    [Senate Hearing 107-273]
    [From the U.S. Government Publishing Office]

                                                           S. Hrg. 107-273

           MILITARY CONSTRUCTION APPROPRIATIONS FOR FISCAL YEAR 2002

    =======================================================================

                                    HEARINGS

                                    before a

                              SUBCOMMITTEE OF THE

                COMMITTEE ON APPROPRIATIONS UNITED STATES SENATE

                          ONE HUNDRED SEVENTH CONGRESS

                                 FIRST SESSION

                                       on

                               H.R. 2904/S. 1460

        AN ACT MAKING APPROPRIATIONS FOR MILITARY CONSTRUCTION FOR THE
     DEPARTMENT OF DEFENSE FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 2002,
                             AND FOR OTHER PURPOSES

                                   __________

             Printed for the use of the Committee on Appropriations

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                                     senate

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                          COMMITTEE ON APPROPRIATIONS

                    ROBERT C. BYRD, West Virginia, Chairman
    DANIEL K. INOUYE, Hawaii             TED STEVENS, Alaska
    ERNEST F. HOLLINGS, South Carolina   THAD COCHRAN, Mississippi
    PATRICK J. LEAHY, Vermont            ARLEN SPECTER, Pennsylvania
    TOM HARKIN, Iowa                     PETE V. DOMENICI, New Mexico
    BARBARA A. MIKULSKI, Maryland        CHRISTOPHER S. BOND, Missouri
    HARRY REID, Nevada                   MITCH McCONNELL, Kentucky
    HERB KOHL, Wisconsin                 CONRAD BURNS, Montana
    PATTY MURRAY, Washington             RICHARD C. SHELBY, Alabama
    BYRON L. DORGAN, North Dakota        JUDD GREGG, New Hampshire
    DIANNE FEINSTEIN, California         ROBERT F. BENNETT, Utah
    RICHARD J. DURBIN, Illinois          BEN NIGHTHORSE CAMPBELL, Colorado
    TIM JOHNSON, South Dakota            LARRY CRAIG, Idaho
    MARY L. LANDRIEU, Louisiana          KAY BAILEY HUTCHISON, Texas
    JACK REED, Rhode Island              MIKE DeWINE, Ohio
                         Terry Sauvain, Staff Director
                     Charles Kieffer, Deputy Staff Director
                   Steven J. Cortese, Minority Staff Director
                                     ------

                     Subcommittee on Military Construction

                     DIANNE FEINSTEIN, California, Chairman
    DANIEL K. INOUYE, Hawaii             KAY BAILEY HUTCHISON, Texas
    TIM JOHNSON, South Dakota            CONRAD BURNS, Montana
    MARY L. LANDRIEU, Louisiana          LARRY CRAIG, Idaho
    HARRY REID, Nevada                   MIKE DeWINE, Ohio
    ROBERT C. BYRD, West Virginia        TED STEVENS, Alaska
      (ex officio)                         (ex officio)

                               Professional Staff
                                Christina Evans
                                  B.G. Wright
                            Sid Ashworth (Minority)

                             Administrative Support
                                   Angela Lee
                           Alycia Farrell (Minority)

                                C O N T E N T S

                                  ----------

                             Tuesday, July 31, 2001

                                                                       Page
    Department of Defense:
        Office of the Secretary of Defense...........................     1
        Defense agencies:
            Military Community and Family Policy.....................    27
            Ballistic Missile Defense Organization...................    27
            Special Operations Command...............................    27
            Tricare Management Activity..............................    27
        Department of the Army.......................................    51

                           Wednesday, August 1, 2001

    Department of Defense:
        Department of the Navy.......................................    85
        Department of the Air Force..................................   111

           MILITARY CONSTRUCTION APPROPRIATIONS FOR FISCAL YEAR 2002

                                  ----------

                             TUESDAY, JULY 31, 2001

                                           U.S. Senate,
               Subcommittee of the Committee on Appropriations,
                                                        Washington, DC.
        The subcommittee met at 2:33 p.m., in room SD-138, Dirksen
    Senate Office Building, Hon. Dianne Feinstein (chairman)
    presiding.
        Present: Senators Feinstein, Johnson, Hutchison, and Craig.

                             DEPARTMENT OF DEFENSE

                       Office of the Secretary of Defense

    STATEMENT OF HON. DOV S. ZAKHEIM, UNDER SECRETARY OF
                DEFENSE (COMPTROLLER)
    ACCOMPANIED BY RAYMOND F. DUBOIS, JR., DEPUTY UNDER SECRETARY OF
                DEFENSE FOR INSTALLATION AND ENVIRONMENT

                 opening statement of senator dianne feinstein

        Senator Feinstein. Good afternoon. I know that Senator
    Hutchison is on her way, but in the interest of time and
    because we have a vote coming up at about 3 o'clock, I thought
    I might just start and make my opening remarks, and then
    hopefully Senator Hutchison will be here and she will make
    hers.
        I would like to welcome all of the witnesses. I would like
    to thank them for appearing before the subcommittee. I look
    forward to working with Senator Hutchison. We are good friends,
    and here she comes right now. I was just saying I look forward
    to working with you and am delighted that we are together as
    chairman and ranking member of the MILCON subcommittee.
        The fiscal year 2002 military construction budget that is
    before us today is really a good news story in just about all
    respects. The top line is nearly $10 billion and, with the
    exception of BRAC, virtually every account in the budget has
    seen significant increases. I am especially pleased to see the
    emphasis this budget places upon quality of life issues,
    particularly improved housing. We ask a great deal of our men
    and women in uniform. We cannot begin to pay them what they
    deserve, but we certainly should not ask them to live in
    substandard housing, to work in dilapidated facilities, or
    forego the kind of community amenities that so many of us take
    so for granted. Our military personnel and their families have
    enough to worry about in carrying out their mission without
    being burdened by major quality of life concerns.
        I am also happy to see the hefty across the board increase
    in funding for the guard and reserve components. For years
    Congress has been urging the executive branch to submit
    realistic guard and reserve budgets. For years Congress has
    seen no results. This budget submission really marks a turning
    point in recognizing the importance and the funding need of the
    guard and the reserve.
        I am, however, concerned about the level of funding for
    BRAC in this budget. The $532 million proposed by the President
    is just over half of last year's appropriated amount for BRAC.
    I understand that the BRAC process is winding down, but I also
    understand that environmental cleanup bills associated with
    BRAC are climbing. The Navy reports that it has $92 million in
    unfunded, must-pay BRAC environmental compliance costs for
    fiscal year 2002.
        We really need to address these costs and this budget
    frankly does not appear to do so. It seems strange to me that
    there may be plans to request a new round of BRAC closures when
    we have not even paid the tab for the last go-around.
        But while this is on balance a good news budget, I hope it
    is more than just a 1-year spike. The infrastructure needs of
    the military are enormous regardless of whether we have another
    round of BRAC or not, regardless of how we rejigger our force
    structure overseas. The fact remains that the United States
    will always need to support a robust military. We will need new
    facilities to meet new mission demands and we will need to
    maintain and sustain our existing military facilities.
        Infrastructure investments are not the kind of gee-whiz
    technology that tend to capture large infusions of money.
    Building a barracks is not as exciting as building the Joint
    Strike Fighter. But without adequate housing for the families,
    we will not have pilots to fly those planes. Without adequate
    aircraft maintenance shops and runways, we will not be able to
    keep the planes flying. Simply put, without an adequate
    investment in infrastructure, we will not have the best
    military in the world.
        So I look forward very much to hearing from our witnesses
    today. First, Senator Hutchison, it is great to be with you and
    perhaps you would like to make your remarks.

                   statement of senator kay bailey hutchison

        Senator Hutchison. Thank you, Madam Chairman, and I too
    appreciate the opportunity to work with you. I had thought it
    would be with reverse chairs, but nevertheless, whatever chair
    it is, I think we will be able to do what is right for our
    military and for our country, and I really look forward to
    working with you.
        I look forward to hearing from each of the panels today on
    the military construction priorities. The large increase in
    military construction in the President's budget request is
    important to the modernization of our facilities and the
    transformation of our forces and facilities for the future,
    certainly a step in the right direction.
        I also want to recognize the Department of Defense and the
    services for restoring the 5 percent contingency fund back into
    the project budgets. I think that is critical to the long-term
    stability and effective execution of the military construction
    program.
        I do have questions about the increasing percentage of our
    construction budget allocated to bases overseas. It is
    absolutely necessary to have some forces forward deployed.
    Currently we have 74 installations outside the United States,
    with almost 213,000 personnel permanently stationed in 140
    countries. My question is have these commitments subsumed
    funding that in some cases might have been better used to
    maintain or improve our enduring domestic base infrastructure?
        The fiscal year 2002 budget includes significant funding
    for overseas projects. We continue to make these significant
    infrastructure investments overseas before the completion of
    Secretary Rumsfeld's defense review. It seems like military
    construction realignment initiatives are being put ahead of the
    policy decisions that we would need to base our decisions on.
        It is critical that the Department of Defense conduct a
    comprehensive review of these overseas installations to ensure
    they continue to be correctly balanced against other
    priorities.
        I look forward to hearing from all of the panels today and
    seeing how the services plan to balance their priorities.
        Thank you, Madam Chairman.
        Senator Feinstein. Thanks very much, Senator.
        I am now pleased to welcome Dr. Dov Zakheim, the Defense
    Department Comptroller, and Mr. Ray DuBois, the Deputy Under
    Secretary of Defense for Installations and Environment.
    Secretaries, because of limited time I ask you perhaps to
    summarize your statements. As you know, your written statement
    will go in the record. Then we will have adequate time for
    questions.

                        statement of dr. dov s. zakheim

        Mr. Zakheim. Thank you very much, Madam Chair, Senator
    Hutchison. I will do just that. I have a longer statement. With
    your permission, I hope it can be inserted into the record. I
    do thank you for providing me with the opportunity to present
    the President's fiscal year 2002 Department of Defense military
    construction budget, and I want particularly to thank you both
    and the rest of the committee for your unwavering support for
    our requests over these past years. I know that the men and
    women in uniform owe you and the committee a great deal of
    gratitude for your support of quality of life initiatives.
        I want to thank you and the committee as well for the
    support you have provided during the certainly very complicated
    base realignment and closure process that continues. As you
    know, the authority for that process is saving us considerable
    money and we have plowed much of that into readiness items.
    Regrettably, in the past we did not plow enough back into our
    facilities, and the fiscal year 2002 budget attempts to reverse
    this trend in a significant way. We have increased the level of
    funding we traditionally spend on military construction and
    family housing and hope to spend even more in the future to
    arrest the dismal conditions of many of our facilities.
        I am sure that you are also concerned with funding for the
    ballistic missile defense initiative and Dr. Sanders will speak
    to you in the next panel about the specifics of that proposal.
    Let me say that we are constructing the testbed facility and
    that it in no way abrogates the ABM treaty.
        Just a brief perspective on the budget as a whole before I
    turn it over to my colleague Ray DuBois. The fiscal year 2002
    budget for the Department of Defense prepares for the future
    while addressing current needs through robust funding to
    improve morale, improve readiness, raise defense capabilities,
    and update our aging facilities.
        In terms of this committee's specific concerns, our request
    for the military construction and family housing programs in
    fiscal year 2002 totals $10 billion and includes funding for
    more than 450 construction projects at more than 220 locations
    worldwide. The budget request represents a 14 percent increase
    over the amount requested in fiscal 2001 and is $936 million
    over last year's enacted level.
        This increase incorporates our initiative to streamline and
    upgrade the Department's infrastructure and to restore degraded
    facilities to a mission capable status. The budget reduces the
    Department's average facilities replacement rate from 192 years
    to about 100 years as we move closer to commercial standards.
        We have taken special care to ensure that the National
    Guard and reserve facilities requirements were fully and fairly
    incorporated in this portion of the process. As a result, we
    have requested $393 million more for critical Guard and Reserve
    projects than was requested in past budgets. Our budget
    improves the quality of military housing and accelerates the
    elimination of substandard housing. We seek to accelerate the
    elimination of housing with privatization.
        We are changing the way we do business in our housing and
    utilities systems, where, of course, it is prudent to do so. We
    also plan to shed our excess infrastructure through a variety
    of methods ranging from demolition of unneeded structures to
    installations closures. As part of this effort, we are
    designing an efficient facilities initiative or, as it is
    called, EFI, to rationalize and restructure our bases, labs,
    and other DOD facilities. While our original BRAC programs have
    been reduced to environmental and other caretaker efforts, we
    very much require your support for a new EFI-base closure
    initiative in fiscal year 2003.
        This effort makes good business sense and is necessary to
    free up funds for our highest priorities.
        As you directed in report language last year, our military
    construction budget also restores funds for contingencies
    comprising 5 percent of project costs. Such funding had been
    excluded in the past 2 years and we agree with you that these
    funds are vital, not only to help offset unforeseen cost
    growth, but also to fund improvements identified during
    construction.
        This initiative is another example of the Department's
    overall commitment to realistic budgeting.
        Our budget for family housing supports a $4.1 billion
    program to construct, improve, operate, and maintain family
    housing units. It also seeks to privatize those units that are
    no longer critical to supporting a base's mission requirements.
    This program includes an additional $400 million in support of
    the President's goal to improve housing for military members
    and their families. The additional funding will be used to
    improve the quality of 14,675 more houses while accelerating
    the elimination of substandard military housing.
        In closing, Madam Chairman, I wish to thank you, Senator
    Hutchison, and other members for providing me with this
    opportunity to discuss our program. I would like to reiterate
    that our request for military construction and family housing
    represents a balanced program and that it is essential to
    permit the services to support weapon systems being deployed,
    to accomplish new or changing missions, and to provide enhanced
    quality of life to service members and their families.

                               prepared statement

        Madam Chair, Senator Hutchison, members of the committee,
    staff: I am ready to provide any additional information you may
    request. Thank you very much.
        [The statement follows:]

