[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5010 Reported in House (RH)]




                                                 Union Calendar No. 322
107th CONGRESS
  2d Session
                                H. R. 5010

                          [Report No. 107-532]

Making appropriations for the Department of Defense for the fiscal year 
           ending September 30, 2003, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 25, 2002

Mr. Lewis of California, from the Committee on Appropriations, reported 
 the following bill; which was committed to the Committee of the Whole 
       House on the State of the Union and ordered to be printed

_______________________________________________________________________

                                 A BILL


 
Making appropriations for the Department of Defense for the fiscal year 
           ending September 30, 2003, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, That the following sums 
are appropriated, out of any money in the Treasury not otherwise 
appropriated, for the fiscal year ending September 30, 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 stations, 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, 
$26,832,217,000.

                        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 stations, for members of 
the Navy on active duty (except members of the Reserve provided for 
elsewhere), midshipmen, 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, 
$21,874,395,000.

                    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 stations, for members of 
the Marine Corps on active duty (except members of the Reserve provided 
for elsewhere); 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, $8,504,172,000.

                     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 stations, 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, 
$21,957,757,000.

                        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, 
$3,373,455,000.

                        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, $1,897,352,000.

                    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 undergoing 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.

                      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 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 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, 
$5,070,188,000.

                  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 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, 
$2,124,411,000.

                                TITLE II

                       OPERATION AND MAINTENANCE

                    Operation and Maintenance, Army

    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, $23,942,768,000: Provided, That of 
the funds appropriated in this paragraph, not less than $355,000,000 
shall be made available only for conventional ammunition care and 
maintenance.

                    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 payments may be made on 
his certificate of necessity for confidential military purposes, 
$29,121,836,000.

                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, 
$3,579,359,000.

                  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, $27,587,959,000: 
Provided, That notwithstanding any other provision 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 
further, That of the amount provided under this heading, not less than 
$2,000,000 shall 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 techniques 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 Department 
of Defense (other than the military departments), as authorized by law, 
$14,850,377,000, 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, $750,000 shall be available for a 
grant for Outdoor Odyssey, Roaring Run, Pennsylvania, to support the 
Youth Development and Leadership 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, development, 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 
equipment; hire of passenger motor vehicles; travel and transportation; 
care of the dead; recruiting; procurement of services, supplies, and 
equipment; and communications, $1,976,710,000.

                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 
equipment; hire of passenger motor vehicles; travel and transportation; 
care of the dead; recruiting; procurement of services, supplies, and 
equipment; and communications, $1,239,309,000.

            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, $189,532,000.

              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 transportation; 
care of the dead; recruiting; procurement of services, supplies, and 
equipment; and communications, $2,165,604,000.

             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, operation, 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 specifically 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), $4,231,967,000.

             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, maintenance, 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 
specifically authorized by the Chief, National Guard Bureau, 
$4,113,010,000.

          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 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.

                    Environmental Restoration, Navy

                     (including transfer of funds)

    For the Department of the Navy, $256,948,000, to remain available 
until transferred: Provided, That the Secretary of the Navy 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 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 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, 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 available 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.

                Environmental Restoration, Defense-Wide

                     (including transfer of funds)

    For the Department of Defense, $23,498,000, to remain available 
until transferred: Provided, That the Secretary of Defense 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 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 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, Formerly Used Defense Sites

                     (including transfer of funds)

    For the Department of the Army, $212,102,000, 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 available 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 Humanitarian, 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 available 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 
facilitating 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 components, 
and weapon-related technology and expertise; for programs relating to 
the training and support of defense and military personnel 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 September 30, 2005.

        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; 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, $2,214,369,000, to remain available for obligation until 
September 30, 2005, of which not less than $225,675,000 shall be 
available for the Army National Guard and Army Reserve: Provided, That 
of the funds made available under this heading, $45,000,000 shall be 
available only to support a restructured CH-47F helicopter upgrade 
program that increases the production rate to 48 helicopters per fiscal 
year by fiscal year 2005: Provided further, That funds in the 
immediately preceding 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 that is planned to be part of the Objective Force.

