IB 
Union Calendar No. 88
108TH CONGRESS 
1ST SESSION H. R. 2559
[Report No. 108–173] 
Making appropriations for military construction, family housing, and base 
realignment and closure for the Department of Defense for the fiscal 
year ending September 30, 2004, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 23, 2003
Mr. KNOLLENBERG, from the Committee on Appropriations, reported the fol-
lowing bill; which was committed to the Committee of the Whole House 
on the State of the Union and ordered to be printed 
A BILL 
Making appropriations for military construction, family hous-
ing, and base realignment and closure for the Depart-
ment of Defense for the fiscal year ending September 
30, 2004, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
That the following sums are appropriated, out of any 
money in the Treasury not otherwise appropriated for 
military construction, family housing, and base realign-
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ment and closure functions administered by the Depart-
ment of Defense, for the fiscal year ending September 30, 
2004, and for other purposes, namely:
MILITARY CONSTRUCTION, ARMY 
(INCLUDING RESCISSIONS) 
For acquisition, construction, installation, and equip-
ment of temporary or permanent public works, military 
installations, facilities, and real property for the Army as 
currently authorized by law, including personnel in the 
Army Corps of Engineers and other personal services nec-
essary for the purposes of this appropriation, and for con-
struction and operation of facilities in support of the func-
tions of the Commander in Chief, $1,533,660,000, to re-
main available until September 30, 2008: Provided, That 
of this amount, not to exceed $122,710,000 shall be avail-
able for study, planning, design, architect and engineer 
services, and host nation support, as authorized by law, 
unless the Secretary of Defense determines that additional 
obligations are necessary for such purposes and notifies 
the Committees on Appropriations of both Houses of Con-
gress of his determination and the reasons therefor: Pro-
vided further, That of the funds appropriated for ‘‘Military 
Construction, Army’’ under Public Law 107–249, 
$142,200,000 are rescinded: Provided further, That of the 
funds appropriated for ‘‘Military Construction, Army’’
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under Public Law 107–64, $24,000,000 are rescinded: 
Provided further, That of the funds appropriated for ‘‘Mili-
tary Construction, Army’’ under Public Law 106–246, 
$17,415,000 are rescinded. 
MILITARY CONSTRUCTION, NAVY 
(INCLUDING RESCISSIONS) 
For acquisition, construction, installation, and equip-
ment of temporary or permanent public works, naval in-
stallations, facilities, and real property for the Navy as 
currently authorized by law, including personnel in the 
Naval Facilities Engineering Command and other per-
sonal services necessary for the purposes of this appropria-
tion, $1,211,077,000, to remain available until September 
30, 2008: Provided, That of this amount, not to exceed 
$65,612,000 shall be available for study, planning, design, 
architect and engineer services, as authorized by law, un-
less the Secretary of Defense determines that additional 
obligations are necessary for such purposes and notifies 
the Committees on Appropriations of both Houses of Con-
gress of his determination and the reasons therefor: Pro-
vided further, That of the funds appropriated for ‘‘Military 
Construction, Navy’’ under Public Law 107–249, 
$27,213,000 are rescinded: Provided further, That of the 
funds appropriated for ‘‘Military Construction, Navy’’ 
under Public Law 107–64, $12,109,000 are rescinded.
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MILITARY CONSTRUCTION, AIR FORCE 
For acquisition, construction, installation, and equip-
ment of temporary or permanent public works, military 
installations, facilities, and real property for the Air Force 
as currently authorized by law, $896,136,000, to remain 
available until September 30, 2008: Provided, That of this 
amount, not to exceed $80,543,000 shall be available for 
study, planning, design, architect and engineer services, 
as authorized by law, unless the Secretary of Defense de-
termines that additional obligations are necessary for such 
purposes and notifies the Committees on Appropriations 
of both Houses of Congress of his determination and the 
reasons therefor. 
