509
(6) For energy conservation projects authorized
by section 2404, $69,500,000.
(7) For base closure and realignment activities
as authorized by the Defense Base Closure and Re-
alignment Act of 1990 (part A of title XXIX of
Public Law 101–510; 10 U.S.C. 2687 note),
$370,427,000.
(8) For military family housing functions:
(A) For planning, design, and improve-
ment of military family housing and facilities,
$350,000.
(B) For support of military family housing
(including functions described in section 2833
of title 10, United States Code), $49,440,000.
(C) For credit to the Department of De-
fense Family Housing Improvement Fund es-
tablished by section 2883(a)(1) of title 10,
United States Code, $300,000.
(9) For construction of the Defense Threat Re-
duction Center at Fort Belvoir, Virginia, authorized
by section 2401(a) of the Military Construction Au-
thorization Act for Fiscal Year 2003 (division B of
Public Law 107–314; 116 Stat. 2695), $25,700,000.
(10) For the construction of phase 5 of an am-
munition demilitarization facility at Pueblo Depot
510
Activity, Colorado, authorized by section 2401(a) of
the Military Construction Authorization Act for Fis-
cal Year 1997 (division B of Public Law 104–201;
110 Stat. 2775), as amended by section 2406 of the
Military Construction Authorization Act for Fiscal
Year 2000 (division B of Public Law 106–65; 113
Stat. 839) and section 2407 of the Military Con-
struction Authorization Act for Fiscal Year 2003
(division B of Public Law 107–314; 116 Stat.
2698), $88,388,000.
(11) For the construction of phase 6 of an am-
munition demilitarization facility at Newport Army
Ammunition Plant, Indiana, authorized by section
2401(a) of the Military Construction Authorization
Act for Fiscal Year 1999 (division B of Public Law
105–261; 112 Stat. 2193), as amended by section
2406 of the Military Construction Authorization Act
for Fiscal Year 2003 (division B of Public Law 107–
314; 116 Stat. 2698), $15,207,000.
(12) For the construction of phase 4 of an am-
munition demilitarization facility at Blue Grass
Army Depot, Kentucky, authorized by section
2401(a) of the Military Construction Authorization
Act for Fiscal Year 2000 (division B of Public Law
106–65; 113 Stat. 835), as amended by section
511
2405 of the Military Construction Authorization Act
for Fiscal Year 2002 (division B of Public Law 107–
107; 115 Stat. 1298) and section 2405 of the Mili-
tary Construction Authorization Act for Fiscal Year
2003 (division B of Public Law 107–314; 116 Stat.
2698), $16,220,000.
(b) LIMITATION ON TOTAL COST OF CONSTRUCTION
PROJECTS.—Notwithstanding the cost variations author-
ized by section 2853 of title 10, United States Code, and
any other cost variation authorized by law, the total cost
of all projects carried out under section 2401 of this Act
may not exceed the total amount authorized to be appro-
priated under paragraphs (1) and (2) of subsection (a).
TITLE 
XXV—NORTH 
ATLANTIC
TREATY ORGANIZATION SE-
CURITY 
INVESTMENT 
PRO-
GRAM
SEC. 2501. AUTHORIZED NATO CONSTRUCTION AND LAND
ACQUISITION PROJECTS.
The Secretary of Defense may make contributions for
the North Atlantic Treaty Organization Security Invest-
ment program as provided in section 2806 of title 10,
United States Code, in an amount not to exceed the sum
of the amount authorized to be appropriated for this pur-
pose in section 2502 and the amount collected from the
512
North Atlantic Treaty Organization as a result of con-
struction previously financed by the United States.
SEC. 2502. AUTHORIZATION OF APPROPRIATIONS, NATO.
Funds are hereby authorized to be appropriated for
fiscal years beginning after September 30, 2003, for con-
tributions by the Secretary of Defense under section 2806
of title 10, United States Code, for the share of the United
States of the cost of projects for the North Atlantic Treaty
Organization Security Investment program authorized by
section 2501, in the amount of $169,300,000.
TITLE XXVI—GUARD AND
RESERVE FORCES FACILITIES
SEC. 2601. AUTHORIZED GUARD AND RESERVE CONSTRUC-
TION AND LAND ACQUISITION PROJECTS.
There are authorized to be appropriated for fiscal
years beginning after September 30, 2003, for the costs
of acquisition, architectural and engineering services, and
construction of facilities for the Guard and Reserve
Forces, and for contributions therefor, under chapter
1803 of title 10, United States Code (including the cost
of acquisition of land for those facilities), the following
amounts:
(1) For the Department of the Army—
(A) for the Army National Guard of the
United States, $253,788,000; and
513
(B) for the Army Reserve, $89,840,000.
(2) For the Department of the Navy, for the
Naval and Marine Corps Reserve, $45,762,000.
(3) For the Department of the Air Force—
(A) for the Air National Guard of the
United States, $123,408,000; and
(B) 
for 
the 
Air 
Force 
Reserve,
$61,143,000.
TITLE XXVII—EXPIRATION AND
EXTENSION OF AUTHORIZA-
TIONS
SEC. 
2701. 
EXPIRATION 
OF 
AUTHORIZATIONS 
AND
AMOUNTS REQUIRED TO BE SPECIFIED BY
LAW.
(a) EXPIRATION OF AUTHORIZATIONS AFTER THREE
YEARS.—Except as provided in subsection (b), all author-
izations contained in titles XXI through XXVI for military
construction projects, land acquisition, family housing
projects and facilities, and contributions to the North At-
lantic Treaty Organization Security Investment program
(and authorizations of appropriations therefor) shall ex-
pire on the later of—
(1) October 1, 2006; or
514
(2) the date of the enactment of an Act author-
izing funds for military construction for fiscal year
2007.
(b) EXCEPTION.—Subsection (a) shall not apply to
authorizations for military construction projects, land ac-
quisition, family housing projects, and facilities, and con-
tributions to the North Atlantic Treaty Organization Se-
curity Investment program (and authorizations of appro-
priations therefor) for which appropriated funds have been
obligated before the later of—
(1) October 1, 2006; or
(2) the date of the enactment of an Act author-
izing funds for fiscal year 2007 for military con-
struction projects, land acquisition, family housing
projects and facilities, and contributions to the
North Atlantic Treaty Organization Security Invest-
ment program.
SEC. 2702. EXTENSION OF AUTHORIZATION OF CERTAIN
FISCAL YEAR 2001 PROJECT.
