Department of Defense Appropriations Act, 2003
PL 107-248 (H.R.5010), enacted 10/23/2002

PUBLIC LAW 107-248—OCT. 23, 2002 
116 STAT. 1519 
Public Law 107-248 
107th Congress 
An Act 
Making appropriations for the Department of Defense for the fiscal year ending 
Oct. 23, 2002 
September 30, 2003, and for other purposes. 
[H R 5010] 
Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, That the Department of 
following sums are appropriated, out of any money in the Treasury Defense 
not otherwise appropriated, for the fiscal year ending September Acf^2003^*^°^ 
30, 2003, for military functions administered by the Department 
of Defense, and for other purposes, namely: 
TITLE I 
MILITARY PERSONNEL 
MILITARY PERSONNEL, ARMY 
For pay, allowances, individual clothing, subsistence, interest 
on deposits, gratuities, permanent 
change of station 
travel 
(including all expenses thereof for organizational movements), and 
expenses of temporary duty travel between permanent duty sta-
tions, for members of the Army on active duty (except members 
of reserve components provided for elsewhere), cadets, and aviation 
cadets; and for payments pursuant to section 156 of Public Law 
97-377, as amended (42 U.S.C. 402 note), and to the Department 
of Defense Military Retirement Fund, $26,855,017,000. 
MILITARY PERSONNEL, NAVY 
For pay, allowances, individual clothing, subsistence, interest 
on deposits, gratuities, permanent 
change of station 
travel 
(including all expenses thereof for organizational movements), and 
expenses of temporary duty travel between permanent duty sta-
tions, for members of the Navy on active duty (except members 
of the Reserve provided for elsewhere), midshipmen, and aviation 
cadets; and for pajnnents pursuant to section 156 of Public Law 
97-377, as amended (42 U.S.C. 402 note), and to the Department 
of Defense Military Retirement Fund, $21,927,628,000. 
MILITARY PERSONNEL, MARINE CORPS 
For pay, allowances, individual clothing, subsistence, interest 
on deposits, gratuities, permanent 
change of station 
travel 
(including all expenses thereof for organizational movements), and 
expenses of temporary duty travel between permanent duty sta-
tions, for members of the Marine Corps on active duty (except 
116 STAT. 1520 
PUBLIC LAW 107-248—OCT. 23, 2002 
members of the Reserve provided for elsewhere); and for payments 
pursuant to section 156 of PubHc Law 97-377, as amended (42 
U.S.C. 402 note), and to the Department of Defense MiUtary Retire-
ment Fund, $8,501,087,000. 
MILITARY PERSONNEL, AIR FORCE 
For pay, allowances, individual clothing, subsistence, interest 
on deposits, gratuities, permanent 
change of station 
travel 
(including all expenses thereof for organizational movements), and 
expenses of temporary duty travel between permanent duty sta-
tions, for members of the Air Force on active duty (except members 
of reserve components provided for elsewhere), cadets, and aviation 
cadets; and for payments pursuant to section 156 of Public Law 
97-377, as amended (42 U.S.C. 402 note), and to the Department 
of Defense Military Retirement Fund, $21,981,277,000. 
RESERVE PERSONNEL, ARMY 
For pay, allowances, clothing, subsistence, gratuities, travel, 
and related expenses for personnel of the Army Reserve on active 
duty under sections 10211, 10302, and 3038 of title 10, United 
States Code, or while serving on active duty under section 12301(d) 
of title 10, United States Code, in connection with performing 
duty specified in section 12310(a) of title 10, United States Code, 
or while undergoing reserve training, or while performing drills 
or equivalent duty or other duty, and for members of the Reserve 
Officers' Training Corps, and expenses authorized by section 16131 
of title 10, United States Code; and for payments to the Department 
of Defense Military Retirement Fund, $3,374,355,000. 
RESERVE PERSONNEL, NAVY 
For pay, allowances, clothing, subsistence, gratuities, travel, 
and related expenses for personnel of the Navy Reserve on active 
duty under section 10211 of title 10, United States Code, or while 
serving on active duty under section 12301(d) of title 10, United 
States Code, in connection with performing duty specified in section 
12310(a) of title 10, United States Code, or while undergoing reserve 
training, or while performing drills or equivalent duty, and for 
members of the Reserve Officers' Training Corps, and expenses 
authorized by section 16131 of title 10, United States Code; and 
for payments to the Department of Defense Military Retirement 
Fund, $1,907,552,000. 
RESERVE PERSONNEL, MARINE CORPS 
For pay, allowances, clothing, subsistence, gratuities, travel, 
and related expenses for personnel of the Marine Corps Reserve 
on active duty under section 10211 of title 10, United States Code, 
or while serving on active duty under section 12301(d) of title 
10, United States Code, in connection with performing duty specified 
in section 12310(a) of title 10, United States Code, or while under-
going reserve training, or while performing drills or equivalent 
duty, and for members of the Marine Corps platoon leaders class, 
and expenses authorized by section 16131 of title 10, United States 
Code; and for payments to the Department of Defense Military 
Retirement Fund, $553,983,000. 
PUBLIC LAW 107-248—OCT. 23, 2002 
116 STAT. 1521 
RESERVE PERSONNEL, AIR FORCE 
For pay, allowances, clothing, subsistence, gratuities, travel, 
and related expenses for personnel of the Air Force Reserve on 
active duty under sections 10211, 10305, and 8038 of title 10, 
United States Code, or while serving on active duty under section 
12301(d) of title 10, United States Code, in connection with per-
forming duty specified in section 12310(a) of title 10, United States 
Code, or while undergoing reserve training, or while performing 
drills or equivalent duty or other duty, and for members of the 
Air Reserve Officers' Training Corps, and expenses authorized by 
section 16131 of title 10, United States Code; and for payments 
to 
the 
Department 
of Defense 
Military 
Retirement 
Fund, 
$1,236,904,000. 
NATIONAL GUARD PERSONNEL, ARMY 
For pay, allowances, clothing, subsistence, gratuities, travel, 
and related expenses for personnel of the Army National Guard 
while on duty under section 10211, 10302, or 12402 of title 10 
or section 708 of title 32, United States Code, or while serving 
on duty under section 12301(d) of title 10 or section 502(f) of 
title 32, United States Code, in connection with performing duty 
specified in section 12310(a) of title 10, United States Code, or 
while undergoing training, or while performing drills or equivalent 
duty or other duty, and expenses authorized by section 16131 of 
title 10, United States Code; and for payments to the Department 
of Defense Military Retirement Fund, $5,114,588,000. 
NATIONAL GUARD PERSONNEL, AIR FORCE 
For pay, allowances, clothing, subsistence, gratuities, travel, 
and related expenses for personnel of the Air National Guard on 
duty under section 10211, 10305, or 12402 of title 10 or section 
708 of title 32, United States Code, or while serving on duty 
under section 12301(d) of title 10 or section 502(f) of title 32, 
United States Code, in connection with performing duty specified 
in section 12310(a) of title 10, United States Code, or while under-
going training, or while performing drills or equivalent duty or 
other duty, and expenses authorized by section 16131 of title 10, 
United States Code; and for payments to the Department of Defense 
Military Retirement Fund, $2,125,161,000. 
TITLE II 
OPERATION AND MAINTENANCE 
OPERATION AND MAINTENANCE, ARMY 
(INCLUDING TRANSFER OF FUNDS) 
For expenses, not otherwise provided for, necessary for the 
operation and maintenance of the Army, as authorized by law; 
and not to exceed $10,818,000 can be used for emergencies and 
extraordinary expenses, to be expended on the approval or authority 
of the Secretary of the Army, and payments may be made on 
his certificate of necessity for confidential military purposes, 
$23,992,082,000: Provided, That of the funds appropriated in this 
116 STAT. 1522 
PUBLIC LAW 107-248—OCT. 23, 2002 
Grants. 
Florida Memorial 
CoUege. 
Grants. 
paragraph, not less than $355,000,000 shall be made available 
only for conventional ammunition care and maintenance: Provided 
further, 
That of the funds made available under this heading, 
$2,500,000 shall be available for Fort Baker, in accordance with 
the terms and conditions as provided under the heading "Operation 
and Maintenance, Army", in Public Law 107-117. 
OPERATION AND MAINTENANCE, NAVY 
For expenses, not otherwise provided for, necessary for the 
operation and maintenance of the Navy and the Marine Corps, 
as authorized by law; and not to exceed $4,415,000 can be used 
for emergencies and extraordinary expenses, to be expended on 
the approval or authority of the Secretary of the Navy, and pay-
ments may be made on his certificate of necessity for confidential 
military purposes, $29,331,526,000. 
OPERATION AND MAINTENANCE, MARINE CORPS 
For expenses, not otherwise provided for, necessary for the 
operation and maintenance of the Marine Corps, as authorized 
by law, $3,585,759,000. 
OPERATION AND MAINTENANCE, AIR FORCE 
For expenses, not otherwise provided for, necessary for the 
operation and maintenance of the Air Force, as authorized by law; 
and not to exceed $7,902,000 can be used for emergencies and 
extraordinary expenses, to be expended on the approval or authority 
of the Secretary of the Air Force, and payments may be made 
on his certificate of necessity for confidential military purposes, 
$27,339,533,000: Provided, That notwithstanding any other provi-
sion of law, that of the funds available under this heading, $750,000 
shall only be available to the Secretary of the Air Force for a 
grant to Florida Memorial College for the purpose of funding 
minority aviation training: Provided farther, That of the amount 
provided under this heading, $2,000,000 may be obligated for the 
deployment of Air Force active and Reserve aircrews that perform 
combat search and rescue operations to operate and evaluate the 
United Kingdom's Royal Air Force EH-101 helicopter, to receive 
training using that helicopter, and to exchange operational tech-
niques and procedures regarding that helicopter. 
OPERATION AND MAINTENANCE, DEFENSE-WIDE 
(INCLUDING TRANSFER OF FUNDS) 
For expenses, not otherwise provided for, necessary for the 
operation and maintenance of activities and agencies of the Depart-
ment of Defense (other than the military departments), as author-
ized by law, $14,773,506,000, of which not to exceed $25,000,000 
may be available for the CINC initiative fund account; and of 
which not to exceed $34,500,000 can be used for emergencies and 
extraordinary expenses, to be expended on the approval or authority 
of the Secretary of Defense, and payments may be made on his 
certificate of necessity for confidential military purposes: Provided, 
That notwithstanding any other provision of law, of the funds 
provided in this Act for Civil Military programs under this heading. 
PUBLIC LAW 107-248—OCT. 23, 2002 
116 STAT. 1523 
$750,000 shall be available for a grant for Outdoor Odyssey, Roaring 
Run, Pennsylvania, to support the Youth Development and Leader-
ship program and Department of Defense STARBASE program: 
Provided further, That none of the funds appropriated or otherwise 
made available by this Act may be used to plan or implement 
the consolidation of a budget or appropriations liaison office of 
the Office of the Secretary of Defense, the office of the Secretary 
of a military department, or the service headquarters of one of 
the Armed Forces into a legislative affairs or legislative liaison 
office: Provided further. That $4,675,000, to remain available until 
expended, is available only for expenses relating to certain classified 
activities, and may be transferred as necessary by the Secretary 
to operation and maintenance appropriations or research, develop-
ment, test and evaluation appropriations, to be merged with and 
to be available for the same time period as the appropriations 
to which transferred: Provided further, That any ceiling on the 
investment item unit cost of items that may be purchased with 
operation and maintenance funds shall not apply to the funds 
described in the preceding proviso: Provided further. That the 
transfer authority provided under this heading is in addition to 
any other transfer authority provided elsewhere in this Act. 
OPERATION AND MAINTENANCE, ARMY RESERVE 
For expenses, not otherwise provided for, necessary for the 
operation and maintenance, including training, organization, and 
administration, of the Army Reserve; repair of facilities and equip-
ment; hire of passenger motor vehicles; travel and transportation; 
care of the dead; recruiting; procurement of services, supplies, and 
equipment; and communications, $1,970,180,000. 
OPERATION AND MAINTENANCE, NAVY RESERVE 
For expenses, not otherwise provided for, necessary for the 
operation and maintenance, including training, organization, and 
administration, of the Navy Reserve; repair of facilities and equip-
ment; hire of passenger motor vehicles; travel and transportation; 
care of the dead; recruiting; procurement of services, supplies, and 
equipment; and communications, $1,236,809,000. 
OPERATION AND MAINTENANCE, MARINE CORPS RESERVE 
For expenses, not otherwise provided for, necessary for the 
operation and maintenance, including training, organization, and 
administration, of the Marine Corps Reserve; repair of facilities 
and equipment; hire of passenger motor vehicles; travel and 
transportation; care of the dead; recruiting; procurement of services, 
supplies, and equipment; and communications, $187,532,000. 
OPERATION AND MAINTENANCE, AIR FORCE RESERVE 
For expenses, not otherwise provided for, necessary for the 
operation and maintenance, including training, organization, and 
administration, of the Air Force Reserve; repair of facilities and 
equipment; hire of passenger motor vehicles; travel and transpor-
tation; care of the dead; recruiting; procurement of services, sup-
plies, and equipment; and communications, $2,163,104,000. 
116 STAT. 1524 
PUBLIC LAW 107-248—OCT. 23, 2002 
OPERATION AND MAINTENANCE, ARMY NATIONAL GUARD 
For expenses of training, organizing, and administering the 
Army National Guard, including medical and hospital treatment 
and related expenses in non-Federal hospitals; maintenance, oper-
ation, and repairs to structures and facilities; hire of passenger 
motor vehicles; personnel services in the National Guard Bureau; 
travel expenses (other than mileage), as authorized by law for 
Army personnel on active duty, for Army National Guard division, 
regimental, and battalion commanders while inspecting units in 
compliance with National Guard Bureau regulations when specifi-
cally authorized by the Chief, National Guard Bureau; supplying 
and equipping the Army National Guard as authorized by law; 
and expenses of repair, modification, maintenance, and issue of 
supplies and equipment (including aircraft), $4,261,707,000. 
OPERATION AND MAINTENANCE, AIR NATIONAL GUARD 
For operation and maintenance of the Air National Guard, 
including medical and hospital treatment and related expenses 
in non-Federal hospitals; maintenance, operation, repair, and other 
necessary expenses of facilities for the training and administration 
of the Air National Guard, including repair of facilities, mainte-
nance, operation, and modification of aircraft; transportation of 
things, hire of passenger motor vehicles; supplies, materials, and 
equipment, as authorized by law for the Air National Guard; and 
expenses incident to the maintenance and use of supplies, materials, 
and equipment, including such as may be furnished from stocks 
under the control of agencies of the Department of Defense; travel 
expenses (other than mileage) on the same basis as authorized 
by law for Air National Guard personnel on active Federal duty, 
for Air National Guard commanders while inspecting units in 
compliance with National Guard Bureau regulations when specifi-
cally 
authorized 
by 
the 
Chief, 
National 
Guard 
Bureau, 
$4,117,585,000. 
OVERSEAS CONTINGENCY OPERATIONS TRANSFER ACCOUNT 
(INCLUDING TRANSFER OF FUNDS) 
For expenses directly relating to Overseas Contingency Oper-
ations by United States military forces, $5,000,000, to remain avail-
able until expended: Provided, That the Secretary of Defense may 
transfer these funds only to military personnel accounts; operation 
and maintenance accounts within this title; the Defense Health 
Program appropriation; procurement accounts; research, develop-
ment, test and evaluation accounts; and to working capital funds: 
Provided further, 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 upon a determination that all or part of the funds 
transferred from this appropriation are not necessary for the pur-
poses provided herein, such amounts may be transferred back to 
this appropriation: Provided further. That the transfer authority 
provided in this paragraph is in addition to any other transfer 
authority contained elsewhere in this Act. 
PUBLIC LAW 107-248—OCT. 23, 2002 
116 STAT. 1525 
UNITED STATES COURT OF APPEALS FOR THE ARMED FORCES 
For salaries and expenses necessary for the United States 
Court of Appeals for the Armed Forces, $9,614,000, of which not 
to exceed $2,500 can be used for official representation purposes. 
ENVIRONMENTAL RESTORATION, ARMY 
(INCLUDING TRANSFER OF FUNDS) 
For the Department of the Army, $395,900,000, to remain 
available until transferred: Provided, That the Secretary of the 
Army shall, upon determining that such funds are required for 
environmental restoration, reduction and recycling of hazardous 
waste, removal of unsafe buildings and debris of the Department 
of the Army, or for similar purposes, transfer the funds made 
available by this appropriation to other appropriations made avail-
able to the Department of the Army, to be merged with and to 
be available for the same purposes and for the same time period 
as the appropriations to which transferred: Provided further, That 
upon a determination that all or part of the funds transferred 
from this appropriation are not necessary for the purposes provided 
herein, such amounts may be transferred back to this appropriation. 
ENVIRONMENTAL RESTORATION, NAVY 
(INCLUDING TRANSFER OF FUNDS) 
For the Department of the Navy, $256,948,000, to remain avail-
able until transferred: Provided, That the Secretary of the Navy 
shall, upon determining that such funds are required for environ-
mental restoration, reduction and recycling of hazardous waste, 
removal of unsafe buildings and debris of the Department of the 
Navy, or for similar purposes, transfer the funds made available 
by this appropriation to other appropriations made available to 
the Department of the Navy, to be merged with and to be available 
for the same purposes and for the same time period as the appro-
priations to which transferred: Provided further, That upon a deter-
mination that all or part of the funds transferred from this appro-
priation are not necessary for the purposes provided herein, such 
amounts may be transferred back to this appropriation. 
ENVIRONMENTAL RESTORATION, AIR FORCE 
(INCLUDING TRANSFER OF FUNDS) 
For the Department of the Air Force, $389,773,000, to remain 
available until transferred: Provided, That the Secretary of the 
Air Force shall, upon determining that such funds are required 
for environmental restoration, reduction and recycling of hazardous 
waste, removal of unsafe buildings and debris of the Department 
of the Air Force, or for similar purposes, transfer the funds made 
available by this appropriation to other appropriations made avail-
able to the Department of the Air Force, to be merged with and 
to be available for the same purposes and for the same time period 
as the appropriations to which transferred: Provided further, That 
upon a determination that all or part of the funds transferred 
from this appropriation are not necessary for the purposes provided 
herein, such amounts may be transferred back to this appropriation. 
116 STAT. 1526 
PUBLIC LAW 107-248—OCT. 23, 2002 
ENVIRONMENTAL RESTORATION, DEFENSE-WIDE 
(INCLUDING TRANSFER OF FUNDS) 
For the Department of Defense, $23,498,000, to remain avail-
able until transferred: Provided, That the Secretary of Defense 
shall, upon determining that such funds are required for environ-
mental restoration, reduction and recycling of hazardous waste, 
removal of unsafe buildings and debris of the Department of 
Defense, or for similar purposes, transfer the funds made available 
by this appropriation to other appropriations made available to 
the Department of Defense, to be merged with and to be available 
for the same purposes and for the same time period as the appro-
priations to which transferred: Provided further, That upon a deter-
mination that all or part of the funds transferred from this appro-
priation are not necessary for the purposes provided herein, such 
amounts may be transferred back to this appropriation. 
