II

Calendar No. 169

107TH CONGRESS

1ST SESSION S. 1460

[Report No. 107–68]

Making appropriations for military construction, family housing, and base

realignment and closure for the Department of Defense for the fiscal

year ending September 30, 2002, and for other purposes.

IN THE SENATE OF THE UNITED STATES

SEPTEMBER 25, 2001

Mrs. FEINSTEIN, from the Committee on Appropriations, reported the

following original bill; which was read twice and placed on the calendar

A BILL

Making appropriations for military construction, family housing, and base realignment and closure for the Department of Defense for the fiscal year ending September

30, 2002, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 That the following sums are appropriated, out of any

4 money in the Treasury not otherwise appropriated, for

5 military construction, family housing, and base realign6 ment and closure functions administered by the Depart-
2

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1 ment of Defense, for the fiscal year ending September 30,

2 2002, and for other purposes, namely:

3 MILITARY CONSTRUCTION, ARMY

4 (INCLUDING RESCISSION)

5 For acquisition, construction, installation, and equip6 ment of temporary or permanent public works, military

7 installations, facilities, and real property for the Army as

8 currently authorized by law, including personnel in the

9 Army Corps of Engineers and other personal services nec10 essary for the purposes of this appropriation, and for con11 struction and operation of facilities in support of the func12 tions of the Commander in Chief, $1,668,957,000, to re13 main available until September 30, 2006: Provided, That

14 of this amount, not to exceed $176,184,000 shall be avail15 able for study, planning, design, architect and engineer

16 services, and host nation support, as authorized by law,

17 unless the Secretary of Defense determines that additional

18 obligations are necessary for such purposes and notifies

19 the Committees on Appropriations of both Houses of Con20 gress of his determination and the reasons therefor: Pro21 vided further, That of the funds appropriated for ‘‘Military

22 Construction, Army’’ under division A of Public Law 106–

23 246, $26,400,000 are rescinded.
3

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1 MILITARY CONSTRUCTION, NAVY

2 (INCLUDING RESCISSION)

3 For acquisition, construction, installation, and equip4 ment of temporary or permanent public works, naval in5 stallations, facilities, and real property for the Navy as

6 currently authorized by law, including personnel in the

7 Naval Facilities Engineering Command and other per8 sonal services necessary for the purposes of this appropria9 tion, $1,148,633,000, to remain available until September

10 30, 2006: Provided, That of this amount, not to exceed

11 $37,332,000 shall be available for study, planning, design,

12 architect and engineer services, as authorized by law, un13 less the Secretary of Defense determines that additional

14 obligations are necessary for such purposes and notifies

15 the Committees on Appropriations of both Houses of Con16 gress of his determination and the reasons therefor: Pro17 vided further, That of the funds appropriated for ‘‘Military

18 Construction, Navy’’ under division A of Public Law 106–

19 246, $19,588,000 are rescinded.

20 MILITARY CONSTRUCTION, AIR FORCE

21 (INCLUDING RESCISSION)

22 For acquisition, construction, installation, and equip23 ment of temporary or permanent public works, military

24 installations, facilities, and real property for the Air Force

25 as currently authorized by law, $1,148,269,000, to remain
4

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1 available until September 30, 2006: Provided, That of this

2 amount, not to exceed $83,420,000 shall be available for

3 study, planning, design, architect and engineer services,

4 as authorized by law, unless the Secretary of Defense de5 termines that additional obligations are necessary for such

6 purposes and notifies the Committees on Appropriations

7 of both Houses of Congress of his determination and the

8 reasons therefor: Provided further, That of the funds ap9 propriated for ‘‘Military Construction, Air Force’’ under

10 previous Military Construction Acts, $4,000,000 are re11 scinded.

