H. R. 2658

One Hundred Eighth Congress

of the

United States of America

AT THE FIRST SESSION

Begun and held at the City of Washington on Tuesday,

the seventh day of January, two thousand and three

An Act

Making appropriations for the Department of Defense for the fiscal year ending

September 30, 2004, and for other purposes.

Be it enacted by the Senate and House of Representatives of

the United States of America in Congress assembled, That the

following sums are appropriated, out of any money in the Treasury

not otherwise appropriated, for the fiscal year ending September

30, 2004, for military functions administered by the Department

of Defense, and for other purposes, namely:

TITLE I

MILITARY PERSONNEL

MILITARY PERSONNEL, ARMY

For pay, allowances, individual clothing, subsistence, interest

on deposits, gratuities, permanent change of station travel

(including all expenses thereof for organizational movements), and

expenses of temporary duty travel between permanent duty stations, for members of the Army on active duty, (except members

of reserve components provided for elsewhere), cadets, and aviation

cadets; and for payments pursuant to section 156 of Public Law

97–377, as amended (42 U.S.C. 402 note), and to the Department

of Defense Military Retirement Fund, $28,247,667,000.

MILITARY PERSONNEL, NAVY

For pay, allowances, individual clothing, subsistence, interest

on deposits, gratuities, permanent change of station travel

(including all expenses thereof for organizational movements), and

expenses of temporary duty travel between permanent duty stations, for members of the Navy on active duty (except members

of the Reserve provided for elsewhere), midshipmen, and aviation

cadets; and for payments pursuant to section 156 of Public Law

97–377, as amended (42 U.S.C. 402 note), and to the Department

of Defense Military Retirement Fund, $23,217,298,000.

MILITARY PERSONNEL, MARINE CORPS

For pay, allowances, individual clothing, subsistence, interest

on deposits, gratuities, permanent change of station travel

(including all expenses thereof for organizational movements), and

expenses of temporary duty travel between permanent duty stations, for members of the Marine Corps on active duty (except
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members of the Reserve provided for elsewhere); and for payments

pursuant to section 156 of Public Law 97–377, as amended (42

U.S.C. 402 note), and to the Department of Defense Military Retirement Fund, $8,971,897,000.

MILITARY PERSONNEL, AIR FORCE

For pay, allowances, individual clothing, subsistence, interest

on deposits, gratuities, permanent change of station travel

(including all expenses thereof for organizational movements), and

expenses of temporary duty travel between permanent duty stations, for members of the Air Force on active duty (except members

of reserve components provided for elsewhere), cadets, and aviation

cadets; and for payments pursuant to section 156 of Public Law

97–377, as amended (42 U.S.C. 402 note), and to the Department

of Defense Military Retirement Fund, $22,910,868,000.

RESERVE PERSONNEL, ARMY

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

and related expenses for personnel of the Army Reserve on active

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

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

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

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

or while undergoing reserve training, or while performing drills

or equivalent duty or other duty, and for members of the Reserve

Officers’ Training Corps, and expenses authorized by section 16131

of title 10, United States Code; and for payments to the Department

of Defense Military Retirement Fund, $3,568,725,000.

RESERVE PERSONNEL, NAVY

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

and related expenses for personnel of the Navy Reserve on active

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

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

States Code, in connection with performing duty specified in section

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

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

members of the Reserve Officers’ Training Corps, and expenses

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

for payments to the Department of Defense Military Retirement

Fund, $2,002,727,000.

RESERVE PERSONNEL, MARINE CORPS

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

and related expenses for personnel of the Marine Corps Reserve

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

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

10, United States Code, in connection with performing duty specified

in section 12310(a) of title 10, United States Code, or while undergoing reserve training, or while performing drills or equivalent

duty, and for members of the Marine Corps platoon leaders class,

and expenses authorized by section 16131 of title 10, United States

Code; and for payments to the Department of Defense Military

Retirement Fund, $571,444,000.
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RESERVE PERSONNEL, AIR FORCE

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

and related expenses for personnel of the Air Force Reserve on

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

United States Code, or while serving on active duty under section

12301(d) of title 10, United States Code, in connection with performing duty specified in section 12310(a) of title 10, United States

Code, or while undergoing reserve training, or while performing

drills or equivalent duty or other duty, and for members of the

Air Reserve Officers’ Training Corps, and expenses authorized by

section 16131 of title 10, United States Code; and for payments

to the Department of Defense Military Retirement Fund,

$1,288,088,000.

NATIONAL GUARD PERSONNEL, ARMY

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

and related expenses for personnel of the Army National Guard

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

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

on duty under section 12301(d) of title 10 or section 502(f) of

title 32, United States Code, in connection with performing duty

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

while undergoing training, or while performing drills or equivalent

duty or other duty, and expenses authorized by section 16131 of

title 10, United States Code; and for payments to the Department

of Defense Military Retirement Fund, $5,500,369,000.

NATIONAL GUARD PERSONNEL, AIR FORCE

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

and related expenses for personnel of the Air National Guard on

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

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

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

United States Code, in connection with performing duty specified

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

other duty, and expenses authorized by section 16131 of title 10,

United States Code; and for payments to the Department of Defense

Military Retirement Fund, $2,174,598,000.

TITLE II

OPERATION AND MAINTENANCE

OPERATION AND MAINTENANCE, ARMY

(INCLUDING TRANSFER OF FUNDS)

For expenses, not otherwise provided for, necessary for the

operation and maintenance of the Army, as authorized by law;

and not to exceed $11,034,000 can be used for emergencies and

extraordinary expenses, to be expended on the approval or authority

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

his certificate of necessity for confidential military purposes,

$25,029,346,000: Provided, That of the funds appropriated in this
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paragraph, not less than $355,000,000 shall be made available

only for conventional ammunition care and maintenance: Provided

further, That of funds made available under this heading,

$2,500,000 shall be available for Fort Baker, in accordance with

the terms and conditions as provided under the heading ‘‘Operation

and Maintenance, Army’’, in Public Law 107–117.

OPERATION AND MAINTENANCE, NAVY

For expenses, not otherwise provided for, necessary for the

operation and maintenance of the Navy and the Marine Corps,

as authorized by law; and not to exceed $4,463,000 can be used

for emergencies and extraordinary expenses, to be expended on

the approval or authority of the Secretary of the Navy, and payments may be made on his certificate of necessity for confidential

military purposes, $28,146,658,000.

OPERATION AND MAINTENANCE, MARINE CORPS

For expenses, not otherwise provided for, necessary for the

operation and maintenance of the Marine Corps, as authorized

by law, $3,440,323,000.

OPERATION AND MAINTENANCE, AIR FORCE

For expenses, not otherwise provided for, necessary for the

operation and maintenance of the Air Force, as authorized by law;

and not to exceed $7,801,000 can be used for emergencies and

extraordinary expenses, to be expended on the approval or authority

of the Secretary of the Air Force, and payments may be made

on his certificate of necessity for confidential military purposes,

$26,904,731,000: Provided, That notwithstanding any other provision of law, that of the funds available under this heading, $750,000

shall only be available to the Secretary of the Air Force for a

grant to Florida Memorial College for the purpose of funding

minority aviation training.

OPERATION AND MAINTENANCE, DEFENSE-WIDE

(INCLUDING TRANSFER OF FUNDS)

For expenses, not otherwise provided for, necessary for the

operation and maintenance of activities and agencies of the Department of Defense (other than the military departments), as authorized by law, $16,226,841,000, of which not to exceed $30,000,000

may be available for the CINC initiative fund; and of which not

to exceed $40,000,000 can be used for emergencies and extraordinary expenses, to be expended on the approval or authority of

the Secretary of Defense, and payments may be made on his certificate of necessity for confidential military purposes: Provided, That

notwithstanding any other provision of law, of the funds provided

in this Act for Civil Military programs under this heading, $500,000

shall be available for a grant for Outdoor Odyssey, Roaring Run,

Pennsylvania, to support the Youth Development and Leadership

program and Department of Defense STARBASE program: Provided

further, That none of the funds appropriated or otherwise made

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

department, or the service headquarters of one of the Armed Forces

into a legislative affairs or legislative liaison office: Provided further,

That $4,700,000, to remain available until expended, is available

only for expenses relating to certain classified activities, and may

be transferred as necessary by the Secretary to operation and

maintenance appropriations or research, development, test and

evaluation appropriations, to be merged with and to be available

for the same time period as the appropriations to which transferred:

Provided further, That any ceiling on the investment item unit

cost of items that may be purchased with operation and maintenance funds shall not apply to the funds described in the preceding

proviso: Provided further, That the transfer authority provided

under this heading is in addition to any other transfer authority

provided elsewhere in this Act.

OPERATION AND MAINTENANCE, ARMY RESERVE

For expenses, not otherwise provided for, necessary for the

operation and maintenance, including training, organization, and

administration, of the Army Reserve; repair of facilities and equipment; hire of passenger motor vehicles; travel and transportation;

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

equipment; and communications, $1,998,609,000.

OPERATION AND MAINTENANCE, NAVY RESERVE

For expenses, not otherwise provided for, necessary for the

operation and maintenance, including training, organization, and

administration, of the Navy Reserve; repair of facilities and equipment; hire of passenger motor vehicles; travel and transportation;

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

equipment; and communications, $1,172,921,000.

OPERATION AND MAINTENANCE, MARINE CORPS RESERVE

For expenses, not otherwise provided for, necessary for the

operation and maintenance, including training, organization, and

administration, of the Marine Corps Reserve; repair of facilities

and equipment; hire of passenger motor vehicles; travel and

transportation; care of the dead; recruiting; procurement of services,

supplies, and equipment; and communications, $173,952,000.

OPERATION AND MAINTENANCE, AIR FORCE RESERVE

For expenses, not otherwise provided for, necessary for the

operation and maintenance, including training, organization, and

administration, of the Air Force Reserve; repair of facilities and

equipment; hire of passenger motor vehicles; travel and transportation; care of the dead; recruiting; procurement of services, supplies, and equipment; and communications, $2,179,388,000.

OPERATION AND MAINTENANCE, ARMY NATIONAL GUARD

For expenses of training, organizing, and administering the

Army National Guard, including medical and hospital treatment

and related expenses in non-Federal hospitals; maintenance, operation, and repairs to structures and facilities; hire of passenger
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motor vehicles; personnel services in the National Guard Bureau;

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

Army personnel on active duty, for Army National Guard division,

regimental, and battalion commanders while inspecting units in

compliance with National Guard Bureau regulations when specifically authorized by the Chief, National Guard Bureau; supplying

and equipping the Army National Guard as authorized by law;

and expenses of repair, modification, maintenance, and issue of

supplies and equipment (including aircraft), $4,340,581,000.

OPERATION AND MAINTENANCE, AIR NATIONAL GUARD

For operation and maintenance of the Air National Guard,

including medical and hospital treatment and related expenses

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

necessary expenses of facilities for the training and administration

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

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

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

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

and equipment, including such as may be furnished from stocks

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

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

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

for Air National Guard commanders while inspecting units in

compliance with National Guard Bureau regulations when specifically authorized by the Chief, National Guard Bureau,

$4,431,216,000.

OVERSEAS CONTINGENCY OPERATIONS TRANSFER ACCOUNT

(INCLUDING TRANSFER OF FUNDS)

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

transfer these funds only to military personnel accounts; operation

and maintenance accounts within this title; the Defense Health

Program appropriation; procurement accounts; research, development, test and evaluation accounts; and to working capital funds:

Provided further, That the funds transferred shall be merged with

and shall be available for the same purposes and for the same

time period, as the appropriation to which transferred: Provided

further, That upon a determination that all or part of the funds

transferred from this appropriation are not necessary for the purposes provided herein, such amounts may be transferred back to

this appropriation: Provided further, That the transfer authority

provided in this paragraph is in addition to any other transfer

authority contained elsewhere in this Act.

UNITED STATES COURT OF APPEALS FOR THE ARMED FORCES

For salaries and expenses necessary for the United States

Court of Appeals for the Armed Forces, $10,333,000, of which not

to exceed $2,500 can be used for official representation purposes.
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ENVIRONMENTAL RESTORATION, ARMY

(INCLUDING TRANSFER OF FUNDS)

For the Department of the Army, $396,018,000, to remain

available until transferred: Provided, That the Secretary of the

Army shall, upon determining that such funds are required for

environmental restoration, reduction and recycling of hazardous

waste, removal of unsafe buildings and debris of the Department

of the Army, or for similar purposes, transfer the funds made

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

be available for the same purposes and for the same time period

as the appropriations to which transferred: Provided further, That

upon a determination that all or part of the funds transferred

from this appropriation are not necessary for the purposes provided

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

ENVIRONMENTAL RESTORATION, NAVY

(INCLUDING TRANSFER OF FUNDS)

For the Department of the Navy, $256,153,000, to remain available until transferred: Provided, That the Secretary of the Navy

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

removal of unsafe buildings and debris of the Department of the

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

by this appropriation to other appropriations made available to

the Department of the Navy, to be merged with and to be available

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

amounts may be transferred back to this appropriation.

ENVIRONMENTAL RESTORATION, AIR FORCE

(INCLUDING TRANSFER OF FUNDS)

For the Department of the Air Force, $384,307,000, to remain

available until transferred: Provided, That the Secretary of the

Air Force shall, upon determining that such funds are required

for environmental restoration, reduction and recycling of hazardous

waste, removal of unsafe buildings and debris of the Department

of the Air Force, or for similar purposes, transfer the funds made

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

to be available for the same purposes and for the same time period

as the appropriations to which transferred: Provided further, That

upon a determination that all or part of the funds transferred

from this appropriation are not necessary for the purposes provided

herein, such amounts may be transferred back to this appropriation.
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ENVIRONMENTAL RESTORATION, DEFENSE-WIDE

(INCLUDING TRANSFER OF FUNDS)

For the Department of Defense, $24,081,000, to remain available until transferred: Provided, That the Secretary of Defense

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

removal of unsafe buildings and debris of the Department of

Defense, or for similar purposes, transfer the funds made available

by this appropriation to other appropriations made available to

the Department of Defense, to be merged with and to be available

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

amounts may be transferred back to this appropriation.

ENVIRONMENTAL RESTORATION, FORMERLY USED DEFENSE SITES

(INCLUDING TRANSFER OF FUNDS)

For the Department of the Army, $284,619,000, to remain

available until transferred: Provided, That the Secretary of the

Army shall, upon determining that such funds are required for

environmental restoration, reduction and recycling of hazardous

waste, removal of unsafe buildings and debris at sites formerly

used by the Department of Defense, transfer the funds made available by this appropriation to other appropriations made available

to the Department of the Army, to be merged with and to be

available for the same purposes and for the same time period

as the appropriations to which transferred: Provided further, That

upon a determination that all or part of the funds transferred

from this appropriation are not necessary for the purposes provided

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

OVERSEAS HUMANITARIAN, DISASTER, AND CIVIC AID

For expenses relating to the Overseas Humanitarian, Disaster,

and Civic Aid programs of the Department of Defense (consisting

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

2561 of title 10, United States Code), $59,000,000, to remain available until September 30, 2005.

FORMER SOVIET UNION THREAT REDUCTION

For assistance to the republics of the former Soviet Union,

including assistance provided by contract or by grants, for facilitating the elimination and the safe and secure transportation and

storage of nuclear, chemical and other weapons; for establishing

programs to prevent the proliferation of weapons, weapons components, and weapon-related technology and expertise; for programs

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

components and weapons technology and expertise, and for defense

and military contacts, $450,800,000, to remain available until September 30, 2006: Provided, That of the amounts provided under

this heading, $10,000,000 shall be available only to support the
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dismantling and disposal of nuclear submarines, submarine reactor

components, and warheads in the Russian Far East.

TITLE III

PROCUREMENT

AIRCRAFT PROCUREMENT, ARMY

For construction, procurement, production, modification, and

modernization of aircraft, equipment, including ordnance, ground

handling equipment, spare parts, and accessories therefor; specialized equipment and training devices; expansion of public and private

plants, including the land necessary therefor, for the foregoing

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

and construction prosecuted thereon prior to approval of title; and

procurement and installation of equipment, appliances, and

machine tools in public and private plants; reserve plant and

Government and contractor-owned equipment layaway; and other

expenses necessary for the foregoing purposes, $2,154,035,000, to

remain available for obligation until September 30, 2006.

