74–225 

112TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 2d Session 112–491 

MILITARY CONSTRUCTION, VETERANS AFFAIRS, AND 

RELATED AGENCIES APPROPRIATIONS BILL, 2013 

MAY 23, 2012.—Committed to the Committee of the Whole House on the State of 

the Union and ordered to be printed 

Mr. CULBERSON, from the Committee on Appropriations, 

submitted the following 

R E P O R T 

together with 

MINORITY VIEWS 

[To accompany H.R. 5854] 

The Committee on Appropriations submits the following report in 

explanation of the accompanying bill making appropriations for 

military construction, the Department of Veterans Affairs, and related agencies for the fiscal year ending September 30, 2013, and 

for other purposes. 

CONTENTS 

Page 

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

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

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

Management and Oversight Initiatives ................................................................. 12 

Department of Defense: 

Military Construction ....................................................................................... 13 

NATO Security Investment Program .............................................................. 23 

Family Housing Construction and Operation and Maintenance .................. 23 

Chemical Demilitarization Construction, Defense-Wide ............................... 27 

Department of Defense Base Closure Account 1990 ..................................... 27 

Department of Defense Base Closure Account 2005 ..................................... 28 

Administrative Provisions ................................................................................ 29 

Department of Veterans Affairs: 

Overview ............................................................................................................ 31 

Veterans Benefits Administration ................................................................... 31 

Veterans Health Administration ..................................................................... 34 

National Cemetery Administration ................................................................. 44 

Departmental Administration ......................................................................... 46 

Administrative Provisions ................................................................................ 57 


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Related Agencies: 

American Battle Monuments Commission ..................................................... 60 

U.S. Court of Appeals for Veterans Claims .................................................... 61 

Cemeterial Expenses, Army ............................................................................ 61 

Armed Forces Retirement Home ..................................................................... 62 

Overseas Contingency Operations .......................................................................... 63 

Administrative Provisions ................................................................................ 63 

General Provisions ................................................................................................... 64 

Changes in Application of Existing Law ................................................................ 65 

Appropriations Not Authorized by Law ................................................................. 68 

Transfer of Funds .................................................................................................... 70 

Rescissions ................................................................................................................ 71 

Constitutional Authority ......................................................................................... 71 

Comparison With the Budget Resolution .............................................................. 72 

Five-Year Projection of Outlays .............................................................................. 72 

Assistance to State and Local Governments ......................................................... 72 

Statement of General Performance Goals and Objectives .................................... 72 

Ramseyer Rule ......................................................................................................... 73 

Full Committee Votes .............................................................................................. 73 

Disclosure of Earmarks and Congressionally Directed Spending Items ............. 73 

State Project List ..................................................................................................... 73 

PURPOSE OF THE BILL

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

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

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

the military to maintain an efficient and effective base structure. 

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

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

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

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

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

the Armed Forces Retirement Home. 

SUMMARY OF COMMITTEE RECOMMENDATION

The Committee recommendations continue necessary support for 

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

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

driving force behind the Committee recommendations is the need 

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

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

for the purpose for which it was appropriated while leaving sufficient resources to close out contracts. The Committee recommendation does not provide the pay raises that were included in the 

budget request. We have included direction to the Department of 

Defense to report on the feasibility of structuring contracts in such 

a way as to encourage efficiency and economy, by returning to contractors a portion of any savings they are able to generate as they 


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execute construction contracts, while returning a majority of those 

savings to the Treasury to reduce our dependence on debt. The Committee recommends $146,385,167,000 in budget authority for the fiscal year 2013 programs and activities funded in the 

bill. In addition, advance appropriations of $54,462,000,000 are 

provided for fiscal year 2014 medical programs of the Department 

of Veterans Affairs. The fiscal year 2013 recommendation is an increase of $10,873,248,000 above the fiscal year 2012 enacted level 

and $693,662,000 below the President’s request. Included in this 

amount is $74,638,167,000 in mandatory budget authority and 

$71,747,000,000 in discretionary budget authority. 

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

The total funding level for military construction and family housing 

is $10,649,317,000, a $2.4 billion reduction below the fiscal year 

2012 enacted level. A significant portion of this decrease is attributed to the deliberate pause in military construction by the Air 

Force. The overall level of funding supports the servicemen and 

women and their families who are making sacrifices during this 

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

of Defense address the numerous challenges we have asked our 

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

The total funding level available for fiscal year 2013 for the De- partment of Veterans Affairs is $135,377,850,000, an increase of 

10.8 percent over the fiscal year 2012 enacted level. The recommendation provides funding increases for several mandatory 

veteran benefits programs, as authorized by current law. In addition to funds for fiscal year 2013, some of which have already been 

appropriated in advance, the Committee recommendation includes 

$54,462,000,000 in advance appropriations for fiscal year 2014 for 

the three health care accounts of the Department. 

The following table compares amounts recommended in the bill 

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

2012: 


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MANAGEMENT AND OVERSIGHT INITIATIVES

The Committee believes the effective stewardship of taxpayer 

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

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

and will continue to use public hearings, briefings and information 

requests, and reviews by the Government Accountability Office and 

the Inspectors General to promote strong financial and program 

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

under the jurisdiction of this bill. 

The fiscal year 2013 appropriations Act and the accompanying 

report address management challenges of the Federal agencies 

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

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

mismanagement that results in waste, fraud, and abuse. 

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

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

include several provisions requiring the Department of Defense to 

report on various aspects of military construction programs, or to 

provide notification to the Committee when certain actions are 

taken. The Committee also retains prior approval authority for any 

reprogramming of funds exceeding a specific threshold. 

Department of Veterans Affairs (VA).—With the $135,377,850,000 

provided for the VA in this bill and the increase in the number of 

veterans seeking VA medical services, the Committee believes it is 

important to strengthen its tools to monitor spending as well as the 

skills and operating procedures of the VA workforce. The following 

initiatives demonstrate the Committee’s oversight focus: 

Reprogramming requirements and notification of change in use of 

funds.—To address the problem that occurred in the fiscal year 

2013 budget, when the Committee learned that new model estimates dramatically lowered the funding requirements for medical 

care, the Committee proposes bill language requiring the VA to notify the Congress by July 31st of each year of any significant 

changes in resource needs. This notification would permit the Congress to adjust funding, if appropriate, in conference deliberations. 

In addition, to ensure that the Committee is informed of and approves of changes in planned uses of medical services funds, the 

bill creates a reprogramming requirement for significant changes 

in funding of non-model initiatives. 

Excessive overhead in medical services funding.—The Committee 

has heard concerns from numerous Members that the VA retains 

too much of the funding provided by Congress at headquarters and 

at the regional health networks instead of allowing it to flow 

through to the medical centers. The Committee is investigating the 

allocation process VA uses, mandating that VA provide information 

annually identifying the use of all funding retained at headquarters, as well as the funding retained by each network and for 

which purposes. In addition, the Committee is requesting regular 

budget information to better identify administrative expenses that 

are hidden in medical services appropriations. 


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Stricter control of construction funding.—Funds for major construction projects are currently made available until expended. Billions of dollars for these projects remain unobligated for years at 

a time as VA completes designs, negotiates with contractors, and 

complies with local, State, and Federal paperwork. The Committee 

has included language limiting the availability of these funds to 

five years, which is the same period of time the Committee makes 

Military Construction funding available. The Committee expects 

that this limitation will force modifications to the VA construction 

process and generate more efficient construction that will better 

serve veterans. 

Bid savings control.—In the past, the VA has had considerable 

flexibility in allocating funding for major construction projects. 

Once funding was appropriated for a particular construction 

project, the Committee received little or no useful information 

about the ongoing status of the project, including whether any bid 

savings have been realized by the VA when contracts were awarded. The Committee continues bill language first adopted last year 

requiring the VA to notify the Committee of all bid savings totaling 

$5,000,000 or more, or five percent, whichever is less, within 14 

days of the contract, as well as the proposed use of the funds. Additionally, the VA is not permitted to make any change in the scope 

of major construction projects. 

Disability claims backlog reduction.—The Department’s annual 

claims receipts are expected to reach 1,250,000 in 2013, an increase 

of almost 60 percent since 2005. Claims are also becoming more 

complex, with a higher number of disabling conditions claimed. To 

address the mounting workload, the Department has set as a strategic goal that no claim will be more than 125 days old in 2015. 

Deploying leading-edge, powerful 21st century information technology solutions to create a smart, paperless claims system which 

simplifies and improves claims processing for timely and accurate 

decisions the first time is key to achieving this goal, and the Committee has provided the funding necessary to develop these IT and 

business process solutions. 

Oversight of conference expenses.—In response to recent reports 

of lavish spending at another executive branch agency on off-site 

staff conferences, the Committee requests the Office of Inspector 

General to conduct a review of the policies and controls in place at 

the VA to manage costs associated with agency conferences, as well 

as any vulnerabilities in such policies. 

TITLE I 

DEPARTMENT OF DEFENSE 

MILITARY CONSTRUCTION OVERVIEW

Fiscal year 2012 enacted level (including rescissions) .................... $13,049,647,000 

Fiscal year 2013 budget request ....................................................... 11,222,710,000 

Committee recommendation in the bill (including rescissions) ...... 10,649,317,000 

Comparison with: 

Fiscal year 2012 enacted level ................................................... (2,400,330,000) 

Fiscal year 2013 budget request ................................................ (573,393,000) 

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


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

housing, utilities infrastructure, and land acquisition. 

The Committee recommends a total appropriation of 

$10,649,317,000 for Military Construction, a decrease of 

$2,400,330,000 from the fiscal year 2012 enacted level and a decrease of $573,393,000 below the budget request. 

Reprogramming Guidelines.—The following reprogramming 

guidelines apply for all military construction and family housing 

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

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

The reprogramming criteria that apply to military construction 

projects (25 percent of the funded amount or $2,000,000, whichever 

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

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

delay, the costs associated with environmental hazard remediation 

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

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

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

also be excluded from these guidelines. In instances where prior 

approval to a reprogramming request for a project or account has 

been received from the Committees on Appropriations of both 

Houses of Congress, the adjusted amount approved becomes the 

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

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

In addition to these guidelines, the services are directed to adhere to the guidance for military construction reprogramming actions and notifications, including the pertinent statutory authorities contained in Department of Defense Financial Management 

Regulation 7000.14–R and relevant updates and policy memoranda. 

The Committee further encourages the Office of the Director of National Intelligence to use a format similar to that used by the Office 

of the Secretary of Defense to submit reprogramming requests. 

Facilities Sustainment, Restoration and Modernization 

(FSRM).—The Department of Defense is directed to continue describing on form 1390 the backlog of FSRM requirements at installations with future construction projects. For troop housing requests, form 1391 should describe any FSRM conducted in the past 

two years. Likewise, future requirements for unaccompanied housing at the corresponding installation should be included. Additionally, the forms should include English equivalent measurements for 

projects presented in metric measurement. Rules for funding reVerDate Mar 15 2010 02:05 May 24, 2012 Jkt 074225 PO 00000 Frm 00014 Fmt 6659 Sfmt 6602 E:\HR\OC\HR491.XXX HR491

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pairs of facilities under the Operation and Maintenance accounts 

are described below: 

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

codes; 

(2) interior arrangements and restorations may be included 

as repair; 

(3) additions, new facilities, and functional conversions must 

be performed as military construction projects. Such projects 

may be done concurrently with repair projects as long as the 

final conjunctively funded project is a complete and usable facility; and 

(4) the appropriate service secretary shall notify the appropriate committees 21 days prior to carrying out any repair 

project with an estimated cost in excess of $7,500,000. The 

Committee strongly encourages the services and defense agencies to indicate the plant replacement value of the facility to 

be repaired on each such notification. 

Quarterly summary of notifications.—The Committee directs the 

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

itself and defense agencies) to continue to submit a quarterly report listing all notifications that have been submitted to the Committees during the preceding three-month period. 

Transfer of funds to and from the Foreign Currency Fluctuations, 

Construction, Defense account.—The Committee directs the Department of Defense to submit a quarterly report to the Committees on 

Appropriations of both Houses of Congress on the transfer of funds 

from military construction and family housing accounts to the Foreign Currency Fluctuations, Construction, Defense account. The report shall specify the amount transferred to the Foreign Currency 

account from each military construction and/or family housing account, and all other accounts for which an appropriation is provided in this Act, during the preceding fiscal quarter, and the 

amounts transferred from the Foreign Currency account to the 

above accounts during the same period. This report shall be submitted no later than 30 days after the close of each fiscal quarter. 

In addition, the Department of Defense shall notify the Committees 

on Appropriations of both Houses of Congress within 7 days of 

transferring any amount in excess of $10,000,000 to or from the 

Foreign Currency account. 

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

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

highlight the differences and inequities among various state public 

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

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

2008 Quadrennial Review of Military Compensation (Volume II: 

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

should be allowed to start charter schools at military installations 

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

law.’’ While there is nothing that currently prevents such an option—in fact, there are several charters operating on military bases 


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at this time—the Committee looks forward to the upcoming DOD 

Education Activity report to Congress on this topic. The Committee 

notes the QRMC attention to this challenge and supports efforts to 

ensure that military families are aware of opportunities to access 

high quality education for their children. 

Facilities management, life-cycle costs, and construction method 

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

and the execution agents for military construction, principally the 

Army Corps of Engineers and the Naval Facilities Engineering 

Command, to ensure that requests for proposals or qualifications 

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

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

fiber grid precast concrete technology in military construction 

projects. 

The Committee is also concerned by the recent report from the 

Government Accountability Office (GAO–10–436) indicating that 

varying services’ attitudes toward the life-cycle costs of different 

construction methods were based more on pre-formed opinions, personal experiences, and anecdotal evidence rather than quantitative 

information or analyses. The Committee therefore urges DOD and 

the services to conduct further research regarding comparative lifecycle costs for differing types of construction, establish clear goals 

and benchmarks, and ensure these standards are communicated to 

contracting officials. Until such an empirical basis is established, 

the Committee urges DOD and the services to carefully reconsider 

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

standard practices. 

Rebates.—The Department of Defense has been increasing the 

use of green technology to reduce energy consumption on military 

installations. The Committee commends this policy but is concerned that the Department of Defense is not fully utilizing the potential savings and rebates that may be available from the use of 

certain technologies or utilities. The Committee directs the Deputy 

Under Secretary of Defense for Installations and Environment to 

report to the congressional defense committees on the amount of 

rebates the Department has been able to capture. 

Center of Excellence for Research and Graduate-level Studies.— 

The Committee is concerned that Air Force facilities for graduatelevel research have been neglected over the years and funding for 

military construction has been deferred to the out years of budget 

submissions. Many of the research facilities have unsafe and limited lab space, inoperable HVAC systems, outdated plumbing, 

water damage and leaks in the roof. These deplorable working conditions are hindering the personnel conducting research in these facilities. Therefore, the Committee urges the Deputy Under Secretary for Installations and Environment to assess these aging facilities, how they are prioritized for funding and request funding in 

earlier fiscal years. 


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Increased Fuel and Training Efficiency.—The Committee is 

aware of proposals by the Department of Defense to use military 

construction funding to construct specialized training runways near 

existing aircraft locations. By constructing these specialized runways, the Department of Defense will save taxpayer dollars by decreasing the amount of transient flight hours required for aircraft 

to reach their training locations. Therefore, the Committee urges 

the Deputy Under Secretary for Installations and Environment to 

conduct a cost-benefit analysis regarding the construction of specialized training runways near existing aircraft locations and report back to the Committee within 180 days of enactment of this 

Act. 

Maintenance of Aircraft Hangars.—The Committee recognizes 

the strategic importance of the Air National Guard components of 

the Aerospace Control Alert (ACA) mission and their role in our 

country’s homeland defense. The Committee urges the Secretary of 

the Air Force to reprioritize its investments and place the maintenance facilities for legacy F–16 fighter aircraft with ACA missions 

that are responsible for high-value metropolitan areas at the top of 

the military construction list. 

Bid savings.—The Committee has ascertained from cost variation 

notices required by 10 U.S.C. 2853 that the Department of Defense 

continues to have bid savings on previously appropriated military 

construction projects. Although the Committee’s recommendation 

does not include rescissions to the Army, Navy, Air Force and Defense-Wide military construction accounts as a result of bid savings, the Committee directs the Secretary of Defense to submit 

quarterly reports on military construction bid savings. 

Incremental funding.—The Committee has stated repeatedly that 

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

phases where practicable, incremental funding should remain an 

option when it makes fiscal and programmatic sense. In some 

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

will continue to exercise its prerogative to recommend incremental 

funding when circumstances dictate. The Committee therefore recommends incremental funding for the Aegis Ashore Missile Defense 

System Complex in Romania. 

LED lighting technologies.—The Committee understands that the 

use of LED lighting technology at military facilities has demonstrated substantial energy efficiencies and cost savings. However, the Committee is aware that LED lighting products of inferior 

quality were used at some facilities and installations and has resulted in those locations failing to achieve expected efficiencies. In 

some instances, this has led to policies prohibiting the use of this 

technology. Accordingly, the Committee directs the Deputy Under 

Secretary of Defense for Installations and Environment to establish 

minimum quality standards for the use of LED lighting products 

at Department of Defense installations and facilities. The standards should take into consideration Energy Star ratings and/or the 

Design Light Consortium lighting product recommendations. 

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


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installations. The Committee also encourages the Department of 

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

Sustainable Buildings Policy.—The Committee supports the Department of Defense’s commitment to green buildings, and its goal 

to promote cost-effective sustainability. However the Committee is 

concerned that the Department of Defense’s current approach to 

sustainable construction appears to select one green building certification system over others, particularly for wood products. The 

Committee expects the Department to ensure equal acceptance of 

forestry certification systems, and that systems designated as 

American National Standards are allowed to compete equally for 

use in the Department of Defense’s building construction and major 

renovations while continuing to follow existing Buy America requirements. The Committee also strongly urges the Department of 

Defense to incorporate in its Sustainable Buildings Policy energy 

efficiency standards that are cost-effective, incorporate Energy Star 

components, and the results of life cycle assessments. The Committee directs the Deputy Under Secretary of Defense for Installations and Environment to provide a report to the congressional defense committees on the Department’s efforts not later than 90 

days after enactment of this Act. 

