66–566 

112TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 1st Session 112–94 

MILITARY CONSTRUCTION, VETERANS AFFAIRS, AND 

RELATED AGENCIES APPROPRIATIONS BILL, 2012 

MAY 31, 2011.—Committed to the Committee of the Whole House on the State of 

the Union and ordered to be printed 

Mr. CULBERSON, from the Committee on Appropriations, 

submitted the following 

R E P O R T 

together with 

MINORITY VIEWS 

[To accompany H.R. 2055] 

The Committee on Appropriations submits the following report in 

explanation of the accompanying bill making appropriations for 

military construction, the Department of Veterans Affairs, and related agencies for the fiscal year ending September 30, 2012, and 

for other purposes. 

CONTENTS 

Page 

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

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

Comparative Statement of New Budget Authority ............................................... 4 

Management and Oversight Initiatives ................................................................. 13 

Department of Defense: 14 

Military Construction ....................................................................................... 14 

NATO Security Investment Program .............................................................. 25 

Family Housing Construction and Operation and Maintenance .................. 26 

Chemical Demilitarization Construction, Defense-Wide ............................... 29 

Department of Defense Base Closure Account 1990 ..................................... 29 

Department of Defense Base Closure Account 2005 ..................................... 29 

Administrative Provisions ................................................................................ 30 

Department of Veterans Affairs: 32 

Overview ............................................................................................................... 32 

Veterans Benefits Administration ...................................................................... 33 

Veterans Health Administration ........................................................................ 36 

National Cemetery Administration .................................................................... 43 

Departmental Administration ............................................................................. 44 

Administrative Provisions ................................................................................... 54 


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Related Agencies: 57 

American Battle Monuments Commission ..................................................... 57 

U.S. Court of Appeals for Veterans Claims .................................................... 58 

Cemeterial Expenses, Army ............................................................................ 58 

Armed Forces Retirement Home ..................................................................... 59 

General Provisions ................................................................................................... 60 

Changes in Application of Existing Law ................................................................ 61 

Appropriations Not Authorized by Law ................................................................. 64 

Transfer of Funds .................................................................................................... 66 

Rescissions ................................................................................................................ 67 

Constitutional Authority ......................................................................................... 67 

Comparison With the Budget Resolution .............................................................. 68 

Five-Year Projection of Outlays .............................................................................. 68 

Assistance to State and Local Governments ......................................................... 68 

Statement of General Performance Goals and Objectives .................................... 68 

Ramseyer Rule ......................................................................................................... 68 

Full Committee Votes .............................................................................................. 70 

Disclosure of Earmarks and Congressionally Directed Spending Items ............. 71 

State Project List ..................................................................................................... 71 

Minority Views ......................................................................................................... 89 

PURPOSE OF THE BILL

The purpose of the bill is to support our military and their families and provide the benefits and medical care that our veterans 

have earned for their service. This is accomplished through the programs funded in the bill, which provide the facilities and infrastructure needed to house, train, and equip our military personnel 

to defend this Nation, both in the United States and abroad; provide the housing and military community infrastructure that supports a good quality of life for them and their families; and allow 

the military to maintain an efficient and effective base structure. 

The bill also funds programs to ensure that all veterans receive the 

benefits and medical care that they have earned as a result of the 

sacrifices they have made in their service to our country. Finally, 

the bill funds four related agencies that provide support to our Nation’s heroes: the American Battle Monuments Commission, 

Cemeterial Expenses, Army (including Arlington National Cemetery), the United States Court of Appeals for Veterans Claims, and 

the Armed Forces Retirement Home. 

SUMMARY OF COMMITTEE RECOMMENDATION

The Committee recommendations continue necessary support for 

servicemembers and veterans, while at the same time the Committee is keenly aware of the dire financial situation the Nation 

faces. The scale of the Nation’s debt and the continuing annual deficit weighed heavily on the Committee as it formulated this bill. A 

driving force behind the Committee recommendations is the need 

to do all that we can to reduce the deficit and balance the budget 

of the United States. Where it was prudent, the Committee recommendation rescinds prior year funding that is no longer needed 

for the purpose for which it was appropriated while leaving sufficient resources to close out contracts. We took the action of deleting 

planning funds for construction projects that would commit future 

Congresses to exceedingly large expenses, and we have included 

provisions which will ensure the funding appropriated is spent in 

a wise manner. We have included direction to the Department of 

Defense and the Department of Veterans Affairs to report on the 

feasibility of structuring contracts in such a way as to encourage 


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efficiency and economy, by returning to contractors a portion of any 

savings they are able to generate as they execute construction contracts, while returning a majority of those savings to the Treasury 

to reduce our dependence on debt. The Committee recommends $142,032,269,000 in budget authority for the fiscal year 2012 programs and activities funded in the 

bill. In addition, advance appropriations of $52,541,000,000 are 

provided for fiscal year 2013 medical programs of the Department 

of Veterans Affairs. The fiscal year 2012 recommendation is an increase of $3,308,306,000 above the fiscal year 2011 enacted level 

and $1,252,737,000 below the President’s request. Included in this 

amount is $69,497,269,000 in mandatory budget authority and 

$72,535,000,000 in discretionary budget authority. 

The recommendation reflects the Committee’s continued commitment to our servicemembers and veterans and to their families. 

The total funding level for military construction is $14,014,047,000, 

a 15.7 percent decrease below the fiscal year 2011 enacted level. A 

significant portion of this decrease is attributed to the reduction in 

BRAC 2005 appropriation as that program completes its requirements. The overall level of funding supports the servicemen and 

women and their families who are making sacrifices during this 

time of war. The programs funded in the bill for the Department 

of Defense address the numerous challenges we have asked our 

military to accomplish simultaneously. These funds support continued cleanup of military bases closed during previous Base Realignment and Closure rounds, resource the military’s global re-stationing plan, and ensure that our military personnel and their families’ quality of life is preserved within these plans. 

The total funding level available for fiscal year 2012 for the De- partment of Veterans Affairs is $127,796,852,000, an increase of 

5.8 percent over the fiscal year 2011 enacted level. The recommendation provides funding increases for several mandatory 

veteran benefits programs, as authorized by current law. In addition to appropriations for fiscal year 2012, the Committee recommendation includes $52,541,000,000 in advance appropriations 

for fiscal year 2013 for the three health care accounts of the Department. 

The following table compares amounts recommended in the bill 

to the President’s request and amounts appropriated in fiscal year 

2011: 


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MANAGEMENT AND OVERSIGHT INITIATIVES

The Committee believes the effective stewardship of taxpayer 

dollars is of the highest priority. In the interest of eliminating 

waste, fraud, and abuse in Federal programs, the Committee has 

and will continue to use public hearings, briefings and information 

requests, and reviews by the Government Accountability Office and 

the Inspectors General to promote strong financial and program 

management, oversight and leadership at the Department of Defense, the Department of Veterans Affairs, and other agencies 

under the jurisdiction of this bill. 

The fiscal year 2012 appropriations Act and the accompanying 

report address management challenges of the Federal agencies 

funded herein, including directives to strengthen financial and program management, eliminate redundancy, and improve implementation and oversight of initiatives that support the mission of this 

bill. The Committee will use every means at its disposal to reduce 

mismanagement that results in waste, fraud, and abuse. 

Department of Defense.—In addition to the notification and reporting requirements for military construction programs contained 

in Title 10, United States Code, the Committee’s recommendations 

include several provisions requiring the Department of Defense to 

report on various aspects of military construction programs, or to 

provide notification to the Committee when certain actions are 

taken. The Committee also retains prior approval authority for any 

reprogramming of funds exceeding a specific threshold. 

Department of Veterans Affairs (VA).—With the $127,796,852,000 

provided for the VA in this bill and the 1.4 percent increase in the 

number of veterans seeking VA medical services, the Committee 

believes it is important to strengthen its tools to monitor spending 

as well as the skills and operating procedures of the VA workforce. 

The following initiatives demonstrate the Committee’s oversight 

focus: 

• Strengthening contracting oversight. The bill includes 

$20,000,000 to strengthen VA acquisitions management. While VA 

contract funding has grown substantially since 2001, the capacity 

of the acquisition workforce has not kept pace, leading to increased 

risk of higher costs and unsuccessful contract outcomes. This funding supports an increase in acquisition personnel and invests in appropriate training and technology to make the workforce more effective in managing taxpayer dollars. 

• Claims backlog reduction. The Department’s annual claims receipts are expected to grow from 1,192,346 in 2010 to 1,325,953 in 

2012, an increase of over 11 percent. While the Department anticipates an initial increase in the average time to process a claim due 

to increases in the number of claims being filed, as previously hired 

personnel become more proficient and better trained, the Department expects to meet its strategic target of 125 days to process 

claims by 2015. Deploying leading-edge, powerful 21st Century IT 

solutions to create a smart, paperless claims system which simplifies and improves claims processing for timely and accurate decisions the first time is key to achieving this goal, and the Committee has provided the funding necessary to develop these IT solutions. 


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• Claims processing review. In order to address the problems and 

delays the VA encounters in processing claims, the Committee has 

directed its Surveys and Investigations staff to review the process 

the Social Security Administration uses to administer its disability 

claims processing to determine whether there are efficiencies and 

best practices that the VA could adapt to improve disability claims 

processing. 

• Misallocation of medical services funding. The Committee has 

heard concerns from numerous Members that the VA retains too 

much of the funding provided by Congress at headquarters and at 

the regional health networks instead of allowing it to flow through 

to the medical centers. The Committee is investigating the allocation process VA uses, mandating that VA provide information annually identifying the use of all funding retained at headquarters, 

as well as the funding retained by each network and for which purposes. 

• Bid savings control. The VA has considerable flexibility in allocating funding for major construction projects. Once funding is appropriated for a particular construction project, the Committee has 

received little or no useful information about the ongoing status of 

the project, including whether any bid savings have been realized 

by the VA when contracts are awarded. The Committee includes 

bill language requiring the VA to notify the Committee of all bid 

savings totaling $5,000,000 or more, or five percent, whichever is 

less, within 14 days of obligation. Additionally, the VA is not permitted to make any change in the scope of major construction 

projects. 

TITLE I 

DEPARTMENT OF DEFENSE 

MILITARY CONSTRUCTION OVERVIEW

Fiscal year 2011 enacted level 1 (including rescissions) .......... $16,622,672,000 

Fiscal year 2012 budget request ............................................... 14,766,047,000 

Committee recommendation in the bill (including rescissions) ........................................................................................ 14,014,047,000 

Comparison with: 

Fiscal year 2011 enacted level ........................................... (2,608,625,000) 

Fiscal year 2012 budget request ........................................ (752,000,000) 1Does not include the effect of a Government-wide .22 percent across the board cut. 

Military construction accounts provide funds for new construction, construction improvements, planning and design, and host nation support. Projects funded by these accounts include facilities for 

operations, training, maintenance, research and development, supply, medical care, and force protection, as well as unaccompanied 

housing, utilities infrastructure, and land acquisition. 

The Committee recommends a total appropriation of 

$14,014,047,000 for Military Construction, a decrease of 

$2,608,625,000 from the fiscal year 2011 enacted level and a decrease of $752,000,000 below the budget request. 

Quadrennial Defense Review/Nuclear Posture Review.—The 

Committee notes that the reports of the 2010 Quadrennial Defense 

Review (QDR) and the Nuclear Posture Review (NPR) contained a 

number of new programs and initiatives with potential impact on 


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military construction requirements. Among these programs and initiatives are: 

—The creation of a new U.S. Cyber Command, a sub-unified 

command under U.S. Strategic Command; 

—Increasing the ‘‘resiliency’’ of forward posture and overseas 

base infrastructure, including the ‘‘hardening’’ of key facilities; 

—The full ‘‘normalization’’ of tours for U.S. Forces Korea, requiring infrastructure to accommodate as many as 14,000 military families, compared to less than 2,000 prior to adoption of 

this policy; 

—The implementation of a new phased, adaptive approach to 

ballistic missile defense; 

—The stand-up of two new Army combat aviation brigades, 

and the conversion of one heavy brigade combat team to a 

Stryker brigade combat team by 2013; 

—The exploration of potential new modes to base the Minuteman III Intercontinental Ballistic Missile force; and 

—The creation of National Guard Homeland Response 

Forces in each of the ten Federal Emergency Management 

Agency regions. 

The Committee believes it is essential to ensure that the initiatives called for by the QDR/NPR are matched by the necessary resources in DOD budget plans, and therefore directs the Secretary 

of Defense to include a report along with the fiscal year 2013 military construction budget request describing how proposed QDR/ 

NPR programs and initiatives are funded in the accompanying Future Years Defense Program (FYDP) for military construction, including dollar amounts associated with specific projects. The report 

shall also include a description of any ongoing studies or reviews 

specifically concerning military construction that follow directly 

from QDR/NPR decisions or proposals, including estimated completion dates. This report shall be submitted to the congressional defense committees no later than 15 days following submission of the 

Administration’s budget request for fiscal year 2013. 

Guam.—The Committee recommends $155,921,000, the budget 

request for construction in support of the realignment of Marine 

Corps forces from Okinawa to Guam, in addition to $147,600,000 

in other military construction projects on the island. The Committee remains supportive of the realignment of Marine Corps 

forces from Okinawa to Guam. At the same time, the Committee 

has serious concerns about the Department of Defense’s (DOD) 

ability to adequately fund and complete construction on time and 

within budget. 

The Committee believes that the Defense Environment Impact 

Study (DEIS) has very limited value with respect to providing a realistic depiction of how the Guam buildup would proceed. The 

DEIS does not formally consider any alternatives that would extend construction and/or the relocation of personnel and assets past 

2014; rather, the DEIS concedes that ‘‘Although the desired completion date for Marine forces relocation is by 2014, the construction would likely continue to 2016.’’ Even this timeline is likely to 

prove too optimistic; while the DEIS assumes that ‘‘2014 is the last 

year that any new construction would begin’’, the Navy’s Future 

Years Defense Plan (FYDP) clearly shows significant military construction (including unspecified quality of life and base operations 


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facilities) associated with the Marine forces relocation programmed 

for fiscal year 2015, likely pushing the completion date for construction to 2017 and beyond. This fundamental disconnect on the 

target completion date between the U.S.-Japan agreement, the 

DEIS, and the FYDP leaves doubt regarding the most realistic and 

feasible timeline for the Guam buildup. 

The EPA has raised a number of serious concerns regarding the 

quality of the DEIS, especially in relation to the cumulative impacts of the complex and interrelated actions needed not only to 

complete the relocation of Marine forces, but to provide transient 

berthing for an aircraft carrier and accommodate the expected influx of a large number of construction workers and associated personnel to execute the buildup. 

The buildup of Guam is not a ‘‘military problem’’; its main feature, the relocation of Marine Corps forces from Okinawa, results 

from a bilateral agreement negotiated between the U.S. and Japan 

governments, and therefore DOD should not be isolated as the sole 

source of funding for the necessary improvements to physical and 

human capital in Guam. The Committee notes with concern that 

the Administration has sent mixed signals on this issue. 

The Committee believes that while DOD should have the greatest share of leadership for identifying and addressing island-wide 

impacts, non-DOD agencies must also be provided directly with the 

budgetary resources necessary to assist the people of Guam with 

‘‘outside the fence line’’ problems. To date, however, much of the 

non-DOD work appears to be mired in the ‘‘planning’’ or ‘‘under 

consideration’’ phase. The Committee agrees with DOD, as expressed through the DEIS, that the rate of military construction 

execution for the Guam buildup should be seen as a tool to mitigate 

or avoid harmful and potentially irreparable consequences. 

Charter Schools.—Department of Defense installations throughout the United States are struggling with the issue of dependent 

education for K–12 students. Frequent moves by military families 

highlight the differences and inequities among various state public 

school systems. An increasing number of families are opting for private or home schooling to compensate for lack of public education 

quality and to maintain continuity in their child’s progress. The 

2008 Quadrennial Review of Military Compensation (Volume II: 

Deferred and Noncash Compensation) (QRMC) from the U.S. Department of Defense, an assessment of the competitiveness of benefits, notes in a section on education for dependents that parents 

should be allowed to start charter schools at military installations 

and initiate them in the ‘‘same way that civilians can under state 

law.’’ ‘‘Offering a charter school option in areas with less desirable 

local schools would give parents stationed in those locations another choice in addition to the private school or home schooling options,’’ the report states. The Committee fully supports the QRMC 

and urges the Services to develop and publicize procedures for establishing Charter Schools at installations that are not supported 

adequately by the local public school system. 

The Committee directs the Comptroller General of the United 

States to conduct a study of charter schools located on domestic 

and international military installations. This report shall include a 

detailed description of charter schools currently in operation on 

military installations, identify the potential challenges of develVerDate Mar 15 2010 00:19 Jun 01, 2011 Jkt 066566 PO 00000 Frm 00016 Fmt 6659 Sfmt 6602 E:\HR\OC\HR094.XXX HR094

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oping and implementing charter schools on additional military installations, and examine how oversubscribed enrollment would affect the continuity of education for dependents of members of the 

Armed Forces. The Comptroller General shall present the report to 

the Committees on Appropriations of both Houses of Congress no 

later than December 31, 2011. 

Facilities management, life-cycle costs, and construction method 

alternatives.—The Committee believes that the military construction program best serves both our military personnel and the taxpayers when projects are open to competitive bidding from contractors representing the widest possible range of construction methods. To that end, the Committee urges the Department of Defense 

and the execution agents for military construction, principally the 

Army Corps of Engineers and the Naval Facilities Engineering 

Command, to ensure that requests for proposals or qualifications 

do not arbitrarily foreclose, discourage, or privilege any type of construction method. The Committee continues to encourage a level 

playing field for both traditional construction methods and alternative methods such as permanent modular construction. The Committee also encourages DOD to evaluate the regular use of carbon 

fiber grid precast concrete technology in military construction 

projects. 

The Committee believes that the best way to ensure a level playing field is to set and communicate clear standards and expectations regarding life-cycle cost management for military construction, backed by rigorous, objective analysis. The Committee understands that situations may arise in which objectives other than lifecycle cost may take precedence; for example, speed of construction 

may be a predominant concern in order to meet time-limited goals 

such as base realignments, force structure growth, new system beddown, or urgent operational needs. At the same time, the Committee is concerned by the recent report from the Government Accountability Office (GAO–10–436) indicating that varying service 

attitudes toward the life-cycle costs of different construction methods were based more on pre-formed opinions, personal experiences, 

and anecdotal evidence rather than quantitative information or 

analyses. The Committee therefore urges DOD and the services to 

conduct further research regarding comparative life-cycle costs for 

differing types of construction, establish clear goals and benchmarks, and ensure these standards are communicated to contracting officials. Until such an empirical basis is established, the 

Committee urges DOD and the services to carefully reconsider 

blanket use of any new life-cycle approaches that depart from prior, 

standard practices. 

