HR 3338 RFS
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. 8069. 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. 8070. (a) LIMITATION ON TRANSFER OF DE-
FENSE ARTICLES AND SERVICES.—Notwithstanding any
other provision of law, none of the funds available to the
HR 3338 RFS
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—
HR 3338 RFS
(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.
(d) NATIONAL EMERGENCY
OF SEPTEMBER 11,
2001.—The 15-day prior notification period cited in sub-
section (a) shall not apply to any covered activity, oper-
ation or operations initiated as a result of the national
emergency proclaimed by the President as a result of the
terrorist attacks of September 11, 2001. For fiscal year
2002, the Department of Defense shall provide quarterly
reports, in both unclassified and classified form, to the
congressional defense committees, the Committee on
International Relations of the House of Representatives
and the Committee on Foreign Relations of the Senate,
of any transfers during the preceding quarter resulting
from any covered activities, operation or operations ex-
empted from the 15-day prior notification period by this
subsection.
HR 3338 RFS
SEC. 8071. 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 may be financed as part of a loan
guaranteed by the United States, provided that the expo-
sure fee with respect to such loan guarantee be fixed in
an amount that is sufficient to meet the potential liabil-
ities of the United States under the loan guarantee: Pro-
vided further, That the Secretary shall provide quarterly
reports to the Committees on Appropriations, Armed Serv-
ices, and Foreign Relations of the Senate and the Commit-
tees on Appropriations, Armed Services, and International
Relations in the House of Representatives on the imple-
mentation 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 admin-
istrative expenses of the Department of Defense that are
HR 3338 RFS
attributable to the loan guarantee program under sub-
chapter VI of chapter 148 of title 10, United States Code.
SEC. 8072. 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. 8073. (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.
HR 3338 RFS
SEC. 8074. None of the funds provided in title IX
of this Act for ‘‘Former Soviet Union Threat Reduction’’
may be obligated or expended to finance housing for any
individual who was a member of the military forces of the
Soviet Union or for any individual who is or was a member
of the military forces of the Russian Federation.
(INCLUDING TRANSFER OF FUNDS)
SEC. 8075. 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. 8076. For purposes of section 1553(b) of title
31, United States Code, any subdivision of appropriations
made in this Act under the heading ‘‘Shipbuilding and
Conversion, Navy’’ shall be considered to be for the same
purpose as any subdivision under the heading ‘‘Ship-
building and Conversion, Navy’’ appropriations in any
HR 3338 RFS
prior year, and the 1 percent limitation shall apply to the
total amount of the appropriation.
SEC. 8077. 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-
HR 3338 RFS
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. 8078. 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. 8079. 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,
HR 3338 RFS
That costs for which reimbursement is waived pursuant
to this section shall be paid from appropriations available
for the Asia-Pacific Center.
SEC. 8080. (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. 8081. 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-
HR 3338 RFS
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. 8082. Notwithstanding 31 U.S.C. 3902, during
the current fiscal year, interest penalties may be paid by
the Department of Defense from funds financing the oper-
ation of the military department or defense agency with
which the invoice or contract payment is associated.
SEC. 8083. 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.
HR 3338 RFS
SEC. 8084. The amount appropriated in this Act for
‘‘Operation and Maintenance, Navy’’, is hereby reduced by
$245,000,000 to reflect a Navy Working Capital Fund
cash balance and rate stabilization adjustment.
SEC. 8085. Notwithstanding any other provision in
this Act, the total amount appropriated in this Act is here-
by reduced by $527,000,000, to reflect working capital
fund fuel price re-estimates and rate stabilization adjust-
ments, to be derived as follows:
‘‘Operation 
and 
Maintenance, 
Army’’,
$35,000,000;
‘‘Operation 
and 
Maintenance, 
Navy’’,
$230,000,000;
‘‘Operation and Maintenance, Marine Corps’’,
$6,000,000;
‘‘Operation and Maintenance, Air Force’’,
$247,000,000; and
‘‘Operation and Maintenance, Defense-Wide’’,
$9,000,000.
SEC. 8086. 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. 8087. (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
HR 3338 RFS
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
HR 3338 RFS
through 7229, 7304.41 through 7304.49, 7306.40, 7502
through 7508, 8105, 8108, 8109, 8211, 8215, and 9404.
SEC. 8088. Funds made available to the Civil Air Pa-
trol in this Act under the heading ‘‘Drug Interdiction and
Counter-Drug Activities, Defense’’ may be used for the
Civil Air Patrol Corporation’s counterdrug program, in-
cluding its demand reduction program involving youth
programs, as well as operational and training drug recon-
naissance missions for Federal, State, and local govern-
ment agencies; for administrative costs, including the hir-
ing of Civil Air Patrol Corporation employees; for travel
and per diem expenses of Civil Air Patrol Corporation per-
sonnel in support of those missions; and for equipment
needed for mission support or performance: Provided,
That the Department of the Air Force should waive reim-
bursement from the Federal, State, and local government
agencies for the use of these funds.
SEC. 8089. Notwithstanding any other provision of
law, the TRICARE managed care support contracts in ef-
fect, or in final stages of acquisition as of September 30,
2000, may be extended for 2 years: Provided, That any
such extension may only take place if the Secretary of De-
fense determines that it is in the best interest of the Gov-
ernment: Provided further, That any contract extension
shall be based on the price in the final best and final offer
HR 3338 RFS
for the last year of the existing contract as adjusted for
inflation and other factors mutually agreed to by the con-
tractor and the Government: Provided further, That not-
withstanding any other provision of law, all future
TRICARE managed care support contracts replacing con-
tracts in effect, or in the final stages of acquisition as of
September 30, 2001, may include a base contract period
for transition and up to seven 1-year option periods.
SEC. 8090. None of the funds in this Act may be
used to compensate an employee of the Department of De-
fense who initiates a new start program without notifica-
tion to the Office of the Secretary of Defense, the Office
of Management and Budget, and the congressional de-
fense committees, as required by Department of Defense
financial management regulations.
SEC. 8091. (a) PROHIBITION.—None of the funds
made available by this Act may be used to support any
training program involving a unit of the security forces
of a foreign country if the Secretary of Defense has re-
ceived credible information from the Department of State
that the unit has committed a gross violation of human
rights, unless all necessary corrective steps have been
taken.
(b) MONITORING.—The Secretary of Defense, in con-
sultation with the Secretary of State, shall ensure that
HR 3338 RFS
prior to a decision to conduct any training program re-
ferred to in subsection (a), full consideration is given to
all credible information available to the Department of
State relating to human rights violations by foreign secu-
rity forces.
(c) WAIVER.—The Secretary of Defense, after con-
sultation with the Secretary of State, may waive the prohi-
bition in subsection (a) if he determines that such waiver
is required by extraordinary circumstances.
