H. R. 2528—6
these funds may not be obligated or expended until the Secretary 
of Defense submits to the congressional defense committees and 
receives approval of a report describing the specific programs, 
projects, and activities for which such funds are to be obligated. 
ADMINISTRATIVE PROVISIONS 
SEC. 101. None of the funds made available in this title shall 
be expended for payments under a cost-plus-a-fixed-fee contract 
for construction, 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 made available in this title for construction 
shall be available for hire of passenger motor vehicles. 
SEC. 103. Funds made available in this title for construction 
may be used for advances to the Federal Highway Administration, 
Department of Transportation, for the construction of access roads 
as authorized 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 made available in this title may 
be used to begin construction of new bases in the United States 
for which specific appropriations have not been made. 
SEC. 105. None of the funds made available in this title shall 
be used for purchase of land or land easements in excess of 100 
percent of the value as determined by the Army Corps of Engineers 
or the Naval Facilities Engineering Command, except: (1) where 
there is a determination of value by a Federal court; (2) purchases 
negotiated by the Attorney General or the designee of the Attorney 
General; (3) where the estimated value is less than $25,000; or 
(4) as otherwise determined by the Secretary of Defense to be 
in the public interest. 
SEC. 106. None of the funds made available in this title shall 
be used to: (1) acquire 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 Acts making appropria-
tions for military construction. 
SEC. 107. None of the funds made available in this title 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 of both Houses of Congress. 
SEC. 108. None of the funds made available in this title 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 Department of 
Defense for military construction or family housing during the 
current fiscal year may be used to pay real property taxes in 
any foreign nation. 
SEC. 110. None of the funds made available in this title may 
be used to initiate a new installation overseas without prior notifica-
tion to the Committees on Appropriations of both Houses of Con-
gress. 
SEC. 111. None of the funds made available in this title may 
be obligated for architect and engineer contracts estimated by the
H. R. 2528—7
Government to exceed $500,000 for projects to be accomplished 
in Japan, in any North Atlantic Treaty Organization member 
country, or in countries bordering the Arabian Sea, unless such 
contracts are awarded to United States firms or United States 
firms in joint venture with host nation firms. 
SEC. 112. None of the funds made available in this title for 
military construction in the United States territories and posses-
sions in the Pacific and on Kwajalein Atoll, or in countries bordering 
the Arabian Sea, may be used to award any contract estimated 
by the Government to exceed $1,000,000 to a foreign contractor: 
Provided, That this section shall not be applicable to contract 
awards for which the lowest responsive and responsible bid of 
a United States contractor exceeds the lowest responsive and 
responsible bid of a foreign contractor by greater than 20 percent: 
Provided further, 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 both Houses of Congress, including the Committees 
on Appropriations, of the plans and scope of any proposed military 
exercise involving United States personnel 30 days prior to its 
occurring, if amounts expended for construction, either temporary 
or permanent, are anticipated to exceed $100,000. 
SEC. 114. Not more than 20 percent of the funds made available 
in this title which are limited for obligation during the current 
fiscal year shall be obligated during the last two months of the 
fiscal year. 
(TRANSFER OF FUNDS) 
SEC. 115. Funds appropriated to the Department of Defense 
for construction in prior years shall be available for construction 
authorized for each such military department by the authorizations 
enacted into law during the current session of Congress. 
SEC. 116. For military construction or family housing projects 
that are being completed with funds otherwise expired or lapsed 
for obligation, expired or lapsed funds may be used to pay the 
cost of associated supervision, inspection, overhead, engineering 
and design on those projects and on subsequent claims, if any. 
SEC. 117. Notwithstanding any other provision of law, any 
funds made available to a military department or defense agency 
for the construction of military projects may be obligated for a 
military construction project or contract, or for any portion of such 
a project or contract, at any time before the end of the fourth 
fiscal year after the fiscal year for which funds for such project 
were made available, if the funds obligated for such project: (1) 
are obligated from funds available for military construction projects; 
and (2) do not exceed the amount appropriated for such project, 
plus any amount by which the cost of such project is increased 
pursuant to law. 
SEC. 118. The Secretary of Defense is to provide the Committees 
on Appropriations of both Houses of Congress with an annual 
report by February 15, containing details of the specific actions 
proposed to be taken by the Department of Defense during the 
current fiscal year to encourage other member nations of the North 
Atlantic Treaty Organization, Japan, Korea, and United States
H. R. 2528—8
allies bordering the Arabian Sea to assume a greater share of 
the common defense burden of such nations and the United States. 