The Committee also notes that over the past three years, the 

Deputy Under Secretary of Defense for Installations and Environment (DUSD I&E) has indicated efforts underway to shift from a 

measurement of the recapitalization rate of DOD facilities in terms 

of years to one based on the actual condition of facilities and mission priority. Under the 2007 Defense Installations Strategic Plan, 

this new methodology was to have been implemented by fiscal year 

2010, but recent DUSD I&E testimony indicated this methodology 

was still under development. The Committee therefore directs the 

DUSD I&E to provide a status update on the development of this 


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methodology and its implementation in the military construction 

program no later than January 30, 2012. 

Bid savings.—The Committee has ascertained from cost variation 

notices required by 10 U.S.C. 2853 that DOD continues to have bid 

savings on previously appropriated military construction projects. 

The Committee’s recommendations therefore include rescissions to 

the Army, Navy, Air Force and Defense-Wide military construction 

accounts. The Committee directs the Government Accountability 

Office to review all military construction bid savings and report to 

the Committee by January 29, 2012. 

Incremental funding.—The Committee repeatedly has stated that 

while projects should be fully funded or separated into stand-alone 

phases where practicable, incremental funding should remain an 

option when it makes fiscal and programmatic sense. In some 

cases, the phased approach can drive up costs by requiring inefficient designs and separate bids that leave subsequent phases vulnerable to construction price inflation. However, the Committee 

will continue to exercise its prerogative to recommend incremental 

funding when circumstances dictate. The Committee therefore recommends incremental funding for the following five projects included in the Administration’s request: Aviation Complex, Fort 

Wainwright, Alaska; Mountainview Operations Facility, Buckley 

Air Force Base, Colorado; Ambulatory Care Center, Joint Base Andrews, Maryland; Hospital Replacement, Fort Bliss, Texas; and 

Guam Strike Fuel Systems Maintenance Hangar, Joint Region 

Marianas, Guam. 

Facilities Sustainment, Restoration and Modernization 

(FSRM).—The Department is directed to continue describing on 

form 1390 the backlog of FSRM requirements at installations with 

future construction projects. For troop housing requests, form 1391 

should describe any FSRM 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 metric measurement. Rules for funding repairs of facilities under the Operation and Maintenance accounts are described 

below: 

(1) components of the facility may be repaired by replacement. Such replacement can be up to current standards or 

codes; 

(2) interior arrangements and restorations may be included 

as repair; 

(3) 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; and 

(4) 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. The 

Committee strongly encourages the Services and Defense agencies to indicate the plant replacement value of the facility to 

be repaired on each such notification. 

Quarterly summary of notifications.—The Committee directs the 

services and the Office of the Secretary Defense (on behalf of itself 


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and Defense agencies) to continue to submit a quarterly report listing all notifications that have been submitted to the Committees 

during the preceding three-month period. 

Transfer of funds to and from the Foreign Currency Fluctuations, 

Construction, Defense Account.—The Committee directs DOD to 

submit a quarterly report to the Committees on Appropriations of 

both Houses of Congress on the transfer of funds from military construction and family housing accounts to the Foreign Currency 

Fluctuations, Construction, Defense account. The report shall specify the amount transferred to the Foreign Currency account from 

each military construction and/or family housing account, and all 

other accounts for which an appropriation is provided in this Act, 

during the preceding fiscal quarter, and the amounts transferred 

from the Foreign Currency account to the above accounts during 

the same period. This report shall be submitted no later than 30 

days after the close of each fiscal quarter. In addition, the Department of Defense shall notify the Committees on Appropriations of 

both Houses of Congress within 7 days of transferring any amount 

in excess of $10,000,000 to or from the Foreign Currency account. 

Reprogramming Guidelines.—The following reprogramming 

guidelines apply for all military construction and family housing 

projects. A project or account (including the sub-elements of an account) which has been specifically reduced by the Congress in acting on the budget request is considered to be a Congressional interest item and as such, prior approval is required. Accordingly, no reprogramming to an item specifically reduced below the threshold 

by the Congress is permitted, except that the Department of Defense may seek reprogramming for appropriated increments. 

The reprogramming criteria that apply to military construction projects (25 percent of the funded amount or $2,000,000, whichever 

is less) continue to apply to new housing construction projects and 

to improvements over $2,000,000. To provide the services the flexibility to proceed with construction contracts without disruption or 

delay, the costs associated with environmental hazard remediation 

such as asbestos removal, radon abatement, lead-based paint removal or abatement, and any other legislated environmental hazard remediation may be excluded, if such remediation requirements 

could not be reasonably anticipated at the time of the budget submission. This exclusion applies to projects authorized in this budget 

year, as well as projects authorized in prior years for which construction has not been completed. Planning and design costs associated with military construction and family housing projects may 

also be excluded from these guidelines. In instances where prior 

approval to a reprogramming request for a project or account has 

been received from the Committees on Appropriations of both 

Houses of Congress, the adjusted amount approved becomes the 

new base for any future increase or decrease via below-threshold 

reprogramming (provided that the project or account is not a Congressional interest item as defined above). 

In addition to these guidelines, the services are directed to adhere to the guidance for military construction reprogramming actions and notifications, including the pertinent statutory authorities contained in DOD Financial Management Regulation 7000.14– 

R and relevant updates and policy memoranda. The Committee further encourages the Office of the Director of National Intelligence 


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to use a format similar to that used by the Office of the Secretary 

of Defense to submit reprogramming requests. 

Test and Training Range Engineering Labs.—The Committee believes funds for the construction of test and training range engineering labs, where possible, should be moved forward in the budgeting process in order to realize cost benefits to fulfill program obligations in a timely, cost-efficient manner. This approach should be 

used where the current project requirements have exceeded existing facility capability and the lack of proper laboratory space will 

lead to an inability to meet the Department of Defense’s sponsored 

requirements. 

District Energy Systems.—The Committee recognizes that many 

military installations currently operate district energy systems, 

which connect multiple buildings through an underground piping 

network that carries hot and cold water or steam and achieve at 

least twice the fuel efficiency of traditional heating and cooling systems. The Department of Defense shall conduct a study to inventory which of its current and planned military installations could 

reduce energy costs or increase security of energy supply by building or expanding district energy systems and by installing combined heat and power technologies. This study shall include a list 

of priority installations to receive energy infrastructure investments and may include energy life cycle analyses. The results of 

the foregoing study shall be submitted to the Committees on Appropriations of both Houses of Congress by January 30, 2012. Further, increased investment in district energy systems shall be pursued as a strategy for the Department of Defense to achieve the 

goals of pollution reduction and environmental sustainability outlined in Executive Order 13514—Federal Leadership in Environmental, Energy, and Economic Performance. 

Child Development Centers.—The Committee encourages the Department of Defense to reaffirm its commitment to providing exceptional child care facilities on all domestic and international military 

installations. The Committee also encourages the Department of 

Defense to ensure that Child Development Centers located on military installations offer a safe childcare environment and meet professional standards for early childhood education. 

Base Realignment and Closure.—The Committee recognizes the 

unique strain placed upon state and local military communities, 

municipalities, and jurisdictions through the Base Realignment 

and Closure (BRAC) process. The Committee also recognizes that 

under U.S. Census rules established in response to the Vietnam 

War, military personnel stationed overseas were not counted in the 

2010 Census as residents of the states and communities in which 

they were stationed. Consequently, because many federal and state 

programs use funding formulas tied to the decennial census, this 

rule could deprive military communities, where servicemembers 

and their families live a majority of the time, of federal funding 

they are justly entitled to receive. The Committee encourages the 

Department of Defense to work closely with local municipalities 

and jurisdictions to help minimize the impact of both policies on 

their ability to provide appropriate infrastructure and resources to 

best meet the needs of U.S. military servicemembers and their families. 


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Contract Structures and Management.—The Committee believes 

that structuring contracts and employee compensation with incentives to reduce cost by permitting retention of a share of savings 

has the potential to generate substantial economies. The Committee directs the Department of Defense to report to the Committee on the structure of its contracts for military construction, including the portion of contracts awarded on a fixed-price basis, 

those awarded on a cost-plus fixed fee basis, and all other contract 

structures used by the Department for its construction programs. 

For all contracts, the Department is directed to report on incentives 

that are included in the contracts to reduce the cost to the government and any financial incentives included for completion of contracts ahead of schedule or under cost. If such incentives do not 

currently exist, the Department is to report on the feasibility of beginning such a program. 

Missile Defense within U.S. Pacific Command Area of Responsibility.—Obstacles ranging from passive to active hostility are challenges to the efforts by U.S. Pacific Command (PACOM) to maintain security across the large Asia-Pacific region. Potential and existing threats from North Korea and China make the command’s 

focus on maintaining security throughout the region a top priority. 

Security in the region also includes missile defense of our allies. 

Currently there is a missile defense presence of patriot missile batteries based in South Korea and early warning information is 

shared with our allies. With Command’s responsibility for such a 

vast region and the planned increase of Marines Corps personnel 

on Guam, the Committee directs the Department of Defense to submit a report within 60 days after enactment of this Act to the Committees on Appropriations of both Houses of Congress on what additional missile defense assets would be required to support continued security of the region from existing threats. 

MILITARY CONSTRUCTION, ARMY

(INCLUDING RESCISSIONS)

Fiscal year 2011 enacted level ........................................................... $3,524,598,000 

Fiscal year 2012 budget request ....................................................... 3,235,991,000 

Committee recommendation in the bill ............................................ 3,041,491,000 

Comparison with: 

Fiscal year 2011 enacted level ................................................... (483,107,000) 

Fiscal year 2012 budget request ................................................ (194,500,000) 

The Committee recommends an appropriation of $3,041,491,000 

for Military Construction, Army, a decrease of $483,107,000 from 

the fiscal year 2011 enacted level and a decrease of $194,500,000 

below the budget request. 

The Committee recommendation includes a reduction that totals 

$94,500,000 from three projects: An incremented Aviation Complex 

Phase III at Ft. Wainwright, Alaska due to lateness of the appropriations FY 2011 process and no funding provided for two commissary type facilities in Germersheim, Germany requested in the 

fiscal year 2012 submission. The reduction also includes a rescission from prior year appropriations Acts of $100,000,000. 

Tour Normalization, Korea.—The Department of Defense has 

taken on an arduous and expensive task to normalize deployments 

to Korea by establishing a two-year tour for single members of the 

service and three-year tours for married servicemembers to include 


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their families. The task will require great investment in military 

construction for schools, family housing and child development centers just to name a few. The Committee is concerned that this investment may be an expense that the United States should not 

incur. The Committee directs the Secretary of Defense to report to 

the Committee on Appropriations within 60 days of enactment of 

this Act the total cost and plan for Tour Normalization in Korea. 

MILITARY CONSTRUCTION, NAVY AND MARINE CORPS

(INCLUDING RESCISSIONS)

Fiscal year 2011 enacted level ........................................................... $3,242,561,000 

Fiscal year 2012 budget request ....................................................... 2,461,547,000 

Committee recommendation in the bill ............................................ 2,436,547,000 

Comparison with: 

Fiscal year 2011 enacted level ................................................... (806,014,000) 

Fiscal year 2012 budget request ................................................ (25,000,000) 

The Committee recommends an appropriation of $2,436,547,000 

for Military Construction, Navy and Marine Corps, a decrease of 

$806,014,000 from the fiscal year 2011 enacted level and a decrease 

of $25,000,000 below the budget request. 

The Committee recommendation includes a rescission from prior 

year appropriations Acts of $25,000,000. 

MILITARY CONSTRUCTION, AIR FORCE

(INCLUDING RESCISSIONS)

Fiscal year 2011 enacted level ........................................................... $985,295,000 

Fiscal year 2012 budget request ....................................................... 1,364,858,000 

Committee recommendation in the bill ............................................ 1,247,358,000 

Comparison with: 

Fiscal year 2011 enacted level ................................................... 262,063,000 

Fiscal year 2012 budget request ................................................ (117,500,000) 

The Committee recommends an appropriation of $1,247,358,000 for Military Construction, Air Force, an increase of $262,063,000 

above the fiscal year 2011 enacted level and a decrease of 

$117,500,000 below the budget request. 

The Committee recommendation includes a reduction that totals 

$85,500,000 from two projects: Strike Fuel Maintenance Facility at 

Andersen AFB, Guam and F–35 AGE Facility at Nellis AFB, Nevada incremented due to lateness of the appropriations FY 2011 

process. The reduction also includes a rescission from prior year 

appropriations Acts of $32,000,000. 

MILITARY CONSTRUCTION, DEFENSE-WIDE

(INCLUDING TRANSFER OF FUNDS AND RESCISSIONS)

Fiscal year 2011 enacted level ........................................................... $2,724,562,000 

Fiscal year 2012 budget request ....................................................... 3,848,757,000 

Committee recommendation in the bill ............................................ 3,533,757,000 

Comparison with: 

Fiscal year 2011 enacted level ................................................... 809,195,000 

Fiscal year 2012 budget request ................................................ (315,000,000) 

The Committee recommends an appropriation of $3,533,757,000 

for Military Construction, Defense-Wide, an increase of 

$809,195,000 above the fiscal year 2011 enacted level and a decrease of $315,000,000 below the budget request. 


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The Committee recommendation includes a reduction that totals 

$183,600,000 from three projects: Ft. Bliss Hospital Phase IIIA, 

Texas; Ambulatory Care Center Phase I at Andrews AFB, Maryland and Mountainview Operations Facility at Buckley AFB, Colorado incremented due to lateness of the appropriations FY 2011 

process. The reduction also includes a rescission from prior year 

appropriations Acts of $131,400,000 for unobligated balances in 

planning and design, contingency construction and bid savings. 

Transfer of Funds.—The accompanying bill provides transfer authority to the Secretary of Defense to allow the transfer of funds 

to such appropriations of the Department of Defense available for 

military construction or family housing as the Secretary may designate. 

Department of Defense (DOD) schools recapitalization.—The Committee commends the Department of Defense for its commitment to 

funding the recapitalization of more than half of its dependent 

schools by fiscal year 2015. The Committee expects that this funding will contribute greatly to the quality of life of military families. 

A comprehensive assessment of DOD dependent schools and construction requirements directed by the Committee in House Report 

110–775 indicated that 149 of 189 schools had facilities with an 

overall condition rating of either Q3 (poor) or Q4 (failing) and required significant recapitalization efforts to eliminate space shortfalls and temporary facilities. The Committee recommends 

$483,302,000, the same as the budget request, for school construction activities and strongly encourages the Department to sustain 

and, if possible within the constraints of funding and executability, 

to accelerate this important initiative. 

MILITARY CONSTRUCTION, ARMY NATIONAL GUARD

Fiscal year 2011 enacted level ........................................................... $873,664,000 

Fiscal year 2012 budget request ....................................................... 773,592,000 

Committee recommendation in the bill ............................................ 773,592,000 

Comparison with: 

Fiscal year 2011 enacted level ................................................... (100,072,000) 

Fiscal year 2012 budget request ................................................ – – – 

The Committee recommends an appropriation of $773,592,000 for 

Military Construction, Army National Guard, a decrease of 

$100,072,000 from the fiscal year 2011 enacted level and the same 

as the budget request. 

Energy Security.—The Committee strongly encourages the Army 

National Guard to increase the energy security and environmental 

sustainability of its operations to reduce costs and protect mission 

continuity. The Committee encourages the Army National Guard to 

establish at least one pilot facility for the purpose of demonstrating 

the integration of advanced energy security and environmental protection systems, including geothermal, solar, district heating and 

cooling and water recycling. 

Enforcement of Border Security.—Recognizing the need to bolster 

resources for the enforcement of border security, the Committee encourages the Army National Guard and the Air National Guard to 

consider, design, and construct facilities adjacent to our southwestern border that will support National Guard activities and 

house and support defense assets used by Customs and Border Protection and other law enforcement agencies for the terrestrial, marVerDate Mar 15 2010 00:19 Jun 01, 2011 Jkt 066566 PO 00000 Frm 00023 Fmt 6659 Sfmt 6602 E:\HR\OC\HR094.XXX HR094

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itime, and aerial surveillance of those borders, to include aircraft 

hangars suitable for unmanned aerial systems. 

MILITARY CONSTRUCTION, AIR NATIONAL GUARD

Fiscal year 2011 enacted level ........................................................... $194,986,000 

Fiscal year 2012 budget request ....................................................... 116,246,000 

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

Comparison with: 

Fiscal year 2011 enacted level ................................................... (78,740,000) 

Fiscal year 2012 budget request ................................................ – – – 

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

Military Construction, Air National Guard, a decrease of 

$78,740,000 below the fiscal year 2011 enacted level and the same 

as the budget request. 

MILITARY CONSTRUCTION, ARMY RESERVE

Fiscal year 2011 enacted level ........................................................... $318,175,000 

Fiscal year 2012 budget request ....................................................... 280,549,000 

Committee recommendation in the bill ............................................ 280,549,000 

Comparison with: 

Fiscal year 2011 enacted level ................................................... (37,626,000) 

Fiscal year 2012 budget request ................................................ – – – 

The Committee recommends an appropriation of $280,549,000 for 

Military Construction, Army Reserve, a decrease of $37,626,000 

below the fiscal year 2011 enacted level and the same as the budget request. 

MILITARY CONSTRUCTION, NAVY RESERVE

Fiscal year 2011 enacted level ........................................................... $61,557,000 

Fiscal year 2012 budget request ....................................................... 26,299,000 

Committee recommendation in the bill ............................................ 26,299,000 

Comparison with: 

Fiscal year 2011 enacted level ................................................... (35,258,000) 

Fiscal year 2012 budget request ................................................ – – – 

The Committee recommends an appropriation of $26,299,000 for 

Military Construction, Navy Reserve, a decrease of $35,258,000 

below the fiscal year 2011 enacted level and the same as the budget request. 

MILITARY CONSTRUCTION, AIR FORCE RESERVE

Fiscal year 2011 enacted level ........................................................... $7,832,000 

Fiscal year 2012 budget request ....................................................... 33,620,000 

Committee recommendation in the bill ............................................ 33,620,000 

Comparison with: 

Fiscal year 2011 enacted level ................................................... 25,788,000 

Fiscal year 2012 budget request ................................................ – – – 

The Committee recommends an appropriation of $33,620,000 for 

Military Construction, Air Force Reserve, an increase of 

$25,788,000 above the fiscal year 2011 enacted level and the same 

as the budget request. 


