....................................................... 636,099,000 

Committee recommendation in the bill ............................................ 636,099,000 

Comparison with: 

Fiscal year 2004 appropriation ...................................................... 346,659,000 

Fiscal year 2005 budget request .................................................... ............................

The Committee recommends an appropriation of $636,099,000 for 

Family Housing Construction, Army, for fiscal year 2005. This is 

an increase of $346,659,000 above the fiscal year 2004 enacted 

19 

level and the same as the budget request. The appropriation includes $394,900,000 to construct new family housing units, 

$211,990,000 to improve existing units, and $29,209,000 for planning and design. This funding level will provide the budget request 

of $136,590,000 for the privatization of family housing at 6 installations, and supports the elimination of 12,076 inadequate family 

housing units. 

The Committee is very supportive of the Army’s efforts to secure 

the return of land at the former Fort Ord in order to expand its 

RCI project at the Ord Military Community. The Committee is 

pleased to note that the Army recently resolved outstanding 

issues—save one—that will allow the Army to gain control over the 

Fort Ord parcel known as the ‘‘Stilwell Kidney’’ on which the Army 

can build military housing, as well as enter into public-private 

partnership relations for developing other civilian housing for government workers. 

The Committee acknowledges that the terms of the Army’s agreement include 114 acre feet of surplus Army water that shall be conveyed to the City of Seaside, California, of which 39 acre feet shall 

be used for development of workforce housing. The Army is expected to build approximately 300 units of housing for military 

families on the Kidney on land that will be gifted back to the U.S. 

Government. The Army’s LLC partner, Clark Pinnacle, is required 

to provide water for and to build (or contract out to build) 120 units 

of workforce housing on the Kidney that will be made available on 

a preferential basis to government and public employees. Further, 

the Army with its LLC partner, will provide water for and build 

(or contract out to build) a yet-to-be-determined number of market 

rate houses on the Kideny—the final outstanding issue. This market rate housing will be only in numbers as needed to provide the 

financial wherewithal to underwrite the RCI units on the Kidney 

but no more than 150 units. Prior to finalizing the contract for this 

Kidney deal, the Committee directs Army to submit to the Committee a final figure and justification on the number of market rate 

units Army will build. The Committee expects that water furnished 

to the market rate housing development shall be only for the purpose of supporting housing and only in the acre feet necessary to 

support those specified units. 

FAMILY HOUSING OPERATION AND MAINTENANCE, ARMY

Fiscal year 2004 appropriation .......................................................... $1,044,446,000 

Fiscal year 2005 budget request ....................................................... 928,907,000 

Committee recommendation in the bill ............................................ 926,507,000 

Comparison with: 

Fiscal year 2004 appropriation ...................................................... (117,939,000) 

Fiscal year 2005 budget request .................................................... (2,400,000) 

The Committee recommends an appropriation of $926,507,000 for 

Family Housing Operation and Maintenance, Army, for fiscal year 

2005. This is a decrease of $117,939,000 below the fiscal year 2004 

enacted level and a decrease of $2,400,000 below the budget request. The decrease is to be taken from the Maintenance and Real 

Property account for general and flag officer quarters. 

20 

FAMILY HOUSING CONSTRUCTION, NAVY AND MARINE CORPS

Fiscal year 2004 appropriation .......................................................... $143,685,000 

Fiscal year 2005 budget request ....................................................... 139,107,000 

Committee recommendation in the bill ............................................ 139,107,000 

Comparison with: 

Fiscal year 2004 appropriation .................................................. (4,578,000) 

Fiscal year 2005 budget request ................................................ ............................

The Committee recommends an appropriation of $139,107,000 for 

Family Housing Construction, Navy and Marine Corps, for fiscal 

year 2005. This is a decrease of $4,578,000 below the fiscal year 

2004 enacted level and the same as the budget request. The appropriation includes $27,002,000 to construct new family housing units 

and $112,105,000 to improve existing units. This funding level will 

provide the budget request of $102,105,000 for the privatization of 

family housing at 6 installations, and supports the elimination of 

8,202 inadequate family housing units. 

