89–422

108TH CONGRESS REPORT " HOUSE OF REPRESENTATIVES ! 1st Session 108–283

MAKING APPROPRIATIONS FOR THE DEPARTMENT OF 

DEFENSE FOR THE FISCAL YEAR ENDING SEPTEMBER 

30, 2004, AND FOR OTHER PURPOSES 

SEPTEMBER 24, 2003.—Ordered to be printed 

Mr. LEWIS of California, from the committee of conference, 

submitted the following 

CONFERENCE REPORT 

[To accompany H.R. 2658]

The committee of conference on the disagreeing votes of the 

two Houses on the amendment of the Senate to the bill (H.R. 2658) 

‘‘making appropriations for the Department of Defense for the fiscal year ending September 30, 2004, and for other purposes’’, having met, after full and free conference, have agreed to recommend 

and do recommend to their respective Houses as follows: 

That the House recede from its disagreement to the amendment of the Senate, and agree to the same with an amendment, as 

follows: 

In lieu of the matter stricken and inserted by said amendment, 

insert:

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; 

2

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 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 

3

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. 

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 

4

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 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 

5

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 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. 

6

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 

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. 

7

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. 

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 

8

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. 

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. 

9

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 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. 

10

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 contractorowned 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. 

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. 

11

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 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; 

12

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 destination 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 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 prosVerDate jul 14 2003 23:57 Sep 25, 2003 Jkt 089422 PO 00000 Frm 00012 Fmt 6659 Sfmt 6603 E:\HR\OC\HR283.XXX HR283
13

ecuted 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 

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 

14

$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 therein, may be acquired, and construction prosecuted thereon prior to approval of 

title; reserve plant and Government and contractor-owned 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 ReVerDate jul 14 2003 23:57 Sep 25, 2003 Jkt 089422 PO 00000 Frm 00014 Fmt 6659 Sfmt 6603 E:\HR\OC\HR283.XXX HR283
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search 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. 

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 

16

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 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 

17

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 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 

18

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. 

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 

19

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, 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. 

20

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 $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 

21

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. 

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 full-time 

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); 

22

(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 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 

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bursement 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 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 

24

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 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 Javits-WagnerO’Day Act (41 U.S.C. 46–48). 

25

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 

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 

26

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. 

(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 esVerDate jul 14 2003 23:57 Sep 25, 2003 Jkt 089422 PO 00000 Frm 00026 Fmt 6659 Sfmt 6603 E:\HR\OC\HR283.XXX HR283
27

timates 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 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. 

28

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 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 budgVerDate jul 14 2003 23:57 Sep 25, 2003 Jkt 089422 PO 00000 Frm 00028 Fmt 6659 Sfmt 6603 E:\HR\OC\HR283.XXX HR283
29

eted 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. 

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 costcompetitive, 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 

30

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 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-by-case 

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; 

31

‘‘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, Defense- Wide, 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 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 

32

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 

(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 counter-drug 

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. 

33

(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-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 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. 

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 

34

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 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 ReVerDate jul 14 2003 23:57 Sep 25, 2003 Jkt 089422 PO 00000 Frm 00034 Fmt 6659 Sfmt 6603 E:\HR\OC\HR283.XXX HR283
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lations 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. 

(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 

36

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 include 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 

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. 

37

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-by-case 

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. 

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 

38

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 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 considVerDate jul 14 2003 23:57 Sep 25, 2003 Jkt 089422 PO 00000 Frm 00038 Fmt 6659 Sfmt 6603 E:\HR\OC\HR283.XXX HR283
39

ered 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 MAN- AGEMENT 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. 

(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 

40

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 

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 reVerDate jul 14 2003 23:57 Sep 25, 2003 Jkt 089422 PO 00000 Frm 00040 Fmt 6659 Sfmt 6603 E:\HR\OC\HR283.XXX HR283
41

sources 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, DefenseWide’’, $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 

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 

42

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. 

(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. 

43

(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’’: 

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) 

44

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 publicprivate 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 funds in combination with 

these Federal funds to provide assistance for the authorized purpose, if the non-Federal entity requests such assistance and the nonFederal 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 NaVerDate jul 14 2003 23:57 Sep 25, 2003 Jkt 089422 PO 00000 Frm 00044 Fmt 6659 Sfmt 6603 E:\HR\OC\HR283.XXX HR283
45

tional 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 CAPABILI- TIES.—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. 

SEC. 8109. Of the funds made available under the heading ‘‘Op- eration 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, 

46

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 DDay 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 

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 FiVerDate jul 14 2003 23:57 Sep 25, 2003 Jkt 089422 PO 00000 Frm 00046 Fmt 6659 Sfmt 6603 E:\HR\OC\HR283.XXX HR283
47

nancial 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 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 

48

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 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 

49

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 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 

50

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 

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 nonFederal 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 auVerDate jul 14 2003 23:57 Sep 25, 2003 Jkt 089422 PO 00000 Frm 00050 Fmt 6659 Sfmt 6603 E:\HR\OC\HR283.XXX HR283
51

thorized 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. 

(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. 

52

(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 

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. 

53

(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 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; 

54

(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 

(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—

55

(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 

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. 

56

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) 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 SUBSIST- ENCE 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 

57

(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’’.

And the Senate agree to the same.

JERRY LEWIS, 

C. W. BILL YOUNG, 

DAVID L. HOBSON, 

HENRY BONILLA, 

GEORGE R. NETHERCUTT, Jr., 

RANDY ‘‘DUKE’’ CUNNINGHAM, 

RODNEY P. FRELINGHUYSEN, 

TODD TIAHRT, 

ROGER F. WICKER, 

JOHN P. MURTHA, 

NORMAN D. DICKS, 

MARTIN OLAV SABO, 

PETER J. VISCLOSKY, 

JAMES P. MORAN, 

DAVID R. OBEY, 

Managers on the Part of the House.

TED STEVENS, 

THAD COCHRAN, 

ARLEN SPECTER, 

PETE V. DOMENICI, 

CHRISTOPHER S. BOND, 

MITCH MCCONNELL, 

RICHARD C. SHELBY, 

JUDD GREGG, 

KAY BAILEY HUTCHISON, 

CONRAD BURNS, 

DANIEL K. INOUYE, 

ERNEST F. HOLLINGS, 

58

ROBERT C. BYRD, PATRICK J. LEAHY, TOM HARKIN, BYRON L. DORGAN, RICHARD J. DURBIN, HARRY REID, DIANNE FEINSTEIN, Managers on the Part of the Senate. 

(59)

JOINT EXPLANATORY STATEMENT 

The managers on the part of the House and the Senate at the 

conference on the disagreeing votes of the two Houses on the 

amendment of the Senate to the bill (H.R. 2658), making appropriations for the Department of Defense for the fiscal year ending 

September 30, 2004, and for other purposes, submit the following 

joint statement to the House and the Senate in explanation of the 

effect of the action agreed upon by the managers and recommended 

in the accompanying conference report. 

The conference agreement on the Department of Defense Appropriations Act, 2004, incorporates some of the provisions of both 

the House and Senate versions of the bill. The language and allocations set forth in House Report 108–187 and Senate Report 108–

87 should be complied with unless specifically addressed in the accompanying bill and statement of the managers to the contrary. 

Senate Amendment: The Senate deleted the entire House bill 

after the enacting clause and inserted the Senate bill. The conference agreement includes a revised bill. 

DEFINITION OF PROGRAM, PROJECT, AND ACTIVITY

The conferees agree that for the purposes of the Balanced 

Budget and Emergency Deficit Control Act of 1985 (Public Law 99–

177) as amended by the Balanced Budget and Emergency Deficit 

Control Reaffirmation Act of 1987 (Public Law 100–119) and by the 

Budget Enforcement Act of 1990 (Public Law 101–508), the term 

program, project, and activity for appropriations contained in this 

Act shall be defined as the most specific level of budget items identified in the Department of Defense Appropriations Act, 2004, the 

accompanying House and Senate Committee reports, the conference 

report and accompanying joint explanatory statement of the managers of the Committee of Conference, the related classified annexes and reports, and the P–1 and R–1 budget justification documents as subsequently modified by Congressional action. The following exception to the above definition shall apply: for the Military Personnel and the Operation and Maintenance accounts, the 

term ‘‘program, project, and activity’’ is defined as the appropriations accounts contained in the Department of Defense Appropriations Act. 

At the time the President submits his budget for fiscal year 

2005, the conferees direct the Department of Defense to transmit 

to the congressional defense committees budget justification documents to be known as the ‘‘M–1’’ and ‘‘O–1’’ which shall identify, 

at the budget activity, activity group, and subactivity group level, 

the amounts requested by the President to be appropriated to the 

Department of Defense for military personnel and operation and 

maintenance in any budget request, or amended budget request, 

for fiscal year 2005. 

60

SPECIAL INTEREST ITEMS

Items for which additional funds have been provided as shown 

in the project level adjustment tables or items identified in paragraphs using the phrase ‘‘only for’’ or ‘‘only to’’ in this Statement, 

are congressional interest items for the purpose of the Base for Reprogramming (DD 1414). Each of these items must be carried on 

the DD Form 1414 at the stated amount, or a revised amount if 

changed during the conference or if otherwise specifically addressed 

in the conference report. These items remain special interest items 

whether or not they are repeated in a subsequent conference report 

or Statement. 

REPROGRAMMING GUIDANCE

The conferees note that the conference report accompanying 

Public Law 108–7 provided a temporary increase in the thresholds 

for the prior approval reprogramming of funds for the procurement 

and research, development, test and evaluation accounts of the Department of Defense. The conferees wish to emphasize that this revision was intended to effect only the execution of funds available 

for fiscal year 2003. 

The conferees are aware that the Department of Defense believes a greater degree of latitude is needed to best utilize the resources appropriated by the Congress. The conferees have long held 

that better management and budget preparation is the solution to 

DoD’s needs, not greater fiscal flexibility which would result in less 

accountability to America’s taxpayers. It is true that the effect of 

inflation has diluted the value of numerical below threshold limits. 

The conferees, therefore, agree to continue the temporary reprogramming threshold increases, approved for fiscal year 2003, for 

procurement and research, development, test and evaluation funds 

provided in this Act for fiscal year 2004. The conferees believe the 

Defense Department needs to provide more convincing arguments 

if it expects the Committees to approve this change permanently. 

The conferees also want to be clear that the approved below threshold reprogramming limitations are the specific dollar threshold allowed for fiscal year 2003, or 20 percent of any specific line item, 

which ever is less. 

The conferees direct that the Secretary of Defense provide 

guidance to this effect to the military Services and Defense-Wide 

activities within 15 days of enactment of this Act and provide the 

congressional defense committees with a copy of this guidance.

TIMELINESS OF BUDGET JUSTIFICATION MATERIALS

The conferees concur with Senate Report 108–87 regarding the 

timeliness of budget justification materials received from the Department of Defense, and expect the problem to be resolved with 

the fiscal year 2005 budget estimate. 

CLASSIFIED ANNEX

Adjustments to classified programs are addressed in the classified annex accompanying this report.

61


Insert offset folio 001/149 here HR283.001
62

ACCURACY OF OBLIGATIONS

The conferees recommend a reduction of $115,000,000 to the 

budget request, based on a General Accounting Office (GAO) review 

of prior year unobligated and unexpended military personnel account balances. The Services certify the accuracy of present and 

prior year obligation balances annually; however, not all of the 

funds obligated are expended, and those unexpended balances are 

not always identified in the annual review certification process. Because the Services account data continue to show a pattern of 

underspending their appropriated funds, the conferees believe that 

the fiscal year 2004 military personnel budget request is overstated 

and can be reduced. 

The conferees believe the Services can improve their appropriation balance review below the budget activity to ensure that funds 

are properly obligated and expended. The conferees direct the Secretary of Defense to ensure that the Services strengthen the annual 

review process by including a review of the accuracy of prior year 

appropriations below the budget activity level. To facilitate this review, the financial management improvement initiative should include financial decision-making processes that provide transparency of disbursements at the same level as the budget submission. 

FAMILY SEPARATION ALLOWANCE AND IMMINENT DANGER PAY

The conferees recommend $128,000,000 above the budget request for Family Separation Allowance and Imminent Danger Pay 

instead of $210,205,000 as proposed by the Senate. These funds are 

provided for increases in Family Separation Allowance and Imminent Danger Pay as authorized in Public Law 108–11. 

FORCE STRUCTURE CHANGES

The conferees recommend a total of $147,100,000 in the military personnel, operation and maintenance, and procurement accounts for force structure that was not included in the budget request, as follows:

[In thousands of dollars] 

Milpers O&M Proc. Total 

Air Force B–52 aircraft .................................................................................. $3,800 25,100 $11,700 40,600

National Guard Full-Time Support: 

ARNG Civil Support Teams AGRs ......................................................... 18,000 39,300 26,900 88,200

ANG Civil Support Teams AGRs ............................................................ 4,000 ................ ................ 4,000

Ground-Based Midcourse Missile Defense Program AGRs ................... 14,300 ................ ................ 14,300

ACTIVE END STRENGTH 

[Fiscal year 2004] 

Budget Conference Conference vs. 

budget 

Army ........................................................................................................................ 480,000 480,000 ....................

Navy ........................................................................................................................ 373,800 373,800 ....................

Marine Corps ........................................................................................................... 175,000 175,000 ....................

Air Force .................................................................................................................. 359,300 359,300 ....................

63

ACTIVE END STRENGTH—Continued

[Fiscal year 2004] 

Budget Conference Conference vs. budget 

Total, Active Personnel .................................................................................. 1,388,100 1,388,100 ....................