Energy security.—The Committee strongly supports Department 

of Defense efforts to reduce costs and increase energy security 

through their investments in alternative energy sources. The reliance on oil for forward-deployed operations leaves the military vulnerable to supply shortages, attacks on fuel convoys, and volatile 

swings in the cost of petroleum. The Committee recognizes that investments in clean alternative energy sources will make our nation 

more secure and result in significant long term energy savings. 

Therefore, the Committee directs the Department of Defense, as a 

follow up to the Operational Energy Strategy Implementation Plan 

released on March 6, 2012, to report to the congressional defense 

committees on how energy efficient construction on military installations will lower operation and maintenance costs. This report 

shall be submitted within 90 days of enactment of this Act. 

Military Construction Project Delivery.—The Committee is aware 

that the design-build project delivery method is conducted under 

one guaranteed contract, offers fast track aspects, cost savings, and 

decreased litigation claims. The Design-Build method reduces construction costs, speeds up construction time and guarantees quality 

in all measured categories. Therefore, the Committee encourages 

the use of this method, when appropriate, in order to provide greater efficiency, lower life cycle costs, and expedite construction, repairs and alterations of Federal buildings. 

Contract Structures and Management.—The Committee believes 

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

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

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

structures used by the Department for its construction programs. 


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

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

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

Foreign Materiel Exploitation Labs.—The Committee is concerned that Department of Defense intelligence facilities that serve 

multiple agencies and our allies have been neglected over the years 

and funding for military construction has been deferred to the out 

years of budget submissions. Many of the labs are deteriorating, in 

temporary facilities, and lack appropriate space. Therefore, the 

Committee urges the Deputy Under Secretary for Installations and 

Environment to assess these aging lab facilities, reassess the funding priorities for these facilities and request funding in earlier fiscal years. To address the alarming threats faced by the United 

States, the Committee urges the Deputy Under Secretary to 

prioritize funding for these facilities in a much more timely manner. The Committee believes that these facilities are valuable national security assets that the Department of Defense should maintain in a manner that will ensure their vital role in protecting U.S. 

national security interests. 

MILITARY CONSTRUCTION, ARMY

Fiscal year 2012 enacted level ........................................................... $3,006,491,000 

Fiscal year 2013 budget request ....................................................... 1,923,323,000 

Committee recommendation in the bill ............................................ 1,820,323,000 

Comparison with: 

Fiscal year 2012 enacted level ................................................... (1,186,168,000) 

Fiscal year 2013 budget request ................................................ (103,000,000) 

The Committee recommends an appropriation of $1,820,323,000 

for Military Construction, Army, a decrease of $1,186,168,000 from 

the fiscal year 2012 enacted level and a decrease of $103,000,000 

below the budget request. 

The Committee recommendation does not include $103,000,000 

as requested by the Administration in title I for the cemetery expansion Millennium Project. The funds are instead provided in title 

III of this Act under Cemeterial Expenses, Army. 

MILITARY CONSTRUCTION, NAVY AND MARINE CORPS

Fiscal year 2012 enacted level ........................................................... $2,112,823,000 

Fiscal year 2013 budget request ....................................................... 1,701,985,000 

Committee recommendation in the bill ............................................ 1,551,217,000 

Comparison with: 

Fiscal year 2012 enacted level ................................................... (561,606,000) 

Fiscal year 2013 budget request ................................................ (150,768,000) 

The Committee recommends an appropriation of $1,551,217,000 

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

$561,606,000 from the fiscal year 2012 enacted level and a decrease 

of $150,768,000 below the budget request. 

The Committee recommendation transfers six projects totaling 

$150,768,000 from Military Construction, Navy and Marine Corps 

in title I to title IV. 


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MILITARY CONSTRUCTION, AIR FORCE

Fiscal year 2012 enacted level ........................................................... $1,227,058,000 

Fiscal year 2013 budget request ....................................................... 388,200,000 

Committee recommendation in the bill ............................................ 388,200,000 

Comparison with: 

Fiscal year 2012 enacted level ................................................... (838,858,000) 

Fiscal year 2013 budget request ................................................ – – – 

The Committee recommends an appropriation of $388,200,000 for Military Construction, Air Force, a decrease of $838,858,000 below 

the fiscal year 2012 enacted level and the same as the budget request. 

MILITARY CONSTRUCTION, DEFENSE-WIDE

(INCLUDING TRANSFER OF FUNDS AND RESCISSION)

Fiscal year 2012 enacted level ........................................................... $3,431,957,000 

Fiscal year 2013 budget request ....................................................... 3,654,623,000 

Committee recommendation in the bill ............................................ 3,549,623,000 

Comparison with: 

Fiscal year 2012 enacted level ................................................... 117,666,000 

Fiscal year 2013 budget request ................................................ (105,000,000) 

The Committee recommends an appropriation of $3,569,623,000 

for Military Construction, Defense-Wide, an increase of 

$117,666,000 above the fiscal year 2012 enacted level and a decrease of $105,000,000 below the budget request. 

The Committee recommendation includes a reduction to the 

Aegis Ashore Missile Defense System Complex in Romania of 

$75,000,000 and a reduction to contingency construction of 

$10,000,000. The Committee recommendation also includes a rescission from prior year unobligated balances in contingency construction under Administrative Provisions of title I. 

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

to such appropriations of the Department of Defense available for 

military construction or family housing as the Secretary may designate. 

DODEA School Construction.—The Committee fully supports the 

fiscal year 2013 request for the construction of 10 schools in the 

United States and overseas. The Committee however, is concerned 

that the changes that are occurring across the Department of Defense associated with force structure reductions may impact whether funding is needed if an installation is determined not to be an 

enduring installation. The Committee therefore directs the Director 

of the Department of Defense Education Activity (DODEA) to report on the status of DODEA funding and provide by location any 

funding that has been placed on hold for any reason to the congressional defense committees 90 days after enactment of this Act. 

Energy Conservation Investment Program.—The Committee believes that as new construction and retrofit projects are undertaken 

at facilities to improve building energy efficiency and achieve the 

objectives prescribed in statutes, executive orders, and initiatives, 

the Department of Defense is encouraged to utilize new and underutilized, low-cost energy efficient technologies that provide the best 

value to taxpayers through minimal lifecycle costs. The Deputy 

Under Secretary for Installations and Environment shall report to 

the congressional defense committees on the Department’s plan to 


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implement these technologies across the Department of Defense 

within 60 days of enactment of this Act. 

The Committee has been in the forefront of ensuring that our 

military beneficiaries are provided ‘‘world class’’ medical facilities 

as a result of the fiscal year 2005 BRAC consolidation of Walter 

Reed Army Medical Center (WRAMC) and the National Naval 

Medical Center (NNMC). The Committee would observe that the 

new community hospital at Fort Belvoir meets the expectation of 

a ‘‘world class’’ facility however the Committee is disappointed in 

some of the facilities at Walter Reed National Military Medical 

Center. A most notable deficiency is the 3rd floor of Building 19 

where the various cancer clinics are located as well as the chemotherapy treatment area. These facilities are nowhere close to being 

equal to the facilities at the old Walter Reed Army Medical Center. 

The Committee notes that the waiting areas and treatment areas 

are impersonal and not ‘‘patient friendly,’’ and thus are not conducive to a positive healing environment. In addition, there are insufficient facilities for patients undergoing chemotherapy treatment. 

The Committee is aware that there are unobligated balances available in the BRAC 2005 account, and strongly encourages the Department of Defense to reprogram sufficient funds to correct these 

deficiencies. 

MILITARY CONSTRUCTION, ARMY NATIONAL GUARD

Fiscal year 2012 enacted level ........................................................... $773,592,000 

Fiscal year 2013 budget request ....................................................... 613,799,000 

Committee recommendation in the bill ............................................ 613,799,000 

Comparison with: 

Fiscal year 2012 enacted level ................................................... (159,793,000) 

Fiscal year 2013 budget request ................................................ – – – 

The Committee recommends an appropriation of $613,799,000 for 

Military Construction, Army National Guard, a decrease of 

$159,793,000 from the fiscal year 2012 enacted level and the same 

as the budget request. 

Enforcement of Border Security.—Recognizing the need to bolster 

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

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

house and support defense assets used by Customs and Border Protection and other law enforcement agencies for the terrestrial, maritime, and aerial surveillance of those borders, to include aircraft 

hangars suitable for unmanned aerial systems. 

MILITARY CONSTRUCTION, AIR NATIONAL GUARD

Fiscal year 2012 enacted level ........................................................... $116,246,000 

Fiscal year 2013 budget request ....................................................... 42,386,000 

Committee recommendation in the bill ............................................ 42,386,000 

Comparison with: 

Fiscal year 2012 enacted level ................................................... (73,860,000) 

Fiscal year 2013 budget request ................................................ – – – 

The Committee recommends an appropriation of $42,386,000 for 

Military Construction, Air National Guard, a decrease of 

$73,860,000 below the fiscal year 2012 enacted level and the same 

as the budget request. 


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MILITARY CONSTRUCTION, ARMY RESERVE

Fiscal year 2012 enacted level ........................................................... $280,549,000 

Fiscal year 2013 budget request ....................................................... 305,846,000 

Committee recommendation in the bill ............................................ 305,846,000 

Comparison with: 

Fiscal year 2012 enacted level ................................................... 25,297,000 

Fiscal year 2013 budget request ................................................ – – – 

The Committee recommends an appropriation of $305,846,000 for 

Military Construction, Army Reserve, an increase of $25,297,000 

above the fiscal year 2012 enacted level and the same as the budget request. 

Consolidation of Mission Function.—The Committee supports 

Army Reserve efforts to reduce costs and strengthen command and 

control through consolidated regional reserve facilities such as the 

Army Reserve Center in Worcester, MA, which had been identified 

for a Real Property Exchange by the United States government. 

The Committee supports this consolidation and is disappointed 

that no action has been taken. Since it is the Department’s intention to consolidate mission function and expenditures where appropriate, the Committee remains interested in consolidation within 

this region, given the excess mission capacity. The Committee 

therefore urges the Secretary of the Army to identify a suitable and 

comparable site for relocation of all personnel and operations that 

are currently aligned with the existing Army Reserve Center and 

report on any actions taken within 30 days of enactment this Act. 

MILITARY CONSTRUCTION, NAVY RESERVE

Fiscal year 2012 enacted level ........................................................... $26,299,000 

Fiscal year 2013 budget request ....................................................... 49,532,000 

Committee recommendation in the bill ............................................ 49,532,000 

Comparison with: 

Fiscal year 2012 enacted level ................................................... 23,233,000 

Fiscal year 2013 budget request ................................................ – – – 

The Committee recommends an appropriation of $49,532,000 for 

Military Construction, Navy Reserve, an increase of $23,233,000 

above the fiscal year 2012 enacted level and the same as the budget request. 

MILITARY CONSTRUCTION, AIR FORCE RESERVE

Fiscal year 2012 enacted level ........................................................... $33,620,000 

Fiscal year 2013 budget request ....................................................... 10,979,000 

Committee recommendation in the bill ............................................ 10,979,000 

Comparison with: 

Fiscal year 2012 enacted level ................................................... (22,641,000) 

Fiscal year 2013 budget request ................................................ – – – 

The Committee recommends an appropriation of $10,979,000 for 

Military Construction, Air Force Reserve, a decrease of $22,641,000 

below the fiscal year 2012 enacted level and the same as the budget request. 


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NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT

PROGRAM

Fiscal year 2012 enacted level ........................................................... $247,611,000 

Fiscal year 2013 budget request ....................................................... 254,163,000 

Committee recommendation in the bill ............................................ 254,163,000 

Comparison with: 

Fiscal year 2012 enacted level ................................................... 6,552,000 

Fiscal year 2013 budget request ................................................ – – – 

The North Atlantic Treaty Organization Security Investment 

Program (NSIP) consists of annual contributions by NATO member 

countries. The program finances the costs of construction needed to 

support the roles of the major NATO commands. The investments 

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

communications and information systems, radar and navigational 

aids, and military headquarters, both within NATO nations and for 

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

The Committee recommends an appropriation of $254,163,000 for 

NSIP, an increase of $6,552,000 above the fiscal year 2012 enacted 

level and the same as the budget request. 

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

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

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

delay the authorization of projects, or to temporarily withhold 

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

obligation authority. 

FAMILY HOUSING OVERVIEW

Fiscal year 2012 enacted level ........................................................... $1,682,946,000 

Fiscal year 2013 budget request ....................................................... 1,650,781,000 

Committee recommendation in the bill ............................................ 1,650,781,000 

Comparison with: 

Fiscal year 2012 enacted level ................................................... (32,165,000) 

Fiscal year 2013 budget request ................................................ – – – 

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

costs for family housing privatization projects, and planning and 

design. The operation and maintenance accounts provide funds to 

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

The Committee recommends a total appropriation of 

$1,650,781,000 for family housing construction, family housing operation and maintenance, and the homeowners assistance program, 

a decrease of $32,165,000 below the fiscal year 2012 enacted level 

and the same as the budget request. The decrease below the 2012 

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

in implementing the Military Housing Privatization Initiative on 

military installations and the reduced requirement for appropriated 

construction and operating costs. The Committee encourages the 

Department, where feasible, to utilize energy efficient, environmentally friendly, and easily deployable composite building materials in new family housing construction. 

Family housing privatization progress reports.—The Committee 

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nual progress reports on the family housing privatization program, 

including a breakout of military tenant satisfaction rates by 

project. 

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

directed to report to the Committees on Appropriations of both 

Houses of Congress on how these savings are allocated 90 days 

after enactment of this Act. In addition, the Committee directs the 

services and Defense agencies to notify the Committees on Appropriations of both Houses of Congress within 30 days of a transfer 

of funds between sub-accounts within the family housing construction and family housing operation and maintenance accounts, if 

such transfer is in excess of 10 percent of the funds appropriated 

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

amounts that are being used to source the transfer. 

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

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

domestic leases entered into during the previous quarter that exceed the cost threshold set by 10 U.S.C. 2828(b)(2), including certification that less expensive housing was not available for lease. 

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

economic analysis on all new leases or lease/contract agreements 

where more than 25 units are involved; (2) report the details of 

new or renewed lease agreements that exceed the cost threshold 

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

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

FAMILY HOUSING CONSTRUCTION, ARMY

Fiscal year 2012 enacted level ........................................................... $176,897,000 

Fiscal year 2013 budget request ....................................................... 4,641,000 

Committee recommendation in the bill ............................................ 4,641,000 

Comparison with: 

Fiscal year 2012 enacted level ................................................... (172,256,000) 

Fiscal year 2013 budget request ................................................ – – – 

The Committee recommends an appropriation of $4,641,000 for Family Housing Construction, Army, a decrease of $172,256,000 

below the fiscal year 2012 enacted level and the same as the budget request. The significant decrease in Army family housing construction is due to all scheduled installations having now been 

privatized through the Residential Community Initiative and the 

Army having met its goal to eliminate those houses originally identified as inadequate. 

FAMILY HOUSING OPERATION AND MAINTENANCE, ARMY

Fiscal year 2012 enacted level ........................................................... $493,458,000 

Fiscal year 2013 budget request ....................................................... 530,051,000 

Committee recommendation in the bill ............................................ 530,051,000 

Comparison with: 

Fiscal year 2012 enacted level ................................................... 36,593,000 

Fiscal year 2013 budget request ................................................ – – – 

The Committee recommends an appropriation of $530,051,000 for 

Family Housing Operation and Maintenance, Army, an increase of 


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$36,593,000 above the fiscal year 2012 enacted level and the same 

as the budget request. 

FAMILY HOUSING CONSTRUCTION, NAVY AND MARINE CORPS

Fiscal year 2012 enacted level ........................................................... $100,972,000 

Fiscal year 2013 budget request ....................................................... 102,182,000 

Committee recommendation in the bill ............................................ 102,182,000 

Comparison with: 

Fiscal year 2012 enacted level ................................................... 1,210,000 

Fiscal year 2013 budget request ................................................ – – – 

The Committee recommends an appropriation of $102,182,000 for 

Family Housing Construction, Navy and Marine Corps, an increase 

of $1,210,000 above the fiscal year 2012 enacted level and the same 

as the budget request. 

FAMILY HOUSING OPERATION AND MAINTENANCE, NAVY AND

MARINE CORPS

Fiscal year 2012 enacted level ........................................................... $367,863,000 

Fiscal year 2013 budget request ....................................................... 378,230,000 

Committee recommendation in the bill ............................................ 378,230,000 

Comparison with: 

Fiscal year 2012 enacted level ................................................... 10,367,000 

Fiscal year 2013 budget request ................................................ – – – 

The Committee recommends an appropriation of $378,230,000 for 

Family Housing Operation and Maintenance, Navy and Marine 

Corps, an increase of $10,367,000 above the fiscal year 2012 enacted level and the same as the budget request. 

FAMILY HOUSING CONSTRUCTION, AIR FORCE

Fiscal year 2012 enacted level ........................................................... $60,042,000 

Fiscal year 2013 budget request ....................................................... 83,824,000 

Committee recommendation in the bill ............................................ 83,824,000 

Comparison with: 

Fiscal year 2012 enacted level ................................................... 23,782,000 

Fiscal year 2013 budget request ................................................ – – – 

The Committee recommends an appropriation of $83,824,000 for Family Housing Construction, Air Force, an increase of $23,782,000 

above the fiscal year 2012 enacted level and the same as the budget request. The increase in fiscal year 2013 is due to a funding adjustment, requested by the Air Force in fiscal year 2012 to cover 

an anticipated shortfall in family housing operation and maintenance funding. 

FAMILY HOUSING OPERATION AND MAINTENANCE, AIR FORCE

Fiscal year 2012 enacted level ........................................................... $429,523,000 

Fiscal year 2013 budget request ....................................................... 497,829,000 

Committee recommendation in the bill ............................................ 497,829,000 

Comparison with: 

Fiscal year 2012 enacted level ................................................... 68,306,000 

Fiscal year 2013 budget request ................................................ – – – 

The Committee recommends an appropriation of $497,829,000 for 

Family Housing Operation and Maintenance, Air Force, an increase of $68,309,000 above the fiscal year 2012 enacted level and 

the same as the budget request. 


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FAMILY HOUSING OPERATION AND MAINTENANCE, DEFENSE-WIDE

Fiscal year 2012 enacted level ........................................................... $50,723,000 

Fiscal year 2013 budget request ....................................................... 52,238,000 

Committee recommendation in the bill ............................................ 52,238,000 

Comparison with: 

Fiscal year 2012 enacted level ................................................... 1,515,000 

Fiscal year 2013 budget request ................................................ – – – 

The Committee recommends an appropriation of $52,238,000 for 

Family Housing Operation and Maintenance, Defense-Wide, an increase of $1,515,000 above the fiscal year 2012 enacted level and 

the same as the budget request. 

