In the Senate of the United States,
September 26, 2001.
Resolved, That the bill from the House of Representa-
tives (H.R. 2904) entitled ‘‘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, 2002, and for other purposes.’’, do
pass with the following
AMENDMENT:
Strike out all after the enacting clause and insert:
That the following sums are appropriated, out of any
money in the Treasury not otherwise appropriated, for
military construction, family housing, and base realign-
ment and closure functions administered by the Department
of Defense, for the fiscal year ending September 30, 2002,
and for other purposes, namely:
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MILITARY CONSTRUCTION, ARMY
(INCLUDING RESCISSION)
For acquisition, construction, installation, and equip-
ment of temporary or permanent public works, military in-
stallations, 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, $1,668,957,000, to remain
available until September 30, 2006: Provided, That of this
amount, not to exceed $176,184,000 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 Congress of his deter-
mination and the reasons therefor: Provided further, That
of the funds appropriated for ‘‘Military Construction,
Army’’ under division A of Public Law 106–246,
$26,400,000 are rescinded.
MILITARY CONSTRUCTION, NAVY
(INCLUDING RESCISSION)
For acquisition, construction, installation, and equip-
ment of temporary or permanent public works, naval in-
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stallations, facilities, and real property for the Navy as cur-
rently authorized by law, including personnel in the Naval
Facilities Engineering Command and other personal serv-
ices necessary for the purposes of this appropriation,
$1,148,633,000, to remain available until September 30,
2006: Provided, That of this amount, not to exceed
$37,332,000 shall be available for study, planning, design,
architect and engineer services, as authorized by law, unless
the Secretary of Defense determines that additional obliga-
tions are necessary for such purposes and notifies the Com-
mittees 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 division A of Public Law 106–246,
$19,588,000 are rescinded.
MILITARY CONSTRUCTION, AIR FORCE
(INCLUDING RESCISSION)
For acquisition, construction, installation, and equip-
ment of temporary or permanent public works, military in-
stallations, facilities, and real property for the Air Force
as currently authorized by law, $1,148,269,000, to remain
available until September 30, 2006: Provided, That of this
amount, not to exceed $83,420,000 shall be available for
study, planning, design, architect and engineer services, as
authorized by law, unless the Secretary of Defense deter-
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mines that additional obligations are necessary for such
purposes and notifies the Committees on Appropriations of
both Houses of Congress of his determination and the rea-
sons therefor: Provided further, That of the funds appro-
priated for ‘‘Military Construction, Air Force’’ under pre-
vious Military Construction Acts, $4,000,000 are rescinded.
MILITARY CONSTRUCTION, DEFENSE-WIDE
(INCLUDING TRANSFER AND RESCISSIONS OF FUNDS)
For acquisition, construction, installation, and equip-
ment of temporary or permanent public works, installa-
tions, facilities, and real property for activities and agen-
cies of the Department of Defense (other than the military
departments), 
as 
currently 
authorized 
by 
law,
$881,058,000, 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 De-
fense 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
$88,496,000 shall be available for study, planning, design,
architect and engineer services, as authorized by law, unless
the Secretary of Defense determines that additional obliga-
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tions are necessary for such purposes and notifies the Com-
mittees on Appropriations of both Houses of Congress of his
determination and the reasons therefor: Provided further,
That of the funds appropriated for ‘‘Military Construction,
Defense-wide’’ under division A of Public Law 106–246,
$55,030,000 are rescinded: Provided further, That of the
funds appropriated for ‘‘Military Construction, Defense-
wide’’ under division B of Public Law 106–246,
$10,250,000 are rescinded: Provided further, That of the
funds appropriated for ‘‘Military Construction, Defense-
Wide’’ 
under 
previous 
Military 
Construction 
Acts,
$4,000,000 are rescinded.
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 1803 of title 10,
United States Code, and Military Construction Authoriza-
tion Acts, $378,549,000, to remain available until Sep-
tember 30, 2006.
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 1803 of title 10, United
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States Code, and Military Construction Authorization Acts,
$222,767,000, to remain available until September 30,
2006.