                   Prepared Statement of Hon. Dov S. Zakheim

                                  introduction
        Madam Chair, Senator Hutchison, members of the committee, I am
    honored to present the President's fiscal year 2002 Department of
    Defense (DOD) Military Construction budget. Our request for Military
    Construction and Family Housing programs totals $10.0 billion. It
    includes funding for over 450 construction projects at more than 220
    locations to provide facilities that the Armed Forces, the Defense
    Agencies, and NATO Security Investments urgently require. This level of
    funding represents a balanced program that is essential to support
    weapon systems being deployed, to accomplish new or changing missions,
    to address environmental compliance requirements, to replace facilities
    that are no longer economical to repair, to provide enhanced quality of
    life for service members and to continue caretaker efforts at closed
    bases.
        I would like to provide a brief overview of the fiscal year 2002
    Defense budget and then to outline the Military Construction and Family
    Housing requests.
                        fiscal year 2002 budget overview
        The fiscal year 2002 budget balances preparation for the future
    with current needs through robust funding to improve morale, boost
    readiness, transform defense capabilities, and upgrade aging
    facilities.
        The fiscal year 2002 budget puts people first. It includes a
    targeted pay raise of at least 5 percent for all grades and up to 10
    percent for mid-grades where retention is hardest. The budget provides
    for a reduction of out-of-pocket housing costs for people living off
    base from 15 percent in 2001 to 11.3 percent in 2002, towards a goal of
    zero costs in 2005. Also, military healthcare is funded realistically
    at $17.9 billion in fiscal year 2002 (up sharply from $12.1 billion in
    fiscal year 2001),
        The fiscal year 2002 budget bolsters readiness by beginning to
    reverse the decline caused by underfunding, the high tempo of
    operations, and escalating maintenance costs for aging equipment and
    facilities.
        The fiscal year 2002 request for military construction and family
    housing represents a 14 percent increase over the amount requested in
    fiscal year 2001. This increase incorporates our initiative to
    streamline and upgrade DOD Infrastructure and to restore degraded
    facilities that are rated either C-3 or C-4 in readiness. The budget
    reduces DOD's facilities replacement rate from 192 years to about 100
    years as we move closer to commercial standards over the long term,
    improves the quality of military housing and accelerates elimination of
    substandard housing. We are also changing the way we do business by
    privatizing our housing and utility systems where it is prudent to do
    so.
        In addition, we are attempting to shed our excess infrastructure
    through a variety of methods ranging from demolition of excess
    structures to closure of installations. As part of this effort, we are
    planning an Efficient Facilities Initiative (EFI) to rationalize and
    restructure bases, laboratories, and other DOD facilities. While our
    original BRAC programs have been reduced to caretaker efforts, we very
    much need Congress to support our plans for a new EFI base closure
    initiative in 2003. This effort makes good business sense in and of
    itself; but it also is imperative in order to free up funds to help pay
    for our highest priorities.
                             military construction
        Our budget provides for a $5.9 billion program to meet the military
    construction requirements of the Military Departments and Defense
    Agencies. This level of funding demonstrates the Department's desire to
    ensure a substantial construction program in support of our highest
    priorities. We continue to emphasize improving the quality of life for
    our service members and their families while ensuring that the
    facilities to support weapon systems are available when needed. The
    following is a brief overview of the key elements of this request.
        Active Forces and Defense-Wide.--The fiscal year 2002 Military
    Construction Budget of $4.6 billion for the Active Forces and Defense-
    Wide programs is over a billion dollars higher than the fiscal year
    2001 enacted level. The additional funding will be targeted towards
    fixing the most critically deficient facilities. The request includes
    approximately $1.3 billion for barracks projects; $940 million for
    operational and training facilities; $719 million for maintenance and
    production facilities; $330 million for community facilities; $193
    million for medical facilities; $187 million for utility facilities;
    $183 million for administrative facilities; $168 million for supply
    facilities; and $148 million for research and development facilities.
        Guard and Reserve Facilities.--The $615.2 million military
    construction program requested for the Reserve Components is balanced
    both to provide the necessary facilities to support current and new
    missions and to replace aging facilities that are no longer economical
    to repair. The fiscal year 2002 request is almost $400 million more
    than the fiscal year 2001 request. The program includes 69 major
    construction projects as well as planning and design work and minor
    construction. Most projects are training centers, maintenance
    facilities, and operational facilities in support of the Reserve
    Components' mission.
        Quality of Life.--The fiscal year 2002 construction program
    reflects the Department's commitment to improve the quality of life for
    the military. A significant amount of the military construction
    program--approximately $1.3 billion--will fund new or improved barracks
    for unaccompanied military personnel. This funding level will enable us
    to execute 65 projects to construct or modernize barracks and to
    provide approximately 15,000 new or improved living spaces. The Army,
    Navy and Air Force are continuing to build to the ``1+1'' design (one
    soldier to a room with a shared bathroom) for personnel permanently
    assigned to a base. The Marine Corps is building to the ``2+0'' design
    (2 E1-E3s to a room, each with its own bathroom) in an effort to
    improve living conditions of Marines sooner than if they followed the
    1+1 design standard. In addition, the fiscal year 2002 construction
    program will allow us to construct or modernize 13 schools for
    dependents, 13 physical fitness centers, 4 child development centers, 2
    education centers, 2 chapels, and an assembly building.
        Overseas Construction.--In keeping with congressional direction,
    new construction in overseas areas is being requested only where
    construction requirements are of high priority, absolutely essential to
    our overseas basing needs, and after all burden-sharing opportunities
    have been explored and found to be unworkable. The fiscal year 2002
    military construction program of $720 million for projects in overseas
    areas meets these criteria. Of the $720 million, $228 million is
    designated for Korea, $221 million for Germany, $135 million for other
    European sites, $123 million for various locations in the Pacific and
    $13 million for a Forward Operating Location in El Salvador to support
    drug interdiction efforts.
        The Secretary of Defense recently asked the Unified Combatant
    Commands to develop strategic overseas basing plans after completion of
    the Quadrennial Defense Review, taking a long-term look at our forces
    to ensure we optimize our facilities overseas.
        Missile Defense.--The fiscal year 2002 budget reflects a
    restructured missile defense program. One of the results of this new
    structure is the funding of selected construction activities associated
    with the missile defense test bed in the Research, Development, Test
    and Evaluation (RDT&E), Defense-Wide appropriation. The new structure
    will provide the flexibility needed to design and test missile defense
    systems. We need to fund certain program activities in the RDT&E
    account in order to expand the current test bed infrastructure in the
    most efficient manner, and with the greatest amount of flexibility.
        Medical Projects.--Consistent with the Department's emphasis on
    quality of life improvements and readiness, our request reflects the
    high priority placed on health care. The Department requests $193.3
    million in appropriations for 22 medical projects, including $19
    million for the third phase of a $133 million replacement hospital at
    Ft. Wainwright, Alaska; $15 million for the replacement of four medical
    facilities at Camp Pendleton, California; $32 million for 2 clinic
    replacements in Florida; and $84 million for new and replacement
    facilities in Colorado, Georgia, Maryland, New Mexico, Texas,
    Washington and Wyoming. In addition, approximately $43 million of the
    total medical construction program supports 3 replacement medical
    facilities in Germany, Greenland and Portugal.
        Chemical Demilitarization Construction.--The Department continues
    to make steady progress in its chemical demilitarization efforts. To
    that end, the Department is budgeting $184 million in fiscal year 2002
    for the construction of chemical demilitarization facilities.
        Two facilities are now in operation. The prototype incineration
    facility on Johnston Atoll in the Pacific Ocean is fully operational
    and has destroyed 100 percent of the original chemical agent stockpile
    stored on the Atoll. In addition, the Tooele, Utah Chemical Agent
    Disposal Facility began operation in August 1996 and has destroyed over
    37 percent of the original chemical agent stockpile stored at that
    site. We have completed construction of the Anniston, Alabama Chemical
    Agent Disposal Facility, and have completed 99 percent of the Umatilla,
    Oregon facility. In January 1999, the Army issued a full Notice to
    Proceed to Raytheon Demilitarization Company to begin construction
    activities for the Pine Bluff Chemical Agent Disposal Facility at Pine
    Bluff Arsenal in Arkansas. Construction efforts for the Pine Bluff
    facility are currently 55 percent complete.
        The Army has selected alternative technologies to be used in lieu
    of the baseline incineration process at the two bulk-only chemical
    agent storage sites, Aberdeen Proving Ground, Maryland and Newport,
    Indiana. Systems contractors were selected for the Aberdeen facility in
    October 1998, and for the Newport facility in February 1999.
    Construction of the Aberdeen facility is 29 percent complete while the
    Newport facility is at just under 10 percent complete. Additional
    technologies are being evaluated for the remaining two chemical
    demilitarization sites: Pueblo, Colorado and Blue Grass, Kentucky.
        Energy Programs.--This Administration is committed to energy
    conservation. As a result the budget includes $36 million in fiscal
    year 2002 for projects that will result in energy savings and support
    long-standing goals to reduce energy demand.
        Minor Construction/Planning and Design.--The request contains $81.3
    million in fiscal year 2002 for minor construction, alterations, and
    modifications to existing facilities. These funds are essential to meet
    unforeseen construction requirements that can impair the health,
    safety, and readiness of our forces. In addition, we are requesting
    $384 million for planning and design. These funds are needed to
    complete the design of fiscal year 2003 projects and initiate design of
    fiscal year 2004 projects. We urgently seek your support for this
    request so we can design our Fiscal Years 2003 and 2004 construction
    requirements.
        Contingency Funding.--The fiscal year 2002 amended budget restores
    funds for contingencies, comprising 5 percent of project cost, which
    have been excluded the past two years. These funds are needed for
    unforeseen project cost growth, design changes, and improvements
    identified during construction. This initiative is another
    manifestation of our commitment to honest budgeting.
                                  base closure
        In the past, the Department's Base Realignment and Closure (BRAC)
    process has been a major tool for reducing the domestic base structure.
    Between 1988 and 1995, four BRAC Commissions proposed the closure or
    realignment of 152 major installations and 235 smaller ones. The
    implementation of the last round of the four approved BRACs is complete
    as of July 13, 2001. The Department will have invested about $22.2
    billion and realized savings of about $37 billion for total net savings
    of about $15 billion over the implementation period from fiscal year
    1990 to fiscal year 2001. Total annual savings after fiscal year 2001
    are projected to be about $6 billion. For fiscal year 2002, the BRAC
    program is $532.2 million. The fiscal year 2002 program funds
    environmental restoration and caretaker costs for bases closed under
    the previous rounds of base closure authority. This funding will ensure
    bases are continuing to be cleaned efficiently to speed the transfer of
    property to redevelopment authorities. Some environmental funding
    shortfalls have been identified, particularly in the Navy.
        The Navy initially identified a fiscal year 2002 BRAC must-fund
    shortfall of $92.5 million for work required to be done under signed
    Federal Facility Agreement milestones. The Navy is continuing to review
    and validate the exact amount of this shortfall. Thus far, the review
    has reduced the Navy's estimated fiscal year 2002 shortfall of required
    funding per signed legal agreements to $63.3 million.
        The Department will soon submit legislation seeking authority for
    additional base closures under the Efficient Facilities Initiative to
    begin in fiscal year 2003. The Department needs authority for
    additional closures because retaining excess base structure wastes
    resources that could be better used to address the modernization and
    transformation of our military forces. EFI is expected to save the
    Department about $3.5 billion a year after implementation.
                        nato security investment program
        The NATO Security Investment Program (NSIP) request totals $162.6
    million in fiscal year 2002. This amount represents the U.S. share
    (approximately 24.7 percent) of the acquisition of NATO common use
    systems and equipment; construction, upgrade, and restoration of
    operational facilities; and other related programs and projects
    requires in support of agreed NATO strategic concepts and military
    strategy. Anticipated recoupments of approximately $11 million combined
    with approximately $25.4 million of prior year savings results in a
    total fiscal year 2002 program of $199 million. This request represents
    the minimum essential U.S. contribution. It will support both our
    strategic security and our economic interest in the European Theater.
                                 family housing
        Our fiscal year 2002 budget request for family housing is $4.1
    billion. This is fourteen percent higher than our fiscal year 2001
    request of $3.5 billion, and includes an extra $400 million to support
    the President's housing initiative. The fiscal year 2002 family housing
    program reflects the high priority the President and the Secretary of
    Defense have placed on improving the living conditions for our service
    members and their families.
        Family Housing Operations.--The Department's family housing
    inventory includes approximately 295,000 government-owned and 28,000
    leased units worldwide. The government-owned units average about 35
    years in age. These owned and leased units house approximately one-
    third of military families.
        The budget includes $2.9 billion to fund a range of services and
    expenses necessary to support these housing units. For example, the
    operation account funds items such as housing administration and
    management, basic support services, referral services, furnishings,
    utilities, and miscellaneous expenses while the maintenance account
    funds routine maintenance and major repairs. In addition, the family
    housing leasing account provides housing at both domestic and foreign
    locations when the local economy cannot provide adequate support and
    additional assets are needed to satisfy a housing deficit.
        The $2.9 billion budget will ensure that houses in our inventory
    are in adequate condition for occupancy by our military families. The
    fiscal year 2002 request is $240 million higher than the amount
    Congress approved for fiscal year 2001, due primarily to the higher
    cost of utilities and to the need to maintain an aging housing
    inventory.
        Family Housing Construction.--The fiscal year 2002 request for
    family housing construction totals $1.1 billion to build, replace, or
    improve approximately 6,400 family housing units. Major emphasis of the
    Family Housing Construction Program is to replace units that are
    uneconomical to repair, and to renovate and upgrade units that can be
    restored to adequate condition. The fiscal year 2002 request is $208
    million higher than the amount enacted for fiscal year 2001, due to the
    President's initiative to improve housing for our troops and their
    families.
        Family Housing Privatization.--The fiscal year 1996 National
    Defense Authorization Act provided innovative authorities that enable
    the Department to partner with the private sector to revitalize our
    housing inventory. The new tools--loan and rental guarantees, direct
    loans and investments, differential lease payments, and the conveyance
    or leasing of land and facilities--have enabled the Department to tap
    private sector expertise and capital to provide quality housing more
    quickly than would be possible through traditional construction
    methods.
        Using the moneys Congress appropriated directly into the Family
    Housing Improvement Fund (FHIF) or for construction projects that were
    later transferred into the FHIF, the Services have awarded ten pilot
    privatization projects. Following are illustrative of projects awarded
    thus far:
      --Fort Carson, Colorado.--At Fort Carson, the Army invested $10
            million to provide a limited loan guarantee and is obtaining
            1,823 revitalized housing units and 840 new units. The return
            on Army's investment in this $229 million project is 22:1 when
            compared to traditional construction approach. The Army is
            planning to finalize its partnership deal to privatize 5,912
            housing units at Fort Hood, Texas, in the near future.
      --South Texas/Everett, Washington.--The Navy entered into a 30-year
            limited partnership with a private developer to provide 404
            off-base units in the Corpus Christi-Ingleside-Kingsville,
            Texas area. These are all new units that required an investment
            of $9.5 million, less than a third of the $32 million project
            cost. A similar partnership arrangement provided 185 new family
            housing units at Naval Station Everett. The Navy invested $5.9
            million in a $20 million limited partnership project for a
            return on investment of slightly better than 3:1. Both the
            south Texas and Everett, Washington projects have been
            completed. The Navy recently awarded follow-on projects at
            Naval Station Everett (288 new units) and Naval Air Station
            Kingsville (150 new units), and a 712-unit project at the
            Marine Corps' Camp Pendleton, California.
      --Lackland, Texas.--The Air Force's first family housing
            privatization project, at Lackland AFB, will be completed in a
            few months. The Air Force employed a combination of limited
            loan guarantee and small direct loan to finance a 420-unit
            housing project worth $42 million. For its investment of $6.2
            million in this project, the Air Force realized a return of 8:1
            when compared to traditional military construction approach.
            The Air Force has awarded three more projects--Robins AFB,
            Georgia (670 units); Dyess AFB, Texas (402 units); and
            Elmendorf AFB, Alaska (828 units).
        President's Housing Initiative.--The fiscal year 2002 budget
    provides an additional $400 million in support of the President's goal
    to improve housing for military members and their families. The extra
    funding will be used to begin new and intensive efforts to improve the
    quality of military housing and accelerate elimination of substandard
    housing. The $400 million is targeted as follows:
      --$195 million will be used for family housing privatization projects
            to provide over 14,600 units.
      --$107 million will be used to provide Bachelor Enlisted Quarters for
            1,396 sailors and Marines.
      --$98 million will provide 849 on-base new construction and
            improvements of family housing units.
                             homeowners assistance
        The Homeowners Assistance Program (HAP) is an entitlement program
    established to provide assistance to military and civilian homeowners
    in cases where base closure or force structure realignment depresses
    home prices by more than 5 percent. The fiscal year 2002 budget
    requests $10.1 million in direct appropriations to partially finance a
    $31.6 million HAP program. We plan to finance the balance of the fiscal
    year 2002 HAP program with revenues from sale of acquired properties
    and transfer of $7.7 million from the BRAC accounts to offset HAP costs
    associated with BRAC-related actions. The planned BRAC transfer is in
    line with the authority contained in the annual Military Construction
    Appropriations Acts allowing the use of BRAC resources to support HAP
    requirements. The fiscal year 2002 budget again requests this transfer
    authority.
                                   conclusion
        In closing, Madam Chair, I would like to thank you, Senator
    Hutchison, and the committee members for providing me with this
    opportunity to describe our program. I would like to reiterate that our
    request for military construction and family housing represents a
    balanced program that is considered essential to permit the Services to
    support weapon systems being deployed, to accomplish new or changing
    missions, and to provide enhanced quality of life for service members
    and their families. We hope that this request will receive your strong
    support, and we are ready to provide whatever details that you may
    need.

        Senator Feinstein. Thank you very much.
        We will proceed with Dr. DuBois and then ask questions.

                      Statement of Raymond F. DuBois, Jr.

        Mr. DuBois. Madam Chairman, Senator Hutchison, thank you
    very much for this opportunity to appear before you, and I
    thank you and all the members of the subcommittee for the
    contributions that you make every year to our national security
    and most of all to the quality of life of our soldiers,
    sailors, airmen, and marines.
        As the Secretary of Defense has recently testified before
    Congress, over the past 10 years we have underfunded and
    overused our forces. Doing more with less has been at the cost
    of needed investment in infrastructure and the maintenance of
    that infrastructure and the modernization of that
    infrastructure.
        Our fiscal year 2002 MILCON appropriation request, amended
    request for installations, is centered on four essential
    themes: adequate sustainment funding for the facilities that we
    have; modernization of those facilities; restoration of
    readiness-deficient facilities; streamlining and reconfiguring
    our installations and our infrastructure to meet the war-
    fighters' needs.
        As I have stated in some detail in my written statement,
    let me just highlight a couple of themes. As some of you know,
    I recently visited our installations in the Western Pacific in
    Okinawa and in Korea. Particularly in Korea, much of the
    infrastructure, what I refer to as the seen and unseen
    infrastructure, was old and in various states of deterioration.
    We on the CODEL saw inadequate and substandard living quarters
    of all kinds and even witnessed Army senior enlisted members
    and officers living and working in quonset huts, of course
    temporarily constructed over 50 years ago.
        As you know also, the Department, and as Dr. Zakheim has
    said, will be seeking your approval to authorize legislation so
    that we can review our infrastructure within the United States
    through an efficient facilities initiative. It is important to
    note that this efficient facilities initiative is not an
    exercise in achieving some budget goal or savings objective.
    Rather, it is principally an exercise to realign and, yes,
    reduce where appropriate our overall infrastructure to best
    support our military requirements, our operational readiness,
    and ultimately our war-fighting plans.
        To address a question raised in your opening statements of
    both Senators, the Department also understands the necessity to
    study the overseas infrastructure requirements. In point of
    fact, the Secretary of Defense will task in a memorandum to be
    released shortly the overseas commander in chiefs, the CINC's,
    to develop an overseas strategic basing plan. But that will be
    conducted subsequent to the QDR.
        We need to take a long-term look at our forces deployed
    overseas and to assure that we optimize those facilities, as
    has been pointed out by both of you.
        Finally, to ensure that our facilities deficiencies are
    eliminated in the long run, and this is not something that can
    be done in one year or 2 years or 3 years, we need, however, to
    continue to refine that long-range facilities strategic plan,
    and we will have completed our first annual DOD installations
    posture statement within the next year.
        I was interviewed before I left Korea a couple of months
    ago and I did make the following statement, that, while some
    have said it is a little dramatic, I thought it carried a lot
    of meaning, especially to our troops. The President of the
    United States, when I accompanied him to Tindall Air Force Base
    in Florida, commented on it, that for far too long we have
    sacrificed the quality of life of our troops on the altar of
    power projection.

                               Prepared Statement

        Now, as a practical matter, power projection, quality of
    life, efficient facility, they all go hand in hand. They are
    moving parts of the same objective and that is to keep this
    Nation strong. So I appreciate this opportunity, Senators, and
    I look forward to answering your questions.
        [The statement follows:]

                  Prepared Statement of Raymond F. DuBois, Jr.

                                  introduction
        Mr. Chairman and distinguished members of this Subcommittee, thank
    you for the opportunity to discuss the Department of Defense's fiscal
    year 2002 programs for military installations and facilities. Our
    military installations and facilities are integral components of
    military readiness. I look forward to working with you to ensure that
    they continue to support America's military superiority and the men and
    women who live and work at our installations. I will address our
    infrastructure and our plan for its improvement, our military
    construction and family housing request, our operations and maintenance
    request, proposed legislation, the Installations' vision for the future
    and our action plan.
                      renewing the installations framework
        For years we allowed our installations and facilities to
    deteriorate due to competing budget priorities and indeterminate
    requirements. Last year's Installations Readiness Report showed 69
    percent of the Department's facilities are rated C-3 (have serious
    deficiencies) or C-4 (do not support mission requirements). Much of our
    infrastructure--the seen and the unseen--is old and in various stages
    of decline. Our average facilities age across the Department is 41
    years. Without adequate sustainment and recapitalization, facility
    performance degenerates, operational readiness and mission support
    suffer, service life is lost, and total costs rise.
        This Administration is committed to restoring our installations and
    facilities to perform as designed. Secretary Rumsfeld has stated that
    the fiscal year 2002 budget balances ``preparation for the future with
    current needs--through robust funding to improve morale, boost
    readiness, transform defense capabilities and upgrade aging
    facilities.'' We are breaking the current cycle of ``pay me now or pay
    me much more later,'' and our fiscal year 2002 budget initiates an
    aggressive program to renew our facilities.
        For fiscal year 2002, we are requesting a total of $10.0 billion
    for military construction, family housing and base realignments and
    closures, an increase of $2 billion over the previously submitted
    fiscal year 2002 budget request. The amended fiscal year 2002 request
    represents the down payment on a long-range plan to streamline and
    improve the performance of our facilities and housing. Key to achieving
    the long-range goal will be successful implementation of the
    Department's Efficient Facilities Initiative (EFI), designed to realign
    and reduce base infrastructure by approximately 25 percent, and
    ultimately, save several billion dollars annually. We must also fully
    sustain our facilities and halt, actually, reverse the unacceptable
    aging of the Department's facilities by accelerating our
    recapitalization rates. Finally, we must restore the readiness of
    inadequate facilities, modernize facilities to meet future challenges,
    and dispose of, or demolish, obsolete facilities.

