HR 2658 RH 
SEC. 8019. None of the funds available to the De-
partment of Defense may be used to demilitarize or dis-
pose of M–1 Carbines, M–1 Garand rifles, M–14 rifles, 
.22 caliber rifles, .30 caliber rifles, or M–1911 pistols. 
SEC. 8020. No more than $500,000 of the funds ap-
propriated or made available in this Act shall be used dur-
ing a single fiscal year for any single relocation of an orga-
nization, unit, activity or function of the Department of 
Defense into or within the National Capital Region: Pro-
vided, That the Secretary of Defense may waive this re-
striction on a case-by-case basis by certifying in writing 
to the congressional defense committees that such a relo-
cation is required in the best interest of the Government. 
SEC. 8021. In addition to the funds provided else-
where in this Act, $8,000,000 is appropriated only for in-
centive payments authorized by Section 504 of the Indian 
Financing Act of 1974 (25 U.S.C. 1544): Provided, That 
a prime contractor or a subcontractor at any tier that 
makes a subcontract award to any subcontractor or sup-
plier as defined in 25 U.S.C. 1544 or a small business 
owned and controlled by an individual defined under 25 
U.S.C. 4221(9) shall be considered a contractor for the 
purposes of being allowed additional compensation under 
section 504 of the Indian Financing Act of 1974 (25 
U.S.C. 1544) whenever the prime contract or subcontract
HR 2658 RH 
amount is over $500,000 and involves the expenditure of 
funds appropriated by an Act making Appropriations for 
the Department of Defense with respect to any fiscal year: 
Provided further, That notwithstanding 41 U.S.C. § 430, 
this section shall be applicable to any Department of De-
fense acquisition of supplies or services, including any con-
tract and any subcontract at any tier for acquisition of 
commercial items produced or manufactured, in whole or 
in part by any subcontractor or supplier defined in 25 
U.S.C. § 1544 or a small business owned and controlled 
by an individual defined under 25 U.S.C. 4221(9). 
SEC. 8022. None of the funds appropriated by this 
Act shall be available to perform any cost study pursuant 
to the provisions of OMB Circular A–76 if the study being 
performed exceeds a period of 24 months after initiation 
of such study with respect to a single function activity or 
48 months after initiation of such study for a multi-func-
tion activity. 
SEC. 8023. Funds appropriated by this Act for the 
American Forces Information Service shall not be used for 
any national or international political or psychological ac-
tivities. 
SEC. 8024. Notwithstanding any other provision of 
law or regulation, the Secretary of Defense may adjust 
wage rates for civilian employees hired for certain health
HR 2658 RH 
care occupations as authorized for the Secretary of Vet-
erans Affairs by section 7455 of title 38, United States 
Code. 
SEC. 8025. (a) The Secretary of Defense shall afford 
qualified nonprofit agencies for the blind or other severely 
handicapped the maximum practicable opportunity to par-
ticipate as subcontractors and suppliers in the perform-
ance of contracts for the procurement of supplies or serv-
ices that are let by the Department of Defense using funds 
appropriated for military functions of the Department of 
Defense (other than for military construction or military 
family housing). 
(b) A business concern that has negotiated with the 
Secretary of a military department or the director of a 
Defense Agency a subcontracting plan for the participa-
tion by small business concerns pursuant to section 8(d) 
of the Small Business Act (15 U.S.C. 637(d)) shall be 
given credit toward meeting that subcontracting goal for 
any purchase made from a qualified nonprofit agency for 
the blind or other severely handicapped. 
(c) For the purpose of this section, the term ‘‘quali-
fied nonprofit agency for the blind or other severely handi-
capped’’ means a nonprofit agency for the blind, or a non-
profit agency for other severely handicapped, that has 
been approved by the Committee for the Purchase from
HR 2658 RH 
the Blind and Other Severely Handicapped under the Jav-
its-Wagner-O’Day Act (41 U.S.C. 46–48). 
(d) This section shall apply during the current fiscal 
year and hereafter. 
SEC. 8026. During the current fiscal year, net re-
ceipts pursuant to collections from third party payers pur-
suant to section 1095 of title 10, United States Code, shall 
be made available to the local facility of the uniformed 
services responsible for the collections and shall be over 
and above the facility’s direct budget amount. 
SEC. 8027. During the current fiscal year, the De-
partment of Defense is authorized to incur obligations of 
not to exceed $350,000,000 for purposes specified in sec-
tion 2350j(c) of title 10, United States Code, in anticipa-
tion of receipt of contributions, only from the Government 
of Kuwait, under that section: Provided, That upon re-
ceipt, such contributions from the Government of Kuwait 
shall be credited to the appropriations or fund which in-
curred such obligations. 
(INCLUDING TRANSFER OF FUNDS) 
SEC. 8028. (a) Of the funds made available in this 
Act, not less than $32,758,000 shall be available for the 
Civil Air Patrol Corporation, of which—
(1) $21,432,000 shall be available from ‘‘Oper-
ation and Maintenance, Air Force’’ to support Civil 
Air Patrol Corporation operation and maintenance,
HR 2658 RH 
readiness, counterdrug activities, and drug demand 
reduction activities involving youth programs; 
(2) $10,540,000 shall be available from ‘‘Air-
craft Procurement, Air Force’’; and 
(3) $786,000 shall be available from ‘‘Other 
Procurement, Air Force’’ for vehicle procurement. 
(b) Notwithstanding section 9445 of title 10, United 
States Code, or any other provision of law, of the funds 
made available to the Civil Air Patrol Corporation in this 
Act under the heading ‘‘Aircraft Procurement, Air Force’’, 
not more than $770,000 may be transferred by the Sec-
retary of the Air Force to the ‘‘Operation and Mainte-
nance, Air Force’’ appropriation to be merged with and 
to be available for administrative expenses incurred by the 
Air Force in the administration of Civil Air Patrol Cor-
poration. Funds so transferred shall be available for the 
same period as the appropriation to which transferred. 
(c) The Secretary of the Air Force should waive reim-
bursement for any funds used by the Civil Air Patrol for 
counter-drug activities in support of Federal State, and 
local government agencies. 
SEC. 8029. (a) None of the funds appropriated in this 
Act are available to establish a new Department of De-
fense (department) federally funded research and develop-
ment center (FFRDC), either as a new entity, or as a
HR 2658 RH 
separate entity administrated by an organization man-
aging another FFRDC, or as a nonprofit membership cor-
poration consisting of a consortium of other FFRDCs and 
other non-profit entities. 
(b) No member of a Board of Directors, Trustees, 
Overseers, Advisory Group, Special Issues Panel, Visiting 
Committee, or any similar entity of a defense FFRDC, 
and no paid consultant to any defense FFRDC, except 
when acting in a technical advisory capacity, may be com-
pensated for his or her services as a member of such enti-
ty, or as a paid consultant by more than one FFRDC in 
a fiscal year: Provided, That a member of any such entity 
referred to previously in this subsection shall be allowed 
travel expenses and per diem as authorized under the Fed-
eral Joint Travel Regulations, when engaged in the per-
formance of membership duties. 
(c) Notwithstanding any other provision of law, none 
of the funds available to the department from any source 
during fiscal year 2004 may be used by a defense FFRDC, 
through a fee or other payment mechanism, for construc-
tion of new buildings, for payment of cost sharing for 
projects funded by Government grants, for absorption of 
contract overruns, or for certain charitable contributions, 
not to include employee participation in community service 
and/or development.
HR 2658 RH 
(d) Notwithstanding any other provision of law, of 
the funds available to the department during fiscal year 
2004, not more than 6,321 staff years of technical effort 
(staff years) may be funded for defense FFRDCs: Pro-
vided, That of the specific amount referred to previously 
in this subsection, not more than 1,050 staff years may 
be funded for the defense studies and analysis FFRDCs. 
(e) The Secretary of Defense shall, with the submis-
sion of the department’s fiscal year 2005 budget request, 
submit a report presenting the specific amounts of staff 
years of technical effort to be allocated for each defense 
FFRDC during that fiscal year. 
(f) Notwithstanding any other provision of this Act, 
the total amount appropriated in this Act for FFRDCs 
is hereby reduced by $74,200,000. 
SEC. 8030. None of the funds appropriated or made 
available in this Act shall be used to procure carbon, alloy 
or armor steel plate for use in any Government-owned fa-
cility or property under the control of the Department of 
Defense which were not melted and rolled in the United 
States or Canada: Provided, That these procurement re-
strictions shall apply to any and all Federal Supply Class 
9515, American Society of Testing and Materials (ASTM) 
or American Iron and Steel Institute (AISI) specifications 
of carbon, alloy or armor steel plate: Provided further,
HR 2658 RH 
That the Secretary of the military department responsible 
for the procurement may waive this restriction on a case-
by-case basis by certifying in writing to the Committees 
on Appropriations of the House of Representatives and the 
Senate that adequate domestic supplies are not available 
to meet Department of Defense requirements on a timely 
basis and that such an acquisition must be made in order 
to acquire capability for national security purposes: Pro-
vided further, That these restrictions shall not apply to 
contracts which are in being as of the date of the enact-
ment of this Act. 