(a) EXTENSION OF CERTAIN PROJECT.—Notwith-
standing section 2701 of the Floyd D. Spence National
Defense Authorization Act for Fiscal Year 2001 (as en-
acted into law by Public Law 106–398; 114 Stat. 1654A–
407), the authorization set forth in the table in subsection
(b), as provided in section 2102 of that Act, shall remain
515
in effect until October 1, 2004, or the date of the enact-
ment of an Act authorizing funds for military construction
for fiscal year 2005, whichever is later.
(b) TABLE.—The table referred to in subsection (a)
is as follows:
Army: Extension of 2001 Project Authorization
State
Installation or loca-
tion
Project
Amount
South Carolina .............
Fort Jackson ...............
New Construc-
tion—GFOQ
$250,000
SEC. 2703. EXTENSION OF AUTHORIZATIONS OF CERTAIN
FISCAL YEAR 2000 PROJECTS.
(a) EXTENSION.—Notwithstanding section 2701 of
the Military Construction Authorization Act for Fiscal
Year 2000 (division B of Public Law 106–65; 113 Stat.
841), the authorizations set forth in the tables in sub-
section (b), as provided in section 2302 or 2601 of that
Act and extended by section 2702 of the Military Con-
struction Authorization Act for Fiscal Year 2003 (division
B of Public Law 107–314; 116 Stat. 2700), shall remain
in effect until October 1, 2004, or the date of the enact-
ment of an Act authorizing funds for military construction
for fiscal year 2005, whichever is later.
(b) TABLES.—The tables referred to in subsection (a)
is as follows:
516
Air Force: Extension of 2000 Project Authorization
State
Installation or loca-
tion
Project
Amount
Oklahoma .....................
Tinker Air Force Base
Replace Family
Housing (41
Units) ..........
$6,000,000
Army National Guard: Extension of 2000 Project Authorization
State
Installation or loca-
tion
Project
Amount
Virginia .........................
Fort Pickett ................
Multi-purpose
Range-Heavy
$13,500,000
SEC. 2704. EFFECTIVE DATE.
Titles XXI, XXII, XXIII, XXIV, XXV, and XXVI
of this Act shall take effect on the later of—
(1) October 1, 2003; or
(2) the date of the enactment of this Act.
TITLE XXVIII—GENERAL
PROVISIONS
Subtitle A—Military Construction
Program and Military Family
Housing Changes
SEC. 2801. INCREASE IN MAXIMUM AMOUNT OF AUTHOR-
IZED ANNUAL EMERGENCY CONSTRUCTION.
Section 2803(c)(1) of title 10, United States Code,
is amended by striking ‘‘$30,000,000’’ and inserting
‘‘$45,000,000’’.
517
SEC. 2802. AUTHORITY TO LEASE MILITARY FAMILY HOUS-
ING UNITS IN ITALY.
Section 2828(e)(2) of title 10, United States Code,
is amended by striking ‘‘2,000 units‘‘ and inserting
‘‘2,800 units’’.
SEC. 2803. CHANGES TO ALTERNATIVE AUTHORITY FOR AC-
QUISITION AND IMPROVEMENT OF MILITARY
HOUSING.
(a) SPACE LIMITATIONS BY PAY GRADE.—Section
2880(b)(2) of title 10, United States Code, is amended
by striking ‘‘unless the unit is located on a military instal-
lation’’.
(b) DEPARTMENT OF DEFENSE HOUSING FUND.—
(1) Section 2883 of such title is amended by striking sub-
sections (a), (b), and (c) and inserting the following new
subsections (a) and (b):
‘‘(a) ESTABLISHMENT.—There is hereby established
on the books of the Treasury an account to be known as
the Department of Defense Housing Improvement Fund
(in this section referred to as the ‘Fund’).
‘‘(b) CREDITS TO FUND.—There shall be credited to
the Fund the following:
‘‘(1) Amounts authorized for and appropriated
to the Fund.
‘‘(2) Subject to subsection (e), any amounts
that the Secretary of Defense transfers, in such
518
amounts as are provided for in appropriation Acts,
to the Fund from amounts authorized and appro-
priated to the Department of Defense for the acqui-
sition or construction of military family housing or
military unaccompanied housing.
‘‘(3) Proceeds from the conveyance or lease of
property or facilities under section 2878 of this title
for the purpose of carrying out activities under this
subchapter with respect to military family housing
or military unaccompanied housing.
‘‘(4) Income derived from any activities under
this subchapter with respect to military family hous-
ing or military unaccompanied housing, income and
gains realized from investments under section 2875
of this title, and any return of capital invested as
part of such investments.
‘‘(5) Any amounts that the Secretary of the
Navy transfers to the Fund pursuant to section
2814(i)(3) of this title, subject to the restrictions on
the use of the transferred amounts specified in that
section.’’.
(2) Such section is further amended—
(A) by redesignating subsections (d) through
(g) as subsections (c) through (f), respectively;
(B) in subsection (c), as so redesignated—
519
(i) in the subsection heading, by striking
‘‘FUNDS’’ and inserting ‘‘FUND’’;
(ii) in paragraph (1)—
(I) by striking ‘‘subsection (e)’’ and
inserting ‘‘subsection (d)’’; and
(II) by striking ‘‘Department of De-
fense Family Housing Improvement Fund’’
and inserting ‘‘Fund’’;
(iii) by striking paragraph (2); and
(iv) by redesignating paragraph (3) as
paragraph (2);
(C) in subsection (e), as so redesignated, by
striking ‘‘a Fund under paragraph (1)(B) or (2)(B)
of subsection (c)’’ and inserting ‘‘the Fund under
subsection (b)(2)’’; and
(D) in subsection (f), as so redesignated, by
striking ‘‘$850,000,000’’ in paragraph (1) and in-
serting ‘‘$900,000,000’’.
(c) TRANSFER
OF UNOBLIGATED AMOUNTS.—(1)
The Secretary of Defense shall transfer to the Department
of Defense Housing Improvement Fund established under
section 2883(a) of title 10, United States Code (as amend-
ed by subsection (b)), any amounts in the Department of
Defense Family Housing Improvement Fund and the De-
partment of Defense Military Unaccompanied Housing
520
Improvement that remain available for obligation as of the
date of the enactment of this Act.
(2) Amounts transferred to the Department of De-
fense Housing Improvement Fund under paragraph (1)
shall be merged with amounts in that Fund, and shall be
available for the same purposes, and subject to the same
conditions and limitations, as other amounts in that Fund.
(d) CONFORMING AMENDMENTS.—(1) Paragraph (3)
of section 2814(i) of such title is amended—
(A) by striking subparagraph (A) and inserting
the following new subparagraph (A):
‘‘(A) The Secretary may transfer funds from the
Ford Island Improvement Account to the Department of
Defense Housing Improvement Fund established by sec-
tion 2883(a) of this title.’’; and
(B) in subparagraph (B), by striking ‘‘a fund’’
and inserting ‘‘the Fund’’.