    Summary of Request

               [Estimated President's Budget as amended--Billions]

                                                            Fiscal year 2002
            Facilities                                               Request
    Real Property Services (O&M)......................................  $4.0
    Sustainment (O&M).................................................   5.3
    Restoration and Modernization (O&M/MilCon)........................   4.1
    New Footprint (MilCon)............................................   2.0

        Two principles guide our effort to improve and maintain our
    infrastructure: first, the quality of our infrastructure directly
    impacts readiness; and second, it is more cost effective in the long
    term to ensure facilities perform as they are designed than it is to
    allow them to deteriorate and replace them when they are not useable.
    By investing money now and sustaining that investment over time, we
    will restore and sustain readiness, stabilize and reduce the average
    age of our physical plant, reduce operations costs, and maximize our
    return on investment. We plan a comprehensive review of our
    infrastructure needs through 2020 during the ongoing Quadrennial
    Defense Review.
        As you know, Secretary Rumsfeld has made it quite clear that he
    intends to significantly change the business practices of the
    Department. Not that terminology causes change, but it certainly sends
    a rhetorical signal that the Secretary is serious about not just
    transforming our force structure but also our infrastructure by virtue
    of military requirements and necessity. We use outcome-oriented terms
    that emphasize performance--sustainment, restoration and modernization
    (SRM)--rather than the misleading legacy term ``real property
    maintenance'' (RPM) that represents just one activity of many. Our
    Facilities Sustainment program funds the required and scheduled
    maintenance and repairs for the inventory using operations and
    maintenance funds. Sustainment preserves the inventory and allows it to
    reach its expected service life. Our Facilities Restoration and
    Modernization program repairs or replaces damaged or obsolete
    facilities and implements new or higher standards where necessary. The
    restoration and modernization terminology recognizes the contribution
    of both military construction and operations and maintenance
    appropriations to recapitalizing our facilities and housing.
                military construction and family housing request
        The fiscal year 2002 amended budget request for the military
    construction and family housing program is robust. Over $2 billion was
    recently added to the military construction request, targeted towards
    replacing or renovating what we currently own. This investment takes
    the Department from a recapitalization rate of 192 years to a rate of
    101 years in fiscal year 2002--much closer to the Department's goal of
    a 67-year replacement cycle. Most importantly, this funding should aid
    the Department in moving towards restoring its facilities to at least a
    C-2 readiness condition.
        Our fiscal year 2002 request for military construction is $5.9
    billion, of which $5.2 billion is for regular military construction--an
    increase of 46 percent over last year's request, $163 million is for
    NATO Security Investment, and $524 million is for implementing
    previously legislated base realignments and closures.
        We are requesting $1.1 billion for family housing construction and
    $3.0 billion for operating and maintaining our almost 300,000 family
    housing units. This budget request reflects the Department's initiative
    to restore and modernize its existing facilities and also reflects
    President Bush's initiative to improve housing for our service members
    and their families. On February 12, 2001, in a speech to the troops at
    Fort Stewart, Georgia, President Bush stated that ``we owe you and your
    families a decent quality of life. We owe you the training and
    equipment you need to do your jobs--you and your families are the
    foundation of America's military readiness.'' Secretary Rumsfeld added
    $400 million to the program to make this a reality, increasing the
    family housing construction program by over one third. A substantial
    portion of this increase will be utilized to increase our housing
    privatization efforts, which allow us to leverage our appropriated
    funds and improve the quality of our housing more rapidly.

                             COMPARISON OF MILITARY CONSTRUCTION AND FAMILY HOUSING REQUESTS
                                       [President's Budget as amended--$millions]
    ----------------------------------------------------------------------------------------------------------------
                                                                        Fiscal year                     Fiscal year
                                                                           2001         Fiscal year        2002
                                                                       appropriation    2001 final     appropriation
                                                                        request \1\    appropriation      request
    ----------------------------------------------------------------------------------------------------------------
    Military Construction...........................................         3,189.1         4,215.3           5,210
     NATO Security Investment Program...............................             190             172           162.6
    Base Realignment and Closure IV.................................         1,174.4         1,024.4           532.2
    Family Housing Construction.....................................             748           904.1         1,114.4
    Family Housing Operations & Debt................................         2,732.1         2,701.1           2,940
    Homeowners Assistance...........................................               0               0            10.1
                                                                     -----------------------------------------------
          Total.....................................................         8,033.6         9,016.9         9969.3
    ----------------------------------------------------------------------------------------------------------------
    \1\ Does not include fiscal year 2001 supplemental request. Does not include general provision (sec. 125 and
      132) reductions.

        Contingency Funding.--Military construction projects typically
    include contingency funds to address problems that arise due to changes
    in missions changes or design, unanticipated site conditions, or other
    unexpected circumstances. The Department's fiscal year 2002 budget
    request includes a five percent contingency for all of the Services and
    Defense Agencies.
        NATO Security Investment Program.--The NATO Security Investment
    Program (NSIP) provides for the acquisition of common use systems and
    equipment; construction, upgrade and restoration of operational
    facilities; and other related program and projects in support of NATO.
    The request for the NATO Security Investment Program (NSIP) is $162.6
    million in fiscal year 2002. The Department anticipates recoupments of
    approximately $11 million, and together with unliquidated balances of
    $25.4 million from prior years, the NSIP program will total $199
    million.
        Completion of Prior Base Realignment and Closure (BRAC) Rounds.--
    The fiscal year 2002 budget requests $524 million in BRAC
    appropriations to complete prior rounds, which is less than half of our
    fiscal year 2001 request. Over 86 percent is for environmental cleanup
    and the balance will support operations and maintenance costs. We
    currently estimate that the four previous BRAC rounds will save
    approximately $15 billion through fiscal year 2001 and generate an
    estimated $6 billion in annual recurring savings thereafter.
        Overseas Construction.--The fiscal year 2002 budget for military
    construction at overseas bases is $720 million for regular
    construction. Over $350 million is directed toward projects that
    support quality of life issues such as child development centers,
    family housing, enlisted barracks, school facilities and medical/dental
    facility upgrades. The remaining projects are operational or support
    facilities.
                       operations and maintenance request
        We are requesting $10.3 billion to fund installations' operations
    and maintenance costs in fiscal year 2002. Of this total, $4.0 billion
    will provide real property services (RPS) support and $6.3 billion will
    provide for facilities sustainment, restoration and modernization (SRM)
    and the demolition of unneeded facilities. RPS is a must-pay cost, and
    it funds contracts such as grounds maintenance, painting and elevator
    and crane maintenance. Sustainment funds pay for the day-to-day
    maintenance and repair costs. Restoration and modernization funds major
    repairs and upgrades to damaged or obsolete facilities and
    infrastructure.
        The demolition program has been a success story for the Department.
    In May 1998, we set a goal to eliminate 80 million square feet of
    obsolete facilities by 2003. Over the past three years, the Department
    demolished and disposed of over 44.9 million square feet of excess and
    obsolete facilities and other structures, such as fuel tanks and engine
    test pads, and the program is 5.5 million square feet ahead of our
    goal. The program has been expanded to include several Defense Agencies
    and will continue past its current planned completion in 2003.
                         possible enabling legislation
        During this past year, we have actively solicited ideas from the
    Services, our public employees, private industry, and local communities
    to improve the operation and management of our installations. Based
    upon this feedback, we have submitted several legislative proposals for
    your consideration, and we are also examining other innovative ideas:
    Legislative Proposals
        Amend Section 2805 of title 10 United States Code to increase the
    minor construction threshold from $500,000 to $750,000 and from
    $1,000,000 to $1,500,000 for projects involving life safety issues. The
    current threshold limits the Department's ability to complete projects
    in areas with high costs of construction. Without this relief, there
    may be a two or three year delay in completing smaller, unforeseen
    construction projects if the Department of Defense Components must
    submit such projects for military construction appropriations.
        Amend the 1990 and 1988 base closure statutes to revise the
    guidelines for leasebacks. The proposed legislation seeks authority for
    Federal tenants to obtain facility services and common area maintenance
    directly from the local redevelopment authority (LRA) or the LRA's
    assignee as part of the leaseback arrangement rather than procure such
    services competitively in compliance with Federal procurement laws and
    regulations. The proposed legislation also expands the availability of
    the leaseback authority to property on bases approved for closure
    through the 1988 base closure statute.
        Amend Section 2853(d) of title 10 United States Code to exclude
    environmental hazard remediation from the 25 percent allowable cost
    increases on construction projects. This provision would not change in
    any way our environmental responsibilities. It would give us
    flexibility to use existing funds to respond to requirements while
    moving ahead with construction. Experience has shown that unforeseen
    environmental cleanup costs alone can account for more than 25 percent
    of cost increases, a problem that becomes unmanageable if construction
    costs are also higher than anticipated. With the current situation,
    some military construction projects must be stopped prior to completion
    so as not to exceed the current 25 percent cap. Excluding unforeseen
    environmental hazard remediation from the cap provides greater
    flexibility and enables the Department to more expeditiously execute
    contracts and respond to the unforeseen environmental conditions.
        Amend Section 276a of title 40, United States Code to increase the
    thresholds for application of the Davis-Bacon Act from $2,000 to
    $1,000,000. This threshold has remained unchanged for over 35 years.
    Increasing the threshold reduces costs, provides greater flexibility in
    purchasing commercial items, simplifies acquisition procedures and
    competition requirements, and enables the federal government to conduct
    business in a more commercial manner. The Department could achieve
    savings of $190 million in fiscal year 2002 alone if this threshold is
    increased.
    Ideas Undergoing Departmental Consideration
        The Efficient Facilities Initiative is an effort by the Department
    to achieve an approximately 25 percent reduction in base
    infrastructure. This initiative is key to allowing the Department to
    more efficiently support force structure, increase operational
    readiness, and facilitate new ways of doing business.
        The Department is considering the possibility of extending the
    authorities contained in the Brooks Air Force Base Development
    Demonstration Project (Section 136 of the Military Construction
    Appropriations Act, 2001, Public Law 106-246) to all military
    installations. This effort would permit the Military Departments to
    explore ways of supporting their missions and people more effectively
    and at less cost while maintaining operational readiness.
        We are considering the amendment of Section 2801 (Alternative
    Authority for Construction and Improvement of Military Housing),
    Chapter 169 of title 10, United States Code to provide permanent
    authority to the Military Housing Privatization initiative (current
    program authority expires in December, 2004). We are also examining the
    MHPI to determine any lessons learned and recommend any legislative
    changes to improve the process.
                             installations' vision
        To ensure that our facility deficiencies are eliminated in the long
    run, the Department is articulating a long-term Facilities Strategic
    Plan with a time horizon consistent with the military operations that
    installations support. The Facilities Strategic Plan is the foundation
    for long-term initiatives directly linked to our mission, our vision
    for installations, our goals, and the needs of our customers. Our
    installations' vision recognizes that America's security depends on
    installations and facilities that are available when and where needed
    with the capabilities necessary to support current and future military
    requirements. The Facilities Strategic Plan is based on four goals:
    right size and place, right quality, right resources, and right tools
    and metrics. Accomplishing these four goals will enable us to create
    the installations required to support a 21st Century military.
        Right Sizing and Locating Our Installations and Facilities.--We
    must shape and size our infrastructure on the basis of military
    necessity. Our first goal is to improve the balance between the
    installations and facilities inventory on hand and the inventory
    required by today's and tomorrow's military forces and missions. This
    also includes preserving access to and integrity of the Department's
    operational test and training ranges from encroachment issues.
    Rightsizing through the Efficient Facilities Initiative also allows the
    Department to align operational forces with the installations best
    suited to their 21st Century missions. Our Facilities Strategic Plan
    assumes that 25 percent of the current inventory will become excess to
    future needs and can be disposed through additional base realignments
    and closures.
        The Department has been successful in reducing infrastructure
    through previous base closures and realignments. By the end of fiscal
    year 2001, the Department will complete implementation of the Base
    Realignment and Closure recommendations, to include the closure of 97
    and realignment of 55 major installations. We are looking at ways to
    enhance the initiative to privatize our utility infrastructure and are
    revisiting program guidance and goals to incorporate lessons learned
    and input from industry.
        Providing the Right Quality Installations and Facilities.--Our
    second goal is to provide facilities that possess the qualities needed
    to support military operations, training, maintenance, housing and
    community support, which in turn, enable readiness. ``Right quality''
    means facilities capable of meeting warfighting missions and enhancing
    quality of life for our service members and their families. As General
    Shelton, Chairman of the Joint Chiefs of Staff, said during a speech at
    the Defense Orientation Conference Association Annual Meeting on
    October 4, 2000 `. . . we must not continue to ignore the aging
    infrastructure at our posts, bases and stations that has such a
    dramatic impact on our service members' quality of life.''
        The Department has accelerated the restoration of degraded
    facilities by requesting $4 billion for fiscal year 2002 for facilities
    restoration and modernization. Many facilities with current readiness
    ratings of C-3 or C-4 will be improved to C-2 readiness condition as a
    result.
        Providing the Right Resources.--Our third goal is to allocate the
    right resources to achieve the right size and quality of our
    installations and facilities. Sustainment requirements are computed
    using the Facilities Sustainment Model, which determines sustainment
    costs based on commercial benchmarks and the planned inventory.
    Recapitalization requirements are computed using a standard design life
    on average for all facilities of 67 years. New footprint construction
    is determined based on Service and Defense Agency requirements to meet
    new missions or to satisfy long-standing deficiencies.
        Using the Right Tools and Metrics: Our fourth goal is to develop
    analytical tools and metrics to allow us to more accurately develop our
    requirements and assess our level of improvement. We are implementing
    management tools and performance measures to enable us to assess the
    current and future condition of our physical plant and directly link
    them to our Installations' Readiness Report.
        Over the past year, the Department has made major strides in
    improving our management tools and metrics. We developed a standard
    Department-wide terminology for facility classification, which has been
    institutionalized across the Department. The Facilities Assessment
    Database (FAD), which incorporates the Services' real property
    databases, has expanded to include personnel data, weapon system
    inventory and costs of real property maintenance activities and base
    support, where available. In addition, the FAD has transitioned into
    the source database for other Department-wide databases and management
    tools, including the Facilities Sustainment Model. Another effort
    involves improving the Base Information System databases and
    integrating them among the Services so more accurate tools are
    available to guide and monitor management decisions.
        The Facilities Sustainment Model was used by the Services to
    determine sustainment requirements for their fiscal year 2002 budget
    submissions, and the Facility Aging Model enables us to assess the
    impact of planned facility actions on the useful life of the
    facilities' inventory. In its second year, the Installations' Readiness
    Report has effectively characterized the effect our installations and
    facilities have on military readiness.
        We are also developing a tool to capture recapitalization
    requirements and predict restoration and modernization requirements. In
    a companion effort to the Facilities Sustainment Model, the Department
    restructured its Program Elements to reflect the new focus of
    sustainment, restoration and modernization.
                              framework for action
        America's security, today and in the future, depends on
    installations and facilities that support operational readiness and
    changing force structures and missions. The fiscal year 2002 budget
    request demonstrates our dedication to that mandate. We have taken a
    four-pronged approach to achieve our vision: right size and place,
    right quality, right resources, and right tools and metrics for our
    installations and facilities. We developed the Defense Facilities
    Strategic Plan to provide the framework for accomplishing these goals
    and enable us to provide ready and capable facilities for our
    warfighters.
        We will continue to transform our installations and facilities into
    those required for the 21st Century, both through increased resources
    and through better use of existing resources. We will capitalize on the
    strengths of the private sector through housing and utilities
    privatization and competitive sourcing initiatives. We will also
    develop a plan for managing unused and underutilized property and
    facilities and actively explore opportunities for outleasing.
        We look forward to continued collaboration with Congress and
    welcome your ideas for identifying additional opportunities to provide
    the right quality and quantity of installations in the most cost-
    effective manner.
                                   conclusion
        This concludes my prepared testimony. In closing, Mr. Chairman, I
    sincerely thank you for giving me this opportunity to describe our new
    focus on installations and facility programs and for your very strong
    support for a robust military construction program.