DEPARTMENT OF DEFENSE FAMILY HOUSING IMPROVEMENT FUND

Fiscal year 2012 enacted level ........................................................... $2,184,000 

Fiscal year 2013 budget request ....................................................... 1,786,000 

Committee recommendation in the bill ............................................ 1,786,000 

Comparison with: 

Fiscal year 2012 enacted level ................................................... (398,000) 

Fiscal year 2013 budget request ................................................ – – – 

The Family Housing Improvement Fund (FHIF) is authorized by 

section 2883, title 10, United States Code, and provides the Department of Defense with authority to finance joint ventures with the 

private sector to revitalize and to manage the Department’s housing inventory. The statute authorizes the Department to use limited partnerships, make direct and guaranteed loans, and convey 

Department-owned property to stimulate the private sector to increase the availability of affordable, quality housing for military 

personnel. 

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

various legal authorities, and by utilizing private capital and expertise to the maximum extent possible. The fund is administered as 

a single account without fiscal year limitations and contains directly appropriated and transferred funds from family housing construction accounts. 

The Committee recommends an appropriation of $1,786,000 for 

the Department of Defense Family Housing Improvement Fund, a 

decrease of $398,000 below the fiscal year 2012 enacted level and 

the same as the budget request. 

Family Housing Improvement Fund.—The Committee was made 

aware during budget briefings that the Navy’s fiscal year 2013 

budget submission for Family housing contained a request to privatize 870 units however the budget submission only included 

funding for 614 units. The Navy requested language allowing the 

transfer of credited funds from Navy land conveyances in the Family Housing Improvement Fund to eliminate the shortfall. Therefore, the recommendation includes an Administrative Provision 

(Section 130) in title I allowing the transfer of $10,500,000 by the 

Secretary of Defense to the Secretary of the Navy to alleviate this 

requirement as requested by the Navy. 


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HOMEOWNERS ASSISTANCE FUND

Fiscal year 2012 enacted level ........................................................... $1,284,000 

Fiscal year 2013 budget request ....................................................... – – – 

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

Comparison with: 

Fiscal year 2012 enacted level ................................................... (1,284,000) 

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

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

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

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

housing crisis and the permanent extension of benefits to wounded 

warriors and surviving spouses. This non-expiring revolving fund 

receives funding from several sources, including appropriations, 

borrowing authority, reimbursable authority, prior fiscal year unobligated balances, appropriation transfers, revenue from the sale of 

acquired properties, and recovery of prior year obligations. 

The Committee recommends no appropriation for the Department of Defense Homeowners Assistance Fund in fiscal year 2013, 

the same as the budget request. 

CHEMICAL DEMILITARIZATION CONSTRUCTION, DEFENSE-WIDE

Fiscal year 2012 enacted level ........................................................... $75,312,000 

Fiscal year 2013 budget request ....................................................... 151,000,000 

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

Comparison with: 

Fiscal year 2012 enacted level ................................................... 75,688,000 

Fiscal year 2013 budget request ................................................ – – – 

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

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

the Chemical Demilitarization program. 

The Committee recommends an appropriation of $151,000,000 for 

Chemical Demilitarization Construction, Defense-Wide, an increase 

of $75,688,000 above the fiscal year 2012 enacted level and the 

same as the budget request. 

BASE REALIGNMENT AND CLOSURE ACCOUNT 1990 

Fiscal year 2012 enacted level ........................................................... $323,543,000 

Fiscal year 2013 budget request ....................................................... 349,396,000 

Committee recommendation in the bill ............................................ 349,396,000 

Comparison with: 

Fiscal year 2012 enacted level ................................................... 25,853,000 

Fiscal year 2013 budget request ................................................ – – – 

The Committee recommends an appropriation of $349,396,000 for 

the Base Realignment and Closure Account 1990, the same as the 

fiscal year 2013 budget request. 


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BASE REALIGNMENT AND CLOSURE ACCOUNT 2005 

Fiscal year 2012 enacted level ........................................................... $258,776,000 

Fiscal year 2013 budget request ....................................................... 126,697,000 

Committee recommendation in the bill ............................................ 126,697,000 

Comparison with: 

Fiscal year 2012 enacted level ................................................... (132,079,000) 

Fiscal year 2013 budget request ................................................ ............................

The Committee recommends an appropriation of $126,697,000 for 

the Base Realignment and Closure Account 2005, a decrease of 

$132,079,000 below the fiscal year 2012 enacted level and the same 

as the fiscal year 2012 budget request. This funding supports the 

most recent base realignment and closure round which affected 

over 800 installations and locations through 24 major closures, 24 

major realignments, and 765 other actions. This funding is requested for non-constructed related actions. 

Base Realignment and Closure 2005.—The committee recommendation continues to carry a parking limitation for Base Closure and Realignment (BRAC) recommendation #133 (Mark Center). The Committee believes that carrying this provision will continue to mitigate traffic congestion surrounding the Mark Center 

site. Specifically, the Committee recommendation includes a limitation on the number of parking spaces the Department may utilize 

at the Mark Center to no more than 2,000, with the exception of 

disabled parking spaces. The limitation may be waived in part, but 

not in whole, if the Secretary of Defense certifies that none of the 

intersections surrounding the Mark Center reach failing levels of 

service ‘‘e’’ or ‘‘f,’’ as defined by the Transportation Research Board 

Highway Capacity Manual, during a consecutive 90-day period or 

the Department of Defense and the Virginia Department of Transportation agree on the number of additional parking spaces that 

may be made available to employees of the facility subject to continued 90-day traffic monitoring. The Committee continues to 

strongly encourage the Department of Defense to examine mandatory commuting alternatives such as telework, flexible work schedules, satellite parking facilities with dedicated shuttle service to 

the Mark Center, parking capacity at the Pentagon, additional 

ridesharing and public transit incentives and all other means to ensure that Mark Center employees can commute to and from work 

without undue burden. 

Base Realignment and Closure 2005 Remediation Agreements.— 

The Committee commends the Deputy Under Secretary of Defense 

for Installations and Environment and the Department of the Army 

for their willingness to work with other governmental agencies to 

facilitate private sector growth and government efficiency. The 

Committee understands from reports by the Department of the 

Army that additional requirements are being imposed on some of 

the cleanup efforts in States. The Department of the Army has indicated that additional requirements in the remediation of land in 

closures threaten to delay land transfer and therefore increase expenses beyond the original project scope. 

Therefore, the Committee believes the Deputy Under Secretary 

of Defense for Installations and Environment and the Environmental Protection Agency should continue to work to reach remediation agreements with standards allowed under current BRAC law. 

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eral to review BRAC 2005 closures and report to the congressional 

defense committees on additional issues that delayed land transfer 

and increased costs to the Department of Defense 180 days after 

enactment of this Act. 

ADMINISTRATIVE PROVISIONS

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

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

The bill includes section 102 permitting the use of construction 

funds for the hire of passenger motor vehicles. 

The bill includes section 103 permitting funds to be expended on 

the construction of defense access roads under certain circumstances. 

The bill includes section 104 prohibiting construction of new 

bases in the United States without a specific appropriation. 

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

purchase of land or land easements that exceed 100 percent of 

value except under certain conditions. 

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

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

without prior notification. 

The bill includes section 108 prohibiting the procurement of steel 

unless American producers, fabricators, and manufacturers have 

been allowed to compete. 

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

real property taxes in foreign nations. 

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

The bill includes section 111 establishing a preference for United 

States architectural and engineering services where the services 

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

Arabian Sea within the Central Command area of responsibility. 

The bill includes section 112 establishing a preference for United 

States contractors for military construction in the United States 

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

countries within the Central Command area of responsibility, except bids by Marshallese contractors for military construction on 

Kwajalein Atoll. 

The bill includes section 113 requiring the Secretary of Defense 

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

The bill includes section 114 allowing funds appropriated in prior 

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

The bill includes section 115 allowing the use of expired or 

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

completed with lapsed funds. 

The bill includes section 116 providing that funds for military 

construction projects are available until the end of the fourth fiscal 

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


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(INCLUDING TRANSFER OF FUNDS)

The bill includes section 117 allowing for the transfer of proceeds 

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

(INCLUDING TRANSFER OF FUNDS)

The bill includes section 118 allowing for the transfer of funds 

from Family Housing Construction accounts to the Department of 

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

Unaccompanied Housing Improvement Fund. 

(INCLUDING TRANSFER OF FUNDS)

The bill includes section 119 providing transfer authority to the 

Homeowners Assistance Program. 

The bill includes section 120 requiring that funds in this title be 

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

to $35,000 per year without notification. 

The bill includes section 121 making funds in the Ford Island 

Improvement Fund available until expended. 

The bill includes section 122 prohibiting the use of funds for military construction, family housing, or land acquisition projects at installations closed or realigned under BRAC, except under certain 

conditions. 

(INCLUDING TRANSFER OF FUNDS)

The bill includes section 123 allowing the transfer of expired 

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

The bill includes section 124 prohibiting the number of parking 

spaces available for use. 

The bill includes section 125 prohibiting the use of funds for any 

action related to the expansion of Pinon Canyon Maneuver Site, 

Colorado. 

The bill includes section 126 prohibiting the use of funds to relocate a unit of the Army that would impact more than 200 personnel. 

(RESCISSION)

The bill includes section 127 rescinding funds from prior appropriations Acts. 

(RESCISSION)

The bill includes section 128 rescinding funds from prior appropriations for the BRAC 2005 account. 

The bill includes section 129 reducing the civilian pay raise. 

(INCLUDING TRANSFER OF FUNDS)

The bill includes section 130 allowing the transfer of funds to the 

Secretary of the Navy from the Family Housing Improvement Fund 

as requested by the Navy. 


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The bill does not include section 121 as requested to provide authority to obligate funds provided in military construction Army for 

Arlington Cemetery. 

The bill does not include section 122 as requested to provide authority under a continuing resolution when an authorization bill 

has been enacted to obligate funds that have not been appropriated. 

TITLE II 

DEPARTMENT OF VETERANS AFFAIRS 

Fiscal year 2012 enacted level 1 ................................................ $122,226,272,000 

Fiscal year 2013 budget request 1 ............................................. 135,636,648,000 

Committee recommendation in the bill 1 .................................. 135,377,850,000 

Comparison with: 

Fiscal year 2012 enacted level ........................................... 13,151,578,000 

Fiscal year 2013 budget request ........................................ (258,798,000) 

Fiscal year 2014 advance budget request 1 .............................. 54,462,000,000 

Fiscal year 2014 Committee recommendation in the bill 1 ..... 54,462,000,000 1 All funding cited excludes amounts in the Medical Care Collections Fund. 

The Department of Veterans Affairs (VA) serves nearly 

58,000,000 people: 22,200,000 veterans and 35,500,000 family 

members of living veterans or survivors of deceased veterans. This 

group constitutes 18 percent of the United States population. To 

serve adequately the nation’s veterans, the VA employs 302,000 

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

employment. The Committee recommends a total of $135,377,850,000 in budget authority for programs in fiscal year 2013, an increase of 

$13,151,578,000 or 10.8 percent above the fiscal year 2012 enacted 

level and $258,798,000 below the budget request. In addition, advance appropriations of $54,462,000,000 are provided for fiscal year 

2014. Consistent with H. Con. Res. 112, the House-passed fiscal 

year 2013 budget resolution, the Committee does not provide funding for the 0.5 percent Federal employee pay raise assumed in the 

VA budget request, as implemented in sections 231 and 232 of the 

bill. 

VETERANS BENEFITS ADMINISTRATION

COMPENSATION AND PENSIONS

(INCLUDING TRANSFER OF FUNDS)

Fiscal year 2012 enacted level ........................................................... $51,237,567,000 

Fiscal year 2013 budget request ....................................................... 61,741,232,000 

Committee recommendation in the bill ............................................ 61,741,232,000 

Comparison with: 

Fiscal year 2012 enacted level ................................................... 10,503,665,000 

Fiscal year 2013 budget request ................................................ – – – 

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

and dependents. In addition, pension payments are funded for 

520,000 veterans and their survivors. The average cost per compensation case for veterans in 2013 is estimated at $14,862, and 

pension payments are projected at a unit cost of $9,465. 

The Committee recommends an appropriation of $61,741,232,000 

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


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32 

$10,503,665,000 above the fiscal year 2012 enacted level and the 

same as the budget request. 

The appropriation includes authority to transfer funding not to exceed $9,204,000, of which $9,059,000 is for the General Operating Expenses, Veterans Benefit Administration account and 

$145,000 is for the Information Technology Systems account. These 

funds are for the administrative expenses of implementing cost-saving provisions required by the Omnibus Budget Reconciliation Act 

of 1990, Public Law 101–508, the Veterans’ Benefits Act of 1992, 

Public Law 102–568, and the Veterans’ Benefits Improvements Act 

of 1994, Public Law 103–446. These cost-saving provisions include 

verifying pension income against Internal Revenue Service (IRS) 

and Social Security Administration (SSA) data; establishing a 

match with the SSA to obtain verification of Social Security numbers; and applying the VA pension cap for Medicaid-eligible single 

veterans and surviving spouses alone in Medicaid-covered nursing 

homes. The bill also continues to include language permitting this 

appropriation to reimburse such sums as may be earned to the 

Medical Care Collections Fund to help defray the operating expenses of individual medical facilities for nursing home care provided to pensioners. 

READJUSTMENT BENEFITS

Fiscal year 2012 enacted level ........................................................... $12,108,488,000 

Fiscal year 2013 budget request ....................................................... 12,607,476,000 

Committee recommendation in the bill ............................................ 12,607,476,000 

Comparison with: 

Fiscal year 2012 enacted level ................................................... 498,988,000 

Fiscal year 2013 budget request ................................................ – – – 

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

All-Volunteer Force Educational Assistance Program. Supplemental 

education benefits are also provided to certain veteran members of 

the Selected Reserve and are funded through transfers from the 

Department of Defense. In addition, certain disabled veterans are 

provided with vocational rehabilitation, specially adapted housing 

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

for eligible dependents of veterans who died from service-connected 

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

as well as dependents of servicemembers who were captured or are 

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

support the Post 9–11 GI Bill. The Committee recommends an appropriation of $12,607,476,000 for Readjustment Benefits, an increase of $498,988,000 above the 

fiscal year 2012 enacted level and the same as the budget request. 

VETERANS INSURANCE AND INDEMNITIES

Fiscal year 2012 enacted level ........................................................... $100,252,000 

Fiscal year 2013 budget request ....................................................... 104,600,000 

Committee recommendation in the bill ............................................ 104,600,000 

Comparison with: 

Fiscal year 2012 enacted level ................................................... 4,348,000 

Fiscal year 2013 budget request ................................................ – – – 

The Veterans Insurance and Indemnities appropriation is made 

up of the former appropriations for military and naval insurance, 

applicable to World War I veterans; national service life insurance 


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

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

received a grant for specially adapted housing. 

The Committee recommends an appropriation of $104,600,000 for 

Veterans Insurance and Indemnities, an increase of $4,348,000 

above the fiscal year 2012 enacted level and the same as the budget request. The amount provided will enable the Department to 

transfer funding to the service-disabled veterans insurance fund 

and transfer additional amounts for payments for policies under 

the veterans mortgage life insurance program. These policies are 

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

VETERANS HOUSING BENEFIT PROGRAM FUND PROGRAM ACCOUNT

Program account 

Limitation on direct loans for specially adapted 

housing loans 

Administrative 

expenses 

Fiscal year 2012 enacted level ........................................................ $318,612,000 $500,000 $154,698,000 

Fiscal year 2013 budget request ..................................................... 184,859,000 500,000 157,814,000 

Committee recommendation in the bill ............................................ 184,859,000 500,000 157,814,000 

Comparison with: 

Fiscal year 2012 enacted level ............................................... (133,753,000) – – – 3,116,000 

Fiscal year 2013 budget request ............................................ – – – – – – – – – 

The purpose of the home loan guaranty program is to facilitate 

the extension of mortgage credit on favorable terms by private 

lenders to eligible veterans. This appropriation provides for all 

costs, with the exception of the Native American veterans housing 

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

resources to be available prior to incurring a direct loan obligation 

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

administrative expenses of a direct or guaranteed loan program to 

be funded through a program account. Loan guaranties are made 

to servicemembers, veterans, reservists, and single surviving 

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

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

payment be made for a manufactured home. With a Department 

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

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

The Committee recommends such sums as may be necessary 

(currently estimated to total $184,859,000) for funding subsidy payments, $500,000 for the limitation on direct loans for specially 

adapted housing loans, and $157,814,000 for administrative expenses. 


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VOCATIONAL REHABILITATION LOANS PROGRAM ACCOUNT

Program account Limitation on di- rect loans 

Administrative 

expenses 

Fiscal year 2012 enacted level ........................................................ $19,000 $3,019,000 $343,000 

Fiscal year 2013 budget request ..................................................... 19,000 2,729,000 346,000 

Committee recommendation in the bill ............................................ 19,000 2,729,000 346,000 

Comparison with: 

Fiscal year 2012 enacted level ............................................... – – – (290,000) 3,000 

Fiscal year 2013 budget request ............................................ – – – – – – – – – 

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

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

rate) are available to service-connected disabled veterans enrolled 

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

monthly installments, without interest, through deductions from 

future payments of compensation, pension, subsistence allowance, 

educational assistance allowance, or retirement pay. Most loans are 

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

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

The Committee recommends $19,000 for funding subsidy program costs and $346,000 for administrative expenses. The administrative expenses may be paid to the General Operating Expenses, 

Veterans Benefit Administration account. 

In addition, the Committee includes language limiting direct 

loans to $2,729,000. It is estimated that the Department will make 

2,857 loans in fiscal year 2013, with an average amount of $955. 

NATIVE AMERICAN VETERAN HOUSING LOAN PROGRAM

Administrative expenses: 

Fiscal year 2012 enacted level ........................................................... $1,116,000 

Fiscal year 2013 budget request ....................................................... 1,089,000 

Committee recommendation in the bill ............................................ 1,089,000 

Comparison with: 

Fiscal year 2012 enacted level ................................................... (27,000) 

Fiscal year 2013 budget request ................................................ – – – 

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

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

recommends the budget request of $1,089,000 for administrative 

expenses of the Native American Veteran Housing Loan Program. 