64


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65


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66


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67


Insert offset folio 001/156 here HR283.005
68

ADJUSTMENTS TO BUDGET ACTIVITIES

Adjustments to the budget activities are as follows:

[In thousands of dollars] 

Budget Activity 2: Pay and Allowances of Enlisted Personnel: 

1050 Special Pays/Selective Reenlistment Bonuses .................. ¥16,500

Other Adjustments: 

3020 ONW/OSW/ODS CONOPS ................................................. ¥74,169

3200 Unobligated Balances ......................................................... ¥32,500

3255 Increase in Death Gratuity ................................................ 3,400

3260 Increase in FSA/IDP ........................................................... 79,000

69


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70


Insert offset folio 001/159 here HR283.007
71


Insert offset folio 001/160 here HR283.008
72

ADJUSTMENTS TO BUDGET ACTIVITIES

Adjustments to the budget activities are as follows:

[In thousands of dollars] 

Budget Activity 2: Pay and Allowances of Enlisted Personnel: 

7350 Special Pays/Selective Reenlistment Bonuses .................. ¥20,300

7450 Separation Pay .................................................................... ¥26,000

Other Adjustments: 

9420 ONW/OSW/ODS CONOPS ................................................. ¥1,203

9550 Unobligated Balances ......................................................... ¥11,000

9610 Increase in Death Gratuity ................................................ 1,500

9620 Increase in FSA/IDP ........................................................... 20,000

73


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74


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75


Insert offset folio 001/164 here HR283.011
76

ADJUSTMENTS TO BUDGET ACTIVITIES

Adjustments to the budget activities are as follows:

[In thousands of dollars] 

Budget Activity 2: Pay and Allowances of Enlisted Personnel: 

12400 Special Pays/Selective Reenlistment Bonuses ................ ¥1,800

Other Adjustments: 

14320 ONW/OSW/ODS CONOPS ............................................... ¥300

14560 Unobligated Balances ....................................................... ¥8,000

14570 Increase in Death Gratuity .............................................. 1,000

14575 Increase in FSA/IDP ......................................................... 9,000

77


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78


Insert offset folio 001/167 here HR283.013
79


Insert offset folio 001/168 here HR283.014
80


Insert offset folio 001/169 here HR283.015
81

ADJUSTMENTS TO BUDGET ACTIVITIES

Adjustments to the budget activities are as follows:

[In thousands of dollars] 

Other Adjustments: 

19255 ONW/OSW/ODS CONOPS ............................................... ¥235,436

19620 Unobligated Balances ....................................................... ¥40,000

19625 B–52 attrition reserve ....................................................... 3,800

19630 Increase in Death Gratuity .............................................. 1,500

19635 Increase in FSA/IDP ......................................................... 20,000

NATIONAL GUARD AND RESERVE FORCES

The conferees agree to provide $15,105,951,000 in Reserve per- sonnel appropriations, $14,296,667,000 in Reserve operation and 

maintenance appropriations, and $400,000,000 in the National 

Guard and Reserve Equipment appropriation. These funds support 

a Selected Reserve end strength of 863,300 as shown below.

SELECTED RESERVE END STRENGTH 

[Fiscal year 2004] 

Budget Conference Conference vs. budget 

Selected Reserve: 

Army Reserve ...................................................................................................... 205,000 205,000 ....................

Navy Reserve ...................................................................................................... 85,900 85,900 ....................

Marine Corps Reserve ........................................................................................ 39,600 39,600 ....................

Air Force Reserve ................................................................................................ 75,800 75,800 ....................

Army National Guard .......................................................................................... 350,000 350,000 ....................

Air National Guard ............................................................................................. 107,000 107,000 ....................

Total ...................................................................................................... 863,300 863,300 ....................

AGR/TARS: 

Army Reserve ...................................................................................................... 14,374 14,374 ....................

Navy Reserve ...................................................................................................... 14,384 14,384 ....................

Marine Corps Reserve ........................................................................................ 2,261 2,261 ....................

Air Force Reserve ................................................................................................ 1,660 1,660 ....................

Army National Guard .......................................................................................... 25,386 25,595 +211

Air National Guard ............................................................................................. 12,140 12,193 +53

Total ...................................................................................................... 70,205 70,469 +264

Technicans: 

Army Reserve ...................................................................................................... 7,594 7,594 ....................

Air Force Reserve ................................................................................................ 10,081 10,081 ....................

Army National Guard .......................................................................................... 26,189 26,189 ....................

Air National Guard ............................................................................................. 23,156 23,156 ....................

Total ...................................................................................................... 67,020 67,020 ....................

82


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83

ADJUSTMENTS TO BUDGET ACTIVITIES

Adjustments to the budget activities are as follows:

[In thousands of dollars] 

Other Adjustments: 

23900 Unobligated Balances ......................................................... ¥5,000

23950 Reserves Cost Avoidance .................................................... ¥10,000

23955 Increase in Death Gratuity ................................................ 100

84


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85

ADJUSTMENTS TO BUDGET ACTIVITIES

Adjustments to the budget activities are as follows:

[In thousands of dollars] 

Other Adjustments: 

25060 ONW/OSW/ODS CONOPS ................................................. ¥826

25300 Unobligated Balances ......................................................... ¥5,000

25370 Reserves Cost Avoidance .................................................... ¥20,000

25380 Increase in Death Gratuity ................................................ 400

86


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87

ADJUSTMENTS TO BUDGET ACTIVITIES

Adjustments to the budget activities are as follows:

[In thousands of dollars] 

Other Adjustments: 

26600 Unobligated Balances ......................................................... ¥2,000

26650 Reserves Cost Avoidance .................................................... ¥14,000

88


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89

ADJUSTMENTS TO BUDGET ACTIVITIES

Adjustments to the budget activities are as follows:

[In thousands of dollars] 

Other Adjustments: 

27900 Unobligated Balances ....................................................... ¥4,000

27910 Reserves Cost Avoidance .................................................. ¥40,000

27920 Increase in Death Gratuity .............................................. 200

90


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91

ADJUSTMENTS TO BUDGET ACTIVITIES

Adjustments to the budget activities are as follows:

[In thousands of dollars] 

Budget Activity 2: Other Training and Support 

28800 Administration and Support/Full Time Manning for 

AGRs ............................................................................................ 37,800

28800 Administration and Support/Civil Support Teams 

AGRs ............................................................................................ 18,000

28800 Administration and Support/Ground-Based Midcourse 

Missile Defense AGRs ................................................................ 14,300

Other Adjustments: 

29350 Unobligated Balances ....................................................... ¥5,000

29410 Reserves Cost Avoidance .................................................. ¥50,000

29430 Mobilized AGRs ................................................................. ¥30,000

29435 Lewis and Clark Bicentennial Activities ........................ 750

29440 Increase in Death Gratuity .............................................. 200

92


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93

ADJUSTMENTS TO BUDGET ACTIVITIES 

Adjustments to the budget activities are as follows:

[In thousands of dollars] 

Budget Activity 2: Other Training and Support 

30150 Administration and Support/Civil Support Teams 

AGRs ............................................................................................ 4,000

Other Adjustments: 

30550 Unobligated Balances ....................................................... ¥2,500

30600 Reserves Cost Avoidance .................................................. ¥50,000

94


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95

TRAVEL OF MILITARY DEPENDENTS

The conferees are concerned that spouses and dependents of 

deployed military personnel often do not have the financial means 

to visit their family members. Such travel could help ease the difficult burden of managing a household. The conferees direct the 

Secretary of Defense to submit a proposal for a program that would 

provide travel assistance to spouses and dependents of deployed 

military personnel. This proposal is to be submitted to the congressional defense committees before presentation of the fiscal year 

2005 budget estimate.

96


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97


Insert offset folio 001/187 here HR283.024
98


Insert offset folio 001/188 here HR283.025
99

ADJUSTMENTS TO BUDGET ACTIVITIES

Adjustments to the budget activities are as follows:

[In thousands of dollars] 

Budget Activity 1: Operating Forces: 

250 Modular Lightweight Load-Carrying Equipment 

(MOLLE) ...................................................................................... 1,800

250 Hydration on the Move System Basic/Chemical/Biological 1,000

250 Expandable Light Air Mobility Shelters ............................. 5,100

250 Clear Water Rinse Facility ................................................... 2,000

250 Extended Cold Weather Clothing System (ECWCS) ......... 3,000

250 Fort Riley Readiness ............................................................. 1,800

450 SBCT Implementation .......................................................... 30,000

550 C4I O&M requirements transferred from OPA .................. 22,262

550 Enhance Urbanized Training at Fort Irwin and Support 

JNTC Initiatives ......................................................................... 3,000

750 Training and Support Facilities ........................................... 6,800

750 Army Worker Safety Program Expansion .......................... 5,100

750 Feasibility Study for Homeland Defense and National Security Applications at Watervliet Arsenal ................................ 450

750 Fort Knox University of Mounted Warfare Campus Area 

Network infrastructure .............................................................. 1,200

750 Repave Road to Ammo Facility at Fort Benning ............... 3,000

750 Realign BOS/FSRM resources to BA–1 ............................... 80,110

750 Realign BOS/FSRM resources to BA–1 ............................... 819,604

750 Realign BOS/FSRM resources to BA–1 ............................... 238,993

750 Realign BOS/FSRM resources to BA–1 ............................... 1,194,134

800 Army Chapel Renovation Matching Funds Program ......... 1,200

800 Realign BOS/FSRM resources to BA–1 ............................... 6,933

800 Realign BOS/FSRM resources to BA–1 ............................... 61,096

800 Realign BOS/FSRM resources to BA–1 ............................... 392,550

800 Realign BOS/FSRM resources to BA–1 ............................... 260,288

850 Deployable C4ISR ................................................................. 1,000

850 Network and IT Infrastructure Capabilities ...................... 7,900

850 PACMERS ............................................................................. 5,800

950 Joint POW/MIA Accounting Command (JPAC) (transferred to OMN) ............................................................................ ¥26,600

950 Northern Edge Realignment of funds (transferred to 

OMN) ........................................................................................... ¥2,000

Budget Activity 2: Mobilization: 

1200 Quadrangle Containers ...................................................... 2,800

1325 Realign BOS/FSRM resources to BA–1 ............................. ¥6,933

Budget Activity 3: Training and Recruiting: 

1650 Air Battle Captain Program ............................................... 1,500

1700 Realign BOS/FSRM resources to BA–1 ............................. ¥80,110

1700 Realign BOS/FSRM resources to BA–1 ............................. ¥61,096

1850 Gauntlet Training and Instrumentation Facility Upgrade, Fort Knox ......................................................................... 1,000

1850 U.S. Army Engineer School ................................................ 2,800

1850 Military Police MCTFT Joint Training ............................. 1,000

1850 Satellite Communications for Learning (SCOLA) Language Training ............................................................................ 2,000

1900 Army Aviation Transformation Training Initiatives 

(Flight School XXI) ..................................................................... 2,500

1950 Civil Rights Education and History .................................. 2,000

2000 Defense Language Institute (DLI) LangNet Project ........ 1,000

2000 Military Distance Learning Demonstration ...................... 1,000

2000 Fort Knox University of Mounted Warfare Classroom 

Automation Resources ................................................................ 1,000

2000 Online Technology Training Pilot Program in USARAK 2,500

2050 Realign BOS/FSRM resources to BA–1 ............................. ¥819,604

2050 Realign BOS/FSRM resources to BA–1 ............................. ¥392,550

2300 Shakespeare in American Military Communities ............ 1,000

2350 Online Technology Training Pilot Program at Fort 

Lewis ............................................................................................ 1,400

2450 Realign BOS/FSRM resources to BA–1 ............................. ¥238,993

100

Budget Activity 4: Administration and Service wide Activities: 

2650 Classified ............................................................................. 15,375

2800 Army Military Vehicle Batteries ....................................... 1,400

2800 Pulse Technology—Army Battery Management Program 3,500

2800 TACOM electronic Maintenance System .......................... 1,000

2850 Integrated Digital Environments (IDE) Information Portal ................................................................................................. 1,000

2850 Corrosion Prevention and Control Program ..................... 4,800

2850 Field Pack-Up (FPU) System ............................................. 1,800

2850 Skidsteer Loaders ............................................................... 6,000

2850 Regional Agile Port Intermodal Distribution (RAPID) .... 1,000

3050 C4I O&M Requirements (transferred from OPA) ............ 671

3050 Army Knowledge Online .................................................... 3,500

3050 Army Knowledge Online Labs in Korea ........................... 500

3150 Servicemembers Benefit Analysis Online (SMBAOnline) 3,500

3200 Army Conservation and Ecosystem Management ............ 3,000

3200 Centralized Range Residue Recycling Facility (CRRRF) 1,500

3200 Fort Wainwright CHPP Renovation .................................. 18,700

3200 Fort Wainwright Utilidor Repair ....................................... 9,000

3200 Rock Island Arsenal Bridge Repairs ................................. 2,450

3200 Tanana Flats Training Area Cleanup Program ............... 500

3350 Realign BOS/FSRM resources to BA–1 ............................. ¥1,194,134

3400 Realign BOS/FSRM resources to BA–1 ............................. ¥260,288

Undistributed: 

3710 Classified Programs ............................................................ 177,000

3720 Memorial Events ................................................................. 400

3970 Un-obligated Balance ...................................................... ¥51,500 

4090 Southwest Asia CONOPS Costs ........................................ ¥200,304

4100 Administration and Service wide Activities ..................... ¥33,000

4110 Civilian Pay Overstatement ............................................... ¥21,900

4120 WMD Civil Support Teams ................................................ 23,300

REALIGNMENT OF BASE OPERATIONS SUPPORT (BOS) AND FACILITIES

SUSTAINMENT, RESTORATION AND MODERNIZATION (FSRM) RESOURCES

The conferees concur with Senate Report 108–87 regarding the 

realignment of BOS and FSRM resources, which will allow for 

more careful management of installation resources and better oversight. However, rather than create a new budget activity, the conferees have consolidated Army BOS and FSRM resources in budget 

activity one, as detailed in the table above.

SERVICEMEMBERS BENEFIT ANALYSIS ONLINE (SMBA ONLINE) 

The conferees have provided an additional $3,500,000 in Operation and Maintenance, Army for a pilot program to implement and 

evaluate this unique benefit analysis system. The conferees direct 

the Assistant Secretary of Defense (Force Management Policy) to 

report on the implementation and benefits of this pilot program, 

and submit this report to the congressional defense committees before presentation of the fiscal year 2005 budget. 

STRYKER BRIGADE COMBAT TEAM (SBCT) IMPLEMENTATION

The conferees have included an additional $30,000,000 only to 

provide equipment and fielding of SBCTs, with appropriate consideration given to entities that are located in the same geographical 

region as the fielded SBCT, to include analytical and logistics support. 

101

RECRUITING AND ADVERTISING

The conferees direct that no less than $6,000,000 of the funds 

provided for Operation and Maintenance, Army be used to maintain existing production efforts directed toward certain audiences, 

including Hispanic recruits. 

ARMY WORKER SAFETY PROGRAM EXPANSION

The conferees are pleased with the progress of the Army’s safety initiative underway at Fort Bragg and at the Watervliet Arsenal, and encourage the Secretary of the Army to expand the initiative to other Army installations. The conference agreement provides an additional $5,100,000 in Operation and Maintenance, 

Army to enhance and expand the current safety initiative for U.S. 