        Senator Feinstein. Thanks very much, Mr. DuBois.
        I would like to welcome Senator Craig to the hearing.
        I will proceed with a couple of questions. You both were
    good enough to come in and see me, and I appreciate that very
    much. I had a chance to show you my concerns about the base
    closing cleanup residuals that are left. The President's 2002
    budget proposal includes a total of $532 million for BRAC. That
    is just half of last year's appropriation of a billion dollars.
        Now, the Navy reports that it has an unfunded requirement
    of $92 million, as we discussed, in must-pay BRAC environmental
    compliance costs. The Air Force requested a total of $42
    million for BRAC cleanup funding. It is still facing a $33
    million shortfall. Only $9 million of that made it into the
    supplemental.
        My question is how are you going to make up the must-pay
    items of the budget?
        Mr. Zakheim. Well, Senator, I will start and my colleague--
    --
        Mr. DuBois. Will finish.
        Mr. Zakheim. Will finish, yes.
        With respect to the Navy money, as I understand it they
    have now reviewed that $93 million estimate and I believe it is
    now down to about $63 million, and they are reviewing that as
    well. I understand that Mr. Holaday will be testifying in the
    next panel or the panel thereafter and will give you some
    detail. My understanding is they are going to try to scrape
    together the money.
        The issue also is when the money actually will be spent.
    What has been put to me up to now is that the Navy is aware of
    the problem and intends to do something about it.
        On the larger issue, there is a difference in part because
    many of these facilities have already been turned over. The
    Army turned over a lot of facilities. Therefore, once they are
    turned over, you do not have those expenses. I think that
    certainly does not explain all the shortfalls, like the Navy
    shortfall or the Air Force shortfall, which is considerably
    smaller. But it does explain to a great extent why we went from
    something over a billion dollars to something over $550 million
    this year.
        As we turn over facilities, of course, the costs come down.
        Ray, do you want to add to that?
        Mr. DuBois. Yes. Senator--and I had best confess that in
    the 2 months that I have had this job it has been an education
    to understand how programs sometimes become unfunded as one
    goes through the POM cycle and the FYDP process. It is somewhat
    byzantine perhaps to the untrained eye.
        Mr. Zakheim. Or even to the trained eye.
        Mr. DuBois. But it is a process that we have found to be
    only addressable when you understand that the services have
    competing requirements within their own budgets. When it
    appeared that the Navy came up with a $92 million shortfall, I
    called a meeting with the Deputy Assistant Secretary, the
    Acting Assistant Secretary, and we sat down with the
    representatives from Dr. Zakheim's office and we tried to peel
    the onion, if you will, to delineate where this came from, why
    it happened, then what could be done to resolve it.
        I believe you will hear in testimony from Mr. Holaday an
    approach that we think will solve that $92 million. Unfunded
    BRAC requirements have to be viewed, I think, in context. I am
    reminded that in California alone one of the major so-called
    unfunded BRAC requirements is environmental remediation, a very
    important issue no matter what State we have those unfunded
    requirements in. But in California alone, the latest defense
    environmental restoration program investments through fiscal
    year 2000 totals $3.7 billion, a large figure by anyone's
    account.
        Now, what we ought to look at, however, as you pointed out
    to me, Madam Chairman, is what remains to be funded, what
    remains to be cleaned up. It is often-times a moving target,
    not in large percentage changes, but it moves nonetheless. Why?
    Because we have uses for the land originally planned and those
    uses change because the local redevelopment authority to which
    the land is reverting asks for those changes and we must
    accommodate them to the extent possible.
        We have, of all the BRAC properties in the prior round,
    some $3.4 billion cost to complete, given the current uses
    planned. We have that $3.4 billion mapped out over the next 6
    years. I just wanted to kind of calibrate it, if you will.
        Senator Feinstein. Could we jump for a moment to something
    else we discussed, and that is the Hunters Point Naval
    Shipyard. As you know, in November of 2000 the city and the
    Navy entered into an MOU which stated the Navy's commitment to
    obligate up to $120 million for cleanup of parcels C and D of
    the shipyard. The request for proposal process ended May 31st
    with no bids from the remediation contractors. The Navy then
    cancelled the RFP.
        We discussed this. Are you prepared today to state what the
    plan is for proceeding from this point on?
        Mr. Zakheim. Again I think it would be Mr. Holaday who
    would give you much more in the way of detail. My understanding
    is that first of all, as you know, the Navy does have a
    contractor that is prepared to move ahead and they already are
    moving ahead. They have been working on this for some time.
        Beyond that, I think the Navy is looking again at what it
    might do. As you know, part of the issue is that no one bid. My
    understanding, and I stand corrected if I have gotten this
    mixed up, my understanding is that the contractors had hoped to
    get what is called a cost-plus contract, as opposed to a firm
    fixed price, which is was set at $120 million. Therefore, there
    were no bids.
        That really creates a problem except insofar as there is
    indeed a contractor and there is some work ongoing. So it is
    not like everything has come to anything like a dead halt. If
    there is any complication, it is that the timetable in the MOA,
    the memorandum of agreement, might not be met exactly as is
    because these contracts were not let when it was anticipated.
    But I believe the Navy does have some thought as to how it
    might remedy this situation and it does have a contractor still
    working.
        Do you want to add to that?
        Mr. DuBois. Yes. My understanding is that we did discuss
    this with the Navy subsequent to our conversation, Madam
    Chairman, and the Navy is aware that the difficulties, at least
    as articulated by the potential contractors who did not bid,
    were one of contract methodology. That is to say, as Dr.
    Zakheim has indicated, fixed price versus cost-plus. Cost-plus
    normally we try to not use in situations like this because it
    is an open-ended liability, if you will.
        There are, as you pointed out, big parcels. Two are
    involved in this particular situation, and I believe that Doc
    Holaday, Duncan Holaday, will address it when he testifies.
        Senator Feinstein. Are you going to put the bids out again
    and be responsible for it?
        Mr. DuBois. That would be a Navy answer.
        Senator Feinstein. I would like to get an answer. This
    thing is beginning to look a little bit like a kaleidoscope and
    I do not really care much for that. I would like to get an
    answer on what is going to happen.
        I mentioned there was an underground toxic fire that, it
    burned for 2 weeks. Nobody bothered to put it out. We have got
    to get this problem resolved. I intend to stay on it,
    gentlemen.
        Mr. Zakheim. Well, Madam Chair, as I told you this morning,
    and I think Deputy Under Secretary Ray DuBois would agree and
    probably tell you the same thing, we are prepared to work on
    this. The agency of first resort is indeed the Navy, but by all
    means do not hesitate to come back to us as well.
        Senator Feinstein. Thank you. Thank you very much. I
    appreciate that.
        I sent a letter to Secretary Rumsfeld asking about the
    appropriateness of using $9 million in military construction
    funds, authorized and appropriated in the fiscal year 2001, for
    initial site preparation work at Fort Greely. Under Secretary
    Wolfowitz in a letter dated today justified the use of these
    funds in a very interesting way, and I would like to quote from
    the letter:
        ``It is critical to the initial deployment of a missile
    defense system for the United States that we provide for robust
    testing in an environment that resembles as closely as possible
    a realistic operational environment. The construction of the
    testbed facility at Fort Greely is consistent with and indeed
    is a necessary and prudent immediate step toward the ultimate
    construction of an initial deployment facility at Fort
    Greely.''
        So as I understand this, you are changing it from a testbed
    now to an initial deployment facility. Is that correct?
        Mr. Zakheim. Well, not entirely, I think, Madam Chair. It
    is consistent with the conversion, or rather, the ultimate
    construction of the deployment facility. The original funding
    was indeed for an initial deployment facility, and what is
    being done at Fort Greely is consistent with that insofar as
    one could move from that testbed facility to an initial
    deployment facility. So it is not out of line with the stated
    intention of the Congress when the funds were voted. That is
    what that says.
        It is not definitely stated that it will be that facility.
    It is consistent with that facility, and it can indeed serve
    and indeed will be the intermediate step to that facility.
        Senator Feinstein. Let me ask it this way. Is the activity
    at Fort Greely for a testbed or for initial deployment or for a
    tested as part of initial deployment?
        Mr. Zakheim. I believe right now it is as a testbed. It
    could be used for deployment. That is what an intermediate step
    means. It is certainly consistent with that. A testbed is not
    operational, but it could become operational at some point in
    the future.
        Senator Feinstein. What is your understanding of how
    proceeding with this testbed is treated under the ABM Treaty?
        Mr. Zakheim. As I understand it, what is being done up to
    now is not in violation of the treaty, and I believe the same
    letter you quoted from states that there is no attempt either
    to violate the treaty in any way or to accelerate a violation
    in any way.
        As you know, Madam Chair, there are discussions going on
    with Russia in terms of making changes to the treaty. So this
    is not really one that I think impacts the treaty directly, and
    I believe that is what Deputy Secretary Wolfowitz wrote to you
    today.
        Senator Feinstein. Well, the letter, Mr. Zakheim, is very
    specific. It says: ``The construction of the testbed is a step
    toward the ultimate construction of an initial deployment
    facility.''
        Mr. Zakheim. Well, as I understand it, when the funds were
    voted last year----
        Senator Feinstein. I am sorry. Please go ahead.
        Mr. Zakheim. As I understand it, when the funds were voted
    last year it was specifically ``for NMD initial deployment
    facilities.'' Therefore, as long as we are doing something that
    is consistent with the funding, whatever difficulties might
    have been raised with respect to the treaty now would clearly
    have applied to the funding as it was initially provided for.
        But as the Deputy Secretary wrote--and I guess the best
    thing is just to quote him rather than to paraphrase him:
    ``This Department has neither designed a missile defense
    program to intentionally impact the treaty sooner rather than
    later, nor have we designed it to avoid the treaty.'' In other
    words, there are other things going on that will affect the
    testbed at Fort Greely, but the testbed at Fort Greely is not
    in and of itself designed in any way to accelerate, to affect
    the treaty sooner or later.
        Senator Feinstein. One last question. The letter also
    states that you are undertaking an expedited compliance review
    of these program activities. According to the chairman of the
    Armed Services Committee, that was due some days back and has
    not been presented. Can you give me a date when that compliance
    review might be completed?
        Mr. Zakheim. Well, I understand there has been some
    communication between the Department and the oversight
    committee chairman over that. I do not have the date at hand,
    but I can certainly get it to you.
        Senator Feinstein. Pardon me?
        Mr. Zakheim. I do not have the date at hand, but I can
    certainly get you the date when I go back to the Department.
        Senator Feinstein. I would very much appreciate receiving
    the date. I think that has a lot to do with what we do here on
    this particular item. Thank you very much.
        Senator Hutchison, would you like to proceed and I will run
    down and vote and come right back.
        Senator Hutchison (presiding). That is fine.
        Let me ask you--let me say first of all that I certainly
    believe as I have looked at the information that you were just
    discussing that it is necessary for us to do the testing to
    know if it is feasible to go forward on the missile defense. I
    think it is very important that we continue what is the stated
    goal of the President and the Congress of a few years ago.
        I want to talk about base closing and the foreign bases
    again. I want to have you state for the record with the
    statements that are being made that there is a 25 percent
    excess facilities and U.S. facilities are the only ones that
    have previously been considered in BRAC's. What are you doing
    with regard to foreign bases, and is that a part of the
    equation when you are looking at excess capacity in the United
    States?
        Mr. Zakheim. Well, Senator, first of all, in the past we
    have indeed consolidated facilities in Europe, primarily Air
    Force facilities. There are efforts going on right now across
    the board. All the Commanders-in-Chief have been tasked to come
    up with plans for what they intend to do with the overseas
    facilities that we have. The Commander-in-Chief in Korea has a
    plan. The commanders in Europe are working on one now.
        There is every intention to review that very, very
    carefully. Obviously, there is an overhang in this country, but
    I believe there is an overhang outside the United States as
    well. We still have many facilities outside the United States
    that essentially are vestiges of the Cold War and we need to
    have comprehensive plans that address them, be they Europe,
    Asia, or anywhere else. That has commenced.
        I intend to visit some of these facilities myself to get a
    sense of that, although, having been in the regions in question
    in the past, I know that there is certainly room for more work
    to be done. So it is really both domestically and overseas that
    we have to have reductions.
        Senator Hutchison. According to my information, 14.4
    percent of military construction, 9.9 percent of family housing
    construction, is for overseas spending, for a total cost of
    $748 million in spending on overseas military construction,
    which is an increase of 80 percent over last year.
        I just would ask you why you are looking at a base closing
    request now when you are not through with the quadrennial
    review. We have not learned from the Secretary what the
    strategy, the new strategy, is going to be. And are we putting
    the cart before the horse here?
        Mr. Zakheim. I think I would ask my colleague to help me on
    this one as well.
        Of course, we have not yet put a request, much less
    identified what facilities might be recommended for
    consolidation or closure. Since we anticipate having a
    Quadrennial Defense Review to the Congress by October 1
        I do not think at that point--correct me if I am wrong,
    Ray--we would have a list like that. So in fact,
    chronologically we will have a Quadrennial Defense Review
    first.
        Senator Hutchison. Before you ask for another BRAC?
        Mr. Zakheim. Before we identify what exactly what might be
    in a ``BRAC''. In other words, if it is anything like the
    previous system, and I cannot say for sure that it would be
    exactly like the previous system anyway----
        Senator Hutchison. We all hope not.
        Mr. Zakheim. I understand that, Senator. But if it is
    anything like the previous system, it goes quite a way before
    you have identified the actual facilities in question. So I
    would be very, very surprised if indeed there were any
    facilities mentioned prior to October 1. We hope to have a very
    clear Quadrennial Defense Review that is going to outline
    future directions for the military and priorities, and I
    believe, frankly I am certain, that what we would then do with
    respect to facilities here would be reflective of those
    priorities.
        Do you want to add to that----
        Senator Hutchison. Let me just ask you if you see an
    inconsistency in an 80 percent increase----
        Mr. Zakheim. I am sorry, I did not address that.
        Senator Hutchison (continuing). In foreign military
    construction at the same time that you are saying you are
    actually trying to look at making that more efficient as well?
        Mr. Zakheim. I believe that most, if not all, of that
    increase is due to the sorry state of facilities we have had up
    until now. What drives what we are doing with facilities
    generally and with facilities overseas in particular is the
    fact that we are sending young people out there to be on the
    front lines, to risk their lives, and that it is absolutely
    wrong to have them come back to housing that is substandard or
    to work in facilities that are substandard while they have to
    deal with angry mobs, get shot at, or anything else.
        Now, there has been a pretty dismal record of supporting
    the facilities over the years. It has built up over time.
    Whatever we decide to do, I believe that the work that is being
    done in those facilities is going to prove worthwhile. It is
    important to the morale of the troops. They have to see that we
    do not forget about them when they are overseas.
        Senator Hutchison. I think everyone agrees with the
    purpose. But are you looking at--and it is hard to tell because
    we do not have the Quadrennial Review. But when you are asking
    for three-quarters of a billion dollars for overseas spending,
    are you looking at where you think you are going to have this
    steady stream of troops and the responsibility for the long
    term?
        It just seems like we are doing things that have not been
    backed up with the facts yet.
        Mr. Zakheim. Well, I believe that you will find that what
    we are asking for will prove to be consistent with the
    Quadrennial Defense Review, yes.
        Senator Hutchison. Well, let me just say that I have to go
    vote. Senator Feinstein will be back. I do have some other
    questions, but I think we are probably going to have to go to
    the next panel. So I will submit for the record, and I do want
    to thank you both for coming to my office. I have talked to
    both of you and you are certainly, I think, aware of my
    concerns and I just hope that we can get the facts before we
    have to make the decisions.
        Mr. Zakheim. Thank you, Senator.
        Senator Hutchison. Thank you.
        I just ask the second panel to probably get ready to come
    up, and Dianne will be back in just a minute.
        Senator Feinstein. The meeting will come to order.
        I would like to ask a question on Vieques. Because of the
    vote just being in, does that change the view on military use?
        Mr. Zakheim. My understanding, Madam Chair, is that was a
    nonbinding--I am not sure how you describe that vote. It was
    sort of a straw poll, I guess, and I do not believe it has
    changed anything.
        Ray, do you have any other sense of that?
        Mr. DuBois. My understanding is that the Secretary of the
    Navy has already indicated that the vote has no impact on the
    plan to continue training until May of 2003, as stated in the
    policy announcement of a month ago.
        Senator Feinstein. Is there an intention to go on to fiscal
    year 2003?
        Mr. DuBois. Yes, ma'am.
        Senator Feinstein. I take it that has not changed?
        Mr. Zakheim. No.
        Mr. DuBois. No.
        Mr. Zakheim. While you are on the subject of the Navy,
    Madam Chair, someone passed me a note that the Navy is
    committed to the schedule and the cleanup standards of the MOA.
        Senator Feinstein. I am sorry?
        Mr. Zakheim. I was just passed a note that the Navy is
    indeed committed to both the schedule and the standards that
    are laid out in the agreement that we were discussing earlier.
        Mr. DuBois. Hunters Point.
        Mr. Zakheim. Hunters Point.
        Senator Feinstein. All right. Now translate that into what
    that means?
        Mr. Zakheim. What it means is that when you look at the
    memorandum of agreement there is a series of dates that are
    laid out there and a series of cleanup standards that are laid
    out in that memorandum, and the Navy is committed to meeting
    those standards. So they have signed up to them.
        Senator Feinstein. And the Navy will pay whatever it
    requires to get there?
        Mr. Zakheim. I would assume that they will do whatever it
    takes to get there. If it involves payment, then that would
    obviously be a component. I would again suggest that you put
    that question to Mr. Holaday, but I was simply answering a
    question you had put to me earlier regarding schedules and
    commitments. The schedules are laid out in great detail. I
    think there are about seven dates, if my memory serves me
    rightly, in that MOA, literally to the day, and the Navy is
    committed to meeting those dates.
        Senator Feinstein. The Air Force for their $33 million?
        Mr. Zakheim. To the best of my knowledge, the Air Force has
    put the remainder--some of that money turned out to be in
    fiscal year 2001. The remainder has been programmed in fiscal
    year 2002. I asked around during the break and there does not
    seem to be a sense that there is any kind of funding problem.
    Whatever shortfall there was programmed in fiscal year 2002.
        Senator Feinstein. The point I want to make in terms of the
    must-pay, that would include--I would just like to read this
    into the record: Hunters Point, El Toro, Naval Air Station
    Alameda, Naval Shipyard Long Beach, Naval Air Station Lockett
    Field, and Naval Station Treasure Island.
        Mr. Zakheim. Again, as I understand it the Navy has already
    identified out of that $92.3 million, I think it is--no, $92.5
    million shortfall, they have identified, they have brought that
    number down to about $63 million and they are working to find
    funds for the remainder.
        Senator Feinstein. All right.
        Could I ask just a couple of quick questions. Has Secretary
    Rumsfeld determined future force and structure for the Pacific
    and European commands, and do those construction proposals
    reflect those decisions?
        Mr. Zakheim. Madam Chair, we are in the midst right now of
    the Quadrennial Defense Review, which will, among other things,
    be addressing just those issues. The proposals for construction
    I believe will be valid pretty much regardless of how the
    numbers come out because there is a certain level at which we
    will be maintaining our presence under just about any
    circumstance I can think of, and the facilities that we are
    looking to improve are consistent with those levels.
        But the specifics of what we are going to do will be the
    outcome of the Quadrennial Defense Review.
        Senator Feinstein. Thank you.
        That takes care of my questions. Senator, any questions?
        Senator Hutchison. Well, I appreciate your staying. I
    thought that they would be able to go and I had not quite
    finished, but let me just clarify one thing.
        Dr. Zakheim, you had said, I think, that the QDR will be
    finished before we will be asked to vote on a BRAC; is that
    correct?
        Mr. Zakheim. What I said was that the QDR will be finished
    before any facilities that might arise in any kind of
    initiative or, to use the old shorthand, BRAC would even be
    named. It is a long process, as you know. Step one is simply to
    send a legislative package up for authorization of a process.
    If we go anything like the previous route--and I do not want to
    anticipate that--but just to take the previous BRAC as an
    example, commissioners had to be named. There was then a list
    that was put together. That comes quite a bit later, after the
    initial legislative package goes to Congress, and I cannot
    imagine that any list of any facilities would be formulated,
    much less presented, prior to the completion of the Quadrennial
    Defense Review.
        Senator Hutchison. Let me just say that I would hope that
    we would have the information from the Quadrennial Review and
    the full thinking of the Department of Defense on what our
    troop strength will be, what our focus will be, before we are
    asked to vote on the BRAC. I do not know how that will mesh
    with your timetable, but I think that will be the better
    approach.
        Mr. Zakheim. As I said, it depends what you mean by voting
    on the BRAC. But if it means voting on any facilities, I do not
    think there is any doubt of that.
        Senator Hutchison. I am talking about voting to authorize a
    BRAC.
        Mr. Zakheim. Well, I am not completely certain as to the
    timetable yet, because we have not sent anything up to the
    Hill, anyway. I do not know if you want to add to that.
        Mr. DuBois. I think, Senator, that you are addressing a
    very important issue with respect to sequence, and you and I
    have talked about this in the past, as have a number of your
    colleagues. In order to address a so-called package, BRAC
    package, 2 years from now in the summer of 2003, a process does
    have to begin. It is our view that it would not begin until
    after the QDR was completed and submitted to Congress in
    October of this year.
        That does not preclude the fact, however, that the process
    needs to be authorized by Congress. We believe it is best
    authorized by Congress in the Defense 2002 Authorization Act.
    We of course defer to your judgment in that respect. It is your
    prerogative. But our belief is that that is the best vehicle by
    which to authorize the process that would then begin subsequent
    to the submittal of the QDR.
        It is a long, detailed, some would say arduous process that
    as a practical matter would result in a presentation to a
    commission in the spring of 2003.
        Senator Hutchison. I would just say I think having more of
    a strategy before we are asked to vote on the process might be
    a better approach. But we will just keep on talking and
    hopefully have more information.
        Let me just ask one last question. That is, it seems that
    one of the issues that comes up again and again with regard to
    a base closing is the cost of the environmental cleanup, that
    it never seems to be what it was represented to be in the BRAC
    process. I just wonder if there is anything that you are trying
    to do in the Pentagon that would address the cost of
    environmental cleanup, anything maybe thinking out of the box
    about how you would approach the environmental cleanup, perhaps
    to be able to do it in a more efficient way or a better way or
    something that would cut what appeared to be just ongoing costs
    that were not anticipated.
        Mr. DuBois. Yes, ma'am. I think that, as you have concerns
    and doubts, so do we. We have looked at the numbers as they
    were projected over time and one would have thought that the
    numbers would have gone down in a nice, stepped fashion. As I
    indicated earlier this afternoon, often times the land use
    changes and when it does standards change. When standards
    change, costs change.
        The other issue that one I think has to understand is that
    environmental cleanup or remediation are costs and, yes,
    liabilities, that the Department of Defense shoulders whether
    or not it keeps a base open, it realigns the base or it closes
    the base. So there are inherent costs in doing business for the
    Department with respect the environmental remediation.
        The last issue that you raised and one that we wrestled
    with over the past couple of months is, are there opportunities
    for disposal, if you will, or realignment which would mitigate
    environmental remediation costs, absent those that affect
    safety and health, i.e., some plume on the ground that impacts
    the aquifer, which would be something we would address whether
    we kept the base open, closed, or realigned it.
        We have some what we refer to as improvements in this
    process that we hope to share with Congress very soon, which
    would mitigate some of those pure health-related costs. As you
    know, there are unexploded ordnance issues that we face at
    formerly used defense sites and at currently used defense
    sites. Sometimes we have addressed them from the point of view
    of creating a bird sanctuary rather than cleaning up the
    situation to support a condominium or a child development
    center.
        We want to work with Congress to try to outline some
    options that would help, not necessarily cap, better manage how
    we are going to spend the taxpayers' dollars to environmentally
    remediate properties that are no longer central to the Defense
    Department's mission.
        Senator Hutchison. I really look forward to hearing more
    about that. Thank you very much.
        Senator Feinstein. Thank you, Senator.
        Thank you very much, gentlemen.
        Mr. Zakheim. Thank you.
        Senator Feinstein. This concludes this panel.
                                Defense Agencies