12 MILITARY CONSTRUCTION, DEFENSE-WIDE

13 (INCLUDING TRANSFER AND RESCISSIONS OF FUNDS)

14 For acquisition, construction, installation, and equip15 ment of temporary or permanent public works, installa16 tions, facilities, and real property for activities and agen17 cies of the Department of Defense (other than the military

18 departments), as currently authorized by law,

19 $881,058,000, to remain available until September 30,

20 2006: Provided, That such amounts of this appropriation

21 as may be determined by the Secretary of Defense may

22 be transferred to such appropriations of the Department

23 of Defense available for military construction or family

24 housing as he may designate, to be merged with and to

25 be available for the same purposes, and for the same time
5

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1 period, as the appropriation or fund to which transferred:

2 Provided further, That of the amount appropriated, not

3 to exceed $88,496,000 shall be available for study, plan4 ning, design, architect and engineer services, as authorized

5 by law, unless the Secretary of Defense determines that

6 additional obligations are necessary for such purposes and

7 notifies the Committees on Appropriations of both Houses

8 of Congress of his determination and the reasons therefor:

9 Provided further, That of the funds appropriated for ‘‘Mili10 tary Construction, Defense-wide’’ under division A of Pub11 lic Law 106–246, $55,030,000 are rescinded: Provided

12 further, That of the funds appropriated for ‘‘Military Con13 struction, Defense-wide’’ under division B of Public Law

14 106–246, $10,250,000 are rescinded: Provided further,

15 That of the funds appropriated for ‘‘Military Construc16 tion, Defense-Wide’’ under previous Military Construction

17 Acts, $4,000,000 are rescinded.

18 MILITARY CONSTRUCTION, ARMY NATIONAL GUARD

19 For construction, acquisition, expansion, rehabilita20 tion, and conversion of facilities for the training and ad21 ministration of the Army National Guard, and contribu22 tions therefor, as authorized by chapter 1803 of title 10,

23 United States Code, and Military Construction Authoriza24 tion Acts, $378,549,000, to remain available until Sep25 tember 30, 2006.
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1 MILITARY CONSTRUCTION, AIR NATIONAL GUARD

2 For construction, acquisition, expansion, rehabilita3 tion, and conversion of facilities for the training and ad4 ministration of the Air National Guard, and contributions

5 therefor, as authorized by chapter 1803 of title 10, United

6 States Code, and Military Construction Authorization

7 Acts, $222,767,000, to remain available until September

8 30, 2006.

9 MILITARY CONSTRUCTION, ARMY RESERVE

10 For construction, acquisition, expansion, rehabilita11 tion, and conversion of facilities for the training and ad12 ministration of the Army Reserve as authorized by chapter

13 1803 of title 10, United States Code, and Military Con14 struction Authorization Acts, $111,404,000, to remain

15 available until September 30, 2006.

16 MILITARY CONSTRUCTION, NAVAL RESERVE

17 (INCLUDING RESCISSION)

18 For construction, acquisition, expansion, rehabilita19 tion, and conversion of facilities for the training and ad20 ministration of the reserve components of the Navy and

21 Marine Corps as authorized by chapter 1803 of title 10,

22 United States Code, and Military Construction Authoriza23 tion Acts, $33,641,000, to remain available until Sep24 tember 30, 2006: Provided, That of the funds appro25 priated for ‘‘Military Construction, Naval Reserve’’ under
7

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1 division A of Public Law 106–246, $925,000 are re2 scinded.

3 MILITARY CONSTRUCTION, AIR FORCE RESERVE

4 For construction, acquisition, expansion, rehabilita5 tion, and conversion of facilities for the training and ad6 ministration of the Air Force Reserve as authorized by

7 chapter 1803 of title 10, United States Code, and Military

8 Construction Authorization Acts, $53,732,000, to remain

9 available until September 30, 2006.

