IB
Union Calendar No. 122
107TH CONGRESS
1ST SESSION
H. R. 2904
[Report No. 107–207]
Making appropriations for military construction, family housing, and base
realignment and closure for the Department of Defense for the fiscal
year ending September 30, 2002, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
SEPTEMBER 20, 2001
Mr. HOBSON, from the Committee on Appropriations, reported the following
bill; which was committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
A BILL
Making appropriations for military construction, family hous-
ing, and base realignment and closure for the Depart-
ment of Defense for the fiscal year ending September
30, 2002, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
That the following sums are appropriated, out of any
money in the Treasury not otherwise appropriated for
military construction, family housing, and base realign-
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ment and closure functions administered by the Depart-
ment of Defense, for the fiscal year ending September 30,
2002, and for other purposes, namely:
MILITARY CONSTRUCTION, ARMY
(INCLUDING RESCISSION)
For acquisition, construction, installation, and equip-
ment of temporary or permanent public works, military
installations, facilities, and real property for the Army as
currently authorized by law, including personnel in the
Army Corps of Engineers and other personal services nec-
essary for the purposes of this appropriation, and for con-
struction and operation of facilities in support of the func-
tions of the Commander in Chief, $1,739,334,000, to re-
main available until September 30, 2006: Provided, That
of this amount, not to exceed $163,141,000 shall be avail-
able for study, planning, design, architect and engineer
services, and host nation support, as authorized by law,
unless the Secretary of Defense determines that additional
obligations are necessary for such purposes and notifies
the Committees on Appropriations of both Houses of Con-
gress of his determination and the reasons therefor: Pro-
vided further, That of the funds appropriated for ‘‘Military
Construction, 
Army’’ 
under 
Public 
Law 
106–52,
$36,400,000 is hereby rescinded.
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MILITARY CONSTRUCTION, NAVY
(INCLUDING RESCISSION)
For acquisition, construction, installation, and equip-
ment of temporary or permanent public works, naval in-
stallations, facilities, and real property for the Navy as
currently authorized by law, including personnel in the
Naval Facilities Engineering Command and other per-
sonal services necessary for the purposes of this appropria-
tion, $1,154,248,000, to remain available until September
30, 2006: Provided, That of this amount, not to exceed
$30,972,000 shall be available for study, planning, design,
architect and engineer services, as authorized by law, un-
less the Secretary of Defense determines that additional
obligations are necessary for such purposes and notifies
the Committees on Appropriations of both Houses of Con-
gress of his determination and the reasons therefor: Pro-
vided further, That of the funds appropriated for ‘‘Military
Construction, Navy’’ under division A of Public Law 106–
246, $19,588,000 is hereby rescinded.
MILITARY CONSTRUCTION, AIR FORCE
For acquisition, construction, installation, and equip-
ment of temporary or permanent public works, military
installations, facilities, and real property for the Air Force
as currently authorized by law, $1,185,220,000, to remain
available until September 30, 2006: Provided, That of this
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amount, not to exceed $83,000,000 shall be available for
study, planning, design, architect and engineer services,
as authorized by law, unless the Secretary of Defense de-
termines that additional obligations are necessary for such
purposes and notifies the Committees on Appropriations
of both Houses of Congress of his determination and the
reasons therefor.
MILITARY CONSTRUCTION, DEFENSE-WIDE
(INCLUDING TRANSFER AND RESCISSION OF FUNDS)
For acquisition, construction, installation, and equip-
ment of temporary or permanent public works, installa-
tions, facilities, and real property for activities and agen-
cies of the Department of Defense (other than the military
departments), 
as 
currently 
authorized 
by 
law,
$863,058,000, to remain available until September 30,
2006: Provided, That such amounts of this appropriation
as may be determined by the Secretary of Defense may
be transferred to such appropriations of the Department
of Defense available for military construction or family
housing as he may designate, to be merged with and to
be available for the same purposes, and for the same time
period, as the appropriation or fund to which transferred:
Provided further, That of the amount appropriated, not
to exceed $74,496,000 shall be available for study, plan-
ning, design, architect and engineer services, as authorized
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by law, unless the Secretary of Defense determines that
additional obligations are necessary for such purposes and
notifies the Committees on Appropriations of both Houses
of Congress of his determination and the reasons therefor:
Provided further, That of the funds appropriated for ‘‘Mili-
tary Construction, Defense-wide’’ under division B, title
III, chapter 3 of Public Law 106–246, $10,250,000 is
hereby rescinded.
