sonnel, notwithstanding price limitations applicable to pas-
senger vehicles but not to exceed $232,000 per vehicle;
lease of passenger motor vehicles; and expansion of public
and private plants, Government-owned equipment and in-
stallation thereof in such plants, erection of structures,
and acquisition of land, for the foregoing purposes, and
such lands and interests therein, may be acquired, and
construction prosecuted thereon, prior to approval of title;
reserve plant and Government and contractor-owned
equipment layaway, $10,622,660,000, to remain available
for obligation until September 30, 2005, of which not less
than $167,600,000 shall be available for the Air National
Guard and Air Force Reserve.
PROCUREMENT, DEFENSE-WIDE
For expenses of activities and agencies of the Depart-
ment of Defense (other than the military departments)
necessary for procurement, production, and modification
of equipment, supplies, materials, and spare parts there-
for, not otherwise provided for; the purchase of not to ex-
ceed 99 passenger motor vehicles for replacement only; the
purchase of 4 vehicles required for physical security of
personnel, notwithstanding price limitations applicable to
passenger vehicles but not to exceed $250,000 per vehicle;
expansion of public and private plants, equipment, and in-
stallation thereof in such plants, erection of structures,
and acquisition of land for the foregoing purposes, and
such lands and interests therein, may be acquired, and
construction prosecuted thereon prior to approval of title;
reserve plant and Government and contractor-owned
equipment layaway, $3,457,405,000, to remain available
for obligation until September 30, 2005: Provided, That
funds provided under this heading for Patriot Advanced
Capability-3 (PAC–3) missiles may be used for procure-
ment of critical parts for PAC–3 missiles to support pro-
duction of such missiles in future fiscal years.
DEFENSE PRODUCTION ACT PURCHASES
For activities by the Department of Defense pursuant
to sections 108, 301, 302, and 303 of the Defense Produc-
tion Act of 1950 (50 U.S.C. App. 2078, 2091, 2092, and
2093), $73,057,000 to remain available until expended.
TITLE IV
RESEARCH, DEVELOPMENT, TEST AND
EVALUATION
RESEARCH, DEVELOPMENT, TEST AND EVALUATION,
ARMY
For expenses necessary for basic and applied sci-
entific research, development, test and evaluation, includ-
ing maintenance, rehabilitation, lease, and operation of fa-
cilities and equipment, $7,447,160,000, to remain avail-
able for obligation until September 30, 2004.
RESEARCH, DEVELOPMENT, TEST AND EVALUATION,
NAVY
For expenses necessary for basic and applied sci-
entific research, development, test and evaluation, includ-
ing maintenance, rehabilitation, lease, and operation of fa-
cilities and equipment, $13,562,218,000, to remain avail-
able for obligation until September 30, 2004: Provided,
That funds appropriated in this paragraph which are
available for the V–22 may be used to meet unique oper-
ational requirements of the Special Operations Forces.
RESEARCH, DEVELOPMENT, TEST AND EVALUATION,
AIR FORCE
For expenses necessary for basic and applied sci-
entific research, development, test and evaluation, includ-
ing maintenance, rehabilitation, lease, and operation of fa-
cilities and equipment, $18,639,392,000, to remain avail-
able for obligation until September 30, 2004.
RESEARCH, DEVELOPMENT, TEST AND EVALUATION,
DEFENSE-WIDE
For expenses of activities and agencies of the Depart-
ment of Defense (other than the military departments),
necessary for basic and applied scientific research, devel-
opment, test and evaluation; advanced research projects
as may be designated and determined by the Secretary
of Defense, pursuant to law; maintenance, rehabilitation,
lease, and operation of facilities and equipment,
$17,863,462,000 (reduced by $30,000,000) (increased by
$30,000,000), to remain available for obligation until Sep-
tember 30, 2004.