VETERANS HEALTH ADMINISTRATION

The Department operates the largest Federal medical care delivery system in the country, with 152 hospitals, 107 domiciliary residential rehabilitation treatment programs, 133 nursing homes, 300 

Vet Centers, 70 mobile Vet Centers, and 809 outpatient clinics 

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

outreach clinics. Approximately 6,300,000 patients will be treated 

in 2013. 


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The Veterans Health Administration (VHA) is comprised of four 

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

year 2014 of $54,462,000,000 in direct appropriations to fund the 

three advance appropriations of the VHA. This is an increase of 

$1,921,000,000 above the fiscal year 2013 enacted level of 

$52,541,000,000 and the same as the budget request. In addition, 

VA will receive an estimated $2,527,000,000 in Medical Care Collections Fund in fiscal year 2013. The Committee also provides the 

2013 budget request of $582,674,000 for medical and prosthetic research. 

The Committee is very disturbed by the dramatic changes in VA 

estimates for the Medical Care accounts for fiscal years 2012 and 

2013 and the lack of timely notification to Congress. The Committee did not learn of decreased resource requirements totaling 

nearly $3,000,000,000 in 2012 and nearly $2,000,000,000 in 2013 

until the 2013 budget was delivered in February. Since the funding 

for both these years had already been appropriated in advance, 

Congress lost the opportunity to consider adjusting funding levels 

for these accounts. If the Committee had been informed of the 

changes last year as the 2012 appropriations bill was being finalized, such changes could have been considered. To address this notification lapse, the Committee includes bill language requiring the 

VA to notify the Congress of any changes in funding requirements 

exceeding $250,000,000 identified when the Enrollee Healthcare 

Projection Model is re-calculated in the spring of each year. This 

notification shall be transmitted as part of the sufficiency letter 

due to Congress no later than July 31 of each year, as required in 

section 117(d) of title 38, United States Code. 

In addition to the lack of notification about excess funding, the 

Committee was not informed until the budget submission about the 

VA’s planned allocation of these funds. While the Committee does 

not challenge the allocation of the funding to special initiatives 

such as homeless assistance and hospital activations, it is concerned by the lack of opportunity for oversight. As one example, an 

initiative labeled ‘‘new models of patient-centered care’’, which was 

funded for the first time in fiscal year 2012, was increased by 

$610,000,000 from the budget estimate to the enacted level. That 

same initiative was increased from being zero-funded to 

$448,000,000 as the fiscal year 2013 budget progressed. To regain 

an opportunity for oversight, the Committee includes bill language 

requiring the VA to submit a reprogramming request when it proposes a change in funding for initiatives listed on the ‘‘VA Medical 

Care Obligations by Program’’ page in the Congressional Budget 

Submission. This reprogramming requirement applies to re-estimates of ten percent or more in the current year or advance year. 


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MEDICAL SERVICES

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

Fiscal year 2013 enacted level ........................................................... 41,354,000,000 

Fiscal year 2013 additional request .................................................. 165,000,000 

Fiscal year 2014 advance budget request ......................................... 43,557,000,000 

Committee 2014 recommendation in the bill ................................... 43,557,000,000 

Comparison with: 

Fiscal year 2013 enacted level ................................................... 2,203,000,000 

Fiscal year 2014 budget request ................................................ – – – 

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

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

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

The Committee provides an advance appropriation of $43,557,000,000 for Medical Services for fiscal year 2014, an increase of $2,203,000,000, or 5.3 percent, above the fiscal year 2013 

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

has not included requested bill language to make available through 

September 30, 2015, $1,400,000,000 of the Medical Services appropriation for fiscal year 2014, instead maintaining current policy of 

providing extended availability on a current year rather than advance funding basis. 

The fiscal year 2013 budget includes a request for an additional $165,000,000 for Medical Services in fiscal year 2013. The Committee does not provide this additional fiscal year 2013 funding. 

Since the VA has significantly overestimated Medical Care funding 

needs for both 2012 and 2013, the Committee is reluctant to provide any additional 2013 funding at this time. Should any shortfall 

occur, the Department should utilize funding from administrative 

expenses for VHA headquarters and the veterans integrated service 

networks (VISNs). 

Operational improvements.—The budget request is built on the 

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

$1,300,000,000 in fiscal years 2013 and 2014. The operational improvements vary from fee care payment savings to clinical staff and 

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

best and depend in part on regulatory changes and hiring policies 

that may not materialize. In fact, the Committee notes that the 

Government Accountability Office (GAO) found in a February, 2012 

report that VA’s estimated savings from two of its six operational 

improvements lacked analytic support, and estimated savings from 

another were flawed. In addition, GAO found that VA lacks a process for tracking actual savings for one operational improvement 

and its processes may overstate results for two others. Given this 

uncertainty, coupled with the unfortunate record the VA has had 

in the past with budgets based on similar ‘‘savings’’, the Committee 

requests that the VA continue to provide an operating plan identifying the timeframe and benchmarks used in generating the estimates and the metrics to be used to validate the savings, as requested in the 2012 House report. 

Allocation of health funding.—The Committee is concerned that 

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tion through the VISNs and from them to the medical centers may 

shortchange the ultimate users because of excessive funding retained at headquarters or at the VISNs. The Committee continues 

to request a report each year no later than thirty days after VA allocates the medical services appropriation to the VISNs that identifies: (1) the amount of general purpose funding that is allocated to 

each VISN; (2) the amount of funding that is retained by central 

headquarters for specific purposes, with amounts identified for 

each purpose; and (3) the amount of funding that is retained by 

each VISN before allocating it to the medical centers, identifying 

separately the amounts retained for purposes such as network operations, network initiatives, and emergencies. 

Homeless assistance.—The Committee provides the full fiscal year 2014 budget request of $1,351,851,000 for VA homeless assistance programs, in addition to $4,816,132,000 for homeless veterans 

treatment costs. These programs include the Homeless Providers 

Grant and Per Diem, the Domiciliary Care for Homeless Veterans, 

and the Department of Housing and Urban Development—Department of Veterans Affairs Supported Housing programs. 

Mental health issues 

The Committee provides the full fiscal year 2014 budget request of $6,453,027,000 for mental health programs, which is a 

$268,929,000, or 4.3 percent, increase over 2013 levels. Included 

within this total are $443,332,000 for post-traumatic stress disorder (PTSD) and $75,605,000 for suicide prevention. 

Delays in mental health treatment.—The Committee has been 

pleased that VA policy requires that all first-time patients referred 

to or requesting mental health services receive an initial evaluation 

within 24 hours and a more comprehensive diagnostic and treatment planning evaluation within 14 days. However, the Committee 

is alarmed by the recent Office of Inspector General (OIG) report 

finding that: (1) the VA’s reported 95 percent success rate in meeting this requirement is based on an unreliable and inaccurate 

method of measurement; and (2) the VA did not provide first-time 

patients with timely mental health evaluations, and existing patients often waited more than 14 days past their desired date of 

care for their treatment appointment. With the mental health 

needs of veterans increasing, particularly among veterans returning from conflicts in Iraq and Afghanistan, the VA must redouble 

its efforts to provide timely access to mental health care services. 

The Committee instructs the VA to implement the four recommendations made by the OIG: (1) the Under Secretary for 

Health shall revise the current full mental health evaluation measurement to ensure the measurement is calculated to reflect the veteran’s wait time experience upon contact with the mental health 

clinic or the veteran’s referral to the mental health service from another provider to the completion of the evaluation; (2) the Under 

Secretary for Health shall reevaluate alternative measures or combinations of measures that could effectively and accurately reflect 

the patient experience of access to mental health appointments; (3) 

the Under Secretary for Health shall conduct a staffing analysis to 

determine if mental health staff vacancies represent a systemic 

issue impeding the VHA’s ability to meet mental health timeliness 

goals, and if so, develop an action plan to correct the impediments; 


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and (4) the Under Secretary for Health shall ensure that data collection efforts related to mental health access are aligned with the 

operational needs of relevant decision makers throughout the organization. The Committee further instructs the VA to report to the 

Committee on its progress in meeting these recommendations 90 

days and 180 days after enactment of this Act. 

Suicide rates.—With the withdrawal of troops in Afghanistan 

and Iraq, there has been a troubling increase in mental illnesses 

and suicide rates among our veterans. The Committee is concerned 

about the current mental health and suicide prevention services 

that are readily available to our growing number of veterans and 

requests that the Department of Veterans Affairs report to the 

Committee how the VA is improving these services and impacting 

suicide rates. The Committee requests that the VA also describe in 

this report VA’s coordination with the Department of Defense 

(DOD) in ensuring these services are provided to active service 

members. 

Collaboration on suicide data.—The Committee fully supports 

the developing data sharing between the Department and public 

health agencies to improve the nation’s capacity to prevent veteran 

suicides. By linking VA claims data and systems with other public 

health surveillance data, less lag time, more complete tracking and 

a richer set of data will help inform targeted prevention strategies. 

The Committee encourages VHA collaborations to share data with 

Federal public health agencies for the purpose of expediting surveillance initiatives. 

Affiliations with university-based medical centers.—The Committee encourages the VA to establish collaborations with research 

universities and teaching hospitals for the treatment and research 

of mental health disorders, such as post-traumatic stress disorder 

and traumatic brain injury, to improve the psychological health of 

veterans and train mental health professionals so they will understand the unique needs of veterans. The Committee requests a report on current VA-university partnerships on mental health research and training no later than 90 days after enactment of this 

Act. 

Community-based programs.—The Committee is concerned about 

increasing numbers of veterans facing substance abuse problems, 

homelessness, incarceration, mental illness, and family domestic violence. The Committee encourages VA to coordinate with community-based programs for prevention and intervention, particularly 

when service members transition from active duty service. Partnerships with existing, scalable, and proven programs in the community which are able to integrate supportive housing, individual case 

management, treatment, job training, and job placement will expand the ability of the VA to address veterans’ mental health and 

other health related issues. 

Rural health issues 

The Committee provides the full fiscal year 2014 budget request 

of $250,000,000 to improve access and quality of care for the 

3,300,000 veterans residing in rural and highly rural areas. The 

Committee directs the Office of Rural Health to submit to the Committee within 30 days of enactment of this Act an operating plan 


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for this funding, as well as any changes to that operating plan at 

the start of the fiscal year for which the funds are provided. 

Access for underserved populations.—The Committee is concerned 

about the health care needs of elderly veteran populations in rural 

areas. These veterans often have difficulty obtaining access to quality health care and disability services, due to long distances to 

healthcare facilities and the lack of specialty providers working in 

rural areas. While the VA has made strides in expanding access to 

rural veterans, it is clear that the VA continues to struggle to find 

an adequate and effective strategy to reach these veterans. The 

Committee requests a detailed report by March 31, 2013, on the 

feasibility of offering mobile health services, home-based primary 

care, telemedicine, and other enhanced home-based services in 

these underserved areas. 

Non-VA care.—The Committee encourages the VA to evaluate 

using local private sector health care assets and facilities when feasible and cost-effective. The increased use of private providers can 

reduce the cost of per diem and mileage expended by the VA and 

prevents veterans from traveling long distances from home to get 

quality health care. When using non-VA facilities, VA should establish performance criteria and certify health care facilities to ensure 

quality control. The Committee found compelling the hearing testimony on Project ARCH, a demonstration in five rural sites using 

non-VA health care facilities, and requests a quarterly report on 

the findings of the demonstration as it progresses. 

Assignment to health care centers.—The Committee has heard 

complaints that some veterans travel long distances because of the 

locations VA directs them for care even though there are closer, 

more easily accessible health center locations. The Committee requests the VA to report to the Committee about the method used 

to assign veterans to VA health care centers. The report should include a description of how often service areas change, what notification is made to veterans of such changes, and what appeal rights 

veterans have to use a different facility than the one they were assigned. 

Nursing shortages.—The Committee is concerned about a severe 

shortage of nurses and nursing education programs in rural areas. 

The Committee encourages the VA to establish strategic partnerships with higher education institutions such as historically black 

colleges and universities to expand the accessibility of health care 

in rural areas by developing nursing education programs located in 

those areas. The Committee directs the Department to provide a 

report to the Committee on its progress on this initiative not later 

than 180 days following the enactment of this Act. 

Other health issues 

Dialysis.—The Committee is very concerned about the growing 

number of cases of end stage renal disease (ESRD). According to 

VA estimates for fiscal year 2011, over 27,000 veterans have 

ESRD, of whom approximately 16,500 received dialysis from the 

VA on contract with providers or on an outpatient basis from a VA 

facility. Studies have demonstrated that home-based dialysis therapies, including peritoneal dialysis and home hemodialysis, are less 

costly than in-center hemodialysis, while providing equal, if not potentially better, patient outcomes. The Committee directs the DeVerDate Mar 15 2010 02:05 May 24, 2012 Jkt 074225 PO 00000 Frm 00039 Fmt 6659 Sfmt 6602 E:\HR\OC\HR491.XXX HR491

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partment to report to the Committee the number of VA patients 

currently using home-based dialysis therapies and actions VA is 

taking to encourage increased use of home dialysis, as well as barriers to expanding the provision of home options. This report shall 

be submitted not later than 90 days after enactment of this Act. 

COPD and Alpha–1.—The Committee is concerned by the incidence of chronic obstructive pulmonary disease (COPD) in the veteran population. COPD is caused by smoking, exposure to air pollution and a genetic condition known as Alpha–1 Antitrypsin Deficiency (AATD). The Committee notes the positive results of a pilot 

testing program conducted by the Miami, FL Veterans Administration Medical Center that utilized electronic medical records to help 

detect and properly treat veterans for COPD and AATD. The Committee encourages the VA to broaden COPD and AATD testing 

among at-risk veterans and requests a report on progress made by 

February 1, 2013. 

HIV/AIDS among veterans.—The Committee recognizes the actions the VA has taken to implement routine HIV testing among 

veterans and urges the VA to expand on initiatives that have demonstrated success, such as the use of the Computerized Patient 

Record System HIV testing clinical reminder. In addition, the Committee encourages the VA to incorporate rapid HIV testing in order 

to increase access to testing as well as patient receipt of results. 

Prescription drug abuse.—The Committee is pleased that the 

2012 appropriations bill gave the Secretary the authority to disclose veterans’ controlled substance prescriptions to State controlled substance monitoring programs. The epidemic of prescription pain killer abuse is overwhelming local communities, and law 

enforcement officials need every tool available to contain the problem. VA participation in the State monitoring boards is an important step. The Committee directs the agency to jumpstart its regulatory process so that the VA can begin to share information with 

the States before the end of fiscal year 2012. The VA is directed 

to provide the Committee with a timeline for implementing the regulations and a monthly update on their status, as well as any procedural obstacles that could jeopardize the schedule. 

Health professions school affiliations with VA health care facilities.—The Committee continues to support a closer collaboration 

between VA health care facilities and the historically black health 

professions schools. The Committee is pleased with recent efforts to 

improve the working relationship and requests a report no later 

than 90 days after enactment of this Act on the symposium requested in the fiscal year 2011 report, in which VA health leaders 

and leaders of historically black health professions schools came together to pursue next steps of collaboration. 

Prostate cancer.—The Committee is concerned by the incidence of 

prostate cancer in the veteran population. The Committee requests 

that VA provide information about the number of veterans currently diagnosed with prostate cancer and treated in VA facilities 

and the range and frequency of specific treatments provided. The 

report should include a description of prostate cancer research conducted by the VA and any changes in VA treatment protocols that 

resulted. 

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during Freedom and Operation Iraqi Freedom, as well as the rapidly increasing demand for eye care within the aging veterans population. In light of this growing need, the Committee urges the VA 

to help ensure veterans have access to high quality care by moving 

quickly with its plans to expand its national ophthalmology services. 

Medical equipment purchases.—The Committee understands that 

the number of veterans who require healthcare services is increasing due to both advances in medical care that are increasing longevity and the continued length of active war engagement. As the 

cost for providing medical services for veterans continues to rise, 

the VA should explore new options for cost savings without reducing the quality of medical care for veterans. The Committee encourages the VA to develop a pilot program using competitive bidding 

for parts replacement for various types of medical equipment, similar to what is used by private sector hospitals and health systems. 

Currently, replacement parts are purchased by the VA via long 

term contracts which may not reflect prices on the open market. 

This pilot would help the VA analyze if savings can be realized by 

purchasing replacement equipment parts from alternative sources 

through competitive bidding. The pilot should be evaluated two 

years after the start date by comparing the costs of equipment 

parts purchased in geographic areas selected for the pilot versus 

costs in an equivalent number of geographic areas using standard 

acquisition methods. The VA should include estimates of potential 

savings nationwide if competitive bidding were used to acquire replacement parts. 

MEDICAL SUPPORT AND COMPLIANCE

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

Fiscal year 2013 enacted level ........................................................... 5,746,000,000 

Fiscal year 2014 advance budget request ......................................... 6,033,000,000 

Committee 2014 recommendation in the bill ................................... 6,033,000,000 

Comparison with: 

Fiscal year 2013 enacted level ................................................... 287,000,000 

Fiscal year 2014 advance budget request ................................. – – – 

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

health care system, including financial management, public health 

and environmental hazard, quality and performance management, 

medical inspection, human research oversight, training programs 

and continuing education, security, volunteer operations, and 

human resources. 

The Committee recommends an advance appropriation of 

$6,033,000,000 for Medical Support and Compliance for fiscal year 

2014, an increase of $287,000,000 above the fiscal year 2013 enacted level and the same as the budget request. The Committee 

has not included requested bill language to make available through 

September 30, 2015, $100,000,000 of the Medical Support and 

Compliance appropriation for fiscal year 2014, instead maintaining 

current policy of providing extended availability on a current year 

rather than advance funding basis. 


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MEDICAL FACILITIES

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

Fiscal year 2013 enacted level ........................................................... 5,441,000,000 

Fiscal year 2014 advance budget request ......................................... 4,872,000,000 

Committee 2014 recommendation in the bill ................................... 4,872,000,000 

Comparison with: 

Fiscal year 2013 enacted level ................................................... (569,000,000) 

Fiscal year 2013 advance budget request ................................. – – – 

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

capital infrastructure. Included under this heading are provisions 

for costs associated with utilities, engineering, capital planning, 

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

The Committee recommends an advance appropriation of 

$4,872,000,000 for Medical Facilities for fiscal year 2014, a decrease of $569,000,000 below the fiscal year 2013 enacted level and 

the same as the budget request. The Committee has not included 

requested bill language to make available through September 30, 

2015, $250,000,000 of the advance Medical Facilities appropriation 

for fiscal year 2014, instead maintaining current policy of providing 

extended availability on a current year rather than advance funding basis. 