Army civilian and military personnel. 

INTEGRATED DIGITAL ENVIRONMENTS INFORMATION PORTAL

The conference agreement provides an additional $500,000 in 

Operation and Maintenance, Army only for the Program Executive 

Officer (PEO) Ground Combat Systems at TACOM to expand the 

use of the eBusiness Portal IDE’s among all their weapon program 

managers and the Army’s Research and Development command 

structure. The conference agreement also provides an additional 

$500,000 in Operation and Maintenance, Army only for AMCOM’s 

Prototype Integration Facility to expand an IDE environment in 

order to streamline rapid prototyping and the airworthiness qualification and release process. The Secretary of the Army shall provide a report to the congressional defense committees no later than 

March 31, 2004, evaluating the effectiveness of IDEs as weapon 

program management tools and the advantages they may provide 

to weapon program stakeholders throughout the life cycle. 

ENHANCE URBANIZED TRAINING AT FORT IRWIN AND SUPPORT FOR

JNTC INITIATIVES

The conference agreement provides an additional $3,000,000 in 

Operation and Maintenance, Army only to improve training at the 

National Training Center, as follows: $750,000 for NTC MOUT 

training; $750,000 for NTC training; and $1,500,000 for NTC antiterrorism training. 

TACONY WAREHOUSE

The conferees agree that of the funds made available in Operation and Maintenance, Army, $10,000,000 be used only to demolish the Army’s Tacony Warehouse. The conferees further instruct 

the Secretary of the Army to ensure that the reuse of the Tacony 

Warehouse site its consistent with proposals outlined in the City 

of Philadelphia’s North Delaware Riverfront Redevelopment Plan.

102


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103


Insert offset folio 001/197 here HR283.027
104


Insert offset folio 001/198 here HR283.028
105


Insert offset folio 001/199 here HR283.029
106

ADJUSTMENTS TO BUDGET ACTIVITIES

Adjustments to the budget activities are as follows:

[In thousands of dollars] 

Budget Activity 1: Operating Forces: 

4400 CAST 70 Tester ................................................................... 1,000

4650 Navy Depot Production Processes Cycle Time Improvement ............................................................................................. 1,000

4650 Simulation Modeling Analytical Support System 

(SMASS) ....................................................................................... 1,200

4650 Computer Automatic Tester and Radar Communication 

Automatic Test Equipment (CAT&RAD COM) ........................ 5,100

4650 Vertical Lift ......................................................................... 1,000

4850 Photonic Sensor Marine Gas Turbine Engine Condition 

Based Maintenance ..................................................................... 3,500

5000 Cruiser Modernization (transferred from SCN) ............... 8,200

5050 Apprentice, Engineering Technician and CO–OP Program IMF Bangor ....................................................................... 1,100

5050 Apprentice, Engineering Technician and CO–OP Program NUWC Keyport ................................................................. 1,400

5050 Naval Shipyard Apprenticeship Program ......................... 1,700

5050 PHNSY Support .................................................................. 10,000

5250 Collaborative Information Warfare Network SPAWAR 

Charleston ................................................................................... 2,500

5250 Manufacturing Technical Assistance and Production 

Program (MTAPP) ...................................................................... 2,100

5400 Warfare Tactics unjustified growth ................................... ¥3,000

5400 Northern Edge Realignment of funds (transferred from 

OMA, OMAF) .............................................................................. 2,800

5500 Combat Support Forces unjustified growth ...................... ¥21,700

5500 Hydration on the Move System Basic/Chemical/Biological ................................................................................................. 1,000

5500 Center of Excellence for Disaster Management and Humanitarian Assistance ................................................................ 4,300

5550 Manual Reverse Osmosis Desalinator (MROD) Testing, 

Repair and Replacement ............................................................ 1,400

5950 Mark-45 5′′ Gun Depot Overhauls .................................... 12,000

6210 Pier 3 Restoration at Puget Sound Naval Shipyard ........ 6,000

6210 Realign BOS/FSRM resources to BA–1 ............................. 201,993

6210 Realign BOS/FSRM resources to BA–1 ............................. 98,108

6210 Toledo Shipyard Improvement Plan .................................. 1,000

6220 Critical Asset Vulnerability Assessment, Navy Region 

NW ............................................................................................... 1,400

6220 Northwest Environmental Resource Center ..................... 4,900

6220 Realign BOS/FSRM resources to BA–1 ............................. 373,377

6220 Realign BOS/FSRM resources to BA–1 ............................. 253,344

6220 Integrated Safety Management System Expansion ......... 2,800

6220 Combating Terrorism Database System (CTDS) .............. 1,000

Budget Activity 2: Mobilization: 

6350 Ship Prepositioning and Surge unjustified growth .......... ¥10,000

6350 Deployment/Mobilization Hub Study, New Orleans 

NAS/JRB ...................................................................................... 300

6500 Ship Disposal Program ....................................................... 7,000

Budget Activity 3: Training and Recruiting: 

7200 Specialized Skill Training unjustified growth .................. ¥10,000

7200 Blended Learning Initiative/Specialized Skill Training .. 2,800

7200 Pier-Side Tactical and Simulation Training ..................... 1,000

7350 Training Support unjustified growth ................................ ¥15,000

7350 Prototype System for Embedded Training and Performance Support—CNET ................................................................. 300

7350 Naval Post Graduate Institute for Service to America .... 4,300

7350 Center for Defense Technology and Education for the 

Military Services ......................................................................... 4,000

7550 Vital Learning Recruitment/Retention Screening Test 

Program ....................................................................................... 1,000

7600 Continuing Education Distance Learning ......................... 1,000

7700 Naval Sea Cadet Corps ....................................................... 1,500

107

7820 Realign BOS/FSRM resources to BA–1 ............................. ¥201,993

7830 Realign BOS/FSRM resources to BA–1 ............................. ¥373,377

Budget Activity 4: Administration and Servicewide Activities: 

8200 Joint POW/MIA Accounting Command (JPAC) (transferred from OMA) ....................................................................... 26,600

8250 Mobile UHF DAMA Training Program ............................. 1,000

8250 Configuration Management Information System (CMIS) 6,500

8250 Navy Critical Infrastructure Protection ............................ 2,200

8250 SPAWAR Information Technology Center ........................ 2,400

8550 Planning, Engineering and Design unjustified growth .... ¥11,000

8700 Advanced Technical Information Support (ATIS) ............ 1,000

8700 Flame Contaminant Detection System (FCDS) ................ 1,500

9000 Classified ............................................................................. 10,460

9220 Realign BOS/FSRM resources to BA–1 ............................. ¥98,108

9230 Realign BOS/FSRM resources to BA–1 ............................. ¥253,344

Undistributed: 

9440 Un-obligated Balance .......................................................... ¥99,000

9540 Southwest Asia CONOPS Costs ........................................ ¥75,592

9550 Administration and Servicewide Activities ....................... ¥52,000

9560 PACOM Theater Joint C4 Capability ............................... 3,000

REALIGNMENT OF BASE OPERATIONS SUPPORT (BOS) AND FACILITIES

SUSTAINMENT, RESTORATION AND MODERNIZATION (FSRM) RESOURCES

The conferees concur with Senate Report 108–87 regarding the 

realignment of BOS and FSRM resources, which will allow for 

more careful management of installation resources and better oversight. However, rather than create a new budget activity, the conferees have consolidated Navy BOS and FSRM resources in budget 

activity one, as detailed in the table above. 

NAVAL SHIPYARD APPRENTICE PROGRAM

The conferees have included an additional $1,700,000 in Operation and Maintenance, Navy for the Naval Shipyard Apprentice 

Program, bringing total funding for that program to $30,580,000. 

The conferees direct the Navy to induct classes of no fewer than 

125 apprentices, at each of the naval shipyards during fiscal year 

2004. The conferees further direct the Navy to include the costs of 

the fiscal year 2005 class of apprentices in the FY 2005 budget request. 

BLENDED LEARNING INITIATIVE/SPECIALIZED SKILL TRAINING

The conferees agree to provide an additional $2,800,000 only 

for the Blended Learning Initiative to build multi-purpose electronic classrooms capable of delivering Integrated Learning Environment content for the United States Navy. Classrooms will incorporate traditional platform instruction, synchronous and asynchronous video, teletraining/video, teleconferencing, and web-based 

training. 

NORTHERN EDGE REALIGNMENT OF FUNDS

The conferees concur with Senate Report 108–87 regarding the 

funds for Exercise Northern Edge, and recommend a realignment 

of funds into Operation and Maintenance, Navy. After this realignment, a total of $4,700,000 is available in Operation and Maintenance, Navy to support Exercise Northern Edge. For fiscal year 

108

2005 and subsequent years, the conferees direct the Secretary of 

Defense to provide funds in a similar fashion. 

CONFIGURATION MANAGEMENT INFORMATION SYSTEM

The conferees provided an additional $6,500,000 in Operation 

and Maintenance, Navy only for the Configuration Management Information System (CMIS). The funding should be used to further 

develop a knowledge management approach to maintenance planning processes using Configuration Management Information System data. 

ALAMEDA POINT NAVAL STATION

The conferees are aware that the former Alameda Point Naval 

Station is currently being considered as a candidate for early transfer, based on the pending agreement between the Navy and the 

City of Alameda for reuse, development, and property preservation. 

The conferees are further aware that the Administrator of the EPA 

must approve the deferral of the CERCLA covenant. The conferees 

believe that early transfer of the land and associated facilities to 

the City of Alameda could serve as a model for military base conversion in an urban environment. Accordingly, the conferees expect 

the Secretary of the Navy and the Administrator of the Environmental Protection Agency to work cooperatively to achieve this 

early transfer in the most expeditious manner possible. 

REPAIR OF MILITARY SEALIFT COMMAND SHIPS

The conferees are concerned that a disproportionate number of 

Military Sealift Command (MSC) ships are being repaired in foreign shipyards. The Secretary of the Navy is directed to provide a 

report to the congressional defense committees which describes the 

Navy’s policy for repairing MSC ships in foreign shipyards, analyzes trends in funding for and level of repair work done on MSC 

ships in foreign and domestic yards, and reviews the consequences 

of reallocating MSC ship repair work to domestic shipyards. The 

report should be submitted no later than April 15, 2004.

109


Insert offset folio 001/206 here HR283.030
110


Insert offset folio 001/207 here HR283.031
111

ADJUSTMENTS OF BUDGET ACTIVITIES

Adjustments to the budget activities are as follows:

[In thousands of dollars] 

Budget Activity 1: Operating Forces: 

10050 Modular General Purpose Tent System (MGPTS) ......... 1,800

10050 Hydration on the Move System Basic/Chemical/Biological ................................................................................................. 1,000

10050 Marine Corps U.S. Made Bayonets ................................. 3,000

10050 All Purpose Environmental Clothing System (APECS) 3,000

10050 Chem Bio Incident Response Force (CBIRF) .................. 1,400

10050 Mountain/Cold Weather Clothing and Equipment Program (MCWCEP) ........................................................................ 1,400

10100 Corrosion Prevention and Control Program ................... 2,500

10100 Lightweight Maintenance Enclosure ............................... 1,000

10100 USMC Albany, MATCOM Life Cycle Management ....... 1,000

10100 Depot Maintenance of Radar Systems ............................ 4,300

10200 Training and Support Facilities ....................................... 9,400

10250 Adobe Road Twentynine Palms ....................................... 3,800

Budget Activity 3: Training and Recruiting: 

11000 Training Support unjusified growth ................................ ¥3,000

11300 Marine Corps Junior ROTC Operating Costs ................. 500

Budget Activity 4: Administration and Servicewide Activities: 

11800 USMC COOP ....................................................................... 6,800

Undistributed: 

12010 Un-obligated Balance ........................................................ ¥5,700

12020 Anti-Corrison Programs ................................................... 2,000

12040 Southwest Asia CONOPS Costs ...................................... ¥533

MARINE CORPS LOGISTICS SYSTEM UPGRADES

The conferees direct that of the funds made available in Operation and Maintenance, Marine Corps, $3,000,000 be used only for 

upgrades to Marine Corps Logistics Systems. 

MARINE CORPS TACTICAL SYSTEMS SUPPORT ACTIVITY (MCTSSA) 

COMBAT SERVICE SUPPORT ELEMENT

The conferees direct that of the funds made available in Operation and Maintenance, Marine Corps, $3,000,000 be used only for 

the continuing efforts of the Marine Corps Tactical System Support 

Activity (MCTSSA) to build out the combat service support element 

of the System Integration Environment. 

HMMWV TIRES

The conferees direct that of the funds made available in Operation and Maintenance, Marine Corps, $3,000,000 be used only for 

the purchase of HMMWV tires.

