Calendar No. 117
105TH CONGRESS
1ST SESSION
H. R. 2016
[Report No. 105–52]
AN ACT
Making appropriations for military construction,
family housing, and base realignment and closure
for the Department of Defense for the fiscal year
ending September 30, 1998, and for other pur-
poses.
JULY 9, 1997
Received; read twice and referred to the Committee on
Appropriations
JULY 17, 1997
Reported with amendments
II
Calendar No. 117
105TH CONGRESS
1ST SESSION
H. R. 2016
[Report No. 105–52]
IN THE SENATE OF THE UNITED STATES
JULY 9, 1997
Received; read twice and referred to the Committee on Appropriations
JULY 17, 1997
Reported by Mr. BURNS, with amendments
[Omit the part struck through and insert the part printed in italic]
AN ACT
Making appropriations for military construction, family hous-
ing, and base realignment and closure for the Depart-
ment of Defense for the fiscal year ending September
30, 1998, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
That the following sums are appropriated, out of any
money in the Treasury not otherwise appropriated, for the
fiscal year ending September 30, 1998, for military con-
struction, family housing, and base realignment and clo-
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sure functions administered by the Department of De-
fense, and for other purposes, namely:
MILITARY CONSTRUCTION, ARMY
For acquisition, construction, installation, and equip-
ment of temporary or permanent public works, military
installations, facilities, and real property for the Army as
currently authorized by law, including personnel in the
Army Corps of Engineers and other personal services nec-
essary for the purposes of this appropriation, and for con-
struction and operation of facilities in support of the func-
tions of the Commander in Chief, $721,027,000
$652,046,000, to remain available until September 30,
2002: Provided, That of this amount, not to exceed
$71,577,000 $77,646,000 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 nec-
essary for such purposes and notifies the Committees on
Appropriations of both Houses of Congress of his deter-
mination and the reasons therefor.
MILITARY CONSTRUCTION, NAVY
For acquisition, construction, installation, and equip-
ment of temporary or permanent public works, naval in-
stallations, facilities, and real property for the Navy as
currently authorized by law, including personnel in the
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MILITARY CONSTRUCTION, ARMY NATIONAL GUARD
For construction, acquisition, expansion, rehabilita-
tion, and conversion of facilities for the training and ad-
ministration of the Army National Guard, and contribu-
tions therefor, as authorized by chapter 133 of title 10,
United States Code, and military construction authoriza-
tion Acts, $45,098,000 $234,614,000, to remain available
until September 30, 2002.
MILITARY CONSTRUCTION, AIR NATIONAL GUARD
For construction, acquisition, expansion, rehabilita-
tion, and conversion of facilities for the training and ad-
ministration of the Air National Guard, and contributions
therefor, as authorized by chapter 133 of title 10, United
States Code, and military construction authorization Acts,
$137,275,000 $185,115,000, to remain available until Sep-
tember 30, 2002.
MILITARY CONSTRUCTION, ARMY RESERVE
For construction, acquisition, expansion, rehabilita-
tion, and conversion of facilities for the training and ad-
ministration of the Army Reserve as authorized by chapter
133 of title 10, United States Code, and military construc-
tion authorization Acts, $77,731,000 $96,079,000, to re-
main available until September 30, 2002.
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MILITARY CONSTRUCTION, NAVAL RESERVE
For construction, acquisition, expansion, rehabilita-
tion, and conversion of facilities for the training and ad-
ministration of the reserve components of the Navy and
Marine Corps as authorized by chapter 133 of title 10,
United States Code, and military construction authoriza-
tion Acts, $40,561,000 $21,111,000, to remain available
until September 30, 2002.
MILITARY CONSTRUCTION, AIR FORCE RESERVE
For construction, acquisition, expansion, rehabilita-
tion, and conversion of facilities for the training and ad-
ministration of the Air Force Reserve as authorized by
chapter 133 of title 10, United States Code, and military
construction authorization Acts, $27,143,000 $31,830,000,
to remain available until September 30, 2002.