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NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT

PROGRAM

Fiscal year 2011 enacted level ........................................................... $258,884,000 

Fiscal year 2012 budget request ....................................................... 272,611,000 

Committee recommendation in the bill ............................................ 272,611,000 

Comparison with: 

Fiscal year 2011 enacted level ................................................... 13,727,000 

Fiscal year 2012 budget request ................................................ – – – 

The North Atlantic Treaty Organization Security Investment 

Program (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, both within NATO nations and for 

‘‘out of area’’ operations such as Afghanistan. 

The Committee recommends an appropriation of $272,611,000 for 

NSIP, an increase of $13,727,000 above the fiscal year 2011 enacted level and the same as the budget request. 

The U.S. occasionally has been forced to temporarily delay the 

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

Committee within 14 days of the U.S. taking action to temporarily 

delay the authorization of projects, or to temporarily withhold 

funds from previously authorized projects, due to shortfalls in U.S. 

obligation authority. 

FAMILY HOUSING OVERVIEW

Fiscal year 2011 enacted level ........................................................... $1,823,191,000 

Fiscal year 2012 budget request ....................................................... 1,694,346,000 

Committee recommendation in the bill ............................................ 1,694,346,000 

Comparison with: 

Fiscal year 2011 enacted level ................................................... (128,845,000) 

Fiscal year 2012 budget request ................................................ – – – 

Family housing construction accounts provide funds for new construction, construction improvements, the Federal government 

costs for family housing privatization projects, and planning and 

design. The operation and maintenance accounts provide funds to 

pay for maintenance and repair, furnishings, management, services, utilities, leasing, interest, mortgage insurance, and miscellaneous expenses. 

The Committee recommends a total appropriation of 

$1,694,346,000 for the family housing construction, family housing 

operation and maintenance, and homeowners assistance accounts, 

a decrease of $128,845,000 below the fiscal year 2011 enacted level 

and the same as the budget request. The decrease below the 2011 

enacted level is due partly to the Department of Defense’s success 

in implementing the Military Housing Privatization Initiative, 

which has generated approximately $27,000,000,000 in family 

housing development on military installations and reduced the requirement for appropriated construction and operating costs. The 

Committee encourages the Department, where feasible, to utilize 

energy efficient, environmentally friendly, and easily deployable 

composite building materials in new family housing construction. 


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Family housing privatization progress reports.—The Committee 

directs the Department of Defense to continue submitting semi-annual progress reports on the family housing privatization program, 

including a breakout of military tenant satisfaction rates by 

project. 

Foreign currency savings and sub-account transfers.—The Committee directs that savings in family housing operation and maintenance accounts from foreign currency re-estimates be used to maintain and repair existing family housing units. The Comptroller is 

directed to report to the Committees on Appropriations of both 

Houses of Congress on how these savings are allocated by December 1, 2011. In addition, the Committee directs the Services and 

Defense agencies to notify the Committees on Appropriations of 

both Houses of Congress within 30 days of a transfer of funds between subaccounts within the family housing construction and family housing operation and maintenance accounts, if such transfer is 

in excess of 10 percent of the funds appropriated to the sub-account 

to which the funds are being transferred. Notifications to the Committees shall indicate the sub-accounts and amounts that are being 

used to source the transfer. 

Leasing reporting requirements.—The Secretary of Defense is directed to report to the Committees on Appropriations of both 

Houses of Congress quarterly on the details of all new or renewed 

domestic leases entered into during the previous quarter that exceed the cost threshold set by 10 U.S.C. 2828(b)(2), 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 renewed lease agreements that exceed the cost threshold 

set by 10 U.S.C. 2828(e)(1) 21 days prior to entering into such an 

agreement; and (3) base leasing decisions on the economic analysis. 

FAMILY HOUSING CONSTRUCTION, ARMY

Fiscal year 2011 enacted level ........................................................... $92,369,000 

Fiscal year 2012 budget request ....................................................... 186,897,000 

Committee recommendation in the bill ............................................ 186,897,000 

Comparison with: 

Fiscal year 2011 enacted level ................................................... 94,528,000 

Fiscal year 2012 budget request ................................................ – – – 

The Committee recommends an appropriation of $186,897,000 for Family Housing Construction, Army, an increase of $94,528,000 

above the fiscal year 2011 enacted level and the same as the budget request. 

FAMILY HOUSING OPERATION AND MAINTENANCE, ARMY

Fiscal year 2011 enacted level ........................................................... $518,140,000 

Fiscal year 2012 budget request ....................................................... 494,858,000 

Committee recommendation in the bill ............................................ 494,858,000 

Comparison with: 

Fiscal year 2011 enacted level ................................................... (23,282,000) 

Fiscal year 2012 budget request ................................................ – – – 

The Committee recommends an appropriation of $494,858,000 for 

Family Housing Operation and Maintenance, Army, a decrease of 

$23,282,000 below the fiscal year 2011 enacted level and the same 

as the budget request. 


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FAMILY HOUSING CONSTRUCTION, NAVY AND MARINE CORPS

Fiscal year 2011 enacted level ........................................................... $186,444,000 

Fiscal year 2012 budget request ....................................................... 100,972,000 

Committee recommendation in the bill ............................................ 100,972,000 

Comparison with: 

Fiscal year 2011 enacted level ................................................... (85,472,000) 

Fiscal year 2012 budget request ................................................ – – – 

The Committee recommends an appropriation of $100,972,000 for 

Family Housing Construction, Navy and Marine Corps, a decrease 

of $85,472,000 below the fiscal year 2011 enacted level and the 

same as the budget request. 

FAMILY HOUSING OPERATION AND MAINTENANCE, NAVY AND

MARINE CORPS

Fiscal year 2011 enacted level ........................................................... $366,346,000 

Fiscal year 2012 budget request ....................................................... 367,863,000 

Committee recommendation in the bill ............................................ 367,863,000 

Comparison with: 

Fiscal year 2011 enacted level ................................................... 1,517,000 

Fiscal year 2012 budget request ................................................ – – – 

The Committee recommends an appropriation of $367,863,000 for 

Family Housing Operation and Maintenance, Navy and Marine 

Corps, an increase of $1,517,000 above the fiscal year 2011 enacted 

level and the same as the budget request. 

FAMILY HOUSING CONSTRUCTION, AIR FORCE

Fiscal year 2011 enacted level ........................................................... $78,025,000 

Fiscal year 2012 budget request ....................................................... 84,804,000 

Committee recommendation in the bill ............................................ 84,804,000 

Comparison with: 

Fiscal year 2011 enacted level ................................................... 6,779,000 

Fiscal year 2012 budget request ................................................ – – – 

The Committee recommends an appropriation of $84,804,000 for Family Housing Construction, Air Force, an increase of $6,779,000 

above the fiscal year 2011 enacted level and the same as the budget request. 

FAMILY HOUSING OPERATION AND MAINTENANCE, AIR FORCE

Fiscal year 2011 enacted level ........................................................... $513,792,000 

Fiscal year 2012 budget request ....................................................... 404,761,000 

Committee recommendation in the bill ............................................ 404,761,000 

Comparison with: 

Fiscal year 2011 enacted level ................................................... (109,031,000) 

Fiscal year 2012 budget request ................................................ – – – 

The Committee recommends an appropriation of $404,761,000 for 

Family Housing Operation and Maintenance, Air Force, a decrease 

of $109,031,000 from the fiscal year 2011 enacted level and the 

same as the budget request. 

FAMILY HOUSING OPERATION AND MAINTENANCE, DEFENSE-WIDE

Fiscal year 2011 enacted level ........................................................... $50,464,000 

Fiscal year 2012 budget request ....................................................... 50,723,000 

Committee recommendation in the bill ............................................ 50,723,000 

Comparison with: 

Fiscal year 2011 enacted level ................................................... 259,000 

Fiscal year 2012 budget request ................................................ – – – 


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The Committee recommends an appropriation of $50,723,000 for 

Family Housing Operation and Maintenance, Defense-Wide, an increase of $259,000 above the fiscal year 2011 enacted level and the 

same as the budget request. 

DEPARTMENT OF DEFENSE FAMILY HOUSING IMPROVEMENT FUND

Fiscal year 2011 enacted level ........................................................... $1,096,000 

Fiscal year 2012 budget request ....................................................... 2,184,000 

Committee recommendation in the bill ............................................ 2,184,000 

Comparison with: 

Fiscal year 2011 enacted level ................................................... 1,088,000 

Fiscal year 2012 budget request ................................................ – – – 

The Family Housing Improvement Fund (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 using 

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 directly appropriated and transferred funds from family housing construction accounts. 

The Committee recommends an appropriation of $2,184,000 for 

the Department of Defense Family Housing Improvement Fund, an 

increase of $1,088,000 above the fiscal year 2011 enacted level and 

the same as the budget request. 

DEPARTMENT OF DEFENSE HOMEOWNERS ASSISTANCE FUND

Fiscal year 2011 enacted level ........................................................... $16,515,000 

Fiscal year 2012 budget request ....................................................... 1,284,000 

Committee recommendation in the bill ............................................ 1,284,000 

Comparison with: 

Fiscal year 2011 enacted level ................................................... (15,231,000) 

Fiscal year 2012 budget request ................................................ – – – 

The Homeowners Assistance Fund account finances the Homeowners Assistance Program (HAP), which provides assistance to individual military and Federal civilian homeowners who sustain 

losses on the sales of their primary residences due to declining real 

estate markets attributable to the closure or realignment of military installations, as well as the temporary expansion of the program to include military homeowners adversely affected by the 

housing crisis and the permanent extension of benefits to wounded 

warriors and surviving spouses. This non-expiring revolving fund 

receives funding from several sources, including appropriations, 

borrowing authority, reimbursable authority, prior fiscal year unobligated balances, appropriation transfers, revenue from sale of acquired properties, and recovery of prior year obligations. The Committee recommends an appropriation of $1,284,000 for 

the Department of Defense Homeowners Assistance Fund, a decrease of $15,231,000 below the fiscal year 2011 enacted level and 

the same as the budget request. 


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CHEMICAL DEMILITARIZATION CONSTRUCTION, DEFENSE-WIDE

Fiscal year 2011 enacted level ........................................................... $124,971,000 

Fiscal year 2012 budget request ....................................................... 75,312,000 

Committee recommendation in the bill ............................................ 75,312,000 

Comparison with: 

Fiscal year 2011 enacted level ................................................... (49,659,000) 

Fiscal year 2012 budget request ................................................ – – – 

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. The Committee recommends an appropriation of $75,312,000 for 

Chemical Demilitarization Construction, Defense-Wide, a decrease 

of $49,659,000 below the fiscal year 2011 enacted level and the 

same as the budget request. 

BASE REALIGNMENT AND CLOSURE ACCOUNT 1990 

Fiscal year 2011 enacted level ........................................................... $360,474,000 

Fiscal year 2012 budget request ....................................................... 323,543,000 

Committee recommendation in the bill ............................................ 373,543,000 

Comparison with: 

Fiscal year 2011 enacted level ................................................... 13,069,000 

Fiscal year 2012 budget request ................................................ 50,000,000 

The Committee recommends an appropriation of $373,543,000 for 

the Base Realignment and Closure Account 1990, an increase of 

$13,069,000 above the fiscal year 2011 enacted level and 

$50,000,000 above the fiscal year 2012 budget request. 

BRAC 1990.—According to the GAO (GAO–10–457T) there are 

1492 BRAC sites awaiting clean up—sites that have not reached 

response complete status. There are another 440 BRAC sites that 

require long-term management to effectively remediate contamination. The estimated cost of clean up at these sites is in excess of 

$3 billion. It is critical that hazards present on these ranges be 

identified and removed yet the pace of clean up remains painfully 

slow, with some bases predicted not to be fully cleaned for upwards 

of 300 years or more. The Committee is concerned that, despite 

regular funding for clean up activities in the 1990 BRAC Account, 

DOD consistently underspends appropriated money in this account. 

The Committee directs the Department of Defense to report back 

to the Committees on Appropriations of both Houses of Congress 

within 90 days of enactment of this Act its plan to expedite and 

expand clean up activities of BRAC legacy bases and how it will 

fully utilize the funds appropriated to it annually for that purpose. 

BASE REALIGNMENT AND CLOSURE ACCOUNT 2005 

Fiscal year 2011 enacted level ........................................................... $2,354,285,000 

Fiscal year 2012 budget request ....................................................... 258,776,000 

Committee recommendation in the bill ............................................ 208,776,000 

Comparison with: 

Fiscal year 2011 enacted level ................................................... (2,145,509,000) 

Fiscal year 2012 budget request ................................................ (50,000,000) 

The Committee recommends an appropriation of $208,776,000 for 

the Base Realignment and Closure Account 2005, a decrease of 

$2,145,509,000 below the fiscal year 2011 enacted level and 

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ing supports the most recent base realignment and closure round 

which affects over 800 installations and locations through 24 major 

closures, 24 major realignments, and 765 other actions. 

Base Realignment and Closure 2005.—The Committee is disappointed that the Department of the Army has refused to implement the recommendations offered by the Inspector General in its 

report entitled, ‘‘Assessment of BRAC 133 Final Environmental Assessment of July 2008 and Transportation Management Plan of 

July 2010.’’ The Inspector General’s findings that the proposed traffic mitigation measures in the BRAC 133 Environmental Assessment may not be sufficient to support the finding of no significant 

impact are troubling. Further, the IG’s conclusion that the Army’s 

goal of reducing single occupancy vehicle trips to the Mark Center 

site by 40 percent may not be achievable and may impose further 

adverse impacts on the roadway network are distressing. The Committee therefore directs the Army to perform a traffic impact analysis and to document its findings in a supplemental environmental 

assessment within 90 days of enactment of this Act. 

Transportation Infrastructure Improvements.—The Committee directs the Secretary of Defense to determine the magnitude of impacts, with particular emphasis on mission accomplishment, as a 

result of ongoing and future Base Realignment and Closure actions 

on transportation infrastructure at and in the vicinity of each affected military installation and consider expanded use of and additional funding sources for the Defense Access Roads program to 

mitigate such impacts through multi-modal transportation improvements and report to the Committee on the findings by January 30, 2012. 

ADMINISTRATIVE PROVISIONS

The bill includes section 101 prohibiting the use of funds for payments under a cost-plus-a-fixed-fee contract for construction where 

cost estimates exceed $25,000. An exception for Alaska is provided. 

The bill includes section 102 permitting the use of construction 

funds for the hire of passenger motor vehicles. 

The bill includes section 103 permitting funds to be expended on 

the construction of defense access roads under certain circumstances. 

The bill includes section 104 prohibiting construction of new 

bases in the United States without a specific appropriation. 

The bill includes section 105 limiting the use of funds for the 

purchase of land or land easements that exceed 100 percent of 

value except under certain conditions. 

The bill includes section 106 prohibiting the use of funds to acquire land, prepare sites, or install utilities for family housing except housing for which funds have been appropriated. 

The bill includes section 107 limiting the use of minor construction funds to relocate any activity from one installation to another 

without prior notification. 

The bill includes section 108 prohibiting the procurement of steel 

unless American producers, fabricators, and manufacturers have 

been allowed to compete. 

The bill includes section 109 prohibiting the use of funds to pay 

real property taxes in foreign nations. 


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The bill includes section 110 prohibiting the use of funds to initiate a new installation overseas without prior notification. 

The bill includes section 111 establishing a preference for United 

States architectural and engineering services where the services 

are in Japan, NATO member countries, or countries bordering the 

Arabian Sea within the Central Command area of responsibility. 

The bill includes section 112 establishing a preference for United 

States contractors for military construction in the United States 

territories and possessions in the Pacific and on Kwajalein Atoll, or 

countries bordering the Arabian Sea within the Central Command 

area of responsibility, except bids by Marshallese contractors for 

military construction on Kwajalein Atoll. 

The bill includes section 113 requiring the Secretary of Defense 

to give prior notice to Congress of military exercises where construction costs exceed $100,000. 

The bill includes section 114 limiting obligations of funds made 

available for one fiscal year to no more than 20 percent during the 

last two months of the fiscal year. 

The bill includes section 115 allowing funds appropriated in prior 

years to be used for new projects authorized during the current session of Congress. 

The bill includes section 116 allowing the use of expired or 

lapsed funds to pay the cost of supervision for any project being 

completed with lapsed funds. 

The bill includes section 117 providing 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. 

(INCLUDING TRANSFER OF FUNDS)

The bill includes section 118 allowing for the transfer of proceeds 

from ‘‘Base Realignment and Closure Account, Part I’’ to the continuing Base Realignment and Closure accounts. 

(INCLUDING TRANSFER OF FUNDS)

The bill includes section 119 allowing for the transfer of funds 

from Family Housing Construction accounts to the Department of 

Defense Family Housing Improvement Fund and funds from Military Construction accounts to the Department of Defense Military 

Unaccompanied Housing Improvement Fund. 

(INCLUDING TRANSFER OF FUNDS)

The bill includes section 120 providing transfer authority to the 

Homeowners Assistance Program. 

The bill includes section 121 requiring that funds in this title be 

the sole source of all operation and maintenance for flag and general officer quarter houses, and limits the repair on these quarters 

to $35,000 per year without notification. 

The bill includes section 122 making funds in the Ford Island 

Improvement Fund available until expended. 

The bill includes section 123 prohibiting the use of funds for military construction, family housing, or land acquisition projects at installations closed or realigned under BRAC, except under certain 

conditions. 


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(INCLUDING TRANSFER OF FUNDS)

The bill includes section 124 allowing the transfer of expired 

funds to the ‘‘Foreign Currency Fluctuations, Construction, Defense’’ account. 

The bill includes section 125 allowing for the reprogramming of 

construction funds among projects and activities subject to certain 

guidelines. 

(RESCISSIONS)

The bill includes section 126 rescinding funds from prior appropriations Acts. 

The bill includes section 127 limiting the number of parking 

spaces that may be occupied at the BRAC office complex in Alexandria, Virginia, until certain conditions are met. 

The bill includes section 128 prohibiting the use of funds for any 

action related to the expansion of Pinon Canyon Maneuver Site, 

Colorado. 

The bill includes section 129 prohibiting the use of funds to relocate a unit of the Army that would impact more than 200 personnel. 

TITLE II 

DEPARTMENT OF VETERANS AFFAIRS 

Fiscal year 2011 enacted level 1 2 .............................................. $121,873,076,000 

Fiscal year 2012 budget request 1 ............................................. 130,202,604,000 

Committee recommendation in the bill 1 .................................. 129,726,000,000 

Comparison with: 

Fiscal year 2011 enacted level ........................................... 7,853,791,000 

Fiscal year 2012 budget request ........................................ (475,737,000) 

Fiscal year 2013 advance budget request 1 .............................. 52,541,000,000 

Fiscal year 2013 Committee recommendation in the bill 1 ..... 52,541,000,000 1 All funding cited excludes amounts in the Medical Care Collections Fund. 