                      Military Community and Family Policy

    STATEMENT OF JOHN MOLINO, DEPUTY ASSISTANT SECRETARY OF
                DEFENSE

                     Ballistic Missile Defense Organization

    STATEMENT OF DR. PATRICIA SANDERS, DEPUTY DIRECTOR FOR
                TEST, SIMULATION AND EVALUATION

                           Special Operations Command

    STATEMENT OF LIEUTENANT GENERAL WILLIAM P. TANGNEY,
                DEPUTY COMMANDER IN CHIEF

                          Tricare Management Activity

    STATEMENT OF MAJOR GENERAL LEONARD M. RANDOLPH, JR.,
                DEPUTY EXECUTIVE DIRECTOR
        Senator Feinstein. May I ask the next panel to quickly
    assemble and we will move on.
        I am very pleased to welcome today our second panel: Mr.
    John Molino, representing the Department of Defense Education
    Activity; Dr. Patricia Sanders from the Ballistic Missile
    Defense Office; Lieutenant General William Tangney--I hope I
    pronounced your last name----
        General Tangney. You got it right, ``TANG-nee.''
        Senator Feinstein. ``TANG-nee,'' Special Operations
    Command; Major General Leonard Randolph from the TRICARE
    Management Activity.
        Now, this is a very diverse panel. It represents several
    defense-wide agencies. Of course, we want to hear from each one
    of you. Again, because of the limited time, your statement will
    go into the official record and we would ask that you summarize
    your statement at this time. Mr. Molino, we will begin with
    you.

                            Statement of John Molino

        Mr. Molino. Thank you, Madam Chairman, Senator Hutchison.
    Thank you for the opportunity to testify this afternoon on the
    military construction program for what is most certainly one of
    the premier people programs within the Department of Defense,
    the DOD Education Activity. Quality schools along the other
    facilities such as first-rate child development and fitness
    centers, are critical to our commitment to uphold the quality
    of life of service members and families in order to attract and
    retain the very best.
        Continued service is often a family decision. Taking care
    of military members and their families makes good sense and it
    is clear that DOD and our partners in Congress are committed to
    providing for the quality of life of our armed forces. Thank
    you for your support over the years to improve quality of life
    facilities.
        Modern, well equipped, educational facilities are vital to
    the educational process itself. Research shows that students in
    well-maintained environments outperform those who attend
    neglected, poorly maintained schools.
        What was once said about the world's greatest empire can
    also be said of DODEA: The sun never sets on the DOD Education
    Activity. DODEA serves 108,000 students in 227 schools in 14
    countries, 7 States, one Commonwealth, and one U.S. territory.
    The conditions of schools are important to the educational
    process because of the changing educational curriculum,
    increasing use of technology in the classroom, and the rising
    expectations of the military community.

                               Prepared Statement

        The fiscal year 2002 military construction budget includes
    more than $65 million in major construction. This compares very
    favorably to the $42 million appropriated by the Congress last
    year for defense school construction. In summary, this is a
    good news story indeed, of a concerned Congress and the Bush
    Administration's commitment to the quality education of the
    sons and daughters of America's sons and daughters selflessly
    serving to protect the freedom we enjoy, but should never take
    for granted.
        Thank you again for your consistent support and I am happy
    to entertain any questions you may have.
        [The statement follows:]

                       Prepared Statement of John Molino

        Madam Chairwoman and members of the Committee, it is an honor to
    appear before you today to discuss the status of a key component of our
    quality of life program, the Department of Defense Education Activity's
    (DODEA) military construction program. Quality schools, along with
    other facilities such as first-rate child development and fitness
    centers are critical to our commitment to uphold the quality of life of
    Service members and families in order to attract and retain the best.
    When we address work-life needs such as improved living and working
    conditions we optimize satisfaction with military life. It is often
    said that retention strategies must focus on the entire military family
    because continued service is a family decision. I will begin my
    testimony by referring to the DODEA program.
        This Committee has a long-standing tradition of advocacy for
    DODEA's programs. You recognize, as do we, the critical necessity and
    value of providing a first-rate educational program for the children of
    our Service men and women. Attracting and retaining the best force is
    the foundation of our national defense. Therefore, quality education
    remains a central quality of life issue for our military and is
    critical to military readiness.
        Providing modern, well-equipped educational facilities is vital to
    the educational process itself. Research shows that students in well-
    maintained environments outperform those who attend neglected, poorly
    maintained schools. DODEA serves 107,947 students in 227 schools in 14
    countries, 7 states, one Commonwealth and one Territory, with a total
    facility inventory of over $3.2 billion dollars. Over sixty percent of
    our schools are over thirty years old, and many are housed in former
    barracks or administrative buildings, not built to be educational
    facilities. The changing educational curriculum, increasing use of
    technology in the classroom, and rising expectations of the military
    community make the state of the facilities more and more important to
    the education process.
        DODEA is aggressively addressing our outdated infrastructure
    through the replacement or upgrade of the schools in the worst
    condition. Since 1999, we have programmed construction totaling $165.4
    million, including $50.1 million in additions and renovations to
    existing facilities, $55 million for the replacement of older schools,
    and $60.3 million for the establishment of schools on Guam and in
    Larissa, Greece. This includes construction required to support a
    worldwide implementation of new educational programs: full-day
    kindergarten and reduced pupil-teacher ratios in the first three
    grades, both of which enjoy the strong support of our military
    stakeholders. For the future, we have focused our efforts to identify
    those schools that are in the most urgent need of repair or replacement
    and have programmed Military Construction projects where necessary to
    address those needs.
        The fiscal year 2002 Military Construction budget before you now
    includes $65.2 million in major construction for DODEA. Last year, with
    your support, there was $42 million in the construction program. We see
    this increase in the fiscal year 2002 budget as very positive progress
    in an area that has great need. I'd like to thank the committee for its
    consistent support for the educational program. The fiscal year 2002
    program includes one of our most sorely needed projects, the
    replacement of Lakenheath Middle School, in England. The existing
    school is operated in World War II-vintage facilities that are
    difficult to maintain and not conducive to a good learning environment.
    Replacement of this school will provide state-of-the-art facilities for
    over 800 students at Lakenheath.
        The budget also contains a new elementary school at Laurel Bay,
    South Carolina, for 500 students. The core areas of the existing Laurel
    Bay school are severely overcrowded, as evidenced by the eleven trailer
    classrooms.
        The fiscal year 2002 budget also includes funding for the
    renovation of and addition to Stone Street Elementary School at Camp
    Lejeune, North Carolina. The Stone Street initiative includes addition
    of a library, art and music rooms, and a complete renovation of the
    existing facility, including installation of central air conditioning,
    replacement of existing window walls and finishes, and renovations to
    comply with electrical and life safety code, and Americans with
    Disabilities Act requirements. In 1999, some of DODEA's worst
    facilities were located on Camp Lejeune. Beginning with the fiscal year
    1999 Military Construction program, DODEA has replaced or renovated one
    of those schools each year. These continuing efforts are resulting in
    greatly improved facilities for the students at Camp Lejeune.
        Also included in this budget are projects at Ramstein High School,
    Geilenkirchen Elementary School, and Wuerzburg Elementary School.
        The project at Geilenkirchen Elementary School involves
    construction of a new multipurpose room that will replace an existing
    temporary air-supported structure that was erected in 1993, with an
    expected life of five years. Heating and cooling this facility is both
    difficult and expensive. This area doubles as the school's cafeteria,
    although it is without food preparation capabilities. Lunches are
    prepared off-site and delivered to the school. The new facility will
    provide food preparation and dining areas, and will also be used as an
    indoor physical education facility for the elementary school students.
        An eight-classroom addition is scheduled for Ramstein High School.
    These additional permanent classroom spaces will replace temporary
    buildings installed for ninth grade students at Ramstein High School.
        At Wuerzburg Elementary School, five additional classrooms and a
    gymnasium will be constructed. The school's existing multipurpose room
    and gymnasium facilities cannot accommodate the increased physical
    education and assembly needs, as well as the school lunch program. This
    project will provide a separate physical education area, allowing more
    flexibility in the use of the multipurpose room and cafeteria spaces.
    This project will also demolish existing temporary facilities and
    replace them with permanent general-purpose classrooms.
        In addition to the major construction projects and some funding for
    planning and design, the 2002 budget also continues the implementation
    of full day kindergarten and reduced pupil-teacher ratios at our
    elementary schools worldwide for a total Military Construction program
    of $71.4 million. Beginning in fiscal year 2001, DODEA programmed a
    number of projects around the world to provide the facilities necessary
    to implement these important initiatives. In addition to offering a
    full-day kindergarten program at every elementary school, this allowed
    DODEA to reduce the pupil-teacher ratio in the first through third
    grades from 23:1 to 18:1. A total of seven projects are included in the
    fiscal year 2002 budget.
        DODEA's will continue to strive to address many of the aging
    facilities in our inventory. At this time the Administration has not
    yet addressed the fiscal year 2003-2007 requirements.
        I am also pleased to be able to report on the status of our
    military Child Development Program. We know that more than 50 percent
    of the force is married and that families are the foundation of
    success. Family well being is critical to the peace of mind of our
    Service members. We are proud of our progress in child care during the
    last ten years--progress that would have been impossible without strong
    Congressional support. The Department received $43 million in the
    fiscal year 2001 construction program for new construction or
    improvements for ten child centers. This was a funding investment of an
    additional $23 million above the fiscal year 2000 level of $20 million.
    The fiscal year 2002 budget is for $26 million for four centers.
        The child development program consists of a variety of delivery
    systems to include center-based care, in-home care (on and off the
    installation), school-age care, and resource and referral programs.
    Each day we currently serve over 200,000 children from new born to 12
    years of age at 300 locations worldwide in an estimated 800 facilities
    and 9,000 Family Child Care homes. The DOD child development program is
    the largest American employer-sponsored child care program. DOD
    sponsored forums consistently highlight a critical need for child care
    program growth. Further, military leaders continue to surface child
    care as a top priority for military members and their families.
        The Department estimates that there is a need for 215,000 child
    care spaces. Thorough the current child development delivery system,
    the Department provides 170,000 spaces and is working aggressively to
    meet the unmet need. In response to a request from Congress, the
    Department of Defense and the Military Services are working to develop
    a plan to construct additional child development spaces. The ability to
    execute such a plan will be evaluated in the context of the total
    budget requirement for the Department. While child development centers
    are the cornerstone of the military child development program our
    experience indicates that a balanced delivery system that complements
    our construction program is needed to maintain quality, expand the
    availability of care, and provide the flexibility to meet mission and
    family requirements. This includes family child care homes on the
    installation and homes off the installation, partnerships with other
    agencies, maximizing school age spaces, and use of resource and
    referral to provide space in the local communities near our
    installations.
        We appreciate your interest and ask for your continued support to
    ameliorate this major work-life issue for our families. Supporting DOD
    families' need for child care contributes to the efficiency, readiness,
    and retention of the Total Force and the economic stability of military
    families. Taking care of military members and their families makes good
    sense and it is clear that DOD and our partners in Congress are
    committed to providing for the quality of life for our Armed Forces as
    a high priority.
        The third program I am reporting on is our fitness centers. Fitness
    centers consistently rank as the top Morale, Welfare and Recreation
    program. According to the 1999 DOD Survey of Active Duty Personnel,
    79.5 percent of the respondents said they use the installation fitness
    center at least once per month, with 40 percent using the facility 11
    times or more per month. This equates to an average monthly usage of
    approximately 12 million visits to fitness centers per month.
        The Department received $111.5 million in fitness and physical
    training facility construction for fiscal year 2001. This provided the
    funding for the construction and major upgrade of 12 facilities. For
    fiscal year 2002, the Department has requested $171.3 million for
    construction and major upgrades of 12 facilities. Upgrading and
    modernizing fitness facilities is a high priority within the
    Department. We appreciate the continued recognition by Congress of
    fitness as a vital part of military life and the support provided by
    Congress in improving these critical facilities.
        Each Service is conducting an assessment of its current facility
    inventories to establish strategic fitness facility plans in order to
    overcome the backlog in facility improvements. According to our 1998
    survey of fitness facilities as part of ``Operation Be Fit,'' 22
    percent of our facilities were rated poor, with 54 percent rated as
    adequate. Each of the Services is conducting their own follow-on review
    of facilities, based on standards, to develop requirements for future
    military construction submissions.
        DOD continues to develop a strategic plan for fitness in
    conjunction with the Services. This plan has expanded to encompass
    health promotion and injury prevention, as well as physical training.
    This new strategic concept has the potential to provide tangible
    benefits to DOD by reducing injuries, promoting healthy lifestyles and
    physically preparing Service members better for duty. The military
    Services have already started to place segments of this concept into
    practice. Many installations have brought their health promotion
    programs into the fitness centers, providing physical fitness
    assessments, nutrition counseling and other programs to promote healthy
    life styles.
        Thank you for the opportunity to appear before this Committee and
    for your strong and consistent support of our programs in the past.

        Senator Feinstein. Thank you very much.
        We will go right down the line. Dr. Sanders, welcome.

                      Statement of Patricia Sanders, Ph.D.

        Dr. Sanders. Thank you. Madam Chairman, it is my pleasure
    to appear before you today to discuss----
        Senator Feinstein. Could you pull that right up so that we
    can hear you clearly and distinctly.
        Dr. Sanders. Thank you.
        Madam Chairman, it is my pleasure to appear before you
    today to discuss our fiscal year 2002 construction program for
    the Ballistic Missile Defense Organization. The objective of
    the BMDO construction program is to provide the facilities that
    we need to support the research, development, and testing of a
    ballistic missile defense system and to acquire those
    facilities in accordance with Congressional guidance----
        Dr. Sanders. The BMDO construction budget request includes
    military construction and research, development, testing, and
    evaluation, RDTE funding. The requested budget includes MILCON
    planning and design, unspecified minor military construction,
    and RDTE-funded missile defense system testbed, and a space-
    based laser test facility.
        The MILCON budget request of $8.3 million includes $2
    million in unspecified minor construction and $6.3 million in
    planning and design funds. The RDTE fund projects total $288.3
    million.
        The budget reflects the Secretary of Defense's directive
    for BMDO to develop a single integrated ballistic missile
    defense system to defend the forces and territories of the
    United States----
        Senator Feinstein. May I stop you? Did you say $228 million
    or $288 million?
        Dr. Sanders. $288.3 million.
        Senator Feinstein. Is that R&D?
        Dr. Sanders. In R&D.
        Senator Feinstein. Thank you.
        Dr. Sanders. So to develop a single integrated ballistic
    installation defense system to defend the forces and
    territories of the United States, its allies and friends, from
    all classes of ballistic missiles, without differentiating
    between theater and national missile defense. The research,
    development, test, and evaluation program is designed to
    enhance system effectiveness over time by deploying layered
    defenses that employ complementary sensors and weapons to
    engage threats in the boost, midcourse, and terminal phases.
        The testing program will incorporate a larger number of
    tests than previously, using more realistic scenarios. But to
    do so will require investment in additional infrastructure.
    Development of the ground-based midcourse element of our
    missile defense system, which was formerly known as the
    National Missile Defense program, requires additional testing
    under operationally realistic conditions.
        The proposed testbed is needed to provide the
    infrastructure for that realistic testing. The testbed will
    include components at several different installations at widely
    dispersed locations to provide the trajectories and sensing and
    intercept scenarios that realistically represent conditions
    under which a missile defense system might be expected to
    operate.
        While a testbed will initially be used to test a ground-
    based midcourse element, in the future the testbed will be
    capable of integrating boost, midcourse, and terminal defenses,
    as well as sensors and battle management, command, control, and
    communications elements. The testbed adds realism. It allows
    for multiple simultaneous engagements and adds additional
    intercept areas to the BMD testing. These were recommended to
    us by both the BMDO-commissioned independent review team, which
    is commonly referred to as the Welch panel, and by the director
    of operational test and evaluation.
        The testbed will also help us prove out construction,
    transportation, and logistics concepts that we will need to
    build and operate deployment facilities in a challenging
    Alaskan environment.
        The fiscal year 2002 construction budget request
    contributes $288.3 million of RDT&E funds to the development of
    national missile defense system tests.
        Another RDT&E funded project is the space-based laser test
    facility. The facility is needed to conduct the ground test
    demonstration portions of the integrated flight experiment. The
    test facility will include a singular unique structure designed
    to specifically support the full-power laser test firing of the
    flight experiment, and combined integration tests of the
    chemical laser system configured as a complete space vehicle.
        This facility will be constructed at the NASA Johnson-
    Stennis Space Center in Mississippi. The fiscal year 2002
    request for $5 million starts the project. Total construction
    is estimated at $37 million. More detail on all of the
    construction projects in the BMDO requests are contained in my
    longer written statement which has been submitted for the
    record and the exhibits accompanying the Department's budget
    submission.