(d) REPORT.—Not more than 15 days after the exer-
cise of any waiver under subsection (c), the Secretary of
Defense shall submit a report to the congressional defense
committees describing the extraordinary circumstances,
the purpose and duration of the training program, the
United States forces and the foreign security forces in-
volved in the training program, and the information relat-
ing to human rights violations that necessitates the waiv-
er.
SEC. 8092. The Secretary of Defense, in coordination
with the Secretary of Health and Human Services, may
carry out a program to distribute surplus dental equip-
ment of the Department of Defense, at no cost to the De-
partment of Defense, to Indian health service facilities and
to federally-qualified health centers (within the meaning
HR 3338 RFS
of section 1905(l)(2)(B) of the Social Security Act (42
U.S.C. 1396d(l)(2)(B))).
SEC. 8093. The total amount appropriated in this Act
is hereby reduced by $200,000,000 to reflect savings from
favorable foreign currency fluctuations, to be derived as
follows:
‘‘Military Personnel, Army’’, $30,800,000;
‘‘Military Personnel, Navy’’, $600,000;
‘‘Military 
Personnel, 
Marine 
Corps’’,
$7,800,000;
‘‘Military Personnel, Air Force’’, $15,400,000;
‘‘Reserve Personnel, Air Force’’, $8,400,000;
‘‘National 
Guard 
Personnel, 
Army’’,
$2,200,000;
‘‘Operation 
and 
Maintenance, 
Army’’,
$68,600,000;
‘‘Operation 
and 
Maintenance, 
Navy’’,
$14,400,000;
‘‘Operation and Maintenance, Marine Corps’’,
$1,000,000;
‘‘Operation and Maintenance, Air Force’’,
$26,400,000;
‘‘Operation and Maintenance, Defense-Wide’’,
$23,000,000; and
HR 3338 RFS
‘‘Operation and Maintenance, Air Force Re-
serve’’, $1,400,000.
SEC. 8094. None of the funds appropriated or made
available in this Act to the Department of the Navy shall
be used to develop, lease or procure the T–AKE class of
ships unless the main propulsion diesel engines and
propulsors are manufactured in the United States by a
domestically operated entity: Provided, That the Secretary
of Defense may waive this restriction on a case-by-case
basis by certifying in writing to the Committees on Appro-
priations of the House of Representatives and the Senate
that adequate domestic supplies are not available to meet
Department of Defense requirements on a timely basis
and that such an acquisition must be made in order to
acquire capability for national security purposes or there
exists a significant cost or quality difference.
SEC. 8095. The budget of the President for fiscal
year 2003 submitted to the Congress pursuant to section
1105 of title 31, United States Code, and each annual
budget request thereafter, shall include separate budget
justification documents for costs of United States Armed
Forces’ participation in contingency operations for the
Military Personnel accounts, the Overseas Contingency
Operations Transfer Fund, the Operation and Mainte-
nance accounts, and the Procurement accounts: Provided,
HR 3338 RFS
That these budget justification documents shall include a
description of the funding requested for each anticipated
contingency operation, for each military service, to include
active duty and Guard and Reserve components, and for
each appropriation account: Provided further, That these
documents shall include estimated costs for each element
of expense or object class, a reconciliation of increases and
decreases for ongoing contingency operations, and pro-
grammatic data including, but not limited to troop
strength for each active duty and Guard and Reserve com-
ponent, and estimates of the major weapons systems de-
ployed in support of each contingency: Provided further,
That these documents shall include budget exhibits OP–
5 and OP–32, as defined in the Department of Defense
Financial Management Regulation, for the Overseas Con-
tingency Operations Transfer Fund for fiscal years 2001
and 2002.
SEC. 8096. None of the funds appropriated or other-
wise made available by this or other Department of De-
fense Appropriations Acts may be obligated or expended
for the purpose of performing repairs or maintenance to
military family housing units of the Department of De-
fense, including areas in such military family housing
units that may be used for the purpose of conducting offi-
cial Department of Defense business.
HR 3338 RFS
SEC. 8097. Notwithstanding any other provision of
law, funds appropriated in this Act under the heading
‘‘Research, Development, Test and Evaluation, Defense-
Wide’’ for any advanced concept technology demonstration
project may only be obligated 30 days after a report, in-
cluding a description of the project and its estimated an-
nual and total cost, has been provided in writing to the
congressional defense committees: Provided, That the Sec-
retary of Defense may waive this restriction on a case-
by-case basis by certifying to the congressional defense
committees that it is in the national interest to do so.
SEC. 8098. Notwithstanding any other provision of
law, for the purpose of establishing all Department of De-
fense policies governing the provision of care provided by
and financed under the military health care system’s case
management program under 10 U.S.C. 1079(a)(17), the
term ‘‘custodial care’’ shall be defined as care designed
essentially to assist an individual in meeting the activities
of daily living and which does not require the supervision
of trained medical, nursing, paramedical or other specially
trained individuals: Provided, That the case management
program shall provide that members and retired members
of the military services, and their dependents and sur-
vivors, have access to all medically necessary health care
through the health care delivery system of the military
HR 3338 RFS
services regardless of the health care status of the person
seeking the health care: Provided further, That the case
management program shall be the primary obligor for pay-
ment of medically necessary services and shall not be con-
sidered as secondarily liable to title XIX of the Social Se-
curity Act, other welfare programs or charity based care.
SEC. 8099. (a) During the current fiscal year, any
refund described in subsection (b) may be credited to the
operation and maintenance account of the Department of
Defense that is current when the refund is received and
that is available for the same purposes as the account
originally charged.
(b) Subsection (a) applies to the following:
(1) Any refund attributable to the use of a Gov-
ernment travel card by a member of the Armed
Forces or a civilian employee of the Department of
Defense.
(2) Any refund attributable to the use of a Gov-
ernment Purchase card by a member of the Armed
Forces or a civilian employee of the Department of
Defense.
(3) Any refund attributable to official Govern-
ment travel by a member of the Armed Forces or a
civilian employee of the Department of Defense that
HR 3338 RFS
is arranged by a Government Contracted Travel
Management Center.
SEC. 8100. (a) REGISTERING FINANCIAL MANAGE-
MENT INFORMATION TECHNOLOGY SYSTEMS WITH DOD
CHIEF INFORMATION OFFICER.—None of the funds ap-
propriated in this Act may be used for a mission critical
or mission essential financial management information
technology system (including a system funded by the de-
fense working capital fund) that is not registered with the
Chief Information Officer of the Department of Defense.
A system shall be considered to be registered with that
officer upon the furnishing to that officer of notice of the
system, together with such information concerning the
system as the Secretary of Defense may prescribe. A fi-
nancial management information technology system shall
be considered a mission critical or mission essential infor-
mation technology system as defined by the Under Sec-
retary of Defense (Comptroller).
