H. R. 2904
One Hundred Seventh Congress
of the
United States of America
AT THE FIRST SESSION
Begun and held at the City of Washington on Wednesday,
the third day of January, two thousand and one
An Act
Making appropriations for military construction, family housing, and base realign-
ment and closure for the Department of Defense for the fiscal year ending Sep-
tember 30, 2002, and for other purposes.
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled, That the
following sums are appropriated, out of any money in the Treasury
not otherwise appropriated for military construction, family
housing, and base realignment and closure functions administered
by the Department of Defense, for the fiscal year ending September
30, 2002, and for other purposes, namely:
MILITARY CONSTRUCTION, ARMY
(INCLUDING RESCISSION)
For acquisition, construction, installation, and equipment of
temporary or permanent public works, military installations, facili-
ties, and real property for the Army as currently authorized by
law, including personnel in the Army Corps of Engineers and other
personal services necessary for the purposes of this appropriation,
and for construction and operation of facilities in support of the
functions of the Commander in Chief, $1,778,256,000, to remain
available until September 30, 2006: Provided, That of this amount,
not to exceed $163,198,000 shall be available for study, planning,
design, architect and engineer services, and host nation support,
as authorized by law, unless the Secretary of Defense determines
that additional obligations are necessary for such purposes and
notifies the Committees on Appropriations of both Houses of Con-
gress of his determination and the reasons therefor: Provided fur-
ther, That of the funds appropriated for ‘‘Military Construction,
Army’’ under Public Law 106–52, $36,400,000 are rescinded.
MILITARY CONSTRUCTION, NAVY
(INCLUDING RESCISSION)
For acquisition, construction, installation, and equipment of
temporary or permanent public works, naval installations, facilities,
and real property for the Navy as currently authorized by law,
including personnel in the Naval Facilities Engineering Command
and other personal services necessary for the purposes of this appro-
priation, $1,144,221,000, to remain available until September 30,
2006: Provided, That of this amount, not to exceed $34,152,000
shall be available for study, planning, design, architect and engineer
services, as authorized by law, unless the Secretary of Defense
H. R. 2904—2
determines that additional obligations are necessary for such pur-
poses and notifies the Committees on Appropriations of both Houses
of Congress of his determination and the reasons therefor: Provided
further, That of the funds appropriated for ‘‘Military Construction,
Navy’’ under Public Law 106–246, $19,588,000 are rescinded.
MILITARY CONSTRUCTION, AIR FORCE
(INCLUDING RESCISSION)
For acquisition, construction, installation, and equipment of
temporary or permanent public works, military installations, facili-
ties, and real property for the Air Force as currently authorized
by law, $1,194,880,000, to remain available until September 30,
2006: Provided, That of this amount, not to exceed $83,210,000
shall be available for study, planning, design, architect and engineer
services, as authorized by law, unless the Secretary of Defense
determines that additional obligations are necessary for such pur-
poses and notifies the Committees on Appropriations of both Houses
of Congress of his determination and the reasons therefor: Provided
further, That of the funds appropriated for ‘‘Military Construction,
Air Force’’ under previous Military Construction Appropriations
Acts, $4,000,000 are rescinded.
MILITARY CONSTRUCTION, DEFENSE-WIDE
(INCLUDING TRANSFER AND RESCISSIONS OF FUNDS)
For acquisition, construction, installation, and equipment of
temporary or permanent public works, installations, facilities, and
real property for activities and agencies of the Department of
Defense (other than the military departments), as currently author-
ized by law, $840,558,000, to remain available until September
30, 2006: Provided, That such amounts of this appropriation as
may be determined by the Secretary of Defense may be transferred
to such appropriations of the Department of Defense available for
military construction or family housing as he may designate, to
be merged with and to be available for the same purposes, and
for the same time period, as the appropriation or fund to which
transferred: Provided further, That of the amount appropriated,
not to exceed $66,496,000 shall be available for study, planning,
design, architect and engineer services, as authorized by law, unless
the Secretary of Defense determines that additional obligations
are necessary for such purposes and notifies the Committees on
Appropriations of both Houses of Congress of his determination
and the reasons therefor: Provided further, That of the funds appro-
priated for ‘‘Military Construction, Defense-wide’’ under Public Law
106–246, $65,280,000 are rescinded: Provided further, That of the
funds appropriated for ‘‘Military Construction, Defense-wide’’ under
previous Military Construction Appropriations Acts, $4,000,000 are
rescinded.