                       Missile Procurement, Army

    For construction, procurement, production, modification, and 
modernization of missiles, equipment, including ordnance, ground 
handling equipment, 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, $1,112,772,000, to remain available for obligation until 
September 30, 2005, of which not less than $168,580,000 shall be 
available for the Army National Guard and Army Reserve.

        Procurement of Weapons and Tracked Combat Vehicles, Army

    For construction, procurement, production, and modification of 
weapons and tracked combat vehicles, equipment, including ordnance, 
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, 
$2,248,358,000, to remain available for obligation until September 30, 
2005, of which not less than $40,849,000 shall be available for the 
Army National Guard and Army Reserve.

                    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, $1,207,560,000, to remain available for 
obligation until September 30, 2005, of which not less than 
$124,716,000 shall be available for the Army National Guard and Army 
Reserve.

                        Other Procurement, Army

    For construction, procurement, production, and modification of 
vehicles, including tactical, support, and non-tracked combat vehicles; 
the purchase of not to exceed 40 passenger motor vehicles for 
replacement only; and the purchase of 6 vehicles required for physical 
security of personnel, notwithstanding price limitations applicable to 
passenger vehicles but not to exceed $180,000 per vehicle; 
communications 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, 
$6,017,380,000, to remain available for obligation until September 30, 
2005, of which not less than $1,129,578,000 shall be available for the 
Army National Guard and Army Reserve.

                       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 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, $8,682,655,000, to remain available for obligation 
until September 30, 2005, of which not less than $19,644,000 shall be 
available for the Navy Reserve and Marine Corps Reserve.

                       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, $2,384,617,000, 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, $1,167,130,000, to remain available for 
obligation until September 30, 2005, of which not less than $18,162,000 
shall be for the Navy Reserve and Marine Corps Reserve.

                   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 (CY), $250,000,000;
            Carrier Replacement Program (AP-CY), $243,703,000;
            Virginia Class Submarine, $1,490,652,000;
            Virginia Class Submarine (AP-CY), $706,309,000;
            SSGN Conversion, $404,305,000;
            SSGN Conversion (AP-CY), $421,000,000;
            CVN Refueling Overhauls (AP-CY), $296,781,000;
            Submarine Refueling Overhauls, $231,292,000;
            Submarine Refueling Overhauls (AP-CY), $88,257,000;
            DDG-51, $2,273,002,000;
            DDG-51 (AP-CY), $74,000,000;
            LPD-17, $596,492,000;
            LPD-17 (AP-CY), $8,000,000;
            LCU (X), $9,756,000;
            Outfitting, $300,608,000;
            LCAC SLEP, $81,638,000;
            Mine Hunter SWATH, $7,000,000; and
            Completion of Prior Year Shipbuilding Programs, 
        $644,899,000;
    In all: $8,127,694,000, 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 construction 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 further, 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 not to exceed 141 passenger motor vehicles 
for replacement only, and the purchase of 3 vehicles required for 
physical 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, $4,631,299,000, to 
remain available for obligation until September 30, 2005, of which not 
less than $19,869,000 shall be for the Naval Reserve.

                       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 not to exceed 28 
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, $1,369,383,000, to remain available 
for obligation until September 30, 2005, of which not less than 
$253,724,000 shall be available for the Marine Corps Reserve.

                    Aircraft Procurement, Air Force

    For construction, procurement, lease, and modification of aircraft 
and equipment, including armor and armament, specialized ground 
handling equipment, and training devices, spare parts, and accessories 
therefor; specialized equipment; expansion of public 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, $12,492,730,000, to 
remain available for obligation until September 30, 2005, of which not 
less than $312,700,000 shall be available for the Air National Guard 
and Air Force Reserve: Provided, That of the amount provided under this 
heading, not less than $207,000,000 shall be used only for the 
producability improvement program directly related to the F-22 aircraft 
program: Provided further, 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 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, 
$3,185,439,000, 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, $1,290,764,000, to remain available for 
obligation until September 30, 2005, of which not less than 
$120,200,000 shall be available for the Air National Guard and Air 
Force Reserve.