MILITARY CONSTRUCTION, ARMY NATIONAL GUARD
For construction, acquisition, expansion, rehabilita-
tion, and conversion of facilities for the training and ad-
ministration of the Army National Guard, and contribu-
tions therefor, as authorized by chapter 1803 of title 10,
United States Code, and Military Construction Authoriza-
tion Acts, $313,348,000, to remain available until Sep-
tember 30, 2006.
MILITARY CONSTRUCTION, AIR NATIONAL GUARD
For construction, acquisition, expansion, rehabilita-
tion, and conversion of facilities for the training and ad-
ministration of the Air National Guard, and contributions
therefor, as authorized by chapter 1803 of title 10, United
States Code, and Military Construction Authorization
Acts, $198,803,000, to remain available until September
30, 2006.
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MILITARY CONSTRUCTION, ARMY RESERVE
For construction, acquisition, expansion, rehabilita-
tion, and conversion of facilities for the training and ad-
ministration of the Army Reserve as authorized by chapter
1803 of title 10, United States Code, and Military Con-
struction Authorization Acts, $167,769,000, to remain
available until September 30, 2006.
MILITARY CONSTRUCTION, NAVAL RESERVE
(INCLUDING RESCISSION)
For construction, acquisition, expansion, rehabilita-
tion, and conversion of facilities for the training and ad-
ministration of the reserve components of the Navy and
Marine Corps as authorized by chapter 1803 of title 10,
United States Code, and Military Construction Authoriza-
tion Acts, $62,351,000, to remain available until Sep-
tember 30, 2006: Provided further, That of the funds ap-
propriated for ‘‘Military Construction, Naval Reserve’’
under division A of Public Law 106–246, $925,000 is
hereby rescinded.
MILITARY CONSTRUCTION, AIR FORCE RESERVE
For construction, acquisition, expansion, rehabilita-
tion, and conversion of facilities for the training and ad-
ministration of the Air Force Reserve as authorized by
chapter 1803 of title 10, United States Code, and Military
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Construction Authorization Acts, $81,882,000, to remain
available until September 30, 2006.
NORTH ATLANTIC TREATY ORGANIZATION
SECURITY INVESTMENT PROGRAM
For the United States share of the cost of the North
Atlantic Treaty Organization Security Investment Pro-
gram for the acquisition and construction of military fa-
cilities and installations (including international military
headquarters) and for related expenses for the collective
defense of the North Atlantic Treaty Area as authorized
in Military Construction Authorization Acts and section
2806 of title 10, United States Code, $162,600,000, to
remain available until expended.
FAMILY HOUSING CONSTRUCTION, ARMY
For expenses of family housing for the Army for con-
struction, including acquisition, replacement, addition, ex-
pansion, extension and alteration, as authorized by law,
$294,042,000, to remain available until September 30,
2006.
FAMILY HOUSING OPERATION AND MAINTENANCE,
ARMY
For expenses of family housing for the Army for op-
eration and maintenance, including debt payment, leasing,
minor construction, principal and interest charges, and in-
surance premiums, as authorized by law, $1,096,431,000.
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FAMILY HOUSING CONSTRUCTION, NAVY AND MARINE
CORPS
For expenses of family housing for the Navy and Ma-
rine Corps for construction, including acquisition, replace-
ment, addition, expansion, extension and alteration, as au-
thorized by law, $334,780,000, to remain available until
September 30, 2006.
FAMILY HOUSING OPERATION AND MAINTENANCE,
NAVY AND MARINE CORPS
For expenses of family housing for the Navy and Ma-
rine Corps for operation and maintenance, including debt
payment, leasing, minor construction, principal and inter-
est charges, and insurance premiums, as authorized by
law, $910,095,000.
FAMILY HOUSING CONSTRUCTION, AIR FORCE
For expenses of family housing for the Air Force for
construction, including acquisition, replacement, addition,
expansion, extension and alteration, as authorized by law,
$536,237,000, to remain available until September 30,
2006.