10 NORTH ATLANTIC TREATY ORGANIZATION SECURITY

11 INVESTMENT PROGRAM

12 For the United States share of the cost of the North

13 Atlantic Treaty Organization Security Investment Pro14 gram for the acquisition and construction of military fa15 cilities and installations (including international military

16 headquarters) and for related expenses for the collective

17 defense of the North Atlantic Treaty Area as authorized

18 in Military Construction Authorization Acts and section

19 2806 of title 10, United States Code, $162,600,000, to

20 remain available until expended.

21 FAMILY HOUSING, ARMY

22 For expenses of family housing for the Army for con23 struction, including acquisition, replacement, addition, ex24 pansion, extension and alteration and for operation and

25 maintenance, including debt payment, leasing, minor con-
8

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1 struction, principal and interest charges, and insurance

2 premiums, as authorized by law, as follows: for Construc3 tion, $312,742,000, to remain available until September

4 30, 2006; for Operation and Maintenance, and for debt

5 payment, $1,108,991,000; in all $1,421,733,000.

6 FAMILY HOUSING, NAVY AND MARINE CORPS

7 For expenses of family housing for the Navy and Ma8 rine Corps for construction, including acquisition, replace9 ment, addition, expansion, extension and alteration and

10 for operation and maintenance, including debt payment,

11 leasing, minor construction, principal and interest

12 charges, and insurance premiums, as authorized by law,

13 as follows: for Construction, $312,600,000, to remain

14 available until September 30, 2006; for Operation and

15 Maintenance, and for debt payment, $918,095,000; in all

16 $1,230,695,000.

17 FAMILY HOUSING, AIR FORCE

18 For expenses of family housing for the Air Force for

19 construction, including acquisition, replacement, addition,

20 expansion, extension and alteration and for operation and

21 maintenance, including debt payment, leasing, minor con22 struction, principal and interest charges, and insurance

23 premiums, as authorized by law, as follows: for Construc24 tion, $550,703,000, to remain available until September
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1 30, 2006; for Operation and Maintenance, and for debt

2 payment, $869,121,000; in all $1,419,824,000.

3 FAMILY HOUSING, DEFENSE-WIDE

4 For expenses of family housing for the activities and

5 agencies of the Department of Defense (other than the

6 military departments) for construction, including acquisi7 tion, replacement, addition, expansion, extension and al8 teration, and for operation and maintenance, leasing, and

9 minor construction, as authorized by law, as follows: for

10 Construction, $250,000 to remain available until Sep11 tember 30, 2006; for Operation and Maintenance,

12 $43,762,000; in all $44,012,000.

13 DEPARTMENT OF DEFENSE FAMILY HOUSING

14 IMPROVEMENT FUND

15 For the Department of Defense Family Housing Im16 provement Fund, $2,000,000, to remain available until ex17 pended, for family housing initiatives undertaken pursu18 ant to section 2883 of title 10, United States Code, pro19 viding alternative means of acquiring and improving mili20 tary family housing, and supporting facilities.

21 HOMEOWNERS ASSISTANCE FUND, DEFENSE

22 For the Homeowners Assistance Fund established by

23 Section 1013 of the Demonstration Cities and Metropoli24 tan Development Act of 1966, as amended (42 U.S.C.

25 3374) $10,119,000, to remain available until expended.
10

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1 BASE REALIGNMENT AND CLOSURE ACCOUNT, PART IV

2 For deposit into the Department of Defense Base

3 Closure Account 1990 established by section 2906(a)(1)

4 of the Department of Defense Authorization Act, 1991

5 (Public Law 101–510), $682,200,000, to remain available

6 until expended.

7 GENERAL PROVISIONS

8 SEC. 101. None of the funds appropriated in Military

9 Construction Appropriations Acts shall be expended for

10 payments under a cost-plus-a-fixed-fee contract for con11 struction, where cost estimates exceed $25,000, to be per12 formed within the United States, except Alaska, without

13 the specific approval in writing of the Secretary of Defense

14 setting forth the reasons therefor.