NORTH ATLANTIC TREATY ORGANIZATION
SECURITY INVESTMENT PROGRAM
For the United States share of the cost of the North
Atlantic Treaty Organization Security Investment Pro-
gram for the acquisition and construction of military fa-
cilities and installations (including international military
headquarters) and for related expenses for the collective
defense of the North Atlantic Treaty Area as authorized
in military construction authorization Acts and section
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2806 of title 10, United States Code, $166,300,000
$152,600,000, to remain available until expended.
FAMILY HOUSING, ARMY
For expenses of family housing for the Army for con-
struction, including acquisition, replacement, addition, ex-
pansion, extension and alteration and for operation and
maintenance, including debt payment, leasing, minor con-
struction, principal and interest charges, and insurance
premiums, as authorized by law, as follows: for Construc-
tion, $202,131,000 $167,100,000, to remain available until
September 30, 2002; for Operation and Maintenance, and
for debt payment, $1,148,937,000 $1,149,937,000; in all
$1,351,068,000 $1,317,037,000.
FAMILY HOUSING, NAVY AND MARINE CORPS
For expenses of family housing for the Navy and Ma-
rine Corps for construction, including acquisition, replace-
ment, addition, expansion, extension and alteration and
for operation and maintenance, including debt payment,
leasing, minor construction, principal and interest
charges, and insurance premiums, as authorized by law,
as follows: for Construction, $409,178,000 $362,619,000,
to remain available until September 30, 2002; for Oper-
ation 
and 
Maintenance, 
and 
for 
debt 
payment,
$976,504,000; in all $1,385,682,000 $1,339,123,000.
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FAMILY HOUSING, AIR FORCE
For expenses of family housing for the Air Force for
construction, including acquisition, replacement, addition,
expansion, extension and alteration and for operation and
maintenance, including debt payment, leasing, minor con-
struction, principal and interest charges, and insurance
premiums, as authorized by law, as follows: for Construc-
tion, $341,409,000 $296,633,000, to remain available until
September 30, 2002; for Operation and Maintenance, and
for debt payment, $830,234,000; in all $1,171,643,000
$1,126,867,000.
FAMILY HOUSING, DEFENSE-WIDE
For expenses of family housing for the activities and
agencies of the Department of Defense (other than the
military departments) for construction, including acquisi-
tion, replacement, addition, expansion, extension and al-
teration, and for operation and maintenance, leasing, and
minor construction, as authorized by law, as follows: for
Construction, $4,950,000, to remain available until Sep-
tember 30, 2002; for Operation and Maintenance,
$32,724,000; in all $37,674,000.
BASE REALIGNMENT AND CLOSURE ACCOUNT, PART II
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
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(Public Law 101–510), $116,754,000, to remain available
until 
expended: 
Provided, 
That 
not 
more 
than
$105,224,000 of the funds appropriated herein shall be
available solely for environmental restoration, unless the
Secretary of Defense determines that additional obliga-
tions are necessary for such purposes and notifies the
Committees on Appropriations of both Houses of Congress
of his determination and the reasons therefor.
BASE REALIGNMENT AND CLOSURE ACCOUNT, PART III
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), $768,702,000, to remain available
until 
expended: 
Provided, 
That 
not 
more 
than
$398,499,000 of the funds appropriated herein shall be
available solely for environmental restoration, unless the
Secretary of Defense determines that additional obliga-
tions are necessary for such purposes and notifies the
Committees on Appropriations of both Houses of Congress
of his determination and the reasons therefor.
BASE REALIGNMENT AND CLOSURE ACCOUNT, PART IV
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), $1,175,398,000, to remain avail-
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able until expended: Provided, That not more than
$353,604,000 of the funds appropriated herein shall be
available solely for environmental restoration, unless the
Secretary of Defense determines that additional obliga-
tions are necessary for such purposes and notifies the
Committees on Appropriations of both Houses of Congress
of his determination and the reasons therefor.
GENERAL PROVISIONS
SEC. 101. None of the funds appropriated in Military
Construction Appropriations Acts shall be expended for
payments under a cost-plus-a-fixed-fee contract for work,
where cost estimates exceed $25,000, to be performed
within the United States, except Alaska, without the spe-
cific approval in writing of the Secretary of Defense set-
ting forth the reasons therefor: Provided, That the fore-
going shall not apply in the case of contracts for environ-
mental restoration at an installation that is being closed
or realigned where payments are made from a Base Re-
alignment and Closure Account.