(2) Section 2871(6) of such title is amended by strik-
ing ‘‘Department of Defense Family Housing Improve-
ment Fund or the Department of Defense Military Unac-
companied Housing Improvement Fund’’ and inserting
‘‘Department of Defense Housing Improvement Fund’’.
(3) Section 2875(e) of such title is amended by strik-
ing ‘‘Department of Defense Family Housing Improve-
ment Fund or the Department of Defense Military Unac-
521
companied Housing Improvement Fund’’ and inserting
‘‘Department of Defense Housing Improvement Fund’’.
(e) CLERICAL AMENDMENTS.—(1) The section head-
ing for section 2883 of such title is amended to read as
follows:
‘‘§ 2883. Department of Defense Housing Improve-
ment Fund’’.
(2) The table of sections at the beginning subchapter
IV of chapter 169 of such title is amended by striking
the item relating to section 2883 and inserting the fol-
lowing new item:
‘‘2883. Department of Defense Housing Improvement Fund.’’.
SEC. 2804. ADDITIONAL MATERIAL FOR ANNUAL REPORT
ON HOUSING PRIVATIZATION PROGRAM.
Section 2884(b) of title 10, United States Code, is
amended—
(1) in paragraph (2), by inserting before the pe-
riod at the end the following: ‘‘, and such rec-
ommendations as the Secretary considers necessary
for improving the extent and effectiveness of the use
of such authorities in the future’’; and
(2) by striking paragraph (3) and inserting the
following new paragraphs:
‘‘(3) A review of activities of the Secretary
under this subchapter during such preceding fiscal
year, shown for military family housing, military un-
522
accompanied housing, dual military family housing
and military unaccompanied housing, and ancillary
supporting facilities.
‘‘(4) If a contract for the acquisition or con-
struction of military family housing, military unac-
companied housing, or dual military family housing
and military unaccompanied housing entered into
during the preceding fiscal year did not include the
acquisition or construction of the types of ancillary
supporting facilities specifically referred to in section
2871(1) of this title, a explanation of the reasons
why such ancillary supporting facilities were not in-
cluded.
‘‘(5) A description of the Secretary’s plans for
housing privatization activities under this subchapter
(A) during the fiscal year for which the budget is
submitted, and (B) during the period covered by the
then-current future-years defense plan under section
221 of this title.’’.
523
SEC. 2805. AUTHORITY TO CONVEY PROPERTY AT MILITARY
INSTALLATIONS CLOSED OR TO BE CLOSED
IN EXCHANGE FOR MILITARY CONSTRUCTION
ACTIVITIES.
(a) IN GENERAL.—(1) Subchapter III of chapter 169
of title 10, United States Code, is amended by adding at
the end the following new section:
‘‘§ 2869. Conveyance of property at military installa-
tions closed or to be closed in exchange
for military construction activities
‘‘(a) CONVEYANCE AUTHORIZED; CONSIDERATION.—
The Secretary of Defense may enter into an agreement
to convey real property, including any improvements
thereon, located on a military installation that is closed
or realigned under a base closure law to any person who
agrees, in exchange for the real property—
‘‘(1) to carry out, or provide services in connec-
tion with, an authorized military construction
project; or
‘‘(2) to transfer to the Secretary of Defense
housing that is constructed or provided by the per-
son and located at or near a military installation at
which there is a shortage of suitable military family
housing or military unaccompanied housing (or
both).
524
‘‘(b) CONDITIONS ON CONVEYANCE AUTHORITY.—A
conveyance of real property may be made under subsection
(a) only if—
‘‘(1) the fair market value of the consideration
to be received in exchange for the real property con-
veyed under subsection (a) is equal to or greater
than the fair market value of the property, including
any improvements thereon, as determined by the
Secretary concerned; and
‘‘(2) in the event the fair market value of the
consideration to be received is equal to at least 90
percent, but less than 100 percent, of the fair mar-
ket value of the real property to be conveyed, includ-
ing any improvements thereon, the recipient of the
property agrees to pay to the Secretary of Defense
an amount equal to the difference in the fair market
values.
‘‘(c) USE OF AUTHORITY.—(1) To the maximum ex-
tent practicable, the Secretary of Defense shall use the
authority provided by subsection (a) to convey at least 20
percent of the total acreage conveyed each fiscal year at
military installations closed or realigned under the base
closure laws. Notice of the proposed use of this authority
shall be provided in such manner as the Secretary may
prescribe, including publication in the Federal Register
525
and otherwise. In determining such total acreage for a fis-
cal year, the Secretary shall exclude real property identi-
fied in a redevelopment plan as property essential to the
reuse or redevlopment of a military installation closed or
to be closed under a base closure law.
‘‘(2) To the maximum extent practicable, the Sec-
retary of Defense shall endeavor to use the authority pro-
vided by subsection (a) to obtain military construction and
military housing services having a total value of at least
$200,000,000 each fiscal year for each of the military de-
partments.
‘‘(3) The Secretary concerned shall utilize the author-
ity provided in subsection (a) in lieu of obligating and ex-
pending funds appropriated for military construction and
military housing projects that are authorized by law.
‘‘(d) DEPOSIT OF FUNDS.—The Secretary of Defense
may deposit funds received under subsection (b)(2) in the
Department of Defense Housing Improvement Fund es-
tablished under section 2883(a) of this title.
‘‘(e) ANNUAL REPORT.—The Secretary of Defense
shall include each year in the materials that the Secretary
submits to Congress in support of the budget submitted
by the President pursuant to section 1105 of title 31 a
report detailing the extent to which the Secretary used the
authority provided by subsection (a) to convey real prop-
526
erty in exchange for military construction and military
housing and plans for the use of such authority for the
future. The report shall include the following:
‘‘(1) The total value of the real property that
was actually conveyed during the preceding fiscal
year using the authority provided by subsection (a).
‘‘(2) The total value of the military construction
and military housing services obtained in exchange,
and, if the dollar goal specified in subsection (c)(2)
was not achieved for a military department, an ex-
planation regarding the reasons why the goal was
not achieved.
‘‘(3) The current inventory of unconveyed lands
at military installations closed or realigned under a
base closure law.
‘‘(4) A description of the results of conveyances
under subsection (a) during the preceding fiscal year
and plans for such conveyances for the current fiscal
year, the fiscal year covered by the budget, and the
period covered by the current future-years defense
program under section 221 of this title.