MILITARY CONSTRUCTION, ARMY NATIONAL GUARD
For construction, acquisition, expansion, rehabilitation, and
conversion of facilities for the training and administration of the
Army National Guard, and contributions therefor, as authorized
by chapter 1803 of title 10, United States Code, and Military
H. R. 2904—3
Construction Authorization Acts, $405,565,000, to remain available
until September 30, 2006.
MILITARY CONSTRUCTION, AIR NATIONAL GUARD
For construction, acquisition, expansion, rehabilitation, and
conversion of facilities for the training and administration of the
Air National Guard, and contributions therefor, as authorized by
chapter 1803 of title 10, United States Code, and Military Construc-
tion Authorization Acts, $253,386,000, to remain available until
September 30, 2006.
MILITARY CONSTRUCTION, ARMY RESERVE
For construction, acquisition, expansion, rehabilitation, and
conversion of facilities for the training and administration of the
Army Reserve as authorized by chapter 1803 of title 10, United
States Code, and Military Construction Authorization Acts,
$167,019,000, to remain available until September 30, 2006.
MILITARY CONSTRUCTION, NAVAL RESERVE
(INCLUDING RESCISSION)
For construction, acquisition, expansion, rehabilitation, and
conversion of facilities for the training and administration of the
reserve components of the Navy and Marine Corps as authorized
by chapter 1803 of title 10, United States Code, and Military
Construction Authorization Acts, $53,201,000, to remain available
until September 30, 2006: Provided, That of the funds appropriated
for ‘‘Military Construction, Naval Reserve’’ under Public Law 106–
246, $925,000 are rescinded.
MILITARY CONSTRUCTION, AIR FORCE RESERVE
For construction, acquisition, expansion, rehabilitation, and
conversion of facilities for the training and administration of the
Air Force Reserve as authorized by chapter 1803 of title 10, United
States Code, and Military Construction Authorization Acts,
$74,857,000, to remain available until September 30, 2006.
NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT
PROGRAM
For the United States share of the cost of the North Atlantic
Treaty Organization Security Investment Program for the acquisi-
tion and construction of military facilities and installations
(including international military headquarters) and for related
expenses for the collective defense of the North Atlantic Treaty
Area as authorized in Military Construction Authorization Acts
and section 2806 of title 10, United States Code, $162,600,000,
to remain available until expended.
FAMILY HOUSING CONSTRUCTION, ARMY
For expenses of family housing for the Army for construction,
including acquisition, replacement, addition, expansion, extension
and alteration, as authorized by law, $312,742,000, to remain avail-
able until September 30, 2006.
H. R. 2904—4
FAMILY HOUSING OPERATION AND MAINTENANCE, ARMY
For expenses of family housing for the Army for operation
and maintenance, including debt payment, leasing, minor construc-
tion, principal and interest charges, and insurance premiums, as
authorized by law, $1,089,573,000.
FAMILY HOUSING CONSTRUCTION, NAVY AND MARINE CORPS
For expenses of family housing for the Navy and Marine Corps
for construction, including acquisition, replacement, addition,
expansion, extension and alteration, as authorized by law,
$331,780,000, to remain available until September 30, 2006.
FAMILY HOUSING OPERATION AND MAINTENANCE, NAVY AND
MARINE CORPS
For expenses of family housing for the Navy and Marine Corps
for operation and maintenance, including debt payment, leasing,
minor construction, principal and interest charges, and insurance
premiums, as authorized by law, $910,095,000.