MILITARY CONSTRUCTION, DEFENSE-WIDE 
(INCLUDING RESCISSION AND TRANSFER OF FUNDS) 
For acquisition, construction, installation, and equip-
ment of temporary or permanent public works, installa-
tions, facilities, and real property for activities and agen-
cies of the Department of Defense (other than the military 
departments), 
as 
currently 
authorized 
by 
law, 
$813,613,000, to remain available until September 30, 
2008: Provided, That such amounts of this appropriation 
as may be determined by the Secretary of Defense may 
be transferred to such appropriations of the Department 
of Defense available for military construction or family
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housing as he may designate, to be merged with and to 
be available for the same purposes, and for the same time 
period, as the appropriation or fund to which transferred: 
Provided further, That of the amount appropriated, not 
to exceed $63,884,000 shall be available for study, plan-
ning, design, architect and engineer services, as authorized 
by law, unless the Secretary of Defense determines that 
additional obligations are necessary for such purposes and 
notifies the Committees on Appropriations of both Houses 
of Congress of his determination and the reasons therefor: 
Provided further, That of the funds appropriated for ‘‘Mili-
tary Construction, Defense-wide’’ under Public Law 107–
249, $32,680,000 are rescinded. 
MILITARY CONSTRUCTION, ARMY NATIONAL GUARD 
For construction, acquisition, expansion, rehabilita-
tion, and conversion of facilities for the training and ad-
ministration of the Army National Guard, and contribu-
tions therefor, as authorized by chapter 1803 of title 10, 
United States Code, and Military Construction Authoriza-
tion Acts, $208,033,000, to remain available until Sep-
tember 30, 2008. 
MILITARY CONSTRUCTION, AIR NATIONAL GUARD 
For construction, acquisition, expansion, rehabilita-
tion, and conversion of facilities for the training and ad-
ministration of the Air National Guard, and contributions
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therefor, as authorized by chapter 1803 of title 10, United 
States Code, and Military Construction Authorization 
Acts, $77,105,000, to remain available until September 
30, 2008. 
MILITARY CONSTRUCTION, ARMY RESERVE 
For construction, acquisition, expansion, rehabilita-
tion, and conversion of facilities for the training and ad-
ministration of the Army Reserve as authorized by chapter 
1803 of title 10, United States Code, and Military Con-
struction Authorization Acts, $84,569,000, to remain 
available until September 30, 2008. 
MILITARY CONSTRUCTION, NAVAL RESERVE 
For construction, acquisition, expansion, rehabilita-
tion, and conversion of facilities for the training and ad-
ministration of the reserve components of the Navy and 
Marine Corps as authorized by chapter 1803 of title 10, 
United States Code, and Military Construction Authoriza-
tion Acts, $38,992,000, to remain available until Sep-
tember 30, 2008. 
MILITARY CONSTRUCTION, AIR FORCE RESERVE 
For construction, acquisition, expansion, rehabilita-
tion, and conversion of facilities for the training and ad-
ministration of the Air Force Reserve as authorized by 
chapter 1803 of title 10, United States Code, and Military
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Construction Authorization Acts, $56,212,000, to remain 
available until September 30, 2008. 
NORTH ATLANTIC TREATY ORGANIZATION 
SECURITY INVESTMENT PROGRAM 
For the United States share of the cost of the North 
Atlantic Treaty Organization Security Investment Pro-
gram for the acquisition and construction of military fa-
cilities and installations (including international military 
headquarters) and for related expenses for the collective 
defense of the North Atlantic Treaty Area as authorized 
in Military Construction Authorization Acts and section 
2806 of title 10, United States Code, $169,300,000, to 
remain available until expended. 
FAMILY HOUSING CONSTRUCTION, ARMY 
(INCLUDING RESCISSION) 
For expenses of family housing for the Army for con-
struction, including acquisition, replacement, addition, ex-
pansion, extension and alteration, as authorized by law, 
$409,191,000, to remain available until September 30, 
2008: Provided, That of the funds appropriated for ‘‘Fam-
ily Housing Construction, Army’’ under Public Law 107–
249, $52,300,000 are rescinded.
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FAMILY HOUSING OPERATION AND MAINTENANCE, 
ARMY 
For expenses of family housing for the Army for op-
eration and maintenance, including debt payment, leasing, 
minor construction, principal and interest charges, and in-
surance premiums, as authorized by law, $1,043,026,000. 
FAMILY HOUSING CONSTRUCTION, NAVY AND MARINE 
CORPS 
(INCLUDING RESCISSION) 
For expenses of family housing for the Navy and Ma-
rine Corps for construction, including acquisition, replace-
ment, addition, expansion, extension and alteration, as au-
thorized by law, $184,193,000, to remain available until 
September 30, 2008: Provided, That of the funds appro-
priated for ‘‘Family Housing Construction, Navy and Ma-
rine Corps’’ under Public Law 107–249, $3,585,000 are 
rescinded. 