MISSILE PROCUREMENT, ARMY

For construction, procurement, production, modification, and

modernization of missiles, equipment, including ordnance, ground

handling equipment, spare parts, and accessories therefor; specialized equipment and training devices; expansion of public and private

plants, including the land necessary therefor, for the foregoing

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

and construction prosecuted thereon prior to approval of title; and

procurement and installation of equipment, appliances, and

machine tools in public and private plants; reserve plant and

Government and contractor-owned equipment layaway; and other

expenses necessary for the foregoing purposes, $1,505,462,000, to

remain available for obligation until September 30, 2006.

PROCUREMENT OF WEAPONS AND TRACKED COMBAT VEHICLES,

ARMY

For construction, procurement, production, and modification

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

and training devices; expansion of public and private plants,

including the land necessary therefor, for the foregoing purposes,

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

construction prosecuted thereon prior to approval of title; and

procurement and installation of equipment, appliances, and

machine tools in public and private plants; reserve plant and

Government and contractor-owned equipment layaway; and other

expenses necessary for the foregoing purposes, $1,857,054,000, to

remain available for obligation until September 30, 2006: Provided,

That of the funds made available under this heading, $35,000,000

shall be available only for advance procurement items for the fifth

and sixth Stryker Brigade Combat Teams.
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PROCUREMENT OF AMMUNITION, ARMY

For construction, procurement, production, and modification

of ammunition, and accessories therefor; specialized equipment and

training devices; expansion of public and private plants, including

ammunition facilities authorized by section 2854 of title 10, United

States Code, and the land necessary therefor, for the foregoing

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

and construction prosecuted thereon prior to approval of title; and

procurement and installation of equipment, appliances, and

machine tools in public and private plants; reserve plant and

Government and contractor-owned equipment layaway; and other

expenses necessary for the foregoing purposes, $1,387,759,000, to

remain available for obligation until September 30, 2006.

OTHER PROCUREMENT, ARMY

For construction, procurement, production, and modification

of vehicles, including tactical, support, and non-tracked combat

vehicles; the purchase of passenger motor vehicles for replacement

only; and the purchase of 4 vehicles required for physical security

of personnel, notwithstanding price limitations applicable to passenger vehicles but not to exceed $180,000 per vehicle; communications and electronic equipment; other support equipment; spare

parts, ordnance, and accessories therefor; specialized equipment

and training devices; expansion of public and private plants,

including the land necessary therefor, for the foregoing purposes,

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

construction prosecuted thereon prior to approval of title; and

procurement and installation of equipment, appliances, and

machine tools in public and private plants; reserve plant and

Government and contractor-owned equipment layaway; and other

expenses necessary for the foregoing purposes, $4,774,452,000, to

remain available for obligation until September 30, 2006.

AIRCRAFT PROCUREMENT, NAVY

For construction, procurement, production, modification, and

modernization of aircraft, equipment, including ordnance, spare

parts, and accessories therefor; specialized equipment; expansion

of public and private plants, including the land necessary therefor,

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

construction prosecuted thereon prior to approval of title; and

procurement and installation of equipment, appliances, and

machine tools in public and private plants; reserve plant and

Government and contractor-owned equipment layaway,

$9,110,848,000, to remain available for obligation until September

30, 2006.

WEAPONS PROCUREMENT, NAVY

For construction, procurement, production, modification, and

modernization of missiles, torpedoes, other weapons, and related

support equipment including spare parts, and accessories therefor;

expansion of public and private plants, including the land necessary

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

and construction prosecuted thereon prior to approval of title; and

procurement and installation of equipment, appliances, and
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machine tools in public and private plants; reserve plant and

Government and contractor-owned equipment layaway,

$2,095,784,000, to remain available for obligation until September

30, 2006.

PROCUREMENT OF AMMUNITION, NAVY AND MARINE CORPS

For construction, procurement, production, and modification

of ammunition, and accessories therefor; specialized equipment and

training devices; expansion of public and private plants, including

ammunition facilities authorized by section 2854 of title 10, United

States Code, and the land necessary therefor, for the foregoing

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

and construction prosecuted thereon prior to approval of title; and

procurement and installation of equipment, appliances, and

machine tools in public and private plants; reserve plant and

Government and contractor-owned equipment layaway; and other

expenses necessary for the foregoing purposes, $934,905,000, to

remain available for obligation until September 30, 2006.

SHIPBUILDING AND CONVERSION, NAVY

For expenses necessary for the construction, acquisition, or

conversion of vessels as authorized by law, including armor and

armament thereof, plant equipment, appliances, and machine tools

and installation thereof in public and private plants; reserve plant

and Government and contractor-owned equipment layaway;

procurement of critical, long leadtime components and designs for

vessels to be constructed or converted in the future; and expansion

of public and private plants, including land necessary therefor,

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

construction prosecuted thereon prior to approval of title, as follows: Carrier Replacement Program (AP), $1,186,564,000;

NSSN, $1,511,935,000;

NSSN (AP), $827,172,000;

SSGN, $930,700,000;

SSGN (AP), $236,600,000;

CVN Refuelings (AP), $232,832,000;

SSN Submarine Refuelings, $450,000,000;

SSN Submarine Refuelings (AP), $10,351,000;

SSBN Submarine Refuelings (AP), $105,800,000;

DDG–51 Destroyer, $3,218,311,000;

LPD–17, $1,192,034,000;

LPD–17 (AP), $135,000,000;

LHD–8, $355,006,000; LCAC Landing Craft Air Cushion, $73,087,000;

Mine Hunter SWATH, $4,500,000;

Prior year shipbuilding costs, $635,502,000;

Service Craft, $23,480,000; and

For outfitting, post delivery, conversions, and first destina- tion transportation, $338,749,000.

In all: $11,467,623,000, to remain available for obligation until

September 30, 2008: Provided, That additional obligations may

be incurred after September 30, 2008, for engineering services,

tests, evaluations, and other such budgeted work that must be

performed in the final stage of ship construction: Provided further,

That none of the funds provided under this heading for the construction or conversion of any naval vessel to be constructed in shipyards
H. R. 2658—12

in the United States shall be expended in foreign facilities for

the construction of major components of such vessel: Provided further, That none of the funds provided under this heading shall

be used for the construction of any naval vessel in foreign shipyards.

OTHER PROCUREMENT, NAVY

For procurement, production, and modernization of support

equipment and materials not otherwise provided for, Navy ordnance

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

for conversion); the purchase of passenger motor vehicles for

replacement only, and the purchase of 7 vehicles required for physical security of personnel, notwithstanding price limitations

applicable to passenger vehicles but not to exceed $200,000 per

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

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

acquired, and construction prosecuted thereon prior to approval

of title; and procurement and installation of equipment, appliances,

and machine tools in public and private plants; reserve plant and

Government and contractor-owned equipment layaway,

$4,941,098,000, to remain available for obligation until September

30, 2006.

PROCUREMENT, MARINE CORPS

For expenses necessary for the procurement, manufacture, and

modification of missiles, armament, military equipment, spare

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

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

reserve plant and Government and contractor-owned equipment

layaway; vehicles for the Marine Corps, including the purchase

of passenger motor vehicles for replacement only; and expansion

of public and private plants, including land necessary therefor,

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

construction prosecuted thereon prior to approval of title,

$1,165,727,000, to remain available for obligation until September

30, 2006.

AIRCRAFT PROCUREMENT, AIR FORCE

For construction, procurement, and modification of aircraft and

equipment, including armor and armament, specialized ground handling equipment, and training devices, spare parts, and accessories

therefor; specialized equipment; expansion of public and private

plants, Government-owned equipment and installation thereof in

such plants, erection of structures, and acquisition of land, for

the foregoing purposes, and such lands and interests therein, may

be acquired, and construction prosecuted thereon prior to approval

of title; reserve plant and Government and contractor-owned equipment layaway; and other expenses necessary for the foregoing purposes including rents and transportation of things, $12,086,201,000,

to remain available for obligation until September 30, 2006.

MISSILE PROCUREMENT, AIR FORCE

For construction, procurement, and modification of missiles,

spacecraft, rockets, and related equipment, including spare parts

and accessories therefor, ground handling equipment, and training
H. R. 2658—13

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

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

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

prosecuted thereon prior to approval of title; reserve plant and

Government and contractor-owned equipment layaway; and other

expenses necessary for the foregoing purposes including rents and

transportation of things, $4,165,633,000, to remain available for

obligation until September 30, 2006.

PROCUREMENT OF AMMUNITION, AIR FORCE

For construction, procurement, production, and modification

of ammunition, and accessories therefor; specialized equipment and

training devices; expansion of public and private plants, including

ammunition facilities authorized by section 2854 of title 10, United

States Code, and the land necessary therefor, for the foregoing

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

and construction prosecuted thereon prior to approval of title; and

procurement and installation of equipment, appliances, and

machine tools in public and private plants; reserve plant and

Government and contractor-owned equipment layaway; and other

expenses necessary for the foregoing purposes, $1,262,725,000, to

remain available for obligation until September 30, 2006.

OTHER PROCUREMENT, AIR FORCE

For procurement and modification of equipment (including

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

spare parts therefor, not otherwise provided for; the purchase of

passenger motor vehicles for replacement only, and the purchase

of 1 vehicle required for physical security of personnel, notwithstanding price limitations applicable to passenger vehicles but not

to exceed $200,000 per vehicle; lease of passenger motor vehicles;

and expansion of public and private plants, Government-owned

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

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

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

Government and contractor-owned equipment layaway,

$11,558,799,000, to remain available for obligation until September

30, 2006.

PROCUREMENT, DEFENSE-WIDE

For expenses of activities and agencies of the Department of

Defense (other than the military departments) necessary for

procurement, production, and modification of equipment, supplies,

materials, and spare parts therefor, not otherwise provided for;

the purchase of passenger motor vehicles for replacement only,

including not to exceed 3 passenger motor vehicles for the Defense

Security Service; the purchase of 4 vehicles required for physical

security of personnel, notwithstanding price limitations applicable

to passenger vehicles but not to exceed $200,000 per vehicle; expansion of public and private plants, equipment, and installation

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

land for the foregoing purposes, and such lands and interests
H. R. 2658—14

therein, may be acquired, and construction prosecuted thereon prior

to approval of title; reserve plant and Government and contractorowned equipment layaway, $3,709,926,000, to remain available for

obligation until September 30, 2006.

NATIONAL GUARD AND RESERVE EQUIPMENT

For procurement of aircraft, missiles, tracked combat vehicles,

ammunition, other weapons, and other procurement for the reserve

components of the Armed Forces, $400,000,000, to remain available

for obligation until September 30, 2006: Provided, That the Chiefs

of the Reserve and National Guard components shall, not later

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

to the congressional defense committees the modernization priority

assessment for their respective Reserve or National Guard component.

DEFENSE PRODUCTION ACT PURCHASES

For activities by the Department of Defense pursuant to sections 108, 301, 302, and 303 of the Defense Production Act of

1950 (50 U.S.C. App. 2078, 2091, 2092, and 2093), $78,016,000,

to remain available until expended.

TITLE IV

RESEARCH, DEVELOPMENT, TEST AND EVALUATION

RESEARCH, DEVELOPMENT, TEST AND EVALUATION, ARMY

For expenses necessary for basic and applied scientific research,

development, test and evaluation, including maintenance,

rehabilitation, lease, and operation of facilities and equipment,

$10,363,941,000, to remain available for obligation until September

30, 2005: Provided, That of the amounts provided under this

heading, $8,500,000 for Molecular Genetics and Musculoskeletal

Research in program element 0602787A, shall remain available

until expended.

RESEARCH, DEVELOPMENT, TEST AND EVALUATION, NAVY

For expenses necessary for basic and applied scientific research,

development, test and evaluation, including maintenance,

rehabilitation, lease, and operation of facilities and equipment,

$15,146,383,000, to remain available for obligation until September

30, 2005: Provided, That funds appropriated in this paragraph

which are available for the V–22 may be used to meet unique

operational requirements of the Special Operations Forces: Provided

further, That funds appropriated in this paragraph shall be available for the Cobra Judy program.

RESEARCH, DEVELOPMENT, TEST AND EVALUATION, AIR FORCE

For expenses necessary for basic and applied scientific research,

development, test and evaluation, including maintenance,

rehabilitation, lease, and operation of facilities and equipment,

$20,500,984,000, to remain available for obligation until September

30, 2005.
H. R. 2658—15

RESEARCH, DEVELOPMENT, TEST AND EVALUATION, DEFENSE-WIDE

For expenses of activities and agencies of the Department of

Defense (other than the military departments), necessary for basic

and applied scientific research, development, test and evaluation;

advanced research projects as may be designated and determined

by the Secretary of Defense, pursuant to law; maintenance,

rehabilitation, lease, and operation of facilities and equipment,

$18,900,715,000, to remain available for obligation until September

30, 2005.

OPERATIONAL TEST AND EVALUATION, DEFENSE

For expenses, not otherwise provided for, necessary for the

independent activities of the Director, Operational Test and Evaluation, in the direction and supervision of operational test and evaluation, including initial operational test and evaluation which is conducted prior to, and in support of, production decisions; joint operational testing and evaluation; and administrative expenses in

connection therewith, $305,861,000, to remain available for obligation until September 30, 2005.

TITLE V

REVOLVING AND MANAGEMENT FUNDS

DEFENSE WORKING CAPITAL FUNDS

For the Defense Working Capital Funds, $1,641,507,000.

NATIONAL DEFENSE SEALIFT FUND

For National Defense Sealift Fund programs, projects, and

activities, and for expenses of the National Defense Reserve Fleet,

as established by section 11 of the Merchant Ship Sales Act of

1946 (50 U.S.C. App. 1744), and for the necessary expenses to

maintain and preserve a U.S.-flag merchant fleet to serve the

national security needs of the United States, $1,066,462,000, to

remain available until expended: Provided, That none of the funds

provided in this paragraph shall be used to award a new contract

that provides for the acquisition of any of the following major

components unless such components are manufactured in the

United States: auxiliary equipment, including pumps, for all shipboard services; propulsion system components (that is; engines,

reduction gears, and propellers); shipboard cranes; and spreaders

for shipboard cranes: Provided further, That the exercise of an

option in a contract awarded through the obligation of previously

appropriated funds shall not be considered to be the award of

a new contract: Provided further, That the Secretary of the military

department responsible for such procurement may waive the restrictions in the first proviso on a case-by-case basis by certifying in

writing to the Committees on Appropriations of the House of Representatives and the Senate that adequate domestic supplies are

not available to meet Department of Defense requirements on a

timely basis and that such an acquisition must be made in order

to acquire capability for national security purposes: Provided further, That, notwithstanding any other provision of law, $6,500,000

of the funds available under this heading shall be available in
H. R. 2658—16

addition to other amounts otherwise available, only to finance the

cost of constructing additional sealift capacity.

TITLE VI

OTHER DEPARTMENT OF DEFENSE PROGRAMS

DEFENSE HEALTH PROGRAM

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

care programs of the Department of Defense, as authorized by

law, $15,730,013,000, of which $14,914,816,000 shall be for Operation and maintenance, of which not to exceed 2 percent shall

remain available until September 30, 2005, and of which

$7,420,972,000 shall be available for contracts entered into under

the TRICARE program; of which $328,826,000, to remain available

for obligation until September 30, 2006, shall be for Procurement;

and of which $486,371,000, to remain available for obligation until

September 30, 2005, shall be for Research, development, test and

evaluation.

CHEMICAL AGENTS AND MUNITIONS DESTRUCTION, ARMY

For expenses, not otherwise provided for, necessary for the

destruction of the United States stockpile of lethal chemical agents

and munitions in accordance with the provisions of section 1412

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

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

that are not in the chemical weapon stockpile, $1,500,261,000,

of which $1,169,168,000 shall be for Operation and maintenance

to remain available until September 30, 2005; $79,212,000 shall

be for Procurement to remain available until September 30, 2006;

$251,881,000 shall be for Research, development, test and evaluation to remain available until September 30, 2005; and no less

than $132,677,000 may be for the Chemical Stockpile Emergency

Preparedness Program, of which $44,168,000 shall be for activities

on military installations and $88,509,000 shall be to assist State

and local governments: Provided, That notwithstanding any other

provision of law, $10,000,000 of the funds available under this

heading shall be expended only to fund Chemical Stockpile Emergency Preparedness Program evacuation route improvements in

Calhoun County, Alabama.