(b) CERTIFICATIONS AS TO COMPLIANCE WITH FI-
NANCIAL
MANAGEMENT
MODERNIZATION
PLAN.—(1)
During the current fiscal year, a financial management
major automated information system may not receive
Milestone I approval, Milestone II approval, or Milestone
III approval, or their equivalent, within the Department
of Defense until the Under Secretary of Defense (Comp-
HR 3338 RFS
troller) certifies, with respect to that milestone, that the
system is being developed in accordance with the Depart-
ment’s Financial Management Modernization Plan. The
Under Secretary of Defense (Comptroller) may require ad-
ditional certifications, as appropriate, with respect to any
such system.
(2) The Chief Information Officer shall provide the
congressional defense committees timely notification of
certifications under paragraph (1).
(c) DEFINITIONS.—For purposes of this section:
(1) The term ‘‘Chief Information Officer’’
means the senior official of the Department of De-
fense designated by the Secretary of Defense pursu-
ant to section 3506 of title 44, United States Code.
(2) The term ‘‘information technology system’’
has the meaning given the term ‘‘information tech-
nology’’ in section 5002 of the Clinger-Cohen Act of
1996 (40 U.S.C. 1401).
(3) The term ‘‘major automated information
system’’ has the meaning given that term in Depart-
ment of Defense Directive 5000.1.
SEC. 8101. During the current fiscal year, none of
the funds available to the Department of Defense may be
used to provide support to another department or agency
of the United States if such department or agency is more
100
HR 3338 RFS
than 90 days in arrears in making payment to the Depart-
ment of Defense for goods or services previously provided
to such department or agency on a reimbursable basis:
Provided, That this restriction shall not apply if the de-
partment is authorized by law to provide support to such
department or agency on a nonreimbursable basis, and is
providing the requested support pursuant to such author-
ity: Provided further, That the Secretary of Defense may
waive this restriction on a case-by-case basis by certifying
in writing to the Committees on Appropriations of the
House of Representatives and the Senate that it is in the
national security interest to do so.
SEC. 8102. None of the funds provided in this Act
may be used to transfer to any nongovernmental entity
ammunition held by the Department of Defense that has
a center-fire cartridge and a United States military no-
menclature designation of ‘‘armor penetrator’’, ‘‘armor
piercing (AP)’’, ‘‘armor piercing incendiary (API)’’, or
‘‘armor-piercing incendiary-tracer (API–T)’’, except to an
entity performing demilitarization services for the Depart-
ment of Defense under a contract that requires the entity
to demonstrate to the satisfaction of the Department of
Defense that armor piercing projectiles are either: (1) ren-
dered incapable of reuse by the demilitarization process;
or (2) used to manufacture ammunition pursuant to a con-
101
HR 3338 RFS
tract with the Department of Defense or the manufacture
of ammunition for export pursuant to a License for Per-
manent Export of Unclassified Military Articles issued by
the Department of State.
SEC. 8103. Notwithstanding any other provision of
law, the Chief of the National Guard Bureau, or his des-
ignee, may waive payment of all or part of the consider-
ation that otherwise would be required under 10 U.S.C.
2667, in the case of a lease of personal property for a
period not in excess of 1 year to any organization specified
in 32 U.S.C. 508(d), or any other youth, social, or fra-
ternal non-profit organization as may be approved by the
Chief of the National Guard Bureau, or his designee, on
a case-by-case basis.
SEC. 8104. None of the funds appropriated by this
Act shall be used for the support of any nonappropriated
funds activity of the Department of Defense that procures
malt beverages and wine with nonappropriated funds for
resale (including such alcoholic beverages sold by the
drink) on a military installation located in the United
States unless such malt beverages and wine are procured
within that State, or in the case of the District of Colum-
bia, within the District of Columbia, in which the military
installation is located: Provided, That in a case in which
the military installation is located in more than one State,
102
HR 3338 RFS
purchases may be made in any State in which the installa-
tion is located: Provided further, That such local procure-
ment requirements for malt beverages and wine shall
apply to all alcoholic beverages only for military installa-
tions in States which are not contiguous with another
State: Provided further, That alcoholic beverages other
than wine and malt beverages, in contiguous States and
the District of Columbia shall be procured from the most
competitive source, price and other factors considered.
SEC. 8105. During the current fiscal year, under reg-
ulations prescribed by the Secretary of Defense, the Cen-
ter of Excellence for Disaster Management and Humani-
tarian Assistance may also pay, or authorize payment for,
the expenses of providing or facilitating education and
training for appropriate military and civilian personnel of
foreign countries in disaster management, peace oper-
ations, and humanitarian assistance: Provided, That not
later than April 1, 2002, the Secretary of Defense shall
submit to the congressional defense committees a report
regarding the training of foreign personnel conducted
under this authority during the preceding fiscal year for
which expenses were paid under the section: Provided fur-
ther, That the report shall specify the countries in which
the training was conducted, the type of training con-
ducted, and the foreign personnel trained.
103
HR 3338 RFS
SEC. 8106. (a) The Department of Defense is author-
ized to enter into agreements with the Veterans Adminis-
tration and federally-funded health agencies providing
services to Native Hawaiians for the purpose of estab-
lishing a partnership similar to the Alaska Federal Health
Care Partnership, in order to maximize Federal resources
in the provision of health care services by federally-funded
health agencies, applying telemedicine technologies. For
the purpose of this partnership, Native Hawaiians shall
have the same status as other Native Americans who are
eligible for the health care services provided by the Indian
Health Service.
(b) The Department of Defense is authorized to de-
velop a consultation policy, consistent with Executive
Order No. 13084 (issued May 14, 1998), with Native Ha-
waiians for the purpose of assuring maximum Native Ha-
waiian participation in the direction and administration of
governmental services so as to render those services more
responsive to the needs of the Native Hawaiian commu-
nity.
(c) For purposes of this section, the term ‘‘Native
Hawaiian’’ means any individual who is a descendant of
the aboriginal people who, prior to 1778, occupied and ex-
ercised sovereignty in the area that now comprises the
State of Hawaii.
104
HR 3338 RFS
SEC. 8107. In addition to the amounts provided else-
where in this Act, the amount of $10,000,000 is hereby
appropriated for ‘‘Operation and Maintenance, Defense-
Wide’’, to be available, notwithstanding any other provi-
sion of law, only for a grant to the United Service Organi-
zations Incorporated, a federally chartered corporation
under chapter 2201 of title 36, United States Code. The
grant provided under authority of this section is in addi-
tion to any grant provided for under any other provision
of law.
SEC. 8108. Of the amounts appropriated in the Act
under the heading, ‘‘Research, Development, Test and
Evaluation, Ballistic Missile Defense Organization’’,
$34,000,000 may be available for the purpose of adjusting
the cost-share of the parties under the Agreement between
the Department of Defense and the Ministry of Defence
of Israel for the Arrow Deployability Program.