15 SEC. 102. Funds appropriated to the Department of

16 Defense for construction shall be available for hire of pas17 senger motor vehicles.

18 SEC. 103. Funds appropriated to the Department of

19 Defense for construction may be used for advances to the

20 Federal Highway Administration, Department of Trans21 portation, for the construction of access roads as author22 ized by section 210 of title 23, United States Code, when

23 projects authorized therein are certified as important to

24 the national defense by the Secretary of Defense.
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1 SEC. 104. None of the funds appropriated in this Act

2 may be used to begin construction of new bases inside the

3 continental United States for which specific appropria4 tions have not been made.

5 SEC. 105. No part of the funds provided in Military

6 Construction Appropriations Acts shall be used for pur7 chase of land or land easements in excess of 100 percent

8 of the value as determined by the Army Corps of Engi9 neers or the Naval Facilities Engineering Command, ex10 cept: (1) where there is a determination of value by a Fed11 eral court; (2) purchases negotiated by the Attorney Gen12 eral or his designee; (3) where the estimated value is less

13 than $25,000; or (4) as otherwise determined by the Sec14 retary of Defense to be in the public interest.

15 SEC. 106. None of the funds appropriated in Military

16 Construction Appropriations Acts shall be used to: (1) ac17 quire land; (2) provide for site preparation; or (3) install

18 utilities for any family housing, except housing for which

19 funds have been made available in annual Military Con20 struction Appropriations Acts.

21 SEC. 107. None of the funds appropriated in Military

22 Construction Appropriations Acts for minor construction

23 may be used to transfer or relocate any activity from one

24 base or installation to another, without prior notification

25 to the Committees on Appropriations.
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1 SEC. 108. No part of the funds appropriated in Mili2 tary Construction Appropriations Acts may be used for

3 the procurement of steel for any construction project or

4 activity for which American steel producers, fabricators,

5 and manufacturers have been denied the opportunity to

6 compete for such steel procurement.

7 SEC. 109. None of the funds available to the Depart8 ment of Defense for military construction or family hous9 ing during the current fiscal year may be used to pay real

10 property taxes in any foreign nation.

11 SEC. 110. None of the funds appropriated in Military

12 Construction Appropriations Acts may be used to initiate

13 a new installation overseas without prior notification to

14 the Committees on Appropriations.

15 SEC. 111. None of the funds appropriated in Military

16 Construction Appropriations Acts may be obligated for ar17 chitect and engineer contracts estimated by the Govern18 ment to exceed $500,000 for projects to be accomplished

19 in Japan, in any NATO member country, or in countries

20 bordering the Arabian Gulf, unless such contracts are

21 awarded to United States firms or United States firms

22 in joint venture with host nation firms.

23 SEC. 112. None of the funds appropriated in Military

24 Construction Appropriations Acts for military construc25 tion in the United States territories and possessions in the
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1 Pacific and on Kwajalein Atoll, or in countries bordering

2 the Arabian Gulf, may be used to award any contract esti3 mated by the Government to exceed $1,000,000 to a for4 eign contractor: Provided, That this section shall not be

5 applicable to contract awards for which the lowest respon6 sive and responsible bid of a United States contractor ex7 ceeds the lowest responsive and responsible bid of a for8 eign contractor by greater than 20 percent: Provided fur9 ther, That this section shall not apply to contract awards

10 for military construction on Kwajalein Atoll for which the

11 lowest responsive and responsible bid is submitted by a

12 Marshallese contractor.

13 SEC. 113. The Secretary of Defense is to inform the

14 appropriate committees of Congress, including the Com15 mittees on Appropriations, of the plans and scope of any

16 proposed military exercise involving United States per17 sonnel 30 days prior to its occurring, if amounts expended

18 for construction, either temporary or permanent, are an19 ticipated to exceed $100,000.