The Committee is aware that the Navy has entered into negotiations with a contractor team for the privatization of family housing 

and potential divestiture of properties no longer viable for continued Navy use within Navy Region Northwest, including housing at 

Submarine Base, Bangor; Naval Undersea Warfare Center, 

Keyport; Naval Magazine, Indian Island; Naval Station, Bremerton; Olalla; Kingston; Bainbridge Island; Fort Lawton; Magnolia 

(Quarters A); Brier; Naval Radio Station, Jim Creek; and Naval Air 

Station, Whidbey Island. The Committee is also aware that the 

Navy has agreed to consult with the State Historic Preservation 

Officer and other interested parties, including the City of Seattle 

to consider the interests and concerns of surrounding neighborhoods and local jurisdictions. The Committee supports the Navy’s 

commitment to work with all parties to achieve a mutually beneficial outcome in maintaining Discovery Park as a regional resource. 

FAMILY HOUSING OPERATION AND MAINTENANCE, NAVY AND

MARINE CORPS

Fiscal year 2004 appropriation .......................................................... $841,358,000 

Fiscal year 2005 estimate .................................................................. 704,504,000 

Committee recommendation in the bill ............................................ 696,304,000 

Comparison with: 

Fiscal year 2004 appropriation .................................................. (145,054,000) 

Fiscal year 2005 budget request ................................................ (8,200,000) 

The Committee recommends an appropriation of $696,304,000 for 

Family Housing Operation and Maintenance, Navy and Marine 

Corps, for fiscal year 2005. This is a decrease of $145,054,000 

below the fiscal year 2004 enacted level and a decrease of 

$8,200,000 below the budget request. The decrease is to be taken 

from the Maintenance of Real Property account for general and flag 

officer quarters. 

FAMILY HOUSING CONSTRUCTION, AIR FORCE

Fiscal year 2004 appropriation .......................................................... $637,718,000 

Fiscal year 2005 budget request ....................................................... 846,959,000 

Committee recommendation in the bill ............................................ 846,959,000 

Comparison with: 

Fiscal year 2004 appropriation .................................................. 209,241,000 

Fiscal year 2005 budget request ................................................ ............................

21 

The Committee recommends an appropriation of $846,959,000 for 

Family Housing Construction, Air Force, for fiscal year 2005. This 

is an increase of $209,241,000 above the fiscal year 2004 enacted 

level and the same as the budget request. The appropriation includes $570,340,000 to construct new family housing units, 

$238,353,000 to improve existing units, and $38,266,000 for planning and design. The funding level will provide the budget request 

of $82,863,000 for the privatization of family housing at 6 installations, and supports the elimination of 14,268 inadequate family 

housing units. 

FAMILY HOUSING OPERATION AND MAINTENANCE, AIR FORCE

Fiscal year 2004 appropriation .......................................................... $823,055,000 

Fiscal year 2005 budget request ....................................................... 863,896,000 

Committee recommendation in the bill ............................................ 854,666,000 

Comparison with: 

Fiscal year 2004 appropriation .................................................. 31,611,000 

Fiscal year 2005 budget request ................................................ (9,230,000) 

The Committee recommends an appropriation of $854,666,000 for 

Family Housing Operation and Maintenance, Air Force, for fiscal 

year 2005. This is an increase of $31,611,000 above the fiscal year 

2004 enacted level and a decrease of $9,230,000 below the budget 

request. The decrease is to be taken as follows: $230,000 from the 

Maintenance of Real Property account for general and flag officer 

quarters, $2,500,000 from the Furnishings account, and $6,500,000 

from the Management account. The Air Force requested an increase in the Management account despite the fact that the total 

inventory of housing units is expected to decrease by 14,268 units 

in fiscal year 2005, suggesting a 23 percent increase in the per unit 

management cost. The Committee finds this increase unjustified 

and the reduction in the Management account represents one-half 

of the difference between the requested amount and the amount 

that would be necessary without this per unit cost increase. The 

Committee also finds that the per unit cost increase in the Furnishings account is also unjustified, and the request also has been 

accordingly reduced. 

FAMILY HOUSING CONSTRUCTION, DEFENSE-WIDE

Fiscal year 2004 appropriation .......................................................... $350,000 

Fiscal year 2005 budget request ....................................................... 49,000 

Committee recommendation in the bill ............................................ 49,000 

Comparison with: 

Fiscal year 2004 appropriation .................................................. (301,000) 

Fiscal year 2005 budget request ................................................ ............................

The Committee recommends an appropriation of $49,000 for 

Family Housing Construction, Defense-wide, for fiscal year 2005. 

This is a decrease of $301,000 below the fiscal year 2004 enacted 

level and the same as the budget request. The recommended 

amount is solely for the improvement of existing units. 