                               Prepared Statement

        Thank you for your support, Madam Chairman, and I would be
    happy to answer any questions you and members of the committee
    might have.
        Senator Feinstein. Thank you.
        [The statement follows:]

                   Prepared Statement of Dr. Patricia Sanders

        Madam Chairwoman, it is my pleasure to appear before you today to
    present the fiscal year 2002 Construction program for the Ballistic
    Missile Defense Organization (BMDO).
        The objective of the BMDO construction program is to provide the
    facilities needed to support the research, development and testing of
    the Ballistic Missile Defense System and to acquire those facilities in
    accordance with Congressional guidance and that of the Department of
    Defense. The BMDO construction budget request includes Military
    Construction (MILCON) and Research, Development, Testing, and
    Evaluation (RDT&E) funding. The requested projects include MILCON
    planning and design and unspecified minor construction, an RDT&E funded
    Missile Defense System Test Bed and a Space Based Laser Test Facility.
                     military construction funding (milcon)
        The MILCON budget request of $8.3 million includes $2.0 million in
    unspecified minor construction and $6.3 million planning and design
    funds. The unspecified minor construction funds will be used for
    urgent, unforeseen projects. The design funds will be used for: Theater
    High Altitude Area Defense (THAAD) (part of the Terminal Defense
    Segment) test facilities at the Pacific Missile Range Facility (PMRF)
    and at the Ronald Reagan Ballistic Missile Test Site (RTS) at the
    Kwajalein Atoll in the Marshall Islands; Sea-based Midcourse test
    facilities at West Lock, Hawaii; and Unspecified Minor Construction
    projects.
        This budget reflects the Secretary of Defense direction for BMDO to
    develop a single integrated ballistic missile defense system (BMDS) to
    defend the forces and territories of the United States, its allies and
    friends from all classes of ballistic missiles, without differentiating
    between theater and national missile defense. The Department will
    develop and deploy promising technologies and concepts in order to
    build and sustain an effective, reliable and affordable missile defense
    system.
        The research, development, test and evaluation program is designed
    to enhance system effectiveness over time by developing layered
    defenses that employ complementary sensors and weapons to engage
    threats in the boost, mid-course and terminal phases of flight and to
    deploy capability incrementally. This revised structure involves three
    basic thrusts: First, the new ballistic missile defense program will
    build on the technical progress we have made to date by providing the
    funding required to develop and test elements of the previous program.
        Second, the new program will pursue a broad range of activities in
    order to aggressively evaluate and develop technologies for the
    integration of land-, sea-,
    air-, or space-based platforms to counter ballistic missiles in all
    phases of their flight. Third, the new testing program will incorporate
    a larger number of tests using more realistic scenarios and
    countermeasures. During this testing, we may find opportunities to
    accelerate elements of the program, and increase the overall
    credibility and capability of missile defense systems. This realistic
    testing will require investment in additional infrastructure.
                        missile defense system test bed
        Development of the Ground Based Midcourse (GBMC) project of MDS
    (Missile Defense system) (formerly known as the National Missile
    Defense (NMD) program) requires additional testing under operationally
    realistic conditions. The proposed MDS Test Bed Facility is needed to
    provide the infrastructure for realistic testing. The Test Bed will
    include components at several different installations at widely
    dispersed locations to provide trajectory, sensing, and interception
    scenarios that resemble conditions under which a Missile Defense System
    might be expected to operate. While the Test Bed will initially be used
    to test the GBMC element, in the future, the test bed will be capable
    of integrating boost, midcourse, and terminal element defenses, as well
    as sensors and battle management command, control and communications
    systems. The Test Bed will add realism, allow for multiple engagements,
    and add additional intercept areas to BMD testing, as recommended by
    the BMDO-commissioned Independent Review Team (IRT) (commonly referred
    to as the Welch Panel), and the Director, Operational Test and
    Evaluation.
        The MDS Test Bed is proposed to include the following components:
      --Five Ground Based Interceptors (GBIs) with supporting
            infrastructure at Fort Greely, Alaska and a missile transfer
            facility at Eielson Air Force Base, Alaska. The GBIs at Fort
            Greely will allow BMDO to prove out the design and siting of a
            GBI field that would be required to fire in a salvo without
            having the GBI interfere with each other, to test the
            communication between all component parts, and to test for
            fuels degradation in the artic environment, as well as to
            develop and rehearse maintenance and upkeep processes and
            procedures. At present, BMDO does not intend to launch any GBI
            from Fort Greely during the testing process because these
            missiles would fly over land in violation of current flight
            test safety restrictions. Flight test would be conducted from
            Ft. Greely if the safety issues could be satisfactorily
            addressed.
      --Two GBI launch silos at Kodiak Launch Complex (KLC) at Kodiak,
            Alaska. KLC is a commercial space launch center owned by the
            Alaska Aerospace Development Corporation. This proposed
            component requires completion of the National Environmental
            Policy Act (NEPA) process. The GBI at KLC would allow more
            realistic test trajectories, compared to those presently
            provided by launching GBI from the RTS, and from the Pacific
            Missile Range at Kauai Island in Hawaii.
      --Upgraded software for the existing phased array COBRA DANE radar on
            Shemya Island, refurbishment of the existing electrical power
            plant there, and test support infrastructure at Eareckson Air
            Station on Shemya Island, Alaska. The upgrades will allow the
            COBRA DANE radar to be used as part of the realistic sensing of
            offensive missiles during MDS tests. This, in combination with
            the existing ground based radar prototype at RTS, will allow
            the program to test sensing and intercept of targets launched
            from a variety of locations.
      --Upgraded software for the existing early warning radar (EWR) at
            Beale Air Force Base in California. The upgrade will allow the
            upgraded EWR (UEWR) at Beale to be used as part of the
            realistic sensing of offensive missiles during MDS tests.
      --Battle Management Command and Control (BMC2) nodes at Fort Greely,
            RTS and the Joint National Training Facility (JNTF), Colorado,
            and at another location in Colorado Springs, Colorado. The BMC2
            nodes will allow the MDS system to test its ability to control
            MDS components in a variety of locations.
      --In Flight Interception Communication System (IFICS) Data Terminals
            (IDT) at Fort Greely (2), Eareckson Air Station (2), Kodiak (1)
            and RTS (2). The IDT will allow the MDS system to test its
            ability to communicate information about the target location
            and characteristics to the GBI to effect a successful
            interception.
      --In the future the Test Bed could include a new phased array, X-Band
            radar proposed for the Pacific area in roughly the 2006 time
            frame. This project is at a preliminary stage of design and is
            not in the fiscal year 2002 budget. Its final location will not
            be determined prior to completing the National Environmental
            Policy Act (NEPA) process.
      --Satellite and/or fiber communications between all elements to allow
            them to communicate.
      --Test targets launched from Vandenberg Air Force Base and from
            aircraft when an advanced version of an air launched target is
            developed.
        In addition, the following elements will support the Test Bed:
      --Defense Support Program (DSP) satellites to test their ability to
            assist in rapidly identifying a target missile.
      --Combat Systems Engineering Development Site (CSEDS), New Jersey and
            Aegis SPY radar.
        BMDO proposes to build facilities for the MDS Test Bed using funds
    appropriated as Research, Development, Test and Engineering (RDT&E),
    rather than funds appropriated as Military Construction (MILCON). The
    primary reason for using RDT&E funds versus MILCON funds is to provide
    the needed flexibility to make required changes identified through
    testing in a realistic environment. The MILCON funding approach set out
    in Title 10 U.S.C., Chapter 169 is based on the assumption that all
    aspects of the facility to be constructed--its size, configuration, and
    use--can and should be known in detail, prior to Congressional approval
    of the project. Further, MILCON presupposes that few, and only
    relatively minor changes would be required to a facility after Congress
    approved the project. While these are reasonable requirements when
    applied to most facilities that are constructed on military
    installations, the requirements do not readily allow for the evolution
    and development of this MDS Test Bed. The intent of the robust testing
    is to determine whether the proposed components operate as envisioned,
    and if not, to determine how the components should be changed so that
    they will provide an effective defense. Change to the components is
    extremely likely to require change in the supporting facilities. As an
    example, the precise missile that will be used as the GBI in an
    operational GBMC element has not yet been determined. The MDS test bed
    will be using a surrogate GBI. As more is known about the final size
    and particular fueling, configuration and other aspects of the GBI, the
    launch silos, and other supporting GBI facilities at the test bed may
    have to be reconfigured in order to support as realistic a testing
    program as is possible.
        The cost of constructing the proposed Test Bed should be included
    in the total R&D cost of developing a GBMC missile defense element.
    Title 10 U.S.C. Section 2353 authorizes funding a limited class of
    construction with RDT&E if the facility is necessary for the
    performance of a research and development contract and in addition the
    facility must be to support research and development; and it cannot
    have general utility.
        BMDO has determined that aspects of the Test Bed project clearly
    fall within the 10 U.S.C. 2353 authority. Other aspects of the Test Bed
    could be viewed to be of ``general utility'' and thereby not authorized
    by 10 U.S.C. 2353; as neither the statute nor its legislative history
    contain a definition of general utility. While BMDO could, in theory,
    fund part of the Test Bed project with MILCON, doing so would greatly
    reduce BMDO's ability to rapidly and effectively make changes to the
    Test Bed in response to requirements identified through realistic
    testing. To resolve the issue, the Department of Defense has proposed
    legislation that would clarify its authority to construct the Test Bed,
    to include facilities of general utility, with RDT&E funds.
        The legislative proposal would allow construction activities to be
    undertaken with authorized RDT&E funds at Fort Greely, Eareckson Air
    Station, Eielsen Air Force Base and Kodiak, Alaska. The proposal would
    also authorize the Secretary of Defense to provide assistance to local
    communities to meet the need for increased municipal or community
    services or facilities resulting from the construction, installation,
    or operation of the MDS test bed.
        The fiscal year 2002 construction budget request (MILCON and RDT&E)
    of $296.6 million contributes $283.3 million of RDT&E funds to the
    development of the MDS Test Bed, which will be used initially to prove
    out the midcourse capabilities. Over time the test bed will expand to
    include weapons and sensor capabilities to improve all missile defense
    capabilities, as they are made available.
        This test bed will allow us to test more than one missile defense
    segment at a time and exploit multiple shot opportunities so that we
    can demonstrate the layered defense concept. The test bed will provide
    a realistic environment to test different missile defense capabilities
    under varying and stressing conditions. It will also help us test and
    prove out construction, transportation, and logistics concepts we will
    need to build and operate deployment facilities in the challenging
    Alaskan environments.
              fiscal year 2001 military construction appropriation
        The Congress appropriated $85.1 million in fiscal year 2001
    Military Construction to fund the first phase of NMD deployment
    facilities. Of that amount $20.85 million has been reprogrammed to
    planning and design to continue the deployment facilities design
    effort. We are planning to use $9 million to perform site preparation
    at Fort Greely. The site preparation is for clearing, excavating, and
    grading the site, preparing facility sub-bases, and installing
    preliminary utilities (two water wells) and road infrastructure. The
    proposed site preparation work is the initial part of the approved
    fiscal year 2001 MILCON project and the work was planned and designed
    using MILCON funds. It will not include construction of any silos.
    While the site preparation work at Ft. Greely is work that is
    authorized under the BMDO fiscal year 2001 MILCON project, BMDO
    recognizes that the previous MILCON documentation no longer accurately
    describes the work actually planned in the next several years. To
    rectify this situation, BMDO has submitted a revised DD Form 1391 for
    the MDS Test Bed construction in its fiscal year 2002 Budget request.
    The remaining $55 million in fiscal year 2001 MILCON will be retained
    until additional guidance is received on how to proceed with the
    Ballistic Missile Defense System and would be available to construct
    deployment facilities when directed.
                        space based laser test facility
        Another RDT&E funded project is the Space Based Laser Test
    Facility. The facility is needed to conduct the ground test and
    demonstration portions of the Integrated Flight Experiment (IFX). The
    test facility will include a singularly unique structure designed
    specifically to support the full power laser test firing of the IFX and
    combined integration tests of the chemical laser system configured as a
    complete space vehicle.
        The main building structure will include a 120 foot wide by 240
    foot long by 150-foot tall, ``High Bay'' class 10,000 clean room, a
    shipping receiving and decontamination area (120 feet by 95 feet, class
    10,000 clean room), and support spaces for offices, laboratories, and
    shops. The facility will be constructed at the NASA John C. Stennis
    Space Center in Mississippi. The fiscal year 2002 request for $5
    million starts the project. Total construction cost is estimated at $37
    million.
        Thank you for your support, Madam Chairwoman. I would be happy to
    answer any questions you and the Members of the Committee might have.

        Senator Feinstein. General, please proceed.

               Statement of Lieutenant General William P. Tangney

        General Tangney. Thank you, Madam Chairman, Senator
    Hutchison. I am pleased to be here today to discuss the United
    States Special Operations Command fiscal year 2001 military
    construction budget. I am Lieutenant General Bill Tangney,
    Deputy Commander in Chief U.S. SOCOM, McGill Air Force Base,
    Florida. With the chairwoman's concurrence, I will submit my
    formal statement for the record and present a brief summary at
    this point.
        Senator Feinstein. Excellent. Thank you.
        General Tangney. Our military construction program has a
    direct, positive, and significant impact on our unique Special
    Operations capabilities. Both our active and reserve Special
    Operations forces possess highly specialized skills that are
    used to execute a broad range of specialized joint operations.
    The command's military construction program provides essential
    facilities. These facilities in turn support our unique
    training needs and hence force capability and increase the
    readiness of our personnel for missions and weapons systems to
    perform our unique and highly specialized missions.
        The military construction budget request for fiscal year
    2002 totals $98.9 million, consisting of $90.2 million for 19
    major construction projects at 8 installations, $1.9 million
    for unspecified minor construction, and $6.8 million for
    military construction planning and design.

                               Prepared Statement

        Your support of this program is vital to the continued
    development and effectiveness of Special Operations Forces and
    their ability to support and advance our national security.
    This committee's support in prior years has greatly improved
    our joint Special Operations capability. We look forward to
    your committee's continuing support again this year and in the
    future to acquire the facilities which we need for our
    formations to perform their unique assigned missions.
        [The statement follows:]

                Prepared Statement of General William P. Tangney

                                  introduction
        Madam Chairwoman and members of the committee, I am pleased to
    present the United States Special Operations Command (USSOCOM) Military
    Construction (MILCON) budget request for fiscal year 2002. Our MILCON
    program has a direct, positive impact on the training, readiness and
    operational capabilities of this nation's special operations forces
    (SOF). The highly specialized skills and equipment required to
    successfully execute the full spectrum of special operations missions
    require a modern array of operations, training, and maintenance and
    support facilities.
                                    purpose
        The long term goal of the USSOCOM facilities program, in which
    annual MILCON investment is a major factor, is to have all units and
    personnel working and living in adequate facilities in order to
    maximize both training and operations capabilities. Facilities
    requirements are generated by the need to modernize and replace old and
    inadequate facilities and the need to support new weapons systems,
    force structure, and missions. The current MILCON program is planned to
    provide facilities that will improve force capability, increase
    readiness of SOF weapons systems, and support diverse training needs.
    Examples of major construction needs that meet this criteria include:
    training ranges and language training facility improvements at Fort
    Bragg, North Carolina; aircraft support facilities at Hurlburt Field,
    Florida; and replacement facilities for our Sea-Air and Land (SEAL)
    team forces at Naval Amphibious Base Coronado, California. Each
    construction request is part of a joint construction plan integrated at
    USSOCOM to ensure the most critical projects are constructed at the
    right place, on time, and contributing the greatest value to our
    mission.
        Your committee's support in prior years has aided immeasurably in
    improving SOF's operational capability. We look forward to working with
    the committee to acquire these facilities so USSOCOM can continue to
    perform its missions and ensure we have a fully trained and capable
    force in the 21st Century.
                                 milcon program
        USSOCOM's MILCON budget request for fiscal year 2002 totals $98.9
    million consisting of: $90.2 million for major construction, $1.9
    million for unspecified minor construction, and $6.8 million for
    project planning and design. The nineteen military construction
    projects in this program for our joint command include thirteen
    projects for the Army Special Operations Command, two projects for the
    Air Force Special Operations Command, two projects for Headquarters
    U.S. Special Operations Command, one project for the Naval Special
    Warfare Command, and one Joint Special Operations Command project. The
    majority of our programs support replacement, renovation and renewal of
    current mission facilities. The purpose behind each of these
    requirements is to facilitate the high state of readiness of all
    special operations forces. Following is a brief description of each of
    the 19 requirements:
    Seal Team Five Operations Facility, Naval Amphibious Base Coronado,
            California--$13.65M
        Constructs platoon and operations supply buildings, renovates an
    existing administrative facility and rehabilitates a parachute drying
    tower for Seal Air and Land (SEAL) Team FIVE. This project will replace
    deteriorated and undersized facilities built in the 1950s and also
    eliminate storing gear outdoors in numerous cargo containers.
    CV-22 Training Device Support Facility, Hurlburt Field, Florida--$10.2M
        Constructs a facility to support CV-22 simulator training. Areas
    include classrooms, administrative space, CV-22 flight simulators,
    simulator support area, specialized training areas and storage. The
    existing simulator facility is not large enough to support the
    additional CV-22 training mission as well as current fixed wing and
    helicopter trainers.
    Readiness Supply Package Facility, Hurlburt Field, Florida--$3.2M
        Constructs a facility to provide storage for readiness supply
    packages (RSP) for helicopters and CV-22 aircraft. RSP consist of
    palletized spare parts and supplies for aircraft during deployments.
    The existing facility is located over two miles from the aircraft
    parking area across an active runway. Lack of adequate storage will
    require storage in temporary shelters or outside, exposing the assets
    to deterioration.
    Public Access Building, Macdill Air Force Base, Florida--$2.5 M
        Builds a facility to house the Headquarters USSOCOM contracting
    function accessible to the public. The facility will house the
    competition advocate, technical industrial liaison office and
    procurement directorate. These functions are currently in temporary
    leased space.
    Renovate Command & Control Facility II, Macdill Air Force Base,
            Florida--$9.5 M
        Provides supplemental requirements to complete renovation of the
    USSOCOM Headquarters command and control facility in Tampa, Florida.
    Latent requirements were identified during design of the original
    fiscal year 1999 MILCON building renovation, requiring communications
    architecture enhancements, backup power generator replacement, added
    force protection features, extended fire protection coverage,
    additional physical security, and space adjustments.
    Tactical Equipment Complex, Fort Benning, Georgia--$5.1 M
        Constructs a tactical equipment complex to include a vehicle
    maintenance shop, warehouse, arms/communications/electronics
    maintenance facility, vehicle storage building, oil storage facility
    and military vehicle parking. Existing vehicle maintenance shops lack
    sufficient bay and shop space, overhead lift clearance and capability,
    proper heating and ventilation, adequate lighting, and fire protection.
    Operational Training Facility, Aberdeen Proving Ground, Maryland--$3.2
            M
        Constructs new and renovates existing facilities on an existing
    range for an expanded special operations mission. Project provides
    facilities to support training and develop new equipment, materials and
    tactics. Aberdeen Proving Ground has range conditions and security
    measures in place that satisfy mission sensitive requirements.
    Battalion Operations & Vehicle Maintenance Complex, Fort Bragg, North
            Carolina--$8.5 M
        Constructs a battalion headquarters, organizational vehicle
    maintenance shop, deployment storage facility, and vehicle parking area
    for the 96th Civil Affairs Battalion. The existing Korean War era
    facilities provide only 50 percent of the required space and lack
    adequate infrastructure to support modern battalion headquarters.
    Imagery and Analysis Facility, Fort Brag, North Carolina--$3.15 M
        Constructs a photographic, imagery and analysis facility to support
    imagery production, terrain model building and intelligence analysis.
    The facility will include photographic and imagery equipment areas,
    darkroom, model/exhibit workshop, storage and administrative space. The
    existing facilities were designed as warehouses and do not have
    adequate space and utilities to fully support this highly technical
    mission.
    Language Sustainment Training Facility, Fort Bragg, North Carolina--
            $2.1 M
        Constructs classrooms, administrative and instructor areas, audio/
    visual storage areas, computer lab and distance learning rooms to
    provide specialized language sustainment training for the 3rd Special
    Forces Group. Language training is currently conducted in a WWII era
    facility and a converted operations facility. Existing facilities do
    not have sufficient space and lack adequate heating and lighting needed
    for language training.
    Repair Training Facility, Fort Bragg, North Carolina--$1.812 M
        Repairs and replaces damaged ballistic wall and floor systems in an
    indoor range facility. Life-cycle repair of the ballistic wall systems
    is required every seven years to provide a safe and functional live-
    fire training facility. The next repair cycle is required by 2002.
    Team Operations & Information Automation Facilities, Fort Bragg, North
            Carolina--$5.8 M
        Constructs a consolidated facility for communications forward
    operations detachments to conduct team planning, store deployable
    equipment and gear and perform administrative functions. The project
    will also modify an existing warehouse into an information automation
    facility. This construction is required to enhance the unit's readiness
    posture and capabilities.
    Training Facility, Fort Bragg, North Carolina--$5.0 M
        Provides facilities for instructional staff and Special Forces
    candidate trainees at the Rowe Training Center. This training area
    provides initial qualification training for Special Forces personnel.
    Construction includes a two-story cadre administration building,
    toilet/shower and laundry facilities. Existing facilities are
    deteriorated temporary structures that are inadequate for this training
    mission.
    Training Range, Fort Bragg, North Carolina--$2.6 M
        Constructs a covered 20-position baffled firing range to conduct
    live-fire training. The new range will expand training flexibility by
    providing moving targets for sniper training under various weather
    conditions, and simulated night training with the use of night vision
    goggles. The existing range is operating under a safety waiver that
    limits firing to only single shots at stationary targets.
    Vehicle Maintenance Complex, Fort Bragg, North Carolina--$3.6 M
        Constructs two additions to a vehicle maintenance shop, a
    deployment storage facility, a motorcycle storage building, and
    organizational vehicle parking for the 3rd Special Forces Group.
    Additional facility space and parking area are required to accommodate
    the increase in assigned vehicles from 170 to 426 with 42 additional
    vehicles expected within the next year.
    Weather Operations Facility, Fort Bragg, North Carolina--$1.0 M
        Provides permanent facilities for a combat weather detachment. This
    21-person unit and equipment provide weather information to multiple
    SOF units at Fort Bragg. Construction includes administrative offices,
    team rooms, training/conference areas, storage and equipment
    maintenance space. The existing deteriorated facility was built in 1941
    as enlisted quarters and lacks adequate electrical, heating and air
    conditioning systems.
    Language Sustaiment Training Facility, Fort Lewis, Washington--$1.1 M
        Constructs classrooms, administrative and instructor areas, audio/
    visual storage areas, computer lab space, and distance learning rooms
    for the specialized language sustainment training of the 1st Special
    Forces Group. This language training is currently conducted in a
    barracks that is not suited for language training.
    Tactical Equipment Complex, Fort Lewis, Washington--$5.8 M
        Constructs a tactical equipment complex to include a vehicle
    maintenance shop, warehouse, arms/communications/electronics
    maintenance facility, vehicle storage building, oil storage facility
    and military vehicle parking. Current functions are housed in twelve
    1950s vintage buildings that do not have sufficient shop space,
    overhead lift capability, or adequate heating, ventilation and
    lighting.
    Aviation Training and Maintenance Facility, Classified Location
            (CONUS)--$2.4 M
        Constructs an aviation training facility and an aviation
    maintenance facility. The training facility will provide classroom,
    life-support equipment maintenance and storage areas, administrative
    offices, and audiovisual storage and support areas. The maintenance
    facility will include a single aircraft maintenance bay, bridge crane,
    avionics and optical shops, storage and office space. Existing
    facilities are deteriorated temporary trailers that have exceeded their
    useful life.
                                    summary
        Our proposed fiscal year 2002 military construction budget for
    facility investment will significantly improve the operational
    readiness and training capability of the USSOCOM. Your support of this
    program is essential to ensure the continued quality and effectiveness
    of our nation's special operations forces.