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
1803 of title 10, United States Code, and Military Con-
struction Authorization Acts, $111,404,000, to remain
available until September 30, 2006.
MILITARY CONSTRUCTION, NAVAL RESERVE
(INCLUDING RESCISSION)
For construction, acquisition, expansion, rehabilita-
tion, and conversion of facilities for the training and ad-
ministration of the reserve components of the Navy and Ma-
rine Corps as authorized by chapter 1803 of title 10, United
States Code, and Military Construction Authorization Acts,
$33,641,000, to remain available until September 30, 2006:
Provided, That of the funds appropriated for ‘‘Military
Construction, Naval Reserve’’ under division A of Public
Law 106–246, $925,000 are rescinded.
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
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chapter 1803 of title 10, United States Code, and Military
Construction Authorization Acts, $53,732,000, 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 Pro-
gram for the acquisition and construction of military facili-
ties and installations (including international military
headquarters) and for related expenses for the collective de-
fense 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, 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, $312,742,000, to remain available until September 30,
2006; for Operation and Maintenance, and for debt pay-
ment, $1,108,991,000; in all $1,421,733,000.
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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, leas-
ing, minor construction, principal and interest charges,
and insurance premiums, as authorized by law, as follows:
for Construction, $312,600,000, to remain available until
September 30, 2006; for Operation and Maintenance, and
for debt payment, $918,095,000; in all $1,230,695,000.
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, $550,703,000, to remain available until September 30,
2006; for Operation and Maintenance, and for debt pay-
ment, $869,121,000; in all $1,419,824,000.
FAMILY HOUSING, DEFENSE-WIDE
For expenses of family housing for the activities and
agencies of the Department of Defense (other than the mili-
tary departments) for construction, including acquisition,
replacement, addition, expansion, extension and alteration,
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and for operation and maintenance, leasing, and minor
construction, as authorized by law, as follows: for Construc-
tion, $250,000 to remain available until September 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 Im-
provement Fund, $2,000,000, to remain available until ex-
pended, 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 Act of 1966, as amended (42 U.S.C. 3374)
$10,119,000, to remain available until expended.
BASE REALIGNMENT AND CLOSURE ACCOUNT, PART IV
For deposit into the Department of Defense Base Clo-
sure Account 1990 established by section 2906(a)(1) of the
Department of Defense Authorization Act, 1991 (Public
Law 101–510), $682,200,000, to remain available until ex-
pended.
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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 con-
struction, where cost estimates exceed $25,000, to be per-
formed within the United States, except Alaska, without the
specific approval in writing of the Secretary of Defense set-
ting forth the reasons therefor.
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-
portation, 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
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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 des-
ignee; (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.
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 manu-
facturers have been denied the opportunity to compete for
such steel procurement.
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SEC. 109. None of the funds available to the Depart-
ment of Defense for military construction or family housing
during the current fiscal year may be used to pay real prop-
erty 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 Government
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 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 construction
in the United States territories and possessions in the Pa-
cific and on Kwajalein Atoll, or in countries bordering the
Arabian Gulf, may be used to award any contract estimated
by the Government to exceed $1,000,000 to a foreign con-
tractor: Provided, That this section shall not be applicable
to contract awards for which the lowest responsive and re-
sponsible bid of a United States contractor exceeds the low-
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est responsive and responsible bid of a foreign contractor
by greater than 20 percent: Provided further, That this sec-
tion shall not apply to contract awards for military con-
struction on Kwajalein Atoll for which the lowest responsive
and responsible bid is submitted by a Marshallese con-
tractor.
SEC. 113. The Secretary of Defense is to inform the
appropriate committees of Congress, including the Commit-
tees on Appropriations, of the plans and scope of any pro-
posed military exercise involving United States personnel
30 days prior to its occurring, if amounts expended for con-
struction, either temporary or permanent, are anticipated
to exceed $100,000.
SEC. 114. Not more than 20 percent of the appropria-
tions 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 depart-
ment by the authorizations enacted into law during the cur-
rent 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
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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 de-
fense 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 in-
creased pursuant to law.