2Does not include the effect of the government-wide 0.22 percent across the board cut. 

The Department of Veterans Affairs (VA) serves nearly 58 million people: 22,700,000 veterans and 35,100,000 family members of 

living veterans or survivors of deceased veterans. This group constitutes more than 18 percent of the United States population. To 

serve adequately the nation’s veterans, the VA employs 285,000 

people, making it one of the largest Federal agencies in terms of 

employment. 

The Committee recommends a total of $129,726,000,000 in budget authority for programs in fiscal year 2012, an increase of 

$7,853,791,000 or 6.4 percent above the fiscal year 2011 enacted 

level and $475,737,000 below the budget request. In addition, advance appropriations of $52,541,000,000 are provided for fiscal year 

2013. 


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VETERANS BENEFITS ADMINISTRATION

COMPENSATION AND PENSIONS

(INCLUDING TRANSFER OF FUNDS)

Fiscal year 2011 enacted level ................................................... $53,978,000,000 

Fiscal year 2012 budget request ............................................... 58,067,319,000 

Committee recommendation in the bill .................................... 58,067,319,000 

Comparison with: 

Fiscal year 2011 enacted level ........................................... 4,089,319,000 

Fiscal year 2012 budget request ........................................ – – – 

This appropriation provides funds for service-connected compensation payments to an estimated 4,000,000 veterans, survivors, 

and dependents. In addition, pension payments are funded for 

507,000 veterans and their survivors. The average cost per compensation case for veterans in 2012 is estimated at $13,226, and 

pension payments are projected at a unit cost of $9,739. 

The Committee recommends an appropriation of $58,067,319,000 

for compensation, pension, and burial benefits, an increase of 

$4,089,319,000 above the fiscal year 2011 enacted level and the 

same as the budget request. 

The appropriation includes authority to transfer funding not to 

exceed $32,187,000, of which $10,766,000 is for the General Operating Expenses, Veterans Benefit Administration account, 

$20,843,000 is for the Medical Support and Compliance account, 

and $578,000 is for the Information Technology Systems account. 

These funds are for the administrative expenses of implementing 

cost-saving provisions required by the Omnibus Budget Reconciliation Act of 1990, Public Law 101–508, the Veterans’ Benefits Act 

of 1992, Public Law 102–568, and the Veterans’ Benefits Improvements Act of 1994, Public Law 103–446. These cost-saving provisions include verifying pension income against Internal Revenue 

Service (IRS) and Social Security Administration (SSA) data; establishing a match with the SSA to obtain verification of Social Security numbers; and applying the VA pension cap for Medicaid-eligible single veterans and surviving spouses alone in Medicaid-covered nursing homes. The bill also continues to include language 

permitting this appropriation to reimburse such sums as may be 

earned to the Medical Care Collections Fund to help defray the operating expenses of individual medical facilities for nursing home 

care provided to pensioners. 

READJUSTMENT BENEFITS

Fiscal year 2011 enacted level ................................................... $10,396,245,000 

Fiscal year 2012 budget request ............................................... 11,011,086,000 

Committee recommendation in the bill .................................... 11,011,086,000 

Comparison with: 

Fiscal year 2011 enacted level ........................................... 614,841,000 

Fiscal year 2012 budget request ........................................ – – – 

This appropriation finances the education and training of veterans and servicemembers through the Post 9–11 GI Bill and the 

All-Volunteer Force Educational Assistance Program. Supplemental 

education benefits are also provided to certain veteran members of 

the Selected Reserve and are funded through transfers from the 

Department of Defense. In addition, certain disabled veterans are 

provided with vocational rehabilitation, specially adapted housing 


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grants, and grants for automobiles with approved adaptive equipment. This account also finances educational assistance allowances 

for eligible dependents of veterans who died from service-connected 

causes or have a total and permanent service-connected disability, 

as well as dependents of servicemembers who were captured or are 

missing in action. Almost 75 percent of the funds in the account 

support the Post 9–11 GI Bill. The Committee recommends an appropriation of $11,011,086,000 for Readjustment Benefits, an increase of $614,841,000 above the 

fiscal year 2011 enacted level and the same as the budget request. 

VETERANS INSURANCE AND INDEMNITIES

Fiscal year 2011 enacted level ........................................................... $77,589,000 

Fiscal year 2012 budget request ....................................................... 100,252,000 

Committee recommendation in the bill ............................................ 100,252,000 

Comparison with: 

Fiscal year 2011 enacted level ................................................... 22,663,000 

Fiscal year 2012 budget request ................................................ – – – 

The Veterans Insurance and Indemnities appropriation is made 

up of the former appropriations for military and naval insurance, 

applicable to World War I veterans; national service life insurance 

(NSLI), applicable to certain World War II veterans; servicemen’s 

indemnities, applicable to Korean conflict veterans; and the veterans mortgage life insurance, applicable to individuals who have 

received a grant for specially adapted housing. 

The Committee recommends an appropriation of $100,252,000 for 

Veterans Insurance and Indemnities, an increase of $22,663,000 

above the fiscal year 2011 enacted level and the same as the budget request. The amount provided will enable the Department to 

transfer funding to the service-disabled veterans insurance fund 

and transfer additional amounts for payments for policies under 

the veterans mortgage life insurance program. These policies are 

identified under the Veterans Insurance and Indemnity appropriation since they provide insurance to service-disabled veterans unable to qualify under basic NSLI. 

VETERANS HOUSING BENEFIT PROGRAM FUND PROGRAM ACCOUNT

Program account 

Limitation on direct 

loans for specially 

adapted housing 

loans 

Administrative 

expenses 

Fiscal year 2011 enacted level ................................................ $19,078,000 $500,000 $165,082,000 

Fiscal year 2012 budget request ............................................. 318,612,000 500,000 154,698,000 

Committee recommendation in the bill .................................... 318,612,000 500,000 154,698,000 

Comparison with: 

Fiscal year 2011 enacted level ....................................... 299,534,000 – – – (10,384,000) 

Fiscal year 2012 budget request .................................... – – – – – – – – – 

The purpose of the home loan guaranty program is to facilitate 

the extension of mortgage credit on favorable terms by private 

lenders to eligible veterans. This appropriation provides for all 

costs, with the exception of the Native American veterans housing 

loan program, of the Department’s direct and guaranteed loans programs. The Federal Credit Reform Act of 1990 requires budgetary 

resources to be available prior to incurring a direct loan obligation 

or a loan guaranty commitment. In addition, the bill requires all 

administrative expenses of a direct or guaranteed loan program to 


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be funded through a program account. Loan guaranties are made 

to servicemembers, veterans, reservists, and single surviving 

spouses for the purchase of homes, condominiums, and manufactured homes and for refinancing loans. The Department guarantees 

part of the total loan, permitting the purchaser to obtain a mortgage with a competitive interest rate, even without a down payment if the lender agrees. The Department requires that a down 

payment be made for a manufactured home. With a Department 

guaranty, the lender is protected against loss, up to the amount of 

the guaranty, if the borrower fails to repay the loan. 

The Committee recommends such sums as may be necessary 

(currently estimated to total $318,612,000) for funding subsidy payments, $500,000 for the limitation on direct loans for specially 

adapted housing loans, and $154,698,000 for administrative expenses. 

VOCATIONAL REHABILITATION LOANS PROGRAM ACCOUNT

(INCLUDING TRANSFER OF FUNDS)

Program account Limitation on direct 

loans 

Administrative 

expenses 

Fiscal year 2011 enacted level ................................................ $29,000 $2,298,000 $328,000 

Fiscal year 2012 budget request ............................................. 19,000 3,019,000 343,000 

Committee recommendation in the bill .................................... 19,000 3,019,000 343,000 

Comparison with: 

Fiscal year 2011 enacted level ....................................... (10,000) 721,000 15,000 

Fiscal year 2012 budget request .................................... – – – – – – – – – 

This appropriation covers the subsidy cost of direct loans for vocational rehabilitation of eligible veterans and includes administrative expenses necessary to carry out the direct loan program. Loans 

of up to $1,108 (based on indexed chapter 31 subsistence allowance 

rate) are available to service-connected disabled veterans enrolled 

in vocational rehabilitation programs when the veteran is temporarily in need of additional assistance. Repayment is made in 

monthly installments, without interest, through deductions from 

future payments of compensation, pension, subsistence allowance, 

educational assistance allowance, or retirement pay. Most loans are 

repaid in full in less than one year. The Federal Credit Reform Act 

of 1990 requires budgetary resources to be available prior to incurring a direct loan obligation. 

The Committee recommends $19,000 for funding subsidy program costs and $343,000 for administrative expenses. The administrative expenses may be paid to the General Operating Expenses, 

Veterans Benefit Administration account. 

In addition, the Committee includes language limiting direct 

loans to $3,019,000. It is estimated that the Department will make 

3,215 loans in fiscal year 2012, with an average amount of $939. 


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NATIVE AMERICAN VETERAN HOUSING LOAN PROGRAM

(INCLUDING TRANSFER OF FUNDS)

Administrative expenses: 

Fiscal year 2011 enacted level ........................................................... $664,000 

Fiscal year 2012 budget request ....................................................... 1,116,000 

Committee recommendation in the bill ............................................ 1,116,000 

Comparison with: 

Fiscal year 2011 enacted level ................................................... 452,000 

Fiscal year 2012 budget request ................................................ – – – 

The Native American Veteran Housing Loan Program, as authorized by title 38 United States Code, chapter 37, subchapter V, provides the Secretary with authority to make direct housing loans to 

Native American veterans for the purpose of purchasing, constructing, or improving dwellings on trust lands. The Committee 

recommends the budget request of $1,116,000 for administrative 

expenses of the Native American Veteran Housing Loan Program. 

GUARANTEED TRANSITIONAL HOUSING LOANS FOR HOMELESS

VETERANS PROGRAM ACCOUNT

No funds have been provided for this program, which was funded 

as a pilot in fiscal year 2000 to expand the supply of transitional 

housing for homeless veterans. This is the same as the budget request. No new loans will be executed and no additional program account funds are required to service the one existing loan. Up to 

$750,000 was made available in fiscal year 2011 to service the loan. 

VETERANS HEALTH ADMINISTRATION

The Department operates the largest Federal medical care delivery system in the country, with 152 hospitals, 101 domiciliary residential rehabilitation treatment programs, 133 nursing homes, 300 

Vet Centers, 50 mobile Vet Centers, and 807 outpatient clinics 

which include independent, satellite, community-based, and rural 

outreach clinics. Approximately 6,184,000 patients will be treated 

in 2012. 

The Veterans Health Administration (VHA) is comprised of four 

accounts: Medical Services, Medical Support and Compliance, Medical Facilities, and Medical and Prosthetic Research. For these accounts, the Administration has requested total resources for fiscal 

year 2013 of $52,541,000,000 in direct appropriations to fund the 

three advance appropriations of the VHA, as well as $3,326,000,000 

in Medical Care Collections Fund appropriations. This is an increase of $1,930,015,000 above the fiscal year 2012 enacted level of 

$50,610,985,000 and the same as the budget request. The Committee also provides the 2012 budget request of $508,774,000 for 

medical and prosthetic research. 

MEDICAL SERVICES

Fiscal year 2011 enacted level 1 ........................................................ $37,136,000,000 

Fiscal year 2012 enacted level ........................................................... 39,649,985,000 

Fiscal year 2012 additional request .................................................. 240,000,000 

Fiscal year 2013 advance budget request ......................................... 41,354,000,000 

Committee 2013 recommendation in the bill ................................... 41,354,000,000 

Comparison with: 

Fiscal year 2012 enacted level ................................................... 1,663,015,000 

Fiscal year 2013 budget request ................................................ (41,000,000) 1Does not include the effect of the government-wide 0.22 percent across-the-board reduction. 


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This appropriation provides for medical services of eligible veterans and beneficiaries in Department medical centers, outpatient 

clinic facilities, contract hospitals, State homes, and outpatient programs on a fee basis. Hospital and outpatient care is also provided 

by the private sector for certain dependents and survivors of veterans under the civilian health and medical programs for the VA. 

The Committee provides an advance appropriation of 

$41,354,000,000 for Medical Services for fiscal year 2013, an increase of $1,663,015,000, or 4.2 percent, above the fiscal year 2012 

enacted level and the same as the budget request. The Committee 

has included bill language to make available through September 

30, 2014, $1,000,000,000 of the Medical Services appropriation for 

fiscal year 2013. $248,000,000 is included to implement the new 

programs created by the Caregivers and Veterans Omnibus Health 

Services Act of 2010. The Committee provides sufficient resources 

to fully implement VA homeless assistance programs, including the 

Homeless Providers Grant and Per Diem, the Domiciliary Care for 

Homeless Veterans, and the Department of Housing and Urban Development—Department of Veterans Affairs Supported Housing 

programs. 

The FY 2012 budget includes a request for an additional 

$240,000,000 for Medical Services in fiscal year 2012, derived from 

a rescission of $713,000,000 from the Medicare care accounts due 

to the cancellation of the 2011 and 2012 pay raises and a ‘‘contingency fund’’ of $953,000,000, to be made available by the administration if economic conditions warrant additional funding. The 

Committee does not provide this additional FY 2012 funding. As 

the economy begins to recover, it seems unlikely that economic conditions will generate unmet medical services needs, particularly 

since the account has weathered the worst of the recession without 

budget shortfalls. The Committee’s recommendation does not include rescission of $664,000,000 of FY 2011 and FY 2012 funding 

that remains in the medical care accounts from the cancelled pay 

raises. Rather, the Committee permits the funding to remain in the 

account to cover any unanticipated medical service costs. The bill 

includes language indicating that the $664,000,000 will be available only in the fourth quarter of the fiscal year upon approval of 

the Appropriations Committees of a request from the VA to release 

the funding due to unanticipated needs related to economic conditions. 

Operational improvements.—The budget request is built on the 

assumption of substantial savings from what are called ‘‘operational improvements’’. These savings are estimated at 

$745,200,000 in fiscal year 2011, $1,216,800,000 in fiscal year 

2012, and $1,264,000,000 in fiscal year 2013. The operational improvements vary from fee care payment savings to clinical staff and 

resource ‘‘realignment’’ to real property cost savings. The Committee is concerned that these savings estimates are uncertain at 

best and depend in part on regulatory changes and hiring policies 

that may not materialize. Given this uncertainty, coupled with the 

unfortunate record the VA has had in the past with budgets based 

on similar ‘‘savings’’, the Committee requests that the VA provide 

an operating plan identifying the timeframe and benchmarks used 

in generating the estimates and the metrics to be used to validate 


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the savings. This report should be generated on a semi-annual 

basis, with the first report due on September 30, 2011. 

Rural health issues 

The Committee provides the budget request of $250,000,000 to 

improve access and quality of care for the 3,300,000 veterans residing in rural and highly rural areas. The Committee remains concerned, however, about the management of the substantial funding 

that has been provided over the last several years to the Office of 

Rural Health (ORH) at the VA. The VA Office of Inspector General 

(OIG) issued a report in April 2011 indicating that the ORH did 

not adequately manage the use of fee funds and the proposal selection process. Additionally, ORH did not monitor project obligations 

and performance measures, and some funds lapsed. Funds were 

awarded to projects that did not meet ORH’s review criteria. Perhaps most importantly, the OIG recommended that the ORH reassess the fiscal year 2012 budget to align the planned use of resources to the greatest rural health needs. The Committee expects 

to receive a report by July 1, 2011 describing the ORH’s strategic 

plan for rural health activities for the fiscal year 2012 advance 

funding already received and the fiscal year 2013 request. 

The Committee is concerned about the health care needs of elderly veteran populations in rural areas. These veterans have difficulty obtaining access to quality health care and disability services, 

due to having to travel long distances to healthcare facilities and 

the lack of specialty providers working in rural areas. While the 

VA has made strides in expanding access to rural veterans, it is 

clear that the VA continues to struggle to find an adequate and effective strategy to reach these men and women. The Committee requests a detailed report by March 31, 2012, on the feasibility of offering mobile health services, home-based primary care, telemedicine, and other enhanced home-based services in these underserved 

areas. 

The Committee encourages the VA to clarify for VA clinics and 

hospitals their ability to use local private sector health care assets 

and facilities when appropriate and cost-effective. The increased 

use of private providers can reduce the cost of per diem and mileage expended by the VA and prevents veterans from traveling long 

distances from home to get quality health care. 

The Committee encourages the VA to continue to provide health 

care to veterans through community-based outpatient clinics 

(CBOCs). Due to the increasing number of veterans located in rural 

areas, this creates additional challenges in providing access to 

quality health care. Community-based outpatient clinics address 

this challenge by providing essential care to veterans in rural 

areas. The Committee encourages the VA to build upon existing 

programs and develop new programs within community-based outpatient clinics in order to provide veterans access to quality health 

care. 

The Committee recognizes the unique needs of the homeless veteran population in states with rural veteran needs. The Committee 

encourages the VA to conduct pilot programs to address these 

needs, giving priority to the states with the highest number of veterans per capita. 


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Allocation of health funding.—The Committee is concerned that 

the process the VA uses to allocate the health services appropriation through the veterans integrated service networks (VISNs) and 

from them to the medical centers may shortchange the ultimate 

users because of excessive funding retained at headquarters or at 

the VISNs. The Committee requests a report each year no later 

than thirty days after VA allocates the medical services appropriation to the VISNs that identifies: (1) the amount of general purpose 

funding that is allocated to each VISN; (2) the amount of funding 

that is retained by central headquarters for specific purposes, with 

amounts identified for each purpose; and (3) the amount of funding 

that is retained by each VISN before allocating it to the medical 

centers, identifying separately the amounts retained for purposes 

such as network operations, network initiatives, and emergencies. 

Respiratory care program.—The Inspector General’s 2007 audit of 

the VA’s home respiratory care program (HRCP) indicated a need 

for greater oversight and improvements to the quality of care. The 

Committee is concerned that despite the recommendations contained in the audit, the HRCP continues to suffer from a lack of 

appropriate oversight and from problems with quality of care provided by some vendors providing durable medical equipment and 

services under the program. The Committee understands that the 

Center for Medicare and Medicaid Services (CMS) deemed accredited organizations (DAO) for suppliers of durable medical equipment dictate industry best practices in this field. Presently, the VA 

does not require that suppliers be accredited by one of the DAO to 

provide equipment and services under the home respiratory care 

program. The Committee is concerned that the VA may lack the capacity to ensure compliance with applicable industry standards for 

the HRCP. The Committee believes that the VA should place greater emphasis on DAO accreditation and compliance with best practices among HRCP vendors. The Committee urges that all future 

contract solicitations for services under HRCP require that bidders 

must be accredited by a CMS-approved DAO and meet all State 

and Federal licensing requirements relevant to the services requested. 