‘‘(f) DESCRIPTION OF PROPERTY.—The exact acre-
age and legal description of real property conveyed under
subsection (a) shall be determined by surveys satisfactory
to the Secretary of Defense.
527
‘‘(g) ADDITIONAL TERMS AND CONDITIONS.—The
Secretary of Defense may require such additional terms
and conditions in connection with a conveyance under sub-
section (a) as the Secretary considers appropriate to pro-
tect the interests of the United States.’’.
(2) The table of sections at the beginning of such sub-
chapter is amended by adding at the end the following
new item:
‘‘2869. Conveyance of property at military installations closed or to be closed
in exchange for military construction activities.’’.
(b) EXCEPTION TO REQUIREMENT FOR AUTHORIZA-
TION OF NUMBER OF HOUSING UNITS.—Section 2822(b)
of such title is amended by adding at the end the following
new paragraph:
‘‘(6) Housing units constructed or provided
under section 2869 of this title.’’.
(c) CONFORMING AMENDMENT TO DEPARTMENT OF
DEFENSE
HOUSING
IMPROVEMENT
FUND.—Section
2883(b) of such title, as amended by section 2803, is fur-
ther amended by adding at the end the following new para-
graph:
‘‘(6) Any amounts that the Secretary concerned
transfers to the Fund pursuant to section 2869 of
this title.’’.
(d) CONFORMING
REPEALS
TO
BASE
CLOSURE
LAWS.—(1) Section 204(e) of the Defense Authorization
528
Amendments and Base Closure and Realignment Act
(Public Law 100–526; 10 U.S.C. 2687 note) is repealed.
(2) Section 2905(f) of the Defense Base Closure and
Realignment Act of 1990 (part A of title XXIX of Public
Law 101–510; 10 U.S.C. 2687 note) is repealed.
SEC. 2806. CONGRESSIONAL NOTIFICATION AND REPORT-
ING REQUIREMENTS AND LIMITATIONS RE-
GARDING USE OF OPERATION AND MAINTE-
NANCE FUNDS FOR CONSTRUCTION.
(a) IN GENERAL.—Subchapter I of chapter 169 of
title 10, United States Code, is amended by inserting after
section 2809 the following new section:
‘‘§ 2810. Use of operation and maintenance funds for
construction: notification and reporting
requirements and limitations
‘‘(a) ADVANCE NOTIFICATION OF OBLIGATION OF
FUNDS.—(1) The Secretary concerned shall submit to the
appropriate committees of Congress advance written no-
tice before appropriations available for operation and
maintenance are obligated for construction described in
paragraph (2). The notice shall be submitted not later
than 14 days before the date on which appropriations
available for operation and maintenance are first obligated
for that construction and shall contain the information re-
quired by subsection (c).
529
‘‘(2) Paragraph (1) applies with respect to any con-
struction having an estimated total cost of more than
$1,500,000, but not more than $5,000,000, which is paid
for in whole or in part using appropriations available for
operation and maintenance, if—
‘‘(A) the construction is necessary to meet ur-
gent military operational requirements of a tem-
porary nature;
‘‘(B) the construction was not carried out at a
military installation where the United States is rea-
sonably expected to have a long-term interest or
presence;
‘‘(C) the United States has no intention of
using the construction after the operational require-
ment has been satisfied; and
‘‘(D) the level of construction is the minimum
necessary to meet the temporary operational need.
‘‘(b) WAIVER AUTHORITY; CONGRESSIONAL NOTIFI-
CATION.—(1) The Secretary concerned may waive the ad-
vance notice requirement under subsection (a) on a case-
by-case basis if the Secretary determines that—
‘‘(A) the project is vital to the national security
or to the protection of health, safety, or the quality
of the environment; and
530
‘‘(B) the requirement for the construction is so
urgent that deferral of the construction during the
period specified in subsection (a)(1) would be incon-
sistent with national security or the protection of
health, safety, or environmental quality, as the case
may be.
‘‘(2) Not later than five days after the date on which
a waiver is granted under paragraph (1), the Secretary
concerned shall provide to the appropriate committees of
Congress written notice containing the reasons for the
waiver and the information required by subsection (c) with
regard to the construction for which the waiver was grant-
ed.
‘‘(c) CONTENT
OF NOTICE.—The notice provided
under subsection (a) or (b) with regard to construction
funded using appropriations available for operation and
maintenance shall include the following:
‘‘(1) A description of the purpose for which the
funds are being obligated.
‘‘(2) An estimate of the total amount to be obli-
gated for the construction.
‘‘(3) The reasons appropriations available for
operation and maintenance are being used.
‘‘(d) LIMITATIONS
ON USE
OF OPERATION
AND
MAINTENANCE FUNDS.—(1) The Secretary concerned
531
shall not use appropriations available for operation and
maintenance to carry out any construction having an esti-
mated total cost of more than $5,000,000.
‘‘(2) The total cost of construction carried out by the
Secretaries concerned in whole or in part using appropria-
tions available for operation and maintenance shall not ex-
ceed $200,000,000 in any fiscal year.
‘‘(e) QUARTERLY
REPORT.—The Secretary con-
cerned shall submit to the appropriate committees of Con-
gress a quarterly report on the worldwide obligation and
expenditure of appropriations available for operation and
maintenance by the Secretary concerned for construction
during the preceding quarter.’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of such subchapter is amended by insert-
ing after the item relating to section 2809 the following
new item:
‘‘2810. Use of operation and maintenance funds for construction: notification
and reporting requirements and limitations.’’.
SEC. 2807. INCREASE IN AUTHORIZED MAXIMUM LEASE
TERM FOR FAMILY HOUSING AND OTHER FA-
CILITIES IN CERTAIN FOREIGN COUNTRIES.
(a) LEASE OF MILITARY FAMILY HOUSING.—Section
2828(d)(1) of title 10, United States Code, is amended
by striking ‘‘ten years,’’ and inserting ‘‘10 years, or 15
years in the case of leases in Korea,’’.
532
(b) LEASES OF OTHER FACILITIES.—Section 2675
of such title is amended by inserting after ‘‘five years,’’
the following: ‘‘or 15 years in the case of a lease in
Korea,’’.
SEC. 2808. ANNUAL REPORT ON MILITARY CONSTRUCTION
REQUIREMENTS TO SUPPORT HOMELAND DE-
FENSE MISSIONS OF THE ARMED FORCES.
As part of the annual defense authorization request
required by section 113a(b) of title 10, United States
Code, the Secretary of Defense shall include an assess-
ment of the military construction requirements anticipated
to be necessary to support the homeland defense missions
of the Armed Forces for the fiscal year for which the de-
fense authorization request is submitted, for the fiscal
years covered by the then-current future-years defense
plan under section 221 of such title, and for subsequent
fiscal years.