OPERATIONAL TEST AND EVALUATION, DEFENSE
For expenses, not otherwise provided for, necessary
for the independent activities of the Director, Operational
Test and Evaluation, in the direction and supervision of
operational test and evaluation, including initial oper-
ational test and evaluation which is conducted prior to,
and in support of, production decisions; joint operational
testing and evaluation; and administrative expenses in
connection therewith, $242,054,000, to remain available
for obligation until September 30, 2004.
TITLE V
REVOLVING AND MANAGEMENT FUNDS
DEFENSE WORKING CAPITAL FUNDS
For 
the 
Defense 
Working 
Capital 
Funds,
$1,832,956,000: Provided, That during fiscal year 2003,
funds in the Defense Working Capital Funds may be used
for the purchase of not to exceed 315 passenger carrying
motor vehicles for replacement only for the Defense Secu-
rity Service, and the purchase of not to exceed 7 vehicles
for replacement only for the Defense Logistics Agency.
NATIONAL DEFENSE SEALIFT FUND
For National Defense Sealift Fund programs,
projects, and activities, and for expenses of the National
Defense Reserve Fleet, as established by section 11 of the
Merchant Ship Sales Act of 1946 (50 U.S.C. App. 1744),
and for the necessary expenses to maintain and preserve
a U.S.-flag merchant fleet to serve the national security
needs of the United States, $944,129,000, to remain avail-
able until expended: Provided, That none of the funds pro-
vided in this paragraph shall be used to award a new con-
tract that provides for the acquisition of any of the fol-
lowing major components unless such components are
manufactured in the United States: auxiliary equipment,
including pumps, for all shipboard services; propulsion
system components (that is; engines, reduction gears, and
propellers); shipboard cranes; and spreaders for shipboard
cranes: Provided further, That the exercise of an option
in a contract awarded through the obligation of previously
appropriated funds shall not be considered to be the award
of a new contract: Provided further, That the Secretary
of the military department responsible for such procure-
ment may waive the restrictions in the first proviso on
a case-by-case basis by certifying in writing to the Com-
mittees 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 pur-
poses: Provided further, That, notwithstanding any other
provision of law, $10,000,000 of the funds available under
this heading shall be available in addition to other
amounts otherwise available, only to finance the cost of
constructing additional sealift capacity.
TITLE VI
OTHER DEPARTMENT OF DEFENSE PROGRAMS
DEFENSE HEALTH PROGRAM
For expenses, not otherwise provided for, for medical
and health care programs of the Department of Defense,
as authorized by law, $14,600,748,000, of which
$13,916,791,000 shall be for Operation and maintenance,
of which not to exceed 2 percent shall remain available
until September 30, 2004; of which $283,743,000, to re-
main available for obligation until September 30, 2005,
shall be for Procurement; of which $400,214,000, to re-
main available for obligation until September 30, 2004,
shall be for Research, development, test and evaluation,
and of which not less than $10,000,000 shall be available
for HIV prevention educational activities undertaken in
connection with U.S. military training, exercises, and hu-
manitarian assistance activities conducted primarily in Af-
rican nations.
CHEMICAL AGENTS AND MUNITIONS DESTRUCTION,
ARMY
For expenses, not otherwise provided for, necessary
for the destruction of the United States stockpile of lethal
chemical agents and munitions in accordance with the pro-
visions of section 1412 of the Department of Defense Au-
thorization Act, 1986 (50 U.S.C. 1521), and for the de-
struction of other chemical warfare materials that are not
in the chemical weapon stockpile, $1,490,199,000, of
which $974,238,000 shall be for Operation and mainte-
nance to remain available until September 30, 2004,
$213,278,000 shall be for Procurement to remain avail-
able until September 30, 2005, and $302,683,000 shall
be for Research, development, test and evaluation to re-
main available until September 30, 2004.