Prostate cancer.—The Committee is concerned by the incidence 

rates of prostate cancer in the veteran population. The Committee 

requests that VA conduct a pilot project using individual patient 

treatment plans developed by a multidisciplinary care team that 

includes an oncologist to assess the appropriate management of patients recently diagnosed with prostate cancer. 

Broadening VA relationships with academia.—The Committee 

encourages the VA to strengthen its partnership with the academic 

community by developing local or regional strategic alliances and 

joint ventures with academic medical centers to promote the delivery of comprehensive, cost-effective health care to veterans. Medical research, health professions training, and clinical care are all 

areas in which the VA would benefit from a synergistic relationship 

with its academic partners. The Blue Ribbon Panel on VA–Medical 

School Affiliations developed wide-ranging recommendations to 

broaden the VA’s partnership with the academic community, and 

the Committee urges the VA to move to adopt these recommendations. 


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Medical scholarships.—The Committee requests that VA prepare 

a report describing the feasibility, costs, and implementation timeframe for establishing, in collaboration with a university medical 

school, a program to recruit and retain qualified physicians into the 

VA. The Committee proposes that the program offer medical students Federally-funded, full four-year scholarships at the medical 

school in exchange for service in the VA for a minimum of six years 

upon conclusion of their residency and fellowship training. The university medical school should have a residency affiliation with a 

proximate VA medical center and use a specialized curriculum designed by the VA for the cohort of scholarship students. 

Infectious disease transmission among veterans.—The Committee 

remains concerned by unsafe sterilization practices at several VA 

medical centers, which have raised the threat of transmission of 

hepatitis and HIV. While the VHA has published new guidance 

and directed site visits of medical facilities, there continue to be incidents where veterans are exposed to unsanitary conditions. The 

Committee believes that the VHA should work to ensure that all 

its medical facilities do not deviate from recommended sanitization 

procedures. The Committee urges the VHA to review its training 

and sterilization practices to ensure that these types of incidents 

are avoided. 

Infectious disease status.—The Committee believes that the VA 

should work to establish knowledge of hepatitis and HIV status 

among its constituents. The Committee encourages VA to continue 

the implementation of routine HIV testing, particularly at the local 

facility level, and continues to urge the VA to utilize computerized 

patient records as a tool in the implementation of the VA HIV testing directive issued in August, 2009. 

Colonoscopy equipment problems.—The Committee is concerned 

about the implementation of the regulations and procedures regarding the sterilization of colonoscopy equipment used in VA facilities. While the Committee applauds the VA effort to expeditiously inform, test and treat veterans who were exposed to unclean colonoscopy equipment, the Committee fears that the VA has 

not sufficiently strengthened adherence to safe and sanitary cleaning procedures for colonoscopies. The Committee requests that the 

VA submit a report on the performance of each medical center in 

meeting the standards set to ensure the cleanliness of colonoscopy 

equipment by March 1, 2012. 

Companion animals.—The Committee is aware that the VA is 

considering regulations to provide veterans with service animals for 

treatment of post traumatic stress disorder, either as companion 

animals or for training as therapy. The Committee urges the VA 

to permit the veterans who receive service animals as companions 

to retain the animals on a permanent basis. 

Affiliations with university-based medical centers.—The Committee encourages the Secretary of Veterans Affairs to establish innovative public-private partnerships for the treatment and research of post-traumatic stress disorder in teaching hospitals 

across the country. 

Minority health professions graduate schools.—The Committee 

has heard repeated testimony on the need for the VA to increase 

its affiliations with minority health professions graduate schools. 

Although progress has been made, improvement is required at the 


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local level to achieve full affiliation. Therefore, the Committee suggests that the VA convene a symposium of VA health leaders and 

minority health professions graduate school leaders to pursue the 

next steps to strengthen these relationships. 

Dialysis facilities.—The Committee understands that the VA is 

planning to increase its in-house capacity for dialysis care by leasing offsite facilities and expanding existing medical center dialysis 

suites. The VA is currently running a pilot demonstration at four 

sites to measure how VA-provided dialysis compares in cost and 

quality of care to contract-provided dialysis. The Committee directs 

the VA not to convert dialysis service from contract-provided care 

to in-house care until after the completion and evaluation of the 

four-site pilot demonstration. The Committee requests a report by 

January 1, 2012 describing the cost metric being used at each site 

of the pilot—whether the cost comparison of VA-provided care is to 

the Medicare rate or the current negotiated contract price or some 

other measure. The report should also include projections of the 

ten-year VA patient caseload requiring dialysis and the share of 

the population that is expected to be served by in-house VA dialysis 

versus contract care. 

MEDICAL SUPPORT AND COMPLIANCE

Fiscal year 2011 enacted level 1 ................................................ $5,307,000,000 

Fiscal year 2012 enacted level ................................................... 5,535,000,000 

Fiscal year 2013 advance budget request ................................. 5,746,000,000 

Committee 2013 recommendation in the bill ........................... 5,746,000,000 

Comparison with: 

Fiscal year 2012 enacted level ........................................... 211,000,000 

Fiscal year 2013 advance budget request ......................... – – – 1Does not include the effect of the government-wide 0.22 percent across-the-board reduction. 

The Medical Support and Compliance appropriation funds the expenses of management and administration of the Department’s 

health care system, including financial management, public health 

and environmental hazard, quality and performance management, 

medical inspection, human research oversight, training programs 

and continuing education, security, volunteer operations, and 

human resources. 

The Committee recommends an advance appropriation of 

$5,746,000,000 for Medical Support and Compliance for fiscal year 

2013, an increase of $211,000,000 above the fiscal year 2012 enacted level and the same as the budget request. The Committee 

has included bill language to make available through September 

30, 2014, $100,000,000 of the Medical Support and Compliance appropriation for fiscal year 2013. 

MEDICAL FACILITIES

Fiscal year 2011 enacted level 1 ........................................................ $5,725,000,000 

Fiscal year 2012 enacted level ........................................................... 5,426,000,000 

Fiscal year 2013 advance budget request ......................................... 5,441,000,000 

Committee 2013 recommendation in the bill ................................... 5,441,000,000 

Comparison with: 

Fiscal year 2012 enacted level ................................................... 15,000,000 

Fiscal year 2012 advance budget request ................................. – – – 1Does not include the effect of the government-wide 0.22 percent across-the-board reduction. 

The Medical Facilities appropriation provides funds for the operation and maintenance of the Department’s health care system’s 

capital infrastructure. Included under this heading are provisions 


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for costs associated with utilities, engineering, capital planning, 

leases, laundry, groundskeeping, garbage, housekeeping, facility repair, and property disposition and acquisition. 

The Committee recommends an advance appropriation of $5,441,000,000 for Medical Facilities for fiscal year 2013, an increase of $15,000,000 above the fiscal year 2012 enacted level and 

the same as the budget request. The Committee has included bill 

language to make available through September 30, 2014, 

$100,000,000 of the advance Medical Facilities appropriation for 

fiscal year 2013. 

Medical waste treatment.—The Committee requests the VA review the possible cost-savings associated with utilizing on-site 

equipment at medical facilities to treat infectious medical waste 

rather than contracting with outside waste disposal companies to 

remove, process and dispose of it. This review should include consideration of all costs associated with handling, transporting and 

disposing medical waste with both alternatives. The Committee expects a report of this review by March 1, 2012. 

Leases for community-based outpatient clinics.—The Committee 

provides the budget request for the VA’s national lease program for 

new and expanded VA community-based outpatient clinics. These 

clinics ensure that veterans in communities throughout the country 

have access to VA medical services, particularly those who do not 

live in close proximity to regional VA hospital centers. 

MEDICAL AND PROSTHETIC RESEARCH

Fiscal year 2011 enacted level 1 ........................................................ $581,000,000 

Fiscal year 2012 budget request ....................................................... 508,774,000 

Committee recommendation in the bill ............................................ 508,774,000 

Comparison with: 

Fiscal year 2011 enacted level ................................................... (72,226,000) 

Fiscal year 2012 budget request ................................................ – – – 1Does not include the effect of the government-wide 0.22 percent across-the-board reduction. 

This appropriation provides for medical, rehabilitative, and 

health services research. Medical research is an important aspect 

of the Department’s programs, providing complete medical and hospital services for veterans. The prosthetic research program is also 

essential in the development and testing of prosthetic, orthopedic, 

and sensory aids for the purpose of improving the care and rehabilitation of eligible disabled veterans, including amputees, paraplegics, and the blind. The health services research program provides unique opportunities to improve the effectiveness and efficiency of the health care delivery system. Budgetary resources from 

a number of areas including appropriations from the medical care 

accounts, reimbursements from the Department of Defense, grants 

from the National Institutes of Health, private proprietary sources, 

and voluntary organizations provide support for the Department’s 

researchers. Estimated total research resources from all sources in 

2012 are $1,728,000,000. The VA will support about 2,100 research 

projects during fiscal year 2012. 

The Committee recommends $508,774,000 for Medical and Prosthetic Research, a decrease of $72,226,000 below the fiscal year 

2011 enacted level and the same as the budget request. Funds are 

available through September 30, 2013. 

Gambling study.—The Committee requests that the VA conduct 

a study to assess the extent of problem gambling among VHA paVerDate Mar 15 2010 00:19 Jun 01, 2011 Jkt 066566 PO 00000 Frm 00042 Fmt 6659 Sfmt 6602 E:\HR\OC\HR094.XXX HR094

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tients, and subsequently develop assessment and treatment approaches for problem gambling in VHA patients. 

Vietnam veterans longitudinal study.—The Committee understands that the VA has issued a contract to reinstitute the National Vietnam Veterans Longitudinal Study. The Committee urges 

the VA to proceed as quickly as possible with the study. The longer 

the study takes, the harder it becomes to locate study subjects and 

develop representative sample populations. The Committee directs 

the VA to submit a report by January 1, 2012 detailing the 

progress made with identification of sample populations; development of study protocol and research questions; and timeframes for 

completion of research, data analysis, and publication of results. In 

addition, the Secretary is urged to conduct epidemiological studies 

of existing VA medical data to determine if there are anomalies 

and differences that become apparent based on location of different 

duty stations or periods of service. Results of these studies shall be 

made public by means of submission of articles to recognized peerreviewed scientific and medical publications. 

MEDICAL CARE COLLECTIONS FUND

The Department of Veterans Affairs Medical Care Collections 

Fund (MCCF) was established by the Balanced Budget Act of 1997 

(Public Law 105–33). The Department deposits first-party and 

pharmacy co-payments, third-party insurance payments and enhanced-use collections, long-term care co-payments, Compensated 

Work Therapy Program collections, Compensation and Pension Living Expenses Program collections, and Parking Program fees into 

the MCCF. The Department uses these funds for medical care and 

services to veterans. The Congressional Budget Office estimate of 

fees that will be collected in fiscal year 2012 is $3,326,000,000. 

NATIONAL CEMETERY ADMINISTRATION

Fiscal year 2011 enacted level 1 ........................................................ $250,000,000 

Fiscal year 2012 budget request ....................................................... 250,934,000 

Committee recommendation in the bill ............................................ 250,934,000 

Comparison with: 

Fiscal year 2011 enacted level ................................................... 934,000 

Fiscal year 2012 budget request ................................................ – – – 1Does not include the effect of the government-wide 0.22 percent across-the-board reduction. 

The National Cemetery Administration (NCA) was established in 

accordance with Public Law 93–43, the National Cemeteries Act of 

1973. It has a fourfold mission: to provide for the interment of, in 

any national cemetery with available grave space, the remains of 

eligible deceased servicemembers and discharged veterans, together 

with their spouses and certain dependents, and to permanently 

maintain their graves; to provide headstones for, and to mark 

graves of eligible persons in national, State and tribal, and private 

cemeteries; to administer the grant program for aid to States and 

tribal governments in establishing, expanding, or improving State 

and tribal government veterans’ cemeteries; and to administer the 

Presidential Memorial Certificate Program. This appropriation will 

provide for the operation and maintenance of 131 operational national cemeteries and 33 other cemeterial installations. 

The Committee recommends an appropriation of $250,934,000 for 

the National Cemetery Administration, an increase of $934,000 


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above the fiscal year 2011 enacted level and the same as the budget request. The bill includes language making $25,100,000 available until September 30, 2013. 

Rural access.—The Committee is concerned that the NCA is not 

adequately serving the nation’s veterans in rural areas. According 

to the fiscal year 2012 budget submission, the NCA anticipates 

that 10 percent of all veterans will not have access to a burial option in a national, State or tribal government veteran’s cemetery 

within 75 miles of their home. The Committee understands the majority of this unserved veterans population lives in rural areas. The 

Committee finds this unacceptable and directs the NCA to develop 

a strategy to serve rural veterans, to be submitted not later than 

90 days after enactment of this Act. The Committee recommendation includes bill language restricting the availability of any funding for the NCA Urban Initiative until this rural strategy is developed and implemented. 

Plot allowances.—While acknowledging the increase provided in 

2010, the Committee remains concerned about the eroding value of 

the plot allowance and burial benefits provided to our nation’s veterans by the VA. Because the benefits are not indexed to inflation, 

their value diminishes each year. As a result, families and State 

veterans’ cemeteries have been left to cover the increasing costs. 

The Committee urges the Department to assess the viability of increasing the plot allowance and burial benefits to cover the same 

percentage of veterans’ burial costs that they covered in 1973, 

when they were initiated. 

DEPARTMENTAL ADMINISTRATION

GENERAL OPERATING EXPENSES

Fiscal year 2011 enacted level 1 ........................................................ $2,534,276,000 

Fiscal year 2012 budget request ....................................................... 2,466,989,000 

Committee recommendation in the bill 2 .......................................... – – – 

Comparison with: 

Fiscal year 2011 enacted level ................................................... (2,534,276,000) 

Fiscal year 2012 budget request ................................................ (2,466,989,000) 1Does not include the effect of the government-wide 0.22 percent across-the-board reduction. 

2Funding for General Operating Expenses is provided in the General Operating Expenses, Veterans Benefits Administration, and General Administration accounts. 

The Administration’s budget request proposes that funding for 

the administrative expenses associated with the Veterans Benefits 

Administration and all Department-wide offices be included within 

one single appropriation account. The Committee recommendation 

includes funding for these functions in two separate accounts: General operating expenses, Veterans Benefits Administration, and 

General administration. The Committee believes that differences in 

the mission and purpose of the Department’s executive offices and 

the Veterans Benefits Administration justify providing funding in 

two separate accounts. Further, separating these two broad categories will provide the Congress with greater visibility of budgetary resources and oversight of expenditures for these two vital 

missions. 


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GENERAL ADMINISTRATION

(INCLUDING TRANSFER OF FUNDS)

Fiscal year 2011 enacted level 1 ........................................................ – – – Fiscal year 2012 budget request ....................................................... – – – 

Committee recommendation in the bill 2 .......................................... $422,500,000 

Comparison with: 

Fiscal year 2011 enacted level ................................................... 422,500,000 

Fiscal year 2012 budget request ................................................ 422,500,000 1 $397,500,000 was provided for general administration under the General Operating Expenses account in 

fiscal year 2011. 2The budget request includes $448,225,000 for general administration within the General Operating Expenses account. 

The general administration account provides funds for the Office 

of the Secretary, six Assistant Secretaries, and three independent 

staff offices. The Committee provides $422,500,000 for fiscal year 

2012 for the account. This amount is the equivalent of being 

$25,000,000 above the fiscal year 2011 enacted level and 

$25,725,000 below the budget request. The Committee has included 

bill language to make available through September 30, 2013, up to 

$22,144,000 of these funds and to permit the transfer of funds in 

this account to the General operating expenses, Veterans Benefits 

Administration account. 

The Committee freezes funding for headquarters offices at the fiscal year 2011 level, except for a $5,000,000 increase for the 

Board of Veterans Appeals, to accommodate an increasing caseload 

and backlog, and a $20,000,000 increase for the Office of Acquisition, Logistics and Construction to implement the government-wide 

initiative to improve the quality of the large volume of contracting 

and acquisitions performed by the VA. The Committee recommendation includes bill language setting aside the $20,000,000 for acquisitions improvements and permitting the transfer of these funds 

to any other account in the Department to carry out these activities. 

Energy systems.—The Committee recognizes that many facilities 

operated by the VA utilize district energy systems, which connect 

multiple buildings through an underground piping network that 

carries hot and cold water or steam and achieves at least twice the 

fuel efficiency of traditional heating and cooling systems. The Committee requests the VA to conduct a study to inventory which of its 

current and planned facilities could achieve reduced energy costs 

and increased security of energy supply by building or expanding 

district energy systems and by installing combined heat and power 

technologies. This study should include a list of priority facilities 

to receive energy infrastructure investments and may include energy life cycle analyses. The results of the foregoing study shall be 

submitted to the Committees on Appropriations of both Houses of 

Congress by January 30, 2012. Further, the Committee encourages 

the VA to pursue increased investment in district energy systems 

as a strategy for the VA to achieve the goals of pollution reduction 

and environmental sustainability outlined in Executive Order 

13514—Federal Leadership in Environmental, Energy, and Economic Performance. 

Veteran-owned small businesses.—The Committee appreciates 

the unique buying authority (Public Law 109–461) that permits the 

VA to have set-aside requirements for veteran-owned small businesses (VOSB). The Committee is concerned that proper moniVerDate Mar 15 2010 00:19 Jun 01, 2011 Jkt 066566 PO 00000 Frm 00045 Fmt 6659 Sfmt 6602 E:\HR\OC\HR094.XXX HR094

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toring and verification of veteran-owned businesses needs to be 

done and therefore requests a report by March 1, 2012 accounting 

for: the number of self-representing businesses and the number of 

businesses that have submitted for verification that are at least 51 

percent owned and controlled by veterans or service-disabled veterans; the number of self-representing businesses and the number 

of businesses that have submitted for verification that meet Federal small business size standards, which should include ownership 

and size of any parent and/or subsidiaries; what is being done to 

achieve the three percent service disabled veteran-owned small 

business (SDVOSB) prime contract goal; what is being done to promote the formation and expansion of verified veteran-owned businesses, including service disabled veteran-owned small businesses; 

and what is being done to verify ownership and control of other 

veteran-owned businesses, including verifying the accuracy of other 

contractor databases that have VOSB/SDVOSB information. The 

Committee requests that the report disaggregate the data to include separately demographics of VOSBs and SDVOSBs. 