SEC. 8031. For the purposes of this Act, the term 
‘‘congressional defense committees’’ means the Armed 
Services Committee of the House of Representatives, the 
Armed Services Committee of the Senate, the Sub-
committee on Defense of the Committee on Appropriations 
of the Senate, and the Subcommittee on Defense of the 
Committee on Appropriations of the House of Representa-
tives. 
SEC. 8032. (a) During the current fiscal year and 
hereafter, the Department of Defense may acquire the 
modification, depot maintenance, and repair of aircraft, 
vehicles, and vessels, as well as the production of compo-
nents and other Defense-related articles, through competi-
HR 2658 RH 
tion between Department of Defense depot maintenance 
activities and private firms. 
(b) In the case of a competition conducted under this 
section, the Senior Acquisition Executive of the military 
department or Defense Agency concerned shall certify that 
the successful bid includes comparable estimates of all di-
rect and indirect costs for bids submitted both by Depart-
ment of Defense depot maintenance activities and by pri-
vate firms. The authority of the Senior Acquisition Execu-
tive under this section may be delegated. 
(c) Office of Management and Budget Circular A–
76 shall not apply to a competition conducted under this 
section. 
SEC. 8033. (a)(1) If the Secretary of Defense, after 
consultation with the United States Trade Representative, 
determines that a foreign country which is party to an 
agreement described in paragraph (2) has violated the 
terms of the agreement by discriminating against certain 
types of products produced in the United States that are 
covered by the agreement, the Secretary of Defense shall 
rescind the Secretary’s blanket waiver of the Buy Amer-
ican Act with respect to such types of products produced 
in that foreign country. 
(2) An agreement referred to in paragraph (1) is any 
reciprocal defense procurement memorandum of under-
HR 2658 RH 
standing, between the United States and a foreign country 
pursuant to which the Secretary of Defense has prospec-
tively waived the Buy American Act for certain products 
in that country. 
(b) The Secretary of Defense shall submit to the Con-
gress a report on the amount of Department of Defense 
purchases from foreign entities in fiscal year 2004. Such 
report shall separately indicate the dollar value of items 
for which the Buy American Act was waived pursuant to 
any agreement described in subsection (a)(2), the Trade 
Agreement Act of 1979 (19 U.S.C. 2501 et seq.), or any 
international agreement to which the United States is a 
party. 
(c) For purposes of this section, the term ‘‘Buy 
American Act’’ means title III of the Act entitled ‘‘An Act 
making appropriations for the Treasury and Post Office 
Departments for the fiscal year ending June 30, 1934, 
and for other purposes’’, approved March 3, 1933 (41 
U.S.C. 10a et seq.). 
SEC. 8034. Appropriations contained in this Act that 
remain available at the end of the current fiscal year as 
a result of energy cost savings realized by the Department 
of Defense shall remain available for obligation for the 
next fiscal year to the extent, and for the purposes, pro-
vided in section 2865 of title 10, United States Code.
HR 2658 RH 
(INCLUDING TRANSFER OF FUNDS) 
SEC. 8035. Amounts deposited during the current fis-
cal year to the special account established under 40 U.S.C. 
572(b)(5)(A) and to the special account established under 
10 U.S.C. 2667(d)(1) are appropriated and shall be avail-
able until transferred by the Secretary of Defense to cur-
rent applicable appropriations or funds of the Department 
of Defense under the terms and conditions specified by 
40 U.S.C. 572(b)(5)(B) and 10 U.S.C. 2667(d)(1)(B), to 
be merged with and to be available for the same time pe-
riod and the same purposes as the appropriation to which 
transferred. 
SEC. 8036. The President shall include with each 
budget for a fiscal year submitted to the Congress under 
section 1105 of title 31, United States Code, materials 
that shall identify clearly and separately the amounts re-
quested in the budget for appropriation for that fiscal year 
for salaries and expenses related to administrative activi-
ties of the Department of Defense, the military depart-
ments, and the defense agencies. 
SEC. 8037. Notwithstanding any other provision of 
law, funds available for ‘‘Drug Interdiction and Counter-
Drug Activities, Defense’’ may be obligated for the Young 
Marines program.
HR 2658 RH 
(INCLUDING TRANSFER OF FUNDS) 
SEC. 8038. During the current fiscal year, amounts 
contained in the Department of Defense Overseas Military 
Facility Investment Recovery Account established by sec-
tion 2921(c)(1) of the National Defense Authorization Act 
of 1991 (Public Law 101–510; 10 U.S.C. 2687 note) shall 
be available until expended for the payments specified by 
section 2921(c)(2) of that Act. 
SEC. 8039. (a) IN GENERAL.—Notwithstanding any 
other provision of law, the Secretary of the Air Force may 
convey at no cost to the Air Force, without consideration, 
to Indian tribes located in the States of North Dakota, 
South Dakota, Montana, and Minnesota relocatable mili-
tary housing units located at Grand Forks Air Force Base 
and Minot Air Force Base that are excess to the needs 
of the Air Force. 
(b) PROCESSING OF REQUESTS.—The Secretary of 
the Air Force shall convey, at no cost to the Air Force, 
military housing units under subsection (a) in accordance 
with the request for such units that are submitted to the 
Secretary by the Operation Walking Shield Program on 
behalf of Indian tribes located in the States of North Da-
kota, South Dakota, Montana, and Minnesota. 
(c) RESOLUTION OF HOUSING UNIT CONFLICTS.—
The Operation Walking Shield program shall resolve any
HR 2658 RH 
conflicts among requests of Indian tribes for housing units 
under subsection (a) before submitting requests to the 
Secretary of the Air Force under subsection (b). 
(d) INDIAN TRIBE DEFINED.—In this section, the 
term ‘‘Indian tribe’’ means any recognized Indian tribe in-
cluded on the current list published by the Secretary of 
the Interior under section 104 of the Federally Recognized 
Indian Tribe Act of 1994 (Public Law 103–454; 108 Stat. 
4792; 25 U.S.C. 479a–1). 
SEC. 8040. During the current fiscal year, appropria-
tions which are available to the Department of Defense 
for operation and maintenance may be used to purchase 
items having an investment item unit cost of not more 
than $250,000. 
SEC. 8041. (a) During the current fiscal year, none 
of the appropriations or funds available to the Department 
of Defense Working Capital Funds shall be used for the 
purchase of an investment item for the purpose of acquir-
ing a new inventory item for sale or anticipated sale dur-
ing the current fiscal year or a subsequent fiscal year to 
customers of the Department of Defense Working Capital 
Funds if such an item would not have been chargeable 
to the Department of Defense Business Operations Fund 
during fiscal year 1994 and if the purchase of such an 
investment item would be chargeable during the current
HR 2658 RH 
fiscal year to appropriations made to the Department of 
Defense for procurement. 
(b) The fiscal year 2005 budget request for the De-
partment of Defense as well as all justification material 
and other documentation supporting the fiscal year 2005 
Department of Defense budget shall be prepared and sub-
mitted to the Congress on the basis that any equipment 
which was classified as an end item and funded in a pro-
curement appropriation contained in this Act shall be 
budgeted for in a proposed fiscal year 2005 procurement 
appropriation and not in the supply management business 
area or any other area or category of the Department of 
Defense Working Capital Funds. 
SEC. 8042. None of the funds appropriated by this 
Act for programs of the Central Intelligence Agency shall 
remain available for obligation beyond the current fiscal 
year, except for funds appropriated for the Reserve for 
Contingencies, which shall remain available until Sep-
tember 30, 2005: Provided, That funds appropriated, 
transferred, or otherwise credited to the Central Intel-
ligence Agency Central Services Working Capital Fund 
during this or any prior or subsequent fiscal year shall 
remain available until expended: Provided further, That 
any funds appropriated or transferred to the Central Intel-
ligence Agency for agent operations and for covert action
HR 2658 RH 
programs authorized by the President under section 503 
of the National Security Act of 1947, as amended, shall 
remain available until September 30, 2005. 
SEC. 8043. Notwithstanding any other provision of 
law, funds made available in this Act for the Defense In-
telligence Agency may be used for the design, develop-
ment, and deployment of General Defense Intelligence 
Program intelligence communications and intelligence in-
formation systems for the Services, the Unified and Speci-
fied Commands, and the component commands. 
SEC. 8044. Of the funds appropriated to the Depart-
ment of Defense under the heading ‘‘Operation and Main-
tenance, Defense-Wide’’, not less than $10,000,000 shall 
be made available only for the mitigation of environmental 
impacts, including training and technical assistance to 
tribes, related administrative support, the gathering of in-
formation, documenting of environmental damage, and de-
veloping a system for prioritization of mitigation and cost 
to complete estimates for mitigation, on Indian lands re-
sulting from Department of Defense activities. 
SEC. 8045. (a) None of the funds appropriated in this 
Act may be expended by an entity of the Department of 
Defense unless the entity, in expending the funds, com-
plies with the Buy American Act. For purposes of this 
subsection, the term ‘‘Buy American Act’’ means title III
HR 2658 RH 
of the Act entitled ‘‘An Act making appropriations for the 
Treasury and Post Office Departments for the fiscal year 
ending June 30, 1934, and for other purposes’’, approved 
March 3, 1933 (41 U.S.C. 10a et seq.). 
(b) If the Secretary of Defense determines that a per-
son has been convicted of intentionally affixing a label 
bearing a ‘‘Made in America’’ inscription to any product 
sold in or shipped to the United States that is not made 
in America, the Secretary shall determine, in accordance 
with section 2410f of title 10, United States Code, wheth-
er the person should be debarred from contracting with 
the Department of Defense. 
