Military Construction Appropriations Act, 1997
PL 104-196 (H.R.3517), enacted 09/16/1996

PUBLIC LAW 104-196—SEPT. 16, 1996 
110 STAT. 2385 
Public Law 104-196 
104th Congress 
An Act 
Making appropriations for military construction, family housing, and base realign- 
„ 
„ ,-„. 
ment and closure for the Department of Defense for the fiscal year ending Septem- 
—^EJ.—: 
ber 30,1997, and for other purposes. 
[H.R. 3517] 
Be it enacted by the Senate and House of Representatives 
of 
the United States of America in Congress assembled, That the Military 
following sums are appropriated, out of any money in the Treasury 
Construction 
not otherwise appropriated, for the fiscal year ending September 
^ ^ i ^ ^ ^ 
30,1997, for mihtary construction, family housing, and base realign-
ment and closure functions administered by the Department of 
Defense, and for other purposes, namely: 
MILITARY CONSTRUCTION, ARMY 
(INCLUDING RESCISSIONS) 
For acquisition, construction, installation, and equipment of 
temporary or permanent public works, military installations, facili-
ties, and real property for the Army as currently authorized by 
law, including personnel in the Army Corps of Engineers and other 
personal services necessary for the purposes of this appropriation, 
and for construction and operation of facilities in support of the 
functions of the Commander in Chief, $565,688,000, to remain 
available imtil September 30, 2001: Provided, That of this amount, 
not to exceed $50,538,000 shall be available for study, planning, 
design, architect and engineer services, and host nation support, 
as authorized by law, imless the Secretary of Defense determines 
that additional obligations are necessary for such purposes and 
notifies the Committees on Appropriations of both Houses of Con-
gress of his determination and the reasons therefor: Provided fur-
ther. That of the funds appropriated for "Military Construction, 
Army" under Pubhc Law 103-110, $2,028,000 is hereby rescinded. 
MILITARY CONSTRUCTION, NAVY 
(INCLUDING RESCISSIONS) 
For acquisition, construction, installation, and equipment of 
temporary or permanent public works, naval installations, facilities, 
and real property for the Navy as currently authorized by law, 
including personnel in the Naval Facilities Engineering Command 
and other personal services necessary for the purposes of this appro-
priation, $707,094,000, to remain available until September 30, 
2001: Provided, That of this amoimt, not to exceed $49,927,000 
shall be available for study, planning, design, architect and engineer 
services, as authorized by law, imless the Secretary of Defense 
110 STAT. 2386 
PUBLIC LAW 104-196—SEPT. 16, 1996 
determines that additional obligations are necessary for such pur-
poses and notifies the Committees on Appropriations of both Houses 
of Congress of his determination and the reasons therefor: Provided 
further, That of the funds appropriated for "Military Construction, 
Navy" under Public Law 102-380, $9,000,000 is hereby rescinded: 
Provided further, 
That of the funds appropriated for "Military 
Construction, Navy" under Public Law 103-110, $2,300,000 is 
hereby rescinded. 
MILITARY CONSTRUCTION, AIR FORCE 
(INCLUDING RESCISSIONS) 
For acquisition, construction, installation, and equipment of 
temporary or permanent public works, military installations, facili-
ties, and real property for the Air Force as currently authorized 
by law, $754,064,000, to remain available until September 30, 2001: 
Provided, That of this amount, not to exceed $50,687,000 shall 
be available for study, planning, design, architect and engineer 
services, as authorized by law, unless the Secretary of Defense 
determines that additional obligations are necessary for such pur-
poses and notifies the Committees on Appropriations of both Houses 
of Congress of his determination and the reasons therefor: Provided 
further. That of the funds appropriated for "Military Construction, 
Air Force" under PubUc Law 103-307, $2,100,000 is hereby 
rescinded. 