DRUG INTERDICTION AND COUNTER-DRUG ACTIVITIES,
DEFENSE
(INCLUDING TRANSFER OF FUNDS)
For drug interdiction and counter-drug activities of
the Department of Defense, for transfer to appropriations
available to the Department of Defense for military per-
sonnel of the reserve components serving under the provi-
sions of title 10 and title 32, United States Code; for Op-
eration and maintenance; for Procurement; and for Re-
search, development, test and evaluation, $859,907,000:
Provided, That the funds appropriated under this heading
shall be available for obligation for the same time period
and for the same purpose as the appropriation to which
transferred: Provided further, That upon a determination
that all or part of the funds transferred from this appro-
priation are not necessary for the purposes provided here-
in, such amounts may be transferred back to this appro-
priation: Provided further, That the transfer authority pro-
vided under this heading is in addition to any other trans-
fer authority contained elsewhere in this Act.
OFFICE OF THE INSPECTOR GENERAL
For expenses and activities of the Office of the In-
spector General in carrying out the provisions of the In-
spector General Act of 1978, as amended, $157,165,000,
of which $155,165,000 shall be for Operation and mainte-
nance, of which not to exceed $700,000 is available for
emergencies and extraordinary expenses to be expended on
the approval or authority of the Inspector General, and
payments may be made on the Inspector General’s certifi-
cate of necessity for confidential military purposes; and
of which $2,000,000 to remain available until September
30, 2005, shall be for Procurement.
TITLE VII
RELATED AGENCIES
CENTRAL INTELLIGENCE AGENCY RETIREMENT AND
DISABILITY SYSTEM FUND
For payment to the Central Intelligence Agency Re-
tirement and Disability System Fund, to maintain the
proper funding level for continuing the operation of the
Central Intelligence Agency Retirement and Disability
System, $212,000,000.
INTELLIGENCE COMMUNITY MANAGEMENT ACCOUNT
(INCLUDING TRANSFER OF FUNDS)
For necessary expenses of the Intelligence Commu-
nity Management Account, $162,254,000, of which
$24,252,000 for the Advanced Research and Development
Committee shall remain available until September 30,
2004: Provided, That of the funds appropriated under this
heading, $34,100,000 shall be transferred to the Depart-
ment of Justice for the National Drug Intelligence Center
to support the Department of Defense’s counter-drug in-
telligence responsibilities, and of the said amount,
$1,500,000 for Procurement shall remain available until
September 30, 2005 and $1,000,000 for Research, devel-
opment, test and evaluation shall remain available until
September 30, 2004: Provided further, That the National
Drug Intelligence Center shall maintain the personnel and
technical resources to provide timely support to law en-
forcement authorities and the intelligence community by
conducting document and computer exploitation of mate-
rials collected in Federal, State, and local law enforcement
activity associated with counter-drug, counter-terrorism,
and national security investigations and operations.
PAYMENT TO KAHO’OLAWE
ISLAND CONVEYANCE, REMEDIATION, AND
ENVIRONMENTAL RESTORATION FUND
For payment to Kaho’olawe Island Conveyance, Re-
mediation, and Environmental Restoration Fund, as au-
thorized by law, $25,000,000, to remain available until ex-
pended.
NATIONAL SECURITY EDUCATION TRUST FUND
For the purposes of title VIII of Public Law 102–
183, $8,000,000, to be derived from the National Security
Education Trust Fund, to remain available until ex-
pended.
TITLE VIII
GENERAL PROVISIONS
SEC. 8001. No part of any appropriation contained
in this Act shall be used for publicity or propaganda pur-
poses not authorized by the Congress.
SEC. 8002. During the current fiscal year, provisions
of law prohibiting the payment of compensation to, or em-
ployment of, any person not a citizen of the United States
shall not apply to personnel of the Department of Defense:
Provided, That salary increases granted to direct and indi-
rect hire foreign national employees of the Department of
Defense funded by this Act shall not be at a rate in excess
of the percentage increase authorized by law for civilian
employees of the Department of Defense whose pay is
computed under the provisions of section 5332 of title 5,
United States Code, or at a rate in excess of the percent-
age increase provided by the appropriate host nation to
its own employees, whichever is higher: Provided further,
That this section shall not apply to Department of De-
fense foreign service national employees serving at United
States diplomatic missions whose pay is set by the Depart-
ment of State under the Foreign Service Act of 1980: Pro-
vided further, That the limitations of this provision shall
not apply to foreign national employees of the Department
of Defense in the Republic of Turkey.