        Senator Feinstein. Thanks, General, very much.
        General Randolph.

              Statement of Major General Leonard M. Randolph, Jr.

        General Randolph. Thank you and good afternoon. Madam
    Chairman and Senator Hutchison, on behalf of Dr. Jarrett
    Clinton, the Acting Assistant Secretary of Defense for Health
    Affairs, and Mr. Thomas Carrato, the Executive Director,
    TRICARE Management Activity, I thank you for the opportunity to
    present the Department of Defense's fiscal year 2002 amended
    medical military construction program budget request. With the
    concurrence of Madam Chairman, I would like to also submit my
    longer written statement for the record and give a brief
    overview at this time.
        Senator Feinstein. Please proceed, sir.
        General Randolph. Let me begin by thanking the committee
    for your support of our medical construction programs in the
    past. But I look forward to your continued support in the
    future for ensuring the quality of life that our soldiers,
    sailors, airmen, marines, and eligible beneficiaries require to
    stay ready and to stay healthy. I would like to present this
    brief overview at this time by saying that the functionality
    and the condition of the facilities in which health care
    services are rendered has a profound impact on the perceived
    quality of life, retention, and recruitment, as well as the
    quality and the quantity of services that can be provided in
    those facilities.
        When we talk about quality of life in the medical military
    construction arena, we are referring to the facilities where
    the staff and the beneficiaries are able to work and receive
    care in the most optimal and safe environment possible. As a
    benefit of providing this type of environment, we provide up to
    date, operationally efficient facilities, lower costs by having
    greater in-house access to care, and retain well-qualified,
    highly motivated personnel.
        Our fiscal year 2002 program requests appropriations of
    $193.3 million for 22 major construction projects. We are also
    seeking $5,526,000 for unspecified minor construction and
    $26,300,000 for planning and design efforts to complete designs
    on fiscal year 2003 projects, further design projects
    identified for fiscal year 2004, and to commence design on
    projects for fiscal year 2005.
        The total appropriation request for this fiscal year 2002
    amended medical construction budget is $225,126,000. Our
    mission is to support and protect our forces before, during,
    and after operational deployment, as well as to provide
    preventive health care services to all eligible beneficiaries
    of the Department of Defense. The highly specialized skills and
    equipment required to successfully execute the full spectrum of
    the DOD health care mission also demands a modern array of
    treatment, training, operational, and storage facilities.
        Our physical plant structure plays an integral role in our
    ability to successfully carry out this mission. Two projects
    directly support the readiness of our forces at isolated
    locations overseas where there are no alternative sources of
    health care. They include a dental clinic replacement for $3.75
    million at Lajes Air Force Base, Portugal, and the Composite
    Medical Facility replacement at Thule Air Base, Greenland, at a
    cost of $10.8 million.
        In conclusion, the medical construction program is one of
    the important pieces of the quality of life of our uniformed
    personnel. The program stands as a testament, I believe to our
    combined commitment with you to maintain our country's medical
    readiness, provide better access to in-house direct care, and
    to provide quality health care services to the women and men
    serving in our armed forces, as well as all of our eligible
    beneficiaries.

                               Prepared Statement

        Thank you for the opportunity to present our budget. This
    concludes my overview of the fiscal year 2002 amended medical
    military construction budget request.
        [The statement follows:]

          Prepared Statement of Major General Leonard M. Randolph, Jr.

        Good morning Mr. Chairman and Members of the Subcommittee. I am
    Major General Randy Randolph, Office of the Assistant Secretary of
    Defense for Health Affairs.
        On behalf of Dr. Jarrett Clinton, the Acting Assistant Secretary of
    Defense for Health Affairs and Mr. Thomas Carrato, the Executive
    Director, TRICARE Management Activity, I thank you for the opportunity
    to present the Department of Defense's fiscal year 2002 Amended Medical
    Military Construction Program budget request.
        The Appropriations Committee has been very supportive of our
    Medical Construction Program in the past and I look forward to your
    continued support in the future for ensuring the quality of life that
    our soldiers, sailors, airmen and eligible beneficiaries require to
    stay ready and healthy. I would like to present a brief overview of our
    fiscal year 2002 Medical Military Construction Program.
        The functionality and condition of the facilities in which
    healthcare services are rendered has a profound impact on perceived
    Quality of Life as well as on the quality and quantity of services that
    can be provided in those facilities. When we talk about Quality of Life
    in the Medical Military Construction arena we are referring to
    facilities where the staff and beneficiaries are able to work and
    receive care in the most optimal environment possible. As a benefit of
    providing this type of environment we provide up-to-date, operationally
    efficient facilities; lower costs by having greater in house access to
    care and retain well-qualified and highly motivated personnel.
        Our fiscal year 2002 program requests appropriations of
    $193,300,000 for 22 major construction projects. We are also seeking
    $5,526,000 for unspecified minor construction and $26,300,000 for
    planning and design efforts to complete designs on fiscal year 2003
    projects, further design projects identified for fiscal year 2004 and
    commence design on projects for fiscal year 2005. The total
    appropriation request for this fiscal year 02 Amended Medical
    Construction budget is $225,126,000.
        Our mission is to protect our forces before, during and after
    operational deployment as well as to provide preventive healthcare
    services to all eligible beneficiaries of the Department of Defense.
    The highly specialized skills and equipment required to successfully
    execute the full spectrum of the DOD healthcare mission also demands a
    modern array of treatment, training, operational and storage
    facilities. Our physical plant structure plays an integral part in our
    ability to successfully carry out these missions.
        One long-term goal of the TRICARE Management Activity is to have
    all eligible beneficiaries and healthcare providers receiving care and
    working in modern, efficient healthcare facilities in order to maximize
    use of the in-house facilities and to minimize healthcare costs outside
    of the direct care system. Facility requirements are generated by the
    need to modernize and replace inadequate facilities to support the
    constantly evolving and changing healthcare environment.
        The program before you today is planned to provide facilities that
    will ensure our readiness posture, improve the access to healthcare for
    our eligible beneficiaries and improve the quality of life for our
    healthcare patients and providers. Construction projects in this budget
    that meet these criteria are:
                               readiness projects

    Schreiver Air Force Base, Colorado

                            [In millions of dollars]

    Medical/Dental Clinic.........................................      4.00
        This project will replace an existing aid station with a 1, 071
    square meter medical/dental clinic to serve over 2,500 active duty
    beneficiaries at this isolated, high-security installation. The project
    will allow personnel stationed at Schriever convenient access to
    healthcare and improve the base's emergency response, industrial
    hygiene and public health capabilities.

    Fort Stewart, Georgia

                            [In millions of dollars]

    Consolidated Troop Medical Clinic.............................     11.00
        Provides a single, right-sized troop medical clinic that replaces
    three small dispersed facilities in the west garrison area of the
    installation. This clinic will serve both active duty and family
    members and provides facilities for pre-deployment physical
    examinations and immunizations during force mobilization.

    Thule Air Base, Greenland

                            [In millions of dollars]

    Composite Medical Facility Replacement........................     10.80
        Replaces a grossly over-sized and extremely inefficient facility
    constructed in 1953 to serve 12,000-15,000 personnel. The replacement
    facility will be right-sized for today'' population and composed of
    pre-engineered and pre-manufactured systems and will house the
    necessary functions to successfully treat remotely-located Armed
    Services personnel.

    Andrews Air Force Base, Maryland

                            [In millions of dollars]

    Naval Air Facility Washington, Br Med/Den Clinic Relocation...      2.95
        This clinic provides medical/dental care to approximately 5,000
    active duty personnel. The requested project relocates the existing
    clinic from the second floor of an aircraft maintenance hangar
    constructed in 1961 to an adjacent building of opportunity. The present
    clinic is a health hazard due to roof leaks, jet fuel seepage, lack of
    environmental controls and non-compliance with life safety and building
    codes for healthcare facilities.

    Lajes Air Base, Portugal

                            [In millions of dollars]

    Dental Clinic Replacement.....................................      3.75

        Provides an on-base adequately sized dental clinic. The current
    undersized off-base dental clinic is the target of frequent vandalism
    including broken windows and fires being set next to the building. For
    force protection reasons, the dental clinic must be relocated on base.

    Naval Operations Base Norfolk, Virginia

                            [In millions of dollars]

    Branch Medical Clinic Addition/Alteration-Sewells Point.......     21.00
        Increases the ability of this overcrowded clinic to meet the
    current patient workload and redress deficiencies in disability
    accessibility and life safety issues. The project will add treatment
    and support spaces as well as configure existing space to provide
    efficient clinic layout and circulation patterns.
                         access to care/quality of life

    Twenty-nine Palms, California

                            [In millions of dollars]

    Hospital LDRP Conversion......................................      1.60
        The third floor of the existing Naval Hospital will be altered to
    provide an efficient infant delivery system in the form of an
    integrated Labor, Delivery, Recovery, and Post Partum treatment unit.
    This will eliminate the current sizing and layout deficiencies and
    constraints as well as bring the medical gas system into code
    compliance.

    Mayport Naval Station, Florida

                            [In millions of dollars]

    Medical/Dental Clinic Replacement.............................     24.00
        The existing clinic was constructed in 1977. It has extensive
    functional, life safety, and engineering systems deficiencies.
    Circulation patterns are confusing, departmental adjacencies are
    inefficient, clinical areas are fragmented, and support spaces are
    insufficient. This facility will support a beneficiary enrollment of
    over 60,000 people.

    Hurlburt Field, Florida

                            [In millions of dollars]

    Medical/Dental Clinic Addition/Alteration.....................      8.80
        The current clinic was constructed to care for 4,000 active duty
    personnel. Today there are 21,000 beneficiaries enrolled including
    family members. Functions are currently located in several buildings
    scattered throughout the installation. The project will consolidate and
    right size all medical services onto one medical campus.

    Marine Corps Logistics Base Albany, Georgia

                            [In millions of dollars]

    Medical/Dental Clinic Replacement.............................      5.80
        This project replaces 16,000 Gross Square Feet of the existing
    Marine Corps Logistics Base Albany clinic, currently comprised of a
    leased temporary modular trailer facility erected in 1995 and an 8,288
    Gross Square Foot substandard facility. The proposed replacement clinic
    is planned at 27,621 Gross Square Feet to serve an eligible population
    of 9,068 TRICARE eligibles. This project will ensure access to care and
    contribute substantially to the quality of life of these eligible
    beneficiaries and our healthcare providers.

    Andrews Air Force Base, Maryland

                            [In millions of dollars]

    Medical Clinic Addition/Alteration............................      7.30
        Space located in 10-year-old modular buildings slated for
    demolition will be replaced by this 32,920 gross square foot addition.
    The Air Force Surgeon General has mandated that all primary care
    services for active duty and family members be provided on base, making
    leasing nonviable. This project is vital to our endeavor to increase
    access to care and improve quality of life for our eligible
    beneficiaries and our healthcare providers.

    Holloman Air Force Base, New Mexico

                            [In millions of dollars]

    Medical Clinic Alteration.....................................      5.70
        This facility was previously right-sized from an inpatient to an
    outpatient healthcare facility. The alteration work in the requested
    project will resolve space issues within the existing hospital and
    consolidate functions bringing back outpatient clinics that are in
    deteriorating temporary facilities.

    Dyess Air Force Base, Texas

                            [In millions of dollars]

    Medical Treatment Facility Alteration.........................      3.30
        This project will renovate currently vacant space within the
    existing clinic, which was previously right-sized. The space requires
    renovation to convert formerly inpatient space to use as outpatient
    clinic space. Clinics currently located in 1950's era facilities will
    be moved into the renovated space.

    Fort Hood, Texas

                            [In millions of dollars]

    Hospital Addition/Alteration..................................     12.20
        Fort Hood is home to III Corps, which includes two divisions and a
    number of combat support units. The troop population at Fort Hood has
    grown to the point where the hospital is near maximum capacity in some
    critical areas. This project provides sufficient space for emergency
    medicine, radiology and a number of hospital administrative and
    educational activities.

    F.E. Warren Air Force Base, Wyoming

                            [In millions of dollars]

    Medical Clinic Alteration.....................................      2.70
        Project converts the existing small hospital to a clinic. Clinical
    functions in outlying buildings will be consolidated into vacated,
    formerly inpatient areas. Uniquely configured inpatient areas such as
    the surgical suite, central sterile, and the hospital kitchen will be
    renovated to accept outpatient clinics.

    Heidelberg, Germany

                            [In millions of dollars]

    Hospital Addition/Clinic Alteration...........................     28.00
        The Heidelberg facility, constructed between 1930 and 1940, is the
    referral hospital for 11 outlying medical clinics. The facility
    currently suffers from severe life safety issues, space shortages, and
    inefficiencies and inappropriate adjacencies. This project will provide
    an addition to serve the 38,000 beneficiaries who require access to
    care in this region.

    Fort Wainwright, Alaska

                            [In millions of dollars]

    Hospital Replacement, Phase III...............................     18.50
        Authorized in fiscal year 2000 at $133,000,000, and reauthorized at
    $215,000,000 in the fiscal year 2001 Supplemental Appropriations Act,
    this project seeks $18,500,000 in appropriations this year. The Cost of
    construction has risen significantly in Alaska. The recent natural
    disasters in the Northwest contiguous lower 48 states have monopolized
    the contractor job market and sub-contractors in Alaska are spread thin
    as well. The project itself has not changed from its original concept.
    The existing facility was built in 1951 and still has the original
    utility systems in operation.
                       projects seeking re-appropriation
        We are seeking re-appropriation on five projects in this budget
    request. A large contractor-filed claim following completion of the
    Acute Care Facility portion of the Naval Hospital Portsmouth
    construction project was paid by the US Treasury Judgment Fund. The
    fiscal rules that apply to this account required expeditious repayment
    by the Medical Construction, Defense Agencies program. There were no
    savings that could be used for this purpose. Contracts for construction
    award had to be held in abeyance while we used our only existing source
    of available dollars to pay the Judgment Fund--projects appropriated
    but not yet under award. The projects, appropriated in fiscal year 2000
    and fiscal year 2001 and their currently required amounts are:

    ------------------------------------------------------------------------
                                                               (Millions of
                 Location                      Project           dollars)
    ------------------------------------------------------------------------
    Whidbey Island, Washington........  Water Survival                 $6.60
                                         Facility.
    Camp Pendleton, California........  Med/Den Clinic Rpmt--           4.30
                                         Horno.
    Camp Pendleton, California........  Med/Den Clinic Rpmt--           4.05
                                         Pulgas.
    Camp Pendleton, California........  Med/Den Clinic Rpmt--           3.80
                                         Flores.
    Camp Pendleton, California........  Fleet Hospital                  3.15
                                         Support Facility.
    ------------------------------------------------------------------------

        These projects are all ready to be executed. The Whidbey Island
    project was unable to be awarded within the originally authorized and
    appropriated amount of $4.7 million. The increase in cost as reflected
    above will ensure successful award of this fiscal year 2000 project.
    The other projects were all originally authorized and appropriated in
    fiscal year 2001 and their increase in cost is reflective of inflation
    due to the necessity to delay award.
                                   conclusion
        The Medical Construction Program is one of the important pieces of
    the quality of life for our uniformed personnel. The program stands as
    a testament to our combined commitment with you to maintain our
    country's medical readiness, provide better access to in-house direct
    care and provide quality health care services to the men and women
    serving in our Armed Forces and all of our eligible beneficiaries. I
    thank you for the opportunity to present our budget. This concludes my
    overview of the fiscal year 2002 Amended Medical Military Construction
    budget request.