MILITARY CONSTRUCTION, DEFENSE-WIDE 
(INCLUDING TRANSFER OF FUNDS AND RESCISSIONS) 
For acquisition, construction, installation, and equipment of 
temporary or permsment public works, installations, facilities, and 
real property for activities and agencies of the Department of 
Defense (other than the military departments), as currently author-
ized by law, $763,922,000, to remain available until September 
30, 2001: Provided, That such amounts of this appropriation as 
may be determined by the Secretary of Defense may he transferred 
to such appropriations of the Department of Defense available for 
military construction or family housing as he may designate, to 
be merged with and to be available for the same purposes, and 
for the same time period, as the appropriation or tuna to which 
transferred: Provided further. That of the amount appropriated, 
not to exceed $12,239,000 shall be available for study, planning, 
design, architect and engineer services, as authorized by law, unless 
the Secretary of Defense determines that additional obligations 
are necessary for such purposes and notifies the Committees on 
Appropriations of both Houses of Congress of his determination 
and the reasons therefor: Provided further. That of the funds appro-
priated for "Military Construction, Defense-wide" under Public Law 
104r-32, $7,000,000 is hereby rescinded. 
DEPARTMENT OF DEFENSE MILITARY UNACCOMPANIED HOUSING 
IMPROVEMENT FUND 
(INCLUDING TRANSFER OF FUNDS) 
For the Department of Defense Military Unaccompanied Hous-
ing Improvement Fund, $5,000,000, to remain available until 
PUBLIC LAW 104-196—SEPT. 16, 1996 
110 STAT. 2387 
expended: Provided, That subject to thirty days prior notification 
to the Committees on Appropriations, such additional amounts as 
may be determined by the Secretary of Defense may be transferred 
to the Fund fi'om amounts appropriated for the acquisition or 
construction of mihtary unaccompanied housing in "Military 
Construction" accounts, to be merged with and to be made available 
for the same purposes and for the same period of time as amounts 
appropriated directly to the Fund: Provided further, That appropria-
tions made available for the Fund in this Act shall be available 
to cover the costs, as defined in section 502(5) of the Congressional 
Budget Act of 1974, of direct loans and loan guarantees issued 
by the Department of Defense pursuant to the provisions of sub-
chapter IV of chapter 169 of title 10, United States Code, pertaining 
to alternative means of acquiring and improving military unaccom-
panied housing £uid ancillary supporting facilities. 
MILITARY CONSTRUCTION, ARMY NATIONAL GUARD 
For construction, acquisition, expansion, rehabilitation, and 
conversion of facilities for the training and administration of the 
Army National Guard, and contributions therefor, as authorized 
by chapter 133 of title 10, United States Code, and military 
construction authorization Acts, $78,086,000, to remain available 
until September 30, 2001. 
MILITARY CONSTRUCTION, AIR NATIONAL GUARD 
For construction, acquisition, expansion, rehabilitation, and 
conversion of facilities for the training and administration of the 
Air National Guard, and contributions therefor, as authorized by 
chapter 133 of title 10, United States Code, and military construc-
tion authorization Acts, $189,855,000, to remain available until 
September 30, 2001. 
MILITARY CONSTRUCTION, ARMY RESERVE 
For construction, acquisition, expansion, rehabilitation, and 
conversion of facilities for the training sind administration of the 
Army Reserve as authorized by chapter 133 of title 10, United 
States 
Code, 
and 
military 
construction 
authorization 
Acts, 
$55,543,000, to remain available imtil September 30, 2001. 
MILITARY CONSTRUCTION, NAVAL RESERVE 
For construction, acquisition, expansion, rehabilitation, and 
conversion of facilities for the training and administration of the 
reserve components of the Navy and Marine Corps as authorized 
by chapter 133 of title 10, United States Code, and military 
construction authorization Acts, $37,579,000, to remain available 
until September 30, 2001. 
MILITARY CONSTRUCTION, AIR FORCE RESERVE 
For construction, acquisition, expansion, rehabiUtation, and 
conversion of facilities for the training and administration of the 
Air Force Reserve as authorized by chapter 133 of title 10, United 
States 
Code, 
and 
military 
construction 
authorization 
Acts, 
$52,805,000, to remain available until September 30, 2001. 