                      Other Procurement, Air Force

    For procurement and modification of equipment (including ground 
guidance and electronic control equipment, and ground electronic and 
communication equipment), and supplies, materials, and spare parts 
therefor, not otherwise provided for; the purchase of not to exceed 263 
passenger motor vehicles for replacement only, and the purchase of 2 
vehicles required for physical security of personnel, notwithstanding 
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 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, $10,622,660,000, to remain 
available for obligation until September 30, 2005, of which not less 
than $167,600,000 shall be available for the Air National Guard and Air 
Force Reserve.

                       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 not to exceed 99 passenger motor vehicles for replacement 
only; the purchase of 4 vehicles required for physical security of 
personnel, 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 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, 
$3,457,405,000, to remain available for obligation until September 30, 
2005: Provided, That funds provided under this heading for Patriot 
Advanced Capability-3 (PAC-3) missiles may be used for procurement of 
critical parts for PAC-3 missiles to support production of such 
missiles in future fiscal years.

                    Defense Production Act Purchases

    For activities by the Department of Defense pursuant to sections 
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.

                                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, 
$7,447,160,000, to remain available for obligation until September 30, 
2004.

            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, 
$13,562,218,000, 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, 
$18,639,392,000, 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, $17,863,462,000, 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 
Evaluation, in the direction and supervision of operational test and 
evaluation, including initial operational test and evaluation which is 
conducted prior to, and in support of, production decisions; joint 
operational testing and evaluation; and administrative expenses in 
connection therewith, $242,054,000, to remain available for obligation 
until September 30, 2004.

                                TITLE V

                     REVOLVING AND MANAGEMENT FUNDS

                     Defense Working Capital Funds

    For the Defense Working Capital Funds, $1,832,956,000: Provided, 
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 maintain and 
preserve a U.S.-flag merchant fleet to serve the national security 
needs of the United States, $944,129,000, 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 shipboard 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 restrictions 
in the first proviso 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: Provided further, That, notwithstanding any other 
provision of law, $10,000,000 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, 
$14,600,748,000, of which $13,916,791,000 shall be for Operation and 
maintenance, of which not to exceed 2 percent shall remain available 
until September 30, 2004; of which $283,743,000, to remain available 
for obligation until September 30, 2005, shall be for Procurement; of 
which $400,214,000, to remain available for obligation until September 
30, 2004, shall be for Research, development, test and evaluation, and 
of which not less than $10,000,000 shall be available for HIV 
prevention educational activities undertaken in connection with U.S. 
military training, exercises, and humanitarian assistance activities 
conducted primarily in African 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.

         Drug Interdiction and Counter-Drug Activities, Defense

                     (including transfer of funds)

    For drug interdiction and counter-drug activities of the Department 
of Defense, for transfer to appropriations available to the Department 
of Defense for military personnel of the reserve components 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, $859,907,000: Provided, 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 General 
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 payment 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, $212,000,000.

               Intelligence Community Management Account

                     (including transfer of funds)

    For necessary expenses of the Intelligence Community Management 
Account, $162,254,000, 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 responsibilities, 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 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 computer exploitation of materials collected in Federal, 
State, and local law enforcement activity associated with counter-drug, 
counter-terrorism, 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, $25,000,000, 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

                           GENERAL PROVISIONS

    Sec. 8001. No part of any appropriation contained in this Act shall 
be used for publicity or propaganda purposes not authorized 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.

                          (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 
$2,500,000,000 of working capital funds of the Department of Defense or 
funds made available in this Act to the Department 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 Secretary 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 1, 
2003.