SEC. 8109. Funds available to the Department of De-
fense for the Global Positioning System during the current
fiscal year may be used to fund civil requirements associ-
ated with the satellite and ground control segments of
such system’s modernization program.
(INCLUDING TRANSFER OF FUNDS)
SEC. 8110. Of the amounts appropriated in this Act
under the heading, ‘‘Operation and Maintenance, Defense-
105
HR 3338 RFS
Wide’’, $115,000,000 shall remain available until ex-
pended: Provided, That notwithstanding any other provi-
sion of law, the Secretary of Defense is authorized to
transfer such funds to other activities of the Federal Gov-
ernment.
SEC. 8111. The Ballistic Missile Defense Organiza-
tion and its subordinate offices and associated contractors,
including the Lead Systems Integrator, shall notify the
congressional defense committees 15 days prior to issuing
any type of information or proposal solicitation for the
Ground Based Midcourse Defense Segment with a poten-
tial annual contract value greater than $5,000,000 or a
total contract value greater than $30,000,000.
SEC. 8112. None of the funds appropriated in this
Act under the heading ‘‘Overseas Contingency Operations
Transfer Fund’’ may be transferred or obligated for De-
partment of Defense expenses not directly related to the
conduct of overseas contingencies: Provided, That the Sec-
retary of Defense shall submit a report no later than 30
days after the end of each fiscal quarter to the Committees
on Appropriations of the Senate and House of Representa-
tives that details any transfer of funds from the ‘‘Overseas
Contingency Operations Transfer Fund’’: Provided fur-
ther, That the report shall explain any transfer for the
maintenance of real property, pay of civilian personnel,
106
HR 3338 RFS
base operations support, and weapon, vehicle or equipment
maintenance.
SEC. 8113. The Secretary of Defense may treat the
opening of the Pacific Wing of the National D-Day Mu-
seum in New Orleans, Louisiana, as an official event of
the Department of Defense for the purposes of the provi-
sion of support for ceremonies and activities related to
that opening.
SEC. 8114. Section 8106 of the Department of De-
fense Appropriations Act, 1997 (titles I through VIII of
the matter under subsection 101(b) of Public Law 104–
208; 110 Stat. 3009–111; 10 U.S.C. 113 note) shall con-
tinue in effect to apply to disbursements that are made
by the Department of Defense in fiscal year 2002.
SEC. 8115. In addition to amounts provided in this
Act, $2,000,000 is hereby appropriated for ‘‘Defense
Health Program’’, to remain available for obligation until
expended: Provided, That notwithstanding any other pro-
vision of law, these funds shall be available only for a
grant to the Fisher House Foundation, Inc., only for the
construction and furnishing of additional Fisher Houses
to meet the needs of military family members when con-
fronted with the illness or hospitalization of an eligible
military beneficiary.
107
HR 3338 RFS
(INCLUDING TRANSFER OF FUNDS)
SEC. 8116. In addition to the amounts appropriated
elsewhere in this Act, $2,000,000, to remain available
until expended, is hereby appropriated to the Department
of Defense: Provided, That not later than 30 days after
the enactment of this Act, the Secretary of Defense shall
transfer these funds to the Department of Energy appro-
priation account ‘‘Fossil Energy Research and Develop-
ment’’, only for a proposed conceptual design study to ex-
amine the feasibility of a zero emissions, steam injection
process with possible applications for increased power gen-
eration efficiency, enhanced oil recovery and carbon se-
questration.
SEC. 8117. The total amount appropriated in this Act
is reduced by $955,000,000, for efficiencies in the con-
tractor work force, to be derived as follows:
‘‘Operation 
and 
Maintenance, 
Army’’,
$269,500,000;
‘‘Operation 
and 
Maintenance, 
Navy’’,
$157,200,000;
‘‘Operation and Maintenance, Marine Corps’’,
$23,900,000;
‘‘Operation and Maintenance, Air Force’’,
$180,200,000;
108
HR 3338 RFS
‘‘Operation and Maintenance, Defense-Wide’’,
$103,700,000;
‘‘Operation and Maintenance, Army Reserve’’,
$23,200,000;
‘‘Operation and Maintenance, Navy Reserve’’,
$3,300,000;
‘‘Operation and Maintenance, Air Force Re-
serve’’, $31,200,000;
‘‘Operation and Maintenance, Army National
Guard’’, $53,600,000;
‘‘Operation and Maintenance, Air National
Guard’’, $52,500,000;
‘‘Research, Development, Test and Evaluation,
Army’’, $35,300,000;
‘‘Research, Development, Test and Evaluation,
Navy’’, $3,000,000;
‘‘Research, Development, Test and Evaluation,
Air Force’’, $15,700,000; and
‘‘Research, Development, Test and Evaluation,
Defense-Wide’’, $2,700,000.
SEC. 8118. Funds appropriated for Operation and
Maintenance in title II of this Act may be used to complete
certain projects for which funds have been provided
from—
109
HR 3338 RFS
(1) amounts appropriated for ‘‘Operation and
Maintenance, Navy’’ in section 110 of the Emer-
gency Supplemental Act, 2000 (division B of Public
Law 106–246; 114 Stat. 530); or
(2) amounts appropriated for ‘‘Operation and
Maintenance, Navy’’ in section 9001(a)(2)(i) of the
Department of Defense Appropriations Act, 2001
(Public Law 106–259; 114 Stat. 709).
SEC. 8119. Notwithstanding any other provision of
law, from funds appropriated in this or any other Act
under the heading, ‘‘Aircraft Procurement, Air Force’’,
that remain available for obligation, not to exceed
$16,000,000 shall be available for recording, adjusting,
and liquidating obligations for the C–17 aircraft properly
chargeable to the fiscal year 1998 ‘‘Aircraft Procurement,
Air Force’’ account: Provided, That the Secretary of the
Air Force shall notify the congressional defense commit-
tees 30 days prior to obligation of all of the specific
sources of funds to be used for such purpose.
SEC. 8120. Notwithstanding any other provision of
law, from funds appropriated in this or any other Act
under the heading, ‘‘Missile Procurement, Air Force’’,
that remain available for obligation, not to exceed
$50,000,000 shall be available for recording, adjusting,
and liquidating obligations properly chargeable to fiscal
110
HR 3338 RFS
year 1997 and 1998 ‘‘Missile Procurement, Air Force’’ ac-
counts: Provided, That the Secretary of the Air Force
shall notify the congressional defense committees 30 days
prior to obligation of all of the specific sources of funds
to be used for such purpose.