22 

FAMILY HOUSING OPERATION AND MAINTENANCE, DEFENSE-WIDE

Fiscal year 2004 appropriation .......................................................... $49,440,000 

Fiscal year 2005 budget request ....................................................... 49,575,000 

Committee recommendation in the bill ............................................ 49,575,000 

Comparison with: 

Fiscal year 2004 appropriation .................................................. 135,000 

Fiscal year 2005 budget request ................................................ ............................

The Committee recommends an appropriation of $49,575,000 for 

Family Housing Operation and Maintenance, Defense-wide, for fiscal year 2005. This is an increase of $135,000 above the fiscal year 

2004 enacted level and the same as the budget request. 

DEPARTMENT OF DEFENSE FAMILY HOUSING IMPROVEMENT FUND

Fiscal year 2004 appropriation .......................................................... $ (9,392,000) 

Fiscal year 2005 budget request ....................................................... 2,500,000 

Committee recommendation in the bill ............................................ 2,500,000 

Comparison with: 

Fiscal year 2004 appropriation .................................................. 11,892,000 

Fiscal year 2005 estimate ........................................................... ............................

The Committee recommends an appropriation of $2,500,000 for 

the Department of Defense Family Housing Improvement Fund 

(FHIF) for fiscal year 2005. This is an increase of $11,892,000 

above the fiscal year 2004 enacted level and the same as the budget request. The Military Construction Appropriations Act, 2004 (PL 

108–132) appropriated $300,000 to the Fund while rescinding 

$9,692,000 for a project that was no longer required. The Department is directed to continue providing quarterly status reports on 

each privatization project. 

The FHIF is authorized by section 2883, title 10, United States 

Code, and provides the Department of Defense with authority to finance joint ventures with the private sector to revitalize and to 

manage the Department’s housing inventory. The statute authorizes the Department to use limited partnerships, make direct and 

guaranteed loans, and convey Department-owned property to stimulate the private sector to increase the availability of affordable, 

quality housing for military personnel. 

The FHIF is used to build or renovate family housing by mixing 

or matching various legal authorities, and by utilizing private capital and expertise to the maximum extent possible. The Fund is administered as a single account without fiscal year limitations and 

contains appropriated and transferred funds from family housing 

construction accounts. 

HOMEOWNERS ASSISTANCE FUND, DEFENSE

The Committee recommends no appropriation for the Homeowners Assistance Fund. The fund is financed by revenue from the 

sale of acquired properties and prior year unobligated balances. 

The total program estimate for fiscal year 2005 is $11,542,373. 

The Homeowners Assistance Fund is a non-expiring revolving 

fund that provides assistance to homeowners. The fund was established to ameliorate adverse impacts on the economies of local communities caused by base realignment and closure (BRAC). A service member may access the fund if the value of the home decreases 

due to BRAC. The account receives funds from several sources: appropriations, borrowing authority, reimbursable authority, prior fisVerDate May 21 2004 01:35 Jul 16, 2004 Jkt 094815 PO 00000 Frm 00022 Fmt 6659 Sfmt 6602 E:\HR\OC\HR607.XXX HR607
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cal year unobligated balances, revenue from sale of acquired properties, and recovery of prior year obligations. 

CHEMICAL DEMILITARIZATION CONSTRUCTION, DEFENSE-WIDE

Fiscal year 2004 appropriation .......................................................... $119,815,000 

Fiscal year 2005 budget request ....................................................... 81,886,000 

Committee recommendation in the bill ............................................ 81,886,000 

Comparison with: 

Fiscal year 2004 appropriation .................................................. (37,929,000) 

Fiscal year 2005 budget request ................................................ ............................

The Committee recommends an appropriation of $81,886,000 for 

Chemical Demilitarization Construction, Defense-wide, for fiscal 

year 2005. This is a decrease of $37,929,000 below the fiscal year 

2004 enacted level and the same as the budget request. The following chart displays the fiscal year 2005 increments included in 

the bill: 

State/Installation Project Request Recommended 

Colorado: Pueblo Depot Activity Ammunition Demilitarization Facility (Ph–VI) $44,792,000 $44,792,000 

Kentucky: Blue Grass Army Depot Ammunition Demilitarization Facility (Ph–V) 37,094,000 37,094,000 

Total .................................. .................................................................................... 81,886,000 81,886,000 

The Chemical Demilitarization Construction, Defense-wide account provides funds for the design and construction of full-scale 

chemical disposal facilities and associated projects to upgrade installation support facilities and infrastructures required to support 

the Chemical Demilitarization program. 