ENVIRONMENTAL RESTORATION, FORMERLY USED DEFENSE SITES 
(INCLUDING TRANSFER OF FUNDS) 
For the Department of the Army, $246,102,000, to remain 
available until transferred: Provided, That the Secretary of the 
Army shall, upon determining that such funds are required for 
environmental restoration, reduction and recycling of hazardous 
waste, removal of unsafe buildings and debris at sites formerly 
used by the Department of Defense, transfer the funds made avail-
able by this appropriation to other appropriations made available 
to the Department of the Army, to be merged with and to be 
available for the same purposes and for the same time period 
as the appropriations to which transferred: Provided further, That 
upon a determination that all or part of the funds transferred 
from this appropriation are not necessary for the purposes provided 
herein, such amounts may be transferred back to this appropriation. 
OVERSEAS HuMANiTARLy^, DISASTER, AND CIVIC AID 
For expenses relating to the Overseas Humanitarian, Disaster, 
and Civic Aid programs of the Department of Defense (consisting 
of the programs provided under sections 401, 402, 404, 2547, and 
2551 of title 10, United States Code), $58,400,000, to remain avail-
able until September 30, 2004. 
FORMER SOVIET UNION THREAT REDUCTION 
For assistance to the republics of the former Soviet Union, 
including assistance provided by contract or by grants, for facili-
tating the elimination and the safe and secure transportation and 
storage of nuclear, chemical and other weapons; for establishing 
programs to prevent the proliferation of weapons, weapons compo-
nents, and weapon-related technology and expertise; for programs 
relating to the training and support of defense and military per-
sonnel for demilitarization and protection of weapons, weapons 
components and weapons technology and expertise, and for defense 
and military contacts, $416,700,000, to remain available until Sep-
tember 30, 2005: Provided, That of the amounts provided under 
this heading, $10,000,000 shall be available only to support the 
PUBLIC LAW 107-248—OCT. 23, 2002 
116 STAT. 1527 
dismantling and disposal of nuclear submarines and submarine 
reactor components in the Russian Far East. 
SUPPORT FOR INTERNATIONAL SPORTING COMPETITIONS, DEFENSE 
For logistical and security support for international sporting 
competitions (including pay and non-travel related allowances only 
for members of the Reserve Components of the Armed Forces of 
the United States called or ordered to active duty in connection 
with providing such support), $19,000,000, to remain available until 
expended. 
TITLE III 
PROCUREMENT 
AIRCRAFT PROCUREMENT, ARMY 
For construction, procurement, production, modification, and 
modernization of aircraft, equipment, including ordnance, ground 
handling equipment, spare parts, and accessories therefor; special-
ized equipment and training devices; expansion of public and private 
plants, including the land necessary therefor, for the foregoing 
purposes, and such lands and interests therein, may be acquired, 
and construction prosecuted thereon prior to approval of title; and 
procurement 
and 
installation 
of equipment, 
appliances, 
and 
machine tools in public and private plants; reserve plant and 
Government and contractor-owned equipment layaway; and other 
expenses necessary for the foregoing purposes, $2,285,574,000, to 
remain available for obligation until September 30, 2005: Provided, 
That of the funds made available under this heading, $39,100,000 
shall be available only to support a restructured CH-47F helicopter 
upgrade program for the full fleet to facilitate increases in the 
planned production rate to an economically optimal rate by fiscal 
year 2005: Provided further, That funds in the immediately pre-
ceding proviso shall not be made available until the Secretary 
of the Army has certified to the congressional defense committees 
that the Army intends to budget for the upgrade of the entire 
CH-47 fleet required for the Objective Force at economically optimal 
production rates in order to complete this program within ten 
years after it is initiated. 
MISSILE PROCUREMENT, ARMY 
For construction, procurement, production, modification, and 
modernization of missiles, equipment, including ordnance, ground 
handling equipment, spare parts, and accessories therefor; special-
ized equipment and training devices; expansion of public and private 
plants, including the land necessary therefor, for the foregoing 
purposes, and such lands and interests therein, may be acquired, 
and construction prosecuted thereon prior to approval of title; and 
procurement 
and installation 
of equipment, 
appliances, 
and 
machine tools in public £ind private plants; reserve plant and 
Government and contractor-owned equipment layaway; and other 
expenses necessary for the foregoing purposes, $1,096,548,000, to 
remain available for obligation until September 30, 2005. 
116 STAT. 1528 
PUBLIC LAW 107-248—OCT. 23, 2002 
PROCUREMENT OF WEAPONS AND TRACKED COMBAT VEHICLES, 
ARMY 
For construction, procurement, production, and modification 
of weapons and tracked combat vehicles, equipment, including ord-
nance, spare parts, and accessories therefor; specialized equipment 
and training devices; expansion of public and private plants, 
including the land necessary therefor, for the foregoing purposes, 
and such lands and interests therein, may be acquired, and 
construction prosecuted thereon prior to approval of title; and 
procurement 
and installation 
of equipment, appliances, 
and 
machine tools in public and private plants; reserve plant and 
Government and contractor-owned equipment layaway; and other 
expenses necessary for the foregoing purposes, $2,266,508,000, to 
remain available for obligation until September 30, 2005. 
PROCUREMENT OF AMMUNITION, ARMY 
For construction, procurement, production, and modification 
of ammunition, and accessories therefor; specialized equipment and 
training devices; expansion of public and private plants, including 
ammunition facilities authorized by section 2854 of title 10, United 
States Code, and the land necessary therefor, for the foregoing 
purposes, and such lands and interests therein, may be acquired, 
and construction prosecuted thereon prior to approval of title; and 
procurement 
and installation 
of equipment, 
appliances, 
and 
machine tools in public and private plants; reserve plant and 
Government and contractor-owned equipment layaway; and other 
expenses necessary for the foregoing purposes, $1,253,099,000, to 
remain available for obligation until September 30, 2005. 
OTHER PROCUREMENT, ARMY 
For construction, procurement, production, and modification 
of vehicles, including tactical, support, and non-tracked combat 
vehicles; the purchase of passenger motor vehicles for replacement 
only; and the purchase of 6 vehicles required for physical security 
of personnel, notwithstanding price limitations applicable to pas-
senger vehicles but not to exceed $180,000 per vehicle; communica-
tions and electronic equipment; other support equipment; spare 
parts, ordnance, and accessories therefor; specialized equipment 
and training devices; expansion of public and private plants, 
including the land necessary therefor, for the foregoing purposes, 
and such lands and interests therein, may be acquired, and 
construction prosecuted thereon prior to approval of title; and 
procurement 
and installation of equipment, 
appliances, 
and 
machine tools in public and private plants; reserve plant and 
Government and contractor-owned equipment layaway; and other 
expenses necessary for the foregoing purposes, $5,874,674,000, to 
remain available for obligation until September 30, 2005. 
AIRCRAFT PROCUREMENT, NAVY 
For construction, procurement, production, modification, and 
modernization of aircraft, equipment, including ordnance, spare 
parts, and accessories therefor; specialized equipment; expansion 
of public and private plants, including the land necessary therefor, 
and such lands and interests therein, may be acquired, and 
PUBLIC LAW 107-248—OCT. 23, 2002 
116 STAT. 1529 
construction prosecuted thereon prior to approval of title; and 
procurement 
and 
installation 
of equipment, 
appliances, 
and 
machine tools in public and private plants; reserve plant and 
Government 
and 
contractor-owned 
equipment 
layaway, 
$8,812,855,000, to remain available for obligation until September 
30, 2005. 
WEAPONS PROCUREMENT, NAVY 
For construction, procurement, production, modification, and 
modernization of missiles, torpedoes, other weapons, and related 
support equipment including spare parts, and accessories therefor; 
expansion of public and private plants, including the land necessary 
therefor, and such lands and interests therein, may be acquired, 
and construction prosecuted thereon prior to approval of title; and 
procurement 
and 
installation 
of equipment, 
appliances, 
and 
machine tools in public and private plants; reserve plant and 
Government 
and 
contractor-owned 
equipment 
layaway, 
$1,868,517,000, to remain available for obligation until September 
30, 2005. 
PROCUREMENT OF AMMUNITION, NAVY AND MARINE CORPS 
For construction, procurement, production, and modification 
of ammunition, and accessories therefor; specialized equipment and 
training devices; expansion of public and private plants, including 
ammunition facilities authorized by section 2854 of title 10, United 
States Code, and the land necessary therefor, for the foregoing 
purposes, and such lands and interests therein, may be acquired, 
and construction prosecuted thereon prior to approval of title; and 
procurement 
and 
installation 
of equipment, 
appliances, 
and 
machine tools in public and private plants; reserve plant and 
Government and contractor-owned equipment layaway; and other 
expenses necessary for the foregoing purposes, $1,165,730,000, to 
remain available for obligation until September 30, 2005. 
SHIPBUILDING AND CONVERSION, NAVY 
For expenses necessary for the construction, acquisition, or 
conversion of vessels as authorized by law, including armor and 
armament thereof, plant equipment, appliances, and machine tools 
and installation thereof in public and private plants; reserve plant 
and 
Government 
and 
contractor-owned 
equipment 
layaway; 
procurement of critical, long leadtime components and designs for 
vessels to be constructed or converted in the future; and expansion 
of public and private plants, including land necessary therefor, 
and such lands and interests therein, may be acquired, and 
construction prosecuted thereon prior to approval of title, as follows: 
Carrier Replacement Program, $90,000,000; 
Carrier Replacement Program (AP), $403,703,000; 
NSSN, 
$1,499,152,000; 
NSSN 
(AP), 
$645,209,000; 
SSGN, 
$404,305,000; 
SSGN 
(AP), 
$421,000,000; 
CVN Refuelings (AP), $221,781,000; 
Submarine Refuelings, $435,792,000; 
Submarine Refuelings (AP), $64,000,000; 
DDG-51 Destroyer, $2,321,502,000; 
116 STAT. 1530 
PUBLIC LAW 107-248—OCT. 23, 2002 
LPD-17, $596,492,000; 
LHD-8, $243,000,000; 
LCAC Landing Craft Air Cushion, $89,638,000; 
Mine Hunter SWATH, $7,000,000; 
Prior year shipbuilding costs, $1,279,899,000; 
Service Craft, $9,756,000; and 
For outfitting, post delivery, conversions, and first destina-
tion transportation, $300,608,000; 
In all: $9,032,837,000, to remain available for obligation until 
September 30, 2007: Provided, That additional obligations may 
be incurred after September 30, 2007, for engineering services, 
tests, evaluations, and other such budgeted work that must be 
performed in the final stage of ship construction: Provided 
further, 
That none of the funds provided under this heading for the construc-
tion or conversion of any naval vessel to be constructed in shipyards 
in the United States shall be expended in foreign facilities for 
the construction of major components of such vessel: Provided fur-
ther, That none of the funds provided under this heading shall 
be used for the construction of any naval vessel in foreign shipyards. 
OTHER PROCUREMENT, NAVY 
For procurement, production, and modernization of support 
equipment and materials not otherwise provided for. Navy ordnance 
(except ordnance for new aircraft, new ships, and ships authorized 
for conversion); the purchase of passenger motor vehicles for 
replacement only, and the purchase of 3 vehicles required for phys-
ical security of personnel, notwithstanding price 
limitations 
applicable to passenger vehicles but not to exceed $240,000 per 
unit for one unit and not to exceed $125,000 per unit for the 
remaining two units; expansion of public and private plants, 
including the land necessary therefor, and such lands and interests 
therein, may be acquired, and construction prosecuted thereon prior 
to approval of title; and procurement and installation of equipment, 
appliances, and machine tools in public and private plants; reserve 
plant and Government and contractor-owned equipment layaway, 
$4,612,910,000, to remain available for obligation until September 
30, 2005. 
PROCUREMENT, MARINE CORPS 
For expenses necessary for the procurement, manufacture, and 
modification of missiles, armament, military equipment, spare 
parts, and accessories therefor; plant equipment, appliances, and 
machine tools, and installation thereof in public and private plants; 
reserve plant and Government and contractor-owned equipment 
layaway; vehicles for the Marine Corps, including the purchase 
of passenger motor vehicles for replacement only; and expansion 
of public and private plants, including land necessary therefor, 
and such lands and interests therein, may be acquired, and 
construction 
prosecuted 
thereon 
prior to 
approval 
of title, 
$1,388,583,000, to remain available for obligation until September 
30, 2005. 
AIRCRAFT PROCUREMENT, AIR FORCE 
For construction, procurement, lease, and modification of air-
craft and equipment, including armor and armament, specialized 
PUBLIC LAW 107-248—OCT. 23, 2002 
116 STAT. 1531 
ground handling equipment, and training devices, spare parts, and 
accessories therefor; speciaUzed equipment; expansion of pubHc and 
private plants, Government-owned equipment and installation 
thereof in such plants, erection of structures, and acquisition of 
land, for the foregoing purposes, and such lands and interests 
therein, may be acquired, and construction prosecuted thereon prior 
to approval of title; reserve plant and Government and contractor-
owned equipment layaway; and other expenses necessary for the 
foregoing purposes including rents and transportation of things, 
$13,137,255,000, to remain available for obligation until September 
30, 2005: Provided, That amounts provided under this heading 
shall be used for the advance procurement of 15 C-17 aircraft. 
MISSILE PROCUREMENT, AIR FORCE 
For construction, procurement, and modification of missiles, 
spacecraft, rockets, and related equipment, including spare parts 
and accessories therefor, ground handling equipment, and training 
devices; expansion of public and private plants, Government-owned 
equipment and installation thereof in such plants, erection of struc-
tures, and acquisition of land, for the foregoing purposes, and 
such lands and interests therein, may be acquired, and construction 
prosecuted thereon prior to approval of title; reserve plant and 
Government and contractor-owned equipment layaway; and other 
expenses necessary for the foregoing purposes including rents and 
transportation of things, $3,174,739,000, to remain available for 
obligation until September 30, 2005. 
PROCUREMENT OF AMMUNITION, AIR FORCE 
For construction, procurement, production, and modification 
of ammunition, and accessories therefor; specialized equipment and 
training devices; expansion of public and private plants, including 
ammunition facilities authorized by section 2854 of title 10, United 
States Code, and the land necessary therefor, for the foregoing 
purposes, and such lands and interests therein, may be acquired, 
and construction prosecuted thereon prior to approval of title; and 
procurement 
and installation 
of equipment, 
appliances, 
and 
machine tools in public and private plants; reserve plant and 
Government and contractor-owned equipment layaway; and other 
expenses necessary for the foregoing purposes, $1,288,164,000, to 
remain available for obligation until September 30, 2005. 
OTHER PROCUREMENT, AIR FORCE 
For procurement and modification of equipment (including 
ground guidance and electronic control equipment, and ground elec-
tronic and communication equipment), and supplies, materials, and 
spare parts therefor, not otherwise provided for; the purchase of 
passenger motor vehicles for replacement only, and the purchase 
of 2 vehicles required for physical security of personnel, notwith-
standing price limitations applicable to passenger vehicles but not 
to exceed $232,000 per vehicle; lease of passenger motor vehicles; 
and expansion of public and private plants, Government-owned 
equipment and installation thereof in such plants, erection of struc-
tures, and acquisition of land, for the foregoing purposes, and 
such lands and interests therein, may be acquired, and construction 
prosecuted thereon, prior to approval of title; reserve plant and 
116 STAT. 1532 
PUBLIC LAW 107-248—OCT. 23, 2002 
Deadline. 
Government 
and 
contractor-owned 
equipment 
layaway, 
$10,672,712,000, to remain available for obligation until September 
30, 2005. 
PROCUREMENT, DEFENSE-WIDE 
For expenses of activities and agencies of the Department of 
Defense (other than the military departments) necessary for 
procurement, production, and modification of equipment, supplies, 
materials, and spare parts therefor, not otherwise provided for; 
the purchase of passenger motor vehicles for replacement only; 
the purchase of 4 vehicles required for physical security of per-
sonnel, notwithstanding price limitations applicable to passenger 
vehicles but not to exceed $250,000 per vehicle; expansion of public 
and private plants, equipment, and installation thereof in such 
plants, erection of structures, and acquisition of land for the fore-
going purposes, and such lands and interests therein, may be 
acquired, and construction prosecuted thereon prior to approval 
of title; reserve plant and Government and contractor-owned equip-
ment layaway, $3,444,455,000, to remain available for obligation 
until September 30, 2005. 
NATIONAL GUARD AND RESERVE EQUIPMENT 
For procurement of aircraft, missiles, tracked combat vehicles, 
ammunition, other weapons, and other procurement for the reserve 
components of the Armed Forces, $100,000,000, to remain available 
for obligation until September 30, 2005: Provided, That the Chiefs 
of the Reserve and National Guard components shall, not later 
than 30 days after the enactment of this Act, individually submit 
to the congressional defense committees the modernization priority 
assessment for their respective Reserve or National Guard compo-
nent. 
DEFENSE PRODUCTION ACT PURCHASES 
For activities by the Department of Defense pursuant to sec-
tions 108, 301, 302, and 303 of the Defense Production Act of 
1950 (50 U.S.C. App. 2078, 2091, 2092, and 2093), $73,057,000, 
to remain available until expended, of which, $5,000,000 may be 
used for a Processable Rigid-Rod Polymeric Material Supplier Initia-
tive under title III of the Defense Production Act of 1950 (50 
U.S.C. App. 2091 et seq.) to develop affordable production methods 
and a domestic supplier for military and commercial processable 
rigid-rod polymeric materials. 
TITLE IV 
RESEARCH, DEVELOPMENT, TEST AND EVALUATION 
RESEARCH, DEVELOPMENT, TEST AND EVALUATION, ARMY 
For expenses necessary for basic and applied scientific research, 
development, 
test 
and 
evaluation, 
including 
maintenance, 
rehabilitation, lease, and operation of facilities and equipment, 
$7,669,656,000, to remain available for obligation until September 
30, 2004. 
PUBLIC LAW 107-248—OCT. 23, 2002 
116 STAT. 1533 
RESEARCH, DEVELOPMENT, TEST AND EVALUATION, NAVY 
For expenses necessary for basic and applied scientific research, 
development, 
test 
and 
evaluation, 
including 
maintenance, 
rehabilitation, lease, and operation of facilities and equipment, 
$13,946,085,000, to remain available for obligation until September 
30, 2004: Provided, That funds appropriated in this paragraph 
which are available for the V-22 may be used to meet unique 
operational requirements of the Special Operations Forces. 
RESEARCH, DEVELOPMENT, TEST AND EVALUATION, AIR FORCE 
For expenses necessary for basic and applied scientific research, 
development, 
test 
and 
evaluation, 
including 
maintenance, 
rehabilitation, lease, and operation of facilities and equipment, 
$18,822,569,000, to remain available for obligation until September 
30, 2004. 
RESEARCH, DEVELOPMENT, TEST AND EVALUATION, DEFENSE-WIDE 
For expenses of activities and agencies of the Department of 
Defense (other than the military departments), necessary for basic 
and applied scientific research, development, test and evaluation; 
advanced research projects as may be designated and determined 
by the Secretary of Defense, pursuant to law; maintenance, 
rehabilitation, lease, and operation of facilities and equipment, 
$17,924,642,000, to remain available for obligation until September 
30,2004. 