SEC. 102. Funds appropriated to the Department of
Defense for construction shall be available for hire of pas-
senger motor vehicles.
SEC. 103. Funds appropriated to the Department of
Defense for construction may be used for advances to the
Federal Highway Administration, Department of Trans-
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portation, for the construction of access roads as author-
ized by section 210 of title 23, United States Code, when
projects authorized therein are certified as important to
the national defense by the Secretary of Defense.
SEC. 104. None of the funds appropriated in this Act
may be used to begin construction of new bases inside the
continental United States for which specific appropria-
tions have not been made.
SEC. 105. No part of the funds provided in Military
Construction Appropriations Acts shall be used for pur-
chase of land or land easements in excess of 100 per cen-
tum of the value as determined by the Army Corps of En-
gineers or the Naval Facilities Engineering Command, ex-
cept (1) where there is a determination of value by a Fed-
eral court, or (2) purchases negotiated by the Attorney
General or his designee, or (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
Construction Appropriations Acts shall be used to (1) ac-
quire land, (2) provide for site preparation, or (3) install
utilities for any family housing, except housing for which
funds have been made available in annual Military Con-
struction Appropriations Acts.
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SEC. 107. None of the funds appropriated in Military
Construction Appropriations Acts for minor construction
may be used to transfer or relocate any activity from one
base or installation to another, without prior notification
to the Committees on Appropriations.
SEC. 108. No part of the funds appropriated in Mili-
tary Construction Appropriations Acts may be used for
the procurement of steel for any construction project or
activity for which American steel producers, fabricators,
and manufacturers have been denied the opportunity to
compete for such steel procurement.
SEC. 109. None of the funds available to the Depart-
ment of Defense for military construction or family hous-
ing during the current fiscal year may be used to pay real
property taxes in any foreign nation.
SEC. 110. None of the funds appropriated in Military
Construction Appropriations Acts may be used to initiate
a new installation overseas without prior notification to
the Committees on Appropriations.
SEC. 111. None of the funds appropriated in Military
Construction Appropriations Acts may be obligated for ar-
chitect and engineer contracts estimated by the Govern-
ment to exceed $500,000 for projects to be accomplished
in Japan, in any NATO member country, or in countries
bordering the Arabian Gulf, unless such contracts are
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awarded to United States firms or United States firms
in joint venture with host nation firms.
SEC. 112. None of the funds appropriated in Military
Construction Appropriations Acts for military construc-
tion in the United States territories and possessions in the
Pacific and on Kwajalein Atoll, or in countries bordering
the Arabian Gulf, may be used to award any contract esti-
mated by the Government to exceed $1,000,000 to a for-
eign contractor: Provided, That this section shall not be
applicable to contract awards for which the lowest respon-
sive and responsible bid of a United States contractor ex-
ceeds the lowest responsive and responsible bid of a for-
eign contractor by greater than 20 per centum: 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 submit-
ted by a Marshallese contractor.
SEC. 113. The Secretary of Defense is to inform the
appropriate Committees of Congress, including the Com-
mittees on Appropriations, of the plans and scope of any
proposed military exercise involving United States person-
nel thirty days prior to its occurring, if amounts expended
for construction, either temporary or permanent, are an-
ticipated to exceed $100,000.
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SEC. 114. Not more than 20 per centum of the appro-
priations in Military Construction Appropriations Acts
which are limited for obligation during the current fiscal
year shall be obligated during the last two months of the
fiscal year.
(TRANSFER OF FUNDS)
SEC. 115. Funds appropriated to the Department of
Defense for construction in prior years shall be available
for construction authorized for each such military depart-
ment 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 ex-
pired or lapsed for obligation, expired or lapsed funds may
be used to pay the cost of associated supervision, inspec-
tion, 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 ap-
propriated if the funds obligated for such project (1) are
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obligated from funds available for military construction
projects, and (2) do not exceed the amount appropriated
for such project, plus any amount by which the cost of
such project is increased pursuant to law.