BASE REALIGNMENT AND CLOSURE ACCOUNT

Fiscal year 2004 appropriation .......................................................... $370,427,000 

Fiscal year 2005 budget request ....................................................... 246,116,000 

Committee recommendation in the bill ............................................ 246,116,000 

Comparison with: 

Fiscal year 2004 appropriation .................................................. (124,311,000) 

Fiscal year 2005 budget request ................................................ ............................

The Committee recommends an appropriation of $246,116,000 for 

the Base Realignment and Closure Account (BRAC) for fiscal year 

2005. This is a decrease of $124,311,000 below the fiscal year 2004 

enacted level and the same as the budget request. In addition to 

the amount appropriated, the Department projects revenues of 

$115,000,000 from the sale of land for a total program level of 

$361,116,000. 

The Defense Authorization Amendments and Base Closure and 

Realignment Act of 1988 (Public Law 100–526) and the Defense 

Base Closure and Realignment Act of 1990 (Public Law 101–510) 

authorized four base realignment and closure (BRAC) rounds between 1988 and 1995 to reduce excess military bases and infrastructure. Ninety-seven major domestic installations were closed 

and several facilities were realigned. The four BRAC rounds netted 

savings of approximately $15,500,000,000 through fiscal year 2001. 

The Department estimates the costs avoided from fiscal year 2002 

and beyond are approximately $6,000,000,000 per year. The Congress has appropriated a net total of $22,706,132,000 for 

the BRAC program from fiscal years 1990 through 2004. Within 

24 

this amount, the Department has allocated $8,405,146,000 for activities associated with environmental restoration. 

The Committee has provided the Department with the flexibility 

to allocate funds by service component, by functions, and by base. 

Recognizing the complexities of providing for environmental restoration of properties, the Committee has provided flexibility to 

allow the Office of the Secretary of Defense to monitor program 

execution to redistribute unobligated balances as appropriate to 

avoid delays and to effect timely execution of environmental cleanup responsibilities. 

California—Fort Ord.—A controlled burn at Fort Ord last year 

burned out of control and scorched nearly three times as much 

acreage as planned. The Committee encourages the Army to use 

this unexpected opportunity to conduct additional remediation activities as appropriate. 

GENERAL PROVISIONS

The Administration proposed eliminating several general provisions enacted in P.L. 108–132, including sections 111, 113, 119, 

122, 123, 126, 127, and 128. The Committee retains each provision 

with the exception of 128, which established the Commission on 

the Review of Overseas Military Facility Structure of the United 

States. 

The Administration proposed one new general provision allowing 

funds in the Ford Island Improvement Account to be appropriated 

and expended for the purposes specified in 10 U.S.C. 2814(i)(1) or 

until transferred pursuant to the provisions 10 U.S.C. 2814(i)(3). 

The Committee did not include this provision. 

The Committee includes a new general provision to require the 

Department to provide a written response to inquiries made by the 

subcommittee within 21 days. 

General Provisions included in the bill are as follows: 

Section 101 limits DOD from spending funds appropriated in this 

Act for payments under a cost-plus-a-fixed-fee contract for construction where cost estimates exceed $25,000. An exception for 

Alaska is provided. 

Section 102 permits the hire of passenger motor vehicles. 

Section 103 permits funds to be expended on the construction of 

defense access roads under certain circumstances. 

Section 104 prohibits construction of new bases in the United 

States without a specific appropriation. 

Section 105 limits the use of funds for the purchase of land or 

land easements that exceed 100% of value. 

Section 106 prohibits the use of funds to acquire land, prepare 

sites, or install utilities for family housing except housing for which 

funds have been appropriated. 

Section 107 limits the use of minor construction funds to be 

transferred or relocated from one installation to another. 

Section 108 prohibits the procurement of steel unless American 

producers, fabricators, and manufacturers have been allowed to 

compete. 

Section 109 limits appropriations from being used to pay real 

property taxes in foreign nations. 

Section 110 prohibits the use of funds to initiate a new installation overseas without prior notification. 

25 

Section 111 establishes a preference for American architectural 

and engineering services where the services are in Japan, NATO 

member countries, and the Arabian Gulf. 

Section 112 establishes a preference for American contractors for 

military construction in the United States territories and possessions in the Pacific and on Kwajalein Atoll, or in the Arabian Gulf, 

except bids by Marshallese contractors for military construction on 

Kwajalein Atoll. 

Section 113 requires the Secretary of Defense to give prior notice 

to Congress of military exercises where construction costs exceed 

$100,000. 