(TRANSFER OF FUNDS)
SEC. 118. During the 5-year period after appropria-
tions available to the Department of Defense for military
construction and family housing operation and mainte-
nance 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 obligations
incurred during the period of availability of such appro-
priations, unobligated balances of such appropriations may
be transferred into the appropriation ‘‘Foreign Currency
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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 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 fis-
cal year to encourage other member nations of the North
Atlantic Treaty Organization, Japan, Korea, and United
States allies bordering the Arabian Gulf 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 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 De-
fense Authorization Act, 1991, to be merged with, and to
be available for the same purposes and the same time period
as that account.
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(TRANSFER OF FUNDS)
SEC. 121. Subject to 30 days prior notification to the
Committees on Appropriations, such additional amounts as
may be determined by the Secretary of Defense may be
transferred to the Department of Defense Family Housing
Improvement Fund from amounts appropriated for con-
struction 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 sec-
tion 502(5) of the Congressional Budget Act of 1974, of di-
rect loans or loan guarantees issued by the Department of
Defense pursuant to the provisions of subchapter IV of chap-
ter 169, title 10, United States Code, pertaining to alter-
native means of acquiring and improving military family
housing and supporting facilities.
SEC. 122. 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. 123. (a) Not later than 60 days before issuing
any solicitation for a contract with the private sector for
military family housing the Secretary of the military de-
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partment concerned shall submit to the congressional de-
fense 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 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
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.
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(TRANSFER OF FUNDS)
SEC. 124. 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 De-
fense Authorization Act, 1991, to the fund established by
section 1013(d) of the Demonstration Cities and Metropoli-
tan Development Act of 1966 (42 U.S.C. 3374) to pay for
expenses associated with the Homeowners Assistance Pro-
gram. Any amounts transferred shall be merged with and
be available for the same purposes and for the same time
period as the fund to which transferred.
SEC. 125. Notwithstanding this or any other provision
of law, funds appropriated in Military Construction Ap-
propriations Acts for operations and maintenance of family
housing shall be the exclusive source of funds for repair and
maintenance of all family housing units, including flag and
general officer quarters: Provided, That not more than
$35,000 per unit may be spent annually for the mainte-
nance and repair of any general or flag officer quarters
without 30 days advance prior notification of the appro-
priate committees of Congress: Provided further, That the
Under Secretary of Defense (Comptroller) is to report annu-
ally to the Committees on Appropriations all operations
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and maintenance expenditures for each individual flag and
general officer quarters for the prior fiscal year.
SEC. 126. In addition to the amounts provided in Pub-
lic Law 107–20, of the funds appropriated under the head-
ing ‘‘Military Construction, Air Force’’ in this Act,
$8,000,000 is to remain available until September 30, 2005:
Provided, That notwithstanding any other provision of law,
such funds may be obligated or expended to carry out plan-
ning and design and military construction activities at the
Masirah Island Airfield in Oman, not otherwise authorized
by law.
SEC. 127. Not later than 90 days after the enactment
of this bill, the Secretary of Defense shall submit to the con-
gressional defense committees a master plan for the environ-
mental remediation of Hunters Point Naval Shipyard,
California. The plan shall identify an aggregate cost esti-
mate for the entire project as well as cost estimates for indi-
vidual parcels. The plan shall also include a detailed clean-
up schedule and an analysis of whether the Department is
meeting legal requirements and community commitments.
Following submission of the initial report, the Department
shall submit semi-annual progress reports to the congres-
sional defense committees.
SEC. 128. Of the funds available under the heading
‘‘Military Construction, Defense-wide’’, for the Pine Bluff
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Ammunition Demilitarization Facility (Phase VI) the De-
partment may spend up to $300,000 to conduct a feasibility
study of the requirement for a defense road at Pine Bluff
Arsenal, Arkansas.
This Act may be cited as the ‘‘Military Construction
Appropriations Act, 2002’’.
Attest:
Secretary.