FAMILY HOUSING CONSTRUCTION, AIR FORCE
For expenses of family housing for the Air Force for construc-
tion, including acquisition, replacement, addition, expansion, exten-
sion and alteration, as authorized by law, $550,703,000, to remain
available until September 30, 2006.
FAMILY HOUSING OPERATION AND MAINTENANCE, AIR FORCE
For expenses of family housing for the Air Force for operation
and maintenance, including debt payment, leasing, minor construc-
tion, principal and interest charges, and insurance premiums, as
authorized by law, $844,715,000.
FAMILY HOUSING, DEFENSE-WIDE
For expenses of family housing for the activities and agencies
of the Department of Defense (other than the military departments)
for construction, including acquisition, replacement, addition,
expansion, extension and alteration, and for operation and mainte-
nance, leasing, and minor construction, as authorized by law, as
follows: for Construction, $250,000 to remain available until Sep-
tember 30, 2006; for Operation and Maintenance, $43,762,000; in
all $44,012,000.
DEPARTMENT OF DEFENSE FAMILY HOUSING IMPROVEMENT FUND
For the Department of Defense Family Housing Improvement
Fund, $2,000,000, to remain available until expended, for family
housing initiatives undertaken pursuant to section 2883 of title
10, United States Code, providing alternative means of acquiring
and improving military family housing, and supporting facilities.
HOMEOWNERS ASSISTANCE FUND, DEFENSE
For the Homeowners Assistance Fund established by section
1013 of the Demonstration Cities and Metropolitan Development
H. R. 2904—5
Act of 1966, as amended (42 U.S.C. 3374) $10,119,000, to remain
available until expended.
BASE REALIGNMENT AND CLOSURE ACCOUNT
For deposit into the Department of Defense Base Closure
Account 1990 established by section 2906(a)(1) of the Department
of Defense Authorization Act, 1991 (Public Law 101–510),
$632,713,000, to remain available until expended.
GENERAL PROVISIONS
SEC. 101. None of the funds appropriated in Military Construc-
tion Appropriations Acts shall be expended for payments under
a cost-plus-a-fixed-fee contract for construction, where cost esti-
mates exceed $25,000, to be performed within the United States,
except Alaska, without the specific approval in writing of the Sec-
retary of Defense setting forth the reasons therefor.
SEC. 102. Funds appropriated to the Department of Defense
for construction shall be available for hire of passenger motor
vehicles.
SEC. 103. Funds appropriated to the Department of Defense
for construction may be used for advances to the Federal Highway
Administration, Department of Transportation, for the construction
of access roads as authorized by section 210 of title 23, United
States Code, when projects authorized therein are certified as
important to the national defense by the Secretary of Defense.
SEC. 104. None of the funds appropriated in this Act may
be used to begin construction of new bases inside the continental
United States for which specific appropriations have not been made.
SEC. 105. No part of the funds provided in Military Construction
Appropriations Acts shall be used for purchase of land or land
easements in excess of 100 percent of the value as determined
by the Army Corps of Engineers or the Naval Facilities Engineering
Command, except: (1) where there is a determination of value
by a Federal court; (2) purchases negotiated by the Attorney General
or his designee; (3) where the estimated value is less than $25,000;
or (4) as otherwise determined by the Secretary of Defense to
be in the public interest.
SEC. 106. None of the funds appropriated in Military Construc-
tion Appropriations Acts shall be used to: (1) acquire land; (2)
provide for site preparation; or (3) install utilities for any family
housing, except housing for which funds have been made available
in annual Military Construction Appropriations Acts.
SEC. 107. None of the funds appropriated in Military Construc-
tion Appropriations Acts for minor construction may be used to
transfer or relocate any activity from one base or installation to
another, without prior notification to the Committees on Appropria-
tions.
SEC. 108. No part of the funds appropriated in Military
Construction Appropriations Acts may be used for the procurement
of steel for any construction project or activity for which American
steel producers, fabricators, and manufacturers have been denied
the opportunity to compete for such steel procurement.