OPERATIONAL TEST AND EVALUATION, DEFENSE 
For expenses, not otherwise provided for, necessary for the 
independent activities of the Director, Operational Test and Evalua-
tion, in the direction and supervision of operational test and evalua-
tion, including initial operational test and evaluation which is con-
ducted prior to, and in support of, production decisions; joint oper-
ational testing and evaluation; and administrative expenses in 
connection therewith, $245,554,000, to remain available for obliga-
tion until September 30, 2004. 
TITLE V 
REVOLVING AND MANAGEMENT FUNDS 
DEFENSE WORKING CAPITAL FUNDS 
For the Defense Working Capital Funds, $1,784,956,000: Pro-
vided, That during fiscal year 2003, funds in the Defense Working 
Capital Funds may be used for the purchase of not to exceed 
315 passenger carrying motor vehicles for replacement only for 
the Defense Security Service, and the purchase of not to exceed 
7 vehicles for replacement only for the Defense Logistics Agency. 
NATIONAL DEFENSE SEALIFT FUND 
For National Defense Sealift Fund programs, projects, and 
activities, and for expenses of the National Defense Reserve Fleet, 
as established by section 11 of the Merchant Ship Sales Act of 
1946 (50 U.S.C. App. 1744), and for the necessary expenses to 
116 STAT. 1534 
PUBLIC LAW 107-248—OCT. 23, 2002 
maintain and preserve a U.S.-flag merchant fleet to serve the 
national security needs of the United States, $942,629,000, to 
remain available until expended: Provided, That none of the funds 
provided in this paragraph shall be used to award a new contract 
that provides for the acquisition of any of the following major 
components unless such components are manufactured in the 
United States: auxiliary equipment, including pumps, for all ship-
board services; propulsion system components (that is; engines, 
reduction gears, and propellers); shipboard cranes; and spreaders 
for shipboard cranes: Provided further. That the exercise of an 
option in a contract awarded through the obligation of previously 
appropriated funds shall not be considered to be the award of 
a new contract: Provided further. That the Secretary of the military 
department responsible for such procurement may waive the restric-
tions in the first proviso on a case-by-case basis by certifying in 
writing to the Committees on Appropriations of the House of Rep-
resentatives 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: Provided fur-
ther. That, notwithstanding any other provision of law, $8,500,000 
of the funds available under this heading shall be available in 
addition to other amounts otherwise available, only to finance the 
cost of constructing additional sealift capacity. 
TITLE VI 
OTHER 
DEPARTMENT 
OF 
DEFENSE 
PROGRAMS 
DEFENSE HEALTH PROGRAM 
For expenses, not otherwise provided for, for medical and health 
care programs of the Department of Defense, as authorized by 
law, $14,843,542,000, of which $14,100,386,000 shall be for Oper-
ation and maintenance, of which not to exceed 2 percent shall 
remain available until September 30, 2004; of which $284,242,000, 
to remain available for obligation until September 30, 2005, shall 
be for Procurement; of which $458,914,000, to remain available 
for obligation until September 30, 2004, shall be for Research, 
development, test and evaluation, and of which not less than 
$7,000,000 shall be available for HIV prevention educational activi-
ties undertaken in connection with U.S. military training, exercises, 
and humanitarian assistance activities conducted primarily in Afri-
can nations. 
CHEMICAL AGENTS AND MUNITIONS DESTRUCTION, ARMY 
For expenses, not otherwise provided for, necessary for the 
destruction of the United States stockpile of lethal chemical agents 
and munitions in accordance with the provisions of section 1412 
of the Department of Defense Authorization Act, 1986 (50 U.S.C. 
1521), and for the destruction of other chemical warfare materials 
that are not in the chemical weapon stockpile, $1,490,199,000, 
of which $974,238,000 shall be for Operation and maintenance 
to remain available until September 30, 2004, $213,278,000 shall 
be for Procurement to remain available until September 30, 2005, 
and $302,683,000 shall be for Research, development, test and 
evaluation to remain available until September 30, 2004. 
PUBLIC LAW 107-248—OCT. 23, 2002 
116 STAT. 1535 
DRUG INTERDICTION AND COUNTER-DRUG ACTIVITIES, DEFENSE 
(INCLUDING TRANSFER OF FUNDS) 
For drug interdiction and counter-drug activities of the Depart-
ment of Defense, for transfer to appropriations available to the 
Department of Defense for military personnel of the reserve compo-
nents serving under the provisions of title 10 and title 32, United 
States Code; for Operation and maintenance; for Procurement; and 
for Research, development, test and evaluation, $881,907,000: Pro-
vided, That the funds appropriated under this heading shall be 
available for obligation for the same time period and for the same 
purpose as the appropriation to which transferred: Provided further, 
That upon a determination that all or part of the funds transferred 
from this appropriation are not necessary for the purposes provided 
herein, such amounts may be transferred back to this appropriation: 
Provided further. That the transfer authority provided under this 
heading is in addition to any other transfer authority contained 
elsewhere in this Act. 
OFFICE OF THE INSPECTOR GENERAL 
For expenses and activities of the Office of the Inspector Gen-
eral in carrying out the provisions of the Inspector General Act 
of 1978, as amended, $157,165,000, of which $155,165,000 shall 
be for Operation and maintenance, of which not to exceed $700,000 
is available for emergencies and extraordinary expenses to be 
expended on the approval or authority of the Inspector General, 
and payments may be made on the Inspector General's certificate 
of necessity for confidential military purposes; and of which 
$2,000,000 to remain available until September 30, 2005, shall 
be for Procurement. 
TITLE VII 
RELATED AGENCIES 
CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY 
SYSTEM FUND 
For pajmient to the Central Intelligence Agency Retirement 
and Disability System Fund, to maintain the proper funding level 
for continuing the operation of the Central Intelligence Agency 
Retirement and Disability System, $222,500,000. 
INTELLIGENCE COMMUNITY MANAGEMENT ACCOUNT 
(INCLUDING TRANSFER OF FUNDS) 
For necessary expenses of the Intelligence Community Manage-
ment Account, $163,479,000, of which $24,252,000 for the Advanced 
Research and Development Committee shall remain available until 
September 30, 2004: Provided, That of the funds appropriated under 
this heading, $34,100,000 shall be transferred to the Department 
of Justice for the National Drug Intelligence Center to support 
the Department of Defense's counter-drug intelligence responsibil-
ities, and of the said amount, $1,500,000 for Procurement shall 
remain available until September 30, 2005 and $1,000,000 for 
Research, development, test and evaluation shall remain available 
116 STAT. 1536 
PUBLIC LAW 107-248—OCT. 23, 2002 
Records. 
until September 30, 2004: Provided further, 
That the National 
Drug Intelligence Center shall maintain the personnel and technical 
resources to provide timely support to law enforcement authorities 
and the intelligence community by conducting document and com-
puter exploitation of materials collected in Federal, State, and local 
law enforcement activity associated with counter-drug, counter-ter-
rorism, and national security investigations and operations. 
PAYMENT TO KAHO'OLAWE ISLAND CONVEYANCE, REMEDIATION, AND 
ENVIRONMENTAL RESTORATION FUND 
For payment to Kaho'olawe Island Conveyance, Remediation, 
and Environmental Restoration Fund, as authorized by law, 
$75,000,000, to remain available until expended. 
NATIONAL SECURITY EDUCATION TRUST FUND 
For the purposes of title VIII of Public Law 102-183, 
$8,000,000, to be derived from the National Security Education 
Trust Fund, to remain available until expended. 
TITLE VIII 
10 use 1584 
note. 
GENERAL PROVISIONS 
SEC. 8001. No part of any appropriation contained in this 
Act shall be used for publicity or propaganda purposes not author-
ized by the Congress. 
SEC. 8002. During the current fiscal year, provisions of law 
prohibiting the payment of compensation to, or employment of, 
any person not a citizen of the United States shall not apply 
to personnel of the Department of Defense: Provided, That salary 
increases granted to direct and indirect hire foreign national 
employees of the Department of Defense funded by this Act shall 
not be at a rate in excess of the percentage increase authorized 
by law for civilian employees of the Department of Defense whose 
pay is computed under the provisions of section 5332 of title 5, 
United States Code, or at a rate in excess of the percentage increase 
provided by the appropriate host nation to its own employees, 
whichever is higher: Provided further, That this section shall not 
apply to Department of Defense foreign service national employees 
serving at United States diplomatic missions whose pay is set 
by the Department of State under the Foreign Service Act of 1980: 
Provided further. That the limitations of this provision shall not 
apply to foreign national employees of the Department of Defense 
in the Republic of Turkey. 
SEC. 8003. No part of any appropriation contained in this 
Act shall remain available for obligation beyond the current fiscal 
year, unless expressly so provided herein. 
SEC. 8004. No more than 20 percent of the appropriations 
in this Act which are limited for obligation during the current 
fiscal year shall be obligated during the last 2 months of the 
fiscal year: Provided, That this section shall not apply to obligations 
for support of active duty training of reserve components or summer 
camp training of the Reserve Officers' Training Corps. 
PUBLIC LAW 107-248—OCT. 23, 2002 
116 STAT. 1537 
(TRANSFER OF FUNDS) 
SEC. 8005. Upon determination by the Secretary of Defense 
that such action is necessary in the national interest, he may, 
with the approval of the Office of Management and Budget, transfer 
not to exceed $2,000,000,000 of working capital funds of the Depart-
ment of Defense or funds made available in this Act to the Depart-
ment of Defense for military functions (except military construction) 
between such appropriations or funds or any subdivision thereof, 
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, That such authority to transfer may 
not be used unless for higher priority items, based on unforeseen 
military requirements, than those for which originally appropriated 
and in no case where the item for which funds are requested 
has been denied by the Congress: Provided further, That the Sec- Notification. 
retary of Defense shall notify the Congress promptly of all transfers 
made pursuant to this authority or any other authority in this 
Act: Provided further. That no part of the funds in this Act shall 
be available to prepare or present a request to the Committees 
on Appropriations for reprogramming of funds, unless for higher 
priority items, based on unforeseen military requirements, than 
those for which originally appropriated and in no case where the 
item for which reprogramming is requested has been denied by 
the Congress: Provided 
further, 
That a request for multiple 
reprogrammings of funds using authority provided in this section 
must be made prior to May 31, 2003: Provided further, That section 
8005 of the Department of Defense Appropriations Act, 2002 (Public 
Law 107-117) is amended by striking "$2,000,000,000", and 
115 Stat. 2247. 
inserting "$2,500,000,000". 
(TRANSFER OF FUNDS) 
SEC. 8006. During the current fiscal year, cash balances in 
working capital funds of the Department of Defense established 
pursuant to section 2208 of title 10, United States Code, may 
be maintained in only such amounts as are necessary at any time 
for cash disbursements to be made from such funds: Provided, 
That transfers may be made between such funds: Provided further. 
That transfers may be made between working capital funds and 
the "Foreign Currency Fluctuations, Defense" appropriation and 
the "Operation and Maintenance" appropriation accounts in such 
amounts as may be determined by the Secretary of Defense, with 
the approval of the Office of Management and Budget, except that 
such transfers may not be made unless the Secretary of Defense 
has notified the Congress of the proposed transfer. Except in 
amounts equal to the amounts appropriated to working capital 
funds in this Act, no obligations may be made against a working 
capital fund to procure or increase the value of war reserve material 
inventory, unless the Secretary of Defense has notified the Congress 
prior to any such obligation. 
SEC. 8007. Funds appropriated by this Act may not be used 
to initiate a special access program without prior notification 30 
calendar days in session in advance to the congressional defense 
committees. 
SEC. 8008. None of the funds provided in this Act shall be 
available to initiate: (1) a multiyear contract that employs economic 
order quantity procurement in excess of $20,000,000 in any 1 year 
Notification. 
10 u s e 2306b 
note. 
116 STAT. 1538 
PUBLIC LAW 107-248—OCT. 23, 2002 
of the contract or that includes an unfunded contingent liabiUty 
in excess of $20,000,000; or (2) a contract for advance procurement 
leading to a multiyear contract that employs economic order 
quantity procurement in excess of $20,000,000 in any 1 year, unless 
the congressional defense committees have been notified at least 
30 days in advance of the proposed contract award: Provided, That 
no part of any appropriation contained in this Act shall be available 
to initiate a multiyear contract for which the economic order 
quantity advance procurement is not funded at least to the limits 
of the Government's liability: Provided further, That no part of 
any appropriation contained in this Act shall be available to initiate 
multiyear procurement contracts for any systems or component 
thereof if the value of the multiyear contract would exceed 
$500,000,000 unless specifically provided in this Act: Provided fur-
ther, That no multiyear procurement contract can be terminated 
without 10-day prior notification to the congressional defense 
committees: Provided further. 
That the execution of multiyear 
authority shall require the use of a present value analysis to deter-
mine lowest cost compared to an annual procurement. 
Funds appropriated in title III of this Act may be used for 
multiyear procurement contracts as follows: 
C-130 aircraft; 
FMTV; and 
F/A-18E and F engine. 
Reports. 
SEC. 8009. Within the funds appropriated for the operation 
Deadline. 
and maintenance of the Armed Forces, funds are hereby appro-
10 use 401 note, p^^ted pursuant to section 401 of title 10, United States Code, 
for humanitarian and civic assistance costs under chapter 20 of 
title 10, United States Code. Such funds may also be obligated 
for humanitarian and civic assistance costs incidental to authorized 
operations and pursuant to authority granted in section 401 of 
chapter 20 of title 10, United States Code, and these obligations 
shall be reported to the Congress as of September 30 of each 
year: Provided, That funds available for operation and maintenance 
shall be available for providing humanitarian and similar assistance 
by using Civic Action Teams in the Trust Territories of the Pacific 
Islands and freely associated states of Micronesia, pursuant to 
the Compact of Free Association as authorized by Public Law 99-
239: Provided further. That upon a determination by the Secretary 
of the Army that such action is beneficial for graduate medical 
education programs conducted at Army medical facilities located 
in Hawaii, the Secretary of the Army may authorize the provision 
of medical services at such facilities and transportation to such 
facilities, on a nonreimbursable basis, for civilian patients from 
American Samoa, the Commonwealth of the Northern Mariana 
Islands, the Marshall Islands, the Federated States of Micronesia, 
Palau, and Guam. 
SEC. 8010. (a) During fiscal year 2003, the civilian personnel 
of the Department of Defense may not be managed on the basis 
of any end-strength, and the management of such personnel during 
that fiscal year shall not be subject to any constraint or limitation 
(known as an end-strength) on the number of such personnel who 
may be employed on the last day of such fiscal year. 
(b) The fiscal year 2004 budget request for the Department 
of Defense as well as all justification material and other documenta-
tion supporting the fiscal year 2004 Department of Defense budget 
request shall be prepared and submitted to the Congress as if 
PUBLIC LAW 107-248—OCT. 23, 2002 
116 STAT. 1539 
subsections (a) and (b) of this provision were effective with regard 
to fiscal year 2004. 
(c) Nothing in this section shall be construed to apply to military 
(civilian) technicians. 
SEC. 8011. Notwithstanding any other provision of law, none 
of the funds made available by this Act shall be used by the 
Department of Defense to exceed, outside the 50 United States, 
its territories, and the District of Columbia, 125,000 civilian 
workyears: Provided, That workyears shall be applied as defined Applicability, 
in the Federal Personnel Manual: Provided further. That workyears 
expended in dependent student hiring programs for disadvantaged 
youths shall not be included in this workyear limitation. 
SEC. 8012. None of the funds made available by this Act shall Lobbying. 
be used in any way, directly or indirectly, to influence congressional 
action on any legislation or appropriation matters pending before 
the Congress. 
SEC. 8013. None of the funds appropriated by this Act shall 
be available for the basic pay and allowances of any member of 
the Army participating as a full-time student and receiving benefits 
paid by the Secretary of Veterans Affairs from the Department 
of Defense Education Benefits Fund when time spent as a full-
time student is credited toward completion of a service commitment: 
Provided, That this subsection shall not apply to those members 
who have reenlisted with this option prior to October 1, 1987: 
Provided further. That this subsection applies only to active compo- Applicability, 
nents of the Army. 
SEC. 8014. None of the funds appropriated by this Act shall 
be available to convert to contractor performance an activity or 
function of the Department of Defense that, on or after the date 
of the enactment of this Act, is performed by more than 10 Depart-
ment of Defense civilian employees until a most efficient and cost-
effective organization analysis is completed on such activity or 
function and certification of the analysis is made to the Committees 
on Appropriations of the House of Representatives and the Senate: 
Provided, That this section and subsections (a), (b), and (c) of 
10 U.S.C. 2461 shall not apply to a commercial or industrial type 
function of the Department of Defense that: (1) is included on 
the procurement list established pursuant to section 2 of the Act 
of June 25, 1938 (41 U.S.C. 47), popularly referred to as the Javits-
Wagner-O'Day Act; (2) is planned to be converted to performance 
by a qualified nonprofit agency for the blind or by a qualified 
nonprofit agency for other severely handicapped individuals in 
accordance with that Act; or (3) is planned to be converted to 
performance by a qualified firm under 51 percent ownership by 
an Indian tribe, as defined in section 450b(e) of title 25, United 
States Code, or a Native Hawaiian organization, as defined in 
section 637(a)(15) of title 15, United States Code. 
(TRANSFER OF FUNDS) 
SEC. 8015. Funds appropriated in title III of this Act for the 
Department of Defense Pilot Mentor-Protege Program may be trans-
ferred to any other appropriation contained in this Act solely for 
the purpose of implementing a Mentor-Protege Program develop-
mental assistance agreement pursuant to section 831 of the 
National Defense Authorization Act for Fiscal Year 1991 (Public 
Law 101-510; 10 U.S.C. 2301 note), as amended, under the 
116 STAT. 1540 
PUBLIC LAW 107-248—OCT. 23, 2002 
authority of this provision or any other transfer authority contained 
in this Act. 
SEC. 8016. None of the funds in this Act may be available 
for the purchase by the Department of Defense (and its departments 
and agencies) of welded shipboard anchor and mooring chain 4 
inches in diameter and under unless the anchor and mooring chain 
are manufactured in the United States from components which 
are substantially manufactured in the United States: Provided, 
That for the purpose of this section manufactured will include 
cutting, heat treating, quality control, testing of chain and welding 
(including the forging and shot blasting process): Provided 
further, 
That for the purpose of this section substantially all of the compo-
nents of anchor and mooring chain shall be considered to be pro-
duced or manufactured in the United States if the aggregate cost 
of the components produced or manufactured in the United States 
exceeds the aggregate cost of the components produced or manufac-
tured outside the United States: Provided further, That when ade-
quate domestic supplies are not available to meet Department of 
Defense requirements on a timely basis, the Secretary of the service 
responsible for the procurement may waive this restriction on a 
case-by-case basis by certifying in writing to the Committees on 
Appropriations that such an acquisition must be made in order 
to acquire capability for national security purposes. 
SEC. 8017. None of the funds appropriated by this Act available 
for the Civilian Health and Medical Program of the Uniformed 
Services (CHAMPUS) or TRICARE shall be available for the 
reimbursement of any health care provider for inpatient mental 
health service for care received when a patient is referred to a 
provider of inpatient mental health care or residential treatment 
care by a medical or health care professional having an economic 
interest in the facility to which the patient is referred: Provided, 
That this limitation does not apply in the case of inpatient mental 
health services provided under the program for persons with disabil-
ities under subsection (d) of section 1079 of title 10, United States 
Code, provided as partial hospital care, or provided pursuant to 
a waiver authorized by the Secretary of Defense because of medical 
or psychological circumstances of the patient that are confirmed 
by a health professional who is not a Federal employee after a 
review, pursuant to rules prescribed by the Secretary, which takes 
into account the appropriate level of care for the patient, the inten-
sity of services required by the patient, and the availability of 
that care. 