112


Insert offset folio 001/210 here HR283.032
113


Insert offset folio 001/211 here HR283.033
114


Insert offset folio 001/212 here HR283.034
115


Insert offset folio 001/213 here HR283.035
116

ADJUSTMENTS TO BUDGET ACTIVITIES

Adjustments to the budget activities are as follows:

[In thousands of dollars] 

Budget Activity 1: Operating Forces: 

12600 Extended Cold Weather Clothing System (transferred 

to OM,ANG) ................................................................................. 0

12600 Hydration on the Move System Basic/Chemical/Biological ................................................................................................. 1,000

12600 F–16 Distributed Mission Training: Night Vision Goggle Enhancement ........................................................................ 4,300

12600 B–52 Attrition Reserve ..................................................... 25,100

12750 Air Operations Training efficiencies in contract support ............................................................................................... ¥10,000

12750 F–16 Simulator Motion Upgrade Program ..................... 1,000

12900 Aircraft Defect Detection and Performance Management Application ......................................................................... 250

12800 11th Air Force Server Consolidation ............................... 1,000

12900 Super Typhoon Pongsona Recovery ................................. 2,000

12900 Replace Fire Alarm System Base-wide, Columbus AFB 

(transferred to OPAF) ................................................................. 0

13000 Eagle Vision Program ....................................................... 1,000

13050 University Partnership for Operational Support 

(UPOS) ......................................................................................... 2,500

13150 Northern Edge realignment of funds (transferred to 

OMN) ........................................................................................... ¥800

13200 Management Support for Air Force Battle Labs ............ 4,300

13200 Langley AFB Visitor Center ............................................ 1,400

13550 Other Space Operations—limit growth in management 

headquarters ............................................................................... ¥10,000

Budget Activity 3: Training and Recruiting: 

14500 Repair Airfield Pavement, Auxiliary Field, Columbus 

AFB .............................................................................................. 3,400

14500 Sanitary Sewer System Repair, Phase 3 Columbus 

AFB .............................................................................................. 1,000

14700 Professional Development Education unjustified 

growth .......................................................................................... ¥3,000

14700 Western Governors University ........................................ 1,000

14750 Simulations Training for Integrating DoD WMD and 

Civilian Response Systems ......................................................... 2,800

15100 Civilian Education and Training unjustified growth ..... ¥4,000

Budget Activity 4: Administration and Servicewide Activities: 

15350 Logistics-Systems Management and Retrieval Technology (L–SMART) Information System ................................... 2,500 

15400 Air Force Operational Test and Evaluation Center 

(AFOTEC) IT Infrastructure and Training ............................... 1,000

15400 Wear Debris Data Repository .......................................... 4,250

15450 Hickman AFB Alternative Fuel Vehicle Program .......... 2,600

15650 Eielson AFB Utilidor Repairs .......................................... 9,000

15650 Nikolski Power House Clean-up ...................................... 1,700

15750 Elmendorf AFB Community Center Enhancements ...... 500

15800 Joint Combined Aircrew Tester ....................................... 1,000

15800 MBU–20/P Oxygen Mask ................................................. 2,100

16100 William Lehman Aviation Center .................................... 750

16250 Security Programs ............................................................ ¥4,000

Undistributed: 

16600 Threat Representation and Validation (TR&V) ............. 1,100

16620 Information Assurance Initiative for Air Force Materiel 

Command ..................................................................................... 1,100

16630 Un-obligated Balances ...................................................... ¥17,600

16700 Southwest Asia CONOPS Costs ...................................... ¥707,550

16710 Administration and Servicewide Activities ..................... ¥30,000

16720 Base Operations Support ................................................. ¥150,000

16730 Civilian Pay Overstatement ............................................. ¥37,600

16740 Demonstration Projects for Contractors Employing 

Persons with Disabilities ............................................................ 1,400

16750 Joint Personnel Recovery Agency .................................... 2,800

117

16760 Feasibility Study of Biennial International Air-Trade 

Show ............................................................................................. 1,000

16770 People Movers ................................................................... 500

FEASIBILITY STUDY OF BIENNIAL INTERNATIONAL AIR-TRADE SHOW

The conference agreement provides an additional $1,000,000 in 

Operation and Maintenance, Air Force only to provide assistance to 

a community, to be selected by the Secretary of Defense, for expenses of a study by that community of the feasibility of the establishment and operation of a biennial international air-trade show 

in the area of the community, and to support initial implementation of the international air-trade show. The conferees expect that 

a competitive process will be used to select the community, and 

that preference will be given to communities that already sponsor 

an air show, have demonstrated a history of supporting air shows 

with local resources, and have a significant role in the aerospace 

community. 

F–16 SIMULATOR MOTION UPGRADE PROGRAM

The conferees have provided an additional $1,000,000 in Operation and Maintenance, Air Force, to be used only for phase 1 integration and testing of a pneumatic tactical motion control system 

for the ACES II ejection seat in the F–16 Mission Training Center. 

PEOPLE MOVERS

The conferees have provided an additional $500,000 in Operation and Maintenance, Air Force, to be used only to purchase 50 

self-balancing, non-tandem, wheeled individual transportation devices to evaluate military utility of such devices at Tinker Air Force 

Base for a variety of military functions. 

CONTAMINANT AIR PROCESSING SYSTEMS

The conferees commend the Air Force for standardizing mission critical equipment that allows Air Force personnel to be effectively processed after contact with biological, chemical or nuclear 

agents. The conferees encourage the Secretary of the Air Force to 

purchase contaminant air processing systems and related components to ensure all Air Force installations are standardized in this 

methodology and equipment.

118


Insert offset folio 001/218 here HR283.036
119


Insert offset folio 001/219 here HR283.037
120

ADJUSTMENTS TO BUDGET ACTIVITIES

The adjustments to the budget activities for Operation and 

Maintenance, Defense-Wide are shown below:

[In thousands of dollars] 

Budget Activity 1: Operating Forces: 

17050 TJS—Combating Terrorism Readiness Initiative Fund ¥5,000

17100 SOCOM—Hydration on the Move System

Basic/Chemical/Biological ........................................................... 1,000

17100 SOCOM—Knowledge Superiority for Transitional 

Warfighter Project (continuation only) ...................................... 1,700

17100 SOCOM—COCOM’s TSOCs and CENTCOM CRE ........ 15,406

17100 SOCOM—ONW/OSW/ODS Conops ................................. ¥15,406

17100 SOCOM—SOCOM Flying Hour Program ....................... 23,466

Budget Activity 3: Training and Recruiting: 

17460 DAU—Distance Learning and Performance ................... 2,600

17480 DHRA—Joint Advertising Market Research and Studies Program ................................................................................. 7,500

Budget Activity 4: Administration and Servicewide Activities: 

17750 CMP—Challenge/Starbase ............................................... 5,000

17750 CMP—Innovative Readiness Training Program ............ 5,000

17775 Classified Programs .......................................................... ¥101,832

17800 DISA—ONW/OSW/ODS Conops ...................................... ¥57,105

17800 DISA—Excessive Growth ................................................. ¥35,000

17925 DLA—Defense Policy Analysis Office ............................. ¥15,700

17925 DLA—Theater Support Center Feasibility Study .......... 1,000

17975 DODEA—Jason Foundation ............................................ 800

17975 DODEA—I-Safe ................................................................. 1,000

17975 DODEA—Lewis Center for Educational Research ......... 3,000

17975 DODEA—Family Advocacy Program .............................. 22,000

17975 DODEA—Technology Training in Military Schools 

(only to provide DODEA teachers and administrators professional development training in classroom technology) ............ 500

17975 DODEA—Professional Development Project for DoDEA 

(only for improving instruction for students with Dyslexia) ... 1,200

17975 DODEA—DoDEA Mathematics and Technology Teachers Development .......................................................................... 1,000

17975 DODEA—Galena IDEA Distance Learning Program .... 5,000

18025 DSCA—Counterterrorism Training and Equipment ..... ¥200,000

18050 DSS—Program Justification ............................................ ¥12,500

18075 DTRA—ONW/OSW/ODS Conops ..................................... ¥1,056

18100 OEA—George AFB ............................................................ 3,400

18100 OEA—Norton AFB ............................................................ 3,400

18100 OEA—Bayonne Military Ocean Terminal ...................... 4,200

18100 OEA—Cecil Field .............................................................. 1,200

18100 OEA—Charles Melvin Price Support Center ................. 1,000

18100 OEA—CCAT ...................................................................... 4,500

18100 OEA—March Joint Powers Authority—Arnold Heights 

Reuse Project ............................................................................... 1,000

18100 OEA—Hunters Point Naval Shipyard ............................. 2,200

18100 OEA—Asbestos Removal at Eaker AFB ......................... 250

18100 OEA—UCHSC—DCH Fitzsimons Medical Center ........ 6,000

18100 OEA—Hangar Renovation at Griffis AFB ...................... 500

18100 OEA—McClellan AFB Remediation ................................ 4,900

18100 OEA—Port of Anchorage Intermodal Marine Facility 

Project .......................................................................................... 5,000

18100 OEA—Environmental Study of the former NIKE Missile Site ........................................................................................ 250

18100 OEA—David’s Island Fort Slocum Remediation ............ 1,500

18100 OEA—Fibers Cleanup at Front Royal ............................. 6,000

18100 OEA—Knollwood Special Care Unit ............................... 1,500

18125 OSD—Public Affairs ......................................................... ¥10,000

18125 OSD—Information Support to SO/LIC ............................ ¥13,000

18125 OSD—Net Assessment ..................................................... ¥5,000

18125 OSD—Office of Force Transformation ............................. ¥1,200

18125 OSD—OSD Contract and Support ................................... ¥10,000

121

18125 OSD—PA&E Long Range Planning ................................ ¥2,579

18125 OSD—Base Information System ...................................... ¥10,000

18125 OSD—C4I Program Growth ............................................. ¥30,000

18125 OSD—AT&L Program Growth ........................................ ¥30,000

18125 OSD—Middle East Regional Security Program ............. 1,400

18125 OSD—Study on Internet and Wireless Technology ....... 1,000

18125 OSD—Arctic Military Environmental Cooperation Program ............................................................................................. 2,500

18125 OSD—Command Information Superiority Architectures ............................................................................................. 1,000

18125 OSD—Export Control Information to Foreign Countries .............................................................................................. 1,400

18125 OSD—Young Patriots Program (National Flag Foundation to expand the Young Patriots Program to include a 

video which promotes the significance of National Patriotic 

Holidays) ...................................................................................... 1,000

18125 OSD—Asia—Pacific Regional Initiative .......................... 14,000

18125 OSD—Employer Support of the Guard and Reserve 

(ESGR) ......................................................................................... 2,000

18125 OSD—Information Assurance Scholarship Program ..... 2,100

18125 OSD—Dedicated Fiber Optic Network ............................ 1,500

18125 OSD—OSD/CSIS Beyond Goldwater-Nichols Study ...... 1,000

18200 TJS—NDU XXI ................................................................. 2,500

18200 TJS—NDU Technology Pilot Program ............................ 1,000

Undistributed: 

19010 Impact Aid ......................................................................... 30,000

19015 Impact Aid for Children with Disabilities ...................... 5,000

FAMILY ADVOCACY PROGRAM

The conferees agree to provide an additional $22,000,000 for 

the Department’s Family Advocacy Program (FAP). These funds 

are to be used for the activities described under this heading in 

House Report 108–187. Of the additional amount provided for FAP, 

the conferees direct that $900,000 be available to initiate the National Domestic Violence Hotline Awareness, Intervention, and Prevention Campaign in the military services. 

BEYOND GOLDWATER-NICHOLS STUDY

The conferees agree to provide $1,000,000 to the Office of the 

Secretary of Defense to support the comprehensive review of the 

management organization and procedures of the Department of Defense, to include the interagency process for pre- and post-conflict 

coordination, otherwise known as the ‘‘Beyond Goldwater-Nichols’’ 

study. 

WOMEN IN MILITARY SERVICE IN AMERICA

The conferees urge that $500,000 of the funds under the heading ‘‘Operation and Maintenance, Defense-Wide’’, be made available 

for the Women in Military Service for America Memorial Foundation. 

OFFICE OF ECONOMIC ADJUSTMENT

The conferees have transferred Environmental Study of 

Former NIKE Missile Site, David’s Island Fort Slocum Remediation and Fibers Clean-up Front Royal to the OEA account within 

Operation and Maintenance, Defense-Wide.

122


Inert offset folio 001/224 here HR283.038
123


Inert offset folio 001/225 here HR283.039
124

ADJUSTMENTS TO BUDGET ACTIVITIES

Adjustments to the budget activities are as follows:

[In thousands of dollars] 

Budget Activity 1: Operating Forces: 

19530 Extended Cold Weather Clothing System ....................... 4,200

19570 All Terrain Military Utility Vehicles ............................... 4,000

19570 Equipment Storage Site Initial Operation ...................... 1,000

19680 Base Support/Unfunded Requirements ........................... 40,000

Other Adjustments: 

20190 Military Technicians Cost Avoidance .............................. ¥7,000

20200 Controlled Humidity Protection ....................................... 3,400

20210 Software Engineering Institute ....................................... 1,000

CONTROLLED HUMIDITY PROTECTION

The conferees recommend $3,400,000 above the budget request 

for implementation of the Controlled Humidity Protection program 

for critical equipment storage. Of the funds provided, $1,700,000 is 

only for the U.S. Army Reserve 9th Regional Support Command.

125


Insert offset folio 001/227 here HR283.040
126


Insert offset folio 001/228 here HR283.041
127

ADJUSTMENTS TO BUDGET ACTIVITIES

Adjustment to the budget activities is as follows:

[In thousands of dollars] 

Budget Activity 1: Operating Forces: 

21800 Littoral Surveillance System SCIF .................................. 1,000

128


Insert offset folio 001/230 here HR283.042
129


Insert offset folio 001/231 here HR283.043
130

ADJUSTMENTS TO BUDGET ACTIVITIES

Adjustments to the budget activities are as follows:

[In thousands of dollars] 

Other Adjustments: 

25660 Military Technicians Cost Avoidance .............................. ¥12,000

25665 932nd Airlift Wing Operations and Training ................. 12,200

AERIAL SPRAY SYSTEM

The conferees recommend $1,000,000 from funds available for 

Operation and Maintenance, Air Force Reserve only for Aerial 

Spray System enhancements for the Youngstown, Ohio Air Station. 

932ND AIRLIFT WING

The conferees recommend $12,200,000 above the budget request for operations at the 932nd Airlift Wing, Scott Air Force 

Base, during fiscal year 2004. Of this amount, $10,200,000 is to 

continue operations of C–9 aeromedical evacuation aircraft and 

$2,000,000 is for aircrew training in support of a successor mission/

airframe (such as the C–40). The conferees also recommend a general provision, section 8142, which directs the Secretary of the Air 

Force to study the current mission of this airlift wing, and evaluate 

the possibility of a mixed mission of transporting patients, passengers and cargo.