(c) In the case of any equipment or products pur-
chased with appropriations provided under this Act, it is 
the sense of the Congress that any entity of the Depart-
ment of Defense, in expending the appropriation, purchase 
only American-made equipment and products, provided 
that American-made equipment and products are cost-
competitive, quality-competitive, and available in a timely 
fashion. 
SEC. 8046. None of the funds appropriated by this 
Act shall be available for a contract for studies, analysis, 
or consulting services entered into without competition on 
the basis of an unsolicited proposal unless the head of the 
activity responsible for the procurement determines—
HR 2658 RH 
(1) as a result of thorough technical evaluation, 
only one source is found fully qualified to perform 
the proposed work; 
(2) the purpose of the contract is to explore an 
unsolicited proposal which offers significant sci-
entific or technological promise, represents the prod-
uct of original thinking, and was submitted in con-
fidence by one source; or 
(3) the purpose of the contract is to take ad-
vantage of unique and significant industrial accom-
plishment by a specific concern, or to insure that a 
new product or idea of a specific concern is given fi-
nancial support: 
Provided, That this limitation shall not apply to contracts 
in an amount of less than $25,000, contracts related to 
improvements of equipment that is in development or pro-
duction, or contracts as to which a civilian official of the 
Department of Defense, who has been confirmed by the 
Senate, determines that the award of such contract is in 
the interest of the national defense. 
SEC. 8047. (a) Except as provided in subsection (b) 
and (c), none of the funds made available by this Act may 
be used—
(1) to establish a field operating agency; or
HR 2658 RH 
(2) to pay the basic pay of a member of the 
Armed Forces or civilian employee of the depart-
ment who is transferred or reassigned from a head-
quarters activity if the member or employee’s place 
of duty remains at the location of that headquarters. 
(b) The Secretary of Defense or Secretary of a mili-
tary department may waive the limitations in subsection 
(a), on a case-by-case basis, if the Secretary determines, 
and certifies to the Committees on Appropriations of the 
House of Representatives and Senate that the granting 
of the waiver will reduce the personnel requirements or 
the financial requirements of the department. 
(c) This section does not apply to field operating 
agencies funded within the National Foreign Intelligence 
Program. 
SEC. 8048. Notwithstanding section 303 of Public 
Law 96–487 or any other provision of law, the Secretary 
of the Navy is authorized to lease real and personal prop-
erty at Naval Air Facility, Adak, Alaska, pursuant to 10 
U.S.C. 2667(f), for commercial, industrial or other pur-
poses: Provided, That notwithstanding any other provision 
of law, the Secretary of the Navy may remove hazardous 
materials from facilities, buildings, and structures at 
Adak, Alaska, and may demolish or otherwise dispose of 
such facilities, buildings, and structures.
HR 2658 RH 
(RESCISSIONS) 
SEC. 8049. Of the funds appropriated in Department 
of Defense Appropriations Acts, the following funds are 
hereby rescinded from the following accounts and pro-
grams in the specified amounts: 
‘‘Aircraft Procurement, Army, 2003/2005’’, 
$47,100,000; 
‘‘Other 
Procurement, 
Army, 
2003/2005’’, 
$8,000,000; 
‘‘Shipbuilding and Conversion, Navy, 2002/
2006’’, $25,600,000; 
‘‘Missile Procurement, Air Force, 2003/2005’’, 
$27,000,000; 
‘‘Other Procurement, Air Force, 2003/2005’’, 
$30,000,000; and 
‘‘Research, Development, Test and Evaluation, 
Army, 2003/2004’’, $1,650,000. 
SEC. 8050. None of the funds available in this Act 
may be used to reduce the authorized positions for mili-
tary (civilian) technicians of the Army National Guard, 
the Air National Guard, Army Reserve and Air Force Re-
serve for the purpose of applying any administratively im-
posed civilian personnel ceiling, freeze, or reduction on 
military (civilian) technicians, unless such reductions are 
a direct result of a reduction in military force structure.
HR 2658 RH 
SEC. 8051. None of the funds appropriated or other-
wise made available in this Act may be obligated or ex-
pended for assistance to the Democratic People’s Republic 
of North Korea unless specifically appropriated for that 
purpose. 
SEC. 8052. During the current fiscal year, funds ap-
propriated in this Act are available to compensate mem-
bers of the National Guard for duty performed pursuant 
to a plan submitted by a Governor of a State and approved 
by the Secretary of Defense under section 112 of title 32, 
United States Code: Provided, That during the perform-
ance of such duty, the members of the National Guard 
shall be under State command and control: Provided fur-
ther, That such duty shall be treated as full-time National 
Guard duty for purposes of sections 12602(a)(2) and 
(b)(2) of title 10, United States Code. 
SEC. 8053. Funds appropriated in this Act for oper-
ation and maintenance of the Military Departments, Com-
batant Commands and Defense Agencies shall be available 
for reimbursement of pay, allowances and other expenses 
which would otherwise be incurred against appropriations 
for the National Guard and Reserve when members of the 
National Guard and Reserve provide intelligence or coun-
terintelligence support to Combatant Commands, Defense 
Agencies and Joint Intelligence Activities, including the
HR 2658 RH 
activities and programs included within the National For-
eign Intelligence Program (NFIP), the Joint Military In-
telligence Program (JMIP), and the Tactical Intelligence 
and Related Activities (TIARA) aggregate: Provided, That 
nothing in this section authorizes deviation from estab-
lished Reserve and National Guard personnel and training 
procedures. 
SEC. 8054. During the current fiscal year, none of 
the funds appropriated in this Act may be used to reduce 
the civilian medical and medical support personnel as-
signed to military treatment facilities below the September 
30, 2002 level: Provided, That the Service Surgeons Gen-
eral may waive this section by certifying to the congres-
sional defense committees that the beneficiary population 
is declining in some catchment areas and civilian strength 
reductions may be consistent with responsible resource 
stewardship and capitation-based budgeting. 
SEC. 8055. (a) LIMITATION ON PENTAGON RENOVA-
TION COSTS.—Not later than the date each year on which 
the President submits to Congress the budget under sec-
tion 1105 of title 31, United States Code, the Secretary 
of Defense shall submit to Congress a certification that 
the total cost for the planning, design, construction, and 
installation of equipment for the renovation of wedges 2 
through 5 of the Pentagon Reservation, cumulatively, will
HR 2658 RH 
not exceed four times the total cost for the planning, de-
sign, construction, and installation of equipment for the 
renovation of wedge 1. 
(b) ANNUAL ADJUSTMENT.—For purposes of apply-
ing the limitation in subsection (a), the Secretary shall 
adjust the cost for the renovation of wedge 1 by any in-
crease or decrease in costs attributable to economic infla-
tion, based on the most recent economic assumptions 
issued by the Office of Management and Budget for use 
in preparation of the budget of the United States under 
section 1104 of title 31, United States Code. 
(c) EXCLUSION OF CERTAIN COSTS.—For purposes 
of calculating the limitation in subsection (a), the total 
cost for wedges 2 through 5 shall not include—
(1) any repair or reconstruction cost incurred 
as a result of the terrorist attack on the Pentagon 
that occurred on September 11, 2001; 
(2) any increase in costs for wedges 2 through 
5 attributable to compliance with new requirements 
of Federal, State, or local laws; and 
(3) any increase in costs attributable to addi-
tional security requirements that the Secretary of 
Defense considers essential to provide a safe and se-
cure working environment.
HR 2658 RH 
(d) CERTIFICATION COST REPORTS.—As part of the 
annual certification under subsection (a), the Secretary 
shall report the projected cost (as of the time of the certifi-
cation) for—
(1) the renovation of each wedge, including the 
amount adjusted or otherwise excluded for such 
wedge under the authority of paragraphs (2) and (3) 
of subsection (c) for the period covered by the cer-
tification; and 
(2) the repair and reconstruction of wedges 1 
and 2 in response to the terrorist attack on the Pen-
tagon that occurred on September 11, 2001. 
(e) DURATION OF CERTIFICATION REQUIREMENT.—
The requirement to make an annual certification under 
subsection (a) shall apply until the Secretary certifies to 
Congress that the renovation of the Pentagon Reservation 
is completed. 
SEC. 8056. Notwithstanding any other provision of 
law, that not more than 35 percent of funds provided in 
this Act for environmental remediation may be obligated 
under indefinite delivery/indefinite quantity contracts with 
a total contract value of $130,000,000 or higher. 
SEC. 8057. (a) None of the funds available to the 
Department of Defense for any fiscal year for drug inter-
diction or counter-drug activities may be transferred to
HR 2658 RH 
any other department or agency of the United States ex-
cept as specifically provided in an appropriations law. 
(b) None of the funds available to the Central Intel-
ligence Agency for any fiscal year for drug interdiction 
and counter-drug activities may be transferred to any 
other department or agency of the United States except 
as specifically provided in an appropriations law. 
(TRANSFER OF FUNDS) 
SEC. 8058. Appropriations available in this Act under 
the heading ‘‘Operation and Maintenance, Defense-Wide’’ 
for increasing energy and water efficiency in Federal 
buildings may, during their period of availability, be trans-
ferred to other appropriations or funds of the Department 
of Defense for projects related to increasing energy and 
water efficiency, to be merged with and to be available 
for the same general purposes, and for the same time pe-
riod, as the appropriation or fund to which transferred. 