(INCLUDING TRANSFER OF FUNDS)
SEC. 8121. Of the amounts appropriated in this Act
under the heading, ‘‘Shipbuilding and Conversion, Navy’’,
$680,000,000 shall be available until September 30, 2002,
to fund prior year shipbuilding cost increases: Provided,
That upon enactment of this Act, the Secretary of Defense
shall transfer such funds to the following appropriations
in the amounts specified: Provided further, That the
amounts transferred shall be merged with and be available
for the same purposes and for the same time period as
the appropriations or fund to which transferred:
To:
Under the heading, ‘‘Shipbuilding and Conver-
sion, Navy, 1995/2002’’: Carrier Replacement Pro-
gram, $172,364,000;
Under the heading, ‘‘Shipbuilding and Conver-
sion, Navy, 1996/2002’’: LPD–17 Amphibious
Transport Dock Ship Program, $172,989,000;
Under the heading, ‘‘Shipbuilding and Conver-
sion, Navy, 1997/2002’’: DDG–51 Destroyer Pro-
gram, $37,200,000;
111
HR 3338 RFS
Under the heading, ‘‘Shipbuilding and Conver-
sion, Navy, 1998/2002’’:
NSSN Program, $123,561,000;
DDG–51 
Destroyer 
Program,
$111,457,000;
Under the heading, ‘‘Shipbuilding and Conver-
sion, 
Navy, 
1999/2002’’: 
NSSN 
Program,
$62,429,000.
(TRANSFER OF FUNDS)
SEC. 8122. Upon enactment of this Act, the Sec-
retary of Defense shall make the following transfers of
funds: Provided, That the amounts transferred shall be
available for the same purpose as the appropriations to
which transferred, and for the same time period as the
appropriation from which transferred: Provided further,
That the amounts shall be transferred between the fol-
lowing appropriations in the amount specified:
From:
Under the heading, ‘‘Shipbuilding and Conver-
sion, Navy, 1990/2002’’:
TRIDENT ballistic missile submarine pro-
gram, $78,000;
SSN–21 
attack 
submarine 
program,
$66,000;
DDG–51 destroyer program, $6,100,000;
112
HR 3338 RFS
ENTERPRISE 
refueling/modernization
program, $964,000;
LSD–41 dock landing ship cargo variant
ship program, $237,000;
MCM mine countermeasures program,
$118,000;
Oceanographic ship program, $2,317,000;
AOE 
combat 
support 
ship 
program,
$164,000;
AO conversion program, $56,000;
Coast Guard icebreaker ship program,
$863,000;
Craft, outfitting, post delivery, and ship
special support equipment, $529,000;
To:
Under the heading, ‘‘Shipbuilding and Conver-
sion, Navy, 1998/2002’’: DDG–51 destroyer pro-
gram, $11,492,000;
From:
Under the heading, ‘‘Shipbuilding and Conver-
sion, Navy, 1993/2002’’:
DDG–51 destroyer program, $3,986,000;
LHD–1 amphibious assault ship program,
$85,000;
113
HR 3338 RFS
LSD–41 dock landing ship cargo variant
program, $428,000;
AOE 
combat 
support 
ship 
program,
$516,000;
Craft, outfitting, post delivery, and first
destination transportation, and inflation adjust-
ments, $1,034,000;
To:
Under the heading, ‘‘Shipbuilding and Conver-
sion, Navy, 1998/2002’’: DDG–51 destroyer pro-
gram, $6,049,000.
(INCLUDING TRANSFER OF FUNDS)
SEC. 8123. Of the funds appropriated by this Act
under the heading, ‘‘Operation and Maintenance, Navy’’,
$56,000,000 shall remain available until expended, only
for costs associated with the stabilization, return, refit-
ting, necessary force protection upgrades, and repair of
the U.S.S. COLE: Provided, That the Secretary of De-
fense may transfer these funds to appropriations accounts
for procurement and that the funds transferred shall be
merged with and shall be available for the same purposes
and for the same time period as the appropriation to which
transferred: Provided further, That the transfer authority
provided in this section is in addition to any other transfer
authority available to the Department of Defense.
114
HR 3338 RFS
SEC. 8124. The Secretary of the Navy may settle,
or compromise, and pay any and all admiralty claims
under 10 U.S.C. 7622 arising out of the collision involving
the U.S.S. GREENEVILLE and the EHIME MARU, in
any amount and without regard to the monetary limita-
tions in subsections (a) and (b) of that section: Provided,
That such payments shall be made from funds available
to the Department of the Navy for operation and mainte-
nance.
SEC. 8125. Notwithstanding section 229(a) of the So-
cial Security Act, no wages shall be deemed to have been
paid to any individual pursuant to that section in any cal-
endar year after 2001.
SEC. 8126. The total amount appropriated in this Act
is hereby reduced by $230,000,000 to reflect fact-of-life
changes in utilities costs, to be derived as follows:
‘‘Operation 
and 
Maintenance, 
Army’’,
$75,900,000;
‘‘Operation 
and 
Maintenance, 
Navy’’,
$17,100,000;
‘‘Operation and Maintenance, Marine Corps’’,
$15,000,000;
‘‘Operation and Maintenance, Air Force’’,
$60,100,000;
115
HR 3338 RFS
‘‘Operation and Maintenance, Defense-Wide’’,
$9,800,000;
‘‘Operation and Maintenance, Army Reserve’’,
$6,000,000;
‘‘Operation and Maintenance, Navy Reserve’’,
$2,300,000;
‘‘Operation and Maintenance, Marine Corps Re-
serve’’, $800,000;
‘‘Operation and Maintenance, Air Force Re-
serve’’, $3,000,000;
‘‘Operation and Maintenance, Army National
Guard’’, $6,000,000;
‘‘Operation and Maintenance, Air National
Guard’’, $7,500,000;
‘‘Drug Interdiction and Counter-Drug Activi-
ties, Defense’’, $800,000;
‘‘Defense 
Working 
Capital 
Funds’’,
$14,400,000; and
‘‘Defense Health Program’’, $11,300,000.
SEC. 8127. Notwithstanding any other provision in
this Act, the total amount appropriated in this Act is here-
by reduced by $797,919,000, to reduce excess funded car-
ryover, to be derived as follows:
‘‘Operation 
and 
Maintenance, 
Army’’,
$131,000,000;
116
HR 3338 RFS
‘‘Operation 
and 
Maintenance, 
Navy’’,
$343,719,000;
‘‘Operation and Maintenance, Marine Corps’’,
$25,000,000;
‘‘Operation and Maintenance, Air Force’’,
$283,200,000;
‘‘Operation and Maintenance, Defense-Wide’’,
$15,000,000.
SEC. 8128. (a) Of the total amount appropriated for
‘‘Operation and Maintenance, Air Force’’, $2,500,000, to
remain available until expended, shall be available to the
Secretary of the Air Force only for the purpose of making
a grant in the amount of $2,500,000 to the Lafayette Es-
cadrille Memorial Foundation, Inc., to be used to perform
the repair, restoration, and preservation of the structure,
plaza, and surrounding grounds of the Lafayette Esca-
drille Memorial in Marnes la-Coguette, France.
