H. R. 4200—312
‘‘(c) MILITARY CONSTRUCTION REQUIREMENTS.—As part of the
budget materials submitted to Congress in connection with the
submission of the budget for a fiscal year pursuant to section
1105 of title 31, but in no case later than March 15 of each
year, the Secretary of Defense shall submit a report, in both classi-
fied and unclassified form, describing—
‘‘(1) the location and results of the vulnerability assess-
ments conducted under subsection (b) during the most recently
completed fiscal year;
‘‘(2) the military construction requirements anticipated to
be necessary during the period covered by the then-current
future-years defense plan under section 221 of this title to
improve the physical security of military installations; and
‘‘(3) the extent to which funds to meet those requirements
are not requested in the Department of Defense budget for
the fiscal year for which the budget is submitted.’’.
(2) The table of sections at the beginning of subchapter III
of chapter 169 of such title is amended by inserting after the
item relating to section 2858 the following new item:
‘‘2859. Construction requirements related to antiterrorism and force protection.’’.
(b) SPECIAL REQUIREMENT FOR 2006 REPORT.—In the case of
the report required to be submitted in 2006 under section 2859(c)
of title 10, United States Code, as added by subsection (a), the
Secretary of Defense shall include a certification by the Secretary
that since September 11, 2001, assessments regarding the vulner-
ability of military installations to terrorist attack have been under-
taken for all major military installations. The Secretary shall
indicate the basis by which the Secretary differentiated between
major and nonmajor military installations for purposes of making
the certification.
SEC. 2805. REPEAL OF LIMITATIONS ON USE OF ALTERNATIVE
AUTHORITY FOR ACQUISITION AND IMPROVEMENT OF
MILITARY HOUSING.
(a) REPEAL
OF BUDGET AUTHORITY LIMITATION
ON USE
OF
AUTHORITY.—Section 2883 of title 10, United States Code, is
amended by striking subsection (g).
(b) REPEAL OF TERMINATION DATE ON USE OF AUTHORITY.—
(1) Section 2885 of such title is repealed.
(2) The table of sections at the beginning of subchapter IV
of chapter 169 of such title is amended by striking the item relating
to section 2885.
SEC. 2806. ADDITIONAL REPORTING REQUIREMENTS RELATING TO
ALTERNATIVE 
AUTHORITY 
FOR 
ACQUISITION 
AND
IMPROVEMENT OF MILITARY HOUSING.
(a) PROJECT REPORTS.—Paragraph (2) of subsection (a) of sec-
tion 2884 of title 10, United States Code, is amended to read
as follows:
‘‘(2) For each proposed contract, conveyance, or lease described
in paragraph (1), the report required by such paragraph shall
include the following:
‘‘(A) A description of the contract, conveyance, or lease,
including a summary of the terms of the contract, conveyance,
or lease.
‘‘(B) A description of the authorities to be utilized in
entering into the contract, conveyance, or lease and the
H. R. 4200—313
intended method of participation of the United States in the
contract, conveyance, or lease, including a justification of the
intended method of participation.
‘‘(C) A statement of the scored cost of the contract, convey-
ance, or lease, as determined by the Office of Management
and Budget.
‘‘(D) A statement of the United States funds required for
the contract, conveyance, or lease and a description of the
source of such funds.
‘‘(E) An economic assessment of the life cycle costs of the
contract, conveyance, or lease, including an estimate of the
amount of United States funds that would be paid over the
life of the contract, conveyance, or lease from amounts derived
from payments of government allowances, including the basic
allowance for housing under section 403 of title 37, if the
housing affected by the project were fully occupied by military
personnel over the life of the contract, conveyance, or lease.’’.
(b) ANNUAL
REPORTS.—Subsection (b) of such section is
amended—
(1) by redesignating paragraph (5) as paragraph (6); and
(2) by inserting after paragraph (4) the following new para-
graph (5):
‘‘(5) A report setting forth, by armed force—
‘‘(A) an estimate of the amounts of basic allowance
for housing under section 403 of title 37 that will be paid,
during the current fiscal year and the fiscal year for which
the budget is submitted, to members of the armed forces
living in housing provided under the authorities in this
subchapter; and
‘‘(B) the number of units of military family housing
and military unaccompanied housing upon which the esti-
mate under subparagraph (A) for the current fiscal year
and the next fiscal year is based.’’.
SEC. 2807. TEMPORARY AUTHORITY TO ACCELERATE DESIGN EFFORTS
FOR MILITARY CONSTRUCTION PROJECTS CARRIED OUT
USING DESIGN-BUILD SELECTION PROCEDURES.
Section 2305a of title 10, United States Code, is amended
by adding at the end the following new subsection:
‘‘(f) 
SPECIAL
AUTHORITY
FOR
MILITARY
CONSTRUCTION
PROJECTS.—(1) The Secretary of a military department may use
funds available to the Secretary under section 2807(a) or 18233(e)
of this title to accelerate the design effort in connection with a
military construction project for which the two-phase selection
procedures described in subsection (c) are used to select the con-
tractor for both the design and construction portion of the project
before the project is specifically authorized by law and before funds
are appropriated for the construction portion of the project. Notwith-
standing the limitations contained in such sections, use of such
funds for the design portion of a military construction project may
continue despite the subsequent authorization of the project. The
advance notice requirement of section 2807(b) of this title shall
continue to apply whenever the estimated cost of the design portion
of the project exceeds the amount specified in such section.