SEC. 8003. No part of any appropriation contained
in this Act shall remain available for obligation beyond
the current fiscal year, unless expressly so provided herein.
SEC. 8004. No more than 20 percent of the appro-
priations in this Act which are limited for obligation dur-
ing the current fiscal year shall be obligated during the
last 2 months of the fiscal year: Provided, That this sec-
tion shall not apply to obligations for support of active
duty training of reserve components or summer camp
training of the Reserve Officers’ Training Corps.
(TRANSFER OF FUNDS)
SEC. 8005. Upon determination by the Secretary of
Defense that such action is necessary in the national inter-
est, he may, with the approval of the Office of Manage-
ment and Budget, transfer not to exceed $2,500,000,000
of working capital funds of the Department of Defense
or funds made available in this Act to the Department
of Defense for military functions (except military con-
struction) between such appropriations or funds or any
subdivision thereof, 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,
That such authority to transfer may not be used unless
for higher priority items, based on unforeseen military re-
quirements, than those for which originally appropriated
and in no case where the item for which funds are re-
quested has been denied by the Congress: Provided further,
That the Secretary of Defense shall notify the Congress
promptly of all transfers made pursuant to this authority
or any other authority in this Act: Provided further, That
no part of the funds in this Act shall be available to pre-
pare or present a request to the Committees on Appropria-
tions for reprogramming of funds, unless for higher pri-
ority items, based on unforeseen military requirements,
than those for which originally appropriated and in no
case where the item for which reprogramming is requested
has been denied by the Congress: Provided further, That
a request for multiple reprogrammings of funds using au-
thority provided in this section must be made prior to May
1, 2003.
(TRANSFER OF FUNDS)
SEC. 8006. During the current fiscal year, cash
balances in working capital funds of the Department of
Defense established pursuant to section 2208 of title 10,
United States Code, may be maintained in only such
amounts as are necessary at any time for cash disburse-
ments to be made from such funds: Provided, That trans-
fers may be made between such funds: Provided further,
That transfers may be made between working capital
funds and the ‘‘Foreign Currency Fluctuations, Defense’’
appropriation and the ‘‘Operation and Maintenance’’ ap-
propriation accounts in such amounts as may be deter-
mined by the Secretary of Defense, with the approval of
the Office of Management and Budget, except that such
transfers may not be made unless the Secretary of Defense
has notified the Congress of the proposed transfer. Except
in amounts equal to the amounts appropriated to working
capital funds in this Act, no obligations may be made
against a working capital fund to procure or increase the
value of war reserve material inventory, unless the Sec-
retary of Defense has notified the Congress prior to any
such obligation.
SEC. 8007. Funds appropriated by this Act may not
be used to initiate a special access program without prior
notification 30 calendar days in session in advance to the
congressional defense committees.
SEC. 8008. None of the funds provided in this Act
shall be available to initiate: (1) a multiyear contract that
employs economic order quantity procurement in excess of
$20,000,000 in any 1 year of the contract or that includes
an unfunded contingent liability in excess of $20,000,000;
or (2) a contract for advance procurement leading to a
multiyear contract that employs economic order quantity
procurement in excess of $20,000,000 in any 1 year, un-
less the congressional defense committees have been noti-
fied at least 30 days in advance of the proposed contract
award: Provided, That no part of any appropriation con-
tained in this Act shall be available to initiate a multiyear
contract for which the economic order quantity advance
procurement is not funded at least to the limits of the
Government’s liability: Provided further, That no part of
any appropriation contained in this Act shall be available
to initiate multiyear procurement contracts for any sys-
tems or component thereof if the value of the multiyear
contract would exceed $500,000,000 unless specifically
provided in this Act: Provided further, That no multiyear
procurement contract can be terminated without 10–day
prior notification to the congressional defense committees:
Provided further, That the execution of multiyear author-
ity shall require the use of a present value analysis to de-
termine lowest cost compared to an annual procurement.