FAMILY HOUSING OPERATION AND MAINTENANCE, AIR
FORCE
For expenses of family housing for the Air Force for
operation and maintenance, including debt payment, leas-
ing, minor construction, principal and interest charges,
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and 
insurance 
premiums, 
as 
authorized 
by 
law,
$858,121,000.
FAMILY HOUSING, DEFENSE-WIDE
For expenses of family housing for the activities and
agencies of the Department of Defense (other than the
military departments) for construction, including acquisi-
tion, replacement, addition, expansion, extension and al-
teration, and for operation and maintenance, leasing, and
minor construction, as authorized by law, as follows: for
construction, $250,000 to remain available until Sep-
tember 30, 2006; for Operation and Maintenance,
$43,762,000; in all $44,012,000.
DEPARTMENT OF DEFENSE FAMILY HOUSING
IMPROVEMENT FUND
For the Department of Defense Family Housing Im-
provement Fund, $2,000,000, to remain available until ex-
pended, for family housing initiatives undertaken pursu-
ant to section 2883 of title 10, United States Code, pro-
viding alternative means of acquiring and improving mili-
tary family housing, and supporting facilities.
HOMEOWNERS ASSISTANCE FUND, DEFENSE
For the Homeowners Assistance Fund established by
Section 1013 of the Demonstration Cities and Metropoli-
tan Development Act of 1966, as amended (42 U.S.C.
3374) $10,119,000, to remain available until expended.
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BASE REALIGNMENT AND CLOSURE ACCOUNT
For deposit into the Department of Defense Base
Closure Account 1990 established by section 2906(a)(1)
of the Department of Defense Authorization Act, 1991
(Public Law 101–510), $552,713,000, to remain available
until 
expended: 
Provided, 
That 
not 
more 
than
$511,670,000 of the funds appropriated herein shall be
available solely for environmental restoration, unless the
Secretary of Defense determines that additional obliga-
tions are necessary for such purposes and notifies the
Committees on Appropriations of both Houses of Congress
of his determination and the reasons therefor.
GENERAL PROVISIONS
SEC. 101. None of the funds appropriated in Military
Construction Appropriations Acts shall be expended for
payments under a cost-plus-a-fixed-fee contract for con-
struction, where cost estimates exceed $25,000, to be per-
formed within the United States, except Alaska, without
the specific approval in writing of the Secretary of Defense
setting forth the reasons therefor.
SEC. 102. Funds appropriated to the Department of
Defense for construction shall be available for hire of pas-
senger motor vehicles.
SEC. 103. Funds appropriated to the Department of
Defense for construction may be used for advances to the
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Federal Highway Administration, Department of Trans-
portation, for the construction of access roads as author-
ized by section 210 of title 23, United States Code, when
projects authorized therein are certified as important to
the national defense by the Secretary of Defense.
SEC. 104. None of the funds appropriated in this Act
may be used to begin construction of new bases inside the
continental United States for which specific appropria-
tions have not been made.
SEC. 105. No part of the funds provided in Military
Construction Appropriations Acts shall be used for pur-
chase of land or land easements in excess of 100 percent
of the value as determined by the Army Corps of Engi-
neers or the Naval Facilities Engineering Command, ex-
cept: (1) where there is a determination of value by a Fed-
eral court; (2) purchases negotiated by the Attorney Gen-
eral or his designee; (3) where the estimated value is less
than $25,000; or (4) as otherwise determined by the Sec-
retary of Defense to be in the public interest.
SEC. 106. None of the funds appropriated in Military
Construction Appropriations Acts shall be used to: (1) ac-
quire land; (2) provide for site preparation; or (3) install
utilities for any family housing, except housing for which
funds have been made available in annual Military Con-
struction Appropriations Acts.
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SEC. 107. None of the funds appropriated in Military
Construction Appropriations Acts for minor construction
may be used to transfer or relocate any activity from one
base or installation to another, without prior notification
to the Committees on Appropriations.
SEC. 108. No part of the funds appropriated in Mili-
tary Construction Appropriations Acts may be used for
the procurement of steel for any construction project or
activity for which American steel producers, fabricators,
and manufacturers have been denied the opportunity to
compete for such steel procurement.