                          (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 of 
the contract or that includes an unfunded contingent liability 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 further, 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 determine 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; and
            F/A-18E and F engine.
    Sec. 8009. Within the funds appropriated for the operation and 
maintenance of the Armed Forces, funds are hereby appropriated 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 documentation 
supporting the fiscal year 2004 Department of Defense budget request 
shall be prepared and submitted to the Congress as if 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 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 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 components 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 Department 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 transferred 
to any other appropriation contained in this Act solely for the purpose 
of implementing a Mentor-Protege Program developmental 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 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 components of anchor and mooring chain 
shall be considered to be produced 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 
manufactured outside the United States: Provided further, That when 
adequate 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 disabilities 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 
intensity of services required by the patient, and the availability of 
that care.
    Sec. 8018. Notwithstanding any other provision of law, during 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 installations 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 military forces in that host nation, or such real 
property maintenance and base operating costs that are currently 
executed through monetary 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 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 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 established 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 subcontractor at any tier 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).
    Sec. 8022. None of the funds appropriated by this Act shall be 
available to perform any cost study pursuant to the provisions of OMB 
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 
regulation, 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.
    Sec. 8025. (a) Of the funds for the procurement of supplies or 
services appropriated by this Act, qualified nonprofit agencies for the 
blind 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 subcontracting 
plan for the participation by small business concerns pursuant 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 
nonprofit 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, and from any funds 
available to the Department of Defense, the Department 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 
$23,003,000 shall be available for the Civil Air Patrol Corporation, of 
which $21,503,000 shall be available for Civil Air Patrol Corporation 
operation and maintenance to support readiness activities 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 (department) 
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 membership 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 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 contributions, 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 
6,277 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 1,029 staff years may be 
funded for the defense studies and analysis FFRDCs.
    (e) The Secretary of Defense shall, with the submission of 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.
    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 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 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: 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 Appropriations 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 competition between 
Department of Defense depot maintenance activities and private firms: 
Provided, That the Senior Acquisition Executive 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 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 paragraph (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 2002. 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 Secretary 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 appropriation for 
that fiscal year for salaries and expenses related to administrative 
activities of the Department of Defense, the military departments, 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.

                     (including transfer of funds)