110 STAT. 2388 
PUBLIC LAW 104-196—SEPT. 16, 1996 
NORTH ATLANTIC TREATY ORGANIZATION 
SECURITY INVESTMENT PROGRAM 
For the United States share of the cost of the North Atlantic 
Treaty Organization Security Investment Program for the acquisi-
tion and construction of miUtary faciHties and installations (includ-
ing international military headquarters) and for related expenses 
for the collective defense of the North Atlantic Treaty Area as 
authorized in military construction authorization Acts and section 
2806 of title 10, United States Code, $172,000,000, to remain avail-
able rnitil expended. 
FAMILY HOUSING, ARMY 
For expenses of family housing for the Army for construction, 
including acquisition, replacement, addition, expansion, extension 
and alteration and for operation and maintenance, including debt 
pa3mient, leasing, minor construction, principal and 
interest 
charges, and insurance premiums, as authorized by law, as follows: 
for Construction, $158,503,000, to remain available until September 
30, 2001; for Operation and Maintenance, and for debt payment, 
$1,212,466,000; in all $1,370,969,000. 
FAMILY HOUSING, NAVY AND MARINE CORPS 
For expenses of family housing for the Navy £ind Marine Corps 
for construction, including acquisition, replacement, 
addition, 
expansion, extension and alteration and for operation and mainte-
nance, including debt payment, leasing, minor construction, prin-
cipal and interest charges, and insur£ince premiums, as authorized 
by law, as follows: for Construction, $499,886,000, to remain avail-
able until September 30, 2001; for Operation and Maintenance, 
and for debt payment, $1,014,241,000; in all $1,514,127,000. 
FAMILY HOUSING, AIR FORCE 
For expenses of family housing for the Air Force for construc-
tion, including acquisition, replacement, addition, expansion, exten-
sion and alteration and for operation and maintenance, including 
debt payment, leasing, minor construction, principal and interest 
charges, and insurance premiums, as authorized by law, as follows: 
for Construction, $317,507,000, to remain available until September 
30, 2001; for Operation and Maintenance, and for debt pa3niient, 
$816,509,000; in all $1,134,016,000. 
FAMILY HOUSING, DEFENSE-WIDE 
For expenses of family housing for the activities and agencies 
of the Department of Defense (other than the military departments) 
for construction, including acquisition, replacement, 
addition, 
expansion, extension and alteration, and for operation and mainte-
nance, leasing, and minor construction, as authorized by law, as 
follows: for Construction, $4,371,000, to remain available until 
September 30, 2001; for Operation and Maintenance, $30,963,000; 
in all $35,334,000. 
PUBLIC LAW 104-196—SEPT. 16, 1996 
110 STAT. 2389 
DEPARTMENT OF DEFENSE FAMILY HOUSING IMPROVEMENT FUND 
(INCLUDING TRANSFER OF FUNDS) 
For the Department of Defense Family Housing Improvement 
Fund, $25,000,000, to remain available until expended: Provided, 
That, subject to thirty days prior notification to the Committees 
on Appropriations, such additional amounts as may be determined 
by the Secretary of Defense may be transferred to the Fund from 
amounts 
appropriated 
for construction in "Family 
Housing" 
accounts, to be merged with and to be available for the same 
purposes and for the same period of time as amounts appropriated 
directly to the Fund: Provided further. That appropriations made 
available to the Fund in this Act shall be available to cover the 
costs, as defined in section 502(5) of the Congressional Budget 
Act of 1974, of direct loans or login guarsintees issued by the Depart-
ment of Defense pursuant to the provisions of subchapter iV of 
chapter 169, title 10, United States Code, pertaining to alternative 
means of acquiring and improving military family housing and 
supporting facilities. 