DRUG INTERDICTION AND COUNTER-DRUG ACTIVITIES, DEFENSE

(INCLUDING TRANSFER OF FUNDS)

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

Department of Defense for military personnel of the reserve components serving under the provisions of title 10 and title 32, United

States Code; for Operation and maintenance; for Procurement; and

for Research, development, test and evaluation, $835,616,000: Provided, That the funds appropriated under this heading shall be

available for obligation for the same time period and for the same

purpose as the appropriation to which transferred: Provided further,

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

from this appropriation are not necessary for the purposes provided
H. R. 2658—17

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

Provided further, That the transfer authority provided under this

heading is in addition to any other transfer authority contained

elsewhere in this Act.

OFFICE OF THE INSPECTOR GENERAL

For expenses and activities of the Office of the Inspector General in carrying out the provisions of the Inspector General Act

of 1978, as amended, $162,449,000, of which $160,049,000 shall

be for Operation and maintenance, of which not to exceed $700,000

is available for emergencies and extraordinary expenses to be

expended on the approval or authority of the Inspector General,

and payments may be made on the Inspector General’s certificate

of necessity for confidential military purposes; and of which

$300,000, to remain available until September 30, 2005, shall be

for Research, development, test and evaluation; and of which

$2,100,000, to remain available until September 30, 2006, shall

be for Procurement.

TITLE VII

RELATED AGENCIES

CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY

SYSTEM FUND

For payment to the Central Intelligence Agency Retirement

and Disability System Fund, to maintain the proper funding level

for continuing the operation of the Central Intelligence Agency

Retirement and Disability System, $226,400,000.

INTELLIGENCE COMMUNITY MANAGEMENT ACCOUNT

(INCLUDING TRANSFER OF FUNDS)

For necessary expenses of the Intelligence Community Management Account, $175,113,000, of which $26,081,000 for the Advanced

Research and Development Committee shall remain available until

September 30, 2005: Provided, That of the funds appropriated under

this heading, $44,300,000 shall be transferred to the Department

of Justice for the National Drug Intelligence Center to support

the Department of Defense’s counter-drug intelligence responsibilities, and of the said amount, $1,500,000 for Procurement shall

remain available until September 30, 2006 and $1,000,000 for

Research, development, test and evaluation shall remain available

until September 30, 2005: Provided further, That the National

Drug Intelligence Center shall maintain the personnel and technical

resources to provide timely support to law enforcement authorities

and the intelligence community by conducting document and computer exploitation of materials collected in Federal, State, and local

law enforcement activity associated with counter-drug, counter-terrorism, and national security investigations and operations.
H. R. 2658—18

PAYMENT TO KAHO’OLAWE ISLAND CONVEYANCE, REMEDIATION, AND

ENVIRONMENTAL RESTORATION FUND

For payment to Kaho’olawe Island Conveyance, Remediation,

and Environmental Restoration Fund, as authorized by law,

$18,430,000, to remain available until expended.

NATIONAL SECURITY EDUCATION TRUST FUND

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

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

Trust Fund, to remain available until expended.

TITLE VIII

GENERAL PROVISIONS

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

Act shall be used for publicity or propaganda purposes not authorized by the Congress.

SEC. 8002. During the current fiscal year, provisions of law

prohibiting the payment of compensation to, or employment of,

any person not a citizen of the United States shall not apply

to personnel of the Department of Defense: Provided, That salary

increases granted to direct and indirect hire foreign national

employees of the Department of Defense funded by this Act shall

not be at a rate in excess of the percentage increase authorized

by law for civilian employees of the Department of Defense whose

pay is computed under the provisions of section 5332 of title 5,

United States Code, or at a rate in excess of the percentage increase

provided by the appropriate host nation to its own employees,

whichever is higher: Provided further, That this section shall not

apply to Department of Defense foreign service national employees

serving at United States diplomatic missions whose pay is set

by the Department of State under the Foreign Service Act of 1980:

Provided further, That the limitations of this provision shall not

apply to foreign national employees of the Department of Defense

in the Republic of Turkey.

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

Act shall remain available for obligation beyond the current fiscal

year, unless expressly so provided herein.

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

in this Act which are limited for obligation during the current

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

fiscal year: Provided, That this section shall not apply to obligations

for support of active duty training of reserve components or summer

camp training of the Reserve Officers’ Training Corps.

(TRANSFER OF FUNDS)

SEC. 8005. Upon determination by the Secretary of Defense

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

with the approval of the Office of Management and Budget, transfer

not to exceed $2,100,000,000 of working capital funds of the Department of Defense or funds made available in this Act to the Department of Defense for military functions (except military construction)

between such appropriations or funds or any subdivision thereof,

to be merged with and to be available for the same purposes,
H. R. 2658—19

and for the same time period, as the appropriation or fund to

which transferred: Provided, That such authority to transfer may

not be used unless for higher priority items, based on unforeseen

military requirements, than those for which originally appropriated

and in no case where the item for which funds are requested

has been denied by the Congress: Provided further, That the Secretary of Defense shall notify the Congress promptly of all transfers

made pursuant to this authority or any other authority in this

Act: Provided further, That no part of the funds in this Act shall

be available to prepare or present a request to the Committees

on Appropriations for reprogramming of funds, unless for higher

priority items, based on unforeseen military requirements, than

those for which originally appropriated and in no case where the

item for which reprogramming is requested has been denied by

the Congress: Provided further, That a request for multiple

reprogrammings of funds using authority provided in this section

must be made prior to June 30, 2004.

(TRANSFER OF FUNDS)

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

working capital funds of the Department of Defense established

pursuant to section 2208 of title 10, United States Code, may

be maintained in only such amounts as are necessary at any time

for cash disbursements to be made from such funds: Provided,

That transfers may be made between such funds: Provided further,

That transfers may be made between working capital funds and

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

the ‘‘Operation and Maintenance’’ appropriation accounts in such

amounts as may be determined by the Secretary of Defense, with

the approval of the Office of Management and Budget, except that

such transfers may not be made unless the Secretary of Defense

has notified the Congress of the proposed transfer. Except in

amounts equal to the amounts appropriated to working capital

funds in this Act, no obligations may be made against a working

capital fund to procure or increase the value of war reserve material

inventory, unless the Secretary of Defense has notified the Congress

prior to any such obligation.

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

to initiate a special access program without prior notification 30

calendar days in session in advance to the congressional defense

committees.

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

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

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

of the contract or that includes an unfunded contingent liability

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

leading to a multiyear contract that employs economic order

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

the congressional defense committees have been notified at least

30 days in advance of the proposed contract award: Provided, That

no part of any appropriation contained in this Act shall be available

to initiate a multiyear contract for which the economic order

quantity advance procurement is not funded at least to the limits

of the Government’s liability: Provided further, That no part of

any appropriation contained in this Act shall be available to initiate

multiyear procurement contracts for any systems or component

thereof if the value of the multiyear contract would exceed
H. R. 2658—20

$500,000,000 unless specifically provided in this Act: Provided further, That no multiyear procurement contract can be terminated

without 10-day prior notification to the congressional defense

committees: Provided further, That the execution of multiyear

authority shall require the use of a present value analysis to determine lowest cost compared to an annual procurement.

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

multiyear procurement contracts as follows:

F/A–18 aircraft;

E–2C aircraft;

Tactical Tomahawk missile; and

Virginia Class submarine:

Provided, That the Secretary of the Navy may not enter into a

multiyear contract for the procurement of more than one Virginia

Class submarine per year.

SEC. 8009. Within the funds appropriated for the operation

and maintenance of the Armed Forces, funds are hereby appropriated pursuant to section 401 of title 10, United States Code,

for humanitarian and civic assistance costs under chapter 20 of

title 10, United States Code. Such funds may also be obligated

for humanitarian and civic assistance costs incidental to authorized

operations and pursuant to authority granted in section 401 of

chapter 20 of title 10, United States Code, and these obligations

shall be reported as required by section 401(d) of title 10, United

States Code: Provided, That funds available for operation and

maintenance shall be available for providing humanitarian and

similar assistance by using Civic Action Teams in the Trust Territories of the Pacific Islands and freely associated states of Micronesia, pursuant to the Compact of Free Association as authorized

by Public Law 99–239: Provided further, That upon a determination

by the Secretary of the Army that such action is beneficial for

graduate medical education programs conducted at Army medical

facilities located in Hawaii, the Secretary of the Army may authorize

the provision of medical services at such facilities and transportation to such facilities, on a nonreimbursable basis, for civilian

patients from American Samoa, the Commonwealth of the Northern

Mariana Islands, the Marshall Islands, the Federated States of

Micronesia, Palau, and Guam.

SEC. 8010. (a) During fiscal year 2004, the civilian personnel

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

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

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

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

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

(b) The fiscal year 2005 budget request for the Department

of Defense as well as all justification material and other documentation supporting the fiscal year 2005 Department of Defense budget

request shall be prepared and submitted to the Congress as if

subsections (a) and (b) of this provision were effective with regard

to fiscal year 2005.

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

(civilian) technicians.

SEC. 8011. None of the funds appropriated in this or any

other Act may be used to initiate a new installation overseas

without 30-day advance notification to the Committees on Appropriations.
H. R. 2658—21

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

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

action on any legislation or appropriation matters pending before

the Congress.

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

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

the Army participating as a full-time student and receiving benefits

paid by the Secretary of Veterans Affairs from the Department

of Defense Education Benefits Fund when time spent as a fulltime student is credited toward completion of a service commitment:

Provided, That this subsection shall not apply to those members

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

Provided further, That this subsection applies only to active components of the Army.

SEC. 8014. (a) LIMITATION ON CONVERSION TO CONTRACTOR

PERFORMANCE.—None of the funds appropriated by this Act shall

be available to convert to contractor performance an activity or

function of the Department of Defense that, on or after the date

of the enactment of this Act, is performed by more than 10 Department of Defense civilian employees unless—

(1) the conversion is based on the result of a public-private

competition that includes a most efficient and cost effective

organization plan developed by such activity or function; and

(2) the Competitive Sourcing Official determines that, over

all performance periods stated in the solicitation of offers for

performance of the activity or function, the cost of performance

of the activity or function by a contractor would be less costly

to the Department of Defense by an amount that equals or

exceeds the lesser of—

(A) 10 percent of the most efficient organization’s personnel-related costs for performance of that activity or function by Federal employees; or

(B) $10,000,000.

(b) EXCEPTIONS.—(1) This section and subsections (a), (b), and

(c) of section 2461 of title 10, United States Code, shall not apply

to a commercial or industrial type function of the Department

of Defense that—

(A) is included on the procurement list established pursuant

to section 2 of the Javits-Wagner-O’Day Act (41 U.S.C. 47);

(B) is planned to be converted to performance by a qualified

nonprofit agency for the blind or by a qualified nonprofit agency

for other severely handicapped individuals in accordance with

that Act; or

(C) is planned to be converted to performance by a qualified

firm under at least 51 percent ownership by an Indian tribe,

as defined in section 4(e) of the Indian Self-Determination

and Education Assistance Act (25 U.S.C. 450b(e)), or a Native

Hawaiian Organization, as defined in section 8(a)(15) of the

Small Business Act (15 U.S.C. 637(a)(15)).

(2) This section shall not apply to depot contracts or contracts

for depot maintenance as provided in sections 2469 and 2474 of

title 10, United States Code.

(c) TREATMENT OF CONVERSION.—The conversion of any activity

or function of the Department of Defense under the authority provided by this section shall be credited toward any competitive

or outsourcing goal, target, or measurement that may be established

by statute, regulation, or policy and is deemed to be awarded
H. R. 2658—22

under the authority of, and in compliance with, subsection (h)

of section 2304 of title 10, United States Code, for the competition

or outsourcing of commercial activities.

(TRANSFER OF FUNDS)

SEC. 8015. Funds appropriated in title III of this Act for the

Department of Defense Pilot Mentor-Protege Program may be transferred to any other appropriation contained in this Act solely for

the purpose of implementing a Mentor-Protege Program developmental assistance agreement pursuant to section 831 of the

National Defense Authorization Act for Fiscal Year 1991 (Public

Law 101–510; 10 U.S.C. 2301 note), as amended, under the

authority of this provision or any other transfer authority contained

in this Act.

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

for the purchase by the Department of Defense (and its departments

and agencies) of welded shipboard anchor and mooring chain 4

inches in diameter and under unless the anchor and mooring chain

are manufactured in the United States from components which

are substantially manufactured in the United States: Provided,

That for the purpose of this section manufactured will include

cutting, heat treating, quality control, testing of chain and welding

(including the forging and shot blasting process): Provided further,

That for the purpose of this section substantially all of the components of anchor and mooring chain shall be considered to be produced or manufactured in the United States if the aggregate cost

of the components produced or manufactured in the United States

exceeds the aggregate cost of the components produced or manufactured outside the United States: Provided further, That when adequate domestic supplies are not available to meet Department of

Defense requirements on a timely basis, the Secretary of the service

responsible for the procurement may waive this restriction on a

case-by-case basis by certifying in writing to the Committees on

Appropriations that such an acquisition must be made in order

to acquire capability for national security purposes.

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

for the Civilian Health and Medical Program of the Uniformed

Services (CHAMPUS) or TRICARE shall be available for the

reimbursement of any health care provider for inpatient mental

health service for care received when a patient is referred to a

provider of inpatient mental health care or residential treatment

care by a medical or health care professional having an economic

interest in the facility to which the patient is referred: Provided,

That this limitation does not apply in the case of inpatient mental

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

Code, provided as partial hospital care, or provided pursuant to

a waiver authorized by the Secretary of Defense because of medical

or psychological circumstances of the patient that are confirmed

by a health professional who is not a Federal employee after a

review, pursuant to rules prescribed by the Secretary, which takes

into account the appropriate level of care for the patient, the intensity of services required by the patient, and the availability of

that care.

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

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

agreement, establish with host nation governments in NATO
H. R. 2658—23

member states a separate account into which such residual value

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

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

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

only for the construction of facilities to support United States military forces in that host nation, or such real property maintenance

and base operating costs that are currently executed through monetary transfers to such host nations: Provided further, That the

Department of Defense’s budget submission for fiscal year 2005

shall identify such sums anticipated in residual value settlements,

and identify such construction, real property maintenance or base

operating costs that shall be funded by the host nation through

such credits: Provided further, That all military construction

projects to be executed from such accounts must be previously

approved in a prior Act of Congress: Provided further, That each

such executive agreement with a NATO member host nation shall

be reported to the congressional defense committees, the Committee

on International Relations of the House of Representatives and

the Committee on Foreign Relations of the Senate 30 days prior

to the conclusion and endorsement of any such agreement established under this provision.

SEC. 8019. None of the funds available to the Department

of Defense may be used to demilitarize or dispose of M–1 Carbines,

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

or M–1911 pistols.

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

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

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

or function of the Department of Defense into or within the National

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

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

to the congressional defense committees that such a relocation

is required in the best interest of the Government.

SEC. 8021. In addition to the funds provided elsewhere in

this Act, $8,000,000 is appropriated only for incentive payments

authorized by Section 504 of the Indian Financing Act of 1974

(25 U.S.C. 1544): Provided, That a prime contractor or a subcontractor at any tier that makes a subcontract award to any subcontractor or supplier as defined in 25 U.S.C. 1544 or a small business

owned and controlled by an individual or individuals defined under

25 U.S.C. 4221(9) shall be considered a contractor for the purposes

of being allowed additional compensation under section 504 of the

Indian Financing Act of 1974 (25 U.S.C. 1544) whenever the prime

contract or subcontract amount is over $500,000 and involves the

expenditure of funds appropriated by an Act making Appropriations

for the Department of Defense with respect to any fiscal year:

Provided further, That notwithstanding 41 U.S.C. 430, this section

shall be applicable to any Department of Defense acquisition of

supplies or services, including any contract and any subcontract

at any tier for acquisition of commercial items produced or manufactured, in whole or in part by any subcontractor or supplier defined

in 25 U.S.C. 1544 or a small business owned and controlled by

an individual or individuals defined under 25 U.S.C. 4221(9): Provided further, That businesses certified as 8(a) by the Small Business Administration pursuant to section 8(a)(15) of Public Law

85–536, as amended, shall have the same status as other program
H. R. 2658—24

participants under section 602 of Public Law 100–656, 102 Stat.