(b) The Secretary shall require as a condition of the
grant—
(1) that the funds provided through the grant
be used only for costs associated with such repair,
restoration, and preservation; and
(2) that none of those funds may be used for
remuneration of any entity or individual associated
117
HR 3338 RFS
with fund raising for the project to carry out such
repair, restoration, and preservation.
SEC. 8129. None of the funds in this or any other
Act may be used by the Secretary of the Interior to remove
the five foot tall memorial cross originally erected in 1934
by the Veterans of Foreign Wars in honor of fallen World
War I veterans and located within the boundary of the
Mojave National Preserve in southern California along
Cima Road approximately 11 miles south of Interstate 15.
SEC. 8130. In addition to the amounts provided else-
where in this Act, the amount of $6,000,000 is hereby ap-
propriated to the Department of Defense for ‘‘Operation
and Maintenance, Navy’’. Such amount shall be used by
the Secretary of the Navy only to make a grant in the
amount of $6,000,000 to the U.S.S. Alabama Battleship
Foundation, a nonprofit organization established under
the laws of the State of Alabama, to be available only for
the preservation of the former U.S.S. ALABAMA (ex BB–
60) as a museum and memorial.
SEC. 8131. In addition to the amounts provided else-
where in this Act, the amount of $5,000,000 is hereby ap-
propriated to the Department of Defense for ‘‘Operation
and Maintenance, Navy’’. Such amount shall be used by
the Secretary of the Navy only to make a grant in the
amount of $5,000,000 to the Intrepid Sea-Air-Space
118
HR 3338 RFS
Foundation only for the preservation of the former U.S.S.
INTREPID (CV 11) as a museum and memorial.
SEC. 8132. In addition to the amounts provided else-
where in this Act, the amount of $6,000,000 is hereby ap-
propriated to the Department of Defense for ‘‘Operation
and Maintenance, Air Force’’. Such amount shall be used
by the Secretary of the Air Force only to make a grant
in the amount of $6,000,000 to the Medical Lake School
District, Washington State school district number 326, for
relocation of the Fairchild Air Force Base Elementary
School within the boundary of Fairchild Air Force Base,
Washington.
SEC. 8133. In addition to the amounts provided else-
where in this Act, the amount of $5,000,000 is hereby ap-
propriated to the Department of Defense for ‘‘Operation
and Maintenance, Navy’’. Such amount shall be used by
the Secretary of the Navy only to make a grant in the
amount of $5,000,000 to the Central Kitsap School Dis-
trict, Washington State school district number 401, for
the purchase and installation of equipment for a special
needs learning center to meet the needs of Department
of Defense special needs students at Submarine Base Ban-
gor, Washington.
SEC. 8134. (a) In addition to amounts provided else-
where in this Act, the amount of $10,000,000 is hereby
119
HR 3338 RFS
appropriated for ‘‘Operation and Maintenance, Defense-
Wide’’, to be available to the Secretary of Defense only
for the purpose of making a grant for the purpose speci-
fied in section 8156 of the Department of Defense Appro-
priations Act, 2001 (Public Law 106–259; 114 Stat. 707),
as amended by subsection (b). Such grant shall be made
not later than 90 days after the date of the enactment
of this Act.
(b) Section 8156 of the Department of Defense Ap-
propriations Act, 2001 (Public Law 106–259; 114 Stat.
707), is amended by striking the comma after ‘‘Cali-
fornia’’ the first place it appears and all that follows
through ‘‘96–8867)’’.
SEC. 8135. (a) ACTIVITIES UNDER FORMERLY UTI-
LIZED SITES REMEDIAL ACTION PROGRAM.—Subject to
subsections (b) through (e) of section 611 of Public Law
106–60 (113 Stat. 502; 10 U.S.C. 2701 note), the Sec-
retary of the Army, acting through the Chief of Engineers,
under the Formerly Utilized Sites Remedial Action Pro-
gram shall undertake the functions and activities specified
in subsection (a) of such section in order to—
(1) clean up radioactive contamination at the
Shpack Landfill site located in Norton and Attle-
boro, Massachusetts; and
120
HR 3338 RFS
(2) clean up radioactive waste at the Shallow
Land Disposal Area located in Parks Township,
Armstrong County, Pennsylvania, consistent with
the Memorandum of Understanding Between the
United States Nuclear Regulatory Commission and
the United States Army Corps of Engineers for Co-
ordination on Cleanup and Decommissioning of the
Formerly Utilized Sites Remedial Action Program
(FUSRAP) Sites with NRC-Licensed Facilities,
dated July 5, 2001.
(b) SPECIAL RULES REGARDING SHALLOW LAND
DISPOSAL AREA.—The Secretary of the Army shall seek
to recover response costs incurred by the Army Corps of
Engineers for cleanup of the Shallow Land Disposal Area
from appropriate responsible parties in accordance with
the Comprehensive Environmental Response, Compensa-
tion, and Liability Act of 1980 (42 U.S.C. 9601 et seq.).
The Secretary of the Army and the Corps of Engineers
shall not, by virtue of this cleanup, become liable for the
actions or omissions of past, current, or future licensees,
owners, or operators of the Shallow Land Disposal Area.
(c) FUNDING SOURCES.—Amounts appropriated to
the Army Corps of Engineers for fiscal year 2001 and sub-
sequent fiscal years and available for the Formerly Uti-
121
HR 3338 RFS
lized Sites Remedial Action Program shall be available to
carry out this section.
SEC. 8136. In addition to amounts otherwise appro-
priated or made available by this Act, $3,000,000 is ap-
propriated to the Secretary of the Air Force and shall be
used by the Secretary to reestablish the Tethered Aerostat
Radar System at Morgan City, Louisiana, previously used
by the Air Force in maritime, air, and land counter-drug
detection and monitoring. Of the amounts appropriated or
otherwise made available for operation and maintenance
for the Air Force, the Secretary shall use $3,000,000 to
operate such Tethered Aerostat Radar System upon its
reestablishment.
SEC. 8137. None of the funds in this Act may be
used to implement the establishment of an independent
unmanned aerial vehicle joint operational test bed system
and/or the transfer of two Predator UAVs, tactical control
system (TCS) ground station and assorted equipment
from the Navy to Joint Forces Command (JFCOM).
SEC. 8138. The $100,000 limitation established by
section 8043 of Public Law 106–259, shall not apply to
amounts appropriated in that Act under the heading ‘‘Op-
eration and Maintenance, Defense-Wide’’ for expenses re-
lated to certain classified activities associated with foreign
material.