(TRANSFER OF FUNDS)
SEC. 118. During the five-year period after appro-
priations available to the Department of Defense for mili-
tary construction and family housing operation and main-
tenance and construction have expired for obligation, upon
a determination that such appropriations will not be nec-
essary for the liquidation of obligations or for making au-
thorized adjustments to such appropriations for obliga-
tions incurred during the period of availability of such ap-
propriations, unobligated balances of such appropriations
may be transferred into the appropriation ‘‘Foreign Cur-
rency Fluctuations, Construction, Defense’’ to be merged
with and to be available for the same time period and for
the same purposes as the appropriation to which trans-
ferred.
SEC. 119. The Secretary of Defense is to provide the
Committees on Appropriations of the Senate and the
House of Representatives with an annual report by Feb-
ruary 15, containing details of the specific actions pro-
posed to be taken by the Department of Defense during
the current fiscal year to encourage other member nations
of the North Atlantic Treaty Organization, Japan, Korea,
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and United States allies bordering the Arabian Gulf to as-
sume a greater share of the common defense burden of
such nations and the United States.
(TRANSFER OF FUNDS)
SEC. 120. During the current fiscal year, in addition
to any other transfer authority available to the Depart-
ment of Defense, proceeds deposited to the Department
of Defense Base Closure Account established by section
207(a)(1) of the Defense Authorization Amendments and
Base Closure and Realignment Act (Public Law 100–526)
pursuant to section 207(a)(2)(C) of such Act, may be
transferred to the account established by section
2906(a)(1) of the Department of Defense Authorization
Act, 1991, to be merged with, and to be available for the
same purposes and the same time period as that account.
SEC. 121. No funds appropriated pursuant to this
Act may be expended by an entity unless the entity agrees
that in expending the assistance the entity will comply
with sections 2 through 4 of the Act of March 3, 1933
(41 U.S.C. 10a–10c, popularly known as the ‘‘Buy Amer-
ican Act’’).
SEC. 122. (a) In the case of any equipment or prod-
ucts that may be authorized to be purchased with financial
assistance provided under this Act, it is the sense of the
Congress that entities receiving such assistance should, in
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expending the assistance, purchase only American-made
equipment and products.
(b) In providing financial assistance under this Act,
the Secretary of the Treasury shall provide to each recipi-
ent of the assistance a notice describing the statement
made in subsection (a) by the Congress.
(TRANSFER OF FUNDS)
SEC. 123. During the current fiscal year, in addition
to any other transfer authority available to the Depart-
ment of Defense, amounts may be transferred from the
account established by section 2906(a)(1) of the Depart-
ment of Defense Authorization Act, 1991, to the fund es-
tablished by section 1013(d) of the Demonstration Cities
and Metropolitan Development Act of 1966 (42 U.S.C.
3374) to pay for expenses associated with the Home-
owners Assistance Program. Any amounts transferred
shall be merged with and be available for the same pur-
poses and for the same time period as the fund to which
transferred.
SEC. 124. Notwithstanding any other provision of
law, appropriations made available to the Department of
Defense Family Housing Improvement Fund shall be the
sole source of funds available for planning, administrative,
and oversight costs incurred by the Department of De-
fense relating to military family housing initiatives and
military unaccompanied housing initiatives undertaken
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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,
military unaccompanied housing, and supporting facilities.
SEC. 125. (a) In addition to any reductions required
by this Act, the following funds are hereby reduced from
the following accounts in this Act in the specified
amounts—
‘‘Military Construction, Army’’, $2,000,000;
‘‘Military Construction, Navy’’, $3,000,000;
‘‘Military Construction, Air Force’’, $4,000,000;
‘‘Military 
Construction, 
Defense-wide’’,
$5,000,000;
‘‘NATO 
Security 
Investment 
Program’’,
$1,000,000;
‘‘Base Realignment and Closure Account, Part
III’’, $8,000,000;
‘‘Base Realignment and Closure Account, Part
IV’’, $8,000,000.
(b) The reductions taken pursuant to subsection (a)
shall be applied on a pro-rata basis by project and activity.