Funds appropriated in title III of this Act may be
used for multiyear procurement contracts as follows:
C–130 aircraft; and
F/A–18E and F engine.
SEC. 8009. Within the funds appropriated for the op-
eration and maintenance of the Armed Forces, funds are
hereby appropriated pursuant to section 401 of title 10,
United States Code, for humanitarian and civic assistance
costs under chapter 20 of title 10, United States Code.
Such funds may also be obligated for humanitarian and
civic assistance costs incidental to authorized operations
and pursuant to authority granted in section 401 of chap-
ter 20 of title 10, United States Code, and these obliga-
tions shall be reported to the Congress as of September
30 of each year: Provided, That funds available for oper-
ation and maintenance shall be available for providing hu-
manitarian and similar assistance by using Civic Action
Teams in the Trust Territories of the Pacific Islands and
freely associated states of Micronesia, pursuant to the
Compact of Free Association as authorized by Public Law
99–239: Provided further, That upon a determination by
the Secretary of the Army that such action is beneficial
for graduate medical education programs conducted at
Army medical facilities located in Hawaii, the Secretary
of the Army may authorize the provision of medical serv-
ices at such facilities and transportation to such facilities,
on a nonreimbursable basis, for civilian patients from
American Samoa, the Commonwealth of the Northern
Mariana Islands, the Marshall Islands, the Federated
States of Micronesia, Palau, and Guam.
SEC. 8010. (a) During fiscal year 2003, the civilian
personnel of the Department of Defense may not be man-
aged on the basis of any end-strength, and the manage-
ment of such personnel during that fiscal year shall not
be subject to any constraint or limitation (known as an
end-strength) on the number of such personnel who may
be employed on the last day of such fiscal year.
(b) The fiscal year 2004 budget request for the De-
partment of Defense as well as all justification material
and other documentation supporting the fiscal year 2004
Department of Defense budget request shall be prepared
and submitted to the Congress as if subsections (a) and
(b) of this provision were effective with regard to fiscal
year 2004.
(c) Nothing in this section shall be construed to apply
to military (civilian) technicians.
SEC. 8011. Notwithstanding any other provision of
law, none of the funds made available by this Act shall
be used by the Department of Defense to exceed, outside
the 50 United States, its territories, and the District of
Columbia, 125,000 civilian workyears: Provided, That
workyears shall be applied as defined in the Federal Per-
sonnel Manual: Provided further, That workyears ex-
pended in dependent student hiring programs for dis-
advantaged youths shall not be included in this workyear
limitation.
SEC. 8012. None of the funds made available by this
Act shall be used in any way, directly or indirectly, to in-
fluence congressional action on any legislation or appro-
priation matters pending before the Congress.
SEC. 8013. None of the funds appropriated by this
Act shall be available for the basic pay and allowances of
any member of the Army participating as a full-time stu-
dent and receiving benefits paid by the Secretary of Vet-
erans Affairs from the Department of Defense Education
Benefits Fund when time spent as a full-time student is
credited toward completion of a service commitment: Pro-
vided, That this subsection shall not apply to those mem-
bers who have reenlisted with this option prior to October
1, 1987: Provided further, That this subsection applies
only to active components of the Army.
SEC. 8014. None of the funds appropriated by this
Act shall be available to convert to contractor performance
an activity or function of the Department of Defense that,
on or after the date of the enactment of this Act, is per-
formed by more than 10 Department of Defense civilian
employees until a most efficient and cost-effective organi-
zation analysis is completed on such activity or function
and certification of the analysis is made to the Committees
on Appropriations of the House of Representatives and the
Senate: Provided, That this section and subsections (a),
(b), and (c) of 10 U.S.C. 2461 shall not apply to a com-
mercial or industrial type function of the Department of
Defense that: (1) is included on the procurement list es-
tablished pursuant to section 2 of the Act of June 25,
1938 (41 U.S.C. 47), popularly referred to as the Javits-
Wagner-O’Day Act; (2) is planned to be converted to per-
formance by a qualified nonprofit agency for the blind or
by a qualified nonprofit agency for other severely handi-
capped individuals in accordance with that Act; or (3) is
planned to be converted to performance by a qualified firm
under 51 percent ownership by an Indian tribe, as defined
in section 450b(e) of title 25, United States Code, or a
Native Hawaiian organization, as defined in section
637(a)(15) of title 15, United States Code.