3825 (Business Opportunity Development Reform Act of 1988) for

purposes of contracting with agencies of the Department of Defense.

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

be available to perform any cost study pursuant to the provisions

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

period of 24 months after initiation of such study with respect

to a single function activity or 30 months after initiation of such

study for a multi-function activity.

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

Forces Information Service shall not be used for any national or

international political or psychological activities.

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

employees hired for certain health care occupations as authorized

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

United States Code.

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

or services appropriated by this Act and hereafter, qualified nonprofit agencies for the blind or other severely handicapped shall

be afforded the maximum practicable opportunity to participate

as subcontractors and suppliers in the performance of contracts

let by the Department of Defense.

(b) During the current fiscal year and hereafter, a business

concern which has negotiated with a military service or defense

agency a subcontracting plan for the participation by small business

concerns pursuant to section 8(d) of the Small Business Act (15

U.S.C. 637(d)) shall be given credit toward meeting that subcontracting goal for any purchases made from qualified nonprofit agencies for the blind or other severely handicapped.

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

a nonprofit agency for the blind or other severely handicapped

that has been approved by the Committee for the Purchase from

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

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

to collections from third party payers pursuant to section 1095

of title 10, United States Code, shall be made available to the

local facility of the uniformed services responsible for the collections

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

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

of Defense is authorized to incur obligations of not to exceed

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

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

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

That upon receipt, such contributions from the Government of

Kuwait shall be credited to the appropriations or fund which

incurred such obligations.

(INCLUDING TRANSFER OF FUNDS)

SEC. 8028. (a) Of the funds made available in this Act, not

less than $32,758,000 shall be available for the Civil Air Patrol

Corporation, of which—

(1) $21,432,000 shall be available from ‘‘Operation and

Maintenance, Air Force’’ to support Civil Air Patrol Corporation
H. R. 2658—25

operation and maintenance, readiness, counterdrug activities,

and drug demand reduction activities involving youth programs;

(2) $10,540,000 shall be available from ‘‘Aircraft Procurement, Air Force’’; and

(3) $786,000 shall be available from ‘‘Other Procurement,

Air Force’’ for vehicle procurement.

(b) Notwithstanding section 9445 of title 10, United States

Code, or any other provision of law, of the funds made available

to the Civil Air Patrol Corporation in this Act under the heading

‘‘Aircraft Procurement, Air Force’’, not more than $770,000 may

be transferred by the Secretary of the Air Force to the ‘‘Operation

and Maintenance, Air Force’’ appropriation to be merged with and

to be available for administrative expenses incurred by the Air

Force in the administration of Civil Air Patrol Corporation. Funds

so transferred shall be available for the same period as the appropriation to which transferred.

(c) The Secretary of the Air Force should waive reimbursement

for any funds used by the Civil Air Patrol for counter-drug activities

in support of Federal, State, and local government agencies.

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

are available to establish a new Department of Defense (department) federally funded research and development center (FFRDC),

either as a new entity, or as a separate entity administrated by

an organization managing another FFRDC, or as a nonprofit membership corporation consisting of a consortium of other FFRDCs

and other non-profit entities.

(b) No member of a Board of Directors, Trustees, Overseers,

Advisory Group, Special Issues Panel, Visiting Committee, or any

similar entity of a defense FFRDC, and no paid consultant to

any defense FFRDC, except when acting in a technical advisory

capacity, may be compensated for his or her services as a member

of such entity, or as a paid consultant by more than one FFRDC

in a fiscal year: Provided, That a member of any such entity

referred to previously in this subsection shall be allowed travel

expenses and per diem as authorized under the Federal Joint Travel

Regulations, when engaged in the performance of membership

duties.

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

funds available to the department from any source during fiscal

year 2004 may be used by a defense FFRDC, through a fee or

other payment mechanism, for construction of new buildings, for

payment of cost sharing for projects funded by Government grants,

for absorption of contract overruns, or for certain charitable contributions, not to include employee participation in community

service and/or development.

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

available to the department during fiscal year 2004, not more

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

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

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

may be funded for the defense studies and analysis FFRDCs.

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

the department’s fiscal year 2005 budget request, submit a report

presenting the specific amounts of staff years of technical effort

to be allocated for each defense FFRDC during that fiscal year.
H. R. 2658—26

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

amount appropriated in this Act for FFRDCs is hereby reduced

by $74,200,000.

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

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

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

the control of the Department of Defense which were not melted

and rolled in the United States or Canada: Provided, That these

procurement restrictions shall apply to any and all Federal Supply

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

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

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

of the military department responsible for the procurement may

waive this restriction on a case-by-case basis by certifying in writing

to the Committees on Appropriations of the House of Representatives and the Senate that adequate domestic supplies are not available to meet Department of Defense requirements on a timely

basis and that such an acquisition must be made in order to

acquire capability for national security purposes: Provided further,

That these restrictions shall not apply to contracts which are in

being as of the date of the enactment of this Act.

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

defense committees’’ means the Armed Services Committee of the

House of Representatives, the Armed Services Committee of the

Senate, the Subcommittee on Defense of the Committee on Appropriations of the Senate, and the Subcommittee on Defense of the

Committee on Appropriations of the House of Representatives.

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

of Defense may acquire the modification, depot maintenance and

repair of aircraft, vehicles and vessels as well as the production

of components and other Defense-related articles, through competition between Department of Defense depot maintenance activities

and private firms: Provided, That the Senior Acquisition Executive

of the military department or Defense Agency concerned, with power

of delegation, shall certify that successful bids include comparable

estimates of all direct and indirect costs for both public and private

bids: Provided further, That Office of Management and Budget

Circular A–76 shall not apply to competitions conducted under

this section.

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

with the United States Trade Representative, determines that a

foreign country which is party to an agreement described in paragraph (2) has violated the terms of the agreement by discriminating

against certain types of products produced in the United States

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

rescind the Secretary’s blanket waiver of the Buy American Act

with respect to such types of products produced in that foreign

country.

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

defense procurement memorandum of understanding, between the

United States and a foreign country pursuant to which the Secretary

of Defense has prospectively waived the Buy American Act for

certain products in that country.

(b) The Secretary of Defense shall submit to the Congress

a report on the amount of Department of Defense purchases from

foreign entities in fiscal year 2004. Such report shall separately

indicate the dollar value of items for which the Buy American
H. R. 2658—27

Act was waived pursuant to any agreement described in subsection

(a)(2), the Trade Agreement Act of 1979 (19 U.S.C. 2501 et seq.),

or any international agreement to which the United States is a

party.

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

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

for the Treasury and Post Office Departments for the fiscal year

ending June 30, 1934, and for other purposes’’, approved March

3, 1933 (41 U.S.C. 10a et seq.).

SEC. 8034. Appropriations contained in this Act that remain

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

cost savings realized by the Department of Defense shall remain

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

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

Code.

(INCLUDING TRANSFER OF FUNDS)

SEC. 8035. Amounts deposited during the current fiscal year

to the special account established under 40 U.S.C. 572(b)(5)(A)

and to the special account established under 10 U.S.C. 2667(d)(1)

are appropriated and shall be available until transferred by the

Secretary of Defense to current applicable appropriations or funds

of the Department of Defense under the terms and conditions

specified by 40 U.S.C. 572(b)(5)(B) and 10 U.S.C. 2667(d)(1)(B),

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

and the same purposes as the appropriation to which transferred.

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

a fiscal year submitted to the Congress under section 1105 of

title 31, United States Code, materials that shall identify clearly

and separately the amounts requested in the budget for appropriation for that fiscal year for salaries and expenses related to administrative activities of the Department of Defense, the military departments, and the defense agencies.

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

available for ‘‘Drug Interdiction and Counter-Drug Activities,

Defense’’ may be obligated for the Young Marines program.

(INCLUDING TRANSFER OF FUNDS)

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

in the Department of Defense Overseas Military Facility Investment

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

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

2687 note) shall be available until expended for the payments

specified by section 2921(c)(2) of that Act.

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

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

in the States of North Dakota, South Dakota, Montana, and Minnesota relocatable military housing units located at Grand Forks

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

needs of the Air Force.

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

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

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

that are submitted to the Secretary by the Operation Walking
H. R. 2658—28

Shield Program on behalf of Indian tribes located in the States

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

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

Walking Shield program shall resolve any conflicts among requests

of Indian tribes for housing units under subsection (a) before

submitting requests to the Secretary of the Air Force under subsection (b).

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

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

list published by the Secretary of the Interior under section 104

of the Federally Recognized Indian Tribe Act of 1994 (Public Law

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

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

are available to the Department of Defense for operation and

maintenance may be used to purchase items having an investment

item unit cost of not more than $250,000.

SEC. 8041. (a) During the current fiscal year, none of the

appropriations or funds available to the Department of Defense

Working Capital Funds shall be used for the purchase of an investment item for the purpose of acquiring a new inventory item for

sale or anticipated sale during the current fiscal year or a subsequent fiscal year to customers of the Department of Defense

Working Capital Funds if such an item would not have been chargeable to the Department of Defense Business Operations Fund during

fiscal year 1994 and if the purchase of such an investment item

would be chargeable during the current fiscal year to appropriations

made to the Department of Defense for procurement.

(b) The fiscal year 2005 budget request for the Department

of Defense as well as all justification material and other documentation supporting the fiscal year 2005 Department of Defense budget

shall be prepared and submitted to the Congress on the basis

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

in a procurement appropriation contained in this Act shall be budgeted for in a proposed fiscal year 2005 procurement appropriation

and not in the supply management business area or any other

area or category of the Department of Defense Working Capital

Funds.

SEC. 8042. None of the funds appropriated by this Act for

programs of the Central Intelligence Agency shall remain available

for obligation beyond the current fiscal year, except for funds appropriated for the Reserve for Contingencies, which shall remain available until September 30, 2005: Provided, That funds appropriated,

transferred, or otherwise credited to the Central Intelligence Agency

Central Services Working Capital Fund during this or any prior

or subsequent fiscal year shall remain available until expended:

Provided further, That any funds appropriated or transferred to

the Central Intelligence Agency for advanced research and development acquisition, for agent operations, and for covert action programs authorized by the President under section 503 of the National

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

September 30, 2005.

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

made available in this Act for the Defense Intelligence Agency

may be used for the design, development, and deployment of General Defense Intelligence Program intelligence communications and

intelligence information systems for the Services, the Unified and

Specified Commands, and the component commands.
H. R. 2658—29

SEC. 8044. Of the funds appropriated to the Department of

Defense under the heading ‘‘Operation and Maintenance, DefenseWide’’, not less than $10,000,000 shall be made available only

for the mitigation of environmental impacts, including training

and technical assistance to tribes, related administrative support,

the gathering of information, documenting of environmental damage, and developing a system for prioritization of mitigation and

cost to complete estimates for mitigation, on Indian lands resulting

from Department of Defense activities.

SEC. 8045. (a) None of the funds appropriated in this Act

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

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

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

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

for the Treasury and Post Office Departments for the fiscal year

ending June 30, 1934, and for other purposes’’, approved March

3, 1933 (41 U.S.C. 10a et seq.).

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

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

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

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

determine, in accordance with section 2410f of title 10, United

States Code, whether the person should be debarred from contracting with the Department of Defense.

(c) In the case of any equipment or products purchased with

appropriations provided under this Act, it is the sense of the Congress that any entity of the Department of Defense, in expending

the appropriation, purchase only American-made equipment and

products, provided that American-made equipment and products

are cost-competitive, quality-competitive, and available in a timely

fashion.

SEC. 8046. None of the funds appropriated by this Act shall

be available for a contract for studies, analysis, or consulting services entered into without competition on the basis of an unsolicited

proposal unless the head of the activity responsible for the procurement determines—

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

source is found fully qualified to perform the proposed work;

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

proposal which offers significant scientific or technological

promise, represents the product of original thinking, and was

submitted in confidence by one source; or

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

unique and significant industrial accomplishment by a specific

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

concern is given financial support:

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

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

of equipment that is in development or production, or contracts

as to which a civilian official of the Department of Defense, who

has been confirmed by the Senate, determines that the award

of such contract is in the interest of the national defense.

SEC. 8047. (a) Except as provided in subsection (b) and (c),

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

(1) to establish a field operating agency; or

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

or civilian employee of the department who is transferred or
H. R. 2658—30

reassigned from a headquarters activity if the member or

employee’s place of duty remains at the location of that headquarters.

(b) The Secretary of Defense or Secretary of a military department may waive the limitations in subsection (a), on a case-bycase basis, if the Secretary determines, and certifies to the Committees on Appropriations of the House of Representatives and Senate

that the granting of the waiver will reduce the personnel requirements or the financial requirements of the department.

(c) This section does not apply to field operating agencies funded

within the National Foreign Intelligence Program.

SEC. 8048. Notwithstanding section 303 of Public Law 96– 487 or any other provision of law, the Secretary of the Navy is

authorized to lease real and personal property at Naval Air Facility,

Adak, Alaska, pursuant to 10 U.S.C. 2667(f), for commercial, industrial or other purposes: Provided, That notwithstanding any other

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

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

and may demolish or otherwise dispose of such facilities, buildings,

and structures.

(RESCISSIONS)

SEC. 8049. Of the funds appropriated in Department of Defense

Appropriations Acts, the following funds are hereby rescinded from

the following accounts and programs in the specified amounts: ‘‘Shipbuilding and Conversion, Navy, 2001/2005’’, $3,835,000; ‘‘Shipbuilding and Conversion, Navy, 2002/2006’’, $9,336,000; ‘‘Aircraft Procurement, Army, 2003/2005’’, $47,100,000; ‘‘Weapons and Tracked Combat Vehicles, Army, 2003/2005’’, $30,000,000; ‘‘Procurement of Ammunition, Army, 2003/2005’’, $36,000,000; ‘‘Other Procurement, Army, 2003/2005’’, $8,000,000; ‘‘Other Procurement, Air Force, 2003/2005’’, $10,000,000; ‘‘Procurement, Defense-Wide, 2003/2005’’, $48,000,000; ‘‘Research, Development, Test and Evaluation, Army, 2003/

2004’’, $2,989,000;

‘‘Research, Development, Test and Evaluation, DefenseWide, 2003/2004’’, $25,000,000; and ‘‘National Defense Sealift Fund’’, $105,300,000.

SEC. 8050. None of the funds available in this Act may be

used to reduce the authorized positions for military (civilian) technicians of the Army National Guard, the Air National Guard, Army

Reserve and Air Force Reserve for the purpose of applying any

administratively imposed civilian personnel ceiling, freeze, or reduction on military (civilian) technicians, unless such reductions are

a direct result of a reduction in military force structure.

SEC. 8051. None of the funds appropriated or otherwise made

available in this Act may be obligated or expended for assistance

to the Democratic People’s Republic of North Korea unless specifically appropriated for that purpose.

SEC. 8052. During the current fiscal year, funds appropriated

in this Act are available to compensate members of the National

Guard for duty performed pursuant to a plan submitted by a Governor of a State and approved by the Secretary of Defense under
H. R. 2658—31

section 112 of title 32, United States Code: Provided, That during

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

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

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

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

Code.

SEC. 8053. Funds appropriated in this Act for operation and

maintenance of the Military Departments, Combatant Commands

and Defense Agencies shall be available for reimbursement of pay,

allowances and other expenses which would otherwise be incurred

against appropriations for the National Guard and Reserve when

members of the National Guard and Reserve provide intelligence

or counterintelligence support to Combatant Commands, Defense

Agencies and Joint Intelligence Activities, including the activities

and programs included within the National Foreign Intelligence

Program (NFIP), the Joint Military Intelligence Program (JMIP),

and the Tactical Intelligence and Related Activities (TIARA) aggregate: Provided, That nothing in this section authorizes deviation

from established Reserve and National Guard personnel and

training procedures.

SEC. 8054. During the current fiscal year, none of the funds

appropriated in this Act may be used to reduce the civilian medical

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

Surgeons General may waive this section by certifying to the

congressional defense committees that the beneficiary population

is declining in some catchment areas and civilian strength reductions may be consistent with responsible resource stewardship and

capitation-based budgeting.

SEC. 8055. (a) LIMITATION ON PENTAGON RENOVATION COSTS.—

Not later than the date each year on which the President submits

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

States Code, the Secretary of Defense shall submit to Congress

a certification that the total cost for the planning, design, construction, and installation of equipment for the renovation of wedges

2 through 5 of the Pentagon Reservation, cumulatively, will not

exceed four times the total cost for the planning, design, construction, and installation of equipment for the renovation of wedge

1.

