104TH CONGRESS
2D SESSION
H. R. 3517
AN ACT
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, 1997, 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 the
fiscal year ending September 30, 1997, for military con-
struction, family housing, and base realignment and clo-
sure functions administered by the Department of De-
fense, and for other purposes, namely:
MILITARY CONSTRUCTION, ARMY
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, $603,584,000, to re-
main available until September 30, 2001: Provided, That
of this amount, not to exceed $54,384,000 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.
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, $724,476,000, to remain available until September
30, 2001: Provided, That of this amount, not to exceed
$50,959,000 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 102–136,
$6,900,000 is hereby rescinded: Provided further, That of
the funds appropriated for ‘‘Military Construction, Navy’’
under Public Law 102–380, $2,800,000 is hereby re-
scinded: Provided further, That of the funds appropriated
for ‘‘Military Construction, Navy’’ under Public Law 103–
110, $2,300,000 is hereby rescinded.
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, $678,914,000, to remain
available until September 30, 2001: Provided, That of this
amount, not to exceed $47,387,000 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 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,
$772,345,000, to remain available until September 30,
2001: 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
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 $12,239,000 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.
DEPARTMENT OF DEFENSE MILITARY UNACCOMPANIED
HOUSING IMPROVEMENT FUND
(INCLUDING TRANSFER OF FUNDS)
For the Department of Defense Military Unaccom-
panied Housing Improvement Fund, $10,000,000, to re-
main available until expended: Provided, That subject to
thirty days prior notification to the Committees on Appro-
priations, such additional amounts as may be determined
by the Secretary of Defense may be transferred to the
Fund from amounts appropriated in this Act for the ac-
quisition or construction of military unaccompanied hous-
ing in ‘‘Military Construction’’ accounts, to be merged
with and to be made available for the same purposes and
for the same period of time as amounts appropriated di-
rectly to the Fund: Provided further, That appropriations
made available for the Fund in this Act shall be available
to cover the costs, as defined in section 502(5) of the Con-
gressional Budget Act of 1974, of direct loans and loan
guarantees issued by the Department of Defense pursuant
to the provisions of subchapter IV of chapter 169 of title
10, United States Code, pertaining to alternative means
of acquiring and improving military unaccompanied hous-
ing and ancillary supporting facilities.
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 133 of title 10,
United States Code, and military construction authoriza-
tion Acts, $41,316,000, to remain available until Septem-
ber 30, 2001.
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
therefor, as authorized by chapter 133 of title 10, United
States Code, and military construction authorization Acts,
$118,394,000, to remain available until September 30,
2001.
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
133 of title 10, United States Code, and military construc-
tion authorization Acts, $50,159,000, to remain available
until September 30, 2001.
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 133 of title 10,
United States Code, and military construction authoriza-
tion Acts, $33,169,000, to remain available until Septem-
ber 30, 2001.
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 133 of title 10, United States Code, and military
construction authorization Acts, $51,655,000, to remain
available until September 30, 2001.
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, $177,000,000, to
remain available until expended.
FAMILY HOUSING, ARMY
For expenses of family housing for the Army for
constrution, including acquisition, replacement, addition,
expansion, extension and alteration and for operation and
maintenance, including debt payment, leasing, minor con-
struction, principal and interest charges, and insurance
premiums, as authorized by law, as follows: for Construc-
tion, $176,603,000, to remain available until September
30, 2001; for Operation and Maintenance, and for debt
payment, $1,257,466,000; in all $1,434,069,000.
FAMILY HOUSING, NAVY AND MARINE CORPS
For expenses of family housing for the Navy and Ma-
rine Corps for construction, including acquisition, replace-
ment, addition, expansion, extension and alteration and
for operation and maintenance, including debt payment,
leasing, minor construction, principal and interest
charges, and insurance premiums, as authorized by law,
as follows: for Construction, $532,456,000, to remain
available until September 30, 2001; for Operation and
Maintenance, and for debt payment, $1,058,241,000; in
all $1,590,697,000.
FAMILY HOUSING, AIR FORCE
For expenses of family housing for the Air Force for
construction, including acquisition, replacement, addition,
expansion, extension and alteration and for operation and
maintenance, including debt payment, leasing, minor con-
struction, principal and interest charges, and insurance
premiums, as authorized by law, as follows: for Construc-
tion, $304,068,000, to remain available until September
30, 2001; for Operation and Maintenance, and for debt
payment, $840,474,000; in all $1,144,542,000.