(TRANSFER OF FUNDS)
SEC. 8015. Funds appropriated in title III of this Act
for the Department of Defense Pilot Mentor-Protege Pro-
gram may be transferred to any other appropriation con-
tained in this Act solely for the purpose of implementing
a Mentor-Protege Program developmental assistance
agreement pursuant to section 831 of the National De-
fense Authorization Act for Fiscal Year 1991 (Public Law
101–510; 10 U.S.C. 2301 note), as amended, under the
authority of this provision or any other transfer authority
contained in this Act.
SEC. 8016. None of the funds in this Act may be
available for the purchase by the Department of Defense
(and its departments and agencies) of welded shipboard
anchor and mooring chain 4 inches in diameter and under
unless the anchor and mooring chain are manufactured
in the United States from components which are substan-
tially manufactured in the United States: Provided, That
for the purpose of this section manufactured will include
cutting, heat treating, quality control, testing of chain and
welding (including the forging and shot blasting process):
Provided further, That for the purpose of this section sub-
stantially all of the components of anchor and mooring
chain shall be considered to be produced or manufactured
in the United States if the aggregate cost of the compo-
nents produced or manufactured in the United States ex-
ceeds the aggregate cost of the components produced or
manufactured outside the United States: Provided further,
That when adequate domestic supplies are not available
to meet Department of Defense requirements on a timely
basis, the Secretary of the service responsible for the pro-
curement may waive this restriction on a case-by-case
basis by certifying in writing to the Committees on Appro-
priations that such an acquisition must be made in order
to acquire capability for national security purposes.
SEC. 8017. None of the funds appropriated by this
Act available for the Civilian Health and Medical Program
of the Uniformed Services (CHAMPUS) or TRICARE
shall be available for the reimbursement of any health care
provider for inpatient mental health service for care re-
ceived when a patient is referred to a provider of inpatient
mental health care or residential treatment care by a med-
ical or health care professional having an economic inter-
est in the facility to which the patient is referred: Pro-
vided, That this limitation does not apply in the case of
inpatient mental health services provided under the pro-
gram for persons with disabilities under subsection (d) of
section 1079 of title 10, United States Code, provided as
partial hospital care, or provided pursuant to a waiver au-
thorized by the Secretary of Defense because of medical
or psychological circumstances of the patient that are con-
firmed by a health professional who is not a Federal em-
ployee after a review, pursuant to rules prescribed by the
Secretary, which takes into account the appropriate level
of care for the patient, the intensity of services required
by the patient, and the availability of that care.
SEC. 8018. Notwithstanding any other provision of
law, during the current fiscal year, the Secretary of De-
fense may, by executive agreement, establish with host na-
tion governments in NATO member states a separate ac-
count into which such residual value amounts negotiated
in the return of United States military installations in
NATO member states may be deposited, in the currency
of the host nation, in lieu of direct monetary transfers to
the United States Treasury: Provided, That such credits
may be utilized only for the construction of facilities to
support United States military forces in that host nation,
or such real property maintenance and base operating
costs that are currently executed through monetary trans-
fers to such host nations: Provided further, That the De-
partment of Defense’s budget submission for fiscal year
2004 shall identify such sums anticipated in residual value
settlements, and identify such construction, real property
maintenance or base operating costs that shall be funded
by the host nation through such credits: Provided further,
That all military construction projects to be executed from
such accounts must be previously approved in a prior Act
of Congress: Provided further, That each such executive
agreement with a NATO member host nation shall be re-
ported to the congressional defense committees, the Com-
mittee on International Relations of the House of Rep-
resentatives and the Committee on Foreign Relations of
the Senate 30 days prior to the conclusion and endorse-
ment of any such agreement established under this provi-
sion.