HOMEOWNERS ASSISTANCE FUND, DEFENSE 
For use in the Homeowners Assistance Fund established by 
section 1013(d) of the Demonstration Cities and Metropolitan Devel-
opment Act of 1966, as amended (42 U.S.C. 3374), $36,181,000, 
to remain available until expended. 
BASE REALIGNMENT AND CLOSURE ACCOUNT, PART II 
For deposit into the Department of Defense Base Closure 
Accoimt 1990 established by section 2906(a)(1) of the Department 
of Defense 
Authorization 
Act, 
1991 (Pubhc Law 
101-510), 
$352,800,000, to remain available until expended: Provided, That 
not more th£in $223,789,000 of the funds appropriated herein shall 
be available solely for environmental restoration, unless the Sec-
retary of Defense determines that additional obligations are nec-
essary for such purposes and notifies the Committees on Appropria-
tions of both Houses of Congress of his determination and the 
reasons therefor. 
BASE REALIGNMENT AND CLOSURE ACCOUNT, PART III 
For deposit into the Department of Defense Base Closure 
Account 1990 estabUshed by section 2906(a)(1) of the Department 
of Defense Authorization 
Act, 
1991 (Pubhc 
Law 
101-510), 
$971,925,000, to remain available until expended: Provided, That 
not more than $351,967,000 of the funds appropriated herein shall 
be available solely for environmental restoration, unless the Sec-
retary of Defense determines that additional obligations are nec-
essary for such purposes and notifies the Committees on Appropria-
tions of both Houses of Congress of his determination and the 
reasons therefor. 
BASE REALIGNMENT AND CLOSURE ACCOUNT, PART IV 
For deposit into the Department of Defense Base Closure 
Account 1990 estabhshed by section 2906(a)(1) of the Department 
of Defense 
Authorization 
Act, 
1991 (PubUc Law 
101-510), 
110 STAT. 2390 
PUBLIC LAW 104-196—SEPT. 16, 1996 
$1,182,749,000, to remain available until expended: Provided, That 
not more than $200,841,000 of the funds appropriated herein shall 
be available solely for environmental restoration, unless the Sec-
retary of Defense determines that additional obligations are nec-
essary for such purposes and notifies the Committees on Appropria-
tions of both Houses of Congress of his determination and the 
reasons therefor. 
GENERAL PROVISIONS 
SEC. 101. None of the funds appropriated in Military Construc-
tion Appropriations Acts shall be expended for pa3rments imder 
a cost-plus-a-fixed-fee contract for work, where cost estimates exceed 
$25,000, to be performed within the United States, except Alaska, 
without the specific approval in writing of the Secretary of Defense 
setting forth the reasons therefor: Provided, That the foregoing 
shall not apply in the case of contracts for environmental restoration 
at an installation that is being closed or realigned where pa3maents 
are made 
fi*om 
a Base Realignment and Closure Account. 
SEC. 102. Funds appropriated to the Department of Defense 
for construction shall be available for hire of passenger motor 
vehicles. 
SEC. 103. Funds appropriated to the Department of Defense 
for construction may be used for advances to the Federal Highway 
Administration, Department of Transportation, for the construction 
of access roads as authorized by section 210 of title 23, United 
States Code, when projects authorized therein are certified as 
important to the national defense by the Secretary of Defense. 
SEC. 104. None of the funds appropriated in this Act may 
be used to begin construction of new bases inside the continental 
United States for which specific appropriations have not been made. 
SEC. 105. No part of the funds provided in Military Construction 
Appropriations Acts shall be used for purchase of land or land 
easements in excess of 100 per centum of the value as determined 
by the Army Corps of Engineers or the Naval Facilities Engineering 
Command, except (a) where there is a determination of value by 
a Federal court, or (b) purchases negotiated by the Attorney General 
or his designee, or (c) where the estimated value is less than 
$25,000, or (d) as otherwise determined by the Secretary of Defense 
to be in the public interest. 
SEC. 106. None of the funds appropriated in Military Construc-
tion Appropriations Acts shall be used to (1) acquire land, (2) 
provide for site preparation, or (3) install utilities for any family 
housing, except housing for which funds have been made available 
in annual Military Construction Appropriations Acts. 