SEC. 8059. None of the funds appropriated by this 
Act may be used for the procurement of ball and roller 
bearings other than those produced by a domestic source 
and of domestic origin: Provided, That the Secretary of 
the military department responsible for such procurement 
may waive this restriction on a case-by-case basis by certi-
fying in writing to the Committees on Appropriations of 
the House of Representatives and the Senate, that ade-
quate domestic supplies are not available to meet Depart-
HR 2658 RH 
ment of Defense requirements on a timely basis and that 
such an acquisition must be made in order to acquire ca-
pability for national security purposes: Provided further, 
That this restriction shall not apply to the purchase of 
‘‘commercial items’’, as defined by section 4(12) of the 
Office of Federal Procurement Policy Act, except that the 
restriction shall apply to ball or roller bearings purchased 
as end item. 
SEC. 8060. Notwithstanding any other provision of 
law, funds available to the Department of Defense shall 
be made available to provide transportation of medical 
supplies and equipment, on a nonreimbursable basis, to 
American Samoa, and funds available to the Department 
of Defense shall be made available to provide transpor-
tation of medical supplies and equipment, on a non-
reimbursable basis, to the Indian Health Service when it 
is in conjunction with a civil-military project. 
SEC. 8061. None of the funds in this Act may be 
used to purchase any supercomputer which is not manu-
factured in the United States, unless the Secretary of De-
fense certifies to the congressional defense committees 
that such an acquisition must be made in order to acquire 
capability for national security purposes that is not avail-
able from United States manufacturers.
HR 2658 RH 
SEC. 8062. Notwithstanding any other provision of 
law, the Naval shipyards of the United States shall be eli-
gible to participate in any manufacturing extension pro-
gram financed by funds appropriated in this or any other 
Act. 
SEC. 8063. Notwithstanding any other provision of 
law, each contract awarded by the Department of Defense 
during the current fiscal year for construction or service 
performed in whole or in part in a State (as defined in 
section 381(d) of title 10, United States Code) which is 
not contiguous with another State and has an unemploy-
ment rate in excess of the national average rate of unem-
ployment as determined by the Secretary of Labor, shall 
include a provision requiring the contractor to employ, for 
the purpose of performing that portion of the contract in 
such State that is not contiguous with another State, indi-
viduals who are residents of such State and who, in the 
case of any craft or trade, possess or would be able to 
acquire promptly the necessary skills: Provided, That the 
Secretary of Defense may waive the requirements of this 
section, on a case-by-case basis, in the interest of national 
security. 
SEC. 8064. None of the funds made available in this 
or any other Act may be used to pay the salary of any 
officer or employee of the Department of Defense who ap-
HR 2658 RH 
proves or implements the transfer of administrative re-
sponsibilities or budgetary resources of any program, 
project, or activity financed by this Act to the jurisdiction 
of another Federal agency not financed by this Act with-
out the express authorization of Congress: Provided, That 
this limitation shall not apply to transfers of funds ex-
pressly provided for in Defense Appropriations Acts, or 
provisions of Acts providing supplemental appropriations 
for the Department of Defense. 
SEC. 8065. (a) LIMITATION ON TRANSFER OF DE-
FENSE ARTICLES AND SERVICES.—Notwithstanding any 
other provision of law, none of the funds available to the 
Department of Defense for the current fiscal year may be 
obligated or expended to transfer to another nation or an 
international organization any defense articles or services 
(other than intelligence services) for use in the activities 
described in subsection (b) unless the congressional de-
fense committees, the Committee on International Rela-
tions of the House of Representatives, and the Committee 
on Foreign Relations of the Senate are notified 15 days 
in advance of such transfer. 
(b) COVERED ACTIVITIES.—This section applies to—
(1) any international peacekeeping or peace-en-
forcement operation under the authority of chapter 
VI or chapter VII of the United Nations Charter
HR 2658 RH 
under the authority of a United Nations Security 
Council resolution; and 
(2) any other international peacekeeping, peace-
enforcement, or humanitarian assistance operation. 
(c) REQUIRED NOTICE.—A notice under subsection 
(a) shall include the following: 
(1) A description of the equipment, supplies, or 
services to be transferred. 
(2) A statement of the value of the equipment, 
supplies, or services to be transferred. 
(3) In the case of a proposed transfer of equip-
ment or supplies—
(A) a statement of whether the inventory 
requirements of all elements of the Armed 
Forces (including the reserve components) for 
the type of equipment or supplies to be trans-
ferred have been met; and 
(B) a statement of whether the items pro-
posed to be transferred will have to be replaced 
and, if so, how the President proposes to pro-
vide funds for such replacement. 
SEC. 8066. To the extent authorized by subchapter 
VI of chapter 148 of title 10, United States Code, the 
Secretary of Defense may issue loan guarantees in support 
of United States defense exports not otherwise provided
HR 2658 RH 
for: Provided, That the total contingent liability of the 
United States for guarantees issued under the authority 
of this section may not exceed $15,000,000,000: Provided 
further, That the exposure fees charged and collected by 
the Secretary for each guarantee shall be paid by the 
country involved and shall not be financed as part of a 
loan guaranteed by the United States: Provided further, 
That the Secretary shall provide quarterly reports to the 
Committees on Appropriations, Armed Services, and For-
eign Relations of the Senate and the Committees on Ap-
propriations, Armed Services, and International Relations 
in the House of Representatives on the implementation of 
this program: Provided further, That amounts charged for 
administrative fees and deposited to the special account 
provided for under section 2540c(d) of title 10, shall be 
available for paying the costs of administrative expenses 
of the Department of Defense that are attributable to the 
loan guarantee program under subchapter VI of chapter 
148 of title 10, United States Code. 
SEC. 8067. None of the funds available to the De-
partment of Defense under this Act shall be obligated or 
expended to pay a contractor under a contract with the 
Department of Defense for costs of any amount paid by 
the contractor to an employee when—
HR 2658 RH 
(1) such costs are for a bonus or otherwise in 
excess of the normal salary paid by the contractor 
to the employee; and 
(2) such bonus is part of restructuring costs as-
sociated with a business combination. 
SEC. 8068. (a) None of the funds appropriated or 
otherwise made available in this Act may be used to trans-
port or provide for the transportation of chemical muni-
tions or agents to the Johnston Atoll for the purpose of 
storing or demilitarizing such munitions or agents. 
(b) The prohibition in subsection (a) shall not apply 
to any obsolete World War II chemical munition or agent 
of the United States found in the World War II Pacific 
Theater of Operations. 
(c) The President may suspend the application of 
subsection (a) during a period of war in which the United 
States is a party. 
(INCLUDING TRANSFER OF FUNDS) 
SEC. 8069. During the current fiscal year, no more 
than $30,000,000 of appropriations made in this Act 
under the heading ‘‘Operation and Maintenance, Defense-
Wide’’ may be transferred to appropriations available for 
the pay of military personnel, to be merged with, and to 
be available for the same time period as the appropriations 
to which transferred, to be used in support of such per-
sonnel in connection with support and services for eligible
HR 2658 RH 
organizations and activities outside the Department of De-
fense pursuant to section 2012 of title 10, United States 
Code. 
SEC. 8070. During the current fiscal year, in the case 
of an appropriation account of the Department of Defense 
for which the period of availability for obligation has ex-
pired or which has closed under the provisions of section 
1552 of title 31, United States Code, and which has a 
negative unliquidated or unexpended balance, an obliga-
tion or an adjustment of an obligation may be charged 
to any current appropriation account for the same purpose 
as the expired or closed account if—
(1) the obligation would have been properly 
chargeable (except as to amount) to the expired or 
closed account before the end of the period of avail-
ability or closing of that account; 
(2) the obligation is not otherwise properly 
chargeable to any current appropriation account of 
the Department of Defense; and 
(3) in the case of an expired account, the obli-
gation is not chargeable to a current appropriation 
of the Department of Defense under the provisions 
of section 1405(b)(8) of the National Defense Au-
thorization Act for Fiscal Year 1991, Public Law 
101–510, as amended (31 U.S.C. 1551 note): Pro-
HR 2658 RH 
vided, That in the case of an expired account, if sub-
sequent review or investigation discloses that there 
was not in fact a negative unliquidated or unex-
pended balance in the account, any charge to a cur-
rent account under the authority of this section shall 
be reversed and recorded against the expired ac-
count: Provided further, That the total amount 
charged to a current appropriation under this sec-
tion may not exceed an amount equal to 1 percent 
of the total appropriation for that account. 
SEC. 8071. Funds appropriated for the Department 
of Defense in this Act or any other Act for the current 
fiscal year and hereafter for Operation and Maintenance 
or for the Defense Health Program for supervision and 
administration costs for facilities maintenance and repair, 
minor construction, or design projects may be obligated 
when the reimbursable order is accepted by the performing 
activity. For the purpose of this section, supervision and 
administration costs include all in-house Government 
costs. 
SEC. 8072. (a) During the current fiscal year and 
hereafter, the Chief of the National Guard Bureau may 
permit the use of equipment of the National Guard Dis-
tance Learning Project by any person or entity on a space-
available, reimbursable basis. The Chief of the National
HR 2658 RH 
Guard Bureau shall establish the amount of reimburse-
ment for such use on a case-by-case basis. 