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 subcontractor at any tier shall be considered a con-
tractor for the purposes of being allowed additional com-
pensation under section 504 of the Indian Financing Act
of 1974 (25 U.S.C. 1544).
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
care occupations as authorized for the Secretary of Vet-
erans Affairs by section 7455 of title 38, United States
Code.
SEC. 8025. (a) Of the funds for the procurement of
supplies or services appropriated by this Act, qualified
nonprofit agencies for the blind or other severely handi-
capped shall be afforded the maximum practicable oppor-
tunity to participate as subcontractors and suppliers in the
performance of contracts let by the Department of De-
fense.
(b) During the current fiscal year, a business concern
which has negotiated with a military service or defense
agency a subcontracting plan for the participation 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
purchases made from qualified nonprofit agencies for the
blind or other severely handicapped.
(c) For the purpose of this section, the phrase ‘‘quali-
fied nonprofit agency for the blind or other severely handi-
capped’’ means a nonprofit agency for the blind or other
severely handicapped that has been approved by the Com-
mittee for the Purchase from the Blind and Other Severely
Handicapped under the Javits-Wagner-O’Day Act (41
U.S.C. 46–48).
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, and from
any funds available to the Department of Defense, the De-
partment is authorized to incur obligations of not to ex-
ceed $350,000,000 for purposes specified in section
2350j(c) of title 10, United States Code, in anticipation
of receipt of contributions, only from the Government of
Kuwait, under that section: Provided, That upon receipt,
such contributions from the Government of Kuwait shall
be credited to the appropriations or fund which incurred
such obligations.
SEC. 8028. Of the funds made available in this Act,
not less than $23,003,000 shall be available for the Civil
Air Patrol Corporation, of which $21,503,000 shall be
available for Civil Air Patrol Corporation operation and
maintenance to support readiness activities which includes
$1,500,000 for the Civil Air Patrol counterdrug program:
Provided, That funds identified for ‘‘Civil Air Patrol’’
under this section are intended for and shall be for the
exclusive use of the Civil Air Patrol Corporation and not
for the Air Force or any unit thereof.
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
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 2003 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.
(d) Notwithstanding any other provision of law, of
the funds available to the department during fiscal year
2003, not more than 6,277 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 1,029 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 2004 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.
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,
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. During the current fiscal year, the De-
partment of Defense may acquire the modification, depot
maintenance and repair of aircraft, vehicles and vessels
as well as the production of components and other De-
fense-related articles, through competition between De-
partment of Defense depot maintenance activities and pri-
vate firms: Provided, That the Senior Acquisition Execu-
tive of the military department or defense agency con-
cerned, with power of delegation, shall certify that success-
ful bids include comparable estimates of all direct and in-
direct costs for both public and private bids: Provided fur-
ther, That Office of Management and Budget Circular A–
76 shall not apply to competitions 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-
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 2002. 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.
(INCLUDING TRANSFER OF FUNDS)
SEC. 8035. Amounts deposited during the current fis-
cal year to the special account established under 40 U.S.C.
485(h)(2) and to the special account established under 10
U.S.C. 2667(d)(1) are appropriated and shall be available
until transferred by the Secretary of Defense to current
applicable appropriations or funds of the Department of
Defense under the terms and conditions specified by 40
U.S.C. 
485(h)(2)(A) 
and 
(B) 
and 
U.S.C.
2667(d)(1)(B), to be merged with and to be available for
the same time period and the same purposes as the appro-
priation 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.
(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
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 $100,000.
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
fiscal year to appropriations made to the Department of
Defense for procurement.
(b) The fiscal year 2004 budget request for the De-
partment of Defense as well as all justification material
and other documentation supporting the fiscal year 2004
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 2004 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, 2004: 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
programs authorized by the President under section 503
of the National Security Act of 1947, as amended, shall
remain available until September 30, 2004.