(b) ANNUAL ADJUSTMENT.—For purposes of applying the limitation in subsection (a), the Secretary shall adjust the cost for the

renovation of wedge 1 by any increase or decrease in costs attributable to economic inflation, based on the most recent economic

assumptions issued by the Office of Management and Budget for

use in preparation of the budget of the United States under section

1104 of title 31, United States Code.

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

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

5 shall not include—

(1) any repair or reconstruction cost incurred as a result

of the terrorist attack on the Pentagon that occurred on September 11, 2001;

(2) any increase in costs for wedges 2 through 5 attributable

to compliance with new requirements of Federal, State, or

local laws; and
H. R. 2658—32

(3) any increase in costs attributable to additional security

requirements that the Secretary of Defense considers essential

to provide a safe and secure working environment.

(d) CERTIFICATION COST REPORTS.—As part of the annual certification under subsection (a), the Secretary shall report the projected cost (as of the time of the certification) for— (1) the renovation of each wedge, including the amount

adjusted or otherwise excluded for such wedge under the

authority of paragraphs (2) and (3) of subsection (c) for the

period covered by the certification; and

(2) the repair and reconstruction of wedges 1 and 2 in

response to the terrorist attack on the Pentagon that occurred

on September 11, 2001.

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

apply until the Secretary certifies to Congress that the renovation

of the Pentagon Reservation is completed.

SEC. 8056. Notwithstanding any other provision of law, that

not more than 35 percent of funds provided in this Act for environmental remediation may be obligated under indefinite delivery/

indefinite quantity contracts with a total contract value of

$130,000,000 or higher.

SEC. 8057. (a) None of the funds available to the Department

of Defense for any fiscal year for drug interdiction or counterdrug activities may be transferred to any other department or

agency of the United States except as specifically provided in an

appropriations law.

(b) None of the funds available to the Central Intelligence

Agency for any fiscal year for drug interdiction and counter-drug

activities may be transferred to any other department or agency

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

(TRANSFER OF FUNDS)

SEC. 8058. Appropriations available in this Act under the

heading ‘‘Operation and Maintenance, Defense-Wide’’ for increasing

energy and water efficiency in Federal buildings may, during their

period of availability, be transferred to other appropriations or

funds of the Department of Defense for projects related to increasing

energy and water efficiency, to be merged with and to be available

for the same general purposes, and for the same time period,

as the appropriation or fund to which transferred.

SEC. 8059. None of the funds appropriated by this Act may

be used for the procurement of ball and roller bearings other than

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

for such procurement may waive this restriction on a case-bycase basis by certifying in writing to the Committees on Appropriations of the House of Representatives and the Senate, that adequate

domestic supplies are not available to meet Department of Defense

requirements on a timely basis and that such an acquisition must

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

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

of the Office of Federal Procurement Policy Act, except that the

restriction shall apply to ball or roller bearings purchased as end

items.
H. R. 2658—33

SEC. 8060. Notwithstanding any other provision of law, funds

available to the Department of Defense shall be made available

to provide transportation of medical supplies and equipment, on

a nonreimbursable basis, to American Samoa, and funds available

to the Department of Defense shall be made available to provide

transportation of medical supplies and equipment, on a nonreimbursable basis, to the Indian Health Service when it is in

conjunction with a civil-military project.

SEC. 8061. None of the funds in this Act may be used to

purchase any supercomputer which is not manufactured in the

United States, unless the Secretary of Defense certifies to the

congressional defense committees that such an acquisition must

be made in order to acquire capability for national security purposes

that is not available from United States manufacturers.

SEC. 8062. Notwithstanding any other provision of law, the

Naval shipyards of the United States shall be eligible to participate

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

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

contract awarded by the Department of Defense during the current

fiscal year for construction or service performed in whole or in

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

States Code) which is not contiguous with another State and has

an unemployment rate in excess of the national average rate of

unemployment as determined by the Secretary of Labor, shall

include a provision requiring the contractor to employ, for the

purpose of performing that portion of the contract in such State

that is not contiguous with another State, individuals who are

residents of such State and who, in the case of any craft or trade,

possess or would be able to acquire promptly the necessary skills:

Provided, That the Secretary of Defense may waive the requirements of this section, on a case-by-case basis, in the interest of

national security.

SEC. 8064. None of the funds made available in this or any

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

of the Department of Defense who approves or implements the

transfer of administrative responsibilities or budgetary resources

of any program, project, or activity financed by this Act to the

jurisdiction of another Federal agency not financed by this Act

without the express authorization of Congress: Provided, That this

limitation shall not apply to transfers of funds expressly provided

for in Defense Appropriations Acts, or provisions of Acts providing

supplemental appropriations for the Department of Defense.

SEC. 8065. (a) LIMITATION ON TRANSFER OF DEFENSE ARTICLES

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

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

fiscal year may be obligated or expended to transfer to another

nation or an international organization any defense articles or

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

described in subsection (b) unless the congressional defense committees, the Committee on International Relations of the House of

Representatives, and the Committee on Foreign Relations of the

Senate are notified 15 days in advance of such transfer.

(b) COVERED ACTIVITIES.—This section applies to—

(1) any international peacekeeping or peace-enforcement

operation under the authority of chapter VI or chapter VII
H. R. 2658—34

of the United Nations Charter under the authority of a United

Nations Security Council resolution; and

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

(c) REQUIRED NOTICE.—A notice under subsection (a) shall

include the following:

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

to be transferred.

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

or services to be transferred.

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

supplies—

(A) a statement of whether the inventory requirements

of all elements of the Armed Forces (including the reserve

components) for the type of equipment or supplies to be

transferred have been met; and

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

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

President proposes to provide funds for such replacement.

SEC. 8066. To the extent authorized by subchapter VI of chapter

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

issue loan guarantees in support of United States defense exports

not otherwise provided for: Provided, That the total contingent

liability of the United States for guarantees issued under the

authority of this section may not exceed $15,000,000,000: Provided

further, That the exposure fees charged and collected by the Secretary for each guarantee shall be paid by the country involved

and shall not be financed as part of a loan guaranteed by the

United States: Provided further, That the Secretary shall provide

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

on Appropriations, Armed Services, and International Relations

in the House of Representatives on the implementation of this

program: Provided further, That amounts charged for administrative fees and deposited to the special account provided for under

section 2540c(d) of title 10, shall be available for paying the costs

of administrative expenses of the Department of Defense that are

attributable to the loan guarantee program under subchapter VI

of chapter 148 of title 10, United States Code.

SEC. 8067. None of the funds available to the Department

of Defense under this Act shall be obligated or expended to pay

a contractor under a contract with the Department of Defense

for costs of any amount paid by the contractor to an employee

when—

(1) such costs are for a bonus or otherwise in excess of

the normal salary paid by the contractor to the employee;

and

(2) such bonus is part of restructuring costs associated

with a business combination.

SEC. 8068. (a) None of the funds appropriated or otherwise

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

for the transportation of chemical munitions or agents to the Johnston Atoll for the purpose of storing or demilitarizing such munitions or agents.

(b) The prohibition in subsection (a) shall not apply to any

obsolete World War II chemical munition or agent of the United

States found in the World War II Pacific Theater of Operations.
H. R. 2658—35

(c) The President may suspend the application of subsection

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

(INCLUDING TRANSFER OF FUNDS)

SEC. 8069. During the current fiscal year, no more than $30,000,000 of appropriations made in this Act under the heading

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

to appropriations available for the pay of military personnel, to

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

as the appropriations to which transferred, to be used in support

of such personnel in connection with support and services for eligible

organizations and activities outside the Department of Defense

pursuant to section 2012 of title 10, United States Code.

SEC. 8070. During the current fiscal year, in the case of an

appropriation account of the Department of Defense for which the

period of availability for obligation has expired or which has closed

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

Code, and which has a negative unliquidated or unexpended balance, an obligation or an adjustment of an obligation may be

charged to any current appropriation account for the same purpose

as the expired or closed account if— (1) the obligation would have been properly chargeable

(except as to amount) to the expired or closed account before

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

(2) the obligation is not otherwise properly chargeable to

any current appropriation account of the Department of

Defense; and

(3) in the case of an expired account, the obligation is

not chargeable to a current appropriation of the Department

of Defense under the provisions of section 1405(b)(8) of the

National Defense Authorization Act for Fiscal Year 1991, Public

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

That in the case of an expired account, if subsequent review

or investigation discloses that there was not in fact a negative

unliquidated or unexpended balance in the account, any charge

to a current account under the authority of this section shall

be reversed and recorded against the expired account: Provided

further, That the total amount charged to a current appropriation under this section may not exceed an amount equal to

1 percent of the total appropriation for that account.

SEC. 8071. Funds appropriated in title II of this Act and for

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

and administration costs for facilities maintenance and repair,

minor construction, or design projects, or any planning studies,

environmental assessments, or similar activities related to installation support functions, may be obligated at the time the reimbursable order is accepted by the performing activity: Provided, That

for the purpose of this section, supervision and administration

costs includes all in-house Government cost.

SEC. 8072. (a) Notwithstanding any other provision of law,

the Chief of the National Guard Bureau may permit the use of

equipment of the National Guard Distance Learning Project by

any person or entity on a space-available, reimbursable basis. The

Chief of the National Guard Bureau shall establish the amount

of reimbursement for such use on a case-by-case basis.

(b) Amounts collected under subsection (a) shall be credited

to funds available for the National Guard Distance Learning Project
H. R. 2658—36

and be available to defray the costs associated with the use of

equipment of the project under that subsection. Such funds shall

be available for such purposes without fiscal year limitation.

SEC. 8073. Using funds available by this Act or any other

Act, the Secretary of the Air Force, pursuant to a determination

under section 2690 of title 10, United States Code, may implement

cost-effective agreements for required heating facility modernization

in the Kaiserslautern Military Community in the Federal Republic

of Germany: Provided, That in the City of Kaiserslautern such

agreements will include the use of United States anthracite as

the base load energy for municipal district heat to the United

States Defense installations: Provided further, That at Landstuhl

Army Regional Medical Center and Ramstein Air Base, furnished

heat may be obtained from private, regional or municipal services,

if provisions are included for the consideration of United States

coal as an energy source.

SEC. 8074. None of the funds appropriated in title IV of this

Act may be used to procure end-items for delivery to military

forces for operational training, operational use or inventory requirements: Provided, That this restriction does not apply to end-items

used in development, prototyping, and test activities preceding and

leading to acceptance for operational use: Provided further, That

this restriction does not apply to programs funded within the

National Foreign Intelligence Program: Provided further, That the

Secretary of Defense may waive this restriction on a case-by-case

basis by certifying in writing to the Committees on Appropriations

of the House of Representatives and the Senate that it is in the

national security interest to do so.

SEC. 8075. None of the funds made available in this Act may

be used to approve or license the sale of the F–22 advanced tactical

fighter to any foreign government.

SEC. 8076. (a) The Secretary of Defense may, on a case-bycase basis, waive with respect to a foreign country each limitation

on the procurement of defense items from foreign sources provided

in law if the Secretary determines that the application of the

limitation with respect to that country would invalidate cooperative

programs entered into between the Department of Defense and

the foreign country, or would invalidate reciprocal trade agreements

for the procurement of defense items entered into under section

2531 of title 10, United States Code, and the country does not

discriminate against the same or similar defense items produced

in the United States for that country.

(b) Subsection (a) applies with respect to—

(1) contracts and subcontracts entered into on or after

the date of the enactment of this Act; and

(2) options for the procurement of items that are exercised

after such date under contracts that are entered into before

such date if the option prices are adjusted for any reason

other than the application of a waiver granted under subsection

(a).

(c) Subsection (a) does not apply to a limitation regarding

construction of public vessels, ball and roller bearings, food, and

clothing or textile materials as defined by section 11 (chapters

50–65) of the Harmonized Tariff Schedule and products classified

under headings 4010, 4202, 4203, 6401 through 6406, 6505, 7019,

7218 through 7229, 7304.41 through 7304.49, 7306.40, 7502 through

7508, 8105, 8108, 8109, 8211, 8215, and 9404.
H. R. 2658—37

SEC. 8077. (a) PROHIBITION.—None of the funds made available

by this Act may be used to support any training program involving

a unit of the security forces of a foreign country if the Secretary

of Defense has received credible information from the Department

of State that the unit has committed a gross violation of human

rights, unless all necessary corrective steps have been taken.

(b) MONITORING.—The Secretary of Defense, in consultation

with the Secretary of State, shall ensure that prior to a decision

to conduct any training program referred to in subsection (a), full

consideration is given to all credible information available to the

Department of State relating to human rights violations by foreign

security forces.

(c) WAIVER.—The Secretary of Defense, after consultation with

the Secretary of State, may waive the prohibition in subsection

(a) if he determines that such waiver is required by extraordinary

circumstances.

(d) REPORT.—Not more than 15 days after the exercise of any

waiver under subsection (c), the Secretary of Defense shall submit

a report to the congressional defense committees describing the

extraordinary circumstances, the purpose and duration of the

training program, the United States forces and the foreign security

forces involved in the training program, and the information

relating to human rights violations that necessitates the waiver.

SEC. 8078. The Secretary of Defense, in coordination with the

Secretary of Health and Human Services, may carry out a program

to distribute surplus dental equipment of the Department of

Defense, at no cost to the Department of Defense, to Indian Health

Service facilities and to federally-qualified health centers (within

the meaning of section 1905(l)(2)(B) of the Social Security Act

(42 U.S.C. 1396d(l)(2)(B))).

SEC. 8079. None of the funds appropriated or made available

in this Act to the Department of the Navy shall be used to develop,

lease or procure the T–AKE class of ships unless the main propulsion diesel engines and propulsors are manufactured in the United

States by a domestically operated entity: Provided, That the Secretary of Defense may waive this restriction on a case-by-case

basis by certifying in writing to the Committees on Appropriations

of the House of Representatives and the Senate that adequate

domestic supplies are not available to meet Department of Defense

requirements on a timely basis and that such an acquisition must

be made in order to acquire capability for national security purposes

or there exists a significant cost or quality difference.

SEC. 8080. None of the funds appropriated or otherwise made

available by this or other Department of Defense Appropriations

Acts may be obligated or expended for the purpose of performing

repairs or maintenance to military family housing units of the

Department of Defense, including areas in such military family

housing units that may be used for the purpose of conducting

official Department of Defense business.

SEC. 8081. Notwithstanding any other provision of law, funds

appropriated in this Act under the heading ‘‘Research, Development,

Test and Evaluation, Defense-Wide’’ for any advanced concept technology demonstration project may only be obligated 30 days after

a report, including a description of the project, the planned acquisition and transition strategy and its estimated annual and total

cost, has been provided in writing to the congressional defense

committees: Provided, That the Secretary of Defense may waive
H. R. 2658—38

this restriction on a case-by-case basis by certifying to the congressional defense committees that it is in the national interest to

do so.

SEC. 8082. The Secretary of Defense shall provide a classified

quarterly report, beginning December 15, 2003, to the House and

Senate Appropriations Committees, Subcommittees on Defense on

certain matters as directed in the classified annex accompanying

this Act.

SEC. 8083. During the current fiscal year, refunds attributable

to the use of the Government travel card, refunds attributable

to the use of the Government Purchase Card and refunds attributable to official Government travel arranged by Government Contracted Travel Management Centers may be credited to operation

and maintenance accounts of the Department of Defense which

are current when the refunds are received.

SEC. 8084. (a) REGISTERING FINANCIAL MANAGEMENT INFORMATION TECHNOLOGY SYSTEMS WITH DOD CHIEF INFORMATION

OFFICER.—None of the funds appropriated in this Act may be used

for a mission critical or mission essential financial management

information technology system (including a system funded by the

defense working capital fund) that is not registered with the Chief

Information Officer of the Department of Defense. A system shall

be considered to be registered with that officer upon the furnishing

to that officer of notice of the system, together with such information

concerning the system as the Secretary of Defense may prescribe.

A financial management information technology system shall be

considered a mission critical or mission essential information technology system as defined by the Under Secretary of Defense (Comptroller).