SEC. 109. None of the funds available to the Department of
Defense for military construction or family housing during the
current fiscal year may be used to pay real property taxes in
any foreign nation.
H. R. 2904—6
SEC. 110. None of the funds appropriated in Military Construc-
tion Appropriations Acts may be used to initiate a new installation
overseas without prior notification to the Committees on Appropria-
tions.
SEC. 111. None of the funds appropriated in Military Construc-
tion Appropriations Acts may be obligated for architect and engineer
contracts estimated by the Government to exceed $500,000 for
projects to be accomplished in Japan, in any NATO member country,
or in countries bordering the Arabian Sea, unless such contracts
are awarded to United States firms or United States firms in
joint venture with host nation firms.
SEC. 112. None of the funds appropriated in Military Construc-
tion Appropriations Acts for military construction in the United
States territories and possessions in the Pacific and on Kwajalein
Atoll, or in countries bordering the Arabian Sea, may be used
to award any contract estimated by the Government to exceed
$1,000,000 to a foreign contractor: Provided, That this section shall
not be applicable to contract awards for which the lowest responsive
and responsible bid of a United States contractor exceeds the lowest
responsive and responsible bid of a foreign contractor by greater
than 20 percent: Provided further, That this section shall not apply
to contract awards for military construction on Kwajalein Atoll
for which the lowest responsive and responsible bid is submitted
by a Marshallese contractor.
SEC. 113. The Secretary of Defense is to inform the appropriate
committees of Congress, including the Committees on Appropria-
tions, of the plans and scope of any proposed military exercise
involving United States personnel 30 days prior to its occurring,
if amounts expended for construction, either temporary or perma-
nent, are anticipated to exceed $100,000.
SEC. 114. Not more than 20 percent of the appropriations
in Military Construction Appropriations Acts which are limited
for obligation during the current fiscal year shall be obligated
during the last 2 months of the fiscal year.
(TRANSFER OF FUNDS)
SEC. 115. Funds appropriated to the Department of Defense
for construction in prior years shall be available for construction
authorized for each such military department by the authorizations
enacted into law during the current session of Congress.
SEC. 116. For military construction or family housing projects
that are being completed with funds otherwise expired or lapsed
for obligation, expired or lapsed funds may be used to pay the
cost of associated supervision, inspection, overhead, engineering
and design on those projects and on subsequent claims, if any.
SEC. 117. Notwithstanding any other provision of law, any
funds appropriated to a military department or defense agency
for the construction of military projects may be obligated for a
military construction project or contract, or for any portion of such
a project or contract, at any time before the end of the fourth
fiscal year after the fiscal year for which funds for such project
were appropriated if the funds obligated for such project: (1) are
obligated from funds available for military construction projects;
and (2) do not exceed the amount appropriated for such project,
plus any amount by which the cost of such project is increased
pursuant to law.
H. R. 2904—7
(TRANSFER OF FUNDS)
SEC. 118. During the 5-year period after appropriations avail-
able to the Department of Defense for military construction and
family housing operation and maintenance and construction have
expired for obligation, upon a determination that such appropria-
tions will not be necessary for the liquidation of obligations or
for making authorized adjustments to such appropriations for
obligations incurred during the period of availability of such appro-
priations, unobligated balances of such appropriations may be trans-
ferred into the appropriation ‘‘Foreign Currency Fluctuations,
Construction, Defense’’ to be merged with and to be available for
the same time period and for the same purposes as the appropria-
tion to which transferred.
SEC. 119. The Secretary of Defense is to provide the Committees
on Appropriations of the Senate and the House of Representatives
with an annual report by February 15, containing details of the
specific actions proposed to be taken by the Department of Defense
during the current fiscal year to encourage other member nations
of the North Atlantic Treaty Organization, Japan, Korea, and
United States allies bordering the Arabian Sea to assume a greater
share of the common defense burden of such nations and the United
States.