122
HR 3338 RFS
SEC. 8139. The total amount appropriated in this Act
for Operation and Maintenance is hereby reduced by
$330,000,000, to reflect savings attributable to improved
supervision in determining appropriate purchases to be
made using the Government purchase card, to be derived
as follows:
‘‘Operation 
and 
Maintenance, 
Army’’,
$122,100,000;
‘‘Operation 
and 
Maintenance, 
Navy’’,
$95,700,000;
‘‘Operation and Maintenance, Marine Corps’’,
$9,900,000;
‘‘Operation and Maintenance, Air Force’’,
$79,200,000; and
‘‘Operation and Maintenance, Defense-Wide’’,
$23,100,000.
SEC. 8140. The Secretary of Defense and the Sec-
retary of Veterans Affairs shall jointly conduct a com-
prehensive assessment that identifies and evaluates
changes to Department of Defense and Department of
Veterans Affairs health care delivery policies, methods,
practices, and procedures in order to provide improved
health care services at reduced costs to the taxpayer. This
assessment shall include a detailed independent review,
based on a statement of work authored by the Secretaries
123
HR 3338 RFS
of both departments, of options to collocate or share facili-
ties and care providers in areas where duplication and ex-
cess capacity may exist, optimize economies of scale
through joint procurement of supplies and services, insti-
tute cooperative service agreements, and partially or fully
integrate DOD and VA systems providing telehealth serv-
ices, computerized patient records, provider credentialing,
surgical quality assessment, rehabilitation services, admin-
istrative services, and centers of excellence for specialized
health care services. The Secretaries shall jointly transmit
a report to Congress by no later than March 1, 2002, ex-
plaining the findings and conclusions of this assessment,
including detailed estimates of the costs, cost savings, and
service benefits of each recommendation, and making leg-
islative and administrative recommendations to implement
the results of this effort: Provided, That of the funds pro-
vided under the heading ‘‘Defense Health Program’’
$5,000,000 shall be made available only for the purpose
of conducting the assessment described in this section.
SEC. 8141. (a) Notwithstanding any other provision
of law, operation and maintenance funds provided in this
Act may be used for the purchase of ultralightweight cam-
ouflage net systems as unit spares in order to modernize
the current inventory of camouflage screens to state-of-
124
HR 3338 RFS
the-art protection standards more quickly than would oth-
erwise be the case.
(b) The authority provided by subsection (a) may not
be used until the Secretary of the Army submits to the
congressional defense committees a report certifying that,
compared to the current system that can be purchased
with Army Operation and Maintenance funds, the
ultralightweight camouflage net system—
(1) is technically superior against multi-spectral
threat sensors;
(2) is less costly per unit; and
(3) provides improved overall force protection.
SEC. 8142. (a) FORT IRWIN MILITARY LAND WITH-
DRAWAL.—The provisions of title XXIX of H.R. 2586, as
passed by the House of Representatives on September 25,
2001 (entitled the Fort Irwin Military Land Withdrawal
Act of 2001), are hereby enacted into law.
(b) PUBLICATION OF PROVISIONS ENACTED BY REF-
ERENCE.—In publishing this Act in slip form and in the
United States Statutes at Large pursuant to section 112
of title 1, United States Code, the Archivist of the United
States shall include after the date of approval an appendix
setting forth the text of the provisions referred to in sub-
section (a).
125
HR 3338 RFS
SEC. 8143. Notwithstanding any other provision in
this Act, the total amount appropriated in this Act for
the Pentagon Reservation Maintenance Revolving Fund,
including standard real property operations is hereby re-
duced by $333,000,000, to be distributed as follows:
‘‘Operation 
and 
Maintenance, 
Army’’,
$114,270,000;
‘‘Operation 
and 
Maintenance, 
Navy’’,
$50,320,000;
‘‘Operation and Maintenance, Air Force’’,
$62,180,000;
‘‘Operation and Maintenance, Defense-Wide’’,
$102,120,000; and
‘‘Research, Development, Test and Evaluation,
Ballistic Missile Defense Organization’’, $4,110,000.
SEC. 8144. (a) FUNDING REDUCTION.—The amount
appropriated in this Act for ‘‘Operation and Maintenance,
Army’’ is hereby reduced by $37,200,000 to reflect effi-
ciencies in Army acquisition management practices.
(b) LIMITATIONS.—Effective 6 months after the date
of enactment of this Act none of the funds made available
by this Act may be used, directly or indirectly, for any
of the following purposes:
(1) To support the accomplishment of Army ac-
quisition systems management functions by military
126
HR 3338 RFS
or civilian personnel assigned to or employed by the
Army Training and Doctrine Command.
(2) To accomplish Army acquisition system re-
quirements determination functions, or analysis of
alternatives functions, by military or civilian per-
sonnel assigned to or employed by the Army Train-
ing and Doctrine Command.
(3) To accomplish Army acquisition program
management functions by military or civilian per-
sonnel assigned to or employed by the Army Mate-
rial Command.
(c) CIVILIAN PERSONNEL REDUCTIONS.—Pursuant
to this section, the Secretary of the Army shall reduce the
fiscal year end-strength number of civilian full-time equiv-
alent employees performing Army acquisition functions by
3 percent of the baseline number for each fiscal year from
fiscal year 2002 through fiscal year 2006. For purposes
of the preceding sentence, the term ‘‘baseline number’’
means the number of civilian full-time equivalent employ-
ees performing Army acquisition functions as of the close
of fiscal year 2001.
(d) REPORTS.—(1) The Secretary of the Army shall
include with the fiscal year 2003 budget justification ma-
terials for the Department of the Army information on—
127
HR 3338 RFS
(A) how personnel reductions required by sub-
section (c) will be accomplished and how Army ac-
quisition system and program management resources
will be transferred to other Army elements by reason
of those reductions; and
(B) any changes in Army policies to achieve
compliance with the limitations in subsection (b).
(2) The Secretary shall include with the budget jus-
tification materials for the Department of the Army for
each of fiscal years 2004 through 2007 information on—
(A) how personnel reductions required by sub-
section (c) have been accomplished to the date of the
report and will be accomplished during the then-cur-
rent fiscal year and thereafter; and
(B) how Army acquisition system and program
management resources have been transferred, as of
the date of the report, to other Army elements by
reason of those reductions and how such resources
will be transferred during the then-current fiscal
year and thereafter to other Army elements by rea-
son of those reductions, and each subsequent annual
budget request.
SEC. 8145. (a) NON-PROFIT ARMY VENTURE CAP-
ITAL CORPORATION.—Of the funds made available for
‘‘Research, Development, Test and Evaluation, Army’’,
128
HR 3338 RFS
$50,000,000 shall be available to the Secretary of the
Army only for the purpose of funding a venture capital
investment corporation established pursuant to section
2371 of title 10 United States Code, to be derived as spec-
ified in subsection (b).