Section 114 limits obligations to no more than 20 percent during 

the last two months of the fiscal year. 

Section 115 permits DOD to make available funds appropriated 

in prior years for new projects authorized during the current session of Congress. 

Section 116 permits the use of expired or lapsed funds to pay the 

cost of supervision for any project being completed with lapsed 

funds. 

Section 117 provides that funds for military construction projects 

are available until the end of the fourth fiscal year following the 

fiscal year in which funds are appropriated, subject to certain conditions. 

Section 118 allows the transfer of expired funds to the ‘‘Foreign 

Currency Fluctuations, Construction, Defense’’ account. This provision has been included in every Military Construction Appropriations Act since 1992. Once transferred these funds become available for obligation until expended. Scorekeeping rule 6 requires 

that extending expired balances be scored as new appropriations in 

the year that they become available. 

Section 119 requires the Secretary of Defense to report annually 

on actions taken during the current fiscal year to encourage other 

member nations of the NATO, Japan, Korea, and United States allies in the Arabian Gulf to assume a greater share of defense costs. 

Section 120 authorizes the transfer of proceeds from ‘‘Base Realignment and Closure Account, Part I’’ to the continuing Base Realignment and Closure accounts. 

Section 121 permits the transfer of funds from Family Housing, 

Construction accounts to the DOD Family Housing Improvement 

Fund. 

Section 122 limits the obligation of funds for Partnership for 

Peace Programs. 

Section 123 requires the Secretary of Defense to notify Congressional Committees sixty days prior to issuing a solicitation for a 

contract with the private sector for military family housing. 

Section 124 provides transfer authority to the Homeowners Assistance Program. 

Section 125 requires that appropriations from this Act be the sole 

source of all operation and maintenance for flag and general officer 

quarter houses and limits the repair on these quarters to $20,000 

per year without notification. 

Section 126 limits funds from being transferred from this appropriations measure to any instrumentality of the United States Government without authority from an appropriation Act. 

26 

Section 127 prohibits funds appropriated for the NATO Security 

Investment Program from being obligated or expended for the purpose of missile defense studies. 

Section 128 requires the Secretary of Defense or any other official of the Department of Defense to respond in writing to a question or inquiry submitted by the chairman or another member of 

the subcommittee within 21 days. 

Section 129 increases the limitation in 10 U.S.C. 2883(g)(1) on 

the amount of budget authority for the privatization of military 

family housing to $1,350,000,000. The section also provides that 

this section shall not be subject to scoring for purposes of the Congressional Budget and Impoundment Control Act of 1974. 

Section 130 designates the fitness center at Homestead Air Reserve Base, Florida, the Sam Johnson Fitness Center in honor of 

the Honorable Sam Johnson. 

HOUSE OF REPRESENTATIVES REPORT REQUIREMENTS

The following items are included in accordance with various requirements of the rules of the House of Representatives. 

CHANGES IN APPLICATION OF EXISTING LAW

Pursuant to clause 3(f)(1) of rule XIII of the Rules of the House 

of Representatives, the following statements are submitted describing the effect of provisions in the accompanying bill that directly 

or indirectly change the application of existing law. 

Language is included in various parts of the bill to continue ongoing activities that require annual authorization or additional legislation, which to date has not been enacted. 

The bill includes a number of provisions which place limitations 

on the use of funds in the bill or change existing limitations and 

which might, under some circumstances, be construed as changing 

the application of existing law. 

Language is included that enables various appropriations to remain available for more than one year for some programs for which 

the basic authority legislation does not presently authorize such extended availability. 

Language is included under Military Construction, Defense-wide, 

which permits the Secretary of Defense to transfer funds to other 

accounts for military construction or family housing. 

Language is included raising the statutory cap on budget authority for privatizing military family housing by $500,000,000. 

Language is included designating a fitness center at Homestead 

Air Reserve Base, Florida. 

DEFINITION OF PROGRAM, PROJECT, AND ACTIVITY

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 following information provides the 

definitions of the terms ‘‘program, project, and activity’’ for appropriations contained in the Military Construction Appropriations 

Act. The term ‘‘program, project, and activity’’ shall include the 

most specific level of budget items, identified in the Military ConVerDate May 21 2004 01:35 Jul 16, 2004 Jkt 094815 PO 00000 Frm 00026 Fmt 6659 Sfmt 6602 E:\HR\OC\HR607.XXX HR607
27 

struction Appropriations Act, 2003, accompanying House and Senate reports, and the conference report of the joint explanatory 

statement of the managers of the committee of conference. 