Subtitle B—Real Property and
Facilities Administration
SEC. 2811. REAL PROPERTY TRANSACTIONS.
(a) INCREASE IN LAND ACQUISITION AUTHORITY
COST THRESHOLD.—Section 2672 of title 10, United
States Code, is amended by striking ‘‘$500,000’’ both
places it appears and inserting ‘‘$1,500,000’’.
533
(b) PROMPT NOTIFICATION OF CERTAIN LAND AC-
QUISITIONS.—Section 2672a of such title is amended—
(1) in subsection (a)(1), by striking ‘‘he or his
designee’’ and inserting ‘‘the Secretary’’;
(2) in subsection (b), by striking the last sen-
tence; and
(3) by adding at the end the following new sub-
section:
‘‘(c) Not later than 10 days after the determination
is made under subsection (a)(1) that acquisition of an in-
terest in land is needed in the interest of the national de-
fense, the Secretary of the military department making
that determination shall provide to the Committee on
Armed Services of the Senate and the Committee on
Armed Services of the House of Representatives written
notice containing a description of the property and interest
to be acquired and the reasons for the acquisition.’’.
(c) MODIFICATION OF RELATED NOTIFICATION RE-
QUIREMENTS.—Section 2662 of such title is amended—
(1) in subsection (a)—
(A) by striking ‘‘30 days’’ and all that fol-
lows through ‘‘is submitted’’ and inserting ‘‘14
days after the beginning of the month with re-
spect to which a single report containing the
facts concerning such transaction and all other
534
such proposed transactions for that month is
submitted, not later than the first day of that
month,’’; and
(B) by striking ‘‘$500,000’’ each place it
appears and inserting ‘‘$1,500,000’’;
(2) in subsection (b), by striking ‘‘more than’’
and all that follows through ‘‘$500,000’’ and insert-
ing ‘‘more than $250,000 but not more than
$1,500,000’’;
(3) in subsection (e)—
(A) by striking ‘‘$500,000’’ and inserting
‘‘$1,000,000’’; and
(B) by striking ‘‘thirty days’’ and inserting
‘‘14 days’’; and
(4) in subsection (g)(3), by striking ‘‘30 days’’
and inserting ‘‘14 days’’.
(d) CLERICAL AMENDMENTS.—(1) The heading of
section 2672 of such title is amended to read as follows:
‘‘§ 2672. Authority to acquire low-cost interests in
land’’.
(2) The item relating to section 2672 in the table of
sections at the beginning of chapter 159 of such title is
amended to read as follows:
‘‘2672. Authority to acquire low-cost interests in land.’’.
535
SEC. 2812. SENSE OF CONGRESS ON DEMOLITION OF ARMY
TACONY WAREHOUSE DEPOT SITE, PHILA-
DELPHIA, PENNSYLVANIA.
(a) FINDINGS.—Congress finds the following:
(1) The Department of Defense Appropriations
Act, 2001 (Public Law 106–259; 114 Stat. 656),
appropriated $5,000,000 for the demolition of the
Army Tacony Warehouse depot site in Philadelphia,
Pennsylvania, operated by Fort Dix.
(2) The Secretary of the Army has yet to imple-
ment plans to demolish the Tacony warehouse.
(b) SENSE OF CONGRESS.—It is the sense of Con-
gress that the Secretary of the Army should take swift
action to finally demolish the Tacony warehouse, as pre-
viously required by Act of Congress.
Subtitle C—Land Conveyances
SEC. 2821. TERMINATION OF LEASE AND CONVEYANCE OF
ARMY RESERVE FACILITY, CONWAY, ARKAN-
SAS.
(a) TERMINATION OF LEASE.—Upon the completion
of the replacement facility authorized for the Army Re-
serve facility located in Conway, Arkansas, the Secretary
of the Army may terminate the 99-year lease between the
Secretary and the University of Central Arkansas for the
property on which the old facility is located.
536
(b) CONVEYANCE OF FACILITY.—As part of the ter-
mination of the lease under subsection (a), the Secretary
may convey, without consideration, to the University of
Central Arkansas all right, title, and interest of the United
States in and to the Army Reserve facility located on the
leased property.
(c) ASSUMPTION OF LIABILITY.—The University of
Central Arkansas shall expressly accept any and all liabil-
ity pertaining to the physical condition of the Army Re-
serve facility conveyed under subsection (b) and shall hold
the United States harmless from any and all liability aris-
ing from the facility’s physical condition.
SEC. 2822. ACTIONS TO QUIET TITLE, FALLIN WATERS SUB-
DIVISION, EGLIN AIR FORCE BASE, FLORIDA.
(a) AUTHORITY
TO QUIET TITLE.—(1) Notwith-
standing the restoration provisions under the heading
‘‘QUARTERMASTER CORPS’’ in the Second Deficiency Ap-
propriation Act, 1940 (Act of June 27, 1940; chapter 437;
54 Stat. 655), the Secretary of the Air Force may take
appropriate action to quiet title to tracts of land referred
to in paragraph (2) on, at, adjacent, adjoining, or near
Eglin Air Force Base, Florida. The Secretary may take
such action in order to resolve encroachments upon private
property by the United States and upon property of the
537
United States by private parties, which resulted from reli-
ance on inaccurate surveys.
(2) The tracts of land referred to in paragraph (1)
are generally described as south of United States Highway
98 and bisecting the north/south section line of sections
13 and 14, township 2 south, range 25 west, located in
the platted subdivision of Fallin Waters, Okaloosa County,
Florida. The exact acreage and legal description of such
tracts of land shall be determined by a survey satisfactory
to the Secretary.
(b) AUTHORIZED ACTIONS.—In carrying out sub-
section (a), appropriate action by the Secretary may in-
clude any of the following:
(1) Disclaiming, on behalf of the United States,
any intent by the United States to acquire by pre-
scription any property at or in the vicinity of Eglin
Air Force Base.
(2) Disposing of tracts of land owned by the
United States.
(3) Acquiring tracts of land by purchase, by do-
nation, or by exchange for tracts of land owned by
the United States at or adjacent to Eglin Air Force
Base.
(c) ACREAGE LIMITATIONS.—Individual tracts of
land acquired or conveyed by the Secretary under para-
538
graph (2) or (3) of subsection (a) may not exceed .10
acres. The total acreage so acquired may not exceed two
acres.
(d) CONSIDERATION.—Any conveyance by the Sec-
retary under this section may be made, at the discretion
of the Secretary, without consideration, or by exchange for
tracts of land adjoining Eglin Air Force Base in posses-
sion of private parties who mistakenly believed that they
had acquired title to such tracts.