SEC. 107. None of the funds appropriated in Military Construc-
tion Appropriations Acts for minor construction may be used to 
transfer or relocate any activity from one base or installation to 
another, without prior notification to the Committees on Appropria-
tions. 
SEC. 108. No part of the funds appropriated in Military 
Construction Appropriations Acts may be used for the procurement 
of steel for any construction project or activity for which American 
steel producers, fabricators, and manufacturers have been denied 
the opportunity to compete for such steel procurement. 
SEC. 109. None of the funds available to the Department of 
Defense for military construction or family housing during the 
, > *^„-» 
PUBLIC LAW 104-196—SEPT. 16, 1996 
110 STAT. 2391 
current fiscal year may be used to pay real property taxes in 
any foreign nation. 
SEC. 110. None of the funds appropriated in Military Construc-
tion Appropriations Acts may be used to initiate a new installation 
overseas without prior notification to the Committees on Appropria-
tions. 
SEC. 111. None of the funds appropriated in Military Construc-
tion Appropriations Acts may be obligated for architect and engineer 
contracts estimated by the Government to exceed $500,000 for 
projects to be accomplished in Japan, in any NATO member coimtry, 
or in countries bordering the Arabian Gulf, unless such contracts 
are awarded to United States firms or United States firms in 
joint venture with host nation firms. 
SEC. 112. None of the funds appropriated in Military Construc-
tion Appropriations Acts for military construction in the United 
States territories and possessions in the Pacific and on Kwajalein 
Atoll, or in coiuitries bordering the Arabian Gulf, may be used 
to award any contract estimated by the Government to exceed 
$1,000,000 to a foreign contractor: Provided, That this section shall 
not be applicable to contract awards for which the lowest responsive 
£md responsible bid of a United States contractor exceeds the lowest 
responsive and responsible bid of a foreign contractor by greater 
than 20 per centum. 
SEC. 113. The Secretary of Defense is to inform the appropriate 
Committees of Congress, including the Committees on Appropria-
tions, of the plans and scope of any proposed military exercise 
involving United States personnel thirty days prior to its occurring, 
if amounts expended for construction, either temporary or perma-
nent, are anticipated to exceed $100,000. 
SEC. 114. Not more than 20 per centum of the appropriations 
in Military Construction Appropriations Acts which are limited 
for obligation during the current fiscal year shall be obligated 
during the last two months of the fiscal year. 
(TRANSFER OF FUNDS) 
SEC. 115. Funds appropriated to the Department of Defense 
for construction in prior years shall be available for construction 
authorized for each such military department by the authorizations 
enacted into law during the current session of Congress. 
SEC. 116. For military construction or family housing projects 
that are being completed with funds otherwise expired or lapsed 
for obligation, expired or lapsed funds may be used to pay the 
cost of associated supervision, inspection, overhead, engineering 
and design on those projects and on subsequent claims, if any. 
SEC. 117. Notwithst£inding any other provision of law, any 10USC2860 
funds appropriated to a military department or defense agency note. 
for the construction of military projects may be obligated for a 
military construction project or contract, or for any portion of such 
a project or contract, at any time before the end of the fourth 
fiscal year after the fiscal year for which funds for such project 
were appropriated if the funds obligated for such project (1) are 
obligated from funds available for military construction projects, 
and (2) do not exceed the amoimt appropriated for such project, 
plus any amount by which the cost of such project is increased 
pursuant to law. 
110 STAT. 2392 
PUBLIC LAW 104r-196—SEPT. 16, 1996 
10 use 2860 
note. 
Reports. 
Notice. 
10 use 10503 
note. 