SEC. 109. None of the funds available to the Depart-
ment of Defense for military construction or family hous-
ing during the current fiscal year may be used to pay real
property taxes in any foreign nation.
SEC. 110. None of the funds appropriated in Military
Construction Appropriations Acts may be used to initiate
a new installation overseas without prior notification to
the Committees on Appropriations.
SEC. 111. None of the funds appropriated in Military
Construction Appropriations Acts may be obligated for ar-
chitect and engineer contracts estimated by the Govern-
ment to exceed $500,000 for projects to be accomplished
in Japan, in any NATO member country, or in countries
bordering the Arabian Gulf, unless such contracts are
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awarded to United States firms or United States firms
in joint venture with host nation firms.
SEC. 112. None of the funds appropriated in Military
Construction Appropriations Acts for military construc-
tion in the United States territories and possessions in the
Pacific and on Kwajalein Atoll, or in countries bordering
the Arabian Gulf, may be used to award any contract esti-
mated by the Government to exceed $1,000,000 to a for-
eign contractor: Provided, That this section shall not be
applicable to contract awards for which the lowest respon-
sive and responsible bid of a United States contractor ex-
ceeds the lowest responsive and responsible bid of a for-
eign contractor by greater than 20 percent: Provided fur-
ther, That this section shall not apply to contract awards
for military construction on Kwajalein Atoll for which the
lowest responsive and responsible bid is submitted by a
Marshallese contractor.
SEC. 113. The Secretary of Defense is to inform the
appropriate committees of Congress, including the Com-
mittees on Appropriations, of the plans and scope of any
proposed military exercise involving United States per-
sonnel 30 days prior to its occurring, if amounts expended
for construction, either temporary or permanent, are an-
ticipated to exceed $100,000.
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obligated from funds available for military construction
projects; and (2) do not exceed the amount appropriated
for such project, plus any amount by which the cost of
such project is increased pursuant to law.
(TRANSFER OF FUNDS)
SEC. 118. During the 5-year period after appropria-
tions available to the Department of Defense for military
construction and family housing operation and mainte-
nance and construction have expired for obligation, upon
a determination that such appropriations will not be nec-
essary for the liquidation of obligations or for making au-
thorized adjustments to such appropriations for obliga-
tions incurred during the period of availability of such ap-
propriations, unobligated balances of such appropriations
may be transferred into the appropriation ‘‘Foreign Cur-
rency Fluctuations, Construction, Defense’’ to be merged
with and to be available for the same time period and for
the same purposes as the appropriation to which trans-
ferred.
SEC. 119. The Secretary of Defense is to provide the
Committees on Appropriations of the Senate and the
House of Representatives with an annual report by Feb-
ruary 15, containing details of the specific actions pro-
posed to be taken by the Department of Defense during
the current fiscal year to encourage other member nations
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of the North Atlantic Treaty Organization, Japan, Korea,
and United States allies bordering the Arabian Gulf to as-
sume a greater share of the common defense burden of
such nations and the United States.
(TRANSFER OF FUNDS)
SEC. 120. During the current fiscal year, in addition
to any other transfer authority available to the Depart-
ment of Defense, proceeds deposited to the Department
of Defense Base Closure Account established by section
207(a)(1) of the Defense Authorization Amendments and
Base Closure and Realignment Act (Public Law 100–526)
pursuant to section 207(a)(2)(C) of such Act, may be
transferred to the account established by section
2906(a)(1) of the Department of Defense Authorization
Act, 1991, to be merged with, and to be available for the
same purposes and the same time period as that account.
SEC. 121. (a) No funds appropriated pursuant to this
Act may be expended by an entity unless the entity agrees
that in expending the assistance the entity will comply
with sections 2 through 4 of the Act of March 3, 1933
(41 U.S.C. 10a–10c, popularly known as the ‘‘Buy Amer-
ican Act’’).
(b) No funds made available under this Act shall be
made available to any person or entity who has been con-
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victed of violating the Act of March 3, 1933 (41 U.S.C.
10a–10c, popularly known as the ‘‘Buy American Act’’).