(b) During the current fiscal year and hereafter, 
amounts collected under the subsection (a) shall be cred-
ited to funds then available for the National Guard Dis-
tance Learning Project and shall be available to defray 
the costs associated with the use of equipment of the Dis-
tance Learning Project under that subsection. Such funds 
shall be available for such purpose without fiscal year limi-
tation. 
SEC. 8073. Using funds available by this Act or any 
other Act, the Secretary of the Air Force, pursuant to a 
determination under section 2690 of title 10, United 
States Code, may implement cost-effective agreements for 
required 
heating 
facility 
modernization 
in 
the 
Kaiserslautern Military Community in the Federal Repub-
lic of Germany: Provided, That in the City of 
Kaiserslautern such agreements will include the use of 
United States anthracite as the base load energy for mu-
nicipal district heat to the United States Defense installa-
tions: Provided further, That at Landstuhl Army Regional 
Medical Center and Ramstein Air Base, furnished heat 
may be obtained from private, regional or municipal serv-
ices, if provisions are included for the consideration of 
United States coal as an energy source.
HR 2658 RH 
SEC. 8074. None of the funds appropriated in title 
IV of this Act may be used to procure end-items for deliv-
ery to military forces for operational training, operational 
use or inventory requirements: Provided, That this restric-
tion does not apply to end-items used in development, 
prototyping, and test activities preceding and leading to 
acceptance for operational use: Provided further, That this 
restriction does not apply to programs funded within the 
National Foreign Intelligence Program: Provided further, 
That the Secretary of Defense may waive this restriction 
on a case-by-case basis by certifying in writing to the 
Committees on Appropriations of the House of Represent-
atives and the Senate that it is in the national security 
interest to do so. 
SEC. 8075. None of the funds made available in this 
Act may be used to approve or license the sale of the F–
22 advanced tactical fighter to any foreign government. 
SEC. 8076. (a) The Secretary of Defense may, on a 
case-by-case basis, waive with respect to a foreign country 
each limitation on the procurement of defense items from 
foreign sources provided in law if the Secretary determines 
that the application of the limitation with respect to that 
country would invalidate cooperative programs entered 
into between the Department of Defense and the foreign 
country, or would invalidate reciprocal trade agreements
HR 2658 RH 
for the procurement of defense items entered into under 
section 2531 of title 10, United States Code, and the 
country does not discriminate against the same or similar 
defense items produced in the United States for that coun-
try. 
(b) Subsection (a) applies with respect to—
(1) contracts and subcontracts entered into on 
or after the date of the enactment of this Act; and 
(2) options for the procurement of items that 
are exercised after such date under contracts that 
are entered into before such date if the option prices 
are adjusted for any reason other than the applica-
tion of a waiver granted under subsection (a). 
(c) Subsection (a) does not apply to a limitation re-
garding construction of public vessels, ball and roller bear-
ings, food, and clothing or textile materials as defined by 
section 11 (chapters 50–65) of the Harmonized Tariff 
Schedule and products classified under headings 4010, 
4202, 4203, 6401 through 6406, 6505, 7019, 7218 
through 7229, 7304.41 through 7304.49, 7306.40, 7502 
through 7508, 8105, 8108, 8109, 8211, 8215, and 9404. 
SEC. 8077. (a) PROHIBITION.—None of the funds 
made available by this Act may be used to support any 
training program involving a unit of the security forces 
of a foreign country if the Secretary of Defense has re-
HR 2658 RH 
ceived credible information from the Department of State 
that the unit has committed a gross violation of human 
rights, unless all necessary corrective steps have been 
taken. 
(b) MONITORING.—The Secretary of Defense, in con-
sultation with the Secretary of State, shall ensure that 
prior to a decision to conduct any training program re-
ferred to in subsection (a), full consideration is given to 
all credible information available to the Department of 
State relating to human rights violations by foreign secu-
rity forces. 
(c) WAIVER.—The Secretary of Defense, after con-
sultation with the Secretary of State, may waive the prohi-
bition in subsection (a) if he determines that such waiver 
is required by extraordinary circumstances. 
(d) REPORT.—Not more than 15 days after the exer-
cise of any waiver under subsection (c), the Secretary of 
Defense shall submit a report to the congressional defense 
committees describing the extraordinary circumstances, 
the purpose and duration of the training program, the 
United States forces and the foreign security forces in-
volved in the training program, and the information relat-
ing to human rights violations that necessitates the waiv-
er.
HR 2658 RH 
SEC. 8078. The Secretary of Defense, in coordination 
with the Secretary of Health and Human Services, may 
carry out a program to distribute surplus dental equip-
ment of the Department of Defense, at no cost to the De-
partment of Defense, to Indian Health Service facilities 
and to federally-qualified health centers (within the mean-
ing of section 1905(l)(2)(B) of the Social Security Act (42 
U.S.C. 1396d(l)(2)(B))). 
SEC. 8079. None of the funds appropriated or made 
available in this Act to the Department of the Navy shall 
be used to develop, lease or procure the T–AKE class of 
ships unless the main propulsion diesel engines and 
propulsors are manufactured in the United States by a 
domestically operated entity: Provided, That the Secretary 
of Defense may waive this restriction on a case-by-case 
basis by certifying in writing to the Committees on Appro-
priations of the House of Representatives and the Senate 
that adequate domestic supplies are not available to meet 
Department of Defense requirements on a timely basis 
and that such an acquisition must be made in order to 
acquire capability for national security purposes or there 
exists a significant cost or quality difference. 
SEC. 8080. None of the funds appropriated or other-
wise made available by this or other Department of De-
fense Appropriations Acts may be obligated or expended
HR 2658 RH 
for the purpose of performing repairs or maintenance to 
military family housing units of the Department of De-
fense, including areas in such military family housing 
units that may be used for the purpose of conducting offi-
cial Department of Defense business. 
SEC. 8081. Notwithstanding any other provision of 
law, funds appropriated in this Act under the heading 
‘‘Research, Development, Test and Evaluation, Defense-
Wide’’ for any advanced concept technology demonstration 
project may only be obligated 30 days after a report, in-
cluding a description of the project and its estimated an-
nual and total cost, has been provided in writing to the 
congressional defense committees: Provided, That the Sec-
retary of Defense may waive this restriction on a case-
by-case basis by certifying to the congressional defense 
committees that it is in the national interest to do so. 
SEC. 8082. Notwithstanding any other provision of 
law, for the purpose of establishing all Department of De-
fense policies governing the provision of care provided by 
and financed under the military health care system’s case 
management program under 10 U.S.C. 1079(a)(17), the 
term ‘‘custodial care’’ shall be defined as care designed 
essentially to assist an individual in meeting the activities 
of daily living and which does not require the supervision 
of trained medical, nursing, paramedical or other specially
HR 2658 RH 
trained individuals: Provided, That the case management 
program shall provide that members and retired members 
of the military services, and their dependents and sur-
vivors, have access to all medically necessary health care 
through the health care delivery system of the military 
services regardless of the health care status of the person 
seeking the health care: Provided further, That the case 
management program shall be the primary obligor for pay-
ment of medically necessary services and shall not be con-
sidered as secondarily liable to title XIX of the Social Se-
curity Act, other welfare programs or charity based care. 
SEC. 8083. During the current fiscal year and here-
after, refunds attributable to the use of the Government 
travel card, refunds attributable to the use of the Govern-
ment Purchase Card and refunds attributable to official 
Government travel arranged by Government Contracted 
Travel Management Centers may be credited to operation 
and maintenance accounts of the Department of Defense 
which are current when the refunds are received. 
SEC. 8084. (a) REGISTERING FINANCIAL MANAGE-
MENT INFORMATION TECHNOLOGY SYSTEMS WITH DOD 
CHIEF INFORMATION OFFICER.—None of the funds ap-
propriated in this Act may be used for a mission critical 
or mission essential financial management information 
technology system (including a system funded by the de-
HR 2658 RH 
fense working capital fund) that is not registered with the 
Chief Information Officer of the Department of Defense. 
A system shall be considered to be registered with that 
officer upon the furnishing to that officer of notice of the 
system, together with such information concerning the 
system as the Secretary of Defense may prescribe. A fi-
nancial management information technology system shall 
be considered a mission critical or mission essential infor-
mation technology system as defined by the Under Sec-
retary of Defense (Comptroller). 
(b) CERTIFICATIONS AS TO COMPLIANCE WITH FI-
NANCIAL MANAGEMENT MODERNIZATION PLAN.—
(1) During the current fiscal year, a financial 
management automated information system, a mixed 
information system supporting financial and non-fi-
nancial systems, or a system improvement of more 
than $1,000,000 may not receive Milestone A ap-
proval, Milestone B approval, or full rate production, 
or their equivalent, within the Department of De-
fense until the Under Secretary of Defense (Comp-
troller) certifies, with respect to that milestone, that 
the system is being developed and managed in ac-
cordance with the Department’s Financial Manage-
ment Modernization Plan. The Under Secretary of 
Defense (Comptroller) may require additional certifi-
HR 2658 RH 
cations, as appropriate, with respect to any such sys-
tem. 
(2) The Chief Information Officer shall provide 
the congressional defense committees timely notifica-
tion of certifications under paragraph (1). 