SEC. 2823. MODIFICATION OF LAND CONVEYANCE, EGLIN
AIR FORCE BASE, FLORIDA.
(a) MODIFICATION.—Public Law 91–347 (84 Stat.
447) is amended—
(1) in the first section, by inserting ‘‘or for
other public purposes’’ before the period at the end;
and
(2) in section 3(1)—
(A) by inserting ‘‘or for other public pur-
poses’’ after ‘‘schools’’; and
(B) by striking ‘‘such purpose’’ and insert-
ing ‘‘such a purpose’’.
(b) ALTERATION OF LEGAL INSTRUMENT.—The Sec-
retary of the Air Force shall execute and file in the appro-
priate office an amended deed or other appropriate instru-
ment effectuating the modification of the reversionary in-
539
terest retained by the United States in connection with
the conveyance made pursuant to Public Law 91–347.
SEC. 2824. LAND CONVEYANCE, FORT CAMPBELL, KEN-
TUCKY AND TENNESSEE.
(a) CONVEYANCE AUTHORIZED.—The Secretary of
the Army may convey to the department of transportation
of the State of Tennessee (in this section referred to as
the ‘‘department’’) all right, title, and interest of the
United States in and to a parcel of real property (right-
of-way), including any improvements thereon, located at
Fort Campbell, Kentucky and Tennessee, for the purpose
of realigning and upgrading United States Highway 79
from a two-lane highway to a four-lane highway.
(b) CONSIDERATION.—(1) As consideration for the
conveyance under subsection (a), the department shall pay
from any source (including Federal funds made available
to the State from the Highway Trust Fund) all of the
costs of the Secretary incurred—
(A) to convey the property, including costs re-
lated to the preparation of documents under the Na-
tional Environmental Policy Act of 1969 (42 U.S.C.
4321 et seq.), surveys (including all surveys required
under subsection (c)), cultural reviews, and adminis-
trative oversight;
540
(B) to relocate a cemetery to permit the high-
way realignment and upgrading;
(C) to acquire approximately 200 acres of mis-
sion-essential replacement property required to sup-
port the training mission at Fort Campbell; and
(D) to dispose of residual Federal property lo-
cated south of the realigned highway.
(2) The Secretary may accept funds under this sub-
section from the Federal Highway Administration or the
State of Tennessee to pay costs described in paragraph
(1) and credit them to the appropriate Department of the
Army accounts for the purpose of paying such costs.
(3) All funds accepted by the Secretary under this
subsection shall remain available until expended.
(c) DESCRIPTION OF PROPERTY.—The exact acreage
and legal description of the property to be conveyed under
subsection (a) or acquired and disposed of under section
(b) shall be determined by surveys satisfactory to the Sec-
retary.
(d) ADDITIONAL TERMS
AND CONDITIONS.—The
Secretary may require such additional terms and condi-
tions in connection with the conveyance under subsection
(a) as the Secretary considers appropriate to protect the
interests of the United States.
541
SEC. 2825. LAND CONVEYANCE, ARMY AND AIR FORCE EX-
CHANGE 
SERVICE 
PROPERTY, 
DALLAS,
TEXAS.
(a) CONVEYANCE AUTHORIZED.—The Secretary of
Defense may authorize the Army and Air Force Exchange
Service, a nonappropriated fund instrumentality of the
United States, to convey, by sale, all right, title, and inter-
est of the United States in and to a parcel of real property,
including any improvements thereon, located at 1515
Roundtable Drive in Dallas, Texas.
(b) CONSIDERATION.—As consideration for convey-
ance under subsection (a), the purchaser shall pay to the
Secretary, in a single lump sum payment, an amount
equal to the fair market value of the real property con-
veyed, as determined by the Secretary. Section 574(a) of
title 40, United States Code, shall apply with respect to
the amounts received by the Secretary under this sub-
section.
(c) DESCRIPTION OF PROPERTY.—The exact acreage
and legal description of the real property to be conveyed
under subsection (a) shall be determined by a survey satis-
factory to the Secretary. The cost of the survey shall be
borne by the purchaser.
(d) ADDITIONAL TERMS
AND CONDITIONS.—The
Secretary may require such additional terms and condi-
tions in connection with the conveyance under subsection
542
(a) as the Secretary considers appropriate to protect the
interests of the United States.
SEC. 2826. LAND CONVEYANCE, NAVAL RESERVE CENTER,
ORANGE, TEXAS.
(a) CONVEYANCE AUTHORIZED.—The Secretary of
the Navy may convey to the City of Orange, Texas (in
this section referred to as the ‘‘City’’), all right, title, and
interest of the United States in and to a parcel of unim-
proved real property consisting of approximately 2.5 acres
at Naval Reserve Center, Orange, Texas for the purpose
of permitting the City to use the property for road con-
struction, economic development, and other public pur-
poses.
(b) CONSIDERATION.—As consideration for the con-
veyance under subsection (a), the City shall provide the
United States, whether by cash payment, in-kind contribu-
tion, or a combination thereof, an amount that is not less
than the fair market value, as determined by the Sec-
retary, of the property conveyed under such subsection.
(c) PAYMENT OF COSTS OF CONVEYANCE.—(1) The
Secretary may require the City to cover costs to be in-
curred by the Secretary, or to reimburse the Secretary for
costs incurred by the Secretary, to carry out the convey-
ance under subsection (a), including survey costs, costs re-
lated to environmental documentation, and other adminis-
543
trative costs related to the conveyance. If amounts are col-
lected from the City in advance of the Secretary incurring
the actual costs, and the amount collected exceeds the
costs actually incurred by the Secretary to carry out the
conveyance, the Secretary shall refund the excess amount
to the City.
(2) Amounts received as reimbursement under para-
graph (1) shall be credited to the fund or account that
was used to cover the costs incurred by the Secretary in
carrying out the conveyance. Amounts so credited shall be
merged with amounts in such fund or account, and shall
be available for the same purposes, and subject to the
same conditions and limitations, as amounts in such fund
or account.
(d) EXEMPTION FROM FEDERAL SCREENING.—The
conveyance authorized by subsection (a) is exempt from
the requirement to screen the property for other Federal
use pursuant to sections 2693 and 2696 of title 10, United
States Code.
(e) DESCRIPTION OF PROPERTY.—The exact acreage
and legal description of the real property to be conveyed
under subsection (a) shall be determined by a survey satis-
factory to the Secretary.