FAMILY HOUSING OPERATION AND MAINTENANCE, 
NAVY AND MARINE CORPS 
For expenses of family housing for the Navy and Ma-
rine Corps for operation and maintenance, including debt 
payment, leasing, minor construction, principal and inter-
est charges, and insurance premiums, as authorized by 
law, $852,778,000.
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FAMILY HOUSING CONSTRUCTION, AIR FORCE 
(INCLUDING RESCISSIONS) 
For expenses of family housing for the Air Force for 
construction, including acquisition, replacement, addition, 
expansion, extension and alteration, as authorized by law, 
$657,065,000, to remain available until September 30, 
2008: Provided, That of the funds appropriated for ‘‘Fam-
ily Housing Construction, Air Force’’ under Public Law 
107–249, $19,347,000 are rescinded: Provided further, 
That of the funds appropriated for ‘‘Family Housing Con-
struction, Air Force’’ under Public Law 105–237, 
$9,692,000 are rescinded. 
FAMILY HOUSING OPERATION AND MAINTENANCE, AIR 
FORCE 
For expenses of family housing for the Air Force for 
operation and maintenance, including debt payment, leas-
ing, minor construction, principal and interest charges, 
and 
insurance 
premiums, 
as 
authorized 
by 
law, 
$826,074,000. 
FAMILY HOUSING CONSTRUCTION, DEFENSE-WIDE 
For expenses of family housing for the activities and 
agencies of the Department of Defense (other than the 
military departments) for construction, including acquisi-
tion, replacement, addition, expansion, extension and al-
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teration, as authorized by law, $350,000, to remain avail-
able until September 30, 2008. 
FAMILY HOUSING OPERATION AND MAINTENANCE, 
DEFENSE-WIDE 
For expenses of family housing for the activities and 
agencies of the Department of Defense (other than the 
military departments) for operation and maintenance, 
leasing, and minor construction, as authorized by law, 
$49,440,000. 
DEPARTMENT OF DEFENSE FAMILY HOUSING 
IMPROVEMENT FUND 
For the Department of Defense Family Housing Im-
provement Fund, $300,000, to remain available until ex-
pended, for family housing initiatives undertaken pursu-
ant to section 2883 of title 10, United States Code, pro-
viding alternative means of acquiring and improving mili-
tary family housing and supporting facilities. 
BASE REALIGNMENT AND CLOSURE ACCOUNT 
For deposit into the Department of Defense Base 
Closure Account 1990 established by section 2906(a)(1) 
of the Department of Defense Authorization Act, 1991 
(Public Law 101–510), $370,427,000, to remain available 
until expended.
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GENERAL PROVISIONS 
SEC. 101. None of the funds appropriated in Military 
Construction Appropriations Acts shall be expended for 
payments under a cost-plus-a-fixed-fee contract for con-
struction, where cost estimates exceed $25,000, to be per-
formed within the United States, except Alaska, without 
the specific approval in writing of the Secretary of Defense 
setting forth the reasons therefor. 
SEC. 102. Funds appropriated to the Department of 
Defense for construction shall be available for hire of pas-
senger motor vehicles. 
SEC. 103. Funds appropriated to the Department of 
Defense for construction may be used for advances to the 
Federal Highway Administration, Department of Trans-
portation, for the construction of access roads as author-
ized by section 210 of title 23, United States Code, when 
projects authorized therein are certified as important to 
the national defense by the Secretary of Defense. 
SEC. 104. None of the funds appropriated in this Act 
may be used to begin construction of new bases inside the 
continental United States for which specific appropria-
tions have not been made. 
SEC. 105. No part of the funds provided in Military 
Construction Appropriations Acts shall be used for pur-
chase of land or land easements in excess of 100 percent
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of the value as determined by the Army Corps of Engi-
neers or the Naval Facilities Engineering Command, ex-
cept: (1) where there is a determination of value by a Fed-
eral court; (2) purchases negotiated by the Attorney Gen-
eral or his designee; (3) where the estimated value is less 
than $25,000; or (4) as otherwise determined by the Sec-
retary of Defense to be in the public interest. 
SEC. 106. None of the funds appropriated in Military 
Construction Appropriations Acts shall be used to: (1) ac-
quire land; (2) provide for site preparation; or (3) install 
utilities for any family housing, except housing for which 
funds have been made available in annual Military Con-
struction Appropriations Acts. 