In carrying out any sequestrations, the Department of Defense 

(DOD) and related agencies shall carry forth the sequestration 

order in a manner that would not adversely affect or alter Congressional policies and priorities established for the DOD and related 

agencies, and no program, project, and activity should be eliminated or reduced to a level of funding that would adversely affect 

DOD’s ability to effectively continue any program, project, and activity. 

APPROPRIATIONS NOT AUTHORIZED BY LAW

Pursuant to clause 3(f)(1) of rule XIII of the Rules of the House 

of Representatives, the following table lists the appropriations in 

the accompanying bill which are not authorized by law: 

28 


Insert graphic folio 31 HR607.008
29 

TRANSFER OF FUNDS

Pursuant to clause 3(f)(2) of rule XIII of the Rules of the House 

of Representatives, a statement is required describing the transfer 

of funds provided in the accompanying bill. Sections 114, 117, 119, 

120, and 123 of the General Provisions, and language included 

under ‘‘Military Construction, Defense-wide’’ provide certain transfer authority. 

CONSTITUTIONAL AUTHORITY

Clause 3(d)(1) of rule XIII of the Rules of the House of Representatives states that: 

Each report of a committee on a bill or joint resolution of 

a public character shall include a statement citing the specific powers granted to the Congress in the Constitution to 

enact the law proposed by the bill or joint resolution. 

The Committee on Appropriations bases its authority to report 

this legislation from Clause 7 of Section 9 of Article I of the Constitution of the United States of America which states: 

No money shall be drawn from the Treasury but in consequence of Appropriations made by law * * * 

Appropriations contained in this bill are made pursuant to this 

specific power granted by the Constitution. 

COMPARISONS WITH BUDGET RESOLUTION

Clause 3(c)(2) of rule XIII of the Rules of the House of Representatives requires an explanation of compliance with section 

308(a)(1)(A) of the Congressional Budget and Impoundment Control 

Act of 1974 (Public Law 93–344), as amended, which requires that 

the report accompanying a bill providing new budget authority contain a statement detailing how that authority compares with the 

reports submitted under section 302 of the Act for the most recently agreed to concurrent resolution on the budget for the fiscal 

year from the Committee’s section of 302(a) allocation. 

[In millions of dollars] 

302(b) allocation This bill 1

Budget authority Outlays Budget authority Outlays 

Discretionary .......................................................... 10,003 10,015 11,208 10,149 

Mandatory ............................................................... 0 0 0 0 

1 The amount provided in this bill is $1,205 million above the 302(b) suballocation due to a Congressional Budget Office (CBO) interpretation of the scoring of section 129. This section does not actually appropriate funds; appropriated amounts in this bill are within the 302(b) 

suballocation. The Committee is working with concerned parties to address CBO’s scoring interpretation. 

FIVE-YEAR PROJECTION OF OUTLAYS

In compliance with section 308(a)(1)(B) of the Congressional 

Budget and Impoundment Control Act of 1974 (Public Law 93– 344), as amended, the following table contains five-year projections 

associated with the budget authority provided in the accompanying 

bill: 

[In millions of dollars] 

Budget authority, fiscal year 2005 ....................................................... $11,208 

30 

Outlays: 

2005 ................................................................................................. 2,592 

2006 ................................................................................................. 4,259 

2007 ................................................................................................. 3,226 

2008 ................................................................................................. 1,525 

2009 and beyond ............................................................................. 4,008 

The bill will not affect the levels of revenues, tax expenditures, 

direct loan obligations, or primary loan guarantee commitments 

under existing law. 

FINANCIAL ASSISTANCE TO STATE AND LOCAL GOVERNMENTS

In accordance with section 308(a)(1)(C) of the Congressional 

Budget and Impoundment Control Act of 1974 (Public Law 93–

344), as amended, the financial assistance to State and local governments is as follows: 

[In millions of dollars] 

New budget authority ............................................................................ 0 

Fiscal year 2001 outlays resulting therefrom ...................................... 0 

STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES

Pursuant to clause 3(c)(4) of rule XIII of the Rules of the House 

of Representatives, the following is a statement of general performance goals and objectives for which this measure authorizes funding: 

The Committee on Appropriations considers program performance, including a program’s success in developing and attaining 

outcome-related goals and objectives, in developing funding recommendations. 

STATE LIST

The following is a complete listing, by State and country, of the 

Committee’s recommendations for military construction and family 

housing projects: 

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