(TRANSFER OF FUNDS) 
SEC. 118. During the five-year period after appropriations avail-
able to the Department of Defense for mihtary construction and 
family housing operation and maintenance and construction have 
expired for obligation, upon a determination that such appropria-
tions will not be necessary for the liquidation of obhgations or 
for making authorized adjustments to such appropriations for 
obligations incurred during the period of availability of such appro-
priations, unobligated balances of such appropriations may be trans-
ferred into the appropriation "Foreign Currencv Fluctuations, 
Construction, Defense" to be merged with and to oe available for 
the same time period and for the same purposes as the appropria-
tion to which trsmsferred. 
SEC. 119. The Secretary of Defense is to provide the Committees 
on Appropriations of the Senate and the House of Representatives 
with an annual report by February 15, containing details of the 
specific actions proposed to be taken by the Department of Defense 
during the current fiscal year to encourage other member nations 
of the North Atlantic Treaty Organization, Japan, Korea, and 
United States allies bordering the /o'abian Gulf to assume a greater 
share of the common defense burden of such nations and the United 
States. 
(TRANSFER OF FUNDS) 
SEC. 120. Dining the current fiscal year, in addition to any 
other transfer authority available to the Department of Defense, 
proceeds deposited to the Department of Defense Base Closure 
Accoiuit estabhshed by section 207(a)(1) of the Defense Authoriza-
tion Amendments and Base Closure and Realignment Act (Public 
Law 100-526) pursuant to section 207(aX2)(C) of such Act, may 
be transferred to the account established by section 2906(a)(1) of 
the Department of Defense Authorization Act, 1991, to be merged 
with, and to be available for the same purposes and the same 
time period as that accoimt. 
SEC. 121. No funds appropriated pursuant to this Act may 
be expended by an entity unless the entity agrees that in expending 
the assistance the entity will comply with sections 2 through 4 
of the Act of March 3, 1933 (41 U.S.C. lOa-lOc, popularly known 
as the "Buy American Act"). 
SEC. 122. (a) In the case of any equipment or products that 
may be authorized to be purchased with financial assistance pro-
vided under this Act, it is the sense of the Congress that entities 
receiving such assistance should, in expending the assistance, pur-
chase only American-made equipment and products. 
(b) In providing financial assistance under this Act, the Sec-
retary of the Treasury shall provide to each recipient of the assist-
ance a notice describing the statement made in subsection (a) 
by the Congress. 
SEC. 123. The National Guard Bureau shall annually prepare 
a future years defense plan based on the requirement and priorities 
of the NationgJ Guard: Provided, That this plan shall be presented 
to the committees of Congress concurrent with the President's 
budget submission for each fiscal year. 
SEC. 124. It is the sense of the Congress that the Secretary 
of the Army should name buildings numbered 5308 and 5309 at 
Redstone Arsenal, Alabama, as the Howell Heflin Complex. 
PUBLIC LAW 104-196—SEPT. 16, 1996 
110 STAT. 2393 
(TRANSFER OF FUNDS) 
SEC. 125. During the current fiscal year, in addition to any 
other transfer authority available to the Department of Defense, 
amounts may be transferred from the account established by section 
2906(a)(1) of the Department of Defense Authorization Act, 1991, 
to the fund established by section 1013(d) of the Demonstration 
Cities and Metropolitan Development Act of 1966 (42 U.S.C. 3374) 
to pay for expenses associated with the Homeowners Assistance 
Program. Any amounts transferred shall be merged with and be 
available for the same purposes and for the same time period 
as the fund to which transferred. 
This Act may be cited as the "Military Construction Appropria-
tions Act, 1997". 
Approved September 16, 1996. 
LEGISLATIVE HISTORY—H.R. 3517: 
HOUSE REPORTS: Nos. 104-591 (Comm. on Appropriations) and 104-721 (Comm. 
of Conference). 
SENATE REPORTS: No. 104-287 (Comm. on Appropriations). 
CONGRESSIONAL RECORD, Vol. 142 (1996): 
May 30, considered and passed House. 
June 26, considered and passed Senate, amended. 
Aug. 1, House agreed to conference report. 
Sept. 5, Senate agreed to conference report. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 32 (1996): 
Sept. 16, Presidential statement.