SEC. 107. None of the funds appropriated in Military 
Construction Appropriations Acts for minor construction 
may be used to transfer or relocate any activity from one 
base or installation to another, without prior notification 
to the Committees on Appropriations. 
SEC. 108. No part of the funds appropriated in Mili-
tary Construction Appropriations Acts may be used for 
the procurement of steel for any construction project or 
activity for which American steel producers, fabricators, 
and manufacturers have been denied the opportunity to 
compete for such steel procurement.
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SEC. 109. None of the funds available to the Depart-
ment of Defense for military construction or family hous-
ing during the current fiscal year may be used to pay real 
property taxes in any foreign nation. 
SEC. 110. None of the funds appropriated in Military 
Construction Appropriations Acts may be used to initiate 
a new installation overseas without prior notification to 
the Committees on Appropriations. 
SEC. 111. None of the funds appropriated in Military 
Construction Appropriations Acts may be obligated for ar-
chitect and engineer contracts estimated by the Govern-
ment to exceed $500,000 for projects to be accomplished 
in Japan, in any NATO member country, or in countries 
bordering the Arabian Sea, unless such contracts are 
awarded to United States firms or United States firms 
in joint venture with host nation firms. 
SEC. 112. None of the funds appropriated in Military 
Construction Appropriations Acts for military construc-
tion in the United States territories and possessions in the 
Pacific and on Kwajalein Atoll, or in countries bordering 
the Arabian Sea, may be used to award any contract esti-
mated by the Government to exceed $1,000,000 to a for-
eign contractor: Provided, That this section shall not be 
applicable to contract awards for which the lowest respon-
sive and responsible bid of a United States contractor ex-
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ceeds the lowest responsive and responsible bid of a for-
eign contractor by greater than 20 percent: Provided fur-
ther, That this section shall not apply to contract awards 
for military construction on Kwajalein Atoll for which the 
lowest responsive and responsible bid is submitted by a 
Marshallese contractor. 
SEC. 113. The Secretary of Defense is to inform the 
appropriate committees of Congress, including the Com-
mittees on Appropriations, of the plans and scope of any 
proposed military exercise involving United States per-
sonnel 30 days prior to its occurring, if amounts expended 
for construction, either temporary or permanent, are an-
ticipated to exceed $100,000. 
SEC. 114. Not more than 20 percent of the appro-
priations in Military Construction Appropriations Acts 
which are limited for obligation during the current fiscal 
year shall be obligated during the last 2 months of the 
fiscal year. 
(TRANSFER OF FUNDS) 
SEC. 115. Funds appropriated to the Department of 
Defense for construction in prior years shall be available 
for construction authorized for each such military depart-
ment by the authorizations enacted into law during the 
current session of Congress. 
SEC. 116. For military construction or family housing 
projects that are being completed with funds otherwise ex-
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pired or lapsed for obligation, expired or lapsed funds may 
be used to pay the cost of associated supervision, inspec-
tion, overhead, engineering and design on those projects 
and on subsequent claims, if any. 
SEC. 117. Notwithstanding any other provision of 
law, any funds appropriated to a military department or 
defense agency for the construction of military projects 
may be obligated for a military construction project or 
contract, or for any portion of such a project or contract, 
at any time before the end of the fourth fiscal year after 
the fiscal year for which funds for such project were ap-
propriated if the funds obligated for such project: (1) are 
obligated from funds available for military construction 
projects; and (2) do not exceed the amount appropriated 
for such project, plus any amount by which the cost of 
such project is increased pursuant to law. 
(TRANSFER OF FUNDS) 
SEC. 118. During the 5-year period after appropria-
tions available to the Department of Defense for military 
construction and family housing operation and mainte-
nance and construction have expired for obligation, upon 
a determination that such appropriations will not be nec-
essary for the liquidation of obligations or for making au-
thorized adjustments to such appropriations for obliga-
tions incurred during the period of availability of such ap-
propriations, unobligated balances of such appropriations
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may be transferred into the appropriation ‘‘Foreign Cur-
rency Fluctuations, Construction, Defense’’ to be merged 
with and to be available for the same time period and for 
the same purposes as the appropriation to which trans-
ferred. 
SEC. 119. The Secretary of Defense is to provide the 
Committees on Appropriations of the Senate and the 
House of Representatives with an annual report by Feb-
ruary 15, containing details of the specific actions pro-
posed to be taken by the Department of Defense during 
the current fiscal year to encourage other member nations 
of the North Atlantic Treaty Organization, Japan, Korea, 
and United States allies bordering the Arabian Sea to as-
sume a greater share of the common defense burden of 
such nations and the United States. 