(c) CERTIFICATIONS
AS
TO
COMPLIANCE
WITH 
CLINGER-COHEN ACT.—
(1) During the current fiscal year, a major 
automated information system may not receive Mile-
stone A approval, Milestone B approval, or full rate 
production approval, or their equivalent, within the 
Department of Defense until the Chief Information 
Officer certifies, with respect to that milestone, that 
the system is being developed in accordance with the 
Clinger-Cohen Act of 1996 (40 U.S.C. 1401 et seq.). 
The Chief Information Officer may require addi-
tional certifications, as appropriate, with respect to 
any such system. 
(2) The Chief Information Officer shall provide 
the congressional defense committees timely notifica-
tion of certifications under paragraph (1). Each 
such notification shall include, at a minimum, the 
funding baseline and milestone schedule for each 
system covered by such a certification and confirma-
HR 2658 RH 
tion that the following steps have been taken with 
respect to the system: 
(A) Business process reengineering. 
(B) An analysis of alternatives. 
(C) An economic analysis that includes a 
calculation of the return on investment. 
(D) Performance measures. 
(E) An information assurance strategy 
consistent with the Department’s Global Infor-
mation Grid. 
(d) DEFINITIONS.—For purposes of this section: 
(1) The term ‘‘Chief Information Officer’’ 
means the senior official of the Department of De-
fense designated by the Secretary of Defense pursu-
ant to section 3506 of title 44, United States Code. 
(2) The term ‘‘information technology system’’ 
has the meaning given the term ‘‘information tech-
nology’’ in section 5002 of the Clinger-Cohen Act of 
1996 (40 U.S.C. 1401). 
SEC. 8085. During the current fiscal year, none of 
the funds available to the Department of Defense may be 
used to provide support to another department or agency 
of the United States if such department or agency is more 
than 90 days in arrears in making payment to the Depart-
ment of Defense for goods or services previously provided
HR 2658 RH 
to such department or agency on a reimbursable basis: 
Provided, That this restriction shall not apply if the de-
partment is authorized by law to provide support to such 
department or agency on a nonreimbursable basis, and is 
providing the requested support pursuant to such author-
ity: Provided further, That the Secretary of Defense may 
waive this restriction on a case-by-case basis by certifying 
in writing to the Committees on Appropriations of the 
House of Representatives and the Senate that it is in the 
national security interest to do so. 
SEC. 8086. None of the funds provided in this Act 
may be used to transfer to any nongovernmental entity 
ammunition held by the Department of Defense that has 
a center-fire cartridge and a United States military no-
menclature designation of ‘‘armor penetrator’’, ‘‘armor 
piercing (AP)’’, ‘‘armor piercing incendiary (API)’’, or 
‘‘armor-piercing incendiary-tracer (API–T)’’, except to an 
entity performing demilitarization services for the Depart-
ment of Defense under a contract that requires the entity 
to demonstrate to the satisfaction of the Department of 
Defense that armor piercing projectiles are either: (1) ren-
dered incapable of reuse by the demilitarization process; 
or (2) used to manufacture ammunition pursuant to a con-
tract with the Department of Defense or the manufacture 
of ammunition for export pursuant to a License for Per-
HR 2658 RH 
manent Export of Unclassified Military Articles issued by 
the Department of State. 
SEC. 8087. Notwithstanding any other provision of 
law, the Chief of the National Guard Bureau, or his des-
ignee, may waive payment of all or part of the consider-
ation that otherwise would be required under 10 U.S.C. 
2667, in the case of a lease of personal property for a 
period not in excess of 1 year to any organization specified 
in 32 U.S.C. 508(d), or any other youth, social, or fra-
ternal non-profit organization as may be approved by the 
Chief of the National Guard Bureau, or his designee, on 
a case-by-case basis. 
SEC. 8088. None of the funds appropriated by this 
Act shall be used for the support of any nonappropriated 
funds activity of the Department of Defense that procures 
malt beverages and wine with nonappropriated funds for 
resale (including such alcoholic beverages sold by the 
drink) on a military installation located in the United 
States unless such malt beverages and wine are procured 
within that State, or in the case of the District of Colum-
bia, within the District of Columbia, in which the military 
installation is located: Provided, That in a case in which 
the military installation is located in more than one State, 
purchases may be made in any State in which the installa-
tion is located: Provided further, That such local procure-
HR 2658 RH 
ment requirements for malt beverages and wine shall 
apply to all alcoholic beverages only for military installa-
tions in States which are not contiguous with another 
State: Provided further, That alcoholic beverages other 
than wine and malt beverages, in contiguous States and 
the District of Columbia shall be procured from the most 
competitive source, price and other factors considered. 
SEC. 8089. (a) The Department of Defense is author-
ized to enter into agreements with the Department of Vet-
erans Affairs and federally-funded health agencies pro-
viding services to Native Hawaiians for the purpose of es-
tablishing a partnership similar to the Alaska Federal 
Health Care Partnership, in order to maximize Federal 
resources in the provision of health care services by feder-
ally-funded health agencies, applying telemedicine tech-
nologies. For the purpose of this partnership, Native Ha-
waiians shall have the same status as other Native Ameri-
cans who are eligible for the health care services provided 
by the Indian Health Service. 
(b) The Department of Defense is authorized to de-
velop a consultation policy, consistent with Executive 
Order No. 13084 (issued May 14, 1998), with Native Ha-
waiians for the purpose of assuring maximum Native Ha-
waiian participation in the direction and administration of 
governmental services so as to render those services more
HR 2658 RH 
responsive to the needs of the Native Hawaiian commu-
nity. 
(c) For purposes of this section, the term ‘‘Native 
Hawaiian’’ means any individual who is a descendant of 
the aboriginal people who, prior to 1778, occupied and ex-
ercised sovereignty in the area that now comprises the 
State of Hawaii. 
SEC. 8090. Funds available to the Department of De-
fense for the Global Positioning System during the current 
fiscal year may be used to fund civil requirements associ-
ated with the satellite and ground control segments of 
such system’s modernization program. 
(INCLUDING TRANSFER OF FUNDS) 
SEC. 8091. Of the amounts appropriated in this Act 
under the heading, ‘‘Research, Development, Test and 
Evaluation, Defense-Wide’’, $48,000,000 shall remain 
available until expended: Provided, That notwithstanding 
any other provision of law, the Secretary of Defense is 
authorized to transfer such funds to other activities of the 
Federal Government: Provided further, That of the 
amounts made available under the heading ‘‘Operation 
and Maintenance, Army’’, up to $177,000,000 shall re-
main available until expended, and is available for the ac-
quisition of real property, construction, personal services, 
and operations, for certain classified activities, and may 
be transferred to other appropriations accounts of the De-
HR 2658 RH 
partment of Defense, and notwithstanding any other pro-
vision of law, such funds may be obligated to carry out 
projects not otherwise authorized by law: Provided further, 
That any funds transferred shall be merged with and 
made available for the same time period and for the same 
purposes as the appropriations to which transferred: Pro-
vided further, That the transfer authority provided in this 
paragraph is in addition to any other transfer authority 
provided to the Department of Defense. 
SEC. 8092. Section 8106 of the Department of De-
fense Appropriations Act, 1997 (titles I through VIII of 
the matter under subsection 101(b) of Public Law 104–
208; 110 Stat. 3009–111; 10 U.S.C. 113 note) shall con-
tinue in effect to apply to disbursements that are made 
by the Department of Defense in fiscal year 2004. 
SEC. 8093. In addition to amounts provided in this 
Act, $2,000,000 is hereby appropriated for ‘‘Defense 
Health Program’’, to remain available for obligation until 
expended: Provided, That notwithstanding any other pro-
vision of law, these funds shall be available only for a 
grant to the Fisher House Foundation, Inc., only for the 
construction and furnishing of additional Fisher Houses 
to meet the needs of military family members when con-
fronted with the illness or hospitalization of an eligible 
military beneficiary.
HR 2658 RH 
SEC. 8094. Amounts appropriated in title II are here-
by reduced by $172,500,000 to reflect savings attributable 
to improvements in the management of professional sup-
port services, surveys and analysis, and engineering and 
technical support contracted by the military departments, 
as follows: 
(1) From ‘‘Operation and Maintenance, Army’’, 
$21,500,000. 
(2) From ‘‘Operation and Maintenance, Navy’’, 
$34,400,000. 
(3) From ‘‘Operation and Maintenance, Marine 
Corps’’, $4,300,000. 
(4) From ‘‘Operation and Maintenance, Air 
Force’’, $21,300,000. 
(5) From ‘‘Operation and Maintenance, De-
fense-Wide’’, $91,000,000. 