131


Insert offset folio 001/233 here HR283.044
132


Insert offset folio 001/234 here HR283.045
133

ADJUSTMENTS TO BUDGET ACTIVITIES

Adjustments to the budget activities are as follows:

[In thousands of dollars] 

Budget Activity 1: Operating Forces: 

26180 Extended Cold Weather Clothing System ....................... 3,000

26260 Military Vehicle Tires ....................................................... 1,000

26320 Cannon Bore Cleaning ...................................................... 1,000

26320 Communicator-Automated Emergency Notification System ............................................................................................... 1,100

26320 Ethan Allen Range Improvements .................................. 500

26420 Base Operations Support/Unfunded Requirements ....... 30,000

26480 Sustain Fiscal Year 2003 Increase in Military Technicians ............................................................................................. 25,000

Budget Activity 4: Administration and Servicewide Activities: 

26680 Information Operations Training and Operations ......... 2,800

26680 Advanced Information Technology Services (AITS) ....... 12,800

26680 Multimedia Security Technology ..................................... 3,000

Other Adjustments: 

26820 Angel Gate Academy ........................................................ 3,400

26830 National Emergency and Disaster Information Center 2,500

26890 Joint Training and Experimentation Program ............... 4,200

26490 Rural Access to Broadband Technology .......................... 3,400

26970 National Guard Global Education Project ...................... 500

27010 Information Assurance ..................................................... 1,700

27057 Southeast Regional Terrorism Training ......................... 3,400

27090 National Response Center WMD Facility ....................... 1,500

27100 Advance Emergency Medical Response Training Program ............................................................................................. 1,500

27110 Homeland Operational Planning System ........................ 2,000

27130 Information Technology Leadership Program ................ 1,700

27140 Advanced Information Technology Services C4ISR ....... 1,400

27150 Expandable Light Air Mobility Shelters (ELAMS) ........ 1,300

27160 Gas Chromatograph-Mass Spectrometers ....................... 300

27170 Domestic Emergency and Terrorist Response Information ............................................................................................... 1,700

27180 Northeast Counter-Drug Training Center ...................... 5,100

27190 Integrated Emergency Operations Center ...................... 3,400

27200 Weapons of Mass Destruction Education and Training 1,700

27310 Military Technician Cost Avoidance ................................ ¥13,000

27320 Construction Transition Program .................................... 1,400

27330 Lewis and Clark Bicentennial Activities ........................ 250

27335 WMD Civil Support Teams .............................................. 16,000

27340 Salute Our Services .......................................................... 2,000

27341 National Guard Tracking System .................................... 1,700

NORTHEAST COUNTER DRUG TRAINING CENTER

The conferees recommend $5,100,000 above the budget request 

for the Northeast Counter Drug Training Center only to continue 

in-service evaluation of the CL–415 multi-mission aircraft. 

CIVIL SUPPORT TEAMS

The conferees agree to provide funding for 12 additional National Guard Weapons of Mass Destruction Civil Support Teams 

(WMD–CST). The conferees believe that, as the National Guard begins establishing these new civil support teams, priority should be 

given to states facing significant port security and other coastal security challenges. 

134

NATIONAL RESPONSE CENTER

The conferees applaud the success of the National Response 

Center WMD Consequence Management and Counter-Terrorism facility, which provides a unique training and equipment testing 

venue for local, state and federal agencies responsible for responding to WMD emergencies.

135


Insert offset folio 001/237 here HR283.046
136

ADJUSTMENTS TO BUDGET ACTIVITIES

Adjustments to the budget activities are as follows:

[In thousands of dollars] 

Budget Activity 1: Operating Forces: 

27650 Defense Systems Evaluation Joint Test Support Program ............................................................................................. 1,000

27700 Surveying Systems ............................................................ 1,000

27700 All Terrain Military Utility Vehicles ............................... 1,400

27700 Extended Cold Weather Clothing System ....................... 1,400

27750 Base Support/Unfunded Requirements ........................... 30,000

27800 Facilities Sustainment, Restoration and Modernization/Rickenbacker Air National Guard Base ............................ 1,400

Budget Activity 4: Administration and Servicewide Activities: 

28050 Information Assurance Activities .................................... 2,100

28050 IT Consolidation/Storage Area Network ......................... 2,100

Other Adjustments: 

28160 National Guard State Partnership Program .................. 2,100

28170 Project Alert ...................................................................... 1,970

28290 Military Technicians Cost Avoidance .............................. ¥18,000

28310 IT Consolidation ................................................................ 2,100

JEFFERSON PROVING GROUND

The conferees direct the Departments of the Army and the Air 

Force to finalize the real property instruments that would provide 

the Indiana Air National Guard the immediate use of the 50-acre 

laser bombing range located at Jefferson Proving Ground in southeastern Indiana. 

OVERSEAS CONTINGENCY OPERATIONS TRANSFER ACCOUNT

The conference agreement provides $5,000,000 for the Overseas Contingency Operations Transfer Account. 

UNITED STATES COURT OF APPEALS FOR THE ARMED FORCES

The conference agreement provides $10,333,000 for the United 

States Court of Appeals for the Armed Forces. 

ENVIRONMENTAL RESTORATION, ARMY

The conference agreement provides $396,018,000 for Environmental Restoration, Army. 

ENVIRONMENTAL RESTORATION, NAVY

The conference agreement provides $256,153,000 for Environmental Restoration, Navy. 

WALKER RIVER PAIUTE TRIBAL LANDS

Not later than September 30, 2004, the Secretary of the Navy 

shall report to the congressional defense committees on the impact 

of naval aircraft live ordnance training on the lands of Walker 

River Paiute Tribe in Nevada since the establishment of the training area currently known as Bravo 19 in support of Fallon Naval 

Air Station. The report should also include the estimated fair market value and remediation costs associated with the environmental 

impact to the tribal lands. 

137

ENVIRONMENTAL RESTORATION, AIR FORCE

The conference agreement provides $384,307,000 for Environmental Restoration, Air Force. 

ENVIRONMENTAL RESTORATION, DEFENSE-WIDE

The conference agreement provides $24,081,000 for Environmental Restoration, Defense-Wide. 

ENVIRONMENTAL RESTORATION, FORMERLY USED DEFENSE SITES

The conference agreement provides $284,619,000 for Environmental Restoration, Formerly Used Defense Sites, instead of 

$221,369,000 as proposed by the House and $312,619,000 as proposed by the Senate. 

OVERSEAS HUMANITARIAN, DISASTER, AND CIVIC AID

The conference agreement provides $59,000,000 for Overseas 

Humanitarian, Disaster, and Civic Aid.

FORMER SOVIET UNION THREAT REDUCTION

The conference agreement provides that $10,000,000 of the 

funds appropriated under this heading shall be available only to 

support the dismantling and disposal of nuclear submarines, submarine reactor components, and warheads in the Russian Far East, 

as proposed by the Senate. The House bill did not address this 

matter. 

The House report provided that $39,400,000 requested for the 

Proliferation Prevention Initiative (PPI) be redirected for the elimination of strategic nuclear delivery systems and for the establishment of on-site management offices. The Senate report did not address this matter. The managers direct that not to exceed 

$29,400,000 be made available for the PPI, and that the remaining 

funds be allocated as indicated in the House report. In addition, 

the managers direct that no funds shall be obligated for the Proliferation Prevention Initiative (PPI) until 15 days after the Under 

Secretary of Defense (Comptroller) reports in writing to the congressional defense committees on the following: (1) the degree to 

which the PPI is fully consistent with the authorization for, and 

core functions of, the Cooperative Threat Reduction (CRT) program; 

and (2) an explanation of how each proposed PPI country program 

leverages, rather than duplicates or replaces, other U.S. government programs.

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139

LEAD SYSTEM INTEGRATOR

The conferees direct the Undersecretary of Defense for Acquisition, Logistics, and Technology to submit a report to the congressional defense committees within 120-days of enactment of the fiscal year 2004 Defense Appropriations Act on steps the Department 

of Defense has taken to ensure that the Lead Systems Integrator 

(LSI) contracting mechanism maintains adequate safeguards. The 

report should include a thorough review of how the Department intends to assure that adequate firewalls exist between the parent 

company and the LSI entity on active contracts.

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STRYKER BRIGADE COMBAT TEAM

In order to enhance Army transformation, the conferees agree 

to provide an additional $35,000,000 to ensure fielding of the fifth 

and sixth Stryker Brigade Combat Teams (SBCT). The conferees 

direct that funding be made available specifically for the advanced 

procurement for the fifth SBCT, 2/25 Infantry Division and sixth 

SBCT, 56th ARNG Brigade. The Department of Defense shall ensure that future budgetary and programmatic plans provide for 

fielding no fewer than six SBCTs by 2008.

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STRYKER BRIGADE FIELDING INITIATIVE

The conferees have included $85,000,000 for the acceleration 

and successful fielding of the Army’s Stryker Brigades, beginning 

with the 3rd SBCT. This increased funding shall provide necessary 

equipment, logistics and other procurement items to ensure an ontime and adequately equipped fielding of the Army’s SBCTs. The 

conferees direct the Secretary of the Army to submit a report to the 

Committees on Appropriations within 120-days of enactment of the 

fiscal year 2004 Defense Appropriations Act on the Army’s plan to 

implement this funding guidance.

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E–2C AERODYNAMIC IMPROVEMENTS

The conferees are aware that the Navy has investigated the 

use of aerodynamic improvements such as strakes to obtain improvements in handling characteristics and wind-over-deck requirements of the E–2C thereby improving the safety and performance 

of this platform. The conferees urge the Navy to test and install 

boundary layer flow modifications to the E–2C using aerodynamic 

strakes. 

USMC CH–46 ARMOR REPLACEMENT

The conferees agree to provide $6,000,000 to procure lightweight armor for the CH–46. Replacing the existing steel armor 

with Kevlar will reduce the weight of the CH–46 by almost 400 

pounds, enabling the aircraft to carry two additional combat loaded 

troops without degrading protection. 

V–22

The conferees urge the Department of the Navy to set aside 

funds available in this Act for the V–22 Osprey aircraft procurement program for cost reduction measures, consistent with past 

practices and levels.

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TACTICAL TOMAHAWK

The conferees agree to provide a total of $355,288,000 instead 

of $485,588,000 as proposed by the House and $272,288,000 as proposed by the Senate. In addition, the conferees agree that the Navy 

may procure 350 missiles with these funds instead of the 450 missiles recommended by the House and the 267 missiles recommended by the Senate. 

The conferees do not agree to provide the $25,000,000 as proposed by the House for tooling and testing equipment, understanding that this requirement will be accommodated from within 

funds previously made available to the Department of Defense as 

part of the Emergency Wartime Supplemental Appropriations Act 

(Public Law 108–11). 

Multi-year procurement contracting authority. The conferees 

agree to approve the request for contracting authority for a multiyear procurement of the Tactical Tomahawk missile as proposed by 

the House.

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‘‘VIRGINIA’’ CLASS SUBMARINE

The conferees agree to provide a total of $1,511,935,000 as requested for full funding of the fiscal year 2004 Virginia Class submarine program as requested and proposed by the Senate instead 

of $1,236,935,000 as proposed by the House. In addition, the conferees agree to provide a total of $827,172,000 for the advance procurement of the future Virginia Class submarine program as proposed by the Senate instead of $886,286,000 as proposed by the 

House. The recommendation for advance procurement assumes a 

reduction of $59,000,000 for the fiscal year 2005 program as proposed by the Senate and a reduction of $65,000,000 for each of the 

fiscal year 2007 and 2008 programs as proposed by the Senate. 

The conferees agree with the views expressed by both the 

House and the Senate with respect to the Navy’s request for the 

Virginia Class submarine. 

Multi-year procurement contracting authority. The conferees 

agree with the Senate’s proposal, approving multi-year procurement contract authority for one Virginia Class submarine per year 

for the term of the five-years. The Navy’s request to procure more 

than one submarine in fiscal year 2007 and 2008 is denied and the 

funds requested for advance procurement of materials for these additional submarines have not been appropriated. 

The conferees did not lightly agree to the Navy’s request for 

multi-year procurement for this program. The Navy’s request for 

multi-year procurement in this instance is a significant departure 

from established practices and policies of the Department of Defense. The House and Senate Committees on Appropriations have 

maintained that multi-year procurement authority should be granted in situations in which the Service has accepted a fully tested 

and proven system and a production capability has been fully established. In the case of this system, the lead ship, christened August 16, 2003, has not been fully tested and will not be delivered 

to the Navy until late 2004. 

In addition, multi-year procurement authority should be applied in situations in which the program management and costs 

have stabilized and significant (at least 10 percent) cost savings are 

guaranteed with approval of such authority. The conferees agree 

that the increasing costs (31 percent increase over the previous 

year’s estimate) and limited cost savings (approximately 4 percent) 

for this program, would under customary rules, not allow for its 

consideration for multi-year procurement authority. 

The conferees agree to deviate from traditional policy with respect to multi-year procurement authority in the case of the Virginia Class submarine with the expectation that such approval will 

serve to stabilize the program and reduce the overall costs to the 

government. Furthermore, the conferees agree that a multi-year 

contract for five submarines, or one per year, is in the best interests of the taxpayer. It is for these reasons that the conferees have 

provided multi-year procurement authority for the Virginia Class 

submarine. The Navy should note that the Committees on Appropriations will continue to closely monitor this program and may reexamine the decision to grant multi-year procurement authority if 

program milestones are not met or costs escalate. 

186

Current contractual agreement. The conferees find that the current contractual agreement for the Virginia Class submarine that 

the Navy awarded in August 2003, referred to as the ‘‘block buy 

agreement,’’ includes positive and negative aspects. 

The signing of the block buy agreement committed the Navy 

to purchasing six submarines over five years, two to be purchased 

in fiscal year 2007, which is a clear violation of both the House and 

Senate fiscal year 2004 Department of Defense Appropriations bills 

(H.R. 2658 and S. 1382). Neither of these bills approved the procurement of two submarines in fiscal year 2007 or 2008. Further, 

while the block grant agreement is subject to appropriations, 

should Congress not provide an appropriation for two submarines 

in 2007, the agreement allows for a drastic increase in overhead 

rates at the affected shipyards, causing a significant retroactive 

cost increase to the four previously purchased vessels. 

The conferees believe it was inappropriate for the Navy to 

enter into an agreement that disregarded Congressional views and 

subject taxpayers to additional costs should a future Congress 

choose not to purchase more than one submarine in 2007. 

The conferees are pleased however, that the block grant agreement includes incentives for both the Navy and the commercial 

shipyards to meet schedule milestones and cost limitations. The 

conferees believe that the incentives included in the block grant 

buy agreement should be the beginning point in any future contract negotiations for construction, overhaul, and maintenance of 

Navy vessels. The conferees strongly encourage the Navy to continue pursuing contractual arrangements that maintain cost and 

schedule milestones, understanding that these contracts also require the Navy to enforce discipline in its requirements process to 

ensure that requests for workload increases do not jeopardize 

agreed to cost and schedule milestones.

Information provided to Congress. The conferees agree with the 

Senate that the Navy must provide Congress with complete financial and program information on the Virginia Class submarine program. 

CRUISER MODERNIZATION

The conferees agree to provide $102,700,000 for the purpose of 

initiating a program to modernize and upgrade 22 Ticonderoga

Class AEGIS Cruisers. The funds provided for the program have 

been transferred from the Shipbuilding and Conversion, Navy account to the Weapons Procurement, Other Procurement and Operation and Maintenance, Navy appropriations. 