(b) FUNDING.—The amount specified in subsection
(a) shall be derived by reducing, on a pro rata basis, the
following amounts: (1) Amounts made available to the
Army for basic research and applied research, except for
amounts for research projects designated as congressional
special interest items; and (2) Amounts made available to
the Army for research, development, test and evaluation
relating to the Future Combat System.
SEC. 8146. Notwithstanding any other provision of
law, in addition to amounts appropriated or otherwise
made available in this Act, $10,000,000 is hereby appro-
priated to ‘‘Operation and Maintenance, Defense-Wide’’
only for facility improvements necessary to integrate the
910th Airlift Wing and related activities at the Youngs-
town-Warren Regional Airport into the military cargo net-
work.
SEC. 8147. Notwithstanding any other provision of
law, in addition to amounts appropriated or otherwise
made available in this Act, $10,000,000 is hereby appro-
priated to ‘‘Operation and Maintenance, Defense-Wide’’
129
HR 3338 RFS
only for facility improvements and equipment purchases
necessary to augment the capabilities of local government
emergency response units responsible for protection of the
Pentagon Reservation to address emergency response defi-
ciencies identified as a result of the attack on the Pen-
tagon of September 11, 2001, and to provide additional
capabilities to meet the terrorism threat: Provided, That
the Secretary of Defense shall negotiate and establish an
appropriate Federal share for facility improvements fi-
nanced under this section prior to the expenditure of these
funds.
SEC. 8148. Notwithstanding any other provision of
law or regulation, the Secretary of Defense may exercise
the provisions of 38 U.S.C. 7403(g) for occupations listed
in 28 U.S.C. 7403(a)(2) as well as the following:
Pharmacists, Audiologists, and Dental Hygien-
ists.
(A) The requirements of 38 U.S.C.
7403(g)(1)(A) shall apply.
(B) 
The 
limitations 
of 
U.S.C.
7403(g)(1)(B) shall not apply.
SEC. 8149. (a) The Secretary of Defense may waive
any requirement that the fiscal year 2001 Department of
Defense financial statement include the accounts and as-
sociated activities of the Department of the Army and the
130
HR 3338 RFS
Department of the Navy, to the extent that the Secretary
determines necessary due to the effects of the terrorist at-
tack on the Pentagon of September 11, 2001.
(b) If any accounts and associated activities of the
Department of the Army or the Department of the Navy
are excluded from the fiscal year 2001 Department of De-
fense financial statement pursuant to subsection (a), the
Secretary of Defense shall, as soon as practicable after
March 1, 2002, prepare and submit to the Director of the
Office of Management and Budget, a revised audited fi-
nancial statement for fiscal year 2001 that includes all
such accounts and activities.
(c) For purposes of this section, the term ‘‘fiscal year
2001 Department of Defense financial statement’’ means
the audited financial statement of the Department of De-
fense for fiscal year 2001 required by section 3515 of title
31, United States Code, to be submitted to the Director
of the Office of Management and Budget not later than
March 1, 2002.
SEC. 8150. None of the funds appropriated in this
Act may be used to prepare a budget request for submis-
sion to Congress by the Department of Defense for fiscal
year 2003 that contains any proposal to acquire ships for
the Department of the Navy through the use of incre-
mental funding amounts or advanced appropriations. The
131
HR 3338 RFS
limitation against incremental funding does not apply to
the specific shipbuilding programs that were funded on an
incremental basis in fiscal year 2001.
SEC. 8151. In addition to amounts appropriated or
otherwise 
made 
available 
elsewhere 
in 
this 
Act,
$20,000,000, to remain available until September 30,
2004, is hereby appropriated to ‘‘Aircraft Procurement,
Air Force’’, only for the C–5 avionics modernization pro-
gram.
SEC. 8152. In addition to amounts appropriated or
otherwise 
made 
available 
elsewhere 
in 
this 
Act,
$10,000,000, to remain available until September 30,
2003, is hereby appropriated to ‘‘Research, Development,
Test and Evaluation, Air Force’’, only for the agile combat
support (IMITS) program.
SEC. 8153. In addition to amounts appropriated or
otherwise 
made 
available 
elsewhere 
in 
this 
Act,
$6,000,000, to remain available until September 30, 2003,
is hereby appropriated to ‘‘Research, Development, Test
and Evaluation, Army’’, only for laser vision correction de-
vices for the Walter Reed Army Medical Center.
SEC. 8154. Notwithstanding any other provision of
this Act, the Secretary of the Air Force may enter into
a multiyear contract, or extend an existing multiyear con-
tract, for the C–17 aircraft: Provided, That the authority
132
HR 3338 RFS
to enter into such a contract (or contract extension) may
not be exercised until a period of not less than 30 days
has elapsed after the date of the submission of a report
under paragraph (4) of section 2306b(l) of title 10, United
States Code: Provided further, That the authorities pro-
vided in this section shall not be available until the Sec-
retary of Defense submits to the congressional defense
committees a certification that the applicable requirements
under section 2306b of title 10, United States Code, and
section 8008 of this Act with respect to such a contract
(or contract extension) have been met.
SEC. 8155. Except as expressly provided otherwise,
any reference in a provision of titles I through IX to ‘‘this
Act’’ shall be treated as referring only to the provisions
of this division.
SEC. 8156. Notwithstanding any other provision of
law, of the funds appropriated in this Act under the head-
ing 
‘‘Operation 
and 
Maintenance, 
Defense-Wide’’,
$1,680,500, to remain available until expended, is pro-
vided only for payment of any expenses incurred after
April 1, 2002 of the Commission on the Future of the
United States Aerospace Industry pursuant to section
1092(e)(1) of the Floyd D. Spence National Defense Au-
thorization Act for Fiscal Year 2001 (as enacted by Public
Law 106–398; 114 Stat. 165A–215).
133
HR 3338 RFS
SEC. 8157. Of the funds appropriated in this Act
under the heading ‘‘Operation and Maintenance, Defense-
Wide’’, $1,000,000, to remain available until expended,
shall be made available to the Secretary of Defense, not-
withstanding any other provision of law, only for a grant
or grants to the Somerset County Board of Commissioners
(in the Commonwealth of Pennsylvania), to design and
construct a memorial (including operating and mainte-
nance expenses for appropriate security measures to pro-
tect the site) at the airplane crash site in Somerset Coun-
ty, Pennsylvania honoring the brave men, women, and
children who perished following a valiant struggle with ter-
rorists aboard United Airlines Flight 93 on September 11,
2001.
SEC. 8158. (a) None of the funds made available in
this division may be used to purchase—
(1) steel; or
(2) equipment, products, or systems that are
necessary to national security or national defense
and that are made with steel, that is not melted and
poured in the United States except in cases in which
the steel required for the intended use is not melted
and poured in the United States.