(INCLUDING TRANSFER OF FUNDS) 
SEC. 8095. Of the amounts appropriated in this Act 
under the heading ‘‘Shipbuilding and Conversion, Navy’’, 
$899,502,000 shall be available until September 30, 2004, 
to fund prior year shipbuilding cost increases: Provided, 
That upon enactment of this Act, the Secretary of the 
Navy shall transfer such funds to the following appropria-
tions in the amounts specified: Provided further, That the 
amounts transferred shall be merged with and be available
100
HR 2658 RH 
for the same purposes as the appropriations to which 
transferred: 
To: 
Under the heading, ‘‘Shipbuilding and Conver-
sion, Navy, 1996/04’’: 
LPD–17 Amphibious Transport Dock Ship 
Program, $150,300,000; 
Under the heading, ‘‘Shipbuilding and Conver-
sion, Navy, 1998/04’’: 
New SSN, $81,060,000; 
Under the heading, ‘‘Shipbuilding and Conver-
sion, Navy, 1999/04’’: 
DDG–51 
Destroyer 
Program, 
$44,420,000; 
New SSN, $166,978,000; 
LPD–17 Amphibious Transport Dock Ship 
Program $86,821,000; 
Under the heading, ‘‘Shipbuilding and Conver-
sion, Navy, 2000/04’’: 
DDG–51 
Destroyer 
Program, 
$69,460,000; 
LPD–17 Amphibious Transport Dock Ship 
Program $112,778,000; and 
Under the heading, ‘‘Shipbuilding and Conver-
sion, Navy, 2001/04’’:
101
HR 2658 RH 
DDG–51 
Destroyer 
Program, 
$90,313,000; and 
New SSN, $97,372,000. 
SEC. 8096. The Secretary of the Navy may settle, 
or compromise, and pay any and all admiralty claims 
under 10 U.S.C. 7622 arising out of the collision involving 
the U.S.S. GREENEVILLE and the EHIME MARU, in 
any amount and without regard to the monetary limita-
tions in subsections (a) and (b) of that section: Provided, 
That such payments shall be made from funds available 
to the Department of the Navy for operation and mainte-
nance. 
SEC. 8097. Notwithstanding any other provision of 
law or regulation, the Secretary of Defense may exercise 
the provisions of 38 U.S.C. 7403(g) for occupations listed 
in 38 U.S.C. 7403(a)(2) as well as the following: 
Pharmacists, Audiologists, and Dental Hygien-
ists. 
(A) The requirements of 38 U.S.C. 
7403(g)(1)(A) shall apply. 
(B) 
The 
limitations 
of 
U.S.C. 
7403(g)(1)(B) shall not apply. 
SEC. 8098. Funds appropriated by this Act, or made 
available by the transfer of funds in this Act, for intel-
ligence activities are deemed to be specifically authorized
103
HR 2658 RH 
(1) From ‘‘Operation and Maintenance, Army’’, 
$107,000,000. 
(2) From ‘‘Operation and Maintenance, Navy’’, 
$45,000,000. 
(3) From ‘‘Operation and Maintenance, Air 
Force’’, $387,000,000. 
SEC. 8102. The amount appropriated in title II for 
‘‘Operation and Maintenance, Navy’’ is hereby reduced by 
$67,000,000 to reduce excess funded carryover. 
SEC. 8103. (a) In addition to the amounts provided 
elsewhere in this Act, the amount of $5,500,000 is hereby 
appropriated to the Department of Defense for ‘‘Oper-
ation and Maintenance, Army National Guard’’. Such 
amount shall be made available to the Secretary of the 
Army only to make a grant in the amount of $5,500,000 
to the entity specified in subsection (b) to facilitate access 
by veterans to opportunities for skilled employment in the 
construction industry. 
(b) The entity referred to in subsection (a) is the 
Center for Military Recruitment, Assessment and Vet-
erans Employment, a nonprofit labor-management co-op-
eration committee provided for by section 302(c)(9) of the 
Labor-Management Relations Act, 1947 (29 U.S.C. 
186(c)(9)), for the purposes set forth in section 6(b) of
104
HR 2658 RH 
the Labor Management Cooperation Act of 1978 (29 
U.S.C. 175a note). 
SEC. 8104. (a) During the current fiscal year and 
hereafter, funds available to the Secretary of a military 
department for Operation and Maintenance may be used 
for the purposes stated in subsection (b) to support chap-
lain-led programs to assist members of the Armed Forces 
and their immediate family members in building and 
maintaining a strong family structure. 
(b) The purposes referred to in subsection (a) are 
costs of transportation, food, lodging, supplies, fees, and 
training materials for members of the Armed Forces and 
their family members while participating in such pro-
grams, including participation at retreats and conferences. 
SEC. 8105. FINANCING AND FIELDING OF KEY ARMY 
CAPABILITIES.—The Department of Defense and the De-
partment of the Army shall make future budgetary and 
programming plans to fully finance the Non-Line of Sight 
(NLOS) Objective Force cannon and resupply vehicle pro-
gram in order to field this system in the 2008 timeframe. 
As an interim capability to enhance Army lethality, surviv-
ability, and mobility for light and medium forces before 
complete fielding of the Objective Force, the Army shall 
ensure that budgetary and programmatic plans will pro-
105
HR 2658 RH 
vide for no fewer than six Stryker Brigade Combat Teams 
to be fielded between 2003 and 2008. 
SEC. 8106. (a) MANAGEMENT OF CHEMICAL DEMILI-
TARIZATION ACTIVITIES AT BLUEGRASS ARMY DEPOT, 
KENTUCKY.—If a technology other than the baseline in-
cineration program is selected for the destruction of lethal 
chemical munitions pursuant to section 142 of the Strom 
Thurmond National Defense Authorization Act for Fiscal 
Year 1999 (Public Law 105–261; 50 U.S.C. 1521 note), 
the program manager for the Assembled Chemical Weap-
ons Assessment shall be responsible for management of 
the construction, operation, and closure, and any con-
tracting relating thereto, of chemical demilitarization ac-
tivities at Bluegrass Army Depot, Kentucky, including 
management of the pilot-scale facility phase of the alter-
native technology. 
(b) MANAGEMENT OF CHEMICAL DEMILITARIZATION 
ACTIVITIES AT PUEBLO DEPOT, COLORADO.—The pro-
gram manager for the Assembled Chemical Weapons As-
sessment shall be responsible for management of the con-
struction, operation, and closure, and any contracting re-
lating thereto, of chemical demilitarization activities at 
Pueblo Army Depot, Colorado, including management of 
the pilot-scale facility phase of the alternative technology 
selected for the destruction of lethal chemical munitions.
106
HR 2658 RH 
SEC. 8107. In addition to the amounts appropriated 
or otherwise made available in this Act, $6,500,000, to 
remain available until September 30, 2004, is hereby ap-
propriated to the Department of Defense: Provided, That 
the Secretary of Defense shall make grants in the amount 
of $4,000,000 to the American Red Cross for Armed 
Forces Emergency Services; and $2,500,000 to the In-
trepid Sea-Air-Space Foundation. 
SEC. 8108. None of the funds appropriated in this 
Act under the heading ‘‘Overseas Contingency Operations 
Transfer Fund’’ may be transferred or obligated for De-
partment of Defense expenses not directly related to the 
conduct of overseas contingencies: Provided, That the Sec-
retary of Defense shall submit a report no later than 30 
days after the end of each fiscal quarter to the Committees 
on Appropriations of the Senate and House of Representa-
tives that details any transfer of funds from the ‘‘Overseas 
Contingency Operations Transfer Fund’’: Provided fur-
ther, That the report shall explain any transfer for the 
maintenance of real property, pay of civilian personnel, 
base operations support, and weapon, vehicle or equipment 
maintenance. 
SEC. 8109. For purposes of section 1553(b) of title 
31, United States Code, any subdivision of appropriations 
made in this Act under the heading ‘‘Shipbuilding and
107
HR 2658 RH 
Conversion, Navy’’ shall be considered to be for the same 
purpose as any subdivision under the heading ‘‘Ship-
building and Conversion, Navy’’ appropriations in any 
prior fiscal year, and the 1 percent limitation shall apply 
to the total amount of the appropriation. 
SEC. 8110. None of the funds in this Act may be 
used for research, development, test, evaluation, procure-
ment or deployment of nuclear armed interceptors of a 
missile defense system. 
SEC. 8111. Notwithstanding section 2465 of title 10 
U.S.C., the Secretary of the Navy may use funds appro-
priated in title II of this Act under the heading, ‘‘Oper-
ation and Maintenance, Navy’’, to liquidate the expenses 
incurred for private security guard services performed at 
the Naval Support Unit, Saratoga Springs, New York by 
Burns International Security Services, Albany, New York 
in the amount of $29,323.35, plus accrued interest, if any. 
SEC. 8112. Of the amounts provided in title II of this 
Act under the heading, ‘‘Operation and Maintenance, De-
fense-Wide’’, $20,000,000 is available for the Regional 
Defense Counter-terrorism Fellowship Program, to fund 
the education and training of foreign military officers, 
ministry of defense civilians, and other foreign security of-
ficials, to include United States military officers and civil-
108
HR 2658 RH 
ian officials whose participation directly contributes to the 
education and training of these foreign students. 
SEC. 8113. (a) EXCHANGE REQUIRED.—In exchange 
for the private property described in subsection (b), the 
Secretary of the Interior shall convey to the Veterans 
Home of California—Barstow, Veterans of Foreign Wars 
Post #385E (in this section referred to as the ‘‘recipi-
ent’’), all right, title, and interest of the United States 
in and to a parcel of real property consisting of approxi-
mately one acre in the Mojave National Preserve and des-
ignated (by section 8137 of the Department of Defense 
Appropriations Act, 2002 (Public Law 107–117; 115 Stat. 
2278)) as a national memorial commemorating United 
States participation in World War I and honoring the 
American veterans of that war. Notwithstanding the con-
veyance of the property under this subsection, the Sec-
retary shall continue to carry out the responsibilities of 
the Secretary under such section 8137. 