    Sec. 8038. During the current fiscal year, amounts contained in the 
Department of Defense Overseas Military Facility Investment Recovery 
Account established 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 provision 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 Minnesota 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 Secretary of the Air Force under subsection (b).
    (d) Indian 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-1).
    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 investment item for 
the purpose of acquiring a new inventory item for sale or anticipated 
sale during the current fiscal year or a subsequent fiscal year to 
customers of the Department of Defense Working Capital Funds if such an 
item would not have been chargeable 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 documentation 
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 budgeted 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.
    Sec. 8042. None of the funds appropriated by this Act for programs 
of the Central Intelligence Agency shall remain available for 
obligation beyond the current fiscal year, except for funds 
appropriated for the Reserve for Contingencies, which shall remain 
available until September 30, 2004: Provided, That funds appropriated, 
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 General 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 damage, 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. Amounts collected for the use of the facilities of the 
National Science Center for Communications and Electronics during the 
current fiscal year and hereafter pursuant to section 1459(g) of the 
Department of Defense Authorization Act, 1986, and deposited to the 
special account established under subsection 1459(g)(2) of that Act are 
appropriated and shall be available until expended for the operation 
and maintenance of the Center as provided for in subsection 1459(g)(2).
    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 contracting 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 Congress 
that any entity of the Department of Defense, in expending 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 services 
entered into without competition on the basis of an unsolicited 
proposal unless the head of the activity responsible for the 
procurement 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 
        headquarters.
    (b) The Secretary of Defense or Secretary of a military department 
may waive the limitations in subsection (a), on a case-by-case basis, 
if the Secretary determines, and certifies to the Committees on 
Appropriations of the House of Representatives and Senate that the 
granting of the waiver will reduce the personnel requirements 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, industrial 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 provided in Department of Defense 
Appropriations Acts, the following funds are hereby rescinded from the 
following accounts and programs in the specified amounts:
            ``Aircraft Procurement, Army, 2002/2004'', $3,000,000;
            ``Missile Procurement, Army, 2002/2004'', $28,350,000;
            ``Procurement of Weapons and Tracked Combat Vehicles, Army, 
        2002/2004'', $9,500,000;
            ``Procurement of Ammunition, Army, 2002/2004'', 
        $25,500,000;
            ``Procurement, Marine Corps, 2002/2004'', $4,682,000;
            ``Aircraft Procurement, Air Force, 2002/2004'', 
        $23,500,000;
            ``Missile Procurement, Air Force, 2002/2004'', $26,900,000;
            ``Research, Development, Test and Evaluation, Army, 2002/
        2003'', $2,500,000;
            ``Research, Development, Test and Evaluation, Navy, 2002/
        2003'', $2,000,000; and
            ``Research, Development, Test and Evaluation, Air Force, 
        2002/2003'', $67,000,000.
    Sec. 8051. None of the funds available in this Act may be used to 
reduce the authorized positions for military (civilian) technicians 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 reduction 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 specifically 
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 Governor 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) aggregate: 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 facilities 
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 is declining in some 
catchment areas and civilian strength reductions 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, construction, 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, construction, and installation of equipment 
for the renovation of wedge 1.
    (b) Annual Adjustment.--For purposes of applying the limitation in 
subsection (a), the Secretary shall adjust the cost for the renovation 
of wedge 1 by any increase or decrease in costs attributable 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 
        September 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 
certification under subsection (a), the Secretary shall report the 
projected 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 requirement 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 environmental 
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.
    (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 appropriations 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: Provided, 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 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: 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 nonreimbursable 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 appropriated 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 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 
requirements of this section, on a case-by-case basis, in the interest 
of national security.
    Sec. 8065. 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 provided for in Defense 
Appropriations Acts, or provisions of Acts providing supplemental 
appropriations for the Department of Defense.
    Sec. 8066. (a) Limitation on Transfer of Defense Articles 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 committees, 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--
            (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-
        enforcement, 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 authority of this 
section may not exceed $15,000,000,000: Provided further, That the 
exposure fees charged and collected by the Secretary for each guarantee 
shall be paid by the country involved and shall not be financed as part 
of a loan guaranteed by the United States: Provided further, That the 
Secretary shall provide quarterly reports to the Committees on 
Appropriations, Armed Services, 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 administrative 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 Johnston Atoll 
for the purpose of storing or demilitarizing such munitions 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 balance, 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;
            (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 
        appropriation 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, the Secretary of Defense 
may waive reimbursement of the cost of conferences, 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 reimbursement, 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 
Kaiserslautern Military Community in the Federal Republic of Germany: 
Provided, That in the City of Kaiserslautern 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.
    Sec. 8076. None of the funds appropriated in title IV of this Act 
may be used to procure end-items for delivery to military forces for 
operational training, operational use or inventory requirements: 
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.
    (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 Corporation's 
counterdrug program, including its demand reduction program involving 
youth programs, as well as operational and training drug reconnaissance 
missions for Federal, State, and local government 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.
    (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 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(l)(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 $615,000,000 to reflect savings from favorable foreign 
currency fluctuations, to be derived as follows:
            ``Military Personnel, Army'', $154,000,000;
            ``Military Personnel, Navy'', $11,000,000;
            ``Military Personnel, Marine Corps'', $21,000,000;
            ``Military Personnel, Air Force'', $49,000,000;
            ``Operation and Maintenance, Army'', $189,000,000;
            ``Operation and Maintenance, Navy'', $40,000,000;
            ``Operation and Maintenance, Marine Corps'', $3,000,000;
            ``Operation and Maintenance, Air Force'', $80,000,000; and
            ``Operation and Maintenance, Defense-Wide'', $68,000,000.
    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 propulsion diesel 
engines and propulsors are manufactured in the United States by a 
domestically operated entity: Provided, 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 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, 
Test and Evaluation, Defense-Wide'' for any advanced concept technology 
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 congressional 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 governing 
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 supervision 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 attributable to official 
Government travel arranged by Government Contracted 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 Information 
Technology Systems With DOD 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 technology system as defined by the Under Secretary of 
Defense (Comptroller).
    (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 Defense (Comptroller) may require additional 
certifications, as appropriate, with respect to any such system.
    (2) The Chief Information Officer shall provide the congressional 
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 congressional 
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 
        Secretary 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 Directive 
        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 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 
demilitarization 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 beverages 
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, under regulations 
prescribed by the Secretary of Defense, the Center of Excellence for 
Disaster Management and Humanitarian Assistance may also pay, or 
authorize payment for, the expenses of providing or facilitating 
education and training for appropriate military and civilian personnel 
of foreign countries in disaster management, peace operations, and 
humanitarian assistance.
    Sec. 8094. (a) The Department of Defense is authorized to enter 
into agreements with the Veterans Administration 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 maximize Federal resources in the provision of 
health care services by federally-funded health agencies, applying 
telemedicine technologies. 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 
consultation policy, consistent with Executive Order No. 13084 (issued 
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 services 
more responsive to the needs of the Native Hawaiian community.
    (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.
    Sec. 8095. Of the amounts appropriated in this Act for the Arrow 
missile defense program under the heading ``Research, Development, Test 
and Evaluation, Defense-Wide'', $131,700,000 shall be made available 
for the purpose of continuing the Arrow System Improvement Program 
(ASIP), continuing ballistic missile defense interoperability with 
Israel, and continuing development of an Arrow production capability in 
the United States.
    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 program.