10 use 2687 
SEC. 8018. Notwithstanding any other provision of law, during 
°ote- 
the current fiscal year, the Secretary of Defense may, by executive 
agreement, establish with host nation governments in NATO 
member states a separate account into which such residual value 
amounts negotiated in the return of United States military installa-
tions in NATO member states may be deposited, in the currency 
of the host nation, in lieu of direct monetary transfers to the 
United States Treasury: Provided, That such credits may be utilized 
only for the construction of facilities to support United States mili-
tary forces in that host nation, or such real property maintenance 
and base operating costs that are currently executed through mone-
tary transfers to such host nations: Provided further. That the 
Department of Defense's budget submission for fiscal year 2004 
shall identify such sums anticipated in residual value settlements, 
and identify such construction, real property maintenance or base 
PUBLIC LAW 107-248—OCT. 23, 2002 
116 STAT. 1541 
operating costs that shall be funded by the host nation through 
such credits: Provided 
further. 
That all military construction 
projects to be executed from such accounts must be previously 
approved in a prior Act of Congress: Provided further, That each Reports, 
such executive agreement with a NATO member host nation shall 
be reported to the congressional defense committees, the Committee 
on International Relations of the House of Representatives and 
the Committee on Foreign Relations of the Senate 30 days prior 
to the conclusion and endorsement of any such agreement estab-
lished under this provision. 
SEC. 8019. None of the funds available to the Department 
of Defense may be used to demilitarize or dispose of M-1 Carbines, 
M-1 Garand rifles, M-14 rifles, .22 caliber rifles, .30 caliber rifles, 
or M-1911 pistols. 
SEC. 8020. No more than $500,000 of the funds appropriated 
or made available in this Act shall be used during a single fiscal 
year for any single relocation of an organization, unit, activity 
or function of the Department of Defense into or within the National 
Capital Region: Provided, That the Secretary of Defense may waive 
this restriction on a case-by-case basis by certifying in writing 
to the congressional defense committees that such a relocation 
is required in the best interest of the Government. 
SEC. 8021. In addition to the funds provided elsewhere in 
this Act, $8,000,000 is appropriated only for incentive payments 
authorized by Section 504 of the Indian Financing Act of 1974 
(25 U.S.C. 1544): Provided, That a prime contractor or a subcon-
tractor at any tier that makes a subcontract award to any subcon-
tractor or supplier as defined in 25 U.S.C. 1544 or a small business 
owned and controlled by an individual defined under 25 U.S.C. 
4221(9) shall be considered a contractor for the purposes of being 
allowed additional compensation under section 504 of the Indian 
Financing Act of 1974 (25 U.S.C. 1544) whenever the prime contract 
or subcontract amount is over $500,000 and involves the expendi-
ture of funds appropriated by an Act making Appropriations for 
the Department of Defense with respect to any fiscal year: Provided 
further. That notwithstanding 41 U.S.C. §430, this section shall 
be applicable to any Department of Defense acquisition of supplies 
or services, including any contract and any subcontract at any 
tier for acquisition of commercial items produced or manufactured, 
in whole or in part by any subcontractor or supplier defined in 
25 U.S.C. §1544 or a small business owned and controlled by 
,/ 
an individual defined under 25 U.S.C. 4221(9). 
SEC. 8022. None of the funds appropriated by this Act shall 
be available to perform any cost study pursuant to the provisions 
of 0MB Circular A-76 if the study being performed exceeds a 
period of 24 months after initiation of such study with respect 
to a single function activity or 48 months after initiation of such 
study for a multi-function activity. 
SEC. 8023. Funds appropriated by this Act for the American 
^ 
Forces Information Service shall not be used for any national or 
international political or psychological activities. 
SEC. 8024. Notwithstanding any other provision of law or regu-
lation, the Secretary of Defense may adjust wage rates for civilian 
employees hired for certain health care occupations as authorized 
for the Secretary of Veterans Affairs by section 7455 of title 38, 
United States Code. 
116 STAT. 1542 
PUBLIC LAW 107-248—OCT. 23, 2002 
SEC. 8025. (a) Of the funds for the procurement of suppUes 
or services appropriated by this Act, qualified nonprofit agencies 
for the bhnd or other severely handicapped shall be afforded the 
maximum practicable opportunity to participate as subcontractors 
and suppliers in the performance of contracts let by the Department 
of Defense. 
(b) During the current fiscal year, a business concern which 
has negotiated with a military service or defense agency a subcon-
tracting plan for the participation by small business concerns pursu-
ant to section 8(d) of the Small Business Act (15 U.S.C. 637(d)) 
shall be given credit toward meeting that subcontracting goal for 
any purchases made from qualified nonprofit agencies for the blind 
or other severely handicapped. 
/ 
(c) For the purpose of this section, the phrase "qualified non-
profit agency for the blind or other severely handicapped" means 
a nonprofit agency for the blind or other severely handicapped 
that has been approved by the Committee for the Purchase from 
the Blind and Other Severely Handicapped under the Javits-
Wagner-O'Day Act (41 U.S.C. 46-48). 
SEC. 8026. During the current fiscal year, net receipts pursuant 
to collections from third party payers pursuant to section 1095 
of title 10, United States Code, shall be made available to the 
local facility of the uniformed services responsible for the collections 
and shall be over and above the facility's direct budget amount. 
SEC. 8027. During the current fiscal year, the Department 
of Defense is authorized to incur obligations of not to exceed 
$350,000,000 for purposes specified in section 2350j(c) of title 10, 
United States Code, in anticipation of receipt of contributions, only 
from the Government of Kuwait, under that section: Provided, 
That upon receipt, such contributions from the Government of 
Kuwait shall be credited to the appropriations or fund which 
incurred such obligations. 
SEC. 8028. Of the funds made available in this Act, not less 
than $21,188,000 shall be available for the Civil Air Patrol Corpora-
tion, of which $19,688,000 shall be available for Civil Air Patrol 
Corporation operation and maintenance to support readiness activi-
ties which includes $1,500,000 for the Civil Air Patrol counterdrug 
program: Provided, That funds identified for "Civil Air Patrol" under 
this section are intended for and shall be for the exclusive use 
of the Civil Air Patrol Corporation and not for the Air Force or 
any unit thereof. 
SEC. 8029. (a) None of the funds appropriated in this Act 
are available to establish a new Department of Defense (depart-
ment) federally funded research and development center (FFRDC), 
either as a new entity, or as a separate entity administrated by 
an organization managing another FFRDC, or as a nonprofit mem-
bership corporation consisting of a consortium of other FFRDCs 
and other non-profit entities. 
(b) No member of a Board of Directors, Trustees, Overseers, 
Advisory Group, Special Issues Panel, Visiting Committee, or any 
similar entity of a defense FFRDC, and no paid consultant to 
any defense FFRDC, except when acting in a technical advisory 
capacity, may be compensated for his or her services as a member 
of such entity, or as a paid consultant by more than one FFRDC 
in a fiscal year: Provided, That a member of any such entity 
referred to previously in this subsection shall be allowed travel 
expenses and per diem as authorized under the Federal Joint Travel 
PUBLIC LAW 107-248—OCT. 23, 2002 
116 STAT. 1543 
Regulations, when engaged in the performance of membership 
duties. 
(c) Notwithstanding any other provision of law, none of the 
funds available to the department from any source during fiscal 
year 2003 may be used by a defense FFRDC, through a fee or 
other payment mechanism, for construction of new buildings, for 
payment of cost sharing for projects funded by Government grants, 
for absorption of contract overruns, or for certain charitable con-
tributions, not to include employee participation in community 
service and/or development. 
(d) Notwithstanding any other provision of law, of the funds 
available to the department during fiscal year 2003, not more 
than 6,321 staff years of technical effort (staff years) may be funded 
for defense FFRDCs: Provided, That of the specific amount referred 
to previously in this subsection, not more than 1,050 staff years 
may be funded for the defense studies and analysis FFRDCs. 
(e) The Secretary of Defense shall, with the submission of Reports, 
the department's fiscal year 2004 budget request, submit a report 
presenting the specific amounts of staff years of technical effort 
to be allocated for each defense FFRDC during that fiscal year. 
(f) Notwithstanding any other provision of this Act, the total 
amount appropriated in this Act for FFRDCs is hereby reduced 
by $74,200,000. 
SEC. 8030. None of the funds appropriated or made available 
in this Act shall be used to procure carbon, alloy or armor steel 
plate for use in any Government-owned facility or property under 
the control of the Department of Defense which were not melted 
and rolled in the United States or Canada: Provided, That these Applicability. 
procurement restrictions shall apply to any and all Federal Supply 
Class 9515, American Society of Testing and Materials (ASTM) 
or American Iron and Steel Institute (AISI) specifications of carbon, 
alloy or armor steel plate: Provided further. That the Secretary 
of the military department responsible for the procurement may 
waive this restriction on a case-by-case basis by certifying in writing 
to the Committees on Appropriations of the House of Representa-
tives and the Senate that adequate domestic supplies are not avail-
able 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: Provided further. 
That these restrictions shall not apply to contracts which are in 
being as of the date of the enactment of this Act. 
SEC. 8031. For the purposes of this Act, the term "congressional 
defense committees" means the Armed Services Committee of the 
House of Representatives, the Armed Services Committee of the 
Senate, the Subcommittee on Defense of the Committee on Appro-
priations of the Senate, and the Subcommittee on Defense of the 
Committee on Appropriations of the House of Representatives. 
SEC. 8032. During the current fiscal year, the Department 
of Defense may acquire the modification, depot maintenance and 
repair of aircraft, vehicles and vessels as well as the production 
of components and other Defense-related articles, through competi-
tion between Department of Defense depot maintenance activities 
and private firms: Provided, That the Senior Acquisition Executive 
Certification. 
of the military department or defense agency concerned, with power 
of delegation, shall certify that successful bids include comparable 
estimates of all direct and indirect costs for both public and private 
bids: Provided further, That Office of Management and Budget 
116 STAT. 1544 
PUBLIC LAW 107-248—OCT. 23, 2002 
41 u s e lOb-2. 
Reports. 
President. 
10 u s e 221 note. 
Circular A-76 shall not apply to competitions conducted under 
this section. 
SEC. 8033. (a)(1) If the Secretary of Defense, after consultation 
with the United States Trade Representative, determines that a 
foreign country which is party to an agreement described in para-
graph (2) has violated the terms of the agreement by discriminating 
against certain types of products produced in the United States 
that are covered by the agreement, the Secretary of Defense shall 
rescind the Secretary's blanket waiver of the Buy American Act 
with respect to such types of products produced in that foreign 
country. 
(2) An agreement referred to in paragraph (1) is any reciprocal 
defense procurement memorandum of understanding, between the 
United States and a foreign country pursuant to which the Secretary 
of Defense has prospectively waived the Buy American Act for 
certain products in that country. 
(b) The Secretary of Defense shall submit to the Congress 
a report on the amount of Department of Defense purchases from 
foreign entities in fiscal year 2003. Such report shall separately 
indicate the dollar value of items for which the Buy American 
Act was waived pursuant to any agreement described in subsection 
(a)(2), the Trade Agreement Act of 1979 (19 U.S.C. 2501 et seq.), 
or any international agreement to which the United States is a 
party. 
(c) For purposes of this section, the term "Buy American Act" 
means title III of the Act entitled "An Act making appropriations 
for the Treasury and Post Office Departments for the fiscal year 
ending June 30, 1934, and for other purposes", approved March 
3, 1933 (41 U.S.C. 10a et seq.). 
SEC. 8034. Appropriations contained in this Act that remain 
available at the end of the current fiscal year as a result of energy 
cost savings realized by the Department of Defense shall remain 
available for obligation for the next fiscal year to the extent, and 
for the purposes, provided in section 2865 of title 10, United States 
Code. 
(INCLUDING TRANSFER OF FUNDS) 
SEC. 8035. Amounts deposited during the current fiscal year 
to the special account established under 40 U.S.C. 485(h)(2) and 
to the special account established under 10 U.S.C. 2667(d)(1) are 
appropriated and shall be available until transferred by the Sec-
retary of Defense to current applicable appropriations or funds 
of the Department of Defense under the terms and conditions 
specified by 40 U.S.C. 485(h)(2)(A) and (B) and 10 U.S.C. 
2667(d)(1)(B), to be merged with and to be available for the same 
time period and the same purposes as the appropriation to which 
transferred. 
SEC. 8036. The President shall include with each budget for 
a fiscal year submitted to the Congress under section 1105 of 
title 31, United States Code, materials that shall identify clearly 
and separately the amounts requested in the budget for appropria-
tion for that fiscal year for salaries and expenses related to adminis-
trative activities of the Department of Defense, the military depart-
ments, and the defense agencies. 
SEC. 8037. Notwithstanding any other provision of law, funds 
available for "Drug Interdiction and Counter-Drug Activities, 
Defense" may be obligated for the Young Marines program. 
PUBLIC LAW 107-248—OCT. 23, 2002 
116 STAT. 1545 
(INCLUDING TRANSFER OF FUNDS) 
SEC. 8038. During the current fiscal year, amounts contained 
in the Department of Defense Overseas MiHtary FaciUty Investment 
Recovery Account estabhshed by section 2921(c)(1) of the National 
Defense Authorization Act of 1991 (Public Law 101-510; 10 U.S.C. 
2687 note) shall be available until expended for the payments 
specified by section 2921(c)(2) of that Act. 
SEC. 8039. (a) IN GENERAL.—Notwithstanding any other provi- State listing, 
sion of law, the Secretary of the Air Force may convey at no 
cost to the Air Force, without consideration, to Indian tribes located 
in the States of North Dakota, South Dakota, Montana, and Min-
nesota relocatable military housing units located at Grand Forks 
Air Force Base and Minot Air Force Base that are excess to the 
needs of the Air Force. 
(b) PROCESSING OF REQUESTS.—The Secretary of the Air Force 
shall convey, at no cost to the Air Force, military housing units 
under subsection (a) in accordance with the request for such units 
that are submitted to the Secretary by the Operation Walking 
Shield Program on behalf of Indian tribes located in the States 
of North Dakota, South Dakota, Montana, and Minnesota. 
(c) RESOLUTION OF HOUSING UNIT CONFLICTS.—The Operation 
Walking Shield program shall resolve any conflicts among requests 
of Indian tribes for housing units under subsection (a) before 
submitting requests to the Secret£u:y of the Air Force under sub-
section (b). 
(d) INDLW TRIBE DEFINED.—In this section, the term "Indian 
tribe" means any recognized Indian tribe included on the current 
list published by the Secretary of the Interior under section 104 
of the Federally Recognized Indian Tribe Act of 1994 (Public Law 
103-454; 108 Stat. 4792; 25 U.S.C. 479a-l). 
SEC. 8040. During the current fiscal year, appropriations which 
are available to the Department of Defense for operation and 
maintenance may be used to purchase items having an investment 
item unit cost of not more than $100,000. 
SEC. 8041. (a) During the current fiscal year, none of the 
appropriations or funds available to the Department of Defense 
Working Capital Funds shall be used for the purchase of an invest-
ment item for the purpose of acquiring a new inventory item for 
sale or anticipated sale during the current fiscal year or a subse-
quent fiscal year to customers of the Department of Defense 
Working Capital Funds if such an item would not have been charge-
able to the Department of Defense Business Operations Fund during 
fiscal year 1994 and if the purchase of such an investment item 
would be chargeable during the current fiscal year to appropriations 
made to the Department of Defense for procurement. 
(b) The fiscal year 2004 budget request for the Department 
of Defense as well as all justification material and other documenta-
tion supporting the fiscal year 2004 Department of Defense budget 
shall be prepared and submitted to the Congress on the basis 
that any equipment which was classified as an end item and funded 
in a procurement appropriation contained in this Act shall be budg-
eted for in a proposed fiscal year 2004 procurement appropriation 
and not in the supply management business area or any other 
area or category of the Department of Defense Working Capital 
Funds. 
116 STAT. 1546 
PUBLIC LAW 107-248—OCT. 23, 2002 
SEC. 8042. None of the funds appropriated by this Act for 
programs of the Central IntelUgence Agency shall remain available 
for obligation beyond the current fiscal year, except for funds appro-
priated for the Reserve for Contingencies, which shall remain avail-
50USC403U 
able until September 30, 2004: Provided, That funds appropriated, 
note. 
transferred, or otherwise credited to the Central Intelligence Agency 
Central Services Working Capital Fund during this or any prior 
or subsequent fiscal year shall remain available until expended: 
Provided further, 
That any funds appropriated or transferred to 
the Central Intelligence Agency for agent operations and for covert 
action programs authorized by the President under section 503 
of the National Security Act of 1947, as amended, shall remain 
available until September 30, 2004. 
SEC. 8043. Notwithstanding any other provision of law, funds 
made available in this Act for the Defense Intelligence Agency 
may be used for the design, development, and deployment of Gen-
eral Defense Intelligence Program intelligence communications and 
intelligence information systems for the Services, the Unified and 
Specified Commands, and the component commands. 
SEC. 8044. Of the funds appropriated to the Department of 
Defense under the heading "Operation and Maintenance, Defense-
Wide", not less than $10,000,000 shall be made available only 
for the mitigation of environmental impacts, including training 
and technical assistance to tribes, related administrative support, 
the gathering of information, documenting of environmental dam-
age, and developing a system for prioritization of mitigation and 
cost to complete estimates for mitigation, on Indian lands resulting 
from Department of Defense activities. 
SEC. 8045. Of the funds made available in this Act, not less 
than $68,900,000 shall be available to maintain an attrition reserve 
force of 18 B-52 aircraft, of which $3,700,000 shall be available 
from "Military Personnel, Air Force", $40,000,000 shall be available 
from "Operation and Maintenance, Air Force", and $25,200,000 
shall be available from "Aircraft Procurement, Air Force": Provided, 
That the Secretary of the Air Force shall maintain a total force 
of 94 B-52 aircraft, including 18 attrition reserve aircraft, during 
fiscal year 2003: Provided further, That the Secretary of Defense 
shall include in the Air Force budget request for fiscal year 2004 
amounts sufficient to maintain a B-52 force totaling 94 aircraft. 
SEC. 8046. (a) None of the funds appropriated in this Act 
may be expended by an entity of the Department of Defense unless 
the entity, in expending the funds, complies with the Buy American 
Act. For purposes of this subsection, the term "Buy American Act" 
means title III of the Act entitled "An Act making appropriations 
for the Treasury and Post Office Departments for the fiscal year 
ending June 30, 1934, and for other purposes", approved March 
3, 1933 (41 U.S.C. 10a et seq.). 
(b) If the Secretary of Defense determines that a person has 
been convicted of intentionally affixing a label bearing a "Made 
in America" inscription to any product sold in or shipped to the 
United States that is not made in America, the Secretary shall 
determine, in accordance with section 2410f of title 10, United 
States Code, whether the person should be debarred from con-
tracting with the Department of Defense. 