The conferees are pleased that the Navy has recently formalized the requirements and acquisition strategy for this program, 

but concur with the concerns expressed in the Senate report regarding upgrading, CG 71, one of the newest and most modern 

Cruisers in the fleet before upgrading legacy assets. The conferees 

agree the Navy should pursue a plan that would modernize the 

Baseline II or legacy fleet assets at a point earlier than the current 

strategy allows. Therefore, while the conference agreement includes 

funding for CG 71 to be the first vessel of the program, the conferees direct the Navy to revise its strategy to provide for an earlier 

187

modernization of the legacy Baseline II vessels and fully fund this 

revised strategy within the fiscal year 2005 budget request.

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THERMAL IMAGING SENSOR SYSTEM

The conferees are pleased with the progress that has been 

made on upgrading the Thermal Imaging Sensor System (TISS), 

which can provide significant increases in force protection. The conferees request the Navy consider increasing funds for TISS beyond 

the $4,400,000 provided in this Act.

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TRANSPORT AIRCRAFT REQUIREMENTS

The conferees direct that not later than 180 days after enactment of this legislation, the Secretary of the Air Force shall provide 

a report to the congressional defense committees detailing a proposed approach for addressing official air travel requirements and 

prioritization of aircraft use associated with Special Air Missions. 

The report shall include the current retirement schedule of existing 

aircraft, preferred replacement aircraft types, quantities, acquisition alternatives for both new and used aircraft, corresponding 

total cost of operation, and base(s) of assignment. 

U–2 ADVANCED SYNTHETIC APERTURE RADAR (ASARS) 

The conferees agree with the concerns expressed by the House 

with respect to the ASARS program, amending to January 15, 

2004, the date for which the requested report is due. 

PREDATOR B UNMANNED AERIAL VEHICLE (UAV) 

The conferees agree that the Air Force shall submit no later 

than December 1, 2003, a report that addresses the operational requirement for the Predator B UAV and a development and acquisition plan for achieving that operational requirement with a steady 

production rate by 2006.

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COMBAT TRAINING RANGES

The conferees have reduced the requests for Combat Training 

Ranges by $4,200,000. Funding for this program has been reduced 

due to historically slow execution of program funds included in the 

request. The conferees expect that this reduction will be applied 

proportionately among the various non-Congressional interest 

items and activities within this program element.

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ADVANCED SEAL DELIVERY SYSTEM (ASDS) 

The House provided the funds as requested for advance procurement for long lead items associated with the second ASDS, but 

directed that none of the funds be obligated before the first ASDS 

satisfactorily passes operational evaluation and before the Milestone C decision assessing affordability and effectiveness is completed. The Senate transferred the funds requested to Research, 

Development, Test & Evaluation, Defense-Wide. The conferees 

agree to provide the budget request for advance procurement and 

concur with the direction of the House. The conferees further direct 

that none of the funds provided may be obligated or expended until 

15 days after the Secretary of the Navy notifies the defense committees in writing of the Milestone C decision and provides a detailed report on the program’s revised cost estimate and future 

budget requirements as validated by the Cost Analysis and Improvement Group.

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AIR NATIONAL GUARD

The Senate recommended a specific increase of $20,000,000 for 

F–15 Engine Kits within the amounts provided to the Air National 

Guard. The House concurs and the conferees agree to provide 

$20,000,000 for F–15 Engine Kits. 

ITEMS OF SPECIAL INTEREST

The conferees agree that the National Guard and Reserve 

equipment program shall be executed by the heads of the Guard 

and Reserve components with priority consideration for miscellaneous equipment appropriations given to the following items: Air 

National Guard Threat Emitter, Handheld Standoff Mine Detection 

System, Lightweight Maintenance Enclosure, Intelligence Infrastructure, Improved Target Acquisition System, F–16 Block 42 Reengining Program, RAID Helicopter Electro-Optical Sensor Upgrade, Common Bridge Transporter, Extended Cold Weather Clothing System, F–16 and A–10 LITENING AT Targeting Pod, M–

COFT XXI, Theater Airborne Reconnaissance System, Expandable 

Light Air Mobility Shelters, Movement Tracking System, Laser 

Marksmanship Training System, Bladefold Kits for Apache Helicopters, Engineer Mission Modules for PLS, Tactical Firefighting 

Equipment, HMMWV, Up-Armored HMMWV, Construction Equipment SLEP, AN/PVS–7, AN/PVS–14, LITENING II, A–FIST XXI 

Simulation Trainers, A–FIST, AB/FIST Simulation Trainers, F–16 

TARS/SAR, DFIRST, Abrams Sidecar, Sidecar Embedded Diagnostic Systems for M1A1 tanks, Combined Support Function Module Replacment Test Equipment for DSESTS (CSFM), Self-Loading 

Trailer, M–109A6 Paladin Rebuild, EST 2000, AF Reserve Command and Control Communications Systems Upgrade, JSTARs 

NRE for procurement of Re-engining, and FMTV.

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JOINT STRIKE FIGHTER (JSF) 

The conferees agree to provide a total of $4,322,623,000 for 

continued development and testing of the F–35, Joint Strike Fighter (JSF). This recommended level is $43,200,000 below the budget 

request, $88,800,000 above the level recommended by the House, 

and $60,000,000 below the level recommended by the Senate. 

The conferees agree to a reduction of $54,000,000 for excessive 

management support, as proposed by the House, a reduction of 

$56,000,000 and an increase of $52,800,000, as proposed by the 

Senate, based on the inappropriate application of inflation adjustments, and an increase of $14,000,000 for risk reduction on the F–

136 interchangeable engine. The conference agreement to reverse 

the decision of the JSF program office with respect to the application of inflation adjustments, is based on the understanding that 

the ‘‘across the board inflationary adjustment’’ was applied disproportionately to the F–136 interchangeable engine development, 

resulting in a $56,000,000 reduction to this development effort. The 

conference agreement redistributes this inflation adjustment to the 

entire program and restores $52,800,000 to the engine development 

program, as proposed by the Senate. 

WITHHOLDING OF RESEARCH AND DEVELOPMENT FUNDING

The conferees are concerned with the practice of withholding a 

percentage of research and development funding from programs, 

projects and activities. The conferees are also concerned that many 

Department of Defense organizations are charging ‘‘taxes’’ on funds 

that are appropriated to or pass through the control of the organization, and that the practices of withholding and ‘‘taxing’’ appropriated funds appears widespread throughout the research and development community, including headquarters, laboratories, and 

other research entities. 

The conferees believe that the practice of altering the level of 

appropriated funds via administrative ‘‘withholds’’ or the administration of ‘‘taxes’’ without specific direction from the Congress, violates the intent of Congress. 

The conferees, therefore, direct the Comptroller General to review all of the research and development appropriation accounts, 

at all levels, and submit a report to the House and Senate Committees on Appropriations, no later than March 1, 2004, that details 

what fiscal year 2003 and 2004 programs, projects and activities 

have been subject to administrative withholds and ‘‘taxes’’ and the 

programs, projects and activities to which these amounts were applied.

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FUTURE COMBAT SYSTEM

The conferees share the view expressed in the reports accompanying both the House- and Senate-passed versions of the fiscal 

year 2004 Department of Defense Appropriations bill that the 

Army must improve the structure of the budget estimates in support of the Future Combat System (FCS). Adding detail to the 

budget justification materials is essential to justify the requested 

level of funding which totals $1,701,331,000 in fiscal year 2004 and 

$13,243,904,000 over the Future Years Defense Plan (FYDP). 

Accordingly, the conferees direct that the Army establish two 

separate program elements for the purpose of supporting the FCS 

budget estimates. One program element shall include funding estimates for the Non-Line of Sight Cannon and resupply vehicle 

(NLOS–C). For fiscal year 2004, the conferees direct that 

$353,242,000 of the funds requested for the FCS program be made 

available only for NLOS–C. The conferees recognize that NLOS–C 

is an element of the FCS system of systems and that development 

of NLOS–C must be coordinated with other elements of the FCS 

program. The conferees further direct that this program is a special 

interest item subject to prior approval reprogramming procedures 

for the cumulative value of transfers in excess of $20,000,000. In 

addition, the conferees direct the Secretary of the Army to provide 

financial execution data on the NLOS–C element of FCS including, 

but not limited to: obligations, disbursements, and transfers. 

The balance of the funding requested for fiscal year 2004, 

$1,348,089,000, shall be divided into the following projects within 

a separate program element:

[In thousands of dollars] 

Non-Line of Sight (NLOS) Launch system .......................................... 102,971

Reconnaissance Platforms and Sensors ............................................... 284,925

Unmanned Ground Vehicles ................................................................. 186,768

Unattended Sensors .............................................................................. 17,432

Sustainment ........................................................................................... 139,239

Command and Control .......................................................................... 334,730

Manned Ground Vehicles ...................................................................... 282,024

The conferees direct the Secretary of Defense to provide 30 

days prior notification to the congressional defense committees on 

the cumulative value of transfers in excess of $20,000,000 into or 

out of these projects. In addition, the conferees direct the Secretary 

of the Army to provide quarterly financial reports to the congressional defense committees that include, but are not limited to obligations, disbursements, and transfers for each of these projects. 

DEFENSE LANGUAGE INSTITUTE RESEARCH AND DEVELOPMENT

The conferees note that the Defense Language Institute (DLI) 

is funded primarily through the Operation and Maintenance, Army 

account. However, the conferees are aware that DLI often undertakes research and development work on technologies related to 

language, language learning, and curriculum development. Accordingly, the conferees urge the Secretary of the Army to establish a 

new program element code within the Research, Development, Test 

and Evaluation, Army account for the purpose of funding research 

and development efforts at DLI. The conferees also recommend 

260

that the Army provide a reasonable level of funding to support this 

effort from the resources provided in this Act. 

ARMY MEMS–GPS/INS TECHNOLOGY DEVELOPMENT

The conferees agree to provide an additional $8,500,000 to continue development and testing essential to achieve a low-cost inertial guidance system using high-g MEMS technology and producing 

an anti-jam ‘‘ultra-deeply coupled GPS/INS hardware/software system’’ from funding included for the Excalibur artillery program. 

The conferees expect this joint Army-Navy effort to be robustly 

funded in the fiscal year 2005 budget request and in the Future 

Years’ Defense Program. 

OBJECTIVE FORCE COST MODULE

In fiscal year 2003, the conferees provided $3,600,000 to fund 

the initial development phase of the Objective Force Cost Module 

(OFCM), a cost analysis and estimating tool critical to the on-time 

and on-budget deployment of the Future Combat System (FCS). 

Given the positive development of the OFCM tool to date and continuing concerns that the FCS program keep its deployment and 

budget schedule, the conferees encourage to Army to continue fiscal 

year 2004 funding of the OFCM program with available FCS funds. 

NEUROTOXIN EXPOSURE TREATMENT RESEARCH PROGRAM (NETRP) 

The conferees are aware that the United States Army Medical 

Research and Materiel Command is conducting excellent research 

in investigating the underlying biologic mechanisms and therapeutic interventions of neurodegenerative effects caused by deployment, environmental and occupational exposures. Therefore, the 

conferees recommend $26,000,000 for the continuation of this research into Parkinsons and other neurological disorders. The conferees note the success of the collaborative work between the military, a non-profit organization and an academic laboratory with 

distinguished scientific credentials in this field that has helped accelerate NETRP research and would urge the Army to continue its 

support of this effort.

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ANTI-SUBMARINE WARFARE (ASW) MASTER PLAN

The conferees agree with the House position on the Navy’s development of the Anti-Submarine Warfare (ASW) Master Plan. The 

conferees request the Navy provide the House and Senate Committees on Appropriations with a full report of the results and recommendations of ‘‘Task Force ASW’’ as well as its plan for implementing the recommendations. 

‘‘S’’ BAND RADAR

The conferees have agreed to fund the Navy’s ‘‘S’’ Band radar 

development as part of the DD(X) effort, as opposed to a separate 

development effort as proposed by the House. The conferees make 

this recommendation based on the Navy’s decision to choose the ‘‘S’’ 

Band radar over its original recommendation of the ‘‘L’’ Band radar 

for DD(X). 

COOPERATIVE ENGAGEMENT CAPABILITY (CEC) 

The conferees understand that the Navy is potentially pursuing a new strategy for Cooperative Engagement Capability (CEC) 

development and system configuration. The conferees understand 

that no decision has yet been made to change the strategy as presented in the fiscal year 2004 budget request which calls for spiral 

development of hardware and software to a Block 2 configuration. 

The conferees understand that the Navy may potentially alter the 

development and acquisition strategy in such a manner as to affect 

the Block 2 program presented in the fiscal year 2004 budget request. 

The conferees agree that should the Navy determine an alternative strategy for CEC, the additional funds provided in this Act 

for CEC Block 2 may be merged with and be available for purposes 

similar to the purposes for which appropriated. The conferees further agree that the Navy shall ensure the House and Senate Committees on Appropriations are fully apprised of the Navy’s plans 

relative to changes in the CEC acquisition strategy. 

TAC AIR DIRECTED INFRA-RED COUNTER-MEASURE (TADIRCM) 

The conferees agree with the House position with respect to 

the development of Tac Air Directed Infra-Red Counter-Measure 

(TADIRCM) and direct that an initial suitability assessment obtained through the Early Operational Assessment (EOA) be submitted to the House and Senate Committees on Appropriations 

within 60 days of completion of the EOA. 

TACTICAL CONTROL SYSTEM FOR UNMANNED AERIAL VEHICLES

The conferees agree with the House position that the fiscal 

year 2004 request for the multi-Service Tactical Control System 

(TCS) for multi-Service UAV control, is focused on Navy-centric 

UAV systems that are neither multi-Service nor interoperable with 

other UAV programs. The conferees also agree the Navy has a requirement for a single system that will support the operation of 

multiple UAVs from both fixed and moving platforms and understand that the FireScout and Global Hawk Maritime DemonstraVerDate jul 14 2003 23:57 Sep 25, 2003 Jkt 089422 PO 00000 Frm 00290 Fmt 6601 Sfmt 6601 E:\HR\OC\HR283.XXX HR283
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tion platforms, the focus of the 2004 TCS efforts, meet current 

Navy needs. 

Therefore, the conferees direct the Navy to restructure the existing TCS program to focus on its requirements. The conferees 

agree to provide $25,000,000 to support the continued development 

of the Navy’s TCS program required to achieve this critical capability. The conferees direct that no fiscal year 2004 funds may be 

obligated or expended for TCS until the Navy submits a report to 

the House and Senate Committees on Appropriations, which details 

its plan for this restructured program. At a minimum, the report 

shall include the Navy’s requirement for the TCS system, a plan 

to meet standards based on interoperability, and the Navy’s UAV 

roadmap that justifies the requirement for TCS. 