                     (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 Appropriations 
Act, 1997 (titles I through VIII of the matter under 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, $2,000,000 
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. The total amount appropriated in Title II of this Act is 
hereby reduced by $51,000,000, to reflect savings attributable to 
improvements in the management of advisory and assistance services 
contracted by the military departments, to be derived as follows:
            ``Operation and Maintenance, Army'', $11,000,000;
            ``Operation and Maintenance, Navy'', $10,000,000; and
            ``Operation and Maintenance, Air Force'', $30,000,000.

                     (including transfer of funds)

    Sec. 8101. Of the amounts appropriated in this Act under the 
heading ``Shipbuilding and Conversion, Navy,'' $644,899,000 shall be 
available until September 30, 2003, to fund prior year shipbuilding 
cost increases: Provided, That upon enactment of this Act, the 
Secretary of Defense shall transfer such funds to the following 
appropriations in the amount specified: Provided further, That the 
amounts transferred shall be merged with and shall be available for the 
same purposes as the appropriations to which transferred:
            To:
                    Under the heading, ``Shipbuilding and Conversion, 
                Navy, 1996/2003'':
                    LPD-17 Amphibious Transport Dock Ship Program, 
                $232,681,000;
                    Under the heading, ``Shipbuilding and Conversion, 
                Navy, 1998/2003'':
                    DDG-51 Destroyer Program, $47,400,000;
                    New SSN, $156,682,000;
                    Under the heading, ``Shipbuilding and Conversion, 
                Navy, 1999/2003'':
                    LPD-17 Amphibious Transport Dock Ship Program, 
                $10,000,000;
                    DDG-51 Destroyer Program, $56,736,000;
                    New SSN, $120,000,000;
                    Under the heading, ``Shipbuilding and Conversion, 
                Navy, 2000/2003'':
                    DDG-51 Destroyer Program, $21,200,000;
                    Under the heading, ``Shipbuilding and Conversion, 
                Navy, 2001/2008'':
                    DDG-51 Destroyer Program, $200,000.
    Sec. 8102. The Secretary of the Navy may settle, or compromise, 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 without 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 hereafter 
for Operation and Maintenance for the Armed Forces may be used, 
notwithstanding any other provision of law, for the purchase of 
ultralightweight camouflage net systems as unit spares.