(TRANSFER OF FUNDS)
SEC. 120. During the current fiscal year, in addition to any
other transfer authority available to the Department of Defense,
proceeds deposited to the Department of Defense Base Closure
Account established by section 207(a)(1) of the Defense Authoriza-
tion Amendments and Base Closure and Realignment Act (Public
Law 100–526) pursuant to section 207(a)(2)(C) of such Act, may
be transferred to the account established by section 2906(a)(1) of
the Department of Defense Authorization Act, 1991, to be merged
with, and to be available for the same purposes and the same
time period as that account.
SEC. 121. (a) No funds appropriated pursuant to this Act may
be expended by an entity unless the entity agrees that in expending
the assistance the entity will comply with sections 2 through 4
of the Act of March 3, 1933 (41 U.S.C. 10a–10c, popularly known
as the ‘‘Buy American Act’’).
(b) No funds made available under this Act shall be made
available to any person or entity who has been convicted of violating
the Act of March 3, 1933 (41 U.S.C. 10a–10c, popularly known
as the ‘‘Buy American Act’’).
SEC. 122. (a) In the case of any equipment or products that
may be authorized to be purchased with financial assistance pro-
vided under this Act, it is the sense of the Congress that entities
receiving such assistance should, in expending the assistance, pur-
chase only American-made equipment and products.
(b) In providing financial assistance under this Act, the Sec-
retary of the Treasury shall provide to each recipient of the assist-
ance a notice describing the statement made in subsection (a)
by the Congress.
H. R. 2904—8
(TRANSFER OF FUNDS)
SEC. 123. Subject to 30 days prior notification to the Commit-
tees on Appropriations, such additional amounts as may be deter-
mined by the Secretary of Defense may be transferred to the Depart-
ment of Defense Family Housing Improvement Fund from amounts
appropriated for construction in ‘‘Family Housing’’ accounts, to be
merged with and to be available for the same purposes and for
the same period of time as amounts appropriated directly to the
Fund: Provided, That appropriations made available to the Fund
shall be available to cover the costs, as defined in section 502(5)
of the Congressional Budget Act of 1974, of direct loans or loan
guarantees issued by the Department of Defense pursuant to the
provisions of subchapter IV of chapter 169, title 10, United States
Code, pertaining to alternative means of acquiring and improving
military family housing and supporting facilities.
SEC. 124. None of the funds appropriated or made available
by this Act may be obligated for Partnership for Peace Programs
in the New Independent States of the former Soviet Union.
SEC. 125. (a) Not later than 60 days before issuing any solicita-
tion for a contract with the private sector for military family housing
the Secretary of the military department concerned shall submit
to the congressional defense committees the notice described in
subsection (b).
(b)(1) A notice referred to in subsection (a) is a notice of any
guarantee (including the making of mortgage or rental payments)
proposed to be made by the Secretary to the private party under
the contract involved in the event of—
(A) the closure or realignment of the installation for which
housing is provided under the contract;
(B) a reduction in force of units stationed at such installa-
tion; or
(C) the extended deployment overseas of units stationed
at such installation.
(2) Each notice under this subsection shall specify the nature
of the guarantee involved and assess the extent and likelihood,
if any, of the liability of the Federal Government with respect
to the guarantee.
(c) In this section, the term ‘‘congressional defense committees’’
means the following:
(1) The Committee on Armed Services and the Military
Construction Subcommittee, Committee on Appropriations of
the Senate.
(2) The Committee on Armed Services and the Military
Construction Subcommittee, Committee on Appropriations of
the House of Representatives.
(TRANSFER OF FUNDS)
SEC. 126. During the current fiscal year, in addition to any
other transfer authority available to the Department of Defense,
amounts may be transferred from the account established by section
2906(a)(1) of the Department of Defense Authorization Act, 1991,
to the fund established by section 1013(d) of the Demonstration
Cities and Metropolitan Development Act of 1966 (42 U.S.C. 3374)
to pay for expenses associated with the Homeowners Assistance
Program. Any amounts transferred shall be merged with and be