‘‘(2) Any military construction contract that provides for an
accelerated design effort, as authorized by paragraph (1), shall
include as a condition of the contract that the liability of the
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United States in a termination for convenience may not exceed
the actual costs incurred as of the termination date.
‘‘(3) For each fiscal year during which the authority provided
by this subsection is in effect, the Secretary of a military department
may select not more than two military construction projects to
include the accelerated design effort authorized by paragraph (1)
for each armed force under the jurisdiction of the Secretary. To
be eligible for selection under this subsection, a request for the
authorization of the project, and for the authorization of appropria-
tions for the project, must have been included in the annual budget
of the President for a fiscal year submitted to Congress under
section 1105(a) of title 31.
‘‘(4) Not later than March 1, 2007, the Secretary of Defense
shall submit to the congressional defense committees a report evalu-
ating the usefulness of the authority provided by this subsection
in expediting the design and construction of military construction
projects. The authority provided by this subsection expires Sep-
tember 30, 2007, except that, if the report required by this para-
graph is not submitted by March 1, 2007, the authority shall
expire on that date.’’.
SEC. 2808. NOTIFICATION THRESHOLDS AND REQUIREMENTS FOR
EXPENDITURES OR CONTRIBUTIONS FOR ACQUISITION
OF FACILITIES FOR RESERVE COMPONENTS.
(a) AUTHORITY
TO
CARRY
OUT
SMALL
PROJECTS.—Section
18233a of title 10, United States Code, is amended to read as
follows:
‘‘§ 18233a. Notice and wait requirements for certain projects
‘‘(a) CONGRESSIONAL NOTIFICATION.—Except as provided in sub-
section (b), an expenditure or contribution in an amount in excess
of $750,000 may not be made under section 18233 of this title
for any facility until—
‘‘(1) the Secretary of Defense has notified the congressional
defense committees of the location, nature, and estimated cost
of the facility; and
‘‘(2) a period of 21 days has elapsed after the notification
has been received by those committees or, if over sooner, a
period of 14 days has elapsed after the date on which a copy
of the notification is provided in an electronic medium pursuant
to section 480 of this title.
‘‘(b) CERTAIN EXPENDITURES OR CONTRIBUTIONS EXEMPTED.—
Subsection (a) does not apply to expenditures or contributions for
the following:
‘‘(1) Facilities acquired by lease.
‘‘(2) A project for a facility that has been authorized by
Congress, if the location and purpose of the facility are the
same as when authorized and if, based upon bids received—
‘‘(A) the scope of work of the project, as approved
by Congress, is not proposed to be reduced by more than
25 percent; and
‘‘(B) the current working estimate of the cost of the
project does not exceed the amount approved for the project
by more than the lesser of the following:
‘‘(i) 25 percent.
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‘‘(ii) 200 percent of the amount specified by section
2805(a)(2) of this title as the maximum amount for
a minor military construction project.
‘‘(3) A repair project (as that term is defined in section
2811(e) of this title) that costs less than $7,500,000.’’.
(b) RECODIFICATION OF LIMITED AUTHORITY TO USE OPERATION
AND MAINTENANCE FUNDS.—Chapter 1803 of such title is amended
by inserting after section 18233a the following new section:
‘‘§ 18233b. Authority to carry out small projects with oper-
ation and maintenance funds
‘‘Under such regulations as the Secretary of Defense may pre-
scribe, the Secretary may expend, from appropriations available
for operation and maintenance, amounts necessary to carry out
any project authorized under section 18233(a) of this title that
costs not more than—
‘‘(1) the amount specified in section 2805(c)(1)(A) of this
title, in the case of a project intended solely to correct a defi-
ciency that is life-threatening, health-threatening, or safety-
threatening; or
‘‘(2) the amount specified in section 2805(c)(1)(B) of this
title, in the case of any other project.’’.
(c) CLERICAL AMENDMENT.—The table of sections at the begin-
ning of chapter 1803 of such title is amended by striking the
item relating to section 18233a and inserting the following new
items:
‘‘18233a. Notice and wait requirements for certain projects.
‘‘18233b. Authority to carry out small projects with operation and maintenance
funds.’’.
SEC. 2809. AUTHORITY TO EXCHANGE RESERVE COMPONENT FACILI-
TIES TO ACQUIRE REPLACEMENT FACILITIES.
(a) EXCHANGE AUTHORITY.—(1) Chapter 1803 of title 10, United
States Code, is amended by adding at the end the following new
section:
‘‘§ 18240. Acquisition of facilities by exchange
‘‘(a) EXCHANGE AUTHORITY.—In addition to the acquisition
authority provided by section 18233 of this title, the Secretary
of Defense may authorize the Secretary of a military department
to acquire a facility, or addition to an existing facility, needed
to satisfy military requirements for a reserve component by carrying
out an exchange of an existing facility under the control of that
Secretary through an agreement with a State, local government,
local authority, or private entity.
‘‘(b) FACILITIES ELIGIBLE FOR EXCHANGE.—Only a facility of
a reserve component that is not excess property (as defined in
section 102(3) of title 40) may be exchanged using the authority
provided by this section.
‘‘(c) EQUAL VALUE EXCHANGE.—In any exchange carried out
using the authority provided by this section, the value of the
replacement facility, or addition to an existing facility, acquired
by the United States shall be at least equal to the fair market
value of the facility conveyed by the United States under the
agreement. If the values are unequal, the values may not be equal-
ized by any payment of cash consideration by either party to the
agreement.