                     (including transfer of funds)

    Sec. 8105. During the current fiscal year and hereafter, 
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 Evaluation, Army appropriation account 
to be used only for the continuation 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: Provided, 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 section 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 Appropriations 
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 assessment 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 
regulation, the Secretary of Defense may exercise the provisions of 38 
U.S.C. 7403(g) for occupations listed 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. Section 1111(c) of title 10 is amended in the first 
sentence by striking ``may'' after the Secretary of Defense and 
inserting ``shall'' after the Secretary of Defense.

                     (including transfer of funds)

    Sec. 8109. During the current fiscal year, amounts in or credited 
to the Defense Cooperation Account under 10 U.S.C. 2608(b) are hereby 
appropriated and shall be available for obligation and expenditure 
consistent with the purposes for which such amounts were contributed 
and accepted for transfer by the Secretary of Defense to such 
appropriations or funds of the Department of Defense as the Secretary 
shall determine, 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 the Secretary shall provide written 
notification to the congressional defense committees 30 days prior to 
such transfer: Provided further, That the Secretary of Defense shall 
report to the Congress quarterly all transfers made pursuant to this 
authority: Provided further, That this transfer authority is in 
addition to any other transfer authority available to the Department of 
Defense.
    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.
    Sec. 8112. The amount appropriated in title II of this Act is 
hereby reduced by $470,000,000 to reflect Working Capital Fund cash 
balance and rate stabilization adjustments, to be derived as follows:
            ``Operation and Maintenance, Navy'', $440,000,000; and
            ``Operation and Maintenance, Air Force'', $30,000,000.
    Sec. 8113. Notwithstanding any other provision in this Act, the 
total amount appropriated in this Act is hereby reduced by 
$475,000,000, to reduce excess funded carryover, to be derived as 
follows:
            ``Operation and Maintenance, Army'', $48,000,000;
            ``Operation and Maintenance, Navy'', $285,000,000;
            ``Operation and Maintenance, Marine Corps'', $8,000,000; 
        and
            ``Operation and Maintenance, Air Force'', $134,000,000.
    Sec. 8114. Notwithstanding any other provision of law, none of the 
funds appropriated or otherwise made available by this or any other 
appropriations Acts may be obligated for the purpose of transferring 
the Medical Free Electron Laser (MFEL) Program from the Department of 
Defense to any other Government agency.
    Sec. 8115. (a) In addition to the amounts provided elsewhere in 
this Act, the amount of $4,000,000 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 $4,000,000 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 Maintenance 
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. (a) Commission on Adequacy of Armed Forces Training 
Facilities.--The Secretary of Defense shall establish an advisory 
committee under section 173 of title 10, United States Code, to assess 
the availability of adequate training facilities for the Armed Forces 
in the United States and overseas and the adverse impact of residential 
and industrial encroachment, requirements of environmental laws, and 
other factors on military training and the coordination of military 
training among the United States and its allies.
    (b) Members.--The advisory committee shall be composed of persons 
who are not active-duty members of the Armed Forces or officers or 
employees of the Department of Defense.
    (c) Report.--Not later than July 31, 2003, the advisory committee 
shall submit to the Secretary of Defense and the congressional defense 
committees a report containing the results of the assessment and such 
recommendations as the committee considers necessary.
    (d) Funding.--Funds for the activities of the advisory committee 
shall be provided from amounts appropriated for operation and 
maintenance for Defense-Wide activities for fiscal year 2003.
    Sec. 8118. (a) Limitation on Additional NMCI 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, Technology, and Logistics and the Chief 
Information Officer of the Department of Defense certify to the 
congressional defense committees 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) There is a full transition of not less than 20,000 work 
        stations to the Navy-Marine Corps Intranet.
            (2) Those work stations undergo operational test and 
        evaluation--
                    (A) to evaluate and demonstrate the ability of the 
                infrastructure and services of the Navy-Marine Corps 