20 SEC. 114. Not more than 20 percent of the appro21 priations in Military Construction Appropriations Acts

22 which are limited for obligation during the current fiscal

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

24 fiscal year.
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1 (TRANSFER OF FUNDS)

2 SEC. 115. Funds appropriated to the Department of

3 Defense for construction in prior years shall be available

4 for construction authorized for each such military depart5 ment by the authorizations enacted into law during the

6 current session of Congress.

7 SEC. 116. For military construction or family housing

8 projects that are being completed with funds otherwise ex9 pired or lapsed for obligation, expired or lapsed funds may

10 be used to pay the cost of associated supervision, inspec11 tion, overhead, engineering and design on those projects

12 and on subsequent claims, if any.

13 SEC. 117. Notwithstanding any other provision of

14 law, any funds appropriated to a military department or

15 defense agency for the construction of military projects

16 may be obligated for a military construction project or

17 contract, or for any portion of such a project or contract,

18 at any time before the end of the fourth fiscal year after

19 the fiscal year for which funds for such project were ap20 propriated if the funds obligated for such project: (1) are

21 obligated from funds available for military construction

22 projects; and (2) do not exceed the amount appropriated

23 for such project, plus any amount by which the cost of

24 such project is increased pursuant to law.
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1 (TRANSFER OF FUNDS)

2 SEC. 118. During the 5-year period after appropria3 tions available to the Department of Defense for military

4 construction and family housing operation and mainte5 nance and construction have expired for obligation, upon

6 a determination that such appropriations will not be nec7 essary for the liquidation of obligations or for making au8 thorized adjustments to such appropriations for obliga9 tions incurred during the period of availability of such ap10 propriations, unobligated balances of such appropriations

11 may be transferred into the appropriation ‘‘Foreign Cur12 rency Fluctuations, Construction, Defense’’ to be merged

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

14 the same purposes as the appropriation to which trans15 ferred.

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

17 Committees on Appropriations of the Senate and the

18 House of Representatives with an annual report by Feb19 ruary 15, containing details of the specific actions pro20 posed to be taken by the Department of Defense during

21 the current fiscal year to encourage other member nations

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

23 and United States allies bordering the Arabian Gulf to as24 sume a greater share of the common defense burden of

25 such nations and the United States.
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1 (TRANSFER OF FUNDS)

2 SEC. 120. During the current fiscal year, in addition

3 to any other transfer authority available to the Depart4 ment of Defense, proceeds deposited to the Department

5 of Defense Base Closure Account established by section

6 207(a)(1) of the Defense Authorization Amendments and

7 Base Closure and Realignment Act (Public Law 100–526)

8 pursuant to section 207(a)(2)(C) of such Act, may be

9 transferred to the account established by section

10 2906(a)(1) of the Department of Defense Authorization

11 Act, 1991, to be merged with, and to be available for the

12 same purposes and the same time period as that account.

13 (TRANSFER OF FUNDS)

14 SEC. 121. Subject to 30 days prior notification to the

15 Committees on Appropriations, such additional amounts

16 as may be determined by the Secretary of Defense may

17 be transferred to the Department of Defense Family

18 Housing Improvement Fund from amounts appropriated

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

20 merged with and to be available for the same purposes

21 and for the same period of time as amounts appropriated

22 directly to the Fund: Provided, That appropriations made

23 available to the Fund shall be available to cover the costs,

24 as defined in section 502(5) of the Congressional Budget

25 Act of 1974, of direct loans or loan guarantees issued by

26 the Department of Defense pursuant to the provisions of
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1 subchapter IV of chapter 169, title 10, United States

2 Code, pertaining to alternative means of acquiring and im3 proving military family housing and supporting facilities.

4 SEC. 122. None of the funds appropriated or made

5 available by this Act may be obligated for Partnership for

6 Peace Programs in the New Independent States of the

7 former Soviet Union.

8 SEC. 123. (a) Not later than 60 days before issuing

9 any solicitation for a contract with the private sector for

10 military family housing the Secretary of the military de11 partment concerned shall submit to the congressional de12 fense committees the notice described in subsection (b).