(b) CERTIFICATIONS AS TO COMPLIANCE WITH FINANCIAL

MANAGEMENT MODERNIZATION PLAN.—

(1) During the current fiscal year, a financial management

automated information system, a mixed information system

supporting financial and non-financial systems, or a system

improvement of more than $1,000,000 may not receive Milestone A approval, Milestone B approval, or full rate production,

or their equivalent, within the Department of Defense until

the Under Secretary of Defense (Comptroller) certifies, with

respect to that milestone, that the system is being developed

and managed in accordance with the Department’s Financial

Management Modernization Plan. The Under Secretary of

Defense (Comptroller) may require additional certifications, as

appropriate, with respect to any such system.

(2) The Chief Information Officer shall provide the congressional defense committees timely notification of certifications

under paragraph (1).

(c) CERTIFICATIONS AS TO COMPLIANCE WITH CLINGER-COHEN

ACT.—

(1) During the current fiscal year, a major automated

information system may not receive Milestone A approval, Milestone B approval, or full rate production approval, or their

equivalent, within the Department of Defense until the Chief

Information Officer certifies, with respect to that milestone,

that the system is being developed in accordance with the

Clinger-Cohen Act of 1996 (40 U.S.C. 1401 et seq.). The Chief

Information Officer may require additional certifications, as

appropriate, with respect to any such system.
H. R. 2658—39

(2) The Chief Information Officer shall provide the congressional defense committees timely notification of certifications

under paragraph (1). Each such notification shall include, at

a minimum, the funding baseline and milestone schedule for

each system covered by such a certification and confirmation

that the following steps have been taken with respect to the

system:

(A) Business process reengineering.

(B) An analysis of alternatives.

(C) An economic analysis that includes a calculation

of the return on investment.

(D) Performance measures.

(E) An information assurance strategy consistent with

the Department’s Global Information Grid.

(d) DEFINITIONS.—For purposes of this section:

(1) The term ‘‘Chief Information Officer’’ means the senior

official of the Department of Defense designated by the Secretary of Defense pursuant to section 3506 of title 44, United

States Code.

(2) The term ‘‘information technology system’’ has the

meaning given the term ‘‘information technology’’ in section

5002 of the Clinger-Cohen Act of 1996 (40 U.S.C. 1401).

SEC. 8085. During the current fiscal year, none of the funds

available to the Department of Defense may be used to provide

support to another department or agency of the United States

if such department or agency is more than 90 days in arrears

in making payment to the Department of Defense for goods or

services previously provided to such department or agency on a

reimbursable basis: Provided, That this restriction shall not apply

if the department is authorized by law to provide support to such

department or agency on a nonreimbursable basis, and is providing

the requested support pursuant to such authority: Provided further,

That the Secretary of Defense may waive this restriction on a

case-by-case basis by certifying in writing to the Committees on

Appropriations of the House of Representatives and the Senate

that it is in the national security interest to do so.

SEC. 8086. None of the funds provided in this Act may be

used to transfer to any nongovernmental entity ammunition held

by the Department of Defense that has a center-fire cartridge

and a United States military nomenclature designation of ‘‘armor

penetrator’’, ‘‘armor piercing (AP)’’, ‘‘armor piercing incendiary

(API)’’, or ‘‘armor-piercing incendiary-tracer (API–T)’’, except to an

entity performing demilitarization services for the Department of

Defense under a contract that requires the entity to demonstrate

to the satisfaction of the Department of Defense that armor piercing

projectiles are either: (1) rendered incapable of reuse by the demilitarization process; or (2) used to manufacture ammunition pursuant

to a contract with the Department of Defense or the manufacture

of ammunition for export pursuant to a License for Permanent

Export of Unclassified Military Articles issued by the Department

of State.

SEC. 8087. Notwithstanding any other provision of law, the

Chief of the National Guard Bureau, or his designee, may waive

payment of all or part of the consideration that otherwise would

be required under 10 U.S.C. 2667, in the case of a lease of personal

property for a period not in excess of 1 year to any organization

specified in 32 U.S.C. 508(d), or any other youth, social, or fraternal
H. R. 2658—40

non-profit organization as may be approved by the Chief of the

National Guard Bureau, or his designee, on a case-by-case basis.

SEC. 8088. None of the funds appropriated by this Act shall

be used for the support of any nonappropriated funds activity

of the Department of Defense that procures malt beverages and

wine with nonappropriated funds for resale (including such alcoholic

beverages sold by the drink) on a military installation located

in the United States unless such malt beverages and wine are

procured within that State, or in the case of the District of

Columbia, within the District of Columbia, in which the military

installation is located: Provided, That in a case in which the military

installation is located in more than one State, purchases may be

made in any State in which the installation is located: Provided

further, That such local procurement requirements for malt beverages and wine shall apply to all alcoholic beverages only for

military installations in States which are not contiguous with

another State: Provided further, That alcoholic beverages other

than wine and malt beverages, in contiguous States and the District

of Columbia shall be procured from the most competitive source,

price and other factors considered.

SEC. 8089. (a) The Department of Defense is authorized to

enter into agreements with the Department of Veterans Affairs

and federally-funded health agencies providing services to Native

Hawaiians for the purpose of establishing a partnership similar

to the Alaska Federal Health Care Partnership, in order to maximize Federal resources in the provision of health care services

by federally-funded health agencies, applying telemedicine technologies. For the purpose of this partnership, Native Hawaiians

shall have the same status as other Native Americans who are

eligible for the health care services provided by the Indian Health

Service.

(b) The Department of Defense is authorized to develop a consultation policy, consistent with Executive Order No. 13084 (issued

May 14, 1998), with Native Hawaiians for the purpose of assuring

maximum Native Hawaiian participation in the direction and

administration of governmental services so as to render those services more responsive to the needs of the Native Hawaiian community.

(c) For purposes of this section, the term ‘‘Native Hawaiian’’ means any individual who is a descendant of the aboriginal people

who, prior to 1778, occupied and exercised sovereignty in the area

that now comprises the State of Hawaii.

SEC. 8090. Funds available to the Department of Defense for

the Global Positioning System during the current fiscal year may

be used to fund civil requirements associated with the satellite

and ground control segments of such system’s modernization program.

(INCLUDING TRANSFER OF FUNDS)

SEC. 8091. (a) Of the amounts appropriated in this Act under

the heading, ‘‘Research, Development, Test and Evaluation,

Defense-Wide’’, $48,000,000 shall remain available until expended:

Provided, That notwithstanding any other provision of law, the

Secretary of Defense is authorized to transfer such funds to other

activities of the Federal Government.

(b) Of the amounts appropriated in this Act under the heading,

‘‘Operation and Maintenance, Army’’, $177,000,000 shall remain
H. R. 2658—41

available until expended: Provided, That notwithstanding any other

provision of law, the Secretary of Defense is authorized to transfer

such funds to other activities of the Federal Government: Provided

further, That the Secretary of Defense is authorized to enter into

and carry out contracts for the acquisition of real property, construction, personal services, and operations related to projects described

in further detail in the Classified Annex accompanying the Department of Defense Appropriations Act, 2004, consistent with the terms

and conditions set forth therein: Provided further, That contracts

entered into under the authority of this section may provide for

such indemnification as the Secretary determines to be necessary:

Provided further, That projects authorized by this section shall

comply with applicable Federal, State, and local law to the maximum extent consistent with the national security, as determined

by the Secretary of Defense.

SEC. 8092. Section 8106 of the Department of Defense Appropriations Act, 1997 (titles I through VIII of the matter under

subsection 101(b) of Public Law 104–208; 110 Stat. 3009–111; 10

U.S.C. 113 note) shall continue in effect to apply to disbursements

that are made by the Department of Defense in fiscal year 2004.

SEC. 8093. In addition to amounts provided elsewhere in this

Act, $3,800,000 is hereby appropriated for ‘‘Defense Health Program’’, to remain available for obligation until expended: Provided,

That notwithstanding any other provision of law, $2,000,000 shall

be available only for a grant to the Fisher House Foundation,

Inc., only for the construction and furnishing of additional Fisher

Houses to meet the needs of military family members when confronted with the illness or hospitalization of an eligible military

beneficiary, and notwithstanding any other provision of law,

$1,800,000 shall be available only for deposit into the Army, Navy,

and Air Force Fisher House Non-appropriated Fund Instrumentalities and shall be used in support and upkeep of existing Fisher

Houses.

SEC. 8094. Amounts appropriated in titles II and IV are hereby

reduced by $504,500,000 to reflect savings attributable to improvements in the management of professional support services, surveys

and analysis, and contracted engineering and technical support,

and to limit excessive growth in the procurement of advisory and

assistance services, to be distributed as follows:

(1) From ‘‘Operation and Maintenance, Army’’, $48,500,000;

(2) From ‘‘Operation and Maintenance, Navy’’, $84,400,000;

(3) From ‘‘Operation and Maintenance, Marine Corps’’,

$4,300,000;

(4) From ‘‘Operation and Maintenance, Air Force’’,

$196,300,000;

(5) From ‘‘Operation and Maintenance, Defense-Wide’’,

$91,000,000;

(6) From ‘‘Research, Development, Test and Evaluation,

Navy’’, $40,000,000; and

(7) From ‘‘Research, Development, Test and Evaluation,

Defense-Wide’’, $40,000,000:

Provided, That these reductions shall be applied proportionally

to each budget activity, activity group and subactivity group and

each program, project and activity within each appropriations

account.
H. R. 2658—42

(INCLUDING TRANSFER OF FUNDS)

SEC. 8095. Of the amounts appropriated in this Act under

the heading ‘‘Research, Development, Test and Evaluation, DefenseWide’’, $144,803,000 shall be made available for the Arrow missile

defense program: Provided, That of this amount, $80,000,000 shall

be available for the purpose of producing Arrow missile components

in the United States and Arrow missile components and missiles

in Israel to meet Israel’s defense requirements, consistent with

each nation’s laws, regulations and procedures: Provided further,

That funds made available under this provision for production

of missiles and missile components may be transferred to appropriations available for the procurement of weapons and equipment,

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

and the same purposes as the appropriation to which transferred:

Provided further, That the transfer authority provided under this

provision is in addition to any other transfer authority contained

in this Act.

(INCLUDING TRANSFER OF FUNDS)

SEC. 8096. In addition to amounts provided elsewhere in this

Act, $60,000,000 is hereby appropriated for ‘‘Aircraft Procurement,

Navy’’: Provided, That these funds shall be available only for

transfer to the Coast Guard for mission essential equipment for

Coast Guard HC–130J aircraft.

(INCLUDING TRANSFER OF FUNDS)

SEC. 8097. Of the amounts appropriated in this Act under

the heading ‘‘Shipbuilding and Conversion, Navy’’, $635,502,000

shall be available until September 30, 2004, to fund prior year

shipbuilding cost increases: Provided, That upon enactment of this

Act, the Secretary of the Navy shall transfer such funds to the

following appropriations in the amounts specified: Provided further,

That the amounts transferred shall be merged with and be available

for the same purposes as the appropriations to which transferred:

To:

Under the heading, ‘‘Shipbuilding and Conversion,

Navy, 1996/04’’:

LPD–17 Amphibious Transport Dock Ship Program, $95,300,000.

Under the heading, ‘‘Shipbuilding and Conversion,

Navy, 1998/04’’:

New SSN, $81,060,000.

Under the heading, ‘‘Shipbuilding and Conversion,

Navy, 1999/04’’:

DDG–51 Destroyer Program, $44,420,000;

New SSN, $156,978,000;

LPD–17 Amphibious Transport Dock Ship Program, $51,100,000.

Under the heading, ‘‘Shipbuilding and Conversion,

Navy, 2000/04’’:

DDG–51 Destroyer Program, $24,510,000;

LPD–17 Amphibious Transport Dock Ship Program, $112,778,000.

Under the heading, ‘‘Shipbuilding and Conversion,

Navy, 2001/04’’:
H. R. 2658—43

DDG–51 Destroyer Program, $6,984,000;

New SSN, $62,372,000.

SEC. 8098. The Secretary of the Navy may settle, or compromise, and pay any and all admiralty claims under 10 U.S.C.

7622 arising out of the collision involving the U.S.S.

GREENEVILLE and the EHIME MARU, in any amount and without regard to the monetary limitations in subsections (a) and (b)

of that section: Provided, That such payments shall be made from

funds available to the Department of the Navy for operation and

maintenance.

SEC. 8099. Notwithstanding any other provision of law or regulation, the Secretary of Defense may exercise the provisions of

38 U.S.C. 7403(g) for occupations listed in 38 U.S.C. 7403(a)(2)

as well as the following:

Pharmacists, Audiologists, and Dental Hygienists.

(A) The requirements of 38 U.S.C. 7403(g)(1)(A) shall

apply.

(B) The limitations of 38 U.S.C. 7403(g)(1)(B) shall

not apply.

SEC. 8100. Funds appropriated by this Act, or made available

by the transfer of funds in this Act, for intelligence activities are

deemed to be specifically authorized by the Congress for purposes

of section 504 of the National Security Act of 1947 (50 U.S.C.

414) during fiscal year 2004 until the enactment of the Intelligence

Authorization Act for fiscal year 2004.

SEC. 8101. The total amount appropriated in title II is hereby

reduced by $200,000,000 to reduce cost growth in information technology development, to be derived as follows:

(1) From ‘‘Operation and Maintenance, Army’’, $40,000,000.

(2) From ‘‘Operation and Maintenance, Navy’’, $60,000,000.

(3) From ‘‘Operation and Maintenance, Air Force’’,

$60,000,000.

(4) From ‘‘Operation and Maintenance, Defense-Wide’’,

$40,000,000.

SEC. 8102. In addition to funds made available elsewhere in

this Act $5,500,000 is hereby appropriated and shall remain available until expended to provide assistance, by grant or otherwise

(such as, but not limited to, the provision of funds for repairs,

maintenance, construction, and/or for the purchase of information

technology, text books, teaching resources), to public schools that

have unusually high concentrations of special needs military

dependents enrolled: Provided, That in selecting school systems

to receive such assistance, special consideration shall be given to

school systems in States that are considered overseas assignments,

and all schools within these school systems shall be eligible for

assistance: Provided further, That up to $2,000,000 shall be available for the Department of Defense to establish a non-profit trust

fund to assist in the public-private funding of public school repair

and maintenance projects, or provide directly to non-profit organizations who in return will use these monies to provide assistance

in the form of repair, maintenance, or renovation to public school

systems that have high concentrations of special needs military

dependents and are located in States that are considered overseas

assignments, and of which 2 percent shall be available to support

the administration and execution of the funds: Provided further,

That to the extent a Federal agency provides this assistance, by

contract, grant, or otherwise, it may accept and expend non-Federal
H. R. 2658—44

funds in combination with these Federal funds to provide assistance

for the authorized purpose, if the non-Federal entity requests such

assistance and the non-Federal funds are provided on a reimbursable basis.

SEC. 8103. None of the funds in this Act may be used to

initiate a new start program without prior notification to the Office

of Secretary of Defense and the congressional defense committees.

SEC. 8104. The amounts appropriated in title II are hereby

reduced by $372,000,000 to reflect cash balance and rate stabilization adjustments in Department of Defense Working Capital Funds,

as follows:

(1) From ‘‘Operation and Maintenance, Army’’,

$107,000,000.

(2) From ‘‘Operation and Maintenance, Navy’’, $45,000,000.

(3) From ‘‘Operation and Maintenance, Air Force’’,

$220,000,000.

SEC. 8105. The amount appropriated in title II for ‘‘Operation

and Maintenance, Navy’’ is hereby reduced by $44,000,000 to reduce

excess funded carryover.

SEC. 8106. (a) In addition to the amounts provided elsewhere

in this Act, the amount of $5,500,000 is hereby appropriated to

the Department of Defense for ‘‘Operation and Maintenance, Army

National Guard’’. Such amount shall be made available to the

Secretary of the Army only to make a grant in the amount of

$5,500,000 to the entity specified in subsection (b) to facilitate

access by veterans to opportunities for skilled employment in the

construction industry.

(b) The entity referred to in subsection (a) is the Center for

Military Recruitment, Assessment and Veterans Employment, a

nonprofit labor-management co-operation committee provided for

by section 302(c)(9) of the Labor-Management Relations Act, 1947

(29 U.S.C. 186(c)(9)), for the purposes set forth in section 6(b)

of the Labor Management Cooperation Act of 1978 (29 U.S.C. 175a

note).