(TRANSFER OF FUNDS) 
SEC. 120. During the current fiscal year, in addition 
to any other transfer authority available to the Depart-
ment of Defense, proceeds deposited to the Department 
of Defense Base Closure Account established by section 
207(a)(1) of the Defense Authorization Amendments and 
Base Closure and Realignment Act (Public Law 100–526) 
pursuant to section 207(a)(2)(C) of such Act, may be 
transferred to the account established by section 
2906(a)(1) of the Department of Defense Authorization
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Act, 1991, to be merged with, and to be available for the 
same purposes and the same time period as that account. 
(TRANSFER OF FUNDS) 
SEC. 121. Subject to 30 days prior notification to the 
Committees on Appropriations, such additional amounts 
as may be determined by the Secretary of Defense may 
be transferred to the Department of Defense Family 
Housing Improvement Fund from amounts appropriated 
for construction in ‘‘Family Housing’’ accounts, to be 
merged with and to be available for the same purposes 
and for the same period of time as amounts appropriated 
directly to the Fund: Provided, That appropriations made 
available to the Fund shall be available to cover the costs, 
as defined in section 502(5) of the Congressional Budget 
Act of 1974, of direct loans or loan guarantees issued by 
the Department of Defense pursuant to the provisions of 
subchapter IV of chapter 169, title 10, United States 
Code, pertaining to alternative means of acquiring and im-
proving military family housing and supporting facilities. 
SEC. 122. None of the funds appropriated or made 
available by this Act may be obligated for Partnership for 
Peace Programs in the New Independent States of the 
former Soviet Union. 
(TRANSFER OF FUNDS) 
SEC. 123. During the current fiscal year, in addition 
to any other transfer authority available to the Depart-
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ment of Defense, amounts may be transferred from the 
account established by section 2906(a)(1) of the Depart-
ment of Defense Authorization Act, 1991, to the fund es-
tablished by section 1013(d) of the Demonstration Cities 
and Metropolitan Development Act of 1966 (42 U.S.C. 
3374) to pay for expenses associated with the Home-
owners Assistance Program. Any amounts transferred 
shall be merged with and be available for the same pur-
poses and for the same time period as the fund to which 
transferred. 
SEC. 124. Notwithstanding this or any other provi-
sion of law, funds appropriated in Military Construction 
Appropriations Acts for operations and maintenance of 
family housing shall be the exclusive source of funds for 
repair and maintenance of all family housing units, includ-
ing general or flag officer quarters: Provided, That not 
more than $35,000 per unit may be spent annually for 
the maintenance and repair of any general or flag officer 
quarters without 30 days advance prior notification to the 
appropriate committees of Congress, except that an after-
the-fact notification shall be submitted if the limitation is 
exceeded solely due to costs associated with environmental 
remediation that could not be reasonably anticipated at 
the time of the budget submission: Provided further, That 
the Under Secretary of Defense (Comptroller) is to report
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annually to the Committees on Appropriations all oper-
ations and maintenance expenditures for each individual 
general or flag officer quarters for the prior fiscal year. 
SEC. 125. None of the funds made available in this 
Act may be transferred to any department, agency, or in-
strumentality of the United States Government, except 
pursuant to a transfer made by, or transfer authority pro-
vided in, this Act or any other appropriation Act. 
SEC. 126. None of the funds appropriated in this Act 
for the Department of the Army for military construction 
projects in the Republic of Korea may be obligated or ex-
pended for projects at Camp Humphreys in the Republic 
of Korea until the Secretary of Defense certifies and re-
ports to the appropriate committees of Congress that the 
United States and the Republic of Korea have entered into 
an agreement on the availability and use of land sufficient 
for such projects. The certification must be presented to 
the committees no later than September 30, 2004, or the 
funds expire. 
This Act may be cited as the ‘‘Military Construction 
Appropriations Act, 2004’’.
Union Calendar No. 88
108TH CONGRESS 
1ST SESSION 
H. R. 2559
[Report No. 108–173] 
A BILL 
Making appropriations for military construction, 
family housing, and base realignment and closure 
for the Department of Defense for the fiscal year 
ending September 30, 2004, and for other pur-
poses. 
JUNE 23, 2003
Committed to the Committee of the Whole House on the 
State of the Union and ordered to be printed