                Intranet to support Department of the Navy operational, 
                office, and business functionality and processes; and
                    (B) to evaluate the effectiveness and suitability 
                of the Navy-Marine Corps Intranet to support 
                accomplishment of Navy and Marine Corps missions.
            (3) The Director of Operational Test and Evaluation of the 
        Department of Defense completes an assessment of the 
        operational test and evaluation and provides the results of the 
        assessment and recommendations to the Under Secretary of 
        Defense for Acquisition, Technology, and Logistics and the 
        Chief Information Officer of the Department of Defense.
            (4) The Under Secretary of Defense for Acquisition, 
        Technology, and Logistics and the Chief Information Officer of 
        the Department of Defense determine that the results of the 
        test and evaluation 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 Evaluation 
(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 production 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;
    (b) Certification that any future retrofit costs to F-22 production 
aircraft, ordered or delivered prior to the conclusion of DIOT&E, that 
result from changes required from developmental or operational test and 
evaluation will not increase the total F-22 program cost as estimated 
in the President's fiscal year 2003 budget; and
    (c) 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 submits 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 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 January 10, 
2002, for reconstruction 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. (a) Termination of Crusader Artillery System.--
Consistent with the budget amendment to the fiscal year 2003 
President's Budget submitted to Congress on May 29, 2002, for 
termination of the Crusader Artillery System, the Department of Defense 
is authorized to terminate the Crusader program. Such termination shall 
be carried out in a prudent and deliberate manner in order to provide 
for the orderly termination of the program.
    (b) Acceleration of Other Indirect Fire Systems.--Of the funds 
appropriated or otherwise made available in this Act, under the heading 
``Research, Development, Test, and Evaluation, Army'', $305,109,000 
shall be available only to accelerate the development, demonstration, 
and fielding of indirect fire platforms, precision munitions, and 
related technology.
    (c) Acceleration of Objective Force Artillery and Resupply 
Systems.--(1) Immediately upon termination of the Crusader Artillery 
System program, the Department of the Army shall enter into a contract 
to leverage technologies developed with funds invested in fiscal year 
2002 and prior years under the Crusader Artillery System program, the 
Future Scout and Cavalry System program, the Composite Armored Vehicle 
program, and other Army development programs in order to develop and 
field, by 2008, a Non-Line of Sight (NLOS) Objective Force artillery 
system and Resupply Vehicle variants of the Future Combat System.
    (2) Of the funds appropriated or otherwise made available in this 
Act under the heading ``Research, Development, Test, and Evaluation, 
Army'', $368,500,000 is available only for the Objective Force Indirect 
Fire Systems for the Army to implement this subsection: Provided, That 
none of the funds in this or any other Act shall be available for 
research, development, test, or evaluation of any Objective Force or 
Future Combat System indirect fire system until the Secretary of the 
Army has submitted a written certification to the congressional defense 
committees that a contract has been awarded pursuant to subsection 
(c)(1) containing a program plan and schedule for production and 
fielding a Future Combat System Non-Line of Sight Objective Force 
artillery system and Resupply Vehicle variants by 2008.
    Sec. 8122. None of the funds made available in this Act may be 
transferred to any department, agency, or instrumentality of the United 
States Government, except pursuant to a transfer made by, or transfer 
authority provided in, this Act or any other appropriations Act.
    This Act may be cited as the ``Department of Defense Appropriations 
Act, 2003''.


                                                 Union Calendar No. 322

107th CONGRESS

  2d Session

                               H. R. 5010

                          [Report No. 107-532]

_______________________________________________________________________

                                 A BILL

Making appropriations for the Department of Defense for the fiscal year 
           ending September 30, 2003, and for other purposes.

_______________________________________________________________________

                             June 25, 2002

Committed to the Committee of the Whole House on the State of the Union 
                       and ordered to be printed