SEC. 8107. FINANCING AND FIELDING OF KEY ARMY CAPABILITIES.—The Department of Defense and the Department of the Army

shall make future budgetary and programming plans to fully finance

the Non-Line of Sight (NLOS) Objective Force cannon and resupply

vehicle program in order to field this system in the 2008 timeframe.

As an interim capability to enhance Army lethality, survivability,

and mobility for light and medium forces before complete fielding

of the Objective Force, the Army shall ensure that budgetary and

programmatic plans will provide for no fewer than six Stryker

Brigade Combat Teams to be fielded between 2003 and 2008.

SEC. 8108. Of the funds made available in this Act, not less

than $40,600,000 shall be available to maintain an attrition reserve

force of 18 B–52 aircraft, of which $3,800,000 shall be available

from ‘‘Military Personnel, Air Force’’, $25,100,000 shall be available

from ‘‘Operation and Maintenance, Air Force’’, and $11,700,000

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

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

of 94 B–52 aircraft, including 18 attrition reserve aircraft, during

fiscal year 2004: Provided further, That the Secretary of Defense

shall include in the Air Force budget request for fiscal year 2005

amounts sufficient to maintain a B–52 force totaling 94 aircraft.
H. R. 2658—45

SEC. 8109. Of the funds made available under the heading ‘‘Operation and Maintenance, Air Force’’, $8,000,000 shall be available to realign railroad track on Elmendorf Air Force Base and

Fort Richardson: Provided, That the Secretary of the Air Force

is authorized, using funds available under the heading ‘‘Operation

and Maintenance, Air Force’’, to complete a phased repair project,

which repairs may include upgrades and additions, to the infrastructure of the operational ranges managed by the Air Force in Alaska.

The total cost of such phased projects shall not exceed $26,000,000.

(TRANSFER OF FUNDS)

SEC. 8110. Of the amounts appropriated in Public Law 107– 206 under the heading ‘‘Defense Emergency Response Fund’’, an

amount up to the fair market value of the leasehold interest in

adjacent properties necessary for the force protection requirements

of Tooele Army Depot, Utah, may be made available to resolve

any property disputes associated with Tooele Army Depot, Utah,

and to acquire such leasehold interest as required: Provided, That

none of these funds may be used to acquire fee title to the properties.

SEC. 8111. Up to $3,000,000 of the funds appropriated under

the heading ‘‘Operation and Maintenance, Navy’’ in this Act for

the Pacific Missile Range Facility may be made available to contract

for the repair, maintenance, and operation of adjacent off-base

water, drainage, and flood control systems, electrical upgrade to

support additional missions critical to base operations, and support

for a range footprint expansion to further guard against encroachment.

SEC. 8112. In addition to the amounts appropriated or otherwise made available in this Act, $34,950,000 is hereby appropriated

to the Department of Defense: Provided, That the Secretary of Defense shall make grants in the amount of $8,500,000 to the

Fort Benning Infantry Museum; $6,000,000 to the University of

South Florida for establishment and operation of the Joint Military

Science Leadership Program; $5,000,000 to the American Red Cross

for Armed Forces Emergency Services; $3,500,000 to the National

D-Day Museum; $3,000,000 to the Chicago Park District for renovation of the Broadway Armory; $2,100,000 to the National Guard

Youth Foundation; $2,100,000 to the Intrepid Sea-Air-Space

Foundation; $2,000,000 to the Army Museum of the Southwest

at Fort Sill, Oklahoma; $1,500,000 to the Tredegar National Civil

War Center; $1,000,000 to the Philadelphia Korean War Memorial;

and $250,000 to the CSS Alabama Association.

SEC. 8113. None of the funds appropriated in this Act under

the heading ‘‘Overseas Contingency Operations Transfer Account’’ may be transferred or obligated for Department of Defense expenses

not directly related to the conduct of overseas contingencies: Provided, That the Secretary of Defense shall submit a report no

later than 30 days after the end of each fiscal quarter to the

Committees on Appropriations of the Senate and House of Representatives that details any transfer of funds from the ‘‘Overseas

Contingency Operations Transfer Account’’: Provided further, That

the report shall explain any transfer for the maintenance of real

property, pay of civilian personnel, base operations support, and

weapon, vehicle or equipment maintenance.

SEC. 8114. For purposes of section 1553(b) of title 31, United

States Code, any subdivision of appropriations made in this Act

under the heading ‘‘Shipbuilding and Conversion, Navy’’ shall be
H. R. 2658—46

considered to be for the same purpose as any subdivision under

the heading ‘‘Shipbuilding and Conversion, Navy’’ appropriations

in any prior fiscal year, and the 1 percent limitation shall apply

to the total amount of the appropriation.

SEC. 8115. The budget of the President for fiscal year 2005

submitted to the Congress pursuant to section 1105 of title 31,

United States Code shall include separate budget justification documents for costs of United States Armed Forces’ participation in

contingency operations for the Military Personnel accounts, the

Operation and Maintenance accounts, and the Procurement

accounts: Provided, That these documents shall include a description of the funding requested for each contingency operation, for

each military service, to include all Active and Reserve components,

and for each appropriations account: Provided further, That these

documents shall include estimated costs for each element of expense

or object class, a reconciliation of increases and decreases for each

contingency operation, and programmatic data including, but not

limited to, troop strength for each Active and Reserve component,

and estimates of the major weapons systems deployed in support

of each contingency: Provided further, That these documents shall

include budget exhibits OP–5 and OP–32 (as defined in the Department of Defense Financial Management Regulation) for all contingency operations for the budget year and the two preceding fiscal

years.

SEC. 8116. None of the funds in this Act may be used for

research, development, test, evaluation, procurement or deployment

of nuclear armed interceptors of a missile defense system.

(TRANSFER OF FUNDS)

SEC. 8117. Of the amounts appropriated in this Act under

the headings ‘‘Research, Development, Test and Evaluation, Navy’’ and ‘‘Operation and Maintenance, Defense-Wide’’ $56,200,000 shall

be transferred to such appropriations available to the Department

of Defense as may be required to carry out the intent of Congress

as expressed in the Classified Annex accompanying the Department

of Defense Appropriations Act, 2004, and amounts so transferred

shall be available for the same purposes and for the same time

period as the appropriations to which transferred.

SEC. 8118. During the current fiscal year, section 2533a(f)

of Title 10, United States Code, shall not apply to any fish, shellfish,

or seafood product. This section is applicable to contracts and subcontracts for the procurement of commercial items notwithstanding

section 34 of the Office of Federal Procurement Policy Act (41

U.S.C. 430).

SEC. 8119. Notwithstanding section 2465 of title 10 U.S.C.,

the Secretary of the Navy may use funds appropriated in title

II of this Act under the heading, ‘‘Operation and Maintenance,

Navy’’, to liquidate the expenses incurred for private security guard

services performed at the Naval Support Unit, Saratoga Springs,

New York by Burns International Security Services, Albany, New

York in the amount of $29,323.35, plus accrued interest, if any.

SEC. 8120. Of the amounts provided in title II of this Act

under the heading, ‘‘Operation and Maintenance, Defense-Wide’’, $20,000,000 is available for the Regional Defense Counter-terrorism

Fellowship Program, to fund the education and training of foreign

military officers, ministry of defense civilians, and other foreign

security officials, to include United States military officers and
H. R. 2658—47

civilian officials whose participation directly contributes to the education and training of these foreign students.

SEC. 8121. (a) EXCHANGE REQUIRED.—In exchange for the private property described in subsection (b), the Secretary of the

Interior shall convey to the Veterans Home of California—Barstow,

Veterans of Foreign Wars Post #385E (in this section referred

to as the ‘‘recipient’’), all right, title, and interest of the United

States in and to a parcel of real property consisting of approximately

one acre in the Mojave National Preserve and designated (by section

8137 of the Department of Defense Appropriations Act, 2002 (Public

Law 107–117; 115 Stat. 2278)) as a national memorial commemorating United States participation in World War I and honoring

the American veterans of that war. Notwithstanding the conveyance

of the property under this subsection, the Secretary shall continue

to carry out the responsibilities of the Secretary under such section

8137.

(b) CONSIDERATION.—As consideration for the property to be

conveyed by the Secretary under subsection (a), Mr. and Mrs.

Henry Sandoz of Mountain Pass, California, have agreed to convey

to the Secretary a parcel of real property consisting of approximately

five acres, identified as parcel APN 569–051–44, and located in

the west 1⁄2 of the northeast 1⁄4 of the northwest 1⁄4 of the northwest 1⁄4 of section 11, township 14 north, range 15 east, San Bernardino

base and meridian.

(c) EQUAL VALUE EXCHANGE; APPRAISAL.—The values of the

properties to be exchanged under this section shall be equal or

equalized as provided in subsection (d). The value of the properties

shall be determined through an appraisal performed by a qualified

appraiser in conformance with the Uniform Appraisal Standards

for Federal Land Acquisitions (Department of Justice, December

2000).

(d) CASH EQUALIZATION.—Any difference in the value of the

properties to be exchanged under this section shall be equalized

through the making of a cash equalization payment. The Secretary

shall deposit any cash equalization payment received by the Secretary under this subsection in the Land and Water Conservation

Fund.

(e) REVERSIONARY CLAUSE.—The conveyance under subsection

(a) shall be subject to the condition that the recipient maintain

the conveyed property as a memorial commemorating United States

participation in World War I and honoring the American veterans

of that war. If the Secretary determines that the conveyed property

is no longer being maintained as a war memorial, the property

shall revert to the ownership of the United States.

(f) BOUNDARY ADJUSTMENT; ADMINISTRATION OF ACQUIRED

LAND.—The boundaries of the Mojave National Preserve shall be

adjusted to reflect the land exchange required by this section.

The property acquired by the Secretary under this section shall

become part of the Mojave National Preserve and be administered

in accordance with the laws, rules, and regulations generally

applicable to the Mojave National Preserve.

SEC. 8122. None of the funds appropriated or made available

in this Act shall be used to reduce or disestablish the operation

of the 53rd Weather Reconnaissance Squadron of the Air Force

Reserve, if such action would reduce the WC–130 Weather Reconnaissance mission below the levels funded in this Act: Provided,

That the Air Force shall allow the 53rd Weather Reconnaissance
H. R. 2658—48

Squadron to perform other missions in support of national defense

requirements during the non-hurricane season.

SEC. 8123. The Secretary of the Air Force shall convey, without

consideration, to the Inland Valley Development Agency all right,

title, and interest of the United States in and to certain parcels

of real property, including improvements thereon, located in San

Bernardino, California, that consist of approximately 39 acres and

are leased, as of June 1, 2003, by the Secretary to the Defense

Finance and Accounting Service. The conveyance shall be subject

to the condition that the Inland Valley Development Agency and

the Director of the Defense Finance and Accounting Service enter

into a lease-back agreement, acceptable to the Director, for premises

required by the Director for support operations conducted by the

Defense Finance and Accounting Service.

SEC. 8124. Notwithstanding the provisions of section 2401 of

title 10, United States Code, the Secretary of the Navy is authorized

to enter into a contract for the charter for a period through fiscal

year 2008, of the vessel, RV CORY CHOUEST (United States

Official Number 933435) in support of the Surveillance Towed Array

Sensor (SURTASS) program: Provided, That funding for this lease

shall be from within funds provided in this Act and future appropriations Acts.

SEC. 8125. In addition to the amounts appropriated or otherwise

made available elsewhere in this Act, and notwithstanding any

other provision of law, $17,000,000 is hereby appropriated to ‘‘Operation and Maintenance, Army’’, to remain available until September

30, 2004, to be available only for a grant in the amount of

$17,000,000 to the Silver Valley Unified School District, Silver

Valley, California, for the purpose of school construction at Fort

Irwin, California.

SEC. 8126. (a) The total amount appropriated or otherwise

made available in titles II, III, and IV of this Act is hereby reduced

by $1,662,000,000 to reflect savings from outsourcing, management

efficiencies, and revised economic assumptions, to be distributed

as follows:

‘‘Title II’’, $554,000,000;

‘‘Title III’’, $554,000,000; and

‘‘Title IV’’, $554,000,000.

(b) The Secretary of Defense shall allocate this reduction proportionately to each budget activity, activity group, subactivity group,

and each program, project, and activity within each applicable

appropriation account: Provided, That appropriations made available in this Act for the pay and benefits of military personnel

are exempt from reductions under this provision.

(INCLUDING TRANSFER OF FUNDS)

SEC. 8127. (a) The amount appropriated in title II for ‘‘Operation and Maintenance, Air Force’’ is hereby reduced by

$451,000,000 to reflect cash balance and rate stabilization adjustments in the Department of Defense Transportation Working Capital Fund.

(b) Not later than 60 days after the date of the enactment

of this Act, the Secretary of Defense shall transfer $451,000,000

from the Department of Defense Transportation Working Capital

Fund to ‘‘Operation and Maintenance, Air Force’’ to offset the reduction made by subsection (a). The transfer required by this subsection
H. R. 2658—49

is in addition to any other transfer authority provided to the Department of Defense.

(RESCISSION)

SEC. 8128. Of the funds made available in chapter 3 of title

I of the Emergency Wartime Supplemental Appropriations Act,

2003 (Public Law 108–11), under the heading ‘‘Iraq Freedom Fund’’, $3,490,000,000 are hereby rescinded.

SEC. 8129. Of the total amount appropriated by this Act under

the heading ‘‘Operation and Maintenance, Defense-Wide’’, the Secretary of Defense may use up to $855,566 to make additional

payment under section 363 of the Floyd D. Spence National Defense

Authorization Act for Fiscal Year 2001 (20 U.S.C. 7703a) to those

local educational agencies whose percentage reduction in the payment amount for fiscal year 2002 was in excess of the reduction

otherwise imposed under subsection (d) of such section for that

fiscal year. The Secretary of Defense may waive collection of any

overpayment made to local educational agencies under such section

for fiscal year 2002.

SEC. 8130. None of the funds appropriated or otherwise made

available by this Act may be used to implement any amendment

or revision of, or cancel, the Department of Defense Directive 1344.7,

‘‘Personal Commercial Solicitation on DoD Installations’’, until 90

days following the date the Secretary of Defense submits to Congress notice of the amendment, revision or cancellation, and the

reasons therefore.

SEC. 8131. (a) Notwithstanding any other provision of law,

none of the funds appropriated or otherwise made available in

this or any other Act may be obligated for the Terrorism Information

Awareness Program: Provided, That this limitation shall not apply

to the program hereby authorized for Processing, analysis, and

collaboration tools for counterterrorism foreign intelligence, as

described in the Classified Annex accompanying the Department

of Defense Appropriations Act, 2004, for which funds are expressly

provided in the National Foreign Intelligence Program for

counterterrorism foreign intelligence purposes.

(b) None of the funds provided for Processing, analysis, and

collaboration tools for counterterrorism foreign intelligence shall

be available for deployment or implementation except for:

(1) lawful military operations of the United States conducted outside the United States; or

(2) lawful foreign intelligence activities conducted wholly

overseas, or wholly against non-United States citizens.

(c) In this section, the term ‘‘Terrorism Information Awareness

Program’’ means the program known either as Terrorism Information Awareness or Total Information Awareness, or any successor

program, funded by the Defense Advanced Research Projects

Agency, or any other Department or element of the Federal Government, including the individual components of such Program developed by the Defense Advanced Research Projects Agency.

SEC. 8132. (a) CLOSURE OF NAVAL STATION ROOSEVELT ROADS, PUERTO RICO.—Notwithstanding any other provision of law, the

Secretary of the Navy shall close Naval Station Roosevelt Roads,

Puerto Rico, no later than 6 months after enactment of this Act.

(b) IMPLEMENTATION.—The closure provided for in subsection

(a), and subsequent disposal, shall be carried out in accordance

with the procedures and authorities contained in the Defense Base
H. R. 2658—50

Closure and Realignment Act of 1990 (title XXIX of Public Law

101–510; 10 U.S.C. 2687 note).

(c) OFFICE OF ECONOMIC ADJUSTMENT ACTIVITIES.—Notwithstanding any other provision of law, the Office of Economic Adjustment of the Department of Defense may make grants and supplement other Federal funds using funds made available by this Act

under the heading ‘‘Operation and Maintenance, Defense-Wide’’,

and the projects so supported shall be considered to be authorized

by law.