Environmental sustainability goals.—The Department currently 

submits information to Congress through the Department of Energy and the Office of Management and Budget on its progress in 

meeting several environmental sustainability goals established by 

Executive Order 13514, including the: 

(1) 2020 greenhouse gas emissions reduction target; 

(2) 30 percent reduction in vehicle fleet petroleum use by 

2020; 

(3) 26 percent improvement in water efficiency by 2020; 

(4) 50 percent recycling and waste diversion by 2015; and 

(5) goal that 95 percent of all applicable contracts will meet 

sustainability requirements. 

Not later than 180 days after the enactment of this Act, the 

Committee directs that the Department report to the Committee 

information on the Department’s progress in meeting the other requirements of the Executive Order: 

(1) implementation of the 2030 net-zero-energy building requirement; 

(2) implementation of the stormwater provisions of the Energy Independence and Security Act of 2007, section 438; and 

(3) development of guidance for sustainable Federal building 

locations in alignment with the Livability Principles put forward by the Department of Housing and Urban Development, 

the Department of Transportation, and the Environmental Protection Agency. 

Hard of hearing access.—The Committee encourages the Secretary to ensure that VA toll-free telecommunications device for the 

deaf phone numbers are accessible from all locations in the United 

States, its territories and possessions. 

Quarterly full-time equivalents (FTE) reports.—The Committee 

requests that the VA provide, on a quarterly basis, the total current FTE by appropriation account and, in the case of General operating expenses, Veterans Benefits Administration, by program. 

The Committee feels it needs to have current staffing information 

throughout the year in order to monitor the use of salaries and expenses resources. 


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Additional budgetary information.—The Committee appreciates 

the changes the VA has made to its budget justifications in response to Committee requests for fiscal year 2011, but believes that 

the budget justifications submitted each year with the Administration’s budget should be further expanded to include the following 

information which would help inform Congressional decisions: • A brief explanation of each proviso in an account’s appropriation bill language and any proposed bill language changes. • A consolidated administrative expenses chart for the entire Department. • A section identifying each piece of directive report language 

from the previous year’s House, Senate and conference reports and 

the VA response/action taken for each item. • An organization chart for the VA as well as the individual Administrations with the names of the occupant of each position on 

the chart. • A program narrative for the medical facilities section. • A narrative describing each of the programs in the readjustment benefits programs rather than only a description of increases 

and decreases. 

The Committee directs the Secretary of Veterans Affairs (VA) to 

include in the Fiscal Year 2013 budget submission a detailed summary of the VA marketing campaign budget. This summary shall 

include the amounts expended on VA advertising campaigns and a 

detailed list of outreach methods. In addition, the VA should also 

submit a detailed summary of previous advertising campaigns initiated during the fiscal years 2009 through 2012. 

GENERAL OPERATING EXPENSES, VETERANS BENEFITS

ADMINISTRATION

Fiscal year 2011 enacted level 1 ........................................................ – – – Fiscal year 2012 budget request 2 ..................................................... – – – Committee recommendation in the bill ............................................ $2,020,128,000 

Comparison with: 

Fiscal year 2011 enacted level ................................................... 2,020,128,000 

Fiscal year 2012 budget request ................................................ 2,020,128,000 1 $2,148,776,000 was provided for the Veterans Benefits Administration’s administrative expenses under 

the General Operating Expenses account in fiscal year 2011. 2The budget request includes $2,018,764,000 for the Veterans Benefits Administration’s administrative expenses within the General Operating Expenses account. 

The General Operating Expenses, Veterans Benefits Administration account provides funding for the Veterans Benefits Administration to administer entitlement programs such as service-connected disability compensation, education benefits, and vocational 

rehabilitation services. 

The Committee recommends $2,020,128,000 for General operating expenses, Veterans Benefits Administration. The Committee 

has proposed creating this new account to provide increased visibility and oversight of expenditures associated with VBA. This 

amount is the equivalent of $128,648,000 below the fiscal year 

2011 enacted level and $1,364,000 above the budget request. The 

Committee has included bill language to make available through 

September 30, 2013, up to $105,856,000 of these funds. 

Claims processing delays.—A new generation of heroes has sacrificed on behalf of the country with their service in Afghanistan, 

Iraq and other outposts in the global war on terror. This service 

creates an undeniable responsibility to care for them when they reVerDate Mar 15 2010 00:19 Jun 01, 2011 Jkt 066566 PO 00000 Frm 00047 Fmt 6659 Sfmt 6602 E:\HR\OC\HR094.XXX HR094

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turn home. The Committee urges the Department to refocus its efforts on the growing backlog of disability benefit claims and develop and incorporate new information technology and customer 

service enhancements to put the VA on a path to achieving the ultimate goal of no claims being more than 125 days old by 2015. In 

an effort to understand the scope of the difficulty in achieving this 

goal, the Committee directs the VA to produce a plan no later than 

180 days after enactment of this Act designed to eliminate the current backlog of veterans’ claims by December 31, 2013. This plan 

should include estimates of the funding necessary for its implementation. 

Education transition programs.—The Committee is encouraged 

by the budget request’s expansion of the VetSuccess on Campus 

initiative that provides outreach and transition services to veterans 

during their transition from the military to college. The program 

provides on-campus vocational rehabilitation counselors and Vet 

Center outreach coordinators to ensure the coordinated delivery of 

health, education and benefit services to Veteran-students. 

Access in remote areas.—The Committee encourages the Veteran 

Benefits Administration to work to increase the presence of staff in 

remote or underserved areas such as the Commonwealth of the 

Northern Mariana Islands. Making sure that veterans in remote 

and underserved areas receive access to veterans services is essential to honoring their sacrifices. 

Vet Center placement.—The Committee requests the Department 

to submit a report not later than February 1, 2012, describing the 

criteria currently used for selection of the location of Veteran Centers; the number of veterans annually served at the existing centers, including veterans who have served in Afghanistan and Iraq; 

and the share of the veteran population by region that is within existing Vet Center service areas. 

Disabled veterans home modification.—The Committee encourages the Secretary to provide specially adapted housing assistance 

under subsection (b) of section 2101 of title 38, United States Code, 

to veterans described in paragraph (2) of that subsection who reside in residences owned by family members in accordance with 

paragraph (3) of that subsection. Current regulations prevent veterans from receiving assistance if they live in a home owned by a 

family member; however, territorial law in some areas prevents 

non-natives from owning property. 

INFORMATION TECHNOLOGY SYSTEMS

Fiscal year 2011 enacted level 1 ........................................................ $2,999,898,000 

Fiscal year 2012 budget request ....................................................... 3,161,376,000 

Committee recommendation in the bill ............................................ 3,025,000,000 

Comparison with: 

Fiscal year 2011 enacted level ................................................... 25,102,000 

Fiscal year 2012 budget request ................................................ (136,376,000) 1Does not include the effect of the government-wide 0.22 percent across the board cut. 

The Information Technology Systems account was established in 

P.L. 109–114. The account previously encompassed the entire nonpay information technology portfolio for the Department of Veterans Affairs, including all automation efforts in all Administrations. Starting in fiscal year 2007, and reflected for the first time 

in the budget request for fiscal year 2008, this account also includes pay and associated costs for information technology staff. 


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The Committee recommends an appropriation of $3,025,000,000 for Information Technology Systems, which is $25,102,000 above 

the fiscal year 2011 appropriation and $136,376,000 below the 

budget request. These funds are available until September 30, 

2013. 

The Committee continues to include bill language requiring the 

Department to submit an expenditure plan for the total amount 

provided, not later than 30 days after enactment of this Act, before 

the expenditure of any funding. The bill also includes a proviso requiring that, not later than 30 days after the date of the enactment 

of this Act, the Secretary shall submit to the Appropriations Committees a reprogramming base letter which sets forth, by project, 

the operations and maintenance costs, with salary expenses separately designated, and development costs to be carried out utilizing 

amounts made available under this heading. In addition, an administrative provision is included in the bill which allows for the reprogramming of funds in this account among projects upon prior 

notification to, and approval by, the Committee. 

Obligations report.—The Committee expects the Office of Information Technology to continue to provide an IT expenditure report 

to the Committees on Appropriations on a monthly basis. This report shall include a comparison to the project costs included in the 

base reprogramming letter submitted to the Congress, and provide 

an explanation for any differences in excess of $1,000,000. 

Lifetime electronic records.—When a member of the armed forces 

leaves the military, he or she has had to physically walk paperwork 

from a military duty station to a local VA health center. For years, 

the Committee has been encouraging and funding efforts by VA 

and the Department of Defense (DoD) to develop interoperable 

technology to facilitate the rapid exchange of patient and beneficiary information that will yield consolidated, coherent and consistent access to electronic records between VA and DoD. Lifetime 

electronic health records would significantly improve the delivery of 

care to servicemembers transitioning from military to civilian life. 

The Committee provides $70,000,000 as requested in the budget for 

the ongoing effort to create the virtual lifetime electronic record 

(VLER). The Committee requests a report identifying the total cost 

of the VLER project, the benchmarks and timeframes the project 

must meet to qualify for future funding, and the types of information that is envisioned to be made available electronically through 

VLER. 

OFFICE OF INSPECTOR GENERAL

Fiscal year 2011 enacted level 1 ........................................................ $109,000,000 

Fiscal year 2012 budget request ....................................................... 109,391,000 

Committee recommendation in the bill ............................................ 109,391,000 

Comparison with: 

Fiscal year 2011 enacted level ................................................... 391,000 

Fiscal year 2012 budget request ................................................ 391,000 1Does not include the effect of the government-wide 0.22 percent across the board cut. 

The Office of Inspector General was established by the Inspector 

General Act of 1978 and is responsible for the audit, investigation, 

and inspection of all Department of Veterans Affairs programs and 

operations. The overall operational objective is to focus available 

resources on areas which would help improve services to veterans 

and their beneficiaries, assist managers of Department programs to 


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operate economically in accomplishing program goals, and to prevent and deter recurring and potential fraud, waste, and inefficiencies. 

The Committee recommends an appropriation of $109,391,000 for the Office of Inspector General, an increase of $391,000 above the 

fiscal year 2011 enacted level and the same as the budget request. 

The bill makes $6,000,000 of the total funding available until September 30, 2013. 

Fraud, waste and abuse.—The Committee remains concerned by 

reports by the Office of Inspector General and the General Accountability Office (GAO) that the VA continues to have endemic problems in management and financial controls in areas such as disability claims and fee-based care. In its 2011 listing of 30 high-risk 

government areas, the GAO includes VA claims processing activities. The VA OIG reported in its testimony to the subcommittee 

that: • Of approximately 45,000 benefit claims requiring rating decisions reviewed by the IG, 23 percent were processed incorrectly. • VA staff did not adequately process total disability evaluations 

for about 15 percent of approximately 181,000 veterans, resulting 

in overpayments of $943 million since 1993. Without further action 

to adjust the benefits, VBA will overpay these veterans a projected 

$1.1 billion over the next 5 years. • In 2009, VA improperly paid 28 percent of inpatient medical 

fee claims by not properly authorizing fee care, and not correctly 

determining payment rates, resulting in $120 million in overpayments. Without corrective actions, the VA could make $600 million 

in improper payments over the next 5 years. 

The Committee believes that efforts by the OIG to identify and 

report financial mismanagement of this scale and severity must be 

redoubled in order to protect obligations to veterans and to the taxpayers financing their benefits. 

CONSTRUCTION, MAJOR PROJECTS

Fiscal year 2011 enacted level 1 ........................................................ $1,076,036,000 

Fiscal year 2012 budget request ....................................................... 589,604,000 

Committee recommendation in the bill ............................................ 589,604,000 

Comparison with: 

Fiscal year 2011 enacted level ................................................... (486,432,000) 

Fiscal year 2012 budget request ................................................ – – – 1Does not include the effect of the government-wide 0.22 percent across the board cut. 

The Construction, Major Projects appropriation provides for constructing, altering, extending, and improving any of the facilities 

under the jurisdiction or for the use of the Department of Veterans 

Affairs, including planning, architectural and engineering services, 

assessments, and site acquisition where the estimated cost of a 

project is $10,000,000 or more. 

The Committee recommends an appropriation of $589,604,000 for 

Construction, Major Projects, a decrease of $486,432,000 from the 

fiscal year 2011 enacted level and the same as the budget request. 

VA has identified $381,614,000 in prior year appropriations that 

are also available to address VA construction priorities, making the 

program level for fiscal year 2012 under the Committee recommendation $971,218,000. The Committee recommendation makes these 

funds available for a five-year period rather than until expended, 

reflecting concern about the lengthy period that VA has taken to 


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design and build major construction projects. The Committee hopes 

that limiting the time period during which these funds may be 

used will motivate the VA to better plan and design projects before 

funding is requested. 

The Committee recommendation provides funding for 7 continuing major construction projects, 5 of which would be completed, 

but 2 that would require an additional $680,423,000 to complete in 

future years. The Committee also provides requested first year 

funding for 3 new projects totaling $94,650,000. This action creates 

continuing unfunded obligations of $1,371,850,000 to complete the 

projects. This new commitment is in addition to an unfunded obligation of $3,459,789,000 for 16 projects that were started in previous years, but neglected in the fiscal year 2012 budget request. 

With the enormous pressures the Congress faces to reduce the deficit and the debt, the Committee believes the VA should end its 

practice of partially funding projects and creating future unfunded 

obligations. The Committee expects future major construction 

project requests to completely fund any requested projects in the 

first year of availability. 

The Committee recommendation includes language in administrative provisions which requires the Department to notify the Congress of bid savings on contracts for construction projects and prohibits any changes from the original scope of work identified in the 

justification material submitted with the budget for each project. 

The specific amounts recommended by the Committee are as follows: 

[In thousands of dollars] 

Location Description 2012 request Committee recommendation 

Veterans Health Administration (VHA): 

New Orleans, LA ............................ New Medical Facility ............................. $60,000,000 $60,000,000 

Denver, CO ..................................... New Medical Facility ............................. 42,000,000 42,000,000 

San Juan, PR ................................. Seismic Corrections ............................... 100,720,000 100,720,000 

St. Louis, MO ................................. Med Facility Improvements ................... 80,000,000 80,000,000 

Palo Alto, CA ................................. Polytrauma/Ambulatory Care ................. 75,900,000 75,900,000 

Bay Pines, FL ................................. Inpatient/Outpatient Improvements ...... 43,970,000 43,970,000 

Seattle, WA .................................... Seismic Deficiencies .............................. 47,500,000 47,500,000 

Reno, NV ........................................ Expand Clinical Services ....................... 21,380,000 21,380,000 

W. Los Angeles, CA ....................... New Tower/Renovation ........................... 50,790,000 50,790,000 

San Francisco, CA ......................... Seismic Deficiencies .............................. 22,480,000 22,480,000 

Advance Planning Fund ................ ................................................................ 59,145,000 59,145,000 

Asbestos ........................................ ................................................................ 40,000,000 40,000,000 

Facility Security ............................. ................................................................ 8,000,000 8,000,000 

CFM Staff ...................................... ................................................................ 24,200,000 24,200,000 

Judgment Fund .............................. ................................................................ 5,000,000 5,000,000 

Total VHA .................................. ................................................................ 681,085,000 681,085,000 

National Cemetery Administration 

(NCA): 

Natl Mem Cemetery of Pacific ...... Columbarium/Admin Bldg ..................... 23,700,000 23,700,000 

Advance Planning Fund ................ ................................................................ 4,500,000 4,500,000 

NCA Land Acquisition Fund .......... ................................................................ 10,000,000 10,000,000 

Total NCA .................................. ................................................................ 38,200,000 38,200,000 

General Administration—Staff Offices 

Dept. APF for Major.

................................................................ 6,000,000 6,000,000 

Available from existing projects ............ ................................................................ (135,681,000) (135,681,000) 

Major construction total ........... ................................................................ 589,604,000 589,604,000 


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Joint Veterans Administration/Department of Defense facilities.— 

The Committee has long expressed an interest in the construction 

of joint Veterans/Army medical facilities. With the construction of 

new medical facilities such as the Martin Army Hospital at Ft. 

Benning, joint medical facilities that can serve both active duty 

servicemembers and veterans could be a cost-savings strategy, for 

both the Department of Defense (DoD) and the VA. Therefore, the 

Committee requests the VA and DoD to provide to the Committee 

a complete analysis and review of the Ft. Benning facility and 

other joint facilities, like the former Ft. Ord site, and report its 

findings no later than 180 days after the date of enactment of this 

Act. Further, the Committee requests the GAO to conduct a review 

of effectiveness and cost-efficiency of joint VA/military medical facilities currently in operation and identify other facilities where a 

joint VA/DoD project could be successful. The GAO report also 

should be submitted not later than 180 days after the date of enactment of this Act. 

Lexington, KY Leestown Road VA Medical Center.—The VA is directed to report to the Committee by February 15, 2012 on its 

plans and completion date for a new facility at Leestown Road. 

Health care center expansions.—Recognizing the lack of accessible 

VA services in many regions of the country, the Committee urges 

the Secretary to include in the VA Strategic Capital Improvement 

Plan the expansion of existing VA health care centers to include inpatient accommodations, urgent care services, and the full range of 

services required by women veterans when the absence of such 

services locally requires veterans to make round trips of more than 

five hours to access such services at a VA facility. 

Contract Structures and Management.—The Committee believes 

that structuring contracts and employee compensation with incentives to reduce cost by permitting retention of a share of savings 

has the potential to generate substantial economies. The Committee directs the Department of Veterans Affairs to report to the 

Committee on the structure of its contracts for construction, both 

major and minor projects, and facilities repair projects with a value 

of greater than $2 million. The report shall include the portion of 

contracts awarded on a fixed-price basis, those awarded on a costplus fee basis, and all other contract structures used by the Department for its construction programs. For all contracts, the Department is directed to report on incentives that are included in the 

contracts to reduce the cost to the government and any financial 

incentives included for completion of contracts ahead of schedule or 

under cost. If such incentives do not currently exist, the Department is to report on the feasibility of beginning such a program. 

CONSTRUCTION, MINOR PROJECTS

Fiscal year 2011 enacted level 1 ........................................................ $467,700,000 

Fiscal year 2012 budget request ....................................................... 550,091,000 

Committee recommendation in the bill ............................................ 475,091,000 

Comparison with: 

Fiscal year 2011 enacted level ................................................... 7,391,000 

Fiscal year 2012 budget request ................................................ (75,000,000) 1Does not include the effect of the government-wide 0.22 percent across the board cut. 

The Construction, Minor Projects appropriation provides for constructing, altering, extending, and improving any of the facilities 

under the jurisdiction or for the use of the Department, including 


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planning, assessment of needs, architectural and engineering services, and site acquisition, where the estimated cost of a project is 

less than $10,000,000. 