(c) In the case of any equipment or products purchased with 
appropriations provided under this Act, it is the sense of the Con-
gress that any entity of the Department of Defense, in expending 
PUBLIC LAW 107-248—OCT. 23, 2002 
116 STAT. 1547 
the appropriation, purchase only American-made equipment and 
products, provided that American-made equipment and products 
are cost-competitive, quality-competitive, and available in a timely 
fashion. 
SEC. 8047. None of the funds appropriated by this Act shall 
be available for a contract for studies, analysis, or consulting serv-
ices entered into without competition on the basis of an unsolicited 
proposal unless the head of the activity responsible for the procure-
ment determines— 
(1) as a result of thorough technical evaluation, only one 
source is found fully qualified to perform the proposed work; 
(2) the purpose of the contract is to explore an unsolicited 
proposal which offers significant scientific or technological 
promise, represents the product of original thinking, and was 
submitted in confidence by one source; or 
(3) the purpose of the contract is to take advantage of 
unique and significant industrial accomplishment by a specific 
concern, or to insure that a new product or idea of a specific 
concern is given financial support: 
Provided, That this limitation shall not apply to contracts in an 
amount of less than $25,000, contracts related to improvements 
of equipment that is in development or production, or contracts 
as to which a civilian official of the Department of Defense, who 
has been confirmed by the Senate, determines that the award 
of such contract is in the interest of the national defense. 
SEC. 8048. (a) Except as provided in subsections (b) and (c), 
none of the funds made available by this Act may be used— 
(1) to establish a field operating agency; or 
(2) to pay the basic pay of a member of the Armed Forces 
or civilian employee of the department who is transferred or 
reassigned from a headquarters activity if the member or 
employee's place of duty remains at the location of that head-
quarters. 
(b) The Secretary of Defense or Secretary of a military depart-
ment may waive the limitations in subsection (a), on a case-by-
case basis, if the Secretary determines, and certifies to the Commit-
tees on Appropriations of the House of Representatives and Senate 
that the granting of the waiver will reduce the personnel require-
ments or the financial requirements of the department. 
(c) This section does not apply to field operating agencies funded 
within the National Foreign Intelligence Program. 
SEC. 8049. Notwithstanding section 303 of Public Law 96-
487 or any other provision of law, the Secretary of the Navy is 
authorized to lease real and personal property at Naval Air Facility, 
Adak, Alaska, pursuant to 10 U.S.C. 2667(f), for commercial, indus-
trial or other purposes: Provided, That notwithstanding any other 
provision of law, the Secretary of the Navy may remove hazardous 
materials from facilities, buildings, and structures at Adak, Alaska, 
and may demolish or otherwise dispose of such facilities, buildings, 
and structures. 
(RESCISSIONS) 
SEC. 8050. Of the funds appropriated in Department of Defense 
Appropriations Acts, the following funds are hereby rescinded from 
the following accounts and programs in the specified amounts: 
"Procurement of Weapons and Tracked Combat Vehicles, 
Army, 2001/2003", $9,500,000; 
116 STAT. 1548 
PUBLIC LAW 107-248—OCT. 23, 2002 
"Procurement 
of 
Ammunition, 
Army, 
2001/2003", 
$4,000,000; 
"Other Procurement, Army, 2001/2003", $8,000,000; 
"Other Procurement, Navy, 2001^2003", $5,000,000; 
"Missile Procurement, Air Force, 200172003", $93,600,000; 
"Missile Procurement, Army, 2002/2004", $37,650,000; 
"Procurement 
of 
Ammunition, 
Army, 
2002/2004", 
$19,000,000; 
"Other Procurement, Army, 2002/2004", $21,200,000; 
"Missile Procurement, Air Force, 2002/2004", $114,600,000; 
"Research, Development, Test and Evaluation, Navy, 2002/ 
2003", $1,700,000; 
"Research, Development, Test and Evaluation, Air Force, 
2002/2003", $69,000,000; and 
"Research, Development, Test and Evaluation, Defense-
Wide, 2002/2003", $19,500,000. 
SEC. 8051. None of the funds available in this Act may be 
used to reduce the authorized positions for military (civilian) techni-
cians of the Army National Guard, the Air National Guard, Army 
Reserve and Air Force Reserve for the purpose of applying any 
administratively imposed civilian personnel ceiling, freeze, or reduc-
tion on military (civilian) technicians, unless such reductions are 
a direct result of a reduction in military force structure. 
SEC. 8052. None of the funds appropriated or otherwise made 
available in this Act may be obligated or expended for assistance 
to the Democratic People's Republic of North Korea unless specifi-
cally appropriated for that purpose. 
SEC. 8053. During the current fiscal year, funds appropriated 
in this Act are available to compensate members of the National 
Guard for duty performed pursuant to a plan submitted by a Gov-
ernor of a State and approved by the Secretary of Defense under 
section 112 of title 32, United States Code: Provided, That during 
the performance of such duty, the members of the National Guard 
shall be under State command and control: Provided further, That 
such duty shall be treated as full-time National Guard duty for 
purposes of sections 12602(a)(2) and (b)(2) of title 10, United States 
Code. 
SEC. 8054. Funds appropriated in this Act for operation and 
maintenance of the Military Departments, Combatant Commands 
and Defense Agencies shall be available for reimbursement of pay, 
allowances and other expenses which would otherwise be incurred 
against appropriations for the National Guard and Reserve when 
members of the National Guard and Reserve provide intelligence 
or counterintelligence support to Combatant Commands, Defense 
Agencies and Joint Intelligence Activities, including the activities 
and programs included within the National Foreign Intelligence 
Program (NFIP), the Joint Military Intelligence Program (JMIP), 
and the Tactical Intelligence and Related Activities (TIARA) aggre-
gate: Provided, That nothing in this section authorizes deviation 
from established Reserve and National Guard personnel and 
training procedures. 
SEC. 8055. During the current fiscal year, none of the funds 
appropriated in this Act may be used to reduce the civilian medical 
and medical support personnel assigned to military treatment facili-
ties below the September 30, 2002 level: Provided, That the Service 
Surgeons General may waive this section by certifying to the 
congressional defense committees that the beneficiary population 
PUBLIC LAW 107-248—OCT. 23, 2002 
116 STAT. 1549 
Deadline. 
Notification. 
10 u s e 2674 
note. 
is declining in some catchment areas and civilian strength reduc-
tions may be consistent with responsible resource stewardship and 
capitation-based budgeting. 
SEC. 8056. (a) LIMITATION ON PENTAGON RENOVATION COSTS.— 
Not later than the date each year on which the President submits 
to Congress the budget under section 1105 of title 31, United 
States Code, the Secretary of Defense shall submit to Congress 
a certification that the total cost for the planning, design, construc-
tion, and installation of equipment for the renovation of wedges 
2 through 5 of the Pentagon Reservation, cumulatively, will not 
exceed four times the total cost for the planning, design, construc-
tion, and installation of equipment for the renovation of wedge 
1. 
(b) ANNUAL ADJUSTMENT.—For purposes of applying the limita-
tion in subsection (a), the Secretary shall adjust the cost for the 
renovation of wedge 1 by any increase or decrease in costs attrib-
utable to economic inflation, based on the most recent economic 
assumptions issued by the Office of Management and Budget for 
use in preparation of the budget of the United States under section 
1104 of title 31, United States Code. 
(c) EXCLUSION OF CERTAIN COSTS.—^For purposes of calculating 
the limitation in subsection (a), the total cost for wedges 2 through 
5 shall not include— 
(1) any repair or reconstruction cost incurred as a result 
of the terrorist attack on the Pentagon that occurred on Sep-
tember 11, 2001; 
(2) any increase in costs for wedges 2 through 5 attributable 
to compliance with new requirements of Federal, State, or 
local laws; and 
(3) any increase in costs attributable to additional security 
requirements that the Secretary of Defense considers essential 
to provide a safe and secure working environment. 
(d) CERTIFICATION COST REPORTS.—^As part of the annual cer-
tification under subsection (a), the Secretary shall report the pro-
jected cost (as of the time of the certification) for— 
(1) the renovation of each wedge, including the amount 
adjusted or otherwise excluded for such wedge under the 
authority of paragraphs (2) and (3) of subsection (c) for the 
period covered by the certification; and 
(2) the repair and reconstruction of wedges 1 and 2 in 
response to the terrorist attack on the Pentagon that occurred 
on September 11, 2001. 
(e) DURATION OF CERTIFICATION REQUIREMENT.—The require- Applicability. 
ment to make an annual certification under subsection (a) shall 
apply until the Secretary certifies to Congress that the renovation 
of the Pentagon Reservation is completed. 
SEC. 8057. Notwithstanding any other provision of law, that 
not more than 35 percent of funds provided in this Act for environ-
mental remediation may be obligated under indefinite delivery/ 
indefinite quantity contracts with a total contract value of 
$130,000,000 or higher. 
SEC. 8058. (a) None of the funds available to the Department 
of Defense for any fiscal year for drug interdiction or counter-
drug activities may be transferred to any other department or 
agency of the United States except as specifically provided in an 
appropriations law. 
10 u s e 374 note. 
116 STAT. 1550 
PUBLIC LAW 107-248—OCT. 23, 2002 
50 use 403f 
note. 
Applicability. 
(b) None of the funds available to the Central Intelligence 
Agency for any fiscal year for drug interdiction and counter-drug 
activities may be transferred to any other department or agency 
of the United States except as specifically provided in an appropria-
tions law. 
(TRANSFER OF FUNDS) 
SEC. 8059. Appropriations available in this Act under the 
heading "Operation and Maintenance, Defense-Wide" for increasing 
energy and water efficiency in Federal buildings may, during their 
period of availability, be transferred to other appropriations or 
funds of the Department of Defense for projects related to increasing 
energy and water efficiency, to be merged with and to be available 
for the same general purposes, and for the same time period, 
as the appropriation or fund to which transferred. 
SEC. 8060. None of the funds appropriated by this Act may 
be used for the procurement of ball and roller bearings other than 
those produced by a domestic source and of domestic origin: Pro-
vided, That the Secretary of the military department responsible 
for such procurement may waive this restriction on a case-by-
case basis by certifying in writing to the Committees on Appropria-
tions 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 pur-
poses: Provided further, That this restriction shall not apply to 
the purchase of "commercial items", as defined by section 4(12) 
of the Office of Federal Procurement Policy Act, except that the 
restriction shall apply to ball or roller bearings purchased as end 
items. 
SEC. 8061. Notwithstanding any other provision of law, funds 
available to the Department of Defense shall be made available 
to provide transportation of medical supplies and equipment, on 
a nonreimbursable basis, to American Samoa, and funds available 
to the Department of Defense shall be made available to provide 
transportation of medical supplies and equipment, on a non-
reimbursable basis, to the Indian Health Service when it is in 
conjunction with a civil-military project. 
SEC. 8062. None of the funds in this Act may be used to 
purchase any supercomputer which is not manufactured in the 
United States, unless the Secretary of Defense certifies to the 
congressional defense committees that such an acquisition must 
be made in order to acquire capability for national security purposes 
that is not available from United States manufacturers. 
SEC. 8063. Notwithstanding any other provision of law, the 
Naval shipyards of the United States shall be eligible to participate 
in any manufacturing extension program financed by funds appro-
priated in this or any other Act. 
SEC. 8064. Notwithstanding any other provision of law, each 
contract awarded by the Department of Defense during the current 
fiscal year for construction or service performed in whole or in 
part in a State (as defined in section 381(d) of title 10, United 
States Code) which is not contiguous with another State and has 
an unemployment rate in excess of the national average rate of 
unemployment 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 
PUBLIC LAW 107-248—OCT. 23, 2002 
116 STAT. 1551 
that is not contiguous with another State, individuals 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 require-
ments of this section, on a case-by-case basis, in the interest of 
national security. 
SEC. 8065. (a) 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 approves or implements 
the 
transfer 
of administrative 
responsibilities 
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 without the express authorization of Congress: Provided, That 
this limitation shall not apply to transfers of funds expressly pro-
vided for in Defense Appropriations Acts, or provisions of Acts 
providing supplemental appropriations for the Department of 
Defense. 
(b) None of the funds in this or any other Act may be used 
to dismantle national memorials commemorating United States 
participation in World War L 
SEC. 8066. (a) LIMITATION ON TRANSFER OF DEFENSE ARTICLES Notice. 
AND SERVICES.—Notwithstanding any other provision of law, none 
of the funds available to the 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 defense commit-
tees, the Committee on International Relations 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— 
Applicability. 
(1) any international peacekeeping or peace-enforcement 
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-enforce-
ment, 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 equipment or 
supplies— 
(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 
transferred have been met; and 
(B) a statement of whether the items proposed to be 
transferred will have to be replaced and, if so, how the 
President proposes to provide funds for such replacement. 
SEC. 8067. 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 
99-194 O - 03 - 25 : QL 3 Part 2 
116 STAT. 1552 
PUBLIC LAW 107-248—OCT. 23, 2002 
authority of this section may not exceed $15,000,000,000: Provided 
further, That the exposure fees charged and collected by the Sec-
retary for each guarantee shall be paid by the country involved 
and shall not be financed as part of a loan guaranteed by the 
Reports. 
United States: Provided further, That the Secretary shall provide 
quarterly reports to the Committees on Appropriations, Armed Serv-
ices, and Foreign Relations of the Senate and the Committees 
on Appropriations, Armed Services, and International Relations 
in the House of Representatives on the implementation of this 
program: Provided further. That amounts charged for administra-
tive fees and deposited to the special account provided for under 
section 2540c(d) of title 10, shall be available for paying the costs 
of administrative expenses of the Department of Defense that are 
attributable to the loan guarantee program under subchapter VI 
of chapter 148 of title 10, United States Code. 
SEC. 8068. None of the funds available to the Department 
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 associated 
with a business combination. 
SEC. 8069. (a) None of the funds appropriated or otherwise 
made available in this Act may be used to transport or provide 
for the transportation of chemical munitions or agents to the John-
ston Atoll for the purpose of storing or demilitarizing such muni-
tions 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. 
(INCLUDING TRANSFER OF FUNDS) 
SEC. 8070. 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 personnel in connection with support and services for eligible 
organizations and activities outside the Department of Defense 
pursuant to section 2012 of title 10, United States Code. 
SEC. 8071. 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 expired or which has closed 
under the provisions of section 1552 of title 31, United States 
Code, and which has a negative unliquidated or unexpended bal-
ance, an obligation 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 availability or closing of that account; 
PUBLIC LAW 107-248—OCT. 23, 2002 
116 STAT. 1553 
(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 obligation is 
not chargeable to a current appropriation of the Department 
of Defense under the provisions of section 1405(b)(8) of the 
National Defense Authorization Act for Fiscal Year 1991, Public 
Law 101-510, as amended (31 U.S.C. 1551 note): Provided, 
That in the case of an expired account, if subsequent review 
or investigation discloses that there was not in fact a negative 
unliquidated or unexpended balance in the account, any charge 
to a current account under the authority of this section shall 
be reversed and recorded against the expired account: Provided 
further. That the total amount charged to a current appropria-
tion under this section may not exceed an amount equal to 
1 percent of the total appropriation for that account. 
SEC. 8072. 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 
administration costs includes all in-house Government cost. 
SEC. 8073. During the current fiscal year and hereafter, the 
10 USC note 
Secretary of Defense may waive reimbursement of the cost of con- p
i
*
e
c
- 2161. 
ferences, seminars, courses of instruction, or similar educational 
activities of the Asia-Pacific Center for Security Studies for military 
officers and civilian officials of foreign nations if the Secretary 
determines that attendance by such personnel, without reimburse-
ment, is in the national security interest of the United States: 
Provided, That costs for which reimbursement is waived pursuant 
to this section shall be paid from appropriations available for the 
Asia-Pacific Center. 
SEC. 8074. (a) Notwithstanding any other provision of law, 
the Chief of the National Guard Bureau may permit the use of 
equipment of the National Guard Distance Learning Project by 
any person or entity on a space-available, 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 Distance 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. 8075. 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 Kaiserslautem Military Community in the Federal Republic 
of Germany: Provided, That in the City of Kaiserslautem such 
agreements will include the use of United States anthracite as 
the base load energy for municipal district heat to the United 
States Defense installations: Provided further. That at Landstuhl 
Army Regional Medical Center and Ramstein Air Base, furnished 
heat may be obtained from private, regional or municipal services, 
if provisions are included for the consideration of United States 
coal as an energy source. 
116 STAT. 1554 
PUBLIC LAW 107-248—OCT. 23, 2002 
SEC. 8076. None of the funds appropriated in title IV of this 
Act may be used to procure end-items for dehvery to military 
forces for operational training, operational use or inventory require-
ments: Provided, That this restriction 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 Representatives and the Senate that it is in the 
national security interest to do so. 
SEC. 8077. 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. 8078. (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 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 country. 
Applicability. 
(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 application of a waiver granted under subsection 
(a). 
(c) Subsection (a) does not apply to a limitation regarding 
construction of public vessels, ball and roller bearings, 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 through 7229, 7304.41 through 7304.49, 7306.40, 7502 through 
7508, 8105, 8108, 8109, 8211, 8215, and 9404. 
SEC. 8079. Funds made available to the Civil Air Patrol in 
this Act under the heading "Drug Interdiction and Counter-Drug 
Activities, Defense" may be used for the Civil Air Patrol Corpora-
tion's counterdrug program, including its demand reduction pro-
gram involving youth programs, as well as operational and training 
drug reconnaissance missions for Federal, State, and local govern-
ment agencies; and for equipment needed for mission support or 
performance: Provided, That the Department of the Air Force should 
waive reimbursement from the Federal, State, and local government 
agencies for the use of these funds. 
SEC. 8080. (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 received 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. 
PUBLIC LAW 107-248—OCT. 23, 2002 
116 STAT. 1555 
(b) MONITORING.—The Secretary of Defense, in consultation 
with the Secretary of State, shall ensure that prior to a decision 
to conduct any training program referred 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 
security forces. 
(c) WAIVER.—The Secretary of Defense, after consultation with 
the Secretary of State, may waive the prohibition in subsection 
(a) if he determines that such waiver is required by extraordinary 
circumstances. 
(d) REPORT.—Not more than 15 days after the exercise of any Deadline, 
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 involved in the training program, and the information 
relating to human rights violations that necessitates the waiver. 
SEC. 8081. The Secretary of Defense, in coordination with the 
Secretary of Health and Human Services, may carry out a program 
to distribute surplus dental equipment of the Department of 
Defense, at no cost to the Department of Defense, to Indian Health 
Service facilities and to federally-qualified health centers (within 
the meaning of section 1905(1)(2)(B) of the Social Security Act 
(42 U.S.C. 1396d(l)(2)(B))). 
SEC. 8082. The total amount appropriated in this Act is hereby 
reduced by $338,000,000 to reflect savings from favorable foreign 
currency fluctuations, to be derived as follows: 
"Military Personnel, Army", $80,000,000; 
"Military Personnel, Navy", $6,500,000; 
"Military Personnel, Marine Corps", $11,000,000; 
"Military Personnel, Air Force", $29,000,000; 
"Operation and Maintenance, Army", $102,000,000; 
"Operation and Maintenance, Navy", $21,500,000; 
"Operation and Maintenance, Marine Corps", $2,000,000; 
"Operation and Maintenance, Air Force", $46,000,000; and 
"Operation and Maintenance, Defense-Wide", $40,000,000. 