HELIOS REPLACEMENT

The conferees encourage the Office of Naval Research to examine developing a high altitude, long endurance unmanned aerial vehicle to replace the Helios in order to increase capabilities for high 

data rate communications and remote sensing. 

FUTURE SIGINT REQUIREMENTS/JOINT ACS PROGRAM

The conferees are pleased that in reviewing its future SIGINT 

requirements, the Navy is pursuing a partnership with the Army 

in the development, testing, and procurement of a Joint multi-intelligence sensor and platform, the Aerial Common Sensor (ACS). 

The conferees have provided $4,000,000 for the Navy to initiate 

and pursue the development and fielding of this Joint ACS program. The conferees direct the Navy to report to the House and 

Senate Committees on Appropriations by March 1, 2004, on its requirements and future acquisition plans for this program. 

UNIFORMED SERVICES UAV REQUIREMENTS

The development and use of Unmanned Aerial Vehicles (UAVs) 

has become integral to each of the Uniformed Services warfighting 

and operational plans. In many instances, there are common requirements for these systems and similar technologies that can 

meet these requirements. 

The conferees direct the Under Secretary of Defense for Acquisition, Technology and Logistics, in consultation with the Chief of 

Naval Operations, the Commandant of the Marine Corps, the Chief 

of Staff of the Army, the Chief of Staff of the Air Force, and the 

Commandant of the Coast Guard, to submit a report, no later than 

April 1, 2004, to the House and Senate Committees on Appropriations, which details the common UAV requirements for each of the 

Uniformed Services.

LITTORAL COMBAT SHIP

The conferees have included $168,071,000 for continued research and development of the Littoral Combat Ship (LCS), the 

amount recommended by the House and $10,000,000 above the 

amount recommended by the Senate. 

292

The conferees agree with the House language regarding the 

need to refine the Navy’s concept of operations in the littoral 

battlespace to ensure that there is no duplication of effort between 

LCS and other platforms. To this end, the conferees direct the 

Navy to provide a report to the House and Senate Committees on 

Appropriations, no later than March 1, 2004 that details the missions LCS will conduct in the littoral battle space, which platforms 

and systems currently conduct these missions, and what changes, 

if any, will be made to future years’ budgets to eliminate any duplication of effort. 

In addition, in order to maintain focus on the LCS’ mission 

module development and integration, the conferees agree that 

$51,000,000 of the funds provided for LCS is available only for 

these efforts. 

UNFORESEEN IMPACT OF BASE OPERATIONS FUNDING ON FUTURE

NAVAL RESEARCH LABORATORY ACTIVITIES

The conferees are concerned about changes in the management 

of base operations funding and its potential to adversely impact ongoing and emergent research activities. The conferees urge the 

Navy to be sensitive to the special nature of such research activities and to ensure sufficient flexibility to accommodate unforeseen 

research needs. 

USE OF RESEARCH AND DEVELOPMENT FUNDING FOR SHIPBUILDING

The conferees agree with the Senate concerning the Navy’s 

plans to fund the purchase of ships—DD(X) and LCS—in fiscal 

year 2005 within the Research, Development, Test and Evaluation 

(RDT&E) appropriation. The conferees believe that the use of research and development funding to procure first ships of a class is 

not in keeping with budgetary guidelines regarding full-funding. 

The conferees agree that should the fiscal year 2005 request include these ships—DD(X) and LCS—within RDT&E, all research 

and development acquisition rules shall apply, including technology 

readiness reviews, milestone decisions, and test and evaluation before these ships may transition to procurement.

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ELECTRONIC WARFARE TRANSITION PLAN

The Senate included report language on the Air Force’s electronic warfare transition plan. The conferees remain concerned 

about this issue and expect the Air Force to work with the House 

and Senate Appropriations Committees to address the concerns 

raised in the Senate report. 

F–15E SQUADRONS

The conferees have reduced funding for F–15E Squadrons by $9,000,000. Activities in this program have continually had schedule delays of up to 2 quarters, and the account is a frequent source 

for reprogrammings and higher Air Force priorities. The conferees 

note that this reduction is taken only for the reasons stated and 

without prejudice against efforts to field Operational Flight Program Suite 5, which the conferees deem to be a high priority. 

NEXT GENERATION BOMBER

The conferees have included $45,000,000 for acceleration of a 

program to develop a next generation long-range strike bomber. 

Many technologies needed for development of a next generation 

bomber can also be demonstrated and incorporated in the existing 

bomber fleet. The conferees urge that from the funds provided for 

next generation bomber development, the Air Force give consideration to the design and demonstration of a data collection capability as an upgrade to the Defense Management System on the B–

2 bomber. 

LOW BANDWIDTH RURAL TELEMEDICINE (LBRTS) SYSTEM

The conferees encourage the Air Force to accelerate the deployment and integration of the Low Bandwidth Rural Telemedicine 

(LBRTS) System from seven years to three years to enhance the 

Air Force’s telemedicine infrastructure. Any funding for this program shall be made available from program element 0602202F.

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TECHNOLOGY VENTURE CENTER

The conferees agree to provide $1,600,000 for the Technology 

Venture Center in Montana and for an entrepreneurial training/

virtual business incubator in Alaska using science and technology. 

SPRAY COOLING MANUFACTURING ENGINEERING

The conferees are aware of the major contributions that 

DMEA’s spray cooling program has made to a number of defense 

programs through its ability to allow commercial electronics to operate successfully in harsh military environments while reducing 

size and weight. The conferees urge the department to standardize 

spray cooling technology components and products to facilitate 

their migration to other military programs. Accordingly, the conferees have added funding above the president’s request to continue 

its efforts to standardize this important technology. The conferees 

also encourage DMEA to continue its work with the services to increase service familiarity with this advanced technology. 

TERRORISM INFORMATION AWARENESS (TIA) 

The conferees agree with the Senate position which eliminates 

funding for the Terrorism Information Awareness (TIA) program 

within the Defense Advanced Research Projects Agency (DARPA). 

The conferees are concerned about the activities of the Information 

Awareness Office and direct that the Office be terminated immediately. The only research projects previously under the jurisdiction 

of the Information Awareness Office that may continue under 

DARPA are: Bio-Event Advanced Leading Indicator Recognition 

Technology, Rapid Analytic Wargaming, Wargaming the Asymmetric Environment, and Automated Speech and Text Exploitation 

in Multiple Languages (including Babylon and Symphony). The 

conferees find these programs are not components of TIA for the 

purposes of section 8131. The conference agreement does not restrict the National Foreign Intelligence Program from using processing, analysis and collaboration tools for counterterrorism foreign 

intelligence purposes. 

CHEMICAL IMAGING FOR FOOD AND WATER SAFETY

The conferees are aware of recent research which rapidly 

measures the presence of pathogens in food and water by chemical 

imaging. Successful implementation of this technology will have a 

significant impact on the soldier in the field and can be applied to 

commercial uses as well. The conferees encourage the Department 

to consider further research in this field. 

CHEMICAL AND BIOLOGICAL DEFENSE PROGRAM

Within funds provided for the Chem-Bio Defense Initiatives 

Fund, the conferees recommend the creation of an end-to-end point 

of care based diagnostic network to combat terrorism. Funds should 

be distributed to partnerships that combine universities and nonprofit institutes with industrial partners to insure rapid translation 

into clinical use. 

328

GROUND-BASED MIDCOURSE DEFENSE

Additional funding is provided to the Ground-based Midcourse 

Defense program to procure additional Ground Based Interceptors 

at Fort Greely; to enhance security measures to protect this strategic facility; and to accelerate installation of communications at 

Eareckson Air Station. The conferees direct the Director of the Missile Defense Agency to submit a report to the Committees on Appropriations within 120-days of enactment of the fiscal year 2004 

Defense Appropriations Act on the Department’s plan to implement 

this funding guidance.

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TITLE V—REVOLVING AND MANAGEMENT FUNDS 

DEFENSE WORKING CAPITAL FUNDS

The conferees recommend an appropriation of $1,641,507,000 

for the Defense Working Capital Funds instead of $1,712,507,000 

as proposed by the House or $1,449,007,000 as proposed by the 

Senate. 

DEFENSE WORKING CAPITAL FUND REDUCTIONS

The conferees concur with Senate Report 108–87 regarding the 

adequacy of budget justifications for the Defense Working Capital 

Funds. The conferees recommend a reduction of $80,000,000 to the 

budget estimate, to be distributed only as follows:

Working Capital Fund, Defense-Wide ................................................. ¥$40,000,000

Working Capital Fund, Air Force ......................................................... ¥$40,000,000

MEALS READY-TO-EAT (MRE) INVENTORIES

The conferees are concerned that the current MRE inventory 

does not provide adequate stock levels to meet documented war reserve requirements. While the Department has identified a war reserve requirement of 6.0 million cases of MRE’s, current inventory 

is only 3.4 million cases. The conferees applaud the Defense Logistics Agency for identifying a higher MRE war reserve requirement 

to improve the Department’s long-term MRE war reserve requirement to improve the Department’s long-term sustainment posture. 

The conferees direct the Secretary of Defense to fund that increase 

requirement in the Department’s fiscal year 2005 budget submission, with the goal of a full war reserve inventory of MREs by fiscal 

year 2006. 

NATIONAL DEFENSE SEALIFT FUND

The conferees agree to provide $1,066,462,000 for the National 

Defense Sealift Fund, $3,700,000 above the budget request for the 

conversion of a former Naval vessel into a training ship for the 

Great Lakes Maritime Academy. The conferees further agree that 

within funds made available in the National Defense Sealift Fund, 

$6,500,000 is available only for the construction of additional sealift capacity. 

The conference agreement fully funds the construction of the 

T–AKE program as requested.

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DHP REPROGRAMMING PROCEDURES

The conferees remain concerned regarding the transfer of 

funds from DoD military medical treatment facilities (MTFs) to pay 

for contractor-provided medical care. To limit such transfers within 

the Defense Health Program operation and maintenance account, 

the conferees have included bill language designating Private Sector Care under the TRICARE program as a separate sub-appropriation within the Defense Health Program. Any transfer of funds into 

or out of the Private Sector Care sub-appropriation will require the 

Department of Defense to follow prior approval reprogramming 

procedures. 

MYELOPROLIFERATIVE DISORDERS RESEARCH

The conferees recommend $4,250,000 for research into the specific chronic myeloproliferative disorders of the polycythemia vera, 

idiopathic myelofibrosis, and essential thrombocytosis. These disorders of the bone marrow are malignant diseases that offer great 

research promise with respect to the behavior of human blood cells. 

The conferees direct that the Secretary of Defense, in conjunction 

with the service Surgeons General, select basic or translational 

medical research projects of clear scientific merit and of direct relevance to military health. 

PEER REVIEWED MEDICAL RESEARCH PROGRAM

The Senate recommended $50,000,000 for a Peer Reviewed 

Medical Research program. The conferees agree to provide 

$50,000,000 for this program, and recommend the following 

projects as candidates for study: amyotrophic lateral sclerosis; alcoholism research; anti-diarrhea supplement; blood-related cancer research; childhood asthma; chronic pain research; epilepsy research; 

geneware rapid vaccine development; interventional cardiovascular 

magnetic resonance imaging technologies; muscle function research; Malaria vaccine initiative [SBRI]; Muscular Dystrophy; 

osteoporosis and bone related disease research; Padget’s disease; 

providence cancer research project; post traumatic stress disorders; 

social work research; interstitial cystitis; military medical 

informatics research; limb loss and paralysis research; and Reserve 

component medical training program. 

The conferees direct the Department to provide a report by 

March 1, 2004, on the status of this Peer Reviewed Medical Research Program. 

COST SHARING FOR MEDICAL RESEARCH PROGRAMS

The conferees commend the Department for its management of 

the peer reviewed medical research and cancer research programs, 

but note with concern the challenge of funding increases to these 

programs within the resources available for military spending. 

Therefore, the conferees direct the Assistant Secretary of Defense 

(Health Affairs), in consultation with the service Surgeons General 

and the Institute of Medicine, to investigate alternative funding 

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ing the peer review selection process. The Department should report their findings and recommendations when submitting their 

annual report on the status of the Peer Review Medical Research 

Program, due on March 1, 2004. 

CHROPRACTIC HEALTH CARE INITIATIVE

The Congress appropriated $750,000 in the Department of Defense Appropriations Act 2003 (Public Law 107–248) under the 

heading ‘‘Defense Health Program’’ for operation and maintenance 

for the Chiropractic Initiative. The conferees agree and direct the 

Department to make available from any available balances, 

$750,000 to develop and carry out a joint chiropractic health care 

initiative with the Texas Chiropractic College. 

BETANCES HEALTH CENTER

The Congress appropriated $500,000 in the Department of Defense Appropriations Act 2003 (Public Law 107–248) under the 

heading ‘‘Defense Health Program’’ for operation and maintenance 

for the Betances Health Center. The conferees agree and direct the 

Department to make available from any available balances 

$500,000 to the Betances Health Center to support the restoration 

of health care services. 

HEALTHEFORCES/OUTCOMES MANAGEMENT PROGRAM

The conferees agree with the Senate position on the Walter 

Reed Army Medical Center’s HealtheForces/Outcomes Management 

Program and note that a portion of the funds may be used for collaborative projects for chronic disease management in medically 

underserved, rural areas. 

DISPOSABLE TOOTHBRUSHES

The conferees encourage the Army to consider looking at the 

viability of adding disposable toothbrushes to sundry packs.

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SIERRA ARMY DEPOT

The conferees have provided funding for the Sierra Army 

Depot Cryofracture/Plasma Arc Demilitarization Program within 

Research, Development, Test and Evaluation, Army as opposed to 

the funding provided in the House bill. 