SEC. 8133. Up to $2,000,000 of the funds appropriated by

this Act under the heading, ‘‘Operation and Maintenance, Army’’,

may be made available to contract for services required to solicit

non-Federal donations to support construction and operation of

the United States Army Museum at Fort Belvoir, Virginia: Provided,

That notwithstanding any other provision of law, the Army is

authorized to receive future payments in this or the subsequent

fiscal year from any non-profit organization chartered to support

the United States Army Museum to reimburse amounts expended

by the Army pursuant to this section: Provided further, That any

reimbursements received pursuant to this section shall be merged

with ‘‘Operation and Maintenance, Army’’ and shall be made available for the same purposes and for the same time period as that

appropriation account.

SEC. 8134. DESIGNATION OF AMERICA’S NATIONAL WORLD WAR

II MUSEUM. (a) FINDINGS.—Congress makes the following findings:

(1) The National D-Day Museum, operated in New Orleans,

Louisiana by an educational foundation, has been established

with the vision ‘‘to celebrate the American Spirit’’.

(2) The National D-Day Museum is the only museum in

the United States that exists for the exclusive purpose of interpreting the American experience during the World War II years

(1939–1945) on both the battlefront and the home front and,

in doing so, covers all of the branches of the Armed Forces

and the Merchant Marine.

(3) The National D-Day Museum was founded by the preeminent American historian, Stephen E. Ambrose, as a result

of a conversation with President Dwight D. Eisenhower in

1963, when the President and former Supreme Commander,

Allied Expeditionary Forces in Europe, credited Andrew Jackson Higgins, the chief executive officer of Higgins Industries

in New Orleans, as the ‘‘man who won the war for us’’ because

the 12,000 landing craft designed by Higgins Industries made

possible all of the amphibious invasions of World War II and

carried American soldiers into every theatre of the war.

(4) The National D-Day Museum, since its grand opening

on June 6, 2000, the 56th anniversary of the D-Day invasion

of Normandy, has attracted nearly 1,000,000 visitors from

around the world, 85 percent of whom have been Americans

from across the country.

(5) American World War II veterans, called the ‘‘greatest

generation’’ of the Nation, are dying at the rapid rate of more

than 1,200 veterans each day, creating an urgent need to preserve the stories, artifacts, and heroic achievements of that

generation.
H. R. 2658—51

(6) The United States has a need to preserve forever the

knowledge and history of the Nation’s most decisive achievement in the 20th century and to portray that history to citizens,

visitors, and school children for centuries to come.

(7) Congress, recognizing the need to preserve this knowledge and history, appropriated funds in 1992 to authorize the

design and construction of The National D-Day Museum in

New Orleans to commemorate the epic 1944 Normandy invasion, and subsequently appropriated additional funds in 1998,

2000, 2001, 2002, and 2003 to help expand the exhibits in

the museum to include the D-Day invasions in the Pacific

Theatre of Operations and the other campaigns of World War

II.

(8) The State of Louisiana and thousands of donors and

foundations across the country have contributed millions of

dollars to help build this national institution.

(9) The Board of Trustees of The National D-Day Museum

is national in scope and diverse in its makeup.

(10) The World War II Memorial now under construction

on the National Mall in Washington, the District of Columbia,

will always be the memorial in our Nation where people come

to remember America’s sacrifices in World War II, while The

National D-Day Museum will always be the museum of the

American experience in the World War II years (1939–1945),

where people come to learn about Americans’ experiences

during that critical period, as well as a place where the history

of our Nation’s monumental struggle against worldwide aggression by would-be oppressors is preserved so that future generations can understand the role the United States played in

the preservation and advancement of democracy and freedom

in the middle of the 20th century.

(11) The National D-Day Museum seeks to educate a

diverse group of audiences through its collection of artifacts,

photographs, letters, documents, and first-hand personal

accounts of the participants in the war and on the home front

during one of history’s darkest hours.

(12) The National D-Day Museum is devoted to the combat

experience of United States citizen soldiers in all of the theatres

of World War II and to the heroic efforts of the men and

women on the home front who worked tirelessly to support

the troops and the war effort.

(13) The National D-Day Museum continues to add to

and maintain one of the largest personal history collections

in the United States of the men and women who fought in

World War II and who served on the home front.

(14) No other museum describes as well the volunteer

spirit that arose throughout the United States and united the

country during the World War II years.

(15) The National D-Day Museum is engaged in a 250,000

square foot expansion to include the Center for the Study

of the American Spirit, an advanced format theatre, and a

new United States pavilion.

(16) The planned ‘‘We’re All in this Together’’ exhibit will

describe the role every State, commonwealth, and territory

played in World War II, and the computer database and software of The National D-Day Museum’s educational program
H. R. 2658—52

will be made available to the teachers and school children

of every State, commonwealth, and territory.

(17) The National D-Day Museum is an official Smithsonian

affiliate institution with a formal agreement to borrow Smithsonian artifacts for future exhibitions.

(18) Le Memorial de Caen in Normandy, France has formally recognized The National D-Day Museum as its official

partner in a Patriotic Alliance signed on October 16, 2002,

by both museums.

(19) The official Battle of the Bulge museums in Luxembourg and the American Battlefield Monuments Commission

are already collaborating with The National D-Day Museum

on World War II exhibitions.

(20) For all of these reasons, it is appropriate to designate

The National D-Day Museum as ‘‘America’s National World

War II Museum’’.

(b) PURPOSES.—The purposes of this section are, through the

designation of The National D-Day Museum as ‘‘America’s National

World War II Museum’’, to express the United States Government’s

support for—

(1) the continuing preservation, maintenance, and

interpretation of the artifacts, documents, images, and history

collected by the museum;

(2) the education of the American people as to the American

experience in combat and on the home front during the World

War II years, including the conduct of educational outreach

programs for teachers and students throughout the United

States;

(3) the operation of a premier facility for the public display

of artifacts, photographs, letters, documents, and personal histories from the World War II years (1939–1945);

(4) the further expansion of the current European and

Pacific campaign exhibits in the museum, including the Center

for the Study of the American Spirit for education; and

(5) ensuring the understanding by all future generations

of the magnitude of the American contribution to the Allied

victory in World War II, the sacrifices made to preserve freedom

and democracy, and the benefits of peace for all future generations in the 21st century and beyond.

(c) DESIGNATION OF ‘‘AMERICA’S NATIONAL WORLD WAR II

MUSEUM’’.—The National D-Day Museum, New Orleans, Louisiana,

is designated as ‘‘America’s National World War II Museum’’.

SEC. 8135. NATIVE AMERICAN VETERAN HOUSING LOANS. (a)

Title I of Division K of the Consolidated Appropriations Resolution,

2003 (Public Law 108–7) is amended by striking out ‘‘expenses:

Provided, That no new loans in excess of $5,000,000 may be made

in fiscal year 2003.’’ from the paragraph under the heading ‘‘Native

American Veteran Housing Loan Program Account’’ and inserting

in lieu thereof ‘‘expenses.’’.

(b) The amendment made by subsection (a) of this section

is effective on the date of the enactment of Public Law 108–7,

February 20, 2003.

SEC. 8136. None of the funds appropriated in this Act shall

be used to study, demonstrate, or implement any plans privatizing,

divesting or transferring of any Civil Works missions, functions,

or responsibilities for the United States Army Corps of Engineers
H. R. 2658—53

to other government agencies without specific direction in a subsequent Act of Congress.

SEC. 8137. None of the funds provided in this Act may be

used to pay any fee charged by the Department of State for the

purpose of constructing new United States diplomatic facilities.

SEC. 8138. (a) The Secretary of Defense—

(1) shall review—

(A) contractual offset arrangements to which the policy

established under section 2532 of title 10, United States

Code, applies that are in effect on the date of the enactment

of this Act;

(B) memoranda of understanding and related agreements to which the limitation in section 2531(c) of such

title applies that have been entered into with a country

with respect to which such contractual offset arrangements

have been entered into and are in effect on such date;

and

(C) waivers granted with respect to a foreign country

under section 2534(d)(3) of title 10, United States Code,

that are in effect on such date; and

(2) shall determine the effects of the use of such arrangements, memoranda of understanding, agreements, and waivers

on the national technology and industrial base.

(b) The Secretary shall submit a report on the results of the

review under subsection (a) to Congress not later than March

1, 2005. The report shall include a discussion of each of the following:

(1) The effects of the contractual offset arrangements on

specific subsectors of the industrial base of the United States

and what actions have been taken to prevent or ameliorate

any serious adverse effects on such subsectors.

(2) The extent, if any, to which the contractual offset

arrangements and memoranda of understanding and related

agreements have provided for technology transfer that would

significantly and adversely affect the national technology and

industrial base.

(3) The extent to which the use of such contractual offset

arrangements is consistent with—

(A) the limitation in section 2531(c) of title 10, United

States Code, that prohibits implementation of a memorandum of understanding and related agreements if the

President, taking into consideration the results of the interagency review, determines that such memorandum of

understanding or a related agreement has or is likely to

have a significant adverse effect on United States industry

that outweighs the benefits of entering into or implementing such memorandum or agreement; and

(B) the requirements under section 2534(d) of such

title that—

(i) a waiver granted under such section not impede

cooperative programs entered into between the Department of Defense and a foreign country and not impede

the reciprocal procurement of defense items that is

entered into in accordance with section 2531 of such

title; and
H. R. 2658—54

(ii) the country with respect to which the waiver

is granted not discriminate against defense items produced in the United States to a greater degree than

the United States discriminates against defense items

produced in that country.

(c) The Secretary shall submit to the President any recommendations regarding the use or administration of contractual

offset arrangements and memoranda of understanding and related

agreements referred to in subsection (a) that the Secretary considers

an appropriate response to the findings resulting from the Secretary’s review.

SEC. 8139. It is the sense of the Senate that—

(1) any request for funds for a fiscal year for an ongoing

overseas military operation, including operations in Afghanistan and Iraq, should be included in the annual budget of

the President for such fiscal year as submitted to Congress

under section 1105(a) of title 31, United States Code; and

(2) any funds provided for such fiscal year for such a

military operation should be provided in appropriations Acts

for such fiscal year through appropriations to specific accounts

set forth in such Acts.

SEC. 8140. STUDY REGARDING MAIL DELIVERY IN THE MIDDLE

EAST. (a) STUDY.—The Comptroller General of the United States

shall conduct a review of the delivery of mail to troops in the

Middle East and the study should:

(1) Determine delivery times, reliability, and losses for

mail and parcels to and from troops stationed in the Middle

East.

(2) Identify and analyze mail and parcel delivery service

efficiency issues during Operations Desert Shield/Desert Storm,

compared to such services which occurred during Operation

Iraqi Freedom.

(3) Identify cost efficiencies and benefits of alternative

delivery systems or modifications to existing delivery systems

to improve the delivery times of mail and parcels.

(b) REPORT.—Not later than 60 days after the date of enactment

of this Act, the Comptroller General of the United States shall

submit a report to the congressional defense committees on their

findings and recommendations.

SEC. 8141. (a) LIMITATION ON USE OF FUNDS.—Notwithstanding

any other provision of law, no funds appropriated or otherwise

made available by this Act may be obligated or expended to

decommission a Naval or Marine Corps Reserve aviation squadron

until the report required by subsection (b) is submitted to the

committees of Congress referred to in that subsection.

(b) REPORT ON NAVY AND MARINE CORPS TACTICAL AVIATION

REQUIREMENTS.—

(1) Not later than February 1, 2004, the Comptroller General of the United States shall submit to the congressional

defense committees a report on the requirements of the Navy

and the Marine Corps for tactical aviation, including mission

requirements, recapitalization requirements, and the role of

Naval and Marine Corps Reserve assets in meeting such

requirements.

(2) The report shall include the recommendations of the

Comptroller General on an appropriate force structure for the

active and reserve aviation units of the Navy and the Marine
H. R. 2658—55

Corps, and related personnel requirements, for the 10-year

period beginning on the date of the report.

SEC. 8142. The Secretary of the Air Force, in consultation

with the Chief of Air Force Reserve, shall study the mission of

the 932nd Airlift Wing, Scott Air Force Base, Illinois, and evaluate

whether it would be appropriate to substitute for that mission

a mixed mission of transporting patients, passengers, and cargo

that would increase the airlift capability of the Air Force while

continuing the use and training of aeromedical evacuation personnel. The Secretary shall submit a report on the results of the

study and evaluation to the congressional defense committees not

later than January 16, 2004.

SEC. 8143. REPORTS ON SAFETY ISSUES DUE TO DEFECTIVE

PARTS. (a) REPORT FROM THE SECRETARY.—The Secretary shall by

March 31, 2004, examine and report back to the congressional

defense committees on—

(1) how to implement a system for tracking safety-critical

parts so that parts discovered to be defective, including due

to faulty or fraudulent work by a contractor or subcontractor,

can be identified and found;

(2) appropriate standards and procedures to ensure timely

notification of contracting agencies and contractors about safety

issues including parts that may be defective, and whether the

Government Industry Data Exchange Program should be made

mandatory;

(3) efforts to find and test airplane parts that have been

heat treated by companies alleged to have done so improperly;

and

(4) whether contracting agencies and contractors have been

notified about alleged improper heat treatment of airplane

parts.

(b) REPORT FROM THE COMPTROLLER GENERAL.—The Comptroller General shall examine and report back to the congressional

defense committees on—

(1) the oversight of subcontractors by prime contractors,

and testing and quality assurance of the work of the subcontractors; and

(2) the oversight of prime contractors by the Department,

the accountability of prime contractors for overseeing subcontractors, and the use of enforcement mechanisms by the

Department.

SEC. 8144. Section 8149(b) of the Department of Defense Appropriations Act, 2003 (Public Law 107–248; 116 Stat. 1572) is

amended by adding at the end the following new paragraph:

‘‘(3) This subsection shall remain in effect for fiscal year 2004.’’.

SEC. 8145. (a) The Secretary of the Navy shall transfer by

gift under section 7306 of title 10, United States Code, the Sturgeon

Class submarine NARWHAL (SSN–671) to the National Submarine

Science Discovery Center, Newport, Kentucky, upon receipt of an

application for donation of such vessel to the Center that is satisfactory to the Secretary.

(b) Before transferring the submarine as required under subsection (a), the Secretary shall remove the nuclear reactor compartment and the other classified or otherwise sensitive military equipment of the submarine.

(c) Subsection (c) of section 7306 of title 10, United States

Code, does not apply to the cost of carrying out subsection (b)
H. R. 2658—56

of this section, any other cost of dismantling the submarine, and

the cost of any recycling or disposal of equipment and materiel

removed from the submarine before transfer.

(d) Subsection (d) of section 7306 of title 10, United States

Code, does not apply to the transfer required under subsection

(a).

SEC. 8146. FISCAL YEAR 2004 EXEMPTION FOR CERTAIN MEMBERS OF THE ARMED FORCES FROM REQUIREMENT TO PAY SUBSISTENCE CHARGES WHILE HOSPITALIZED. (a) IN GENERAL.—Section

1075 of title 10, United States Code, is amended—

(1) by inserting ‘‘(a) IN GENERAL.—’’ before ‘‘When’’; and

(2) by striking the second sentence and inserting the following:

‘‘(b) EXCEPTIONS.—Subsection (a) shall not apply to any of the

following:

‘‘(1) An enlisted member, or former enlisted member, of

a uniformed service who is entitled to retired or retainer pay

or equivalent pay.

‘‘(2) An officer or former officer of a uniformed service,

or an enlisted member or former enlisted member of a uniformed service not described in paragraph (1), who is hospitalized under section 1074 because of an injury incurred (as determined under criteria prescribed by the Secretary of Defense)—

‘‘(A) as a direct result of armed conflict;

‘‘(B) while engaged in hazardous service;

‘‘(C) in the performance of duty under conditions simulating war; or

‘‘(D) through an instrumentality of war.

‘‘(c) APPLICABILITY.—The exception provided in paragraph (2)

of subsection (b) shall apply only during fiscal year 2004.’’.

(b) EFFECTIVE DATE.—Subsections (b) and (c) of section 1075

of title 10, United States Code, as added by subsection (a), shall

take effect on October 1, 2003, and apply with respect to injuries

incurred before, on, or after that date.

This Act may be cited as the ‘‘Department of Defense Appropriations Act, 2004’’.

Speaker of the House of Representatives.

Vice President of the United States and

President of the Senate.