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. Amounts collected for the use of the fa-
cilities of the National Science Center for Communications
and Electronics during the current fiscal year and here-
after pursuant to section 1459(g) of the Department of
Defense Authorization Act, 1986, and deposited to the
special account established under subsection 1459(g)(2) of
that Act are appropriated and shall be available until ex-
pended for the operation and maintenance of the Center
as provided for in subsection 1459(g)(2).
SEC. 8046. (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
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. 8047. 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—
(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. 8048. (a) Except as provided in subsections (b)
and (c), none of the funds made available by this Act may
be used—
(1) to establish a field operating agency; or
(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. 8049. 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.
(RESCISSIONS)
SEC. 8050. Of the funds provided in Department of
Defense Appropriations Acts, the following funds are here-
by rescinded from the following accounts and programs
in the specified amounts:
‘‘Aircraft Procurement, Army, 2002/2004’’,
$3,000,000;
‘‘Missile 
Procurement, 
Army, 
2002/2004’’,
$28,350,000;
‘‘Procurement of Weapons and Tracked Combat
Vehicles, Army, 2002/2004’’, $9,500,000;
‘‘Procurement of Ammunition, Army, 2002/
2004’’, $25,500,000;
‘‘Procurement, Marine Corps, 2002/2004’’,
$4,682,000;
‘‘Aircraft Procurement, Air Force, 2002/2004’’,
$23,500,000;
‘‘Missile Procurement, Air Force, 2002/2004’’,
$26,900,000;
‘‘Research, Development, Test and Evaluation,
Army, 2002/2003’’, $2,500,000;
‘‘Research, Development, Test and Evaluation,
Navy, 2002/2003’’, $2,000,000; and
‘‘Research, Development, Test and Evaluation,
Air Force, 2002/2003’’, $67,000,000.
SEC. 8051. 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.
SEC. 8052. 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. 8053. 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. 8054. 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
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. 8055. 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. 8056. (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
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.
(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. 8057. 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. 8058. (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
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. 8059. 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. 8060. 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-
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 items.
SEC. 8061. 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. 8062. 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.
SEC. 8063. 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. 8064. 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. 8065. 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-
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. 8066. (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
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. 8067. 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
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. 8068. 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—
(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. 8069. (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. 8070. 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
organizations and activities outside the Department of De-
fense pursuant to section 2012 of title 10, United States
Code.
SEC. 8071. 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-
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. 8072. Funds appropriated in title II of this Act
and for the Defense Health Program in title VI of this
Act for supervision and administration costs for facilities
maintenance and repair, minor construction, or design
projects may be obligated at the time the reimbursable
order is accepted by the performing activity: Provided,
That for the purpose of this section, supervision and ad-
ministration costs includes all in-house Government cost.
SEC. 8073. During the current fiscal year, the Sec-
retary of Defense may waive reimbursement of the cost
of conferences, seminars, courses of instruction, or similar
educational activities of the Asia-Pacific Center for Secu-
rity Studies for military officers and civilian officials of
foreign nations if the Secretary determines that attend-
ance by such personnel, without reimbursement, is in the
national security interest of the United States: Provided,
That costs for which reimbursement is waived pursuant
to this section shall be paid from appropriations available
for the Asia-Pacific Center.
SEC. 8074. (a) Notwithstanding any other provision
of law, the Chief of the National Guard Bureau may per-
mit the use of equipment of the National Guard Distance
Learning Project by any person or entity on a space-avail-
able, reimbursable basis. The Chief of the National Guard
Bureau shall establish the amount of reimbursement for
such use on a case-by-case basis.
(b) Amounts collected under subsection (a) shall be
credited to funds available for the National Guard Dis-
tance Learning Project and be available to defray the costs
associated with the use of equipment of the project under
that subsection. Such funds shall be available for such
purposes without fiscal year limitation.
SEC. 8075. 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.
SEC. 8076. 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. 8077. 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. 8078. (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
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. 8079. Funds made available to the Civil Air Pa-
trol in this Act under the heading ‘‘Drug Interdiction and