13 (b)(1) A notice referred to in subsection (a) is a no14 tice of any guarantee (including the making of mortgage

15 or rental payments) proposed to be made by the Secretary

16 to the private party under the contract involved in the

17 event of—

18 (A) the closure or realignment of the installa19 tion for which housing is provided under the con20 tract;

21 (B) a reduction in force of units stationed at

22 such installation; or

23 (C) the extended deployment overseas of units

24 stationed at such installation.
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1 (2) Each notice under this subsection shall specify

2 the nature of the guarantee involved and assess the extent

3 and likelihood, if any, of the liability of the Federal Gov4 ernment with respect to the guarantee.

5 (c) In this section, the term ‘‘congressional defense

6 committees’’ means the following:

7 (1) The Committee on Armed Services and the

8 Military Construction Subcommittee, Committee on

9 Appropriations of the Senate.

10 (2) The Committee on Armed Services and the

11 Military Construction Subcommittee, Committee on

12 Appropriations of the House of Representatives.

13 (TRANSFER OF FUNDS)

14 SEC. 124. During the current fiscal year, in addition

15 to any other transfer authority available to the Depart16 ment of Defense, amounts may be transferred from the

17 account established by section 2906(a)(1) of the Depart18 ment of Defense Authorization Act, 1991, to the fund es19 tablished by section 1013(d) of the Demonstration Cities

20 and Metropolitan Development Act of 1966 (42 U.S.C.

21 3374) to pay for expenses associated with the Home22 owners Assistance Program. Any amounts transferred

23 shall be merged with and be available for the same pur24 poses and for the same time period as the fund to which

25 transferred.
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1 SEC. 125. Notwithstanding this or any other provi2 sion of law, funds appropriated in Military Construction

3 Appropriations Acts for operations and maintenance of

4 family housing shall be the exclusive source of funds for

5 repair and maintenance of all family housing units, includ6 ing flag and general officer quarters: Provided, That not

7 more than $35,000 per unit may be spent annually for

8 the maintenance and repair of any general or flag officer

9 quarters without 30 days advance prior notification of the

10 appropriate committees of Congress: Provided further,

11 That the Under Secretary of Defense (Comptroller) is to

12 report annually to the Committees on Appropriations all

13 operations and maintenance expenditures for each indi14 vidual flag and general officer quarters for the prior fiscal

15 year.

16 SEC. 126. In addition to the amounts provided in

17 Public Law 107–20, of the funds appropriated under the

18 heading ‘‘Military Construction, Air Force’’ in this Act,

19 $8,000,000 is to remain available until September 30,

20 2005: Provided, That notwithstanding any other provision

21 of law, such funds may be obligated or expended to carry

22 out planning and design and military construction activi23 ties at the Masirah Island Airfield in Oman, not otherwise

24 authorized by law.
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1 SEC. 127. Not later than 90 days after the enactment

2 of this bill, the Secretary of Defense shall submit to the

3 congressional defense committees a master plan for the

4 environmental remediation of Hunters Point Naval Ship5 yard, California. The plan shall identify an aggregate cost

6 estimate for the entire project as well as cost estimates

7 for individual parcels. The plan shall also include a de8 tailed cleanup schedule and an analysis of whether the De9 partment is meeting legal requirements and community

10 commitments. Following submission of the initial report,

11 the Department shall submit semi-annual progress reports

12 to the congressional defense committees.

13 This Act may be cited as the ‘‘Military Construction

14 Appropriations Act, 2002’’.
Calendar No. 169

107TH CONGRESS

1ST SESSION S. 1460

[Report No. 107–68]

A BILL

Making appropriations for military construction,

family housing, and base realignment and closurefor the Department of Defense for the fiscal yearending September 30, 2002, and for other purposes.

SEPTEMBER 25, 2001

Read twice and placed on the calendar