DRUG INTERDICTION AND COUNTER-DRUG ACTIVITIES, DEFENSE

The conference agreement includes $835,616,000 for ‘‘Drug 

Interdiction and Counter-drug Activities, Defense’’ as opposed to 

$817,371,000 as proposed by the House and $832,371,000 as proposed by the Senate. Adjustments to the budget request are as follows:

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NORTHERN COMMAND

The Senate included report language expressing concern about 

plans to consolidate some existing functions and personnel currently residing with the regional Commands at the newly created 

Northern Command and adjusted the budget accordingly. The 

House shares these concerns. While the conferees agree that Northern Command has a tremendous responsibility for protecting the 

continental United States from many threats to include those associated with counter-narcotics and fully support their requirements, 

they also fully support the missions and expertise that reside with 

the existing regional commands, most notably the United States 

Pacific and Southern Commands. The conferees direct that none of 

the resources or personnel to include those of the reserve components currently assigned to Pacific Command or Southern Command shall be diverted to Northern Command without 15 days 

prior notification of the congressional defense committees. The conferees have adjusted the budget to support their recommendation. 

OFFICE OF THE INSPECTOR GENERAL

The conferees agree to provide $162,449,000, as proposed by 

both the House and Senate, for the Office of the Inspector General. 

TITLE VII—RELATED AGENCIES 

CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY

SYSTEM FUND

The conference agreement appropriates $226,400,000 for payment to the Central Intelligence Agency Retirement and Disability 

System Fund, as proposed by both the House and the Senate. 

INTELLIGENCE COMMUNITY MANAGEMENT ACCOUNT

(INCLUDING TRANSFER OF FUNDS)

The conference agreement appropriates $175,113,000 instead 

of $170,640,000 as proposed by the House and $165,390,000 as proposed by the Senate. 

The conference agreement provides for a transfer of 

$44,300,000 to the Department of Justice for the National Intelligence Center to support the Department of Defense’s counter-drug 

intelligence responsibilities, instead of $46,100,000 as proposed by 

the House and $34,100,000 as proposed by the Senate. 

PAYMENT TO KAHO’OLAWE ISLAND CONVEYANCE, REMEDIATION, AND

ENVIRONMENTAL RESTORATION FUND

The conference agreement provides $18,430,000 for the 

Kaho’olawe Island Conveyance, Remediation, and Environmental 

Restoration Fund as proposed by the Senate. 

NATIONAL SECURITY EDUCATION TRUST FUND

The conference agreement appropriates $8,000,000 for the purposes of title VIII of Public Law 102–183, to be derived from the 

342

National Security Education Trust Fund, as proposed by both the 

House and the Senate.

TITLE VIII—GENERAL PROVISIONS 

The conference agreement incorporated general provisions of 

the House and Senate versions of the bill which were not amended. 

Those general provisions that were amended in conference follow: 

The conferees included a general provision (Section 8008) 

which amends language recommended by the House and the Senate with respect to the programs granted multi-year procurement 

authority. 

The conferees included a general provision (Section 8014) 

which amends House language regarding converting functions of 

the Department of Defense to contractor performance, by adding 

cost differential criteria; crediting conversions toward outsourcing 

goals, and excluding depot contracts and depot maintenance contracts. 

The conferees included a general provision (Section 8018) 

which amends Senate language to require that the Department of 

Defense budget submission for fiscal year 2005 shall identify anticipated residual value settlements. 

The conferees included a general provision (Section 8049) 

which amends House and Senate language recommending rescissions. The rescissions agreed to are: 

(RESCISSIONS)

Fiscal Year 2001: 

Shipbuilding and Conversion, Navy: Auxiliaries Craft and 

Prior Year Program Costs .......................................................... $3,835,000

Fiscal Year 2002: 

Shipbuilding and Conversion, Navy: Auxiliaries Craft and 

Prior Year Program Costs .......................................................... 9,336,000

Fiscal Year 2003: 

Aircraft Procurement, Army: 

Chinook .................................................................................... 39,100,000

A2C2S ....................................................................................... 8,000,000

Weapons and Tracked Combat Vehicles, Army: M1A2 ............... 30,000,000

Procurement of Ammunition, Army: CTG, 40MM, All Types ..... 36,000,000

Other Procurement, Army: Advanced Aviation Instrumentation 

Training Simulator ..................................................................... 8,000,000

Other Procurement, Air Force: Classified .................................... 10,000,000

Procurement, Defense-Wide: 

EC–130J Upgrades .................................................................. 15,000,000

DIRCM Laser ........................................................................... 33,000,000

Research, Development, Test and Evaluation, Army: 

Environmental Medical Unit .................................................. 1,650,000

Classified Program .................................................................. 1,339,000

Research, Development, Test and Evaluation, Defense-Wide: 

SOF Tactical Systems ................................................................. 25,000,000

National Defense Sealift Fund: Unobligated Balance ................. 105,300,000

The conferees included a general provision (Section 8082) 

which amends Senate language regarding the Under Secretary of 

Defense for Intelligence. The conference agreement requires a quarterly report from the Secretary of Defense, the contents of which 

are discussed in the classified annex accompanying the conference 

report. 

The conferees included a general provision (Section 8083) 

which amends Senate language providing that government travel 

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card and purchase card refunds may be credited to operation and 

maintenance accounts for fiscal year 2005.

The conferees included a general provision (Section 8091) 

which amends language recommended by the House and Senate to 

make funds available for transfer to other activities of the Federal 

Government, and provides funds for certain classified activities. 

The conferees included a general provision (Section 8093) which amends House language which provides $2,000,000 for 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. The Senate recedes. The conferees are aware that the nonappropriated fund instrumentalities (NAFI) which were established by law to help defray the operating costs of Fisher Houses have decreased in value 

due to poor financial market performance. The conferees are also 

aware that the costs to manage many Fisher Houses are much 

higher than planned due to an influx of patients at military treatment facilities as a result of casualties suffered during operations 

IRAQI FREEDOM and ENDURING FREEDOM. The conferees 

provide $1,800,000 in the Defense Health Program to help mitigate 

any deficit, which will occur in fiscal year 2004. The conferees direct the Secretary of Defense to analyze the financial condition of 

the Fisher House operating accounts and submit with the fiscal 

year 2005 budget a plan to ensure their solvency without increasing the current service fee paid by military family members. 

The conferees included a general provision (Section 8094) 

which amends House language regarding funds reduced from certain operation and maintenance and research, development, test 

and evaluation accounts for savings or excessive growth in advisory 

assistance services, support services, analysis, engineering and 

technical support contracted by the military departments and defense agencies. 

The conferees included a general provision (Section 8095) which amends Senate language making $80,000,000 available for 

component coproduction for the Arrow Missile Defense Program. 

The conferees included a general provision (Section 8096) 

which amends Senate language to provide funds only for transfer 

to the Coast Guard for mission essential equipment for HC–130J 

aircraft. 

The conferees included a general provision (Section 8101) 

which amends House language which reduces $200,000,000 of operation and maintenance funds for cost growth information technology development. 

The conferees included a general provision (Section 8104) 

which amends House language on the amounts reduced from working capital fund excess cash balances. 

The conferees included a general provision (Section 8105) 

which amends House language regarding the amount reduced in 

‘‘Operation and Maintenance, Navy’’ for excess funded carryover. 

The conferees included a general provision (Section 8108) 

which amends Senate language to retain a total of 94 B–52 aircraft 

by providing a total funding amount of $40,600,000. 

The conferees included a general provision (Section 8109) 

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vision which makes $8,000,000 available in ‘‘Operation and Maintenance, Air Force’’ for railroad tack realignment by adding a provision which makes $26,000,000 from funds available in ‘‘Operation 

and Maintenance, Air Force’’ for phased infrastructure repairs for 

Air Force managed ranges in Alaska. 

The conferees included a general provision (Section 8112) 

which amends House and Senate language which provides for 

grants to various organizations. 

The conferees included a general provision (Section 8115) 

which amends Senate language specifying certain budget justification documents required for overseas contingency operations. 

The conferees included a general provision (Section 8117) 

which amends Senate language making classified transfer of funds. 

The conferees included a general provision (Section 8122) 

which amends House language to prohibit the disestablishment of 

the 53rd Weather Reconnaissance Squadron of the Air Force Reserve and which allows the Squadron to perform other missions in 

support of national defense requirements during the non-hurricane 

season. 

The conferees included a general provision (Section 8125) which amends House language which provides for $17,000,000 in 

‘‘Operation and Maintenance, Army’’ only for a grant to the Silver 

Valley Unified School District for the purpose of school construction 

at Fort Irwin, California. 

The conferees included a general provision (Section 8126) 

which amends House language reducing certain accounts in Operation and Maintenance for efficiencies in management, outsourcing, 

and improved economic assumptions.

The conferees included a general provision (Section 8127) 

which amends House language that reduces the amount available 

in ‘‘Operation and Maintenance, Air Force’’ for excess cash in the 

Transportation Working Capital Fund. 

The conferees included a general provision (Section 8128) 

which amends Senate language to rescind funds available in the 

‘‘Iraq Freedom Fund’’ provided in Public Law 108–11. 

The conferees included a general provision (Section 8129) 

which amends House language to allow the Secretary of Defense to 

make additional payments to those local educational agencies who 

have children with severe disabilities. 

The conferees included a general provision (Section 8131) 

which amends Senate language concerning the Terrorism Information Awareness Program. 

The conferees included a general provision (Section 8132) 

which amends House Language that directs the Secretary of the 

Navy to close Naval Station Roosevelt Roads, Puerto Rico. The closure and disposal of Naval Station Roosevelt Roads (NSRR) is a 

logical step in the process of relocating Naval training activities 

and training support from the NSRR area to other training facilities along the Gulf and Atlantic coasts. The conferees recognize the 

record of high quality service and support established by the military personnel, federal civilian employees and local contractors at 

NSRR. The conferees encourage the Navy to take great care in relocating military personnel and families, in assisting civilian employees with relocation and outplacement and in performing enviVerDate jul 14 2003 23:57 Sep 25, 2003 Jkt 089422 PO 00000 Frm 00344 Fmt 6601 Sfmt 6601 E:\HR\OC\HR283.XXX HR283
345

ronmental cleanup. The conferees strongly encourage the Department of the Navy to work with the Department of Defense Education Activity (DoDEA) to ensure the operation of base schools 

through completion of the 2003 to 2004 academic year. The accompanying bill establishes a process for property closure and disposal 

in accordance with the Defense Base Closure and Realignment Act 

of 1990 (title XXIX of Public Law 101–510; U.S.C. 2687 note). 

The conferees included a general provision (Section 8138) 

which amends Senate language regarding a report from the Secretary of Defense on contractual offset agreements with foreign 

countries. 

The conferees included a general provision (Section 8141) 

which amends Senate language to prohibit funds to be obligated or 

expended on the decommissioning of a Naval or Marine Corps Reserve aviation squadron until the Comptroller General of the 

United States submits a report on the requirements for Navy and 

Marine Corps tactical aviation and the role of Reserve assets in 

those mission requirements. 

The conferees concur with the intent of Senate section 8169 

and direct that not later than 30 days after the date of the enactment of this Act, the Secretary of Defense shall submit to the Committees on Appropriations of the House and the Senate, a report 

on contracts for reconstruction and other services in Iraq that are 

funded in whole or in part with funds available to the Department 

of Defense. The report shall detail: 

(1) The process and standards for designing and awarding 

such contracts, including assistance or consulting services provided by contractors in that process; 

(2) The process and standards for awarding limited or solesource contracts, including the criteria for justifying the awarding of such contracts; 

(3) Any policies that the Secretary has implemented or 

plans to implement to provide for independent oversight of the 

performance by a contractor of services in designing and 

awarding such contracts; 

(4) Any policies that the Secretary has implemented or 

plans to implement to identify, assess, and prevent any conflict 

of interest relating to such contracts for reconstruction; 

(5) Any policies that the Secretary has implemented or 

plans to implement to ensure public accountability of contractors and to identify any fraud, waste, or abuse relating to such 

contracts for reconstruction; 

(6) The process and criteria used to determine the percentage of profit allowed on cost-plus-a-fixed-fee contracts for reconstruction or other services in Iraq; and 

(7) A good faith estimate of the expected costs and duration of all contracts for reconstruction or other services in Iraq. 

The conferees included a new general provision (Section 8145) 

which provides for the transfer of the Sturgeon Class submarine 

NARWHAL (SSN–671) to the National Submarine Science Discovery Center, Newport, Kentucky. 

The conferees included a new general provision (Section 8146) 

which allows the Department of Defense to waive subsistence costs 

346

for those military personnel who are hospitalized during fiscal year 

2004 for combat injuries.

CONFERENCE TOTAL—WITH COMPARISONS 

The total new budget (obligational) authority for the fiscal year 

2004 recommended by the committee of conference, with comparisons to the fiscal year 2003 amount, the 2004 budget estimates, 

and the House and Senate bills for 2004 follow:

[In thousands of dollars] 

New budget (obligational) authority, fiscal year 2003 ........................ $426,989,434

Budget estimates of new (obligational) authority, fiscal year 2004 372,346,314

House bill, fiscal year 2004 ................................................................... 369,190,239

Senate bill, fiscal year 2004 .................................................................. 369,165,293

Conference agreement, fiscal year 2004 .............................................. 368,711,561

Conference agreement compared with: 

New budget (obligational) authority, fiscal year 2003 ................ ¥58,277,873

Budget estimates of new (obligational) authority, fiscal year 

2004 .............................................................................................. ¥3,634,753

House bill, fiscal year 2004 ............................................................ ¥478,678

Senate bill, fiscal year 2004 ........................................................... ¥453,732

JERRY LEWIS, 

C. W. BILL YOUNG, 

DAVID L. HOBSON, 

HENRY BONILLA, 

GEORGE R. NETHERCUTT, Jr., 

RANDY ‘‘DUKE’’ CUNNINGHAM, 

RODNEY P. FRELINGHUYSEN, 

TODD TIAHRT, 

ROGER F. WICKER, 

JOHN P. MURTHA, 

NORMAN D. DICKS, 

MARTIN OLAV SABO, 

PETER J. VISCLOSKY, 

JAMES P. MORAN, 

DAVID R. OBEY, 

Managers on the Part of the House.

TED STEVENS, 

THAD COCHRAN, 

ARLEN SPECTER, 

PETE V. DOMENICI, 

CHRISTOPHER S. BOND, 

MITCH MCCONNELL, 

RICHARD C. SHELBY, 

JUDD GREGG, 

KAY BAILEY HUTCHISON, 

CONRAD BURNS, 

DANIEL K. INOUYE, 

ERNEST F. HOLLINGS, 

ROBERT C. BYRD, 

PATRICK J. LEAHY, 

TOM HARKIN, 

BYRON L. DORGAN, 

RICHARD J. DURBIN, 

HARRY REID, 

347

DIANNE FEINSTEIN, Managers on the Part of the Senate.

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