The Committee recommends an appropriation of $475,091,000 for 

Construction, Minor Projects, an increase of $7,391,000 above the 

fiscal year 2011 enacted level and $75,000,000 below the budget request. As with the major construction account, the Committee recommendation makes these funds available for a five year period 

rather than until expended, reflecting concern about the long period that VA has taken to design and build construction projects. 

GRANTS FOR CONSTRUCTION OF STATE EXTENDED CARE FACILITIES

Fiscal year 2011 enacted level 1 ........................................................ $85,000,000 

Fiscal year 2012 budget request ....................................................... 85,000,000 

Committee recommendation in the bill ............................................ 85,000,000 

Comparison with: 

Fiscal year 2011 enacted level ................................................... – – – 

Fiscal year 2012 budget request ................................................ – – – 1Does not include the effect of the government-wide 0.22 percent across the board cut. 

This appropriation provides grants to assist States to construct 

State home facilities, for furnishing domiciliary or nursing home 

care to veterans, and to expand, remodel or alter existing buildings 

for furnishing domiciliary, nursing home or hospital care to veterans in State homes. A grant may not exceed 65 percent of the 

total cost of the project. 

The Committee recommends an appropriation of $85,000,000 for 

Grants for Construction of State Extended Care Facilities, available until expended, which is the same as the fiscal year 2011 enacted level and the budget request. 

GRANTS FOR CONSTRUCTION OF VETERANS CEMETERIES

Fiscal year 2011 enacted level 1 ........................................................ $46,000,000 

Fiscal year 2012 budget request ....................................................... 46,000,000 

Committee recommendation in the bill ............................................ 46,000,000 

Comparison with: 

Fiscal year 2011 enacted level ................................................... – – – 

Fiscal year 2012 budget request ................................................ – – – 1Does not include the effect of the government-wide 0.22 percent across the board cut. 

This program provides grants to assist States and tribal governments with the establishment, expansion, and improvement of veterans cemeteries which are operated and permanently maintained 

by the States and tribal governments. Grants under this program 

fund up to 100 percent of construction costs and the initial equipment expenses when the cemetery is established. The States and 

tribal governments remain responsible for providing the land and 

for paying all costs related to the operation and maintenance of the 

State cemeteries, including the costs for subsequent equipment 

purchases. 

The Committee recommends an appropriation of $46,000,000 for 

Grants for Construction of Veterans Cemeteries to be available 

until expended, which is the same as the fiscal year 2011 enacted 

level and the budget request. 


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ADMINISTRATIVE PROVISIONS

The bill includes 26 provisions that were in effect in fiscal year 

2011 and 4 new provisions. The administrative provisions included 

in the bill are as follows: 

(INCLUDING TRANSFER OF FUNDS)

Section 201 allows for the transfer of funds among three mandatory appropriations. The Administration proposal to modify this 

provision is not adopted. 

(INCLUDING TRANSFER OF FUNDS)

Section 202 allows the Department to transfer funding among 

the three medical appropriations accounts in fiscal year 2012. The 

Administration proposal to modify this provision is not adopted. 

Section 203 allows for salaries and expenses funds to be used for 

hire of passenger vehicles, lease of facilities or land, and purchase 

of uniforms. 

Section 204 provides that only funding in the ‘‘Construction, 

major projects’’ and ‘‘Construction, minor projects’’ accounts can be 

used for the purchase of any site for any new hospital or home or 

to construct any new hospital or home. 

Section 205 requires the Department to be reimbursed for medical services it provides to any person not defined as a beneficiary 

to ensure the Department is receiving payment for all medical 

services provided. 

Section 206 allows for the use of funds appropriated in fiscal year 

2012 for ‘‘Compensation and pensions’’, ‘‘Readjustment benefits’’, 

and ‘‘Veterans insurance and indemnities’’ for payment of accrued 

obligations recorded in the last quarter of fiscal year 2011. 

Section 207 allows for the use of fiscal year 2012 funds to pay 

prior year obligations resulting from implementation of sections 

3328(a), 3334, and 3712(a) of title 31, United States Code. 

(INCLUDING TRANSFER OF FUNDS)

Section 208 allows the Department to use surplus earnings from 

the national service life insurance, U.S. Government life insurance, 

and veterans special life insurance program to administer these 

programs. 

Section 209 allows the Department to cover the administrative 

expenses of enhanced-use lease services and provides authority to 

obligate these reimbursements in the year funds are received. 

(INCLUDING TRANSFER OF FUNDS)

Section 210 limits the amount of reimbursement the Office of 

Resolution Management and the Office of Employment Discrimination Complaint Adjudication can charge other offices and accounts 

of the Department for services provided. 

Section 211 requires the Secretary to submit a report to the 

Committees on Appropriations to approve new leases of real property if the estimated annual rental cost is more than $1,000,000. 

The Administration proposal to modify this provision is not adopted. 

Section 212 requires the Department to collect current and accurate third-party reimbursement information for the purposes of 


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third-party insurance collections. If persons receiving care or medical services do not disclose this information, the Department is allowed to bill them reasonable charges for services provided. 

(INCLUDING TRANSFER OF FUNDS)

Section 213 allows the Department to use enhanced-use leasing 

funds for construction and alteration of medical facilities. 

Section 214 allows the Department to use the ‘‘Medical services’’ 

appropriation for expenses related to the broader mission of medical care to veterans. 

(INCLUDING TRANSFER OF FUNDS)

Section 215 allows the Department to transfer Medical Care Collections to the ‘‘Medical services’’ appropriation to be used for veterans medical care and makes those funds available until expended. 

Section 216 allows veterans who reside in Alaska to obtain medical services from medical facilities supported by the Indian Health 

Service or tribal organizations, and provides for reimbursement for 

those services from the Department of Veterans Affairs. 

(INCLUDING TRANSFER OF FUNDS)

Section 217 allows the Department to transfer the proceeds received from the transfer of real property deposited into the Department of Veterans Affairs Capital Asset Fund to the major and 

minor construction appropriations and makes those funds available 

for five years, instead of until expended as proposed by the Administration. 

Section 218 provides that no funds may be used to prohibit Directors of the Veterans Integrated Service Networks (VISN) from 

conducting outreach or marketing programs. The Administration 

proposed to delete this provision. 

Section 219 requires the Secretary to submit quarterly reports to 

the Committees on Appropriations of the House and Senate on the 

financial status of the Veterans Health Administration. 

(INCLUDING TRANSFER OF FUNDS)

Section 220 requires the Department to notify and receive approval from the Committees on Appropriations of any proposed 

transfer of funding to or from the ‘‘Information technology systems’’ 

account. The Administration proposal to modify this provision is 

not adopted. 

(INCLUDING TRANSFER OF FUNDS)

Section 221 requires the Department to notify and receive approval from the Committees on Appropriations of any proposed 

transfer of funding in excess of $1,000,000 between information 

technology system projects. The Administration proposal to modify 

this provision is not adopted. 

Section 222 limits the amount of funding made available under 

the ‘‘Medical facilities’’ account for non-recurring maintenance that 

may be obligated during the last two months of the fiscal year. The 

Administration proposal to delete this provision is not adopted. 


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(INCLUDING TRANSFER OF FUNDS)

Section 223 permits the transfer of $241,666,000 appropriated for 

medical accounts, minor construction, and information technology 

systems to the Joint Department of Defense-Department of Veterans Affairs Medical Facility Demonstration Fund for the operation of facilities designated as combined Federal medical facilities. 

The Administration proposal to modify this provision is not adopted. 

(INCLUDING TRANSFER OF FUNDS)

Section 224 permits the transfer of funds deposited in the Medical Care Collections Fund to the Joint Medical Facility Demonstration Fund for facilities designated as combined Federal medical facilities. 

(INCLUDING TRANSFER OF FUNDS)

Section 225 directs that a minimum of $15,000,000 shall be 

transferred from three medical appropriations to the Department of 

Defense/Department of Veterans Affairs Health Care Sharing Incentive Fund, to be available until expended. 

(INCLUDING RESCISSION OF FUNDS)

Section 226 rescinds fiscal year 2012 funds from three medical 

accounts and appropriates them for fiscal year 2012 with two-year 

availability. The amounts provided are the same as those with twoyear availability in the fiscal year 2011 appropriation rather than 

the amounts requested by the Administration in the fiscal year 

2011 budget. 

Section 227 requires the Secretary to notify the Committees on 

Appropriations of both Houses of Congress of all bid savings in 

Major Construction projects that total at least $5,000,000, or five 

percent of the programmed amount, whichever is less. Such notification must occur within 14 days of a contract. The Secretary is required to notify the Committees 14 days prior to the obligation of 

such bid savings and shall describe the anticipated use of such savings. 

Section 228 prohibits the original scope of work for a Major Construction project from being increased above the scope specified for 

that project in the original justification data provided to the Congress as part of the request for appropriations. 

Section 229 gives the Secretary the authority for and mandates 

disclosure of controlled substance prescriptions to State controlled 

substance monitoring programs to the extent necessary to prevent 

misuse and diversion of prescription medicines. 

Section 230 prohibits the VA from spending more than $250,000 

on any single national outreach and awareness marketing campaign prior to submitting a request to the Committees on Appropriations of both Houses of Congress and an approval is issued, or 

absent a response, a period of 30 days has elapsed. 


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TITLE III 

RELATED AGENCIES 

AMERICAN BATTLE MONUMENTS COMMISSION

SALARIES AND EXPENSES

Fiscal year 2011 enacted level ........................................................... $64,200,000 

Fiscal year 2012 budget request ....................................................... 61,100,000 

Committee recommendation in the bill ............................................ 61,100,000 

Comparison with: 

Fiscal year 2011 enacted level ................................................... (3,100,000) 

Fiscal year 2012 budget request ................................................ – – – 

The American Battle Monuments Commission is responsible for 

the administration, operation and maintenance of cemetery and 

war memorials to commemorate the achievements and sacrifices of 

the American Armed Forces where they have served since April 6, 

1917. In performing these functions, the Commission maintains 24 

permanent American military cemetery memorials and 31 monuments, memorials, markers, and offices in 15 foreign countries, the 

Commonwealth of the Northern Mariana Islands, and the British 

dependency of Gibraltar. In addition, six memorials are located in 

the United States: the East Coast Memorial in New York; the West 

Coast Memorial, The Presidio in San Francisco; the Honolulu Memorial in the National Memorial Cemetery of the Pacific in Honolulu, Hawaii; and the American Expeditionary Forces Memorial, 

the World War II, and Korean War Veterans Memorials in Washington, DC. 

The Committee recommends an appropriation of $61,100,000 for 

the American Battle Monuments Commission’s salaries and expenses account, the same as the budget request. 

Language is included allowing up to $7,500 to be used for official 

reception and representation expenses. 

FOREIGN CURRENCY FLUCTUATIONS ACCOUNT

Fiscal year 2011 enacted level ........................................................... $20,200,000 

Fiscal year 2012 budget request est. ................................................ 16,000,000 

Committee recommendation in the bill est. ..................................... 16,000,000 

Comparison with: 

Fiscal year 2011 enacted level ................................................... (4,200,000) 

Fiscal year 2012 budget request ................................................ – – – 

The Commission’s Foreign Currency Fluctuations Account is authorized pursuant to 36 U.S.C. 2109 to pay the costs of salaries and 

expenses that exceed the amount appropriated for salaries and expenses because of fluctuations in currency exchange rates of foreign 

countries occurring after a budget request for the Commission is 

submitted to the Congress. The account may not be used for any 

other purpose. 

The Committee recommendation includes bill language as proposed which makes ‘‘such sums as may be necessary’’ available to 

the Commission to cover unanticipated foreign currency fluctuations, currently estimated at $16,000,000. 


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UNITED STATES COURT OF APPEALS FOR VETERANS CLAIMS

SALARIES AND EXPENSES

Fiscal year 2011 enacted level ........................................................... $27,615,000 

Fiscal year 2012 budget request ....................................................... 55,770,000 

Committee recommendation in the bill ............................................ 30,770,000 

Comparison with: 

Fiscal year 2011 enacted level ................................................... 3,155,000 

Fiscal year 2012 budget request ................................................ (25,000,000) 

The Veterans’ Judicial Review Act established the U.S. Court of 

Appeals for Veterans Claims. The Court reviews appeals from 

claimants seeking review of a benefit denial. The Court has the authority to overturn findings of fact, regulations, and interpretations 

of law. 

The Committee recommends an appropriation of $30,770,000 for 

the U.S. Court of Appeals for Veterans Claims, an increase of 

$3,155,000 above the fiscal year 2011 enacted level and 

$25,000,000 below the budget request. Of the amount provided, 

$2,726,363 is to be used for the pro bono representation program. 

The Committee notes that the President’s budget request includes $25,000,000, which shall be transferred to the General Services Administration, for design and site acquisition of a Veterans 

Courthouse and Justice Center. The Committee recommendation 

does not include the amount requested. The Committee is concerned with the potential location of the facility and the projected 

cost to the taxpayers. The Committee encourages the General Services Administration and the Court to explore other options to provide the Court with better space, such as creative financing options 

to minimize or eliminate initial capital investment by the United 

States through the use of public-private partnerships or non-governmental sources of financing. Such an option was selected for the 

construction of the Thurgood Marshall Federal Judiciary Building 

near Union Station with outstanding results. 

DEPARTMENT OF DEFENSE—CIVIL CEMETERIAL EXPENSES, ARMY

SALARIES AND EXPENSES

Fiscal year 2011 enacted level ........................................................... $45,100,000 

Fiscal year 2012 budget request ....................................................... 45,800,000 

Committee recommendation in the bill ............................................ 45,800,000 

Comparison with: 

Fiscal year 2011 enacted level ................................................... 700,000 

Fiscal year 2012 budget request ................................................ – – – 

The Secretary of the Army is responsible for the administration, 

operation and maintenance of Arlington National Cemetery and 

the Soldiers’ and Airmen’s Home National Cemetery. In addition to 

its principal function as a national cemetery, Arlington is the site 

of approximately 3,100 non-funeral ceremonies each year and has 

approximately 4,000,000 visitors annually. 

The Committee recommends an appropriation of $45,800,000 for 

Cemeterial Expenses, Army, salaries and expenses, an increase of 

$700,000 above the fiscal year 2011 enacted level and the same as 

the budget request. 

The Committee understands Arlington National Cemetery is undertaking a cultural and natural resources plan to identify properties that could be placed on the National Register of Historic 


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Places. The Committee strongly encourages Arlington National 

Cemetery to recognize the unique historic nature of the cemetery, 

to work expeditiously to get the cemetery placed on the National 

Register of Historic Places, and to report to the Committee on the 

status of the listing no later than 90 days after enactment of this 

Act. 

The Committee is encouraged that, with the changes in management for the Army National Cemeteries Program and Arlington 

National Cemetery, past lapses and errors will not recur. The Committee believes the current management structure will ensure 

sound operations and will ensure that Arlington National Cemetery 

maintains its unique character and place in the hearts of all Americans. 

The Committee remains concerned about human resources management at Arlington National Cemetery. In nine of the last eleven 

years the Congress has provided more funding than requested in 

the President’s budget for Arlington National Cemetery. Despite 

this fact, personnel resources were stretched too thin to meet the 

most pressing needs of the cemetery according to the Army Inspector General report issued last June. The Committee directs the Executive Director to provide periodic updates to the staffing plan for 

the cemetery, including updates on the status of hiring key personnel necessary to maintain orderly cemetery operations. In addition, the Committee directs the Executive Director to conduct a financial review and identify for the Committee unobligated funds 

from prior years which will be used to satisfy current operations 

and construction needs. 

ARMED FORCES RETIREMENT HOME

OPERATION AND MAINTENANCE

Fiscal year 2011 enacted level ........................................................... $69,200,000 

Fiscal year 2012 budget request ....................................................... 65,700,000 

Committee recommendation in the bill ............................................ 65,700,000 

Comparison with: 

Fiscal year 2011 enacted level ................................................... (3,500,000) 

Fiscal year 2012 budget request ................................................ – – – 

The Armed Forces Retirement Home (AFRH) consists of two retirement communities, one in Washington, D.C. and the other in 

Gulfport, Mississippi. The Washington, D.C. facility was established in 1851 as a soldiers’ home for elderly and disabled veterans. 

The original home for Navy officers, sailors, and Marines was established in Philadelphia, Pennsylvania in 1811, and was relocated 

to Gulfport, Mississippi almost a century and a half later. 

The Committee recommendation provides authority to expend 

$65,700,000 from the Armed Forces Retirement Home Trust Fund 

to operate and maintain the Armed Forces Retirement Home— 

Washington, District of Columbia, and the Armed Forces Retirement Home—Gulfport, Mississippi. The amount recommended is 

$3,500,000 below the fiscal year 2011 enacted level and equal to 

the budget request. 


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CAPITAL PROGRAM

Fiscal year 2011 enacted level ........................................................... $2,000,000 

Fiscal year 2012 budget request ....................................................... 2,000,000 

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

Comparison with: 

Fiscal year 2011 enacted level ................................................... – – – 

Fiscal year 2012 budget request ................................................ – – – 

The Committee recommendation provides authority to expend $2,000,000 from the Armed Forces Retirement Home Trust Fund 

for construction and renovations. The amount recommended is the 

same as the fiscal year 2011 enacted level and equal to the budget 

request. 

TITLE IV 

GENERAL PROVISIONS 

The bill includes eight provisions that are effective in fiscal year 

2011 and eight new provisions as follows: 

Section 401 prohibits the obligation of funds beyond the current 

fiscal year unless expressly so provided. 

Section 402 prohibits the use of funds for programs, projects or 

activities not in compliance with Federal law relating to risk assessment, the protection of private property rights, or unfunded 

mandates. 

Section 403 prohibits the use of funds to support or defeat legislation pending before Congress. 

Section 404 encourages all departments and agencies funded in 

this Act to expand the use of E-Commerce technologies and procedures. 

Section 405 specifies the Congressional committees that are to 

receive all reports and notifications. 

Section 406 prohibits any funds in this Act to be used for a 

project or program named for an individual serving as a Member, 

Delegate, or Resident Commissioner of the United States House of 

Representatives. 

Section 407 requires all reports submitted to the Congress to be 

posted on official websites of the submitting agency. 

Section 408 prohibits funds in this Act for the Association of 

Community Organizations for Reform Now. 

Section 409 prohibits the use of funds to establish or maintain 

a computer network unless such network blocks the viewing, 

downloading, and exchanging of pornography, except for law enforcement investigation, prosecution or adjudication activities. 

Section 410 prohibits the use of funds for payment of first-class 

travel by an employee of the executive branch. 

Section 411 prohibits the use of funds made available in this Act 

to exercise the power of eminent domain without just compensation. 