(f) ADDITIONAL TERMS AND CONDITIONS.—The Sec-
retary may require such additional terms and conditions
544
in connection with the conveyance under subsection (a) as
the Secretary considers appropriate to protect the inter-
ests of the United States.
SEC. 2827. LAND CONVEYANCE, FORT BELVOIR, VIRGINIA.
(a) CONVEYANCE REQUIRED.—The Secretary of the
Army shall convey, without consideration, to Fairfax
County, Virginia (in this section referred to as the ‘‘Coun-
ty’’), all right, title, and interest of the United States in
and to a parcel of real property, including any improve-
ments thereon, consisting of approximately 10 acres at
Fort Belvoir and known as the John McNaughton Memo-
rial baseball fields for the purpose of permitting the Coun-
ty to use the property for recreational purposes.
(b) PAYMENT OF COSTS OF CONVEYANCE.—(1) The
Secretary may require the County to cover costs to be in-
curred by the Secretary, or to reimburse the Secretary for
costs incurred by the Secretary, to carry out the convey-
ance under subsection (a), including survey costs, costs re-
lated to environmental documentation, and other adminis-
trative costs related to the conveyance. If amounts are col-
lected from the County in advance of the Secretary incur-
ring the actual costs, and the amount collected exceeds
the costs actually incurred by the Secretary to carry out
the conveyance, the Secretary shall refund the excess
amount to the County.
545
(2) Amounts received as reimbursement under para-
graph (1) shall be credited to the fund or account that
was used to cover the costs incurred by the Secretary in
carrying out the conveyance. Amounts so credited shall be
merged with amounts in such fund or account, and shall
be available for the same purposes, and subject to the
same conditions and limitations, as amounts in such fund
or account.
(c) DESCRIPTION OF PROPERTY.—The exact acreage
and legal description of the real property to be conveyed
under subsection (a) shall be determined by a survey satis-
factory to the Secretary.
(d) ADDITIONAL TERMS
AND CONDITIONS.—The
Secretary may require such additional terms and condi-
tions in connection with the conveyance under subsection
(a) as the Secretary considers appropriate to protect the
interests of the United States.
SEC. 2828. LAND CONVEYANCE, PUGET SOUND NAVAL SHIP-
YARD, BREMERTON, WASHINGTON.
(a) CONVEYANCE AUTHORIZED.—The Secretary of
the Navy may convey to the City of Bremerton, Wash-
ington (in this section referred to as the ‘‘City’’), all right,
title, and interest of the United States in and to a parcel
of real property, including any improvements thereon, con-
sisting of approximately 2.8 acres at the eastern end of
546
the Puget Sound Naval Shipyard, Bremerton, Wash-
ington, immediately adjacent to the Bremerton Transpor-
tation Center.
(b) CONSIDERATION.—As consideration for the con-
veyance under subsection (a), the City, directly or through
an agreement with another entity, shall replace adminis-
trative space on the parcel to be conveyed by renovating
for new occupancy approximately 7,500 square feet of ex-
isting space in Building 433 at Naval Station, Bremerton,
Washington, at no cost to the United States, in accord-
ance with plans and specifications acceptable to the Sec-
retary. In lieu of any portion of such renovation, the Sec-
retary may accept other facility alteration or repair of not
less than equal value.
(c) PAYMENT OF COSTS OF CONVEYANCE.—(1) The
Secretary shall require the City to cover costs to be in-
curred by the Secretary, or to reimburse the Secretary for
costs incurred by the Secretary, to carry out the convey-
ance under subsection (a), including survey costs, costs re-
lated to environmental documentation, and other adminis-
trative costs related to the conveyance. If amounts are col-
lected from the City in advance of the Secretary incurring
the actual costs, and the amount collected exceeds the
costs actually incurred by the Secretary to carry out the
547
conveyance, the Secretary shall refund the excess amount
to the City.
(2) Amounts received as reimbursement under para-
graph (1) shall be credited to the fund or account that
was used to cover the costs incurred by the Secretary in
carrying out the conveyance. Amounts so credited shall be
merged with amounts in such fund or account, and shall
be available for the same purposes, and subject to the
same conditions and limitations, as amounts in such fund
or account.
(d) ENVIRONMENTAL CONDITIONS.—The Secretary
may use funds available in the Environmental Restoration
Account, Navy to carry out the environmental remediation
of the real property to be conveyed under subsection (a).
Such environmental remediation shall be conducted in a
manner consistent with section 120 of the Comprehensive
Environmental Response, Compensation, and Liability Act
of 1980 (42 U.S.C. 9620), including the requirement to
consider the anticipated future land use of the parcel.
(e) EXEMPTION FROM FEDERAL SCREENING.—The
conveyance authorized by subsection (a) is exempt from
the requirement to screen the property for other Federal
use pursuant to sections 2693 and 2696 of title 10, United
States Code.
548
(f) DESCRIPTION OF PROPERTY.—The exact acreage
and legal description of the real property to be conveyed
under subsection (a) shall be determined by a survey satis-
factory to the Secretary.
(g) ADDITIONAL TERMS
AND CONDITIONS.—The
Secretary may require such additional terms and condi-
tions in connection with the conveyance under subsection
(a) as the Secretary considers appropriate to protect the
interests of the United States.
Subtitle D—Other Matters
SEC. 2841. REDESIGNATION OF YUMA TRAINING RANGE
COMPLEX AS BOB STUMP TRAINING RANGE
COMPLEX.
The military aviation training facility located in
southwestern Arizona and southeastern California and
known as the Yuma Training Range Complex shall be
known and designated as the ‘‘Bob Stump Training Range
Complex’’. Any reference to such training range complex
in any law, regulation, map, document, record, or other
paper of the United States shall be considered to be a ref-
erence to the Bob Stump Training Range Complex.
549
SEC. 2842. MODIFICATION OF AUTHORITY TO CONDUCT A
ROUND OF REALIGNMENTS AND CLOSURES
OF MILITARY INSTALLATIONS IN 2005.
(a) REVISION
TO FORCE STRUCTURE PLAN
FOR
2005 ROUND.—Section 2912(a) of the Defense Base Clo-
sure and Realignment Act of 1990 (part A of title XXIX
of Public Law 101–510; 10 U.S.C. 2687 note), as added
by section 3001 of the National Defense Authorization Act
for Fiscal Year 2002 (Public Law 107–107; 115 Stat.