(b) CONSIDERATION.—As consideration for the prop-
erty to be conveyed by the Secretary under subsection (a), 
Mr. and Mrs. Henry Sandoz of Mountain Pass, California, 
have agreed to convey to the Secretary a parcel of real 
property consisting of approximately five acres, identified 
as parcel APN 569–051–44, and located in the west 1⁄2 
of the northeast 1⁄4 of the northwest 1⁄4 of the northwest
109
HR 2658 RH 
1⁄4 of section 11, township 14 north, range 15 east, San 
Bernardino base and meridian. 
(c) EQUAL VALUE EXCHANGE; APPRAISAL.—The 
values of the properties to be exchanged under this section 
shall be equal or equalized as provided in subsection (d). 
The value of the properties shall be determined through 
an appraisal performed by a qualified appraiser in con-
formance with the Uniform Appraisal Standards for Fed-
eral Land Acquisitions (Department of Justice, December 
2000). 
(d) CASH EQUALIZATION.—Any difference in the 
value of the properties to be exchanged under this section 
shall be equalized through the making of a cash equali-
zation payment. The Secretary shall deposit any cash 
equalization payment received by the Secretary under this 
subsection in the Land and Water Conservation Fund. 
(e) REVERSIONARY CLAUSE.—The conveyance under 
subsection (a) shall be subject to the condition that the 
recipient maintain the conveyed property as a memorial 
commemorating United States participation in World War 
I and honoring the American veterans of that war. If the 
Secretary determines that the conveyed property is no 
longer being maintained as a war memorial, the property 
shall revert to the ownership of the United States.
110
HR 2658 RH 
(f) BOUNDARY ADJUSTMENT; ADMINISTRATION OF 
ACQUIRED LAND.—The boundaries of the Mojave Na-
tional Preserve shall be adjusted to reflect the land ex-
change required by this section. The property acquired by 
the Secretary under this section shall become part of the 
Mojave National Preserve and be administered in accord-
ance with the laws, rules, and regulations generally appli-
cable to the Mojave National Preserve. 
SEC. 8114. None of the funds appropriated or made 
available in this Act shall be used to reduce or disestablish 
the operation of the 53d Weather Reconnaissance Squad-
ron of the Air Force Reserve, if such action would reduce 
the WC–130 Weather Reconnaissance mission below the 
levels funded in this Act. 
SEC. 8115. The Secretary of the Air Force shall con-
vey, without consideration, to the Inland Valley Develop-
ment Agency all right, title, and interest of the United 
States in and to certain parcels of real property, including 
improvements thereon, located in San Bernardino, Cali-
fornia, that consist of approximately 39 acres and are 
leased, as of June 1, 2003, by the Secretary to the De-
fense Finance and Accounting Service. The conveyance 
shall be subject to the condition that the Inland Valley 
Development Agency and the Director of the Defense Fi-
nance and Accounting Service enter into a lease-back
111
HR 2658 RH 
agreement, acceptable to the Director, for premises re-
quired by the Director for support operations conducted 
by the Defense Finance and Accounting Service. 
SEC. 8116. Notwithstanding the provisions of section 
2401 of title 10, United States Code, the Secretary of the 
Navy is authorized to enter into a contract for the charter 
for a period through fiscal year 2008, of the vessel, RV 
CORY CHOUEST (United States Official Number 
933435) in support of the Surveillance Towed Array Sen-
sor (SURTASS) program: Provided, That funding for this 
lease shall be from within funds provided in this Act and 
future appropriations Acts. 
SEC. 8117. In addition to the amounts appropriated 
or otherwise made available elsewhere in this Act, and not-
withstanding any other provision of law, $20,000,000 is 
hereby appropriated to ‘‘Operation and Maintenance, 
Army’’, to remain available until September 30, 2004, to 
be available only for a grant in the amount of $20,000,000 
to the Silver Valley Unified School District, Silver Valley, 
California, for the purpose of school construction at Fort 
Irwin, California. 
SEC. 8118. Amounts appropriated in title II are here-
by reduced by $294,000,000 to reflect savings attributable 
to efficiencies and management improvements in the fund-
112
HR 2658 RH 
ing of miscellaneous or other contracts in the military de-
partments, as follows: 
(1) From ‘‘Operation and Maintenance, Army,’’ 
$27,000,000; 
(2) From ‘‘Operation and Maintenance, Navy,’’ 
$50,000,000; and 
(3) From ‘‘Operation and Maintenance, Air 
Force’’, $217,000,000. 
SEC. 8119. The amount appropriated in title II for 
‘‘Operation and Maintenance, Air Force’’ is hereby re-
duced by $600,000,000 to reflect cash balance and rate 
stabilization adjustments in the Department of Defense 
Transportation Working Capital Fund. 
(RESCISSION) 
SEC. 8120. Of the funds made available in chapter 
3 of title I of the Emergency Wartime Supplemental Ap-
propriations Act, 2003 (Public Law 108–11), under the 
heading ‘‘Iraq Freedom Fund’’ (117 Stat. 563), 
$2,000,000,000 is hereby rescinded. 
SEC. 8121. Of the total amount appropriated by this 
Act under the heading ‘‘Operation and Maintenance, De-
fense-Wide’’ to provide assistance to local educational 
agencies for children of members of the Armed Forces and 
Department of Defense civilian employees with severe dis-
abilities, the Secretary of Defense may use up to $855,566 
to make additional payment under section 363 of the
113
HR 2658 RH 
Floyd D. Spence National Defense Authorization Act for 
Fiscal Year 2001 (20 U.S.C. 7703(a)) to those local edu-
cational agencies whose percentage reduction in the pay-
ment amount for fiscal year 2002 was in excess of the 
reduction otherwise imposed under subsection (d) of such 
section for that fiscal year. The Secretary of Defense may 
waive collection of any overpayment made to local edu-
cational agencies under such section for fiscal year 2002. 
(INCLUDING TRANSFER OF FUNDS) 
SEC. 8122. 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 appropriations Act. 
SEC. 8123. None of the funds appropriated or other-
wise made available by this Act may be used to implement 
any amendment or revision of, or cancel, the Department 
of Defense Directive 1344.7, ‘‘Personal Commercial Solici-
tation on DoD Installations’’, until 90 days following the 
date the Secretary of Defense submits to Congress notice 
of the amendment, revision or cancellation, and the rea-
sons therefore. 
SEC. 8124. LIMITATION ON DEPLOYMENT OF TER-
RORISM INFORMATION AWARENESS PROGRAM.—
(1) Notwithstanding any other provision of law 
and except as provided in paragraph (2), if and
114
HR 2658 RH 
when research and development on the Terrorism 
Information Awareness program (formerly known as 
the Total Information Awareness program), or any 
component of such program, permits the deployment 
or implementation of such program or component, 
no department, agency, or element of the Federal 
Government may deploy or implement such program 
or component, or transfer such program or compo-
nent to another department, agency, or element of 
the Federal Government, until the Secretary of De-
fense—
(A) notifies Congress of that development, 
including a specific and detailed description 
of—
(i) each element or component of such 
program intended to be deployed or imple-
mented; and 
(ii) the method and scope of the in-
tended deployment or implementation of 
such program or component (including the 
data or information to be accessed or 
used); and 
(B) has received specific authorization by 
law from Congress for the deployment or imple-
115
HR 2658 RH 
mentation of such program or component, in-
cluding—
(i) a specific authorization by law for 
the deployment or implementation of such 
program or component; and 
(ii) a specific appropriation by law of 
funds for the deployment or implementa-
tion of such program or component. 
(2) The limitation in paragraph (1) shall not 
apply with respect to the deployment or implementa-
tion of the Terrorism Information Awareness pro-
gram, or a component of such program, in support 
of the following: 
(A) Lawful military operations of the 
United States conducted outside the United 
States. 
(B) Lawful foreign intelligence activities 
conducted wholly overseas, or wholly against 
non-United States citizens. 
SEC. 8125. (a) CLOSURE OF NAVAL STATION ROO-
SEVELT ROADS, PUERTO RICO.—Notwithstanding any 
other provision of law, the Secretary of the Navy shall 
close Naval Station Roosevelt Roads, Puerto Rico, no later 
than six months after enactment of this Act. 
(b) DISPOSAL.—
116
HR 2658 RH 
(1) The Secretary of the Navy shall exercise the 
authority granted to the Administrator of the Gen-
eral Services pursuant to section 545 of title 40 and 
dispose of the real property and associated personal 
property at the former Naval Station by public sale. 
(2) The Secretary of the Navy may transfer ex-
cess personal property or dispose of surplus personal 
property located at the installation pursuant to the 
Federal Property and Administrative Services Act of 
1949 (40 U.S.C. 521 et seq.). 
(c) The Secretary of the Navy may use funds in the 
Department of Defense Base Closure Account established 
by section 2906 of the Defense Base Closure and Realign-
ment Act of 1990, Public Law 101–510 to implement the 
closure. 
(d) There shall be deposited into the Account referred 
to in subsection (c) the proceeds of sale from the disposal 
of property authorized by subsection (b) for the benefit 
of the Department of the Navy.
This Act may be cited as the ‘‘Department of Defense 
Appropriations Act, 2004’’.