(TRANSFER OF FUNDS) 
SEC. 119. In addition to any other transfer authority available 
to the Department 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 (10 U.S.C. 2687 note) pursuant to section 
207(a)(2)(C) of such Act, may be transferred to the account estab-
lished by section 2906(a)(1) of the Defense Base Closure and 
Realignment Act of 1990 (10 U.S.C. 2687 note), to be merged 
with, and to be available for the same purposes and the same 
time period as that account. 
(TRANSFER OF FUNDS) 
SEC. 120. Subject to 30 days prior notification to the Commit-
tees on Appropriations of both Houses of Congress, such additional 
amounts as may be determined by the Secretary of Defense may 
be transferred to: (1) 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; or (2) the Department of Defense 
Military Unaccompanied Housing Improvement Fund from amounts 
appropriated for construction of military unaccompanied housing 
in ‘‘Military Construction’’ 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 Funds shall be available to 
cover the costs, as defined in section 502(5) of the Congressional 
Budget Act of 1974, of direct loans or loan guarantees issued by 
the Department of Defense pursuant to the provisions of subchapter 
IV of chapter 169 of title 10, United States Code, pertaining to 
alternative means of acquiring and improving military family 
housing, military unaccompanied housing, and supporting facilities. 
SEC. 121. None of the funds made available in this title may 
be obligated for Partnership for Peace Programs in the New Inde-
pendent States of the former Soviet Union. 
SEC. 122. (a) Not later than 60 days before issuing any solicita-
tion for a contract with the private sector for military family housing 
the Secretary of the military department concerned shall submit 
to the Committees on Appropriations of both Houses of Congress 
the notice described in subsection (b). 
(b)(1) A notice referred to in subsection (a) is a notice 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 installation for which 
housing is provided under the contract; 
(B) a reduction in force of units stationed at such installa-
tion; or 
(C) the extended deployment overseas of units stationed 
at such installation. 
(2) Each notice under this subsection shall specify the nature 
of the guarantee involved and assess the extent and likelihood,
H. R. 2528—9
if any, of the liability of the Federal Government with respect 
to the guarantee. 
(TRANSFER OF FUNDS) 
SEC. 123. In addition to any other transfer authority available 
to the Department of Defense, amounts may be transferred from 
the account established by section 2906(a)(1) of the Defense Base 
Closure and Realignment Act of 1990 (10 U.S.C. 2687 note), to 
the fund established 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 Homeowners Assistance Pro-
gram. Any amounts transferred shall be merged with and be avail-
able for the same purposes and for the same time period as the 
fund to which transferred. 
SEC. 124. Notwithstanding this or any other provision of law, 
funds made available in this title for operation and maintenance 
of family housing shall be the exclusive source of funds for repair 
and maintenance of all family housing units, including general 
or flag officer quarters: Provided, That not more than $35,000 
per unit may be spent annually for the maintenance and repair 
of any general or flag officer quarters without 30 days prior notifica-
tion to the Committees on Appropriations of both Houses of Con-
gress, except that an after-the-fact notification shall be submitted 
if the limitation is exceeded solely due to costs associated with 
environmental remediation that could not be reasonably anticipated 
at the time of the budget submission: Provided further, That the 
Under Secretary of Defense (Comptroller) is to report annually 
to the Committees on Appropriations of both Houses of Congress 
all operation and maintenance expenditures for each individual 
general or flag officer quarters for the prior fiscal year. 
SEC. 125. None of the funds made available in this title under 
the heading ‘‘North Atlantic Treaty Organization Security Invest-
ment Program’’, and no funds appropriated for any fiscal year 
before fiscal year 2006 for that program that remain available 
for obligation, may be obligated or expended for the conduct of 
studies of missile defense. 
SEC. 126. Whenever the Secretary of Defense or any other 
official of the Department of Defense is requested by the sub-
committee on Military Quality of Life and Veterans Affairs, and 
Related Agencies of the Committee on Appropriations of the House 
of Representatives or the subcommittee on Military Construction 
and Veterans Affairs, and Related Agencies of the Committee on 
Appropriations of the Senate to respond to a question or inquiry 
submitted by the chairman or another member of that subcommittee 
pursuant to a subcommittee hearing or other activity, the Secretary 
(or other official) shall respond to the request, in writing, within 
21 days of the date on which the request is transmitted to the 
Secretary (or other official). 
SEC. 127. Amounts contained in the Ford Island Improvement 
Account established by subsection (h) of section 2814 of title 10, 
United States Code, are appropriated and shall be available until 
expended for the purposes specified in subsection (i)(1) of such 
section or until transferred pursuant to subsection (i)(3) of such 
section.