SEC. 122. (a) In the case of any equipment or prod-
ucts that may be authorized to be purchased with financial
assistance provided under this Act, it is the sense of the
Congress that entities receiving such assistance should, in
expending the assistance, purchase only American-made
equipment and products.
(b) In providing financial assistance under this Act,
the Secretary of the Treasury shall provide to each recipi-
ent of the assistance a notice describing the statement
made in subsection (a) by the Congress.
(TRANSFER OF FUNDS)
SEC. 123. Subject to 30 days prior notification to the
Committees on Appropriations, such additional amounts
as may be determined by the Secretary of Defense may
be transferred to the Department of Defense Family
Housing Improvement Fund from amounts appropriated
for construction in ‘‘Family Housing’’ accounts, to be
merged with and to be available for the same purposes
and for the same period of time as amounts appropriated
directly to the Fund: Provided, That appropriations made
available to the Fund shall be available to cover the costs,
as defined in section 502(5) of the Congressional Budget
Act of 1974, of direct loans or loan guarantees issued by
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the Department of Defense pursuant to the provisions of
subchapter IV of chapter 169, title 10, United States
Code, pertaining to alternative means of acquiring and im-
proving military family housing and supporting facilities.
SEC. 124. None of the funds appropriated or made
available by this Act may be obligated for Partnership for
Peace Programs in the New Independent States of the
former Soviet Union.
SEC. 125. (a) Not later than 60 days before issuing
any solicitation for a contract with the private sector for
military family housing the Secretary of the military de-
partment concerned shall submit to the congressional de-
fense committees the notice described in subsection (b).
(b)(1) A notice referred to in subsection (a) is a no-
tice of any guarantee (including the making of mortgage
or rental payments) proposed to be made by the Secretary
to the private party under the contract involved in the
event of—
(A) the closure or realignment of the installa-
tion for which housing is provided under the con-
tract;
(B) a reduction in force of units stationed at
such installation; or
(C) the extended deployment overseas of units
stationed at such installation.
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(2) Each notice under this subsection shall specify
the nature of the guarantee involved and assess the extent
and likelihood, if any, of the liability of the Federal Gov-
ernment with respect to the guarantee.
(c) In this section, the term ‘‘congressional defense
committees’’ means the following:
(1) The Committee on Armed Services and the
Military Construction Subcommittee, Committee on
Appropriations of the Senate.
(2) The Committee on Armed Services and the
Military Construction Subcommittee, Committee on
Appropriations of the House of Representatives.
(TRANSFER OF FUNDS)
SEC. 126. During the current fiscal year, in addition
to any other transfer authority available to the Depart-
ment of Defense, amounts may be transferred from the
account established by section 2906(a)(1) of the Depart-
ment of Defense Authorization Act, 1991, to the fund es-
tablished by section 1013(d) of the Demonstration Cities
and Metropolitan Development Act of 1966 (42 U.S.C.
3374) to pay for expenses associated with the Home-
owners Assistance Program. Any amounts transferred
shall be merged with and be available for the same pur-
poses and for the same time period as the fund to which
transferred.
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SEC. 127. Notwithstanding this or any other provi-
sion of law, funds appropriated in Military Construction
Appropriations Acts for operations and maintenance of
family housing shall be the exclusive source of funds for
repair and maintenance of all family housing units, includ-
ing flag and general officer quarters: Provided, That not
more than $25,000 per unit may be spent annually for
the maintenance and repair of any general or flag officer
quarters without 30 days advance prior notification of the
appropriate committees of Congress: Provided further,
That the Under Secretary of Defense (Comptroller) is to
report annually to the Committees on Appropriations all
operations and maintenance expenditures, and all uses of
funds pursuant to 10 U.S.C. 2601, for each individual flag
and general officer quarters for the prior fiscal year: Pro-
vided further, That nothing herein precludes the Secretary
concerned from using funds pursuant to 10 U.S.C. 2601
or similar authority.
SEC. 128. The Army, Navy, Marine Corps, and Air
Force are directed to submit to the appropriate commit-
tees of the Congress by July 1, 2002, a Family Housing
Master Plan demonstrating how they plan to meet the
year 2010 housing goals with traditional construction, op-
eration and maintenance support, as well as privatization
initiative proposals. Each plan shall include projected life