The Committee supports VA plans for the construction of a new 

joint VA–DOD Community Based Outpatient Clinic (CBOC) on the 

Monterey, CA peninsula as part of the Health Care Center Facility 

pilot program. The Committee is aware that this CBOC will meet 

the health care needs of over 50,000 veterans and over 31,000 active duty army personnel and their families who reside in the 

greater Monterey, CA region. The Committee understands that the 

VA has selected a preferred site, and the Committee urges the VA 

to move quickly to break ground for this much needed facility. 

MEDICAL AND PROSTHETIC RESEARCH

Fiscal year 2012 enacted level ........................................................... $581,000,000 

Fiscal year 2013 budget request ....................................................... 582,674,000 

Committee recommendation in the bill ............................................ 582,674,000 

Comparison with: 

Fiscal year 2012 enacted level ................................................... 1,674,000 

Fiscal year 2013 budget request ................................................ – – – 

This appropriation provides for medical, rehabilitative, and 

health services research. Medical research is an important aspect 

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

essential in the development and testing of prosthetic, orthopedic, 

and sensory aids for the purpose of improving the care and rehabilitation of eligible disabled veterans, including amputees, 

paraplegics, and the blind. The health services research program 

provides unique opportunities to improve the effectiveness and efficiency of the health care delivery system. Budgetary resources from 

a number of areas including appropriations from the medical care 

accounts, reimbursements from DOD, grants from the National Institutes of Health, private proprietary sources, and voluntary organizations provide support for the Department’s researchers. Estimated total research resources from all sources in 2013 are 


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$1,876,000,000. The VA will support about 2,200 research projects 

during fiscal year 2013. 

The Committee recommends $582,674,000 for Medical and Prosthetic Research, an increase of $1,674,000 above the fiscal year 

2012 enacted level and the same as the budget request. Funds are 

available through September 30, 2014. 

Gastrointestinal disorders and Gulf War syndrome.—The Institute of Medicine (IOM) identified a link between Gulf War service 

and the development of functional gastrointestinal disorders in its 

2010 report on Gulf War service and health. These disorders can 

be painful and debilitating for veterans, and the Committee urges 

VA to prioritize this important research area. 

Respiratory exposures/burn pits.—There is a reported increase in 

respiratory conditions such as atypical pneumonias, asthma and 

bronchiolitis among military personnel who were exposed to burn 

pits, increased particulate matter and other potential hazards 

while serving in Iraq, Kuwait, and Afghanistan. The Committee 

notes the research recommendations in the IOM report entitled 

‘‘Long-Term Health Consequences of Exposure to Burn Pits in Iraq 

and Afghanistan’’ and encourages the Department to allocate the 

resources needed to address the key research questions identified 

by the IOM report. 

Outcomes-based prosthetics research.—The Committee is aware of 

the need for comparative outcomes research to establish which 

orthotic and prosthetic services, supports and devices generate the 

best outcomes for which types of veterans. The Committee encourages the VA to increase its outcomes-based research to guide VA 

orthotics and prosthetics care. To generate a baseline for this research effort, the Committee expects a report within 60 days of enactment of this Act identifying the individual VA comparative outcomes studies that have been completed or are underway for 

orthotics and prosthetics. This report should also include a description of the key research questions that need to be addressed in fiscal year 2013 and beyond. 

Intelligent prostheses.—The committee encourages the Department of Veterans Affairs to increase its research supporting advances in the interface between the nervous system and intelligent 

prostheses to give sensation back to amputees. 

Prosthetics for women.—Approximately 6 percent of wounded veterans returning from Iraq and Afghanistan are amputees, and the 

number of veterans accessing VA health care for prosthetics and 

sensory aids continues to increase. The Committee remains concerned about the lack of resources available for prosthetics for 

women in the military, since most prostheses are designed to fit 

male veterans. The Committee applauds the Prosthetic Women’s 

Workgroup and directs the VA, in collaboration with the 

Workgroup, to issue a comprehensive report on female veteran amputees and access to prosthetics. This report should be submitted 

to the Committee within 90 days of final passage of this legislation. 

Polytrauma rehabilitation technology.—The Committee encourages the VA to increase its research in polytrauma rehabilitation 

technology, especially through affiliations with universities and 

non-profit research institutions which are developing technologies 

to support rehabilitation requirements. 


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Neurological research.—The Committee is aware that the Department is conducting innovative research in new neuro-diagnostic techniques, the relationship of traumatic brain injury (TBI) 

to PTSD, and clinical strategies to enhance neuro-rehabilitation of 

TBI and PTSD that will lead to maximum recovery of function and 

community reintegration. The Committee encourages efforts to 

demonstrate the effectiveness of new bench-to-bedside programs to 

detect and treat cognitive loss that accompanies TBI and PTSD in 

affected veterans. 

Federal neuroscience working group.—The Committee is aware 

that the Office of Science and Technology Policy, within the Executive Office of the President, is establishing an interagency working 

group under the auspices of the National Science and Technology 

Council (NSTC) to coordinate investments in neuroscience research 

across the Federal government and leverage the potential for significant, transformative advances in our fundamental understanding of learning, brain development, and brain health and recovery. The goal of the working group is to help coordinate, focus 

and enhance Federal efforts related to neuroscience, including efforts to develop future clinical treatments for traumatic and acquired brain injuries; increase our understanding of cognition and 

apply that knowledge to the improvement of education and learning; and improve our understanding of, and develop better therapies for neurodegenerative diseases, childhood developmental disorders, and other neurological conditions. The Committee supports 

the activities of the NSTC neuroscience working group and urges 

the Department of Veterans Affairs to play an active role in it. 

MEDICAL CARE COLLECTIONS FUND

The Department of Veterans Affairs Medical Care Collections 

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

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

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

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

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

services to veterans. The Congressional Budget Office estimate of 

fees that will be collected in fiscal year 2013 is $2,527,000,000. 

NATIONAL CEMETERY ADMINISTRATION

Fiscal year 2012 enacted level ........................................................... $250,934,000 

Fiscal year 2013 budget request ....................................................... 258,284,000 

Committee recommendation in the bill ............................................ 258,284,000 

Comparison with: 

Fiscal year 2012 enacted level ................................................... 7,350,000 

Fiscal year 2013 budget request ................................................ – – – 

The National Cemetery Administration (NCA) was established in 

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

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

any national cemetery with available grave space, the remains of 

eligible deceased servicemembers and discharged veterans, together 

with their spouses and certain dependents, and to permanently 

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

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


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

tribal governments in establishing, expanding, or improving State 

and tribal government veterans’ cemeteries; and to administer the 

Presidential Memorial Certificate Program. This appropriation will 

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

The Committee recommends an appropriation of $258,284,000 for the National Cemetery Administration, an increase of $7,350,000 

above the fiscal year 2012 enacted level and the same as the budget request. The bill includes language making $25,828,000 available until September 30, 2014. 

Rural access.—The Committee believes the NCA is not adequately serving the nation’s veterans in rural areas. While the 

strategy to serve rural veterans outlined in the fiscal year 2013 

budget request is a partial step, it fails to offer a long-term strategy for addressing this unserved veteran population. The Committee is concerned that NCA effort and funding go primarily toward major urban areas already being served, whereas NCA effort 

towards rural areas appears to be a lower priority. In addition, the 

projects for major urban areas tend to be expensive, while serving 

rural veterans can be done at a lower cost. 

In addition to NCA’s failure to address the 10 percent of veterans 

who are unserved, it has come to the Committee’s attention that 

the NCA projection that 90 percent of all veterans are currently 

being served because they reside within a 75-mile radius with a 

veteran population of 80,000 is significantly overstated for several 

reasons: (1) the NCA counts all veterans as served if the 75-mile 

radius circle includes a ‘‘major population center’’; by using this criterion, the NCA counts as served veterans who are in fact outside 

the 75-mile radius; (2) the NCA’s 75-mile radius fails to include 

driving distance, so while veterans may be within the 75-mile radius, actual driving distance is in fact far greater than 75 miles; 

(3) the NCA includes 18 national cemeteries that are open for cremation only, which limits veterans to one burial option; (4) the 

NCA counts as served all veterans in a county, if the majority of 

the county land is within the 75-mile radius; and (5) the NCA 

counts veterans who reside within 75 miles of a State cemetery as 

served; however, some veterans may not qualify for burial in that 

cemetery because of State residency restrictions. 

As a result, the Committee includes bill language requiring the 

Secretary of Veterans Affairs to provide a report to the Committee 

within six months of enactment of this Act. This report shall outline a strategy addressing the shortcomings identified above, with 

proposed policies and an implementation timeframe. However, 

prior to the submission of this report, the bill requires the GAO to 

confirm that the criteria listed in the bill language have been satisfied. After the GAO makes this certification, the report shall be 

submitted to the Committees on Appropriations of the House of 

Representative and Senate for final approval. 

Right of privacy in VA cemeteries.—The Committee reaffirms the 

inviolable individual zone of privacy and individual liberty that 

each American possesses, including the deeply private act of choosing the content and creed of an individual’s funeral, memorial service, or ceremony. In light of such an inviolable individual zone of 

privacy, the Committee believes that no official of the Federal govVerDate Mar 15 2010 02:05 May 24, 2012 Jkt 074225 PO 00000 Frm 00045 Fmt 6659 Sfmt 6602 E:\HR\OC\HR491.XXX HR491

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ernment, including the Secretary of Veterans Affairs, can believe 

they have the authority to interfere with the content and creed of 

the funeral, memorial service, or ceremony of a deceased individual, as expressed by the last will and testament of the individual or as determined by the family or agent of the individual. 

When family members of deceased veterans are struggling with 

their grief and sorrow at the cemetery, the VA’s responsibility is 

only to provide a setting of contemplation and respect so that family and friends can honor the veteran with a ceremony chosen only 

by them, without intervention or restriction from the VA. The Committee directs the NCA to put forward guidance to ensure that this 

policy is adhered to without exception at every NCA national cemetery in this country. 

DEPARTMENTAL ADMINISTRATION

GENERAL ADMINISTRATION

(INCLUDING TRANSFER OF FUNDS)

Fiscal year 2012 enacted level ........................................................... $416,737,000 

Fiscal year 2013 budget request ....................................................... 416,737,000 

Committee recommendation in the bill ............................................ 416,737,000 

Comparison with: 

Fiscal year 2012 enacted level ................................................... – – – 

Fiscal year 2013 budget request ................................................ – – – 

The general administration account provides funds for the Office 

of the Secretary, six Assistant Secretaries, and three independent 

staff offices. The Committee recommends $416,737,000, the same 

as the fiscal year 2012 enacted level and the budget request. The 

Committee has included bill language to make available through 

September 30, 2014, up to $20,837,000 of these funds and to permit 

the transfer of funds in this account to the General operating expenses, Veterans Benefits Administration account. 

VA budget office communication.—The Committee has traditionally channeled most of its inquiries and requests for information 

and assistance through the VA budget office. The Committee reiterates its longstanding position that while the Committee reserves 

the right to call upon all VA offices, the primary communication between the Committee and the VA should normally be through the 

budget office. Responses to Committee inquiries, regardless of 

whether they concern funding or policy, are to be transmitted without delay by other offices within the VA, unless otherwise requested by the Committee. In addition, to facilitate the work of the 

Committee, it expects that the Department will make available to 

all personal and committee staff of Members of the Committee the 

same direct contact with the budget office. The Committee also expects that a staff member of the VA budget office will be present 

at every meeting held between the Chairman of the Subcommittee 

and the Secretary or other senior VA officials. Resources have been 

provided to the budget office for these communication purposes. 

Quarterly full-time equivalents (FTE) reports.—The Committee 

continues to request that the VA provide, on a quarterly basis, the 

total current FTE by appropriation account and, in the case of General operating expenses, Veterans Benefits Administration, by program. The Committee feels it needs to have current staffing inforVerDate Mar 15 2010 02:05 May 24, 2012 Jkt 074225 PO 00000 Frm 00046 Fmt 6659 Sfmt 6602 E:\HR\OC\HR491.XXX HR491

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mation throughout the year in order to monitor the use of salaries 

and expenses resources. 

Additional budgetary information.—The Committee appreciates 

the changes the VA has made to its budget justifications in response to Committee requests for fiscal year 2012, but believes that 

the budget justifications submitted each year with the Administration’s budget should be further expanded to include the following 

information which would help inform Congressional decisions: • a brief explanation of any proposed change in each account’s appropriation bill language; • a consolidated administrative expenses chart for the entire 

Department; • a section identifying each piece of directive report language from the previous year’s House, Senate and conference 

reports and the VA response/action taken for each item; • a table breaking out the funding within the ‘‘administration’’ object classification for Medical Services by headquarters, 

VISN, and medical center categories; • the number of FTE financed in the ‘‘administration’’ object 

classification for Medical Services, broken out by the three categories above; • a table breaking out the funding within the ‘‘administrative contract services’’ object classification for Medical Services 

into headquarters, VISN, and medical center categories; • a table breaking out the number of FTE in the ‘‘all other’’ 

category in the ‘FTE by Type’ Medical Services chart in the 

Program Resource Data section of the Congressional Submission, by headquarters, VISN, and medical center categories; a 

listing of the major occupational series supported in the ‘‘all 

other’’ category with the number of FTE in these major categories; • a table identifying the number and percentage of total 

FTE by occupational series listed in the ‘FTE by Type’ chart 

who spend 50 percent of more of their time on medical care; 

and 

• a detailed summary of the VA marketing campaign budget, including the amounts expended on VA advertising campaigns and a detailed list of outreach methods. 

Transparency of agency contacts.—The Committee is concerned 

that the public has no way to identify staff contacts within the Department, either through telephone or e-mail. Other major executive branch agencies make available on their web sites a directory 

of staff e-mail addresses and phone numbers. While the Committee 

understands that it is not practical to produce a hard copy version 

of such a directory for VA, given the Department’s size and mobility, it does not understand why an electronic version of a directory 

is not posted on the VA web site. The Committee requests a report 

not later than 60 days following enactment of this Act describing 

how the VA could adapt its internal intranet staff directory to a 

web directory appropriate for the public. 

VA contracting issues.—The Committee continues to be concerned about the contracting practices of the Department of Veteran Affairs. The Committee believes that the VA should work to 

ensure it is contracting with reputable contractors that fulfill their 

contracts on time, within scope and with full payment to subVerDate Mar 15 2010 02:05 May 24, 2012 Jkt 074225 PO 00000 Frm 00047 Fmt 6659 Sfmt 6602 E:\HR\OC\HR491.XXX HR491

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contractors. The Committee requests a report not later than 30 

days after enactment of this Act that describes the number of active, ongoing contracts with contractors who are currently involved 

in litigation or legal disputes regarding nonpayment of their obligations related to VA contracts. 

GENERAL OPERATING EXPENSES, VETERANS BENEFITS

ADMINISTRATION

Fiscal year 2012 enacted level ........................................................... $2,018,764,000 

Fiscal year 2013 budget request ....................................................... 2,164,074,000 

Committee recommendation in the bill ............................................ 2,164,074,000 

Comparison with: 

Fiscal year 2012 enacted level ................................................... 145,310,000 

Fiscal year 2013 budget request ................................................ – – – 

The General Operating Expenses, Veterans Benefits Administration account provides funding for the Veterans Benefits Administration to administer entitlement programs such as service-connected disability compensation, education benefits, and vocational 

rehabilitation services. 

The Committee recommends $2,164,074,000 for General operating expenses, Veterans Benefits Administration, which is 

$145,310,000 above the fiscal year 2012 enacted level and the same 

as the budget request. The Committee has included bill language 

to make available through September 30, 2014, up to $113,000,000 

of these funds. Language relating to a limitation on purchase of vehicles for the Manila, Philippines regional office is no longer necessary and is not included in the bill. 

Claims processing delays.—The Committee believes VA should 

have no higher priority than to reach its ultimate goal by 2015 of 

no disability claim being more than 125 days old. However, given 

that the number of claims is increasing each year, that 60 percent 

of claims are currently more than 125 days old, and that the VA 

goal for 2013 is to lower that rate to 40 percent in 2013, the Committee is somewhat skeptical that the 2015 goal will be accomplished. Since the VA believes that the Veterans Benefits Management System and improved business processes are the keys to overcoming the claims backlog, the Committee requests that the VA 

provide quarterly reports indicating the number and location of regional offices that have adopted the new paperless claims processing system, as well as the periodic enhancement of the paperless 

system and the rollout of the individual improved business processes. 

Backlog at the Oakland, CA and other VA regional offices.—The 

Committee remains very concerned about the backlog of claims and 

accuracy of processing at Veterans Affairs Regional Offices 

(VAROs). For example, in May, 2012, the Office of Inspector General (OIG) submitted a report on the Oakland, CA VARO and found 

that it lacked effective controls and accuracy in processing some 

disability claims. In addition, the OIG report found that the Oakland VARO management did not certify that the staff completed all 

elements of the Systematic Technical Accuracy Review (STAR), 

which is the VBA’s multi-faceted quality assurance program to ensure that veterans and other beneficiaries receive accurate and consistent compensation and pension benefits. The Committee encourages the VA to follow the recommendations outlined in the May, 

2012, OIG report for the Oakland VARO. The Committee also enVerDate Mar 15 2010 02:05 May 24, 2012 Jkt 074225 PO 00000 Frm 00048 Fmt 6659 Sfmt 6602 E:\HR\OC\HR491.XXX HR491

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courages the VA to direct necessary resources to address the backlog and provide a report to the Committee, within 30 days following 

enactment of this Act, detailing the efforts to eliminate the backlog 

and improve the accuracy of claims processing within six months. 

Furthermore, the Committee is concerned that these problems 

are not limited to the Oakland VARO. The Committee is also 

aware of long delays in claims processing at the Houston and 

Waco, TX and Seattle, WA VAROs. Recognizing that the paperless 

claims system is designed to address the severe backlogs in regional offices like these, the Committee directs the VA OIG to conduct an analysis of the VA paperless initiative, including whether 

the paperless system has been tested with enough claims (original 

and supplemental) for the VA to be confident it is accurate and 

whether the VA’s goals of eliminating the disability claims backlog 

and increasing the accuracy rate of processing claims to 98 percent 

by 2015 are still attainable. This report shall be submitted no later 

than 90 days after enactment of this Act. 