FAMILY HOUSING, 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-
teration, and for operation and maintenance, leasing, and
minor construction, as authorized by law, as follows: for
Construction, $4,371,000, to remain available until Sep-
tember 30, 2001; for Operation and Maintenance,
$30,963,000; in all $35,334,000.
DEPARTMENT OF DEFENSE FAMILY HOUSING
IMPROVEMENT FUND
(INCLUDING TRANSFER OF FUNDS)
For the Department of Defense Family Housing Im-
provement Fund, $35,000,000, to remain available until
expended: Provided, That, subject to thirty days prior no-
tification to the Committees on Appropriations, such addi-
tional amounts as may be determined by the Secretary of
Defense may be transferred to the Fund from amounts
appropriated in this Act 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
further, That appropriations made available to the Fund
in this Act 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 De-
partment of Defense pursuant to the provisions of sub-
chapter IV of Chapter 169, title 10, United States Code,
pertaining to alternative means of acquiring and improv-
ing military family housing and supporting facilities.
HOMEOWNERS ASSISTANCE FUND, DEFENSE
For use in the Homeowners Assistance Fund estab-
lished by section 1013(d) of the Demonstration Cities and
Metropolitan Development Act of 1966, as amended (42
U.S.C. 3374), $36,181,000, to remain available until ex-
pended.
BASE REALIGNMENT AND CLOSURE ACCOUNT, PART II
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), $352,800,000, to remain available
until 
expended: 
Provided, 
That 
not 
more 
than
$223,789,000 of the funds appropriated herein shall be
available solely for environmental restoration, unless the
Secretary of Defense determines that additional obliga-
tions are necessary for such purposes and notifies the
Committees on Appropriations of both Houses of Congress
of his determination and the reasons therefor.
BASE REALIGNMENT AND CLOSURE ACCOUNT, PART III
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), $971,925,000, to remain available
until 
expended: 
Provided, 
That 
not 
more 
than
$351,967,000 of the funds appropriated herein shall be
available solely for environmental restoration, unless the
Secretary of Defense determines that additional obliga-
tions are necessary for such purposes and notifies the
Committees on Appropriations of both Houses of Congress
of his determination and the reasons therefor.
BASE REALIGNMENT AND CLOSURE ACCOUNT, PART IV
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), $1,182,749,000, to remain avail-
able until expended: Provided, That not more than
$200,841,000 of the funds appropriated herein shall be
available solely for environmental restoration, unless the
Secretary of Defense determines that additional obliga-
tions are necessary for such purposes and notifies the
Committees on Appropriations of both Houses of Congress
of his determination and the reasons therefor.
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 work,
where cost estimates exceed $25,000, to be performed
within the United States, except Alaska, without the spe-
cific approval in writing of the Secretary of Defense set-
ting forth the reasons therefor: Provided, That the fore-
going shall not apply in the case of contracts for environ-
mental restoration at an installation that is being closed
or realigned where payments are made from a Base Re-
alignment and Closure Account.
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 per cen-
tum of the value as determined by the Army Corps of En-
gineers or the Naval Facilities Engineering Command, ex-
cept (a) where there is a determination of value by a Fed-
eral court, or (b) purchases negotiated by the Attorney
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 Gulf, 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 Gulf, 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-
ceeds the lowest responsive and responsible bid of a for-
eign contractor by greater than 20 per centum.
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 person-
nel thirty 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 per centum 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 two 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-
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 five-year period after appro-
priations available to the Department of Defense for mili-
tary construction and family housing operation and main-
tenance 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
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 Gulf 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
Act, 1991, to be merged with, and to be available for the
same purposes and the same time period as that account.
SEC. 121. No funds appropriated pursuant to this
Act may be expended by an entity unless the entity agrees
that in expending the assistance the entity will comply
with sections 2 through 4 of the Act of March 3, 1933
(41 U.S.C. 10a–10c, popularly known as the ‘‘Buy Amer-
ican Act’’).
SEC. 122. (a) In the case of any equipment or prod-
ucts that may be authorized to be purchased with financial
assistance provided under this Act, it is the sense of the
Congress that entities receiving such assistance should, in
expending the assistance, purchase only American-made
equipment and products.
(b) In providing financial assistance under this Act,
the Secretary of the Treasury shall provide to each recipi-
ent of the assistance a notice describing the statement
made in subsection (a) by the Congress.
(TRANSFER OF FUNDS)
SEC. 123. During the current fiscal year, in addition
to any other transfer authority available to the Depart-
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.
This Act may be cited as the ‘‘Military Construction
Appropriations Act, 1997’’.
Passed the House of Representatives May 30, 1996.
Attest:
Clerk.