Section 412 prohibits the use of funds in this Act for the renovation, expansion, or construction of any facility in the continental 

United States for the purpose of housing any individual who has 

been detained at the United States Naval Station, Guantanamo 

Bay, Cuba. 

Section 413 prohibits the use of funds in this Act for any contract 

where the contractor has not complied with E-Verify requirements. 


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Section 414 prohibits the use of funds in this Act for any contract, memorandum of understanding, or cooperative agreement 

with any corporation convicted of a felony criminal violation within 

the preceding 24 months. 

Section 415 prohibits the use of funds in this Act for enforcement 

of Executive Order 13502 relating to project labor agreements. 

Section 416 establishes a ‘‘Spending Reduction Account’’ in the 

bill. 

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)(A) 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 have not been enacted. 

Language is included in various parts of the bill to 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 in various parts of the bill to allow the Secretary of Defense to exceed certain limitations upon notification to 

the Committee. 

Language is included in various parts of the bill to allow funding 

to be used for official reception and representation expenses. 

Language is included in various parts of the bill to enable 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 in various parts of the bill to permit the 

transfer of funds to other accounts. 

Language is included under Title I to prohibit payments for costplus-a-fixed-fee contracts under certain circumstances. 

Language is included in various parts of the bill to allow funds 

to be used for the hire of passenger motor vehicles. 

Language is included under Title I to allow advances to the Federal Highway Administration, Department of Transportation under 

certain circumstances. 

Language is included under Title I to prohibit the use of funds 

to begin construction of new bases without specific appropriations. 

Language is included under Title I to prohibit the use of funds 

for purchase of land or land easements under certain circumstances. 

Language is included under Title I to prohibit the use of funds 

for land acquisition, site preparation, and utility installation for 

family housing unless funds have been made available in annual 

appropriations Acts. 


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Language is included under Title I to prohibit the use of minor 

construction funds to transfer an activity between installations 

without prior notification. 

Language is included under Title I to prohibit the use of funds 

for the procurement of steel for any activity if American steel producers have been denied the opportunity to compete for such steel 

procurements. 

Language is included under Title I to prohibit the use of funds 

to pay real property taxes in any foreign nation. 

Language is included under Title I to prohibit the use of funds 

to initiate a new installation overseas without prior notification. 

Language is included under Title I to limit the use of funds for 

architect and engineer contracts under certain circumstances. 

Language is included under Title I to limit the use of funds for 

awarding contracts to foreign contractors under certain circumstances. 

Language is included under Title I to require the Department of 

Defense to notify the appropriate committees of Congress of any 

proposed military exercises under certain circumstances. 

Language is included under Title I to limit funding obligations 

for certain appropriations in the last two months of the fiscal year 

to 20 percent. 

Language is included under Title I to allow prior year construction funding to be available for currently authorized projects. 

Language is included under Title I to allow payment for the cost 

associated with supervision, inspection, overhead, engineering and 

design on family housing or military construction projects that are 

being completed with expired or lapsed funds. 

Language is included under Title I to allow funds to be expended 

on military construction projects for four fiscal years after enactment under certain circumstances. 

Language is included under Title I to allow for the transfer of 

BRAC proceeds to the BRAC account. 

Language is included under Title I to allow construction funds to 

be transferred to Housing Improvement Funds. 

Language is included under Title I to allow for the transfer of 

BRAC funds to the Homeowners Assistance Program. 

Language is included under Title I to limit funds for the operation and maintenance of family housing to those provided in this 

appropriation and to limit amounts expended on repairs of general 

and flag officer quarters under certain circumstances. 

Language is included under Title I to allow funds in the Ford Island Improvement Account to be available until expended for certain purposes. 

Language is included under Title I to limit funds for projects at 

closed or realigned installations under certain circumstances. 

Language is included under Title I to allow for the transfer of expired funding to the Foreign Currency Fluctuation Account under 

certain circumstances. 

Language is included under Title I to allow funds to be transferred among projects or activities within accounts under certain 

circumstances. 

Language is included that rescinds funds from prior year appropriations Acts. 


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Language is included limiting the number of parking spaces that 

may be occupied at the BRAC office complex in Alexandria, Virginia, until certain conditions are met. 

Language is included under Title II to require that the Secretary 

of Veterans Affairs establish a priority for treatment of veterans 

who are service-connected disabled, lower income, or have special 

needs. 

Language is included under Title II to require that the Secretary 

of Veterans Affairs give priority funding of basic medical benefits 

to priority groups 1 through 6. 

Language is included under Title II to allow the Secretary of Veterans Affairs to dispense prescription drugs from VHA facilities to 

enrolled veterans with privately written prescriptions. 

Language is included under Title II providing for the reimbursement to the Department of Defense for the costs of overseas employee mail. 

Language is included under Title II to require approval of a 

transfer between projects of the information technology systems account. 

Language is included under Title II establishing time limitations 

and reporting requirements concerning the obligation of major construction funds, limiting the use of funds, and allowing the use of 

funds for program costs. 

Language is included under Title II to allow minor construction 

funds to be used to repair non-medical facilities damaged by natural disaster or catastrophe. 

Language is included under Title II prohibiting the VA from spending more than $250,000 on any single national outreach and 

awareness marketing campaign prior to submitting a request to the 

Committees on Appropriations of both Houses of Congress and an 

approval is issued, or absent a response, a period of 30 days has 

elapsed. 

Language is included under Title II permitting transfers between 

mandatory and discretionary accounts, limiting and providing for 

the use of certain funds, funding administrative expenses associated with life insurance programs from excess program revenues, 

allowing reimbursement from enhanced-use leases and for certain 

services, requiring notification of new lease agreements, requiring 

disclosure of insurance and income information, allowing a recovery 

audit collection program, allowing veterans in the State of Alaska 

to use Indian Health Service facilities under certain conditions, allowing medical services funds for recreational and funeral expenses, and limiting the obligation of non-recurring maintenance 

funds during the last two months of the fiscal year. 

Language is included under the Court of Appeals for Veterans 

Claims, Salaries and Expenses, to permit the use of funds for a pro 

bono program. 

Language is included under Cemeterial Expenses, Army, Salaries 

and Expenses, to permit the use of funds for parking maintenance 

and repairs. 

Language is included under Title IV to limit the use of funds for 

architect and engineer contracts under certain circumstances. 

Language is included under Title IV to limit the use of funds for 

awarding contracts to foreign contractors under certain circumstances. 


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Language is included under Title IV to limit the use of funds for 

Federal entities when they are not in compliance with Federal law 

relating to risk assessment, the protection of private property 

rights, or unfunded mandates. 

Language is included under Title IV to limit the use of funds for 

publicity or propaganda designed to support or defeat legislation 

pending before Congress. 

Language is included under Title IV to prohibit the use of funds 

for a project or program named for a serving Member of the United 

States Congress. 

Language is included under Title IV to prohibit funding being 

distributed to the Association of Community Organizations for Reform Now or its subsidiaries. 

Language is included under Title IV prohibiting funds from being 

used to maintain or establish a computer network unless such network blocks the viewing, downloading, and exchanging of pornography. 

Language is included under Title IV prohibiting funds from being 

used to execute a contract for goods or services where a contractor 

has not complied with Executive Order 12989. 

APPROPRIATIONS NOT AUTHORIZED BY LAW

Pursuant to clause 3(f)(1)(B) 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 for 

the period concerned: 


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TRANSFER OF FUNDS

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

of Representatives, the following statements are submitted describing the transfer of funds provided in the accompanying bill. 

Language is included to allow Military Construction, DefenseWide funds to be transferred to other military construction and 

family housing appropriations to be merged with and available for 

the same purpose and same time period. 

Language is included to allow BRAC proceeds to be transferred 

to the BRAC account to be merged with and available for the same 

purpose and same time period. 

Language is included to allow for the transfer of funds from 

Family Housing, Construction accounts to the Department of Defense Family Housing Improvement Fund and funds from Military 

Construction accounts to the Department of Defense Military Unaccompanied Housing Improvement Fund. 

Language is included to provide transfer authority from the 

BRAC account to the Homeowners Assistance Program. 

Language is included to allow the transfer of expired funds to the 

‘‘Foreign Currency Fluctuations, Construction, Defense’’ account. 

Language is included to transfer not to exceed $32,187,000 from 

Compensation and Pensions to General Operating Expenses, Veterans Benefits Administration, Medical Support and Compliance, 

and Information Technology Systems. These funds are for the administrative costs of implementing cost-savings proposals required 

by the Omnibus Budget Reconciliation Act of 1990 and the Veterans’ Benefits Act of 1992. Language is also included permitting 

necessary sums to be transferred to the medical facilities revolving 

fund to augment funding of medical centers for nursing home care 

provided to pensioners as authorized by the Veterans’ Benefits Act 

of 1992. 

Language is included to provide authority for the Department of 

Veterans Affairs for any funds appropriated in 2012 for Compensation and Pensions, Readjustment Benefits, and Veterans Insurance 

and Indemnities to be transferred among those three accounts. 

Language is included to transfer funds among the Medical Services, Medical Support and Compliance, and Medical Facilities accounts. 

Language is included to permit the transfer of funds from General Administration to General Operating Expenses, Veterans Benefits Administration. 

Language is included to permit the funds from three life insurance funds to be transferred to General Operating Expenses, Veterans Benefits Administration and Information Technology Systems for the costs of administering such programs. 

Language is included to permit up to $42,904,000 to be transferred to General Administration and Information Technology Systems from any funds appropriated in fiscal year 2012 to reimburse 

the Office of Resolution Management and the Office of Employment 

Discrimination Complaint Adjudication for services provided. 

Language is included to transfer certain funds derived from enhanced-use leasing activities to the Construction, Major Projects 

and Construction, Minor Projects accounts. 


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Language is included to transfer funds from the Medical Care 

Collections Fund to Medical Services. 

Language is included to allow the transfer of funds from the Capital Asset Fund to the Construction, Major Projects and Construction, Minor Projects accounts. 

Language is included to allow the transfer of funds from various 

accounts to the Information Technology Systems account subject to 

approval by the Committee. 

Language is included to allow the transfer of funds within Information Technology Systems between projects subject to approval by 

the Committee. 

Language is included to allow the transfer of funds provided for 

the Department of Veterans Affairs to the Joint Department of Defense-Department of Veterans Affairs Medical Facility Demonstration Fund. 

Language is included permitting funds deposited to the Medical 

Care Collections Fund for health care provided at a combined Federal medical facility to be transferred to the Joint Department of 

Defense-Department of Veterans Affairs Medical Facility Demonstration Fund. 

Language is included under the Department of Veterans Affairs that would transfer no less than $15,000,000 for the DoD/VA 

Health Care Sharing Incentive Fund as authorized by section 

8111(d) of title 38, United States Code. 

RESCISSIONS

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

of Representatives, the following table lists the rescissions in the 

accompanying bill: 

Department/activity 

Amounts 

recommended for 

rescission 

Department of Defense, Military Construction, Army ....................... $100,000,000 

Department of Defense, Military Construction, Air Force ................. 32,000,000 

Department of Defense, Military Construction, Navy and Marine 

Corps ................................................................................................... 25,000,000 

Department of Defense, Military Construction, Defense-Wide .......... 131,400,000 

Department of Defense, BRAC 1990 .................................................... 100,000,000 

Department of Defense, BRAC 2005 .................................................... 50,000,000 

CONSTITUTIONAL AUTHORITY

Pursuant to section 6(e) of the Committee Rules, the following 

statement is submitted regarding the specific powers granted to 

Congress in the Constitution to enact the accompanying bill or joint 

resolution. 

The principal constitutional authority for this legislation is 

clause 7 of section 9 of article I of the Constitution of the 

United States (the appropriation power), which states: ‘‘No 

Money shall be drawn from the Treasury, but in Consequence 

of Appropriations made by Law. . . .’’ In addition, clause 1 of 

section 8 of article I of the Constitution (the spending power) 

provides: ‘‘The Congress shall have the Power . . . to pay the 

Debts and provide for the common Defence and general Welfare of the United States . . . .’’ Together, these specific constitutional provisions establish the congressional power of the 

purse, granting Congress the authority to appropriate funds, to 


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determine their purpose, amount, and period of availability, 

and to set forth terms and conditions governing their use. 

COMPARISON WITH THE BUDGET RESOLUTION

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

of Representatives and section 308(a)(1)(A) of the Congressional 

Budget Act of 1974, the following table compares the levels of new 

budget authority provided in the bill with the appropriate allocation under section 302(b) of the Budget Act. 

[In millions of dollars] 

302(b) allocation This bill 

Budget 

authority Outlays Budget authority Outlays 

Discretionary .................................................................................. $72,535 $78,492 $72,535 $78,492 

Mandatory ...................................................................................... 67,916 67,726 67,916 67,726 

FIVE-YEAR PROJECTION OF OUTLAYS

Pursuant to section 308(a)(1)(B) of the Congressional Budget Act 

of 1974, the following table contains five-year projections prepared 

by the Congressional Budget Office of outlays associated with the 

budget authority provided in the accompanying bill: 

Millions 

Budget Authority ............................................................................................. $72,535 

Outlays: 

2012 ........................................................................................................... 76,415 

2013 ........................................................................................................... 7,414 

2014 ........................................................................................................... 5,475 

2015 ........................................................................................................... 2,175 

2016 ........................................................................................................... 1,546 

ASSISTANCE TO STATE AND LOCAL GOVERNMENTS

Pursuant to section 308(a)(1)(C) of the Congressional Budget Act 

of 1974, the amount of financial assistance to State and local governments is as follows: 

Millions 

Budget Authority ............................................................................................. $178 

Fiscal Year 2012 outlays resulting therefrom ............................................... 32 

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. 

COMPLIANCE WITH RULE XIII, CL. 3(e) (RAMSEYER RULE) 

In compliance with clause 3(e) of rule XIII of the Rules of the 

House of Representatives, changes in existing law made by the bill, 

as reported, are shown as follows (new matter is printed in italic 

and existing law in which no change is proposed is shown in 

roman): 


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TITLE 38, UNITED STATES CODE 

* * * * * * * 

PART IV—GENERAL ADMINISTRATIVE PROVISIONS 

* * * * * * * 

CHAPTER 57—RECORDS AND INVESTIGATIONS 

* * * * * * * 

SUBCHAPTER I—RECORDS 

§ 5701. Confidential nature of claims 

(a) * * * 

* * * * * * * 

(l)(1) The Secretary shall disclose to a State controlled substance 

monitoring program, including a program under section 399O of 

the Public Health Service Act (42 U.S.C. 280g–3), the name and address of a veteran or a dependent of a veteran to the extent necessary 

to prevent misuse and diversion of prescription medicines. 

(2) In this subsection, the terms ‘‘State’’ and ‘‘controlled substance’’ have the meaning given such terms in section 399O(m) of 

the Public Health Service Act (42 U.S.C. 280g–3(m)). 

* * * * * * * 

PART V—BOARDS, ADMINISTRATIONS, AND SERVICES 

* * * * * * * 

CHAPTER 73—VETERANS HEALTH ADMINISTRATIONORGANIZATION AND FUNCTIONS 

* * * * * * * 

§ 7332. Confidentiality of certain medical records 

(a) * * * 

(b)(1) * * * 

(2) Whether or not any patient or subject, with respect to whom 

any given record referred to in subsection (a) is maintained, gives 

written consent, the content of such record may be disclosed by the 

Secretary as follows: 

(A) * * * 

* * * * * * * 

(G)(i) To a State controlled substance monitoring program, 

including a program under section 399O of the Public Health 

Service Act (42 U.S.C. 280g–3), to the extent necessary to prevent misuse and diversion of prescription medicines. 

(ii) In this subparagraph, the terms ‘‘State’’ and ‘‘controlled 

substance’’ have the meanings given such terms in section 

399O(m) of the Public Health Service Act (42 U.S.C. 280g– 

3(m)). 

* * * * * * * 


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DISCLOSURE OF EARMARKS AND CONGRESSIONALLY DIRECTED

SPENDING ITEMS

Neither the bill nor the report contains any Congressional earmarks, limited tax benefits, or limited tariff benefits as defined in 

clause 9 of rule XXI. 

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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(89) 

MINORITY VIEWS 

The Fiscal Year 2012 Military Construction, Veterans’ Administration and Related Agencies appropriations bill sufficiently funds 

critical military construction, family housing and quality of life improvements for our brave men and women in uniform and their 

families. The Committee fully funded the Administration’s request 

for critical military construction, which includes the construction/ 

replacement of Department of Defense Education Activity schools. 

A total of 15 schools, six schools in the United States and nine 

schools at overseas installations will be refurbished with this funding. In addition the bill also provides funding for the Medical Center Replacement in Germany where a large proportion of serious 

casualties from the Iraq and Afghanistan theaters are treated. We 

are pleased to see that the bill is making this important investment. 

This bill also provides adequate funding for VA programs such 

as medical care and the National Cemetery Administration. Funding is also included for VA programs to address potential hazardous seismic, life safety and infrastructure issues at VA facilities 

to deliver quality care. There is no greater way to honor the Veterans who have served our country than to make sure that they 

have the best medical care and facilities with which to treat them. 

The Administration’s request for our nation’s cemeteries and battle monuments to honor those soldiers who have made the ultimate 

sacrifice for our nation is also funded. 

Unfortunately, the Committee adopted an amendment to eliminate funding to implement Executive Order 13502, issued in February 2009, which addresses Project Labor Agreements (PLA). The 

order encourages executive agencies to consider the use of project 

labor agreements in connection with large-scale construction 

projects in order ‘‘to promote economy and efficiency in Federal procurement.’’ Executive Order 13502 does not mandate use of a PLA 

but simply encourages federal officials to consider whether a PLA 

is the most appropriate labor agreement for a particular construction project. 

Importantly, the Executive Order requires any PLA to contain 

requirements aimed at ensuring federal contracts are awarded fairly and openly. Among other things, it provides for an open competition for all contracts and subcontracts; contains guarantees against 

strikes, lockouts, and similar job disruptions; provides binding procedures for resolving labor disputes and encourages cooperation on 

productivity and health and safety issues. This important rule benefits both the labor force and mangement. 

It is surprising that the Committee adopted an amendment that 

opposes economy in federal procurement, open competition, and 

guarantees against strikes and job disruptions. 


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While the Fiscal Year 2012 Military Construction, Veterans’ Administration and Related Agencies appropriations bill meets the 

needs of our military and veterans’ communities for the coming 

year, we continue to oppose the language prohibiting the use of 

funds to encourage economy and efficiency in federal procurement. 

NORMAN D. DICKS. 

SANFORD D. BISHOP, Jr. 

Æ 


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