Claims transformation initiatives.—The Committee is also concerned that several regional offices with the highest levels of backlogs failed to be included in the initial rollout of the ‘‘Claims Transformation Initiatives’’ and directs the VA to ensure that consideration of the size of each regional office’s backlog is a primary factor 

in deciding which regional offices are slated for a ‘‘Claims Transformation Initiative’’. 

Education transition programs.—The Committee is encouraged 

by the budget request’s expansion of the VetSuccess on Campus 

initiative that provides outreach and transition services to veterans 

during their transition from the military to college. The program 

provides on-campus vocational rehabilitation counselors and Vet 

Center outreach coordinators to ensure the coordinated delivery of 

health, education and benefit services to veteran-students. 

Access in remote areas.—The Committee encourages the Veteran 

Benefits Administration to work to increase the presence of staff in 

remote or underserved areas such as the Commonwealth of the 

Northern Mariana Islands. Making sure that veterans in remote 

and underserved areas receive access to veterans services is essential to honoring their sacrifices. 

Crowdsourcing.—The Committee is pleased with VA’s efforts 

through the Veterans Relationship Management Program to expand its automated tools to communicate with veterans and to create user-centric access to VA information. The Committee urges the 

VA to move to the next level with this user-centric approach by 

testing the crowdsourcing method of obtaining customer opinions 

on quality of care or benefits determinations. With the use of customer kiosks or applications on hand-held devices, VA could obtain 

nearly real-time feedback from veterans on the timeliness and 

quality of their medical visits or disability reviews. A pilot program 

designed around a specific aspect of the service would provide VA 

with the opportunity to test the concept, gauge the level of customer interest, and assess the quality of the data. The data could 

then be aggregated to produce trend analysis to support decisionmaking around operational improvements resulting in cost efficiencies and/or increased quality of service. An important component to the overall success of the pilot would be managing and effectively moderating the site and data collected. The Committee reVerDate Mar 15 2010 02:05 May 24, 2012 Jkt 074225 PO 00000 Frm 00049 Fmt 6659 Sfmt 6602 E:\HR\OC\HR491.XXX HR491

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quests a report not later than 60 days after enactment of this Act 

describing how such a crowdsourcing demonstration project would 

be conducted. 

INFORMATION TECHNOLOGY SYSTEMS

(INCLUDING TRANSFER OF FUNDS)

Fiscal year 2012 enacted level ........................................................... $3,111,376,000 

Fiscal year 2013 budget request ....................................................... 3,327,444,000 

Committee recommendation in the bill ............................................ 3,327,444,000 

Comparison with: 

Fiscal year 2012 enacted level ................................................... 216,068,000 

Fiscal year 2013 budget request ................................................ – – – 

The Information Technology Systems account supports information technology (IT) services such as systems development and performance, operations and maintenance, information protection, and 

customer support. The program permits the effective and efficient 

delivery of veterans’ healthcare services and benefits programs. 

The Committee recommends an appropriation of $3,327,444,000 

for Information Technology Systems, which is $216,068,000 above 

the fiscal year 2012 appropriation and the same as the budget request. Within the account total, the Committee allocates in bill language $1,021,000,000 for pay and associated costs; $1,812,045,000 

for operations and maintenance; and $494,399,000 for development, 

modernization, and enhancement. Three percent of pay and associated costs funds and seven percent of operations and maintenance 

funds are available until September 30, 2014. All development, 

modernization, and enhancement funds are available until September 30, 2014. 

The Committee continues to include bill language prohibiting obligation or expenditure of funds for information technology systems 

development, modernization and enhancement until the VA submits to the Committee a certification of the amounts. In addition, 

the Committee continues bill language permitting the transfer of 

funding among the three subaccounts upon approval of the Committees. The bill contains language in this account that was formerly in an administrative provision which allows for the reprogramming of funds among development, modernization and enhancement projects upon prior notification to, and approval by, the 

Committee. The bill continues to include language indicating that 

funds for development, modernization and enhancement are available only for the projects and in the amounts specified in the report 

accompanying the bill. 

The chart below reflects the Administration’s budget request for 

development projects and includes the Committee recommendation 

for each. This chart will serve as the Department’s approved list 

of development projects, and all requested changes are subject to 

the reprogramming guidelines as outlined in the accompanying Act. 


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Lastly, the bill includes language that restricts the availability of 

more than 25 percent of the funds provided to develop an integrated DOD–VA electronic health record until the DOD–VA Interagency Program Office submits a fiscal year 2013 execution and 

spending plan, as well as a long-term roadmap for the life of the 

project that includes elements such as annual and total spending 

for each Department and a quarterly schedule and milestones for 

each Department. The House DOD appropriations bill includes 

comparable language. The Committee is encouraged by the longawaited agreement by both Departments to commit to one integrated electronic health record, but wants to be certain that the 

agreement is accompanied by a strategic plan that directs the development plans of both agencies. 

Obligations report.—The Committee expects the Office of Information Technology to continue to provide an IT expenditure report 

to the Committees on Appropriations on a monthly basis. This report shall include a comparison to the project costs included in the 

development, modernization, and enhancement project funding 

chart included in the House report, and provide an explanation for 

any differences in excess of $1,000,000. 

Integrated electronic health records.—For years, the Committee 

has been encouraging and funding efforts by VA and DOD to develop interoperable technology to facilitate the rapid exchange of 

patient and beneficiary information that will yield consolidated, coherent and consistent access to electronic records between VA and 

DOD. Integrated electronic health records would significantly improve the delivery of care to servicemembers transitioning from 

military to civilian life. The Committee is encouraged by recent 

agreements between the Secretaries of VA and DOD to develop an 

integrated electronic health record, which will require both departments to integrate business requirements, acquisitions and technical approaches. The Committee provides a total of 

$169,000,000—$104,000,000 for development and $65,000,000 for 

operations and maintenance—as requested in the budget for the 

continued implementation of an integrated electronic health record. 

Project monitoring.—The Committee is concerned by the findings 

of an August 2011 report by the VA Office of Inspector General 

(OIG) that raised questions about the lack of management controls 

over self-reported data in the Project Management Accountability 

System (PMAS). The VA uses PMAS to track its IT projects on cost 

and schedule milestones. The OIG found that revised data simply 

replaced existing data so that PMAS cannot be used to provide reliable project status. The Committee urges the VA to adopt stricter 

controls in the future for the PMAS system. 

OFFICE OF INSPECTOR GENERAL

Fiscal year 2012 enacted level ........................................................... $112,391,000 

Fiscal year 2013 budget request ....................................................... 113,000,000 

Committee recommendation in the bill ............................................ 113,000,000 

Comparison with: 

Fiscal year 2012 enacted level ................................................... 609,000 

Fiscal year 2013 budget request ................................................ – – – 

The Office of Inspector General (OIG) was established by the Inspector General Act of 1978 and is responsible for the audit, investigation, and inspection of all Department of Veterans Affairs programs and operations. The overall operational objective is to focus 


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available resources on areas which would help improve services to 

veterans and their beneficiaries, assist managers of Department 

programs to operate economically in accomplishing program goals, 

and to prevent and deter recurring and potential fraud, waste, and 

inefficiencies. 

The Committee recommends an appropriation of $113,000,000 for the Office of Inspector General, an increase of $609,000 above the 

fiscal year 2012 enacted level and the same as the budget request. 

The bill makes $6,000,000 of the total funding available until September 30, 2014. 

Conference costs.—The Committee is concerned by recent reports 

of inappropriate, lavish spending by an executive branch agency on 

off-site conferences. The Committee requests that the OIG conduct 

a review of the policies and controls instituted by the Department 

to manage costs associated with conference-related activities and 

identify any vulnerabilities in such policies. The review should describe any independent examination of the size, location, and criticality of proposed meetings. The report from the OIG should also 

include descriptions of any recent OIG findings about questionable 

VA expenses for conferences and conference-associated travel. This 

report is requested no later than 180 days after enactment of this 

Act. 

CONSTRUCTION, MAJOR PROJECTS

Fiscal year 2012 enacted level ........................................................... $589,604,000 

Fiscal year 2013 budget request ....................................................... 532,470,000 

Committee recommendation in the bill ............................................ 532,470,000 

Comparison with: 

Fiscal year 2012 enacted level ................................................... (57,134,000) 

Fiscal year 2013 budget request ................................................ – – – 

The Construction, Major Projects appropriation provides for constructing, altering, extending, and improving any of the facilities 

under the jurisdiction or for the use of the Department of Veterans 

Affairs, including planning, architectural and engineering services, 

assessments, and site acquisition where the estimated cost of a 

project is $10,000,000 or more. The Committee recommends an appropriation of $532,470,000 for Construction, Major Projects, a decrease of $57,134,000 from the 

fiscal year 2012 enacted level and the same as the budget request. 

The Committee recommendation makes these funds available for a 

five-year period rather than until expended, reflecting concern 

about the lengthy period that VA has taken to design and build 

major construction projects. The Committee hopes that limiting the 

time period during which these funds may be used will motivate 

the VA to better plan and design projects before funding is requested. 

The Committee recommendation provides funding for 4 continuing major construction projects, which would require an additional $630,430,000 to complete in future years. This is in addition 

to an unfunded obligation of $5,287,709,000 for 17 projects that 

were started in previous years, but not supported in the fiscal year 

2013 budget request. 

The Committee recommendation includes language in administrative provisions which requires the Department to notify the 

Committee of all bid savings on contracts for construction projects 

that total at least $5,000,000 or 5 percent of the programmed 


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amount of the project and prohibits any changes from the original 

scope of work identified in the justification material submitted with 

the budget for each project. 

The Committee requests that the VA submit a report no later 

than 90 days after enactment of this Act describing the contract 

audit program that VA uses to review the progress and budgeting 

on-site of major construction projects, the number of times and at 

what stages of construction the teams conduct the reviews, the critical path method used to track the components of each project, and 

the periodic reporting done by the building contractors. 

The specific amounts recommended by the Committee are as follows: 

[In thousands of dollars] 

Location Description 2013 request Committee recommendation 

Veterans Health Administration (VHA): 

St. Louis, MO ......................................... Med Facility Improvements ............................ $130,300,000 $130,300,000 

Palo Alto, CA ......................................... Polytrauma/Ambulatory Care ......................... 177,823,000 177,823,000 

Seattle, WA ............................................ Mental Health Bldg ....................................... 55,000,000 55,000,000 

Dallas, TX .............................................. Spinal Cord Injury .......................................... 33,500,000 33,500,000 

Advance Planning Fund ........................ ........................................................................ 70,000,000 70,000,000 

Asbestos ................................................ ........................................................................ 8,000,000 8,000,000 

Major Construction Staff ....................... ........................................................................ 24,000,000 24,000,000 

Claims Analysis ..................................... ........................................................................ 2,000,000 2,000,000 

Facility Security ..................................... ........................................................................ 7,200,000 7,200,000 

Hazardous Waste ................................... ........................................................................ 5,000,000 5,000,000 

Judgment Fund ...................................... ........................................................................ 5,000,000 5,000,000 

Total VHA .......................................... ........................................................................ 517,823,000 517,823,000 

National Cemetery Administration (NCA): 

Advance Planning Fund ........................ ........................................................................ 2,647,000 2,647,000 

NCA Land Acquisition Fund .................. ........................................................................ 7,000,000 7,000,000 

Total NCA .......................................... ........................................................................ 9,647,000 9,647,000 

General Administration—Staff Offices 

Advance Planning Fund.

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

Major construction total ................... ........................................................................ 532,470,000 532,470,000 

CONSTRUCTION, MINOR PROJECTS

Fiscal year 2012 enacted level ........................................................... $482,386,000 

Fiscal year 2013 budget request ....................................................... 607,530,000 

Committee recommendation in the bill ............................................ 607,530,000 

Comparison with: 

Fiscal year 2012 enacted level ................................................... 125,144,000 

Fiscal year 2013 budget request ................................................ – – – 

The Construction, Minor Projects appropriation provides for constructing, altering, extending, and improving any of the facilities 

under the jurisdiction or for the use of the Department, including 

planning, assessment of needs, architectural and engineering services, and site acquisition, where the estimated cost of a project is 

less than $10,000,000. 

The Committee recommends an appropriation of $607,530,000 for 

Construction, Minor Projects, an increase of $125,144,000 above 

the fiscal year 2012 enacted level and the same as the budget request. As with the major construction account, the Committee recommendation makes these funds available for a five-year period 

rather than until expended, reflecting concern about the long period that VA has taken to design and build construction projects. 


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Inadequate controls on projects.—The Committee was disturbed 

to learn of rogue spending on a minor construction project at the 

Miami, FL medical center. Apparently, local and headquarters controls were either inadequate or ignored to permit the consolidation 

of two minor construction projects into one major construction 

project, along with the supplementation of that budget with substantial funding from the medical facilities account. These actions 

were taken completely without legislative authorization. Work on 

the project was 85 percent complete when headquarters finally 

issued a stop work order. VA is now in the process of investigating 

this disturbing breach. But the Committee has lost confidence in 

the ability of VA to manage its facility construction and directs the 

VA OIG to conduct its own investigation. The Committee requests 

the OIG to provide a report by September 30, 2012, describing the 

procedures, financial controls and the chain of command used by 

VA to: allocate appropriations for individual minor construction 

projects; determine the use of medical facilities funding at the 

VISN and medical center level; periodically review the obligations 

and construction progress on individual projects; provide independent verification and review of project budgeting, quality, and 

timeliness; and report to regional and headquarter offices on individual project design, construction and spending. The Committee is 

particularly concerned that VA may be inappropriately using medical facilities funding to supplement construction projects rather 

than incorporating those elements into the projects themselves and 

requests the OIG to investigate whether this has occurred in other 

construction projects. The Committee looks forward to recommendations from the OIG regarding any necessary internal VA 

procedural changes and/or Congressional action. 

BURR Initiative.—The Committee continues to be concerned that 

every effort be made to address housing needs of veterans, including the homeless and other special needs populations. The Building 

Utilization Review and Repurposing (BURR) Initiative, through its 

use of the Enhanced Use Lease authorities, was implemented to 

provide a vehicle for expanding the number of units available to 

the veteran community through the leverage of private sector funding. The Committee requests VA to provide not later than 90 days 

after the enactment of this Act an update on the current status of 

the program, including in its analysis current veteran participation 

and recommendations to advance its implementation. 

Health care center expansions.—Recognizing the lack of accessible 

VA services in many regions of the country, the Committee requested in the fiscal year 2012 report that VA include in the VA 

Strategic Capital Improvement Plan (SCIP) the expansion of existing VA health care centers to include inpatient accommodations, 

urgent care services, and the full range of services required by 

women veterans when the absence of such services locally requires 

veterans to make round trips of more than five hours to access 

such services at a VA facility. The Committee directs the VA to report whether any health care center facilities currently in the SCIP 

include inpatient accommodations and urgent care. If such facilities 

are not currently included in the SCIP, the report should provide 

an explanation of why this is not VA’s preferred mechanism to address veterans’ access problems. Such a report shall be due February 1, 2013. 


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Joint facilities.—The Committee continues to support the development of ‘‘joint’’ DOD/VA medical facilities, where feasible. Where 

either DOD or VA plans to construct new medical facilities, such 

as the hospitals at Fort Benning and Fort Bliss, the clinic at Fort 

Ord, etc., the Committee urges the Departments to consider a joint 

medical facility that can serve both active duty servicemembers 

and veterans. Additionally, House Report 112–94 directed the GAO 

to conduct a review of the effectiveness and cost-efficiency of joint 

facilities. The Committee looks forward to learning the results of 

this review and urges both the DOD and the VA to consider incorporating GAO recommendations in future budget requests. 

Historical artifacts.—The VA maintains historic buildings nationwide which house documents, photographs, and artifacts that are 

not stored at the National Archives and which are stored under 

conditions that do not meet Federal curation requirements. The 

Committee supports efforts by the Veterans Health Administration 

to take steps to improve storage and access by scholars and the 

public to historic artifacts that demonstrate the proud tradition of 

health care for veterans. The Committee also encourages VA to establish training for its personnel for the maintenance of these artifacts. 

GRANTS FOR CONSTRUCTION OF STATE EXTENDED CARE FACILITIES

Fiscal year 2012 enacted level ........................................................... $85,000,000 

Fiscal year 2013 budget request ....................................................... 85,000,000 

Committee recommendation in the bill ............................................ 85,000,000 

Comparison with: 

Fiscal year 2012 enacted level ................................................... – – – 

Fiscal year 2013 budget request ................................................ – – – 

This appropriation provides grants to assist States to construct 

State home facilities, for furnishing domiciliary or nursing home 

care to veterans, and to expand, remodel, or alter existing buildings 

for furnishing domiciliary, nursing home, or hospital care to veterans in State homes. A grant may not exceed 65 percent of the 

total cost of the project. 

The Committee recommends an appropriation of $85,000,000 for 

Grants for Construction of State Extended Care Facilities, available until expended, which is the same as the fiscal year 2012 enacted level and the budget request. 

GRANTS FOR CONSTRUCTION OF VETERANS CEMETERIES

Fiscal year 2012 enacted level ........................................................... $46,000,000 

Fiscal year 2013 budget request ....................................................... 46,000,000 

Committee recommendation in the bill ............................................ 46,000,000 

Comparison with: 

Fiscal year 2012 enacted level ................................................... – – – 

Fiscal year 2013 budget request ................................................ – – – 

This program provides grants to assist States and tribal governments with the establishment, expansion, and improvement of veterans cemeteries which are operated and permanently maintained 

by the States and tribal governments. Grants under this program 

fund up to 100 percent of construction costs and the initial equipment expenses when the cemetery is established. The States and 

tribal governments remain responsible for providing the land and 

for paying all costs related to the operation and maintenance of the 


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State cemeteries, including the costs for subsequent equipment 

purchases. The Committee recommends an appropriation of $46,000,000 for 

Grants for Construction of Veterans Cemeteries to be available 

until expended, which is the same as the fiscal year 2012 enacted 

level and the budget request. 