1342), is amended—
(1) by striking subparagraph (A) of paragraph
(1) and inserting the following:
‘‘(A) A force-structure plan for the Armed
Forces that—
‘‘(i) at a minimum, assumes the force
structure under the 1991 Base Force force
structure (as defined in paragraph (5))
that is also known as the ‘Cheney-Powell
force structure’; and
‘‘(ii) includes such consideration as
the Secretary considers appropriate of an
assessment by the Secretary of—
‘‘(I) the probable threats to the
national security during the 20-year
period beginning with fiscal year
2005;
550
‘‘(II) the probable end-strength
levels and major military force units
(including land force divisions, carrier
and other major combatant vessels,
air wings, and other comparable
units) needed to meet those threats;
and
‘‘(III) the anticipated levels of
funding that will be available for na-
tional defense purposes during such
period.’’;
(2) in paragraph (2)(A), by inserting before the
period at the end the following: ‘‘, based upon an as-
sumption that there are no installations available
outside the United States for the permanent basing
of elements of the Armed Forces’’;
(3) in paragraph (4), by inserting after the first
sentence the following new sentence: ‘‘Any such revi-
sion shall be consistent with this subsection.’’; and
(4) by adding at the end the following new
paragraph:
‘‘(5) BASE
FORCE.—In this subsection, the
term ‘1991 Base Force force structure’ means the
force structure plan for the Armed Forces, known as
the ‘Base Force’, that was adopted by the Secretary
558
for carrying out plant projects, the Secretary of Energy
may carry out, for weapons activities, the following new
plant projects:
Project 04–D–101, test capabilities revitaliza-
tion, Sandia National Laboratories, Albuquerque,
New Mexico, $36,450,000.
Project 04–D–102, exterior communications in-
frastructure modernization, Sandia National Labora-
tories, Albuquerque, New Mexico, $20,000,000.
Project 04–D–103, project engineering and de-
sign, various locations, $2,000,000.
Project 04–D–104, national security sciences
building, Los Alamos National Laboratory, Los Ala-
mos, New Mexico, $38,000,000.
Project 04–D–125, chemistry and metallurgy
facility replacement project, Los Alamos National
Laboratory, Los Alamos, New Mexico, $20,500,000.
Project 04–D–126, Building 12-44 production
cells upgrade, Pantex plant, Amarillo, Texas,
$8,780,000.
Project 04–D–127, cleaning and loading modi-
fications, Savannah River Site, Aiken, South Caro-
lina, $2,750,000.
571
‘‘SEC. 4002. DEFINITION.
‘‘In this division, the term ‘congressional defense
committees’ means—
‘‘(1) the Committee on Armed Services and the
Committee on Appropriations of the Senate; and
‘‘(2) the Committee on Armed Services and the
Committee on Appropriations of the House of Rep-
resentatives.’’.
(d) ORGANIZATIONAL MATTERS.—
(1) TITLE HEADING.—Division D of the Bob
Stump National Defense Authorization Act for Fis-
cal Year 2003, as amended by this section, is fur-
ther amended by adding at the end the following:
‘‘TITLE XLI—ORGANIZATIONAL
MATTERS’’.
(2) NAVAL NUCLEAR PROPULSION PROGRAM.—
Section 1634 of the Department of Defense Author-
ization Act, 1985 (Public Law 98–525; 98 Stat.
2649) is—
(A) transferred to title XLI of division D
of the Bob Stump National Defense Authoriza-
tion Act for Fiscal Year 2003, as added by
paragraph (1);
(B) inserted after the title heading for
such title, as so added; and
(C) amended—
594
‘‘SEC. 4408. PUBLIC PARTICIPATION IN PLANNING FOR EN-
VIRONMENTAL RESTORATION AND WASTE
MANAGEMENT AT DEFENSE NUCLEAR FA-
CILITIES.’’;
and
(ii) by striking ‘‘(e) PUBLIC PARTICI-
PATION IN PLANNING.—’’.
(10) SUBTITLE HEADING ON CLOSURE OF FA-
CILITIES.—Title XLIV of division D of the Bob
Stump National Defense Authorization Act for Fis-
cal Year 2003, as amended by this subsection, is
further amended by adding at the end the following
new subtitle heading:
‘‘Subtitle B—Closure of Facilities’’.
(11) PROJECTS TO ACCELERATE CLOSURE AC-
TIVITIES AT DEFENSE NUCLEAR FACILITIES.—Sec-
tion 3143 of the National Defense Authorization Act
for Fiscal Year 1997 (Public Law 104–201; 110
Stat. 2836) is—
(A) transferred to title XLIV of division D
of the Bob Stump National Defense Authoriza-
tion Act for Fiscal Year 2003, as amended by
this subsection;
(B) redesignated as section 4421;
633
(D) amended in subsection (c) by striking
‘‘this title’’ and inserting ‘‘title XXXI of the
National Defense Authorization Act for Fiscal
Year 1998 (Public Law 105–85)’’.
(10) SUBTITLE HEADING ON FACILITIES MAN-
AGEMENT.—Title XLVIII of division D of the Bob
Stump National Defense Authorization Act for Fis-
cal Year 2003, as amended by this subsection, is
further amended by adding at the end the following
new subtitle heading:
‘‘Subtitle C—Facilities
Management’’.
(11) TRANSFERS OF REAL PROPERTY AT CER-
TAIN FACILITIES.—Section 3158 of the National De-
fense Authorization Act for Fiscal Year 1998 (Pub-
lic Law 105–85; 111 Stat. 2046) is—
(A) transferred to title XLVIII of division
D of the Bob Stump National Defense Author-
ization Act for Fiscal Year 2003, as amended
by this subsection;
(B) redesignated as section 4831; and
(C) inserted after the heading for subtitle
C of such title, as added by paragraph (10).
(12) ENGINEERING AND MANUFACTURING RE-
SEARCH, DEVELOPMENT, AND DEMONSTRATION AT
672
(e) TRANSFER
OF OPERATING AGREEMENTS.—A
contractor under an operating agreement may transfer the
agreement (including all rights and obligations under the
agreement) to any person that is eligible to enter into that
operating agreement under this subtitle, if the transfer is
approved by the Secretary and the Secretary of Defense.
SEC. 3515. PAYMENTS.
(a) ANNUAL PAYMENT.—
(1) IN
GENERAL.—The Secretary, subject to
the availability of appropriations and the other pro-
visions of this section, shall pay to the contractor for
an operating agreement, for each vessel that is cov-
ered by the operating agreement, an amount equal
to—
(A) $2,600,000 for each of fiscal years
2006 and 2007, and
(B) 
such 
amount, 
not 
less 
than
$2,600,000, for each fiscal year thereafter for
which the agreement is in effect as the Sec-
retary, with the concurrence of the Secretary of
Defense, considers to be necessary to meet the
operational requirements of the Secretary of
Defense.
(2) TIMING.—The amount shall be paid in
equal monthly installments at the end of each