SEC. 8083. 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 propul-
sion diesel engines and propulsors are manufactured in the United 
States by a domestically operated entity: Provided, That the Sec-
retary 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 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. 8084. None of the funds appropriated or otherwise made 
available by this or other Department of Defense Appropriations 
Acts may be obligated or expended for the purpose of performing 
repairs or maintenance to military family housing units of the 
Department of Defense, including areas in such military family 
housing units that may be used for the purpose of conducting 
official Department of Defense business. 
SEC. 8085. Notwithstanding any other provision of law, funds 
appropriated in this Act under the heading "Research, Development, 
116 STAT. 1556 
PUBLIC LAW 107-248—OCT. 23, 2002 
Test and Evaluation, Defense-Wide" for any advanced concept tech-
nology demonstration project may only be obligated 30 days after 
a report, including a description of the project and its estimated 
annual and total cost, has been provided in writing to the congres-
sional defense committees: Provided, That the Secretary 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. 8086. Notwithstanding any other provision of law, for 
the purpose of establishing all Department of Defense policies gov-
erning 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 super-
vision 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 survivors, have access to all 
medically necessary health care through the health care delivery 
system of the military 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 payment 
of medically necessary services and shall not be considered as 
secondarily liable to title XIX of the Social Security Act, other 
welfare programs or charity based care. 
SEC. 8087. During the current fiscal year, refunds attributable 
to the use of the Government travel card, refunds attributable 
to the use of the Government Purchase Card and refunds attrib-
utable to official Government travel arranged by Government Con-
tracted Travel Management Centers may be credited to operation 
and maintenance accounts of the Department of Defense which 
are current when the refunds are received. 
SEC. 8088. (a) REGISTERING FINANCIAL MANAGEMENT INFORMA-
TION 
TECHNOLOGY SYSTEMS WITH 
D O D 
CHIEF INFORMATION 
OFFICER.—None of the funds appropriated in this Act may be used 
for a mission critical or mission essential financial management 
information technology system (including a system funded by the 
defense 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 financial management information technology system shall be 
considered a mission critical or mission essential information tech-
nology system as defined by the Under Secretary of Defense (Comp-
troller). 
(b) 
CERTIFICATIONS AS 
TO 
COMPLIANCE WITH 
FINANCIAL 
MANAGEMENT MODERNIZATION PLAN.— 
(1) During the current fiscal year, a financial management 
major automated information system may not receive Milestone 
A approval, Milestone B approval, or full rate production, or 
their equivalent, within the Department of Defense until the 
Under Secretary of Defense (Comptroller) certifies, with respect 
to that milestone, that the system is being developed and 
managed in accordance with the Department's 
Financial 
Management Modernization Plan. The Under Secretary of 
PUBLIC LAW 107-248—OCT. 23, 2002 
116 STAT. 1557 
Defense (Comptroller) may require additional certifications, as 
appropriate, with respect to any such system. 
(2) The Chief Information Officer shall provide the congres- Notification, 
sional defense committees timely notification of certifications 
under paragraph (1). 
(c) CERTIFICATIONS AS TO COMPLIANCE WITH CLINGER-COHEN 
ACT.—(1) During the current fiscal year, a major automated 
information system may not receive Milestone A approval. Milestone 
B approval, or full rate production approval, or their equivalent, 
within the Department of Defense until the Chief Information 
Officer certifies, with respect to that milestone, that the system 
is being developed in accordance with the Clinger-Cohen Act of 
1996 (40 U.S.C. 1401 et seq.). The Chief Information Officer may 
require additional certifications, as appropriate, with respect to 
any such system. 
(2) The Chief Information Officer shall provide the congres- Notification. 
sional defense committees timely notification of certifications under 
paragraph (1). Each such notification shall include, at a minimum, 
the funding baseline and milestone schedule for each system covered 
by such a certification and confirmation that the following steps 
have been taken with respect to the system: 
(A) Business process reengineering. 
(B) An analysis of alternatives. 
(C) An economic analysis that includes a calculation of the 
return on investment. 
(D) Performance measures. 
(E) An information assurance strategy consistent with the 
Department's Global Information Grid. 
(d) DEFINITIONS.—For purposes of this section: 
(1) The term "Chief Information Officer" means the senior 
official of the Department of Defense designated by the Sec-
retary of Defense pursuant to section 3506 of title 44, United 
States Code. 
(2) The term "information technology system" has the 
meaning given the term "information technology" 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 Department of Defense Direc-
tive 5000.1. 
SEC. 8089. 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 than 90 days in arrears 
in making payment to the Department 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 department 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 authority: 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. 8090. 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 nomenclature designation of "armor 
116 STAT. 1558 
PUBLIC LAW 107-248—OCT. 23, 2002 
Alcohol and 
alcoholic 
beverages. 
10 u s e 2488 
note. 
Applicability. 
Regulations. 
10 u s e 182 note. 
penetrator", "armor piercing (AP)", "armor piercing incendiary 
(API)", or "armor-piercing incendiary-tracer (API-T)", except to an 
entity performing demilitarization services for the Department 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) rendered incapable of reuse by the demili-
tarization process; or (2) used to manufacture ammunition pursuant 
to a contract with the Department of Defense or the manufacture 
of ammunition for export pursuant to a License for Permanent 
Export of Unclassified Military Articles issued by the Department 
of State. 
SEC. 8091. Notwithstanding any other provision of law, the 
Chief of the National Guard Bureau, or his designee, may waive 
payment of all or part of the consideration 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 fraternal 
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. 8092. 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 
Columbia, 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, purchases may be 
made in any State in which the installation is located: Provided 
further, That such local procurement requirements for malt bev-
erages and wine shall apply to all alcoholic beverages only for 
military installations 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. 8093. During the current fiscal year and hereafter, under 
regulations prescribed by the Secretary of Defense, the Center 
of Excellence for Disaster Management and Humanitarian Assist-
ance may also pay, or authorize payment for, the expenses of 
providing or facilitating education and training for appropriate mili-
tary and civilian personnel of foreign countries in disaster manage-
ment, peace operations, and humanitarian assistance. 
SEC. 8094. (a) The Department of Defense is authorized to 
enter into agreements with the Department of Veterans Affairs 
and federally-funded health agencies providing services to Native 
Hawaiians for the purpose of establishing a partnership similar 
to the Alaska Federal Health Care Partnership, in order to maxi-
mize Federal resources in the provision of health care services 
by federally-funded health agencies, applying telemedicine tech-
nologies. 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 develop a con-
sultation policy, consistent with Executive Order No. 13084 (issued 
PUBLIC LAW 107-248—OCT. 23, 2002 
116 STAT. 1559 
May 14, 1998), with Native Hawaiians for the purpose of assuring 
maximum Native Hawaiian participation in the direction and 
administration of governmental services so as to render those serv-
ices 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 exercised sovereignty in the area 
that now comprises the State of Hawaii. 
(INCLUDING TRANSFER OF FUNDS) 
SEC. 8095. Of the amounts appropriated in this Act under 
the heading "Research, Development, Test and Evaluation, Defense-
Wide", $136,000,000 shall be made available for the Arrow missile 
defense program: Provided, That of this amount, $66,000,000 shall 
be available for the purpose of continuing the Arrow System 
Improvement Program (ASIP), and $70,000,000 shall be available 
for the purpose of producing Arrow missile components in the 
United States and Arrow missile components and missiles in Israel 
to meet Israel's defense requirements, consistent with each nation's 
laws, regulations and procedures: Provided further, That funds 
made available under this provision for production of missiles and 
missile components may be transferred to appropriations available 
for the procurement of weapons and equipment, to be merged with 
and to be available for the same time period and the same purposes 
as the appropriation to which transferred: Provided further. That 
the transfer authority provided under this provision is in addition 
to any other transfer authority contained in this Act. 
SEC. 8096. Funds available to the Department of Defense for 
the Global Positioning System during the current fiscal year may 
be used to fund civil requirements associated with the satellite 
and ground control segments of such system's modernization pro-
gram. 
(INCLUDING TRANSFER OF FUNDS) 
SEC. 8097. Of the amounts appropriated in this Act under 
the 
heading, 
"Operation 
and 
Maintenance, 
Defense-Wide", 
$68,000,000 shall remain available until expended: Provided, That 
notwithstanding any other provision of law, the Secretary of Defense 
is authorized to transfer such funds to other activities of the Federal 
Government. 
SEC. 8098. Section 8106 of the Department of Defense Appro- Applicability, 
priations Act, 1997 (titles I through VIII of the matter under 
10 USC113 note, 
subsection 101(b) of Public Law 104-208; 110 Stat. 3009-111; 10 
U.S.C. 113 note) shall continue in effect to apply to disbursements 
that are made by the Department of Defense in fiscal year 2003. 
SEC. 8099. In addition to amounts provided in this Act, 
$1,700,000 is hereby appropriated for "Defense Health Program", 
to remain available for obligation until expended: Provided, That 
notwithstanding any other provision 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 confronted 
with the illness or hospitalization of an eligible military beneficiary. 
SEC. 8100. Notwithstanding any other provision of this Act, 
the total amount appropriated in this Act is hereby reduced by 
116 STAT. 1560 
PUBLIC LAW 107-248—OCT. 23, 2002 
$850,000,000, to reflect savings to be achieved from business process 
reforms, management efficiencies, and procurement of administra-
tive and management support, to be distributed as follows: 
"Operation and Maintenance, Army", $26,000,000; 
"Operation and Maintenance, Navy", $60,300,000; 
"Operation and Maintenance, Marine Corps", $8,400,000; 
"Operation and Maintenance, Air Force", $91,200,000; 
"Operation and Maintenance, Defense-Wide", $199,000,000; 
"Operation and Maintenance, Army Reserve", $5,900,000; 
"Operation and Maintenance, Marine Corps Reserve", 
$900,000; 
"Operation 
and 
Maintenance, 
Air 
Force 
Reserve", 
$1,000,000; 
"Operation and Maintenance, Army National Guard", 
$4,300,000; 
"Operation 
and 
Maintenance, 
Air 
National 
Guard", 
$2,600,000; 
"Aircraft Procurement, Army", $3,700,000; 
"Missile Procurement, Army", $1,100,000; 
"Procurement of Weapons and Tracked Combat Vehicles, 
Army", $3,100,000; 
"Other Procurement, Army", $17,700,000; 
"Aircraft Procurement, Navy", $22,800,000; 
"Weapons Procurement, Navy", $4,800,000; 
"Procurement of Ammunition, Navy and Marine Corps", 
$1,000,000; 
"Shipbuilding and Conversion, Navy", $15,700,000; 
"Other Procurement, Navy", $7,200,000; 
"Procurement, Marine Corps", $2,600,000; 
"Aircraft Procurement, Air Force", $9,700,000; 
"Missile Procurement, Air Force", $6,200,000; 
"Other Procurement, Air Force", $6,200,000; 
"Procurement, Defense-Wide", $1,200,000; 
"Research, Development, Test and Evaluation, Army", 
$23,500,000; 
"Research, Development, Test and Evaluation, Navy", 
$55,700,000; 
"Research, Development, Test and Evaluation, Air Force", 
$66,200,000; 
"Research, Development, Test and Evaluation, Defense-
Wide", $154,000,000; 
"Operational Test and Evaluation, Defense", $5,000,000; 
"National Defense Sealift Fund", $1,000,000; 
"Defense Health Program", $12,000,000; 
"Chemical Agents and Munitions Destruction, Army", 
$20,000,000; and 
"Drug Interdiction and Counter-Drug Activities, Defense", 
$10,000,000: 
Applicability. 
Provided, That these reductions shall be applied proportionally 
to each budget activity, activity group and subactivity group and 
each program, project, and activity within each appropriation 
account: Provided further, That none of the funds provided in this 
Act may be used for consulting and advisory services for legislative 
affairs and legislative liaison functions. 
PUBLIC LAW 107-248—OCT. 23, 2002 
116 STAT. 1561 
(INCLUDING TRANSFER OF FUNDS) 
SEC. 8101. Of the amounts appropriated in this Act under 
the heading "Shipbuilding and Conversion, Navy", $1,279,899,000 
shall be available until September 30, 2003, to fund prior year 
shipbuilding cost increases: Provided, That upon enactment of this 
Act, the Secretary of the Navy 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 as the appropriations to which transferred: 
To: 
Under the heading, "Shipbuilding and Conversion, 
Navy, 1996/03": 
LPD-17 Amphibious Transport Dock Ship Pro-
gram, $300,681,000; 
Under the heading, "Shipbuilding and Conversion, 
Navy, 1998/03": 
DDC-51 Destroyer Program, $76,100,000; 
New SSN, $190,882,000; 
Under the heading, "Shipbuilding and Conversion, 
Navy, 1999/03": 
DDG-51 Destroyer Program, $93,736,000; 
LPD-17 Amphibious Transport Dock Ship Pro-
gram, $82,000,000; 
New SSN, $135,800,000; 
Under the heading, "Shipbuilding and Conversion, 
Navy, 2000/03": 
DDG-51 Destroyer Program, $51,724,000; 
LPD-17 Amphibious Transport Dock Ship Pro-
gram, $187,000,000; 
Under the heading, "Shipbuilding and Conversion, 
Navy, 2001/03": 
DDG-51 Destroyer Program, $63,976,000; and 
Under the heading, "Shipbuilding and Conversion, 
Navy, 2002/03": 
DDG-51 Destroyer Program, $98,000,000. 
SEC. 8102. The Secretary of the Navy may settle, or com-
promise, 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 with-
out regard to the monetary limitations 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 
maintenance. 
SEC. 8103. The total amount appropriated in title II of this 
Act is hereby reduced by $97,000,000, 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", $24,000,000; 
"Operation and Maintenance, Navy", $29,000,000; 
"Operation and Maintenance, Marine Corps", $3,000,000; 
"Operation and Maintenance, Air Force", $27,000,000; and 
"Operation and Maintenance, Defense-Wide", $14,000,000. 
SEC. 8104. Funds provided for the current fiscal year or here-
after for Operation and maintenance for the Armed Forces may 
116 STAT. 1562 
PUBLIC LAW 107-248—OCT. 23, 2002 
Deadline. 
Reports. 
Deadline. 
be used, notwithstanding any other provision of law, for the pur-
chase of ultrahghtweight camouflage net systems as unit spares. 
(INCLUDING TRANSFER OF FUNDS) 
SEC. 8105. During the current fiscal year and for fiscal years 
2004 and 2005, notwithstanding any other provision of law, the 
Secretary of Defense may transfer not more than $20,000,000 of 
unobligated balances remaining in a Research, Development, Test 
and Evaluation, Army appropriation account during the last fiscal 
year before the account closes under section 1552 of title 31 United 
States Code, to a current Research, Development, Test and Evalua-
tion, Army appropriation account to be used only for the continu-
ation of the Venture Capital Fund demonstration, as originally 
approved in Section 8150 of Public Law 107-117, to pursue high 
payoff technology and innovations in science and technology: Pro-
vided, That any such transfer shall be made not later than July 
31 of each year: Provided further. That funds so 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 sec-
tion is in addition to any other transfer authority available to 
the Department of Defense: Provided further. That no funds for 
programs, projects, or activities designated as special congressional 
interest items in DD Form 1414 shall be eligible for transfer under 
the authority of this section: Provided further. That any unobligated 
balances transferred under this authority may be restored to the 
original appropriation if required to cover unexpected upward 
adjustments: Provided further. That the Secretary of the Army 
shall provide an annual report to the House and Senate Appropria-
tions Committees no later than 15 days prior to the annual transfer 
of funds under authority of this section describing the sources 
and amounts of funds proposed to be transfered, summarizing the 
projects funded under this demonstration program (including the 
name and location of project sponsors) to date, a description of 
the major program accomplishments to date, and an overall assess-
ment of the benefits of this demonstration program compared to 
the goals expressed in the legislative history accompanying Section 
8150 of Public Law 107-117. 
SEC. 8106. Notwithstanding any other provision of law or regu-
lation, the Secretary of Defense may exercise the provisions of 
38 U.S.C. 7403(g) for occupations hsted in 38 U.S.C. 7403(a)(2) 
as well as the following: 
Pharmacists, Audiologists, and Dental Hygienists. 
(A) The requirements of 38 U.S.C. 7403(g)(1)(A) shall 
apply. 
(B) The limitations of 38 U.S.C. 7403(g)(1)(B) shall 
not apply. 
SEC. 8107. Funds appropriated by this Act, or made available 
by the transfer of funds in this Act, for intelligence activities are 
deemed to be specifically authorized by the Congress for purposes 
of section 504 of the National Security Act of 1947 (50 U.S.C. 
414) during fiscal year 2003 until the enactment of the Intelligence 
Authorization Act for fiscal year 2003. 
SEC. 8108. In addition to funds made available elsewhere in 
this Act $7,750,000 is hereby appropriated and shall remain avail-
able until expended to provide assistance, by grant or otherwise 
(such as, but not limited to, the provision of funds for repairs, 
PUBLIC LAW 107-248—OCT. 23, 2002 
116 STAT. 1563 
maintenance, construction, and/or for the purchase of information 
technology, text books, teaching resources), to pubhc schools that 
have unusually high concentrations of special needs military 
dependents enrolled: Provided, That in selecting school systems 
to receive such assistance, special consideration shall be given to 
school systems in States that are considered overseas assignments, 
and all schools within these school systems shall be eligible for 
assistance: Provided further, That up to $2,000,000 shall be avail-
able for the Department of Defense to establish a non-profit trust 
fund to assist in the public-private funding of public school repair 
and maintenance projects, or provide directly to non-profit organiza-
tions who in return will use these monies to provide assistance 
in the form of repair, maintenance, or renovation to public school 
systems that have high concentrations of special needs military 
dependents and are located in States that are considered overseas 
assignments, and of which 2 percent shall be available to support 
the administration and execution of the funds: Provided 
further, 
That to the extent a federal agency provides this assistance, by 
contract, grant, or otherwise, it may accept and expend non-federal 
funds in combination with these federal funds to provide assistance 
for the authorized purpose, if the non-federal entity requests such 
assistance and the non-federal funds are provided on a reimbursable 
basis: Provided further. That $2,750,000 shall be available for a 
grant to the Central Kitsap School District, Washington. 
SEC. 8109. Notwithstanding any other provision in this Act, 
the total amount appropriated in this Act is hereby reduced by 
$400,000,000, to reduce cost growth in information technology 
development, to be distributed as follows: 
"Operation and Maintenance, Defense-Wide", $19,500,000; 
"Other Procurement, Army", $53,200,000; 
"Other Procurement, Navy", $20,600,000; 
"Procurement, Marine Corps", $3,400,000; 
"Other Procurement, Air Force", $12,000,000; 
"Procurement, Defense-Wide", $3,500,000; 
"Research, Development, Test and Evaluation, Army", 
$17,700,000; 
"Research, Development, Test and Evaluation, Navy", 
$25,600,000; 
"Research, Development, Test and Evaluation, Air Force", 
$27,200,000; 
"Research, Development, Test and Evaluation, Defense-
Wide", $36,600,000; 
"Defense Working Capital Funds", $148,600,000; and 
"Defense Health Program", $32,100,000: 
Provided, That these reductions shall be applied proportionally 
to each budget activity, activity group and subactivity group and 
each program, project, and activity within each appropriation 
account. 