ADMINISTRATIVE PROVISIONS

The bill includes 28 provisions that were in effect in fiscal year 

2012 and 4 new provisions. The administrative provisions included 

in the bill are as follows: 

(INCLUDING TRANSFER OF FUNDS)

Section 201 allows for the transfer of funds among three mandatory appropriations. The Administration proposal to modify this 

provision is not adopted. 

(INCLUDING TRANSFER OF FUNDS)

Section 202 allows the Department to transfer funding among 

the three medical appropriations accounts in fiscal year 2013. The 

Administration proposal to modify this provision is not adopted. 

Section 203 allows for salaries and expenses funds to be used for 

hire of passenger vehicles, lease of facilities or land, and purchase 

of uniforms. 

Section 204 provides that only funding in the ‘‘Construction, 

major projects’’ and ‘‘Construction, minor projects’’ accounts can be 

used for the purchase of any site for any new hospital or home or 

to construct any new hospital or home. 

Section 205 requires the Department to be reimbursed for medical services it provides to any person not defined as a beneficiary 

to ensure the Department is receiving payment for all medical 

services provided. 

Section 206 allows for the use of funds appropriated in fiscal year 

2013 for ‘‘Compensation and pensions’’, ‘‘Readjustment benefits’’, 

and ‘‘Veterans insurance and indemnities’’ for payment of accrued 

obligations recorded in the last quarter of fiscal year 2012. 

Section 207 allows for the use of fiscal year 2013 funds to pay 

prior year obligations resulting from implementation of sections 

3328(a), 3334, and 3712(a) of title 31, United States Code. 

(INCLUDING TRANSFER OF FUNDS)

Section 208 allows the Department to use surplus earnings from 

the national service life insurance, U.S. Government life insurance, 

and veterans special life insurance program to administer these 

programs. 

Section 209 allows the Department to cover the administrative 

expenses of enhanced-use lease services and provides authority to 

obligate these reimbursements in the year funds are received. 

(INCLUDING TRANSFER OF FUNDS)

Section 210 limits the amount of reimbursement the Office of 

Resolution Management and the Office of Employment Discrimination Complaint Adjudication can charge other offices and accounts 

of the Department for services provided. 


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Section 211 requires the Secretary to submit a report to the 

Committees on Appropriations to approve new leases of real property if the estimated annual rental cost is more than $1,000,000. 

The Administration proposal to modify this provision is not adopted. 

Section 212 requires the Department to collect current and accurate third-party reimbursement information for the purposes of 

third-party insurance collections. If persons receiving care or medical services do not disclose this information, the Department is allowed to bill them reasonable charges for services provided. 

(INCLUDING TRANSFER OF FUNDS)

Section 213 allows the Department to use enhanced-use lease 

funds for construction and alteration of medical facilities. 

Section 214 allows the Department to use the ‘‘Medical services’’ 

appropriation for expenses related to the broader mission of medical care to veterans. 

(INCLUDING TRANSFER OF FUNDS)

Section 215 allows the Department to transfer Medical Care Collections to the ‘‘Medical services’’ appropriation to be used for veterans medical care and makes those funds available until expended. 

Section 216 allows veterans who reside in Alaska to obtain medical services from medical facilities supported by the Indian Health 

Service or tribal organizations, and provides for reimbursement for 

those services from the Department of Veterans Affairs. 

(INCLUDING TRANSFER OF FUNDS)

Section 217 allows the Department to transfer the proceeds received from the transfer of real property deposited into the Department of Veterans Affairs Capital Asset Fund to the major and 

minor construction appropriations and makes those funds available 

until expended. 

Section 218 provides that no funds may be used to prohibit Directors of the Veterans Integrated Service Networks from conducting outreach or marketing programs. The Administration proposed to delete this provision. 

Section 219 requires the Secretary to submit quarterly reports to 

the Committees on Appropriations of the House and Senate on the 

financial status of the Veterans Health Administration. The Administration proposed to delete this provision. 

(INCLUDING TRANSFER OF FUNDS)

Section 220 requires the Department to notify and receive approval from the Committees on Appropriations of any proposed 

transfer of funding to or from the ‘‘Information technology systems’’ 

account. The Administration proposal to modify this provision is 

not adopted. 

Section 221 limits the amount of funding made available under 

the ‘‘Medical facilities’’ account for non-recurring maintenance that 

may be obligated during the last two months of the fiscal year. The 

Administration proposal to delete this provision is not adopted. 


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(INCLUDING TRANSFER OF FUNDS)

Section 222 permits the transfer of $247,356,000 appropriated for 

medical accounts, minor construction, and information technology 

systems to the Joint Department of Defense-Department of Veterans Affairs Medical Facility Demonstration Fund for the operation of facilities designated as combined Federal medical facilities. 

(INCLUDING TRANSFER OF FUNDS)

Section 223 permits the transfer of funds deposited in the Medical Care Collections Fund to the Joint Medical Facility Demonstration Fund for facilities designated as combined Federal medical facilities. 

(INCLUDING TRANSFER OF FUNDS)

Section 224 directs that a minimum of $15,000,000 shall be 

transferred from three medical appropriations to the Department of 

Defense/Department of Veterans Affairs Health Care Sharing Incentive Fund, to be available until expended. 

(INCLUDING RESCISSIONS OF FUNDS)

Section 225 rescinds fiscal year 2013 funds from three medical 

accounts and re-appropriates them for fiscal year 2013 with twoyear availability. The amounts provided with two-year availability 

are $650,000,000 higher than in the fiscal year 2012 appropriation. 

Section 226 requires the Secretary to notify the Committees on 

Appropriations of both Houses of Congress of all bid savings in 

Major Construction projects that total at least $5,000,000, or five 

percent of the programmed amount, whichever is less. Such notification must occur within 14 days of a contract. The Secretary is required to notify the Committees 14 days prior to the obligation of 

such bid savings and shall describe the anticipated use of such savings. The budget request proposed to delete this provision. 

Section 227 prohibits the original scope of work for a Major Construction project from being increased above the scope specified for 

that project in the original justification data provided to the Congress as part of the request for appropriations. The budget request 

proposed to delete this provision. 

Section 228 requires the VA to provide a quarterly report on any 

single national outreach and awareness marketing campaign exceeding $2,000,000. The budget request proposed to delete this provision. 

Section 229 requires Congressional notification of significant 

funding requirements identified in updates to the enrollee projection model. 

Section 230 requires reprogramming if the Department wishes to 

change the spending on Health Services initiatives identified in the 

budget by ten percent or more. 

(INCLUDING RESCISSIONS OF FUNDS)

Section 231 rescinds funding already appropriated in Medical 

Care advance appropriations for the 0.5 percent cost of living adjustment for Federal employees that is proposed in the budget request. 


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Section 232 reduces fiscal year 2013 current year funded accounts by the amount of the 0.5 percent cost of living adjustment 

for Federal employees that is proposed in the budget request. 

TITLE III 

RELATED AGENCIES 

AMERICAN BATTLE MONUMENTS COMMISSION

SALARIES AND EXPENSES

Fiscal year 2012 enacted level ........................................................... $61,100,000 

Fiscal year 2013 budget request ....................................................... 58,400,000 

Committee recommendation in the bill ............................................ 59,290,000 

Comparison with: 

Fiscal year 2012 enacted level ................................................... (1,810,000) 

Fiscal year 2013 budget request ................................................ 890,000 

The American Battle Monuments Commission is responsible for 

the administration, operation and maintenance of cemetery and 

war memorials to commemorate the achievements and sacrifices of 

the American Armed Forces where they have served since April 6, 

1917. In performing these functions, the Commission maintains 24 

permanent American military cemetery memorials and 25 monuments, memorials, and markers. 

The Committee recommends an appropriation of $59,290,000 for 

the American Battle Monuments Commission’s salaries and expenses account, which is $890,000 more than the budget request. 

The Committee recommendation includes $5,000,000 for the interpretation program and does not include the requested pay raise. 

Language is included allowing up to $7,500 to be used for official 

reception and representation expenses. 

Manila American Cemetery.—The Committee strongly supports 

the American Battle Monuments Commission’s (ABMC) commitment to the promise made by the first ABMC Chairman, General 

Pershing—that ‘‘time will not dim the glory of their deeds’’. The 

Committee believes that the ABMC is doing an outstanding job of 

telling the stories of service and sacrifice in the European theater 

through interpretive center projects at the Cambridge American 

Cemetery in England, Sicily-Rome American Cemetery in Italy, 

and at the Pointe du Hoc Ranger Monument in Normandy, France. 

The Committee believes that the story of the Pacific Theater is just 

as significant and is pleased to see that the ABMC recognizes this 

as well. The Committee has included funding, as proposed in the 

budget request, for a perimeter wall and building improvements at 

the Manila American Cemetery. The Committee also understands 

that the ABMC is in the process of developing a master plan for 

the Manila American Cemetery that will improve the infrastructure of the cemetery and establish an enhanced interpretation program. The Committee is committed to telling the story of the Pacific theater and looks forward to the completion of the Manila 

master plan. 


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FOREIGN CURRENCY FLUCTUATIONS ACCOUNT

Fiscal year 2012 enacted level ........................................................... $16,000,000 

Fiscal year 2013 budget request est. ................................................ 15,200,000 

Committee recommendation in the bill est. ..................................... 15,200,000 

Comparison with: 

Fiscal year 2012 enacted level ................................................... (800,000) 

Fiscal year 2013 budget request ................................................ – – – 

The Commission’s Foreign Currency Fluctuations Account is authorized pursuant to 36 U.S.C. 2109 to pay the costs of salaries and 

expenses that exceed the amount appropriated because of fluctuations in currency exchange rates of foreign countries occurring after 

a budget request for the Commission is submitted to Congress. The 

account may not be used for any other purpose. 

The Committee recommendation includes bill language as proposed which makes ‘‘such sums as may be necessary’’ available to 

the Commission to cover unanticipated foreign currency fluctuations, currently estimated at $15,2000,000. 

UNITED STATES COURT OF APPEALS FOR VETERANS CLAIMS

SALARIES AND EXPENSES

Fiscal year 2012 enacted level ........................................................... $30,770,000 

Fiscal year 2013 budget request ....................................................... 32,481,000 

Committee recommendation in the bill ............................................ 31,187,000 

Comparison with: 

Fiscal year 2012 enacted level ................................................... 417,000 

Fiscal year 2013 budget request ................................................ (1,294,000) 

The Veterans’ Judicial Review Act established the U.S. Court of 

Appeals for Veterans Claims. The Court reviews appeals from 

claimants seeking review of a benefit denial. The Court has the authority to overturn findings of fact, regulations, and interpretations 

of law. 

The Committee recommends an appropriation of $31,187,000 for 

the U.S. Court of Appeals for Veterans Claims, an increase of 

$417,000 above the fiscal year 2012 enacted level and $1,294,000 

below the budget request. The recommendation does not include 

the requested pay raise and reduces the amount available for rent. 

Of the amount provided, $2,726,000 is to be used for the pro bono 

representation program. 

DEPARTMENT OF DEFENSE—CIVIL CEMETERIAL EXPENSES, ARMY

SALARIES AND EXPENSES

Fiscal year 2012 enacted level ........................................................... $45,800,000 

Fiscal year 2013 budget request ....................................................... 45,800,000 

Committee recommendation in the bill ............................................ 173,733,000 

Comparison with: 

Fiscal year 2012 enacted level ................................................... 127,933,000 

Fiscal year 2012 budget request ................................................ 127,933,000 

The Secretary of the Army is responsible for the administration, 

operation and maintenance of Arlington National Cemetery and 

the Soldiers’ and Airmen’s Home National Cemetery. In addition to 

its principal function as a national cemetery, Arlington is the site 

of approximately 3,000 non-funeral ceremonies each year and has 

approximately 4,000,000 visitors annually. 


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The Committee does not support the budget request proposal to 

fund Arlington National Cemetery through three separate accounts 

contained in two different appropriations bills. The budget request 

proposed $25,000,000 to be provided through Operation and Maintenance, Army, $103,000,000 to be provided through Military Construction, Army, and $45,800,000 to be provided through 

Cemeterial Expenses, Army for a total of $173,800,000. The Committee recommends an appropriation of $173,733,000 for 

Cemeterial Expenses, Army. The Committee recommendation does 

not include funds requested for a pay increase. 

The Committee directs future budget requests for Cemeterial Expenses, Army to include additional programmatic information on 

information technology (IT) beginning in fiscal year 2014. The 

budget request shall include a description of the IT activities funded, the total cost and FTEs for these activities, and the activities, 

cost, and FTEs included in the budget request. Further, the Committee directs that the budget request indicate whether the activities are for IT development or operations and maintenance. 

The Committee recommendation includes bill language that designates not less than $84,000,000 for the Millennium Project. 

ARMED FORCES RETIREMENT HOME

OPERATION AND MAINTENANCE

Fiscal year 2012 enacted level ........................................................... $65,700,000 

Fiscal year 2013 budget request ....................................................... 65,590,000 

Committee recommendation in the bill ............................................ 65,590,000 

Comparison with: 

Fiscal year 2012 enacted level ................................................... (110,000) 

Fiscal year 2013 budget request ................................................ – – – 

The Armed Forces Retirement Home (AFRH) consists of two retirement communities, one in Washington, D.C. and the other in 

Gulfport, Mississippi. The Washington, D.C. facility was established in 1851 as a soldiers’ home for elderly and disabled veterans. 

The original home for Navy officers, sailors, and Marines was established in Philadelphia, Pennsylvania in 1811, and was relocated 

to Gulfport, Mississippi almost a century and a half later. 

The Committee recommendation provides authority to expend 

$65,590,000 from the Armed Forces Retirement Home Trust Fund 

to operate and maintain the Armed Forces Retirement Home— 

Washington, District of Columbia, and the Armed Forces Retirement Home—Gulfport, Mississippi. The amount recommended is 

$110,000 below the fiscal year 2012 enacted level and equal to the 

budget request. 

CAPITAL PROGRAM

Fiscal year 2012 enacted level ........................................................... $2,000,000 

Fiscal year 2013 budget request ....................................................... 2,000,000 

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

Comparison with: 

Fiscal year 2012 enacted level ................................................... – – – 

Fiscal year 2013 budget request ................................................ – – – 

The Committee recommendation provides authority to expend 

$2,000,000 from the Armed Forces Retirement Home Trust Fund 

for construction and renovations. The amount recommended is the 


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same as the fiscal year 2012 enacted level and equal to the budget 

request. 

GENERAL FUND PAYMENT, ARMED FORCES RETIREMENT HOME

Fiscal year 2012 enacted level ........................................................... $14,630,000 

Fiscal year 2013 budget request ....................................................... – – – 

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

Comparison with: 

Fiscal year 2012 enacted level ................................................... ($14,630,000) 

Fiscal year 2013 budget request ................................................ – – – 

The Committee recommendation does not include a general funds 

payment for the Armed Forces Retirement Home. Funds were provided in fiscal year 2012 to mitigate structural damage sustained 

to buildings as a result of the earthquake in Washington, D.C. The 

budget request did not propose any additional funds for this purpose for fiscal year 2013, and the Committee anticipates that funding provided in fiscal year 2012 will be sufficient to accomplish necessary repairs. 

TITLE IV 

OVERSEAS CONTINGENCY OPERATIONS 

DEPARTMENT OF DEFENSE

Fiscal year 2012 enacted level (title IV) ........................................... $269,703,000 

Fiscal year 2013 budget request (title IV) ........................................ – – – 

Committee recommendation in the bill (title IV) ............................. 150,768,000 

Comparison with: 

Fiscal year 2012 enacted level (title IV) .................................... (118,935,000) 

Fiscal year 2013 budget request (title IV) ................................ 150,768,000 

MILITARY CONSTRUCTION, NAVY AND MARINE CORPS

The Committee recommendation includes a new title IV, Overseas Contingency Operations. Title IV provides $150,768,000 for 

Navy and Marine Corps military construction projects in the Central Command and Africa Command Areas of Responsibility that 

were requested in title I, Military Construction, in the budget submission for fiscal year 2013. The Committee agrees that the 

projects transferred to title IV are necessary to support the war on 

terrorism and should be designated as overseas contingency operations functions. 

ADMINISTRATIVE PROVISIONS

(INCLUDING RESCISSION OF FUNDS)

The bill includes section 401 rescinding unobligated balances 

from section 2005 in title X, of Public Law 112–10 and division H 

in title IV, of Public Law 112–74 in the specific amount of 

$150,768,000. 

The bill includes section 402 that amounts designated in this Act 

by the Congress for Overseas Contingency Operations/Global War 

on Terrorism pursuant to section 251(b)(2)(A)(ii) of the Balanced 

Budget and Emergency Deficit Control Act of 1985 shall be available (or rescinded, if applicable) only if the President subsequently 

so designates all such amounts and transmits such designations to 

the Congress. 


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TITLE V 

GENERAL PROVISIONS 

The bill includes 13 provisions that are effective in fiscal year 

2012 and five new provisions as follows: 

Section 501 prohibits the obligation of funds beyond the current 

fiscal year unless expressly so provided. 

Section 502 prohibits the use of funds for programs, projects or 

activities not in compliance with Federal law relating to risk assessment, the protection of private property rights, or unfunded 

mandates. 

Section 503 prohibits the use of funds to support or defeat legislation pending before Congress. 

Section 504 encourages all departments and agencies funded in 

this Act to expand the use of ‘‘E-Commerce’’ technologies and procedures. 

Section 505 specifies the Congressional committees that are to 

receive all reports and notifications. 

Section 506 is made permanent and prohibits the transfer of 

funds to any instrumentality of the United States Government 

without authority from an appropriations Act. 

Section 507 prohibits any funds in this Act to be used for a 

project or program named for an individual serving as a Member, 

Delegate, or Resident Commissioner of the United States House of 

Representatives. 

Section 508 requires all reports submitted to the Congress to be 

posted on official websites of the submitting agency. 

Section 509 prohibits the use of funds to establish or maintain 

a computer network unless such network blocks the viewing, 

downloading, and exchanging of pornography, except for law enforcement investigation, prosecution or adjudication activities. 

Section 510 prohibits funds in this Act for the Association of 

Community Organizations for Reform Now. 

Section 511 prohibits the use of funds made available in this Act 

to exercise the power of eminent domain without just compensation. 

Section 512 prohibits the use of funds in this Act for the renovation, expansion, or construction of any facility in the continental 

United States for the purpose of housing any individual who has 

been detained at the United States Naval Station, Guantanamo 

Bay, Cuba. 