SEC. 126. Notwithstanding any other provision of law,
from the funds appropriated in this Act for Military Con-
struction, Army, the Secretary of the Army is directed to
complete, using an Unspecified Minor Construction project,
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the Special Forces (Diver) Training Facility at Key West
Naval Air Station, Florida, as authorized in the Military
Construction Authorization Act for Fiscal Years 1990 and
1991 (Public Law 101–189).
SEC. 127. (a) LEASE OF PROPERTY AUTHORIZED.—
(1) Notwithstanding any other provision of law, the Sec-
retary of the Navy (hereinafter referred to as the ‘‘Sec-
retary’’) may lease, without monetary consideration, to the
city and county of Honolulu (hereinafter referred to as the
‘‘city’’) a parcel of land consisting of approximately 300
acres on Waipio Peninsula, Honolulu, Hawaii (hereinafter
referred to as the ‘‘parcel’’).
(b) RELATED EASEMENT.—The Secretary may also
grant, without monetary consideration, an easement on,
over, under and across that certain real property known
as Waipio Point Access Road for access to and operation
of the parcel.
(c) TERM.—The term of the lease and easement author-
ized under this section shall be fifty (50) years.
(d) CONDITION OF USE.—The lease and easement au-
thorized under subsections (a) and (b) shall be subject to
the following conditions:
(1) The city shall use the parcel for development
and operation of a public soccer park and related rec-
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reational facilities, and for other civic and public
purposes as may be approved by the Secretary.
(2) Facilities developed on the parcel shall be for
public use and benefit; however, usage fees may be
charged to defray facility operating and maintenance
costs.
(3) The city shall comply with all explosive safe-
ty criteria affecting the city’s use of the lease and
easement areas, as established by the Secretary in
connection with the explosive safety areas supporting
the ordinance handling wharves located at West Loch
Branch, Naval Magazine, Lualualei, Hawaii.
(4) The city shall, at its own cost and to the sat-
isfaction of the Secretary, make any and all improve-
ments to Waipio Point Access Road which the city de-
termines are necessary to provide onstreet parking
along said road, and adequate access to the parcel, in-
cluding, but not limited to, any necessary appur-
tenant utility and drainage improvements. During
the term of said easement, the cost of maintenance, re-
pair and replacement of said road and improvements
shall be borne by the city.
(5) The city shall install a non-potable irriga-
tion water delivery system to service the parcel, and
in doing so, the city shall size transmission lines ca-
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pable of delivering approximately 2.5 million addi-
tional gallons of irrigation water per day to agricul-
tural lands on Waipio Peninsula under the control of
the Secretary.
(e) TERMINATION.—If the Secretary determines at any
time that the parcel is not being used for a purpose specified
in subsection (d)(1), the lease and easement authorized
under subsections (a) and (b) may be terminated, and all
right, title, and interest in and to such real property, in-
cluding any improvements thereon, shall revert to the Unit-
ed States, and the United States shall have the right of im-
mediate entry thereon.
(f) EFFECT OF EXPIRATION OF LEASE.—Unless other-
wise specifically provided for in this section, at the end of
the lease and easement term, the city shall either convey,
without reimbursement, to the United States, all right, title,
and interest of the city in and to the improvements subject
to said lease and easement, or restore, to the extent prac-
ticable, the lease and easement areas to the satisfaction of
the Secretary.
(g) DESCRIPTION OF PROPERTY.—The exact acreage
and legal description of the property subject to this section
shall be determined by a survey satisfactory to the Sec-
retary. The cost of such survey shall be borne by the city.
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(h) ADDITIONAL TERMS AND CONDITIONS.—The Sec-
retary may require such additional terms and conditions
in connection with the lease and easement to be granted
under this section as the Secretary considers appropriate
to protect the interests of the United States.
SEC. 128. (a) Not later than 60 days before issuing
any solicitation for a contract with the private sector for
military family housing or military unaccompanied hous-
ing, the Secretary of the military department concerned
shall submit to the congressional defense committees the no-
tice 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 installation; 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
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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
Defense Subcommittee, Committee on Appropriations
of the Senate.
(2) The Committee on National Security and
The National Security Subcommittee, Committee on
Appropriations of the House of Representatives.
This Act may be cited as the ‘‘Military Construction
Appropriations Act, 1998’’.
Passed the House of Representatives July 8, 1997.
Attest:
Clerk.