SEC. 8110. Notwithstanding section 1116(c) of title 10, United 
States Code, payments into the Department of Defense Medicare-
Eligible Retiree Health Care Fund for fiscal year 2003 under section 
1116(a) of such title shall be made from funds available in this 
Act for the pay of military personnel. 
SEC. 8111. None of the funds in this Act may be used to 
initiate a new start program without prior notification to the Office 
of Secretary of Defense and the congressional defense committees. 
Grants. 
Washington. 
Applicability. 
116 STAT. 1564 
PUBLIC LAW 107-248—OCT. 23, 2002 
Grants. 
10 u s e 2401a 
note. 
SEC. 8112. The amount appropriated in title II of this Act 
is hereby reduced by $120,000,000, to reflect Working Capital Fund 
cash balance and rate stabilization adjustments, to be derived as 
follows: 
"Operation and Maintenance, Navy", $120,000,000. 
SEC. 8113. Notwithstanding any other provision in this Act, 
the total amount appropriated in this Act is hereby reduced by 
$48,000,000, to reduce excess funded carryover, to be derived as 
follows: 
"Operation and Maintenance, Army", $48,000,000. 
SEC. 8114. Of the amounts appropriated in title II of this 
Act, not less than $1,000,000,000 is available for operations of 
the Department of Defense to prosecute the war on terrorism. 
SEC. 8115. (a) In addition to the amounts provided elsewhere 
in this Act, the amount of $3,400,000 is hereby appropriated to 
the Department of Defense for "Operation and Maintenance, Army 
National Guard". Such amount shall be made available to the 
Secretary of the Army only to make a grant in the amount of 
$3,400,000 to the entity specified in subsection (b) to facilitate 
access by veterans to opportunities for skilled employment in the 
construction industry. 
(b) The entity referred to in subsection (a) is the Center for 
Military Recruitment, Assessment and Veterans Employment, a 
nonprofit labor-management co-operation committee provided for 
by section 302(c)(9) of the Labor-Management Relations Act, 1947 
(29 U.S.C. 186(c)(9)), for the purposes set forth in section 6(b) 
of the Labor Management Cooperation Act of 1978 (29 U.S.C. 175a 
note). 
SEC. 8116. (a) During the current fiscal year, funds available 
to the Secretary of a military department for Operation and Mainte-
nance may be used for the purposes stated in subsection (b) to 
support chaplain-led programs to assist members of the Armed 
Forces and their immediate family members in building and 
maintaining a strong family structure. 
(b) The purposes referred to in subsection (a) are costs of 
transportation, food, lodging, supplies, fees, and training materials 
for members of the Armed Forces and their family members while 
participating in such programs, including participation at retreats 
and conferences. 
SEC. 8117, Section 8159 of the Department of Defense Appro-
priations Act, 2002 (division A of Public Law 107-117; 115 Stat. 
2284), is revised as follows: 
(1) in subsection (c) by inserting at the end of paragraph 
(1) the following new sentence: "Notwithstanding the provisions 
of Section 3324 of Title 31, United States Code, payment for 
the acquisition of leasehold interests under this section may 
be made for each annual term up to one year in advance.". 
(2) by adding the following paragraph (g): 
"(g) Notwithstanding any other provision of law, any payments 
required for a lease entered into under this Section, or any pay-
ments made pursuant to subsection (c)(3) above, may be made 
from appropriations available for operation and maintenance or 
for lease or procurement of aircraft at the time that the lease 
takes effect; appropriations available for operation and maintenance 
or for lease or procurement of aircraft at the time that the payment 
is due; or funds appropriated for those payments.". 
PUBLIC LAW 107-248—OCT. 23, 2002 
116 STAT. 1565 
SEC. 
8118. 
(a) LIMITATION ON ADDITIONAL N M C I CONTRACT 
WORK STATIONS.—Notwithstanding section 814 of the Floyd D. 
Spence National Defense Authorization Act for Fiscal Year 2001 
(as enacted into law by Public Law 106-398; 114 Stat. 1654A-
215) or any other provision of law, the total number of work stations 
provided under the Navy-Marine Corps Intranet contract (as defined 
in subsection (i) of such section 814) may not exceed 160,000 work 
stations until the Under Secretary of Defense for Acquisition, Tech-
nology, and Logistics and the Chief Information Officer of the 
Department of Defense certify to the congressional defense commit-
tees that all of the conditions specified in subsection (b) have 
been satisfied. 
(b) CONDITIONS.—The conditions referred to in subsection (a) 
are the following: 
(1) The Commander of the Navy Operational Test and 
Evaluation Force conducts an operational assessment of the 
work stations that have been fully transitioned to the Navy-
Marine Corps Intranet, as defined in the Test and Evaluation 
Strategy Plan for the Navy-Marine Corps Intranet approved 
on September 4, 2002. 
(2) The results of the assessment are submitted to the 
Under Secretary of Defense for Acquisition, Technology, and 
Logistics and the Chief Information Officer of the Department 
of Defense, and they determine that the results of the assess-
ment are acceptable. 
SEC. 8119. None of the funds in this Act, excluding funds 
provided for advance procurement of fiscal year 2004 aircraft, may 
be obligated for acquisition of more than 16 F-22 aircraft until 
the Under Secretary of Defense for Acquisition, Technology, and 
Logistics has provided to the congressional defense committees: 
(a) A formal risk assessment which identifies and characterizes 
the potential cost, technical, schedule or other significant risks 
resulting from increasing the F-22 procurement quantities prior 
to the conclusion of Dedicated Initial Operational Test and Evalua-
tion (DIOT&E) of the aircraft: Provided, That such risk assessment 
shall evaluate, based on the best available current information: 
(1) the range of potential additional program costs (compared to 
the program costs assumed in the President's fiscal year 2003 
budget) that could result from retrofit modifications to F-22 produc-
tion aircraft that are placed under contract or delivered to the 
government prior to the conclusion of DIOT&E; and (2) a cost-
benefit analysis comparing, in terms of unit cost and total program 
cost, the cost advantages of increasing aircraft production at this 
time to the potential cost of retrofitting production aircraft once 
DIOT&E has been completed; and 
(b) Certification that increasing the F-22 production quantity 
for fiscal year 2003 beyond 16 airplanes involves lower risk and 
lower total program cost than staying at that quantity, or he sub-
mits a revised production plan, funding plan and test schedule. 
(INCLUDING TRANSFER OF FUNDS) 
SEC. 8120. Section 305(a) of the Emergency Supplemental Act, 
2002 (division B of Public Law 107-117; 115 Stat. 2300), is amended 
by adding at the end the following new sentences: "From amounts 
transferred to the Pentagon Reservation Maintenance Revolving 
Fund 
pursuant 
to 
the 
preceding 
sentence, 
not 
to 
exceed 
$305,000,000 may be transferred to the Defense 
Emergency 
116 STAT. 1566 
PUBLIC LAW 107-248—OCT. 23, 2002 
Response Fund, but only in amounts necessary to reimburse that 
fund (and the category of that fund designated as 'Pentagon Repair/ 
Upgrade') for expenses charged to that fund (and that category) 
between September 11, 2001, and February 19, 2002, for reconstruc-
tion costs of the Pentagon Reservation. Funds transferred to the 
Defense Emergency Response Fund pursuant to this section shall 
be available only for reconstruction, recovery, force protection, or 
security enhancements for the Pentagon Reservation.". 
SEC. 8121. FINANCING AND FIELDING OF KEY ARMY CAPABILI-
TIES. The Department of Defense and the Department of the Army 
shall make future budgetary and programming plans to fully finance 
the Non-Line of Sight (NLOS) Objective Force cannon and resupply 
vehicle program in order to field this system in the 2008 timeframe. 
As an interim capability to enhance Army lethality, survivability, 
and mobility for light and medium forces before complete fielding 
of the Objective Force, the Army shall ensure that budgetary and 
programmatic plans will provide for no fewer than six Stryker 
Brigade Combat Teams to be fielded between 2003 and 2008. 
50USC1521 
SEC. 8122. (a) MANAGEMENT OF CHEMICAL DEMILITARIZATION 
note. 
ACTIVITIES AT BLUEGRASS ARMY DEPOT, KENTUCKY.—If a technology 
other than the baseline incineration program is selected for the 
destruction of lethal chemical munitions pursuant to section 142 
of the Strom Thurmond National Defense Authorization Act for 
Fiscal Year 1999 (Public Law 105-261; 50 U.S.C. 1521 note), the 
program manager for the Assembled Chemical Weapons Assessment 
shall be responsible for management of the construction, operation, 
and closure, and any contracting relating thereto, of chemical 
demilitarization activities at Bluegrass Army Depot, Kentucky, 
including management of the pilot-scale facility phase of the alter-
native technology. 
(b) MANAGEMENT OF CHEMICAL DEMILITARIZATION ACTIVITIES 
AT PUEBLO DEPOT, COLORADO.—The program manager for the 
Assembled Chemical Weapons Assessment shall be responsible for 
management of the construction, operation, and closure, and any 
contracting relating thereto, of chemical demilitarization activities 
at Pueblo Army Depot, Colorado, including management of the 
pilot-scale facility phase of the alternative technology selected for 
the destruction of lethal chemical munitions. 
SEC. 8123. Of the total amount appropriated pursuant to this 
Act for any selected component of the Department of Defense that 
the Director of the Office of Management and Budget determines 
shall require audited financial statements under subsection (c) of 
section 3515 of title 31, United States Code, not more than 99 
percent may be expended until the Inspector General of the Depart-
ment of Defense certifies to the Congress of the United States 
that the head of the affected agency has made a formal decision 
as to whether to audit vouchers of the agency pursuant to section 
3521(b) of title 31, United States Code: Provided, That such certifi-
cation shall include a written assessment of the agency head's 
decision by the Inspector General. 
SEC. 8124. Of the funds made available under the heading 
"Operation and Maintenance, Air Force", $8,000,000 shall be avail-
able to realign railroad track on Elmendorf Air Force Base and 
Fort Richardson. 
PUBLIC LAW 107-248—OCT. 23, 2002 
116 STAT. 1567 
(TRANSFER OF FUNDS) 
SEC. 8125. Upon enactment of this Act, the Secretary of the 
Navy 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 fur-
ther, That the amounts shall be transferred between the following 
appropriations in the amount specified: 
From: 
Under the heading, "Shipbuilding and Conversion, 
Navy, 1994/2003": 
DDG-51 Destroyer program, $7,900,000; 
LHD-1 
Amphibious 
Assault 
Ship 
program, 
$6,500,000; 
Oceanographic Ship program, $3,416,000; 
Craft, outfitting, post delivery, first destination 
transportation, $1,800,000; 
Mine warfare command and control ship, $604,000; 
To: 
Under the heading, "Shipbuilding and Conversion, 
Navy, 1999/2003": 
LPD-17 Amphibious Transport Dock Ship pro-
gram, $20,220,000. 
SEC. 8126. Of the amounts appropriated in Public Law 107-
206 under the heading "Defense Emergency Response Fund", an 
amount up to the fair market value of the leasehold interest in 
adjacent properties necessary for the force protection requirements 
of Tooele Army Depot, Utaii, may be made available to resolve 
any property disputes associated with Tooele Army Depot, Utah, 
and to acquire such leasehold interest as required: Provided, That 
none of these funds may be used to acquire fee title to the properties. 
SEC. 8127. Up to $3,000,000 of the funds appropriated under 
the heading "Operation and Maintenance, Navy" in this Act for 
the Pacific Missile Range Facility may be made available to contract 
for the repair, maintenance, and operation of adjacent off-base 
water, drainage, and flood control systems critical to base oper-
ations. 
SEC. 8128. Of the total amount appropriated by this Act under 
the 
heading 
"Operation 
and 
Maintenance, 
Defense-Wide", 
$3,000,000 may be available for payments under section 363 of 
the Floyd D. Spence National Defense Authorization Act for Fiscal 
Year 2001 (as enacted into law by PubHc Law 106-398; 114 Stat. 
1654A-77). 
SEC. 8129. In addition to the amounts appropriated or otherwise 
made available in this Act, $8,100,000, to remain available until 
September 30, 2003, is hereby appropriated to the Department 
of Defense: Provided, That the Secretary of Defense shall make 
grants in the amount of $2,800,000 to the American Red Cross 
for Armed Forces Emergency Services; $2,800,000 to the United 
Service Organizations, Incorporated; and $2,500,000 to the Intrepid 
Sea-Air-Space Foundation. 
SEC. 8130. None of the funds appropriated in this Act under 
the heading "Overseas Contingency Operations Transfer Fund" may 
be transferred or obligated for Department of Defense expenses 
not directly related to the conduct of overseas contingencies: Pro-
vided, That the Secretary of Defense shall submit a report no 
Grants. 
Reports. 
Deadline. 
116 STAT. 1568 
PUBLIC LAW 107-248—OCT. 23, 2002 
Applicability. 
Budget. 
10 u s e 221 note. 
later than 30 days after the end of each fiscal quarter to the 
Committees on Appropriations of the Senate and House of Rep-
resentatives that details any transfer of funds from the "Overseas 
Contingency Operations Transfer Fund": Provided further, 
That 
the report shall explain any transfer for the maintenance of real 
property, pay of civilian personnel, base operations support, and 
weapon, vehicle or equipment maintenance. 
SEC. 8131. 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 "Shipbuilding and Conversion, Navy" appropriations 
in any prior year, and the 1 percent limitation shall apply to 
the total amount of the appropriation. 
SEC. 8132. The budget of the President for fiscal year 2004 
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 
Maintenance 
accounts, and the Procurement accounts: Provided, 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 
programmatic 
data 
including, but not limited to troop strength for each active duty 
and Guard and Reserve component, and estimates of the major 
weapons systems deployed in support of each contingency: Provided 
further. That these documents shall include budget esdiibits OP-
5 and OP-32, as defined in the Department of Defense Financial 
Management Regulation, for the Overseas Contingency Operations 
Transfer Fund for fiscal years 2002 and 2003. 
SEC. 8133. Notwithstanding any other provision in this Act, 
the total amount appropriated in this Act is hereby reduced by 
$59,260,000, to reduce cost growth in travel, to be distributed 
as follows: 
"Operation and Maintenance, Army", $14,000,000; 
"Operation and Maintenance, Navy", $9,000,000; 
"Operation and Maintenance, Marine Corps", $10,000,000; 
"Operation and Maintenance, Air Force", $15,000,000; and 
"Operation and Maintenance, Defense-Wide", $11,260,000. 
SEC. 8134. None of the funds in this Act may be used for 
research, development, test, evaluation, procurement or deployment 
of nuclear armed interceptors of a missile defense system. 
(INCLUDING RESCISSIONS) 
SEC. 8135. (a) The total amount appropriated or otherwise 
made available in titles II, III, and IV of this Act is hereby reduced 
by $1,374,000,000 to reflect revised economic assumptions: Pro-
vided, That the Secretary of Defense shall allocate this reduction 
proportionately to each budget activity, activity group, subactivity 
group, and each program, project, and activity within each 
PUBLIC LAW 107-248—OCT. 23, 2002 
116 STAT. 1569 
applicable appropriation account: Provided further, That appropria-
tions made available in this Act for the pay and benefits of military 
personnel are exempt from reductions under this provision. 
(b) Of the funds provided in the Department of Defense Appro-
priations 
Act, 
2002, (division A of PubHc Law 
107-117), 
$300,000,000 are rescinded from amounts made available under 
titles III and IV of that Act: Provided, That the Secretary of Defense 
shall allocate this rescission proportionately by program, project, 
and activity. 
SEC. 8136. During the current fiscal year, section 2533a(f) 
of Title 10, United States Code, shall not apply to any fish, shellfish, 
or seafood product. This section is applicable to contracts and sub- Applicability, 
contracts for the procurement of commercial items notwithstanding 
section 34 of the Office of Federal Procurement Policy Act (41 
U.S.C. 430). 
SEC. 8137. None of the funds appropriated by this Act may 
be used to convert the 939th Combat Search and Rescue Wing 
of the Air Force Reserve until the Secretary of the Air Force 
certifies to the Congress the following: (a) that a functionally com-
parable search and rescue capability is available in the 939th Search 
and Rescue Wing's area of responsibility; (b) that any new aircraft 
assigned to the unit will comply with local environmental and 
noise standards; and (c) that the Air Force has developed a plan 
for the transition of personnel and manpower billets currently 
assigned to this unit. 
SEC. 8138. 
NAVY DRY-DOCK A F D L - 4 7 (a) REQUIREMENT FOR 
SALE.—Notwithstanding any other provision of law, the Secretary 
of the Navy shall sell the Navy Dry-dock AFDL-47, located in 
Charleston, South Carolina, to Detyens Shipyards, Inc., the current 
lessee of the dry-dock from the Navy. 
(b) CONSIDERATION.—^As consideration for the sale of the dry-
dock under subsection (a), the Secretary shall receive an amount 
equal to the fair market value of the dry-dock at the time of 
the sale, as determined by the Secretary, taking into account 
amounts paid by, or due and owing from, the lessee. 
SEC. 8139. From funds made available in this Act for the 
Office of Economic Adjustment under the heading "Operation and 
Maintenance, Defense-Wide", $100,000 shall be available for the 
elimination of asbestos at former Battery 204, Odiorne Point, New 
Hampshire. 
SEC. 8140. The Secretary of Defense may, using amounts appro-
priated or otherwise made available by this Act, make a grant 
to the National D-Day Museum in the amount of $3,000,000. 
SEC. 8141. (a) PRELIMINARY STUDY AND ANALYSIS REQUIRED.— 
The Secretary of the Army shall carry out a preliminary engineering 
study and environmental analysis regarding the establishment of 
a connector road between United States Route 1 and Telegraph 
Road in the vicinity of Fort Belvoir, Virginia. 
(b) FUNDING.—Of the amount appropriated by title II under 
the 
heading 
"OPERATION 
AND 
MAINTENANCE, 
ARMY", 
up 
to 
$5,000,000 may be available for the preliminary study and analysis 
required by subsection (a). 
SEC. 8142. Of the amount appropriated by title V under the 
heading "NATIONAL DEFENSE SEALIFT FUND", up to $10,000,000 
may be available for implementing the recommendations resulting 
from the Navy's Non-Self Deployable Watercraft (NDSW) Study 
and the Joint Chiefs of Staff Focused Logistics Study, which are 
116 STAT. 1570 
PUBLIC LAW 107-248—OCT. 23, 2002 
to determine the requirements of the Navy for providing Hft support 
for mine warfare ships and other vessels. 
36 use 903 note. 
SEC. 8143. (a) Congress finds that— 
(1) the Medal of Honor is the highest award for valor 
in action against an enemy force which can be bestowed upon 
an individual serving in the Armed Forces of the United States; 
(2) the Medal of Honor was established by Congress during 
the Civil War to recognize soldiers who had distinguished them-
selves by gallantry in action; 
(3) the Medal of Honor was conceived by Senator James 
Grimes of the State of Iowa in 1861; and 
(4) the Medal of Honor is the Nation's highest military 
honor, awarded for acts of personal bravery or self-sacrifice 
above and beyond the call of duty. 