Section 513 prohibits the use of funds for payment of first-class 

travel by an employee of the executive branch. 

Section 514 prohibits the use of funds in this Act for any contract 

where the contractor has not complied with E-Verify requirements. 

Section 515 prohibits the use of funds in this Act for any contract, memorandum of understanding, or cooperative agreement 

with any corporation convicted of a felony criminal violation within 

the preceding 24 months. 

Section 516 prohibits the use of funds in this Act for any contract, memorandum of understanding, or cooperative agreement 

with any corporation with an unpaid tax liability. 

Section 517 prohibits the use of funds for construction bid solicitations that require or prohibit project labor agreements. 


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Section 518 establishes a ‘‘Spending Reduction Account’’ in the 

bill. 

HOUSE OF REPRESENTATIVES REPORT REQUIREMENTS

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

CHANGES IN APPLICATION OF EXISTING LAW

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

House of Representatives, the following statements are submitted 

describing the effect of provisions in the accompanying bill that directly or indirectly change the application of existing law. 

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

Language is included in various parts of the bill to place limitations on the use of funds in the bill or change existing limitations 

and which might, under some circumstances, be construed as 

changing the application of existing law. 

Language is included in various parts of the bill to allow the Secretary of Defense to exceed certain limitations upon notification to 

the Committee. 

Language is included in various parts of the bill to allow funding 

to be used for official reception and representation expenses. 

Language is included in various parts of the bill to enable various appropriations to remain available for more than one year for 

some programs for which the basic authority legislation does not 

presently authorize such extended availability. 

Language is included in various parts of the bill to permit the 

transfer of funds to other accounts. 

Language is included under Title I to prohibit payments for costplus-a-fixed-fee contracts under certain circumstances. 

Language is included in various parts of the bill to allow funds 

to be used for the hire of passenger motor vehicles. 

Language is included under Title I to allow advances to the Federal Highway Administration, Department of Transportation under 

certain circumstances. 

Language is included under Title I to prohibit the use of funds 

to begin construction of new bases without specific appropriations. 

Language is included under Title I to prohibit the use of funds 

for purchase of land or land easements under certain circumstances. 

Language is included under Title I to prohibit the use of funds 

for land acquisition, site preparation, and utility installation for 

family housing unless funds have been made available in annual 

appropriations Acts. 

Language is included under Title I to prohibit the use of minor 

construction funds to transfer an activity between installations 

without prior notification. 

Language is included under Title I to prohibit the use of funds 

for the procurement of steel for any activity if American steel producers have been denied the opportunity to compete for such steel 

procurements. 


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Language is included under Title I to prohibit the use of funds 

to pay real property taxes in any foreign nation. 

Language is included under Title I to prohibit the use of funds 

to initiate a new installation overseas without prior notification. 

Language is included under Title I to limit the use of funds for 

architect and engineer contracts under certain circumstances. 

Language is included under Title I to limit the use of funds for 

awarding contracts to foreign contractors under certain circumstances. 

Language is included under Title I to require the Department of 

Defense to notify the appropriate committees of Congress of any 

proposed military exercises under certain circumstances. 

Language is included under Title I to allow prior year construction funding to be available for currently authorized projects. 

Language is included under Title I to allow payment for the cost 

associated with supervision, inspection, overhead, engineering and 

design on family housing or military construction projects that are 

being completed with expired or lapsed funds. 

Language is included under Title I to allow funds to be expended 

on military construction projects for four fiscal years after enactment under certain circumstances. 

Language is included under Title I to allow for the transfer of 

BRAC proceeds to the BRAC account. 

Language is included under Title I to allow construction funds to 

be transferred to Housing Improvement Funds. 

Language is included under Title I to allow for the transfer of 

BRAC funds to the Homeowners Assistance Program. 

Language is included under Title I to limit funds for the operation and maintenance of family housing to those provided in this 

appropriation and to limit amounts expended on repairs of general 

and flag officer quarters under certain circumstances. 

Language is included under Title I to allow funds in the Ford Island Improvement Account to be available until expended for certain purposes. 

Language is included under Title I to limit funds for projects at 

closed or realigned installations under certain circumstances. 

Language is included under Title I to allow for the transfer of expired funding to the Foreign Currency Fluctuation Account under 

certain circumstances. 

Language is included under Title I limiting the number of parking spaces that may be occupied at the BRAC office complex in Alexandria, Virginia. 

Language is included under Title I limiting funds available for 

expansion of Pinon Canyon Maneuver Site, Colorado. 

Language is included under Title I limiting movement of an 

Army unit with a testing mission. 

Language is included under Title I that rescinds funds from prior 

year appropriations Acts. 

Language is included under Title I that rescinds unobligated 

funds from BRAC 2005 account. 

Language is included under Title I reducing the amount available for civilian pay raise. 

Language is included under Title I to allow for the transfer of 

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Language is included under Title II to require that the Secretary 

of Veterans Affairs establish a priority for treatment of veterans 

who are service-connected disabled, lower income, or have special 

needs. 

Language is included under Title II to require that the Secretary 

of Veterans Affairs give priority funding of basic medical benefits 

to priority groups 1 through 6. 

Language is included under Title II to allow the Secretary of Veterans Affairs to dispense prescription drugs from VHA facilities to 

enrolled veterans with privately written prescriptions. 

Language is included under Title II providing for the reimbursement to the Department of Defense for the costs of overseas employee mail. 

Language is included under Title II to require approval of a 

transfer between development, modernization, and enhancement 

projects in the information technology systems account. 

Language is included under Title II establishing time limitations 

and reporting requirements concerning the obligation of major construction funds, limiting the use of funds, and allowing the use of 

funds for program costs. 

Language is included under Title II to allow minor construction 

funds to be used to repair non-medical facilities damaged by natural disaster or catastrophe. 

Language is included under Title II permitting transfers between 

mandatory and discretionary accounts, limiting and providing for 

the use of certain funds, funding administrative expenses associated with life insurance programs from excess program revenues, 

allowing reimbursement from enhanced-use leases and for certain 

services, requiring notification of new lease agreements, requiring 

disclosure of insurance and income information, allowing a recovery 

audit collection program, allowing veterans in the State of Alaska 

to use Indian Health Service facilities under certain conditions, allowing medical services funds for recreational and funeral expenses, limiting the obligation of non-recurring maintenance funds 

during the last two months of the fiscal year, requiring notification 

of changed funding needs because of enrollee health projection 

model changes, and requiring approval of a reprogramming prior to 

any major reallocation of medical services initiatives funding. 

Language is included under the Court of Appeals for Veterans 

Claims, Salaries and Expenses, to permit the use of funds for a pro 

bono program. 

Language is included under Cemeterial Expenses, Army, Salaries 

and Expenses, to permit the use of funds for parking maintenance 

and repairs. 

Language is included under Cemeterial Expenses, Army, Salaries 

and Expenses, to permit the use of funds to relocate a water main. 

Language is included under Title IV that rescinds funds from 

overseas contingency operations in prior year appropriations Acts. 

Language is included under Title IV to designate funds for overseas contingency operations. 

Language is included under Title V to limit the use of funds for 

Federal entities when they are not in compliance with Federal law 

relating to risk assessment, the protection of private property 

rights, or unfunded mandates. 


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Language is included under Title V to limit the use of funds for 

publicity or propaganda designed to support or defeat legislation 

pending before Congress. 

Language is included under Title V to prohibit the use of funds 

for a project or program named for a serving Member of the United 

States Congress. 

Language is included under Title V prohibiting funds from being 

used to maintain or establish a computer network unless such network blocks the viewing, downloading, and exchanging of pornography. 

Language is included under Title V to prohibit funding being distributed to the Association of Community Organizations for Reform 

Now or its subsidiaries. 

Language is included under Title V prohibiting funds from being 

used to exercise the power of eminent domain without just compensation. 

Language is included under Title V prohibiting funds from being 

used to pay for first class travel in violation of federal regulations. 

Language is included under Title V prohibiting funds from being 

used to execute a contract for goods or services where a contractor 

has not complied with Executive Order 12989. 

Language is included under Title V prohibiting funds from being 

provided to any corporation that was convicted of a felony criminal 

violation. 

Language is included under Title V prohibiting funds from being 

provided to a corporation with an unpaid Federal tax liability. 

APPROPRIATIONS NOT AUTHORIZED BY LAW

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

House of Representatives, the following table lists the appropriations in the accompanying bill which are not authorized by law for 

the period concerned: 


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TRANSFER OF FUNDS

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

of Representatives, the following statements are submitted describing the transfer of funds provided in the accompanying bill. 

Language is included to allow Military Construction, DefenseWide funds to be transferred to other military construction and 

family housing appropriations to be merged with and available for 

the same purpose and same time period. 

Language is included to allow BRAC proceeds to be transferred 

to the BRAC account to be merged with and available for the same 

purpose and same time period. 

Language is included to allow for the transfer of funds from 

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

Construction accounts to the Department of Defense Military Unaccompanied Housing Improvement Fund. 

Language is included to provide transfer authority from the 

BRAC account to the Homeowners Assistance Program. 

Language is included to allow the transfer of expired funds to the 

‘‘Foreign Currency Fluctuations, Construction, Defense’’ account. 

Language is included to allow the transfer of Family Housing Improvement Funds to the Secretary of the Navy for execution as the 

request of the Navy. 

Language is included to transfer not to exceed $9,204,000 from 

Compensation and Pensions to General Operating Expenses, Veterans Benefits Administration, Medical Support and Compliance, 

and Information Technology Systems. These funds are for the administrative costs of implementing cost-savings proposals required 

by the Omnibus Budget Reconciliation Act of 1990 and the Veterans’ Benefits Act of 1992. Language is also included transferring 

funds to the medical care collections fund to augment funding of 

medical facilities for nursing home care provided to pensioners. 

Language is included to permit the transfer of funds from General Administration to General Operating Expenses, Veterans Benefits Administration. 

Language is included to provide authority for the Department of 

Veterans Affairs for any funds appropriated in 2013 for Compensation and Pensions, Readjustment Benefits, and Veterans Insurance 

and Indemnities to be transferred among those three accounts. 

Language is included to transfer funds among the Medical Services, Medical Support and Compliance, and Medical Facilities accounts. 

Language is included to permit the funds from three life insurance funds to be transferred to General Operating Expenses, Veterans Benefits Administration and Information Technology Systems for the costs of administering such programs. 

Language is included to permit up to $46,264,000 to be transferred to General Administration and Information Technology Systems from any funds appropriated in fiscal year 2012 to reimburse 

the Office of Resolution Management and the Office of Employment 

and Discrimination Complaint Adjudication for services provided. 

Language is included to transfer certain funds derived from enhanced-use leasing activities to the Construction, Major Projects 

and Construction, Minor Projects accounts. 


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Language is included to transfer funds from the Medical Care 

Collections Fund to the Medical Services account. 

Language is included to allow the transfer of funds from the Capital Asset Fund to the Construction, Major Projects and Construction, Minor Projects accounts. 

Language is included to allow the transfer of funds from various 

accounts to the Information Technology Systems account subject to 

approval by the Committee. 

Language is included to allow the transfer of development, modernization, and enhancement funds within Information Technology 

Systems between projects subject to approval by the Committee. 

Language is included to allow the transfer of funds provided for 

the Department of Veterans Affairs to the Joint Department of Defense-Department of Veterans Affairs Medical Facility Demonstration Fund. 

Language is included permitting funds deposited to the Medical 

Care Collections Fund for health care provided at a combined Federal medical facility to be transferred to the Joint Department of 

Defense-Department of Veterans Affairs Medical Facility Demonstration Fund. 

Language is included under the Department of Veterans Affairs that would transfer no less than $15,000,000 for the DoD/VA 

Health Care Sharing Incentive Fund as authorized by section 

8111(d) of title 38, United States Code. 

RESCISSIONS

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

of Representatives, the following table lists the rescissions in the 

accompanying bill: 

DEPARTMENT/ACTIVITY

AMOUNTS RECOMMENDED FOR RESCISSION

Department of Defense, Military Construction, Defense-Wide ...... $20,000,000 

Department of Defense, BRAC 2005 ................................................. 212,291,000 

Department of Defense, Overseas Contingency Operations ........... 150,768,000 

Department of Veterans Affairs, Medical services .......................... 62,924,000 

Department of Veterans Affairs, Medical support and compliance 12,737,000 

Department of Veterans Affairs, Medical facilities ......................... 5,593,000 

CONSTITUTIONAL AUTHORITY

Pursuant to section 6(e) of the Committee Rules, the following 

statement is submitted regarding the specific powers granted to 

Congress in the Constitution to enact the accompanying bill or joint 

resolution. 

The principal constitutional authority for this legislation is 

clause 7 of section 9 of article I of the Constitution of the United 

States (the appropriation power), which states: ‘‘No Money shall be 

drawn from the Treasury, but in Consequence of Appropriations 

made by Law. . . .’’ In addition, clause 1 of section 8 of article I 

of the Constitution (the spending power) provides: ‘‘The Congress 

shall have the Power . . . to pay the Debts and provide for the common Defence and general Welfare of the United States . . . .’’ Together, these specific constitutional provisions establish the congressional power of the purse, granting Congress the authority to 


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appropriate funds, to determine their purpose, amount, and period 

of availability, and to set forth terms and conditions governing 

their use. 

COMPARISON WITH THE BUDGET RESOLUTION

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

of Representatives and section 308(a)(1)(A) of the Congressional 

Budget Act of 1974, the following table compares the levels of new 

budget authority provided in the bill with the appropriate allocation under section 302(b) of the Budget Act. 

[In millions of dollars] 

302(b) Allocation This bill 

Budget 

authority Outlays Budget authority Outlays 

Mandatory ...................................................................................... 71,576 71,331 71,576 1 71,331 

Discretionary .................................................................................. 71,747 79,071 71,747 79,071 

General Purpose .................................................................... 71,747 79,069 71,747 79,069 

Overseas Contingency ........................................................... 0 2 0 2 

1 Includes outlays from prior-year budget authority. 

FIVE-YEAR PROJECTION OF OUTLAYS

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

of Representatives and section 308(a)(1)(B) of the Congressional 

Budget Act of 1974, the following table contains five-year projections prepared by the Congressional Budget Office of outlays associated with the budget authority provided in the accompanying bill: 

Outlays: 

2013 ......................................................................................................... 2 79,281 

2014 ......................................................................................................... 6,001 

2015 ......................................................................................................... 4,582 

2016 ......................................................................................................... 1,746 

2017 and future years ........................................................................... 1,354 

2 Excludes outlays from prior-year budget authority. 

ASSISTANCE TO STATE AND LOCAL GOVERNMENTS

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

of Representatives and section 308(a)(1)(C) of the Congressional 

Budget Act of 1974, the amount of financial assistance to State and 

local governments is as follows: Millions 

Budget Authority ................................................................................... $142 

Fiscal Year 2013 outlays resulting therefrom ..................................... 2 

STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES

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

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

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

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


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COMPLIANCE WITH RULE XIII, CL. 3(e) (RAMSEYER RULE) 

In compliance with clause 3(e) of rule XIII of the Rules of the 

House of Representatives, the Committee notes that the accompanying bill does not propose to repeal or amend a statute or part 

thereof. 

FULL COMMITTEE VOTES

Pursuant to the provisions of clause 3(b) of rule XIII of the House 

of Representatives, the results of each roll call vote on an amendment or on the motion to report, together with the names of those 

voting for and those voting against, are printed below: 

There were no roll call votes. 

DISCLOSURE OF EARMARKS AND CONGRESSIONALLY DIRECTED

SPENDING ITEMS

Neither the bill nor the report contains any Congressional earmarks, limited tax benefits, or limited tariff benefits as defined in 

clause 9 of rule XXI. 

STATE LIST

The following is a complete listing, by title, State and country, 

of the Committee’s recommendations for military construction and 

family housing projects: 


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MINORITY VIEWS 

The fiscal year 2013 Military Construction, Veterans’ Administration and Related Agencies appropriations bill sufficiently funds 

critical military construction, family housing and quality of life improvements and enhancements for our brave men and women in 

uniform and their families. In addition, this bill provides adequate 

funding for VA programs, and it provides a satisfactory amount of 

funding for our heroes who have made the ultimate sacrifice and 

are honored in the battle monuments and cemeteries that are funded in this bill. 

While the allocation for the fiscal year 2013 Military Construction, Veterans’ Administration and Related Agencies appropriations 

bill is adequate, we are very disappointed that House Republicans 

walked away from the hard fought bipartisan agreement reached 

to establish a discretionary spending cap of $1.047 trillion for fiscal 

year 2013 and instead opted to create a new number, $19 billion 

below what we agreed to. This puts House Republicans at odds 

with the President, Democrats and Republicans in the Senate, and 

House Democrats who have all maintained that we must stick to 

the Budget Control Act allocation which is defined in statute. The 

lower allocation, if it stays in effect, will vastly slow down economic 

growth, impede job creation, and cause more uncertainty. 

We believe that the position of House Republicans is unsustainable and that by the end of the process we will be back to the 

agreed upon allocation of $1.047 trillion with their breach of trust 

having only served to slow the process down. 

During Full Committee consideration, the Committee adopted by 

voice vote an amendment to prohibit the use of Project Labor 

Agreements (PLA). The amendment nullifies the decision-making 

ability of the Department of Defense, Department of Veterans Affairs, American Battle Monuments Commission, Court of Appeals 

for Veterans Claims, and Arlington National Cemetery, to use a 

PLA business model. All of these agencies currently have two 

choices: either ‘‘yes’’ we want to use a PLA or ‘‘no’’ we don’t want 

to use PLA. The new language does not allow them to make a ‘‘yes’’ 

or ‘‘no’’ choice. PLAs ensure that construction projects are built correctly the first time, on time, and as a result, on budget for the end 

user. In addition, PLAs prevent costly delays that usually result 

from an unskilled workforce’s lack of knowledge regarding the use 

of building materials or tools as well as job site safety measures. 

By including the ban on PLAs, the bill will delay new construction 

and add to the end cost. 


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In conclusion, we commend the Chairman for his efforts in setting the funding levels in the bill and being receptive to Democratic 

Members’ concerns; however, we are extremely disappointed that 

Republicans chose to include an ideological, divisive policy rider in 

a bill that is known for strong bipartisan support. 

NORMAN D. DICKS. 

SANFORD D. BISHOP, JR. 

Æ 


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