(b)(1) Chapter 9 of title 36, United States Code, is amended 
by adding at the end the following new section: 
"§ 903. Designation of Medal of Honor Flag 
"(a) DESIGNATION.—The Secretary of Defense shall design and 
designate a flag as the Medal of Honor Flag. In selecting the 
design for the flag, the Secretary shall consider designs submitted 
by the general public. 
"(b) PRESENTATION.—The Medal of Honor Flag shall be pre-
sented as specified in sections 3755, 6257, and 8755 of title 10 
and section 505 of title 14.". 
(2) The table of sections at the beginning of such chapter 
is amended by adding at the end the following new item: 
"903. Designation of Medal of Honor Flag.". 
President. 
(c)(1)(A) Chapter 357 of title 10, United States Code, is amended 
by adding at the end the following new section: 
"§ 3755. Medal of honor: presentation of Medal of Honor Flag 
"The President shall provide for the presentation of the Medal 
of Honor Flag designated under section 903 of title 36 to each 
person to whom a medal of honor is awarded under section 3741 
of this title after the date of the enactment of this section. Presen-
tation of the flag shall be made at the same time as the presentation 
of the medal under section 3741 or 3752(a) of this title.". 
(B) The table of sections at the beginning of such chapter 
is amended by adding at the end the following new item: 
"3755. Medal of honor: presentation of Medal of Honor Flag.". 
(2)(A) Chapter 567 of such title is amended by adding at the 
end the following new section: 
"§ 6257. Medal of honor: presentation of Medal of Honor Flag 
"The President shall provide for the presentation of the Medal 
of Honor Flag designated under section 903 of title 36 to each 
person to whom a medal of honor is awarded under section 6241 
of this title after the date of the enactment of this section. Presen-
tation of the flag shall be made at the same time as the presentation 
of the medal under section 6241 or 6250 of this title.". 
(B) The table of sections at the beginning of such chapter 
is amended by adding at the end the following new item: 
"6257. Medal of honor: presentation of Medal of Honor Flag.". 
(3)(A) Chapter 857 of title 10, United States Code, is amended 
by adding at the end the following new section: 
PUBLIC LAW 107-248—OCT. 23, 2002 
116 STAT. 1571 
"§ 8755. Medal of honor: presentation of Medal of Honor Flag 
"The President shall provide for the presentation of the Medal 
of Honor Flag designated under section 903 of title 36 to each 
person to whom a medal of honor is awarded under section 8741 
of this title after the date of the enactment of this section. Presen-
tation of the flag shall be made at the same time as the presentation 
of the medal under section 8741 or 8752(a) of this title.". 
(B) The table of sections at the beginning of such chapter 
is amended by adding at the end the following new item: 
"8755. Medal of honor: presentation of Medal of Honor Flag.". 
(4)(A) Chapter 13 of title 14, United States Code, is amended 
by inserting after section 504 the following new section: 
"§ 505. Medal of honor: presentation of Medal of Honor Flag 
"The President shall provide for the presentation of the Medal 
of Honor Flag designated under section 903 of title 36 to each 
person to whom a medal of honor is awarded under section 491 
of this title after the date of the enactment of this section. Presen-
tation of the flag shall be made at the same time as the presentation 
of the medal under section 491 or 498 of this title.". 
(B) The table of sections at the beginning of such chapter 
is amended by inserting after the item relating to section 504 
the following new item: 
"505. Medal of honor: presentation of Medal of Honor Flag.". 
(d) The President shall provide for the presentation of the 
36 USC 903 note. 
Medal of Honor Flag designated under section 903 of title 36, 
United States Code, as added by subsection (b), to each person 
awarded the Medal of Honor before the date of enactment of this 
Act who is living as of that date. Such presentation shall be made 
as expeditiously as possible after the date of the designation of 
the Medal of Honor Flag by the Secretary of Defense under such 
section. 
SEC. 8144. (a) The conditions described in section 1305 of 
the National Defense Authorization Act for Fiscal Year 2000 (Public 
Law 106-65; 22 U.S.C. 5952 note) shall not apply to the obligation 
and expenditure of funds for fiscal years 2000, 2001, 2002 and 
2003 for the planning, design, or construction of a chemical weapons 
destruction facility in Russia if the President submits to Congress 
a written certification that includes— 
(1) a statement as to why waiving the conditions is impor-
tant to the national security interests of the United States; 
(2) a full and complete justification for exercising this 
waiver; and 
(3) a plan to promote a full and accurate disclosure by 
Russia regarding the size, content, status, and location of its 
chemical weapons stockpile. 
(b) EXPIRATION OF AUTHORITY.—The authority under paragraph 
(a) shall expire on September 30, 2003. 
SEC. 8145. Effective as of August 2, 2002, the 2002 Supple- Effective date. 
mental Appropriations Act for Further Recovery From and Response 
To Terrorist Attacks on the United States (Public Law 107-206) 
is amended— 
(1) in section 305(a) (116 Stat. 840), by striking "fiscal 
year 2002" and inserting "fiscal years 2002 and 2003"; and 
(2) in section 309 (116 Stat. 841), by striking "of" after 
"instead". 
116 STAT. 1572 
PUBLIC LAW 107-248—OCT. 23, 2002 
Deadline. 
Deadline. 
Reports. 
10 u s e 2784 
note. 
Guidelines. 
Procedures. 
SEC. 8146. The Secretary of Defense may modify the grant 
made to the State of Maine pursuant to section 310 of the 2002 
Supplemental Appropriations Act for Further Recovery From and 
Response To Terrorist Attacks on the United States (Public Law 
107-206) such that the modified grant is for purposes of supporting 
community adjustment activities relating to the closure of the Naval 
Security Group Activity, Winter Harbor, Maine (the naval base 
on Schoodic Point, within Acadia National Park), and the reuse 
of such Activity, including reuse as a research and education center 
the activities of which may be consistent with the purposes of 
Acadia National Park, as determined by the Secretary of the 
Interior. The grant may be so modified not later than 60 days 
after the date of the enactment of this Act. 
SEC. 8147. None of the funds appropriated by this Act may 
be used for leasing of transportA^IP aircraft under any contract 
entered into under any procurement procedures other than pursuant 
to the Competition and Contracting Act. 
SEC. 8148. (a) Funds appropriated by title II under the heading 
"Operation and Maintenance, Defense-Wide" may be used by the 
Military Community and Family Policy Office of the Department 
of Defense for the operation of multidisciplinary, impartial domestic 
violence fatality review teams of the Department of Defense that 
operate on a confidential basis. 
(b) Of the total amount appropriated by title II under the 
heading "Operation and Maintenance, Defense-Wide", $5,000,000 
may be used for an advocate of victims of domestic violence to 
provide confidential assistance to victims of domestic violence at 
military installations. 
(c) Not later than June 30, 2003, the Secretary of Defense 
shall submit to the Congress a report on the implementation of 
the recommendations included in the reports submitted to the Sec-
retary by the Defense Task Force on Domestic Violence. 
SEC. 8149. (a) LIMITATION ON NUMBER OF GOVERNMENT CHARGE 
CARD ACCOUNTS DURING FISCAL YEAR 2003.—The total number 
of accounts for government purchase charge cards and government 
travel charge cards for Department of Defense personnel during 
fiscal year 2003 may not exceed 1,500,000 accounts. 
(b) 
REQUIREMENT FOR CREDITWORTHINESS FOR ISSUANCE OF 
GOVERNMENT CHARGE CARD.—(1) The Secretary of Defense shall 
evaluate the creditworthiness of an individual before issuing the 
individual a government purchase charge card or government travel 
charge card. 
(2) An individual may not be issued a government purchase 
charge card or government travel charge card if the individual 
is found not credit worthy as a result of the evaluation under 
paragraph (1). 
(c) DISCIPLINARY ACTION FOR MISUSE OF GOVERNMENT CHARGE 
CARD.—(1) The Secretary shall establish guidelines and procedures 
for disciplinary actions to be taken against Department personnel 
for improper, fraudulent, or abusive use of government purchase 
charge cards and government travel charge cards. 
(2) The guidelines and procedures under this subsection shall 
include appropriate disciplinary actions for use of charge cards 
for purposes, and at establishments, that are inconsistent with 
the official business of the Department or with applicable standards 
of conduct. 
(3) The disciplinary actions under this subsection may include— 
PUBLIC LAW 107-248—OCT. 23, 2002 
116 STAT. 1573 
(A) the review of the security clearance of the individual 
involved; and 
(B) the modification or revocation of such security clearance 
in light of the review. 
(4) The guidelines and procedures under this subsection shall Applicability 
apply uniformly among the Armed Forces and among the elements 
of the Department. 
(d) REPORT.—Not later than June 30, 2003, the Secretary shall 
submit to the congressional defense committees a report on the 
implementation of the requirements and limitations in this section, 
including the guidelines and procedures established under sub-
section (c). 
SEC. 8150. Notwithstanding any provision of the Defense Base 
Closure and Realignment Act of 1990 (part A of title XXIX of 
Pubhc Law 101-510; 10 U.S.C. 2687 note) or any other provision 
of law, the Secretary of the Navy shall transfer administrative 
jurisdiction of the portion of the former Charleston Naval Base, 
South Carolina, comprising a law enforcement training facility of 
the Department of Justice, together with any improvements 
thereon, to the head of the department of the Federgd Government 
having jurisdiction of the Border Patrol as of the date of the transfer 
under this section. 
Deadline. 
Government 
organization. 
TITLE IX—COMMERCIAL REUSABLE IN-SPACE 
TRANSPORTATION 
SEC. 901. SHORT TITLE. 
This title may be cited as the "Commercial Reusable In-Space 
Transportation Act of 2002". 
SEC. 902. FINDINGS. 
Congress makes the following findings: 
(1) It is in the national interest to encourage the production 
of cost-effective, in-space transportation systems, which would 
be built and operated by the private sector on a commercial 
basis. 
(2) The use of reusable in-space transportation systems 
will enhance performance levels of in-space operations, enhance 
efficient and safe disposal of satellites at the end of their 
useful lives, and increase the capability and reliability of 
existing ground-to-space laimich vehicles. 
(3) Commercial reusable in-space transportation systems 
will enhance the economic well-being and national security 
of the United States by reducing space operations costs for 
commercial and national space programs and by adding new 
space capabilities to space operations. 
(4) Commercial reusable in-space transportation systems 
will provide new cost-effective space capabilities (including 
orbital tremsfers from low altitude orbits to high altitude orbits 
and return, the correction of erroneous satellite orbits, and 
the recovery, refiirbishment, and refueling of satellites) and 
the provision of upper stage functions to increase ground-to-
orbit launch vehicle payloads to geostationary and other high 
energy orbits. 
(5) Commercial reusable in-space transportation systems 
can enhance euid enable the space exploration of the United 
States by providing lower cost trajectory injection from eeirth 
Commercial 
Reusable 
In-Space 
Transportation 
Act of 2002. 
42 use 14701 
note. 
42 use 14751. 
116 STAT. 1574 
PUBLIC LAW 107-248—OCT. 23, 2002 
orbit, transit trajectory control, and planet arrival deceleration 
to support potential National Aeronautics and Space Adminis-
tration missions to Mars, Pluto, and other planets. 
(6) Satellites stranded in erroneous earth orbit due to defi-
ciencies in their launch represent substantial economic loss 
to the United States and present substantial concerns for the 
current backlog of national space assets. 
(7) Commercial reusable in-space transportation systems 
can provide new options for alternative planning approaches 
and risk management to enhance the mission assurance of 
national space assets. 
(8) Commercial reusable in-space transportation systems 
developed by the private sector can provide in-space transpor-
tation services to the National Aeronautics and Space Adminis-
tration, the Department of Defense, the National Reconnais-
sance Office, and other agencies without the need for the United 
States to bear the cost of production of such systems. 
(9) The availability of loan guarantees, with the cost of 
credit risk to the United States paid by the private-sector, 
is an effective means by which the United States can help 
qualifying private-sector companies secure otherwise unattain-
able private financing for the production of commercial reusable 
in-space transportation systems, while at the same time mini-
mizing Government commitment and involvement in the 
development of such systems. 
42 u s e 14752. 
SEC. 903. LOAN GUARANTEES FOR PRODUCTION OF COMMERCIAL 
REUSABLE IN-SPACE TRANSPORTATION. 
(a) AUTHORITY TO MAKE LOAN GUARANTEES.—The Secretary 
may guarantee loans made to eligible United States commercial 
providers for purposes of producing commercial reusable in-space 
transportation services or systems. 
Requirements. 
(b) ELIGIBLE UNITED STATES COMMERCIAL PROVIDERS.—The 
Secretary shall prescribe requirements for the eligibility of United 
States commercial providers for loan guarantees under this section. 
Such requirements shall ensure that eligible providers are finan-
cially capable of undertaking a loan guaranteed under this section. 
(c) LIMITATION ON LOANS GUARANTEED.—The Secretary may 
not guarantee a loan for a United States commercial provider 
under this section unless the Secretary determines that credit would 
not otherwise be reasonably available at the time of the guarantee 
for the commercial reusable in-space transportation service or 
system to be produced utilizing the proceeds of the loan. 
(d) CREDIT SUBSIDY.— 
(1) COLLECTION REQUIRED.—The Secretary shall collect 
from each United States commercial provider receiving a loan 
guarantee under this section an amount equal to the amount, 
as determined by the Secretary, to cover the cost, as defined 
in section 502(5) of the Federal Credit Reform Act of 1990, 
of the loan guarantee. 
(2) PERIODIC DISBURSEMENTS.—In the case of a loan guar-
antee in which proceeds of the loan are disbursed over time, 
the Secretary shall collect the amount required under this 
subsection on a pro rata basis, as determined by the Secretary, 
at the time of each disbursement. 
(e) OTHER TERMS AND CONDITIONS.— 
PUBLIC LAW 107-248—OCT. 23, 2002 
116 STAT. 1575 
(1) PROHIBITION ON SUBORDINATION.—^A loan guaranteed 
under this section may not be subordinated to another debt 
contracted by the United States commercial provider concerned, 
or to any other claims against such provider. 
(2) RESTRICTION ON INCOME.—^A loan guaranteed under 
this section may not— 
(A) provide income which is excluded from gross income 
for purposes of chapter 1 of the Internal Revenue Code 
of 1986;or 
(B) provide significant collateral or security, as deter-
mined by the Secretary, for other obligations the income 
from which is so excluded. 
(3) TREATMENT OF GUARANTEE.—The guarantee of a loan 
under this section shall be conclusive evidence of the following: 
(A) That the guarantee has been properly obtained. 
(B) That the loan qualifies for the guarantee. 
(C) That, but for fraud or material misrepresentation 
by the holder of the loan, the guarantee is valid, legal, 
and enforceable. 
(4) OTHER TERMS AND CONDITIONS.—The Secretary may 
establish any other terms and conditions for a guarantee of 
a loan under this section, as the Secretary considers appropriate 
to protect the financial interests of the United States. 
(f) ENFORCEMENT OF RIGHTS.— 
(1) IN GENERAL.—The Attorney General may take any 
action the Attorney General considers appropriate to enforce 
any right accruing to the United States under a loan guarantee 
under this section. 
(2) FORBEARANCE.—The Attorney General may, with the 
approval of the parties concerned, forebear from enforcing any 
right of the United States under a loan guaranteed under 
this section for the benefit of a United States commercial pro-
vider if such forbearance will not result in any cost, as defined 
in section 502(5) of the Federal Credit Reform Act of 1990, 
to the United States. 
(3) UTILIZATION OF PROPERTY.—^Notwithstanding any other 
provision of law and subject to the terms of a loan guaranteed 
under this section, upon the default of a United States commer-
cial provider under the loan, the Secretary may, at the election 
of the Secretary— 
(A) assume control of the physical asset financed by 
the loan; and 
(B) complete, recondition, reconstruct, renovate, repair, 
maintain, operate, or sell the physical asset. 
(g) CREDIT INSTRUMENTS.— 
(1) AUTHORITY TO ISSUE INSTRUMENTS.—Notwithstanding 
any other provision of law, the Secretary may, subject to such 
terms and conditions as the Secretary considers appropriate, 
issue credit instruments to United States commercial providers 
of in-space transportation services or system, with the aggre-
gate cost (as determined under the provisions of the Federal 
Credit Reform Act of 1990 (2 U.S.C. 661 et seq.)) of such 
instruments not to exceed $1,500,000,000, but only to the extent 
that new budget authority to cover such costs is provided in 
subsequent appropriations Acts or authority is otherwise pro-
vided in subsequent appropriations Acts. 
116 STAT. 1576 
PUBLIC LAW 107-248—OCT. 23, 2002 
(2) CREDIT SUBSIDY.—The Secretary shall provide a credit 
subsidy for any credit instrument issued under this subsection 
in accordance with the provisions of the Federal Credit Reform 
Act of 1990. 
(3) CONSTRUCTION.—The eligibiHty of a United States 
commercial provider of in-space transportation services or sys-
tems for a credit instrument under this subsection is in addition 
to any eligibility of such provider for a loan guarantee under 
other provisions of this section. 
42 use 14753. 
SEC. 904. DEFINITIONS. 
In this title: 
(1) SECRETARY.—The term "Secretary" means the Secretary 
of Defense. 
(2) COMMERCIAL PROVIDER.—The term "commercial pro-
vider" means any person or entity providing commercial 
reusable in-orbit space transportation services or systems, pri-
mary control of which is held by persons other than the Federal 
Government, a State or local government, or a foreign govern-
ment. 
(3) IN-SPACE TRANSPORTATION SERVICES.—The term "in-
space transportation services" means operations and activities 
involved in the direct transportation or attempted transpor-
tation of a payload or object from one orbit to another by 
means of an in-space transportation vehicle. 
(4) IN-SPACE TRANSPORTATION SYSTEM.—The term "in-space 
transportation system" means the space and ground elements, 
including in-space transportation vehicles and support space 
systems, and ground administration and control facilities and 
associated equipment, necessary for the provision of in-space 
transportation services. 
(5) IN-SPACE TRANSPORTATION VEHICLE.—The term "in-
space transportation vehicle" means a vehicle designed— 
(A) to be based and operated in space; 
(B) to transport various payloads or objects from one 
orbit to another orbit; and 
(C) to be reusable and refueled in space. 
(6) UNITED 
STATES 
COMMERCIAL PROVIDER.—The term 
"United States commercial provider" means any commercial 
provider organized under the laws of the United States that 
is more than 50 percent owned by United States nationals. 
PUBLIC LAW 107-248—OCT. 23, 2002 
116 STAT. 1577 
This Act may be cited as the "Department of Defense Appropria-
tions Act, 2003". 
Approved October 23, 2002. 
LEGISLATIVE HISTORY—H.R. 5010: 
HOUSE REPORTS: Nos. 107-532 (Comm. on Appropriations) and 
107-732 
(Comm. of Conference). 
SENATE REPORTS: No. 107-213 (Comm. on Appropriations). 
CONGRESSIONAL RECORD, Vol. 148 (2002): 
June 27, considered and passed House. 
July 31, Aug. 1, considered and passed Senate, amended. 
Oct. 10, House agreed to conference report. 
Oct. 16, Senate agreed to conference report. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 38 (2002): 
Oct. 23, Presidential remarks and statement.