        Senator Feinstein. I wanted to begin, if I might, with Dr.
    Sanders. I understand there are no MILCON funds for Fort Greely
    in the 2002 budget; is that correct?
        Dr. Sanders. That is correct.
        Senator Feinstein. But there are funds in the 2001 budget?
        Dr. Sanders. That is correct.
        Senator Feinstein. Could you explain to me why a decision
    was made to use research and development funds instead of
    MILCON to construct the missile defense testbed which is now
    going to be at the initial deployment site at Fort Greely?
        Dr. Sanders. The Department believes that the testbed
    facility should be funded with RDT&E, reflecting the reality
    that the testbed is a research and development effort, and as
    such the cost of constructing the testbed should be included in
    the cost as a research and development cost of developing a
    ground-based midcourse missile defense system. The RDT&E
    funding will provide the needed flexibility to make the
    required changes to the testbed that we identify through
    testing in this realistic environment.
        Senator Feinstein. I guess what I am concerned by--and I am
    sure I am wrong here, because Mr. Wolfowitz would not have said
    it in his letter--but that this is considered as a prudent
    intermediate step toward the construction of an initial
    deployment facility and all initial deployment work is being
    done with R&D money; is that correct? There will be no MILCON
    money utilized?
        Dr. Sanders. I do not believe I would characterize it that
    way. I cannot speak for Mr. Wolfowitz, obviously, but I would
    interpret what he says in terms of it being an intermediate
    step towards the ultimate construction of the initial
    deployment facility. It is much the same as any research and
    development effort is an intermediate step to the ultimate
    product. We do not know yet that what we construct as part of
    the testbed will actually be the final configuration of those
    facilities to support the deployment facility. We do believe
    that Fort Greely will be a site at which we would desire to
    have deployment facilities eventually. So it makes sense from a
    cost effectiveness standpoint to put some of your initial
    research and development facilities there so that you can build
    upon the experience later.
        Senator Feinstein. So you are saying the clear intent is
    that if all the tests work out it is a deployment facility. At
    what point, Dr. Sanders, in your evaluation does it violate the
    ABM Treaty?
        Dr. Sanders. I think that is something I am not qualified
    to make a judgment on. The work that we have asked to do in
    calendar year 2001 and that you questioned in your recent
    letter has been determined to be treaty-compliant.
        Senator Feinstein. Has been determined?
        Dr. Sanders. Has been determined to be treaty compliant,
    because it involves no construction of silos, no construction
    of actual facilities. It involves only clearing, grading,
    excavating of land, building of a road, and some minor
    utilities. The treaty does allow us to build additional test
    facilities. The ABM Treaty does require notice of a new test
    range 30 days after construction related to building ABM
    launchers or radars, which is not included in the fiscal year
    2001 money. So site preparation is specifically allowed.
        With regard to future activities, since the ABM Treaty does
    explicitly allow a party to establish new test ranges, it does
    allow us to do that, but provided that they are consistent with
    the obligation not to provide a base for the defense of the
    territory. It is an open question on whether the entire missile
    defense system testbed as a whole will provide a base, so that
    that question is currently under review and under consideration
    by the appropriate treaty experts and I am not an appropriate
    treaty expert.
        Senator Feinstein. Is there a requirement for an
    environmental impact statement?
        Dr. Sanders. There is a requirement. The work at Fort
    Greely has been covered under the environmental impact
    statement that was done for the NMD deployment, deployment
    facilities, because it essentially consists of activities that
    are a small portion of what was originally covered there and in
    fact it is less of an impact on the environment because it has
    a much smaller footprint, it involves much fewer facilities and
    only five silos, as opposed to a much larger number of silos in
    a deployment facility. Other parts of the testbed will require
    environmental assessments that have not all been completed.
        Senator Feinstein. Is it correct that there still is some
    question as to whether this testbed would be purely research
    and development or whether it would have some general utility?
    My understanding of the Wolfowitz letter, is that it is clearly
    being prepared as an initial deployment site, not for any
    general utility.
        Dr. Sanders. We have really determined that aspects of the
    testbed project clearly fall within Title 10, Code 2353
    authority, and use of and RDT&E funding would be authorized.
    There are some aspects of the testbed that could be viewed as
    having general utility and therefore are not authorized for
    RDT&E funding. But neither the statute nor the legislative
    history have a clear definition of ``general utility.'' So in
    order to clarify that, the Department has proposed legislation
    that would clarify the authority to construct a testbed to
    include some facilities that might be considered general
    utility with RDT&E funds.
        Senator Feinstein. What are those facilities?
        Dr. Sanders. The ones that might be considered general
    utility?
        Senator Feinstein. Right.
        Dr. Sanders. I would hesitate to say right now because that
    is an ambiguous area, but it could be, for example, at one
    aspect of the testbed it is an upgrade to the radar, the Cobra
    Dane radar in Shemya, the upgrade to the radar's software. It
    is not even a construction element. But there is an upgrade to
    the power plant needed there in order to support that radar,
    and that might or might not be considered general utility.
        Can you tell me how long the site preparation work at Fort
    Greely is scheduled to take?
        Dr. Sanders. I am not sure. I believe the intent would be
    to have that completed before the end of this construction
    period, which typically would last only through October.
        Senator Feinstein. I just wondered, to your knowledge is
    there any directive out as to when proposals and plans would
    bump up against the ABM Treaty?
        Dr. Sanders. Proposals specifically relating to the
    testbed?
        Senator Feinstein. Right.
        Dr. Sanders. I only know that the proposal for the testbed
    is under consideration currently with the compliance review
    process, and I do not know what the outcome of that process
    will be.
        Senator Feinstein. Okay.
        If I might, Mr. Molino, with the increased presence in Guam
    what steps have been taken to address the adequacy of school
    facilities there?
        Mr. Molino. Madam Chairman, we reacted to the decision to
    increase the Navy's presence in Guam by adding temporary
    facilities--trailer type setups--to facilitate the student
    population. In addition to that, there is construction of a
    high school located midway between the Air Force base and the
    naval facility that will accommodate both, the students from
    both bases. So we are reacting to that in a catch-up mode and
    are making good progress in that regard.
        Senator Feinstein. Thank you very much.
        General Randolph, if I might, my understanding is there is
    a request for a clinic addition at Warren Air Force Base in
    Wyoming and this is the base of the Peacekeeper missiles.
    Recently the administration has said that the Peacekeeper is no
    longer necessary and is going to be phased out of the
    inventory. How might that decision affect the current MILCON
    plans for Warren?
        General Randolph. Madam Chairman, I do not think that that
    would affect it at all. The reason that the project was put
    forward had to do with the buildings that exist already. As I
    think you are probably aware, two of the three buildings that
    are now being utilized for health care facilities there are
    historical in nature and therefore old. The infrastructure that
    you have heard about in previous testimony exists there, too.
        Because of that, we are looking to consolidate, first of
    all, those three facilities into one and we are looking to
    modernize the facilities and take care of those infrastructure
    problems. So it really was not a population-based decision.
        Senator Feinstein. Thank you very much.
        Senator Hutchison.
        Senator Hutchison. Yes. Let me start with General Randolph.
    The TRICARE I think is a very important part of our medical
    coverage, and you have two facilities in Texas that are being
    upgraded, which I think is very good. In fact, I think one of
    the problems that we have tried to address is retiree health
    care, which I think has faced many problems because of fewer
    hospitals on bases because of base closings. That is one of the
    offshoots of base closings that I think is not quite
    anticipated, so we try to deal with it.
        Let me ask you, as you plan for the Fort Hood project and
    the other projects, are you factoring in the future
    requirements based on anticipated requirements based on the new
    TRICARE for Retirees that was enacted last year? Are you
    putting that in your budgets?
        General Randolph. That is a great question and the answer
    to it is a very simple yes. There is a great deal of effort
    going forward, particularly as we approach the October 1 start
    of TRICARE for Life, into exactly how that will happen at each
    and every base, particularly when I think about the TRICARE
    Plus portion of TRICARE for Life. So to be frank, as we look at
    the facilities for instance at Dyess, we were not looking so
    much at how we would look at a particular part of the
    population there; we were looking at the fact that the dental
    clinic there is literally falling apart. It is wood. Patients
    are in the middle of the aisles. It is a life safety issue and
    a fire safety issue. So those were the things that drove the
    decision there, as well as the life skills building, which is
    about a 1958 building as I recall. So that is what drove the
    one there.
        The thing that drove the Fort Hood discussion had more to
    do with the graduate medical education and emergency medicine
    facilities than it did in TRICARE for Life. We had a situation
    there where that entire program is occurring in an ambulance
    garage, as some might think is appropriate. It is emergency
    service, so you take care of things in the ambulance garage.
        That is not the case. It is substandard, has been
    substandard for many, many years, and we intend to fix that. So
    those were the decisions that affected those two particular
    projects. But in an overall statement, I can tell you that the
    TRICARE for life requirements are part of our every hour
    thinking about the things that we are doing, construction-wise
    right on through care-giving.
        Senator Hutchison. I would just say that I hope we can do
    more on our bases that would give our retirees the kind of care
    that they really prefer, which is really military health care
    as opposed to outside facilities. So I hope as we are looking
    at the building in the future and the service to our retirees
    in the future, as well as our active duty, that keeping things
    on base is one of the priorities.
        General Randolph. Let me assure you that we are in fact
    looking at that. I mentioned TRICARE Plus. That is in fact a
    facility-based program and it was put in place primarily to
    drive those that are in the TRICARE Senior Prime
    demonstrations, for instance. Those people have developed
    significant relationships within the facilities already, as you
    just described. That program was specifically put in place to
    help transition those patients to the facility rather than out.
    It will certainly affect also our construction plans.
        Senator Hutchison. Thank you very much.
        Mr. Molino, I was very pleased to see in the President's
    budget and what we are looking at a hefty increase in the
    schools and education part of the Department of Defense budget.
    In the past it has seemed like the schools have been an
    afterthought and the Department of Defense has not considered
    it a priority that goes along with our other must-fund projects
    or new missions or old missions.
        So I just wanted to ask you if you were now of the mind
    that this is going to be a new paradigm, that it will
    permanently become as high a priority that we have schools
    built where our children are going to be as an integral part of
    any base for any service that we are asking our people to take
    when we are responsible for educating children as part of the
    overall provision for the people who serve in our armed
    services.
        Mr. Molino. Senator Hutchison, I have been in this
    position--I was appointed 6 weeks ago, so my part in the
    formulation of this budget was minimal at best. I recently
    learned about my requirement to testify at this hearing, so I
    was also relieved to see the robust funding when I heard that I
    had to come and defend it.
        Senator Hutchison. Well, let me say that I am sorry that
    you have not been to some of the schools that I have visited,
    because you would respond with a lot more vigor.
        Mr. Molino. Oh, no, ma'am. I can appreciate that.
        Senator Hutchison. You will after you visit, I am sure you
    will.
        Mr. Molino. I have been given every indication that this is
    indeed the new paradigm for this administration, that DOD
    schools will be given the attention they so much deserve.
        Senator Hutchison. Thank you. It is our responsibility.
        Mr. Molino. Yes, ma'am.
        Senator Feinstein. Senator Craig.

                      Statement of Senator Larry E. Craig

        Senator Craig. Madam Chairman, thank you very much, and I
    apologize for being in and out. I am still going to be in and
    out, so let me ask unanimous consent that my opening statement
    be a part of the record.
        Senator Feinstein. So ordered.
        Senator Craig. I thank all of you very much for being here
    today. I will say I have geared my comments and my questions to
    the folks who have just left, so you can see my scheduling is
    not so good today.
        I will say, though, Madam Chairman, to the folks from the
    Office of the Secretary, while I was extremely pleased to see
    the military family housing dollars up, I am very frustrated by
    the 80 percent tied to privatization. Some of us do not qualify
    for that and money that we had in last year's budget for
    Mountain Home Air Force Base and we are beginning to improve
    the housing there all of a sudden disappears under this new
    formula. So we will have to discuss that with you at some
    length, and I will ask--I will be calling our Deputy Under
    Secretary and the Under Secretary to visit with me about that
    and with others, because not all of us meet those
    qualifications and yet housing needs are every bit as critical
    on those bases. I did want to say that for the record because
    it is a problem that we were beginning to remedy and now, of
    course, it is back to be remedied once again.

                               Prepared Statement

        But I must tell you that these dollars and cents and what
    we are trying to do--I had the privilege of meeting with the
    Secretary of Defense last week--are important. I support you in
    this effort and will work to resolve any of the problems that
    we might have.
        Thank you, Madam Chairman. Thank you.
        [The statement follows:]

                  Prepared Statement of Senator Larry E. Craig

        Mr Chairman, it is indeed a pleasure to be here with the Hon. Dov
    S. Zakheim, Under Secretary of Defense (comptroller), Mr. Raymond F.
    DuBois, Jr., Deputy Under Secretary of Defense (installations and
    environment), Mr. John Molino, Deputy Assistant Secretary of Defense
    (military community and family policy), Dr. Patricia Sanders, ballistic
    missile defense organization (BMDO), Major General Randolph of the
    Office of the Asst. Sec. of Defense (health affairs), Lt. Gen. William
    Tangney, Deputy Commander and Chief, U.S. Special Operations Command,
    Mr. Paul W. Johnson, Deputy Asst. Sec. of the Army (installation and
    housing), Major General Robert L. Van Antwerp, Jr., Asst. Chief of
    Staff for Installation Management, Department of the Army, Major
    General Paul Bergson, Military Deputy (reserve components), Deputy
    Under Secretary of the Army for international affairs, U.S. Army
    reserve, Bgen. Michael J. Squier, Deputy Director, Army National Guard,
    Department of the Army.
        I'm glad to see that the fiscal year 2002 DOD amended budget puts
    people first by including strong measures to improve morale,
    recruiting, and retention. A key element of that commitment is to
    upgrade DOD's aging infrastructure. As we are all aware, the
    infrastructure of our nations military installations has deteriorated
    to the point of concern for our military's operational readiness. It is
    important that we reverse the trend of infrastructure deterioration and
    work hard to provide a quality work environment that improves a service
    members efficiency and effectiveness, eliminates impediments to mission
    accomplishment, and fosters recruitment and retention.
        But, it's not just the work environment which is essential to
    retention and readiness. I also believe that ``for while we recruit
    individuals, we retain families''. I was very pleased to see that the
    president's amended budget includes $4.1 billion for military family
    housing (MFH)--up from $3.6 billion in fiscal year 2001. It intensifies
    efforts to improve the quality of military housing and accelerate
    elimination of substandard housing.
        In addition to this, the budget includes the president's $400
    million blueprint initiative to improve housing for military people and
    their families: $107 million in military construction for barracks and
    $293 million for family housing. Implementation of the initiative
    emphasizes privatization in order to deliver better housing more
    quickly. I understand that recent OSD policy dictated that 80 percent
    of these funds be used for privatization.
        But, not all installations qualify for MFH privatization, and quite
    often it is at these installations that there is no acceptable
    alternative housing in the local area for lower ranking enlisted
    personnel. This places a tremendous burden on military members and
    there families, especially enlisted personnel who have very limited
    resources. For example, at mountain home AFB, ID it was determined that
    privatization was not economically feasible. The majority of housing on
    base is substandard. The housing in the community of mountain home is
    limited. The only other alternative is to commute to Boise, ID which is
    almost two hours away. The services have put together master plans that
    prioritize MFH by putting the worst housing first. This is a balanced
    approach that treats conventional and privatized MFH equally. In making
    policy decisions on MFH, we must ensure that the worst gets taken care
    of first and not simply give projects priority that get more housing
    for less money.
        The good news is that the military construction budget includes a
    total of $5.9 billion for--up from $5.3 billion in fiscal year 2001. It
    was especially important that this includes funding increases for the
    national guard and reserve in recognition of the vital role the reserve
    component plays in the U.S. Defense posture.
        The budget also put a priority on the construction or renovation of
    barracks, medical treatment facilities, schools, and physical fitness
    centers. Unfortunately, because of the reduced support facility
    requirements of the national guard and reserve installations, they
    don't necessarily benefit from these kinds of quality of life
    initiatives. I recommend that in future prioritization, that greater
    emphasis be given to the fact that for the guard and reserve a quality
    workplace improves their quality of life.
        I applaud the DOD's efforts to increased funding in order to meet
    current needs and beginning a long-range plan to streamline,
    restructure, and upgrade DOD facilities. I understand that the
    administration hopes the ``efficient facilities initiative (EIF)'' will
    achieve a 25 percent reduction in DOD facilities, and ultimately save
    $3.5 billion annually. As a member of Congress, I look forward to
    reviewing the proposed ``efficient facilities initiative (EIF)'' and
    providing imput.
        I am grateful that the proposed increase in the military
    construction fiscal year 2002 budget demonstrates a commitment to our
    nations military members and their families. I look forward to your
    testimony as we develop a budget that recognizes the immeasurable
    contributions our military members have made to this great country.
        As a fiscal conservative, I believe it's critical to have a
    balanced federal budget. In the long run, a balanced budget will serve
    all americans, including our military. But, I also know that along with
    this commitment to a balanced budget, comes the responsibility to
    ensure our government provides a quality work and living environment
    for our military members and their families.
        In closing, Mr. Chairman, there is no way to over emphasize the
    honor and respect this nation owes the military men and women who
    sacrifice so much. I look forward to working with the office of the
    Secretary of Defense (OSD) and service chiefs who continue to
    contribute to the long-range vision for the DOD.

        Senator Feinstein. Thank you, Senator.
        That completes my questions. Thank you, gentlemen. Thank
    you, Dr. Sanders, very much. Now we will move on to the next
    panel.
                             Department of the Army

    STATEMENT OF PAUL W. JOHNSON, DEPUTY ASSISTANT
                SECRETARY OF THE ARMY FOR INSTALLATION AND
                HOUSING
    ACCOMPANIED BY:
            MAJOR GENERAL ROBERT L. VAN ANTWERP, JR., ASSISTANT CHIEF OF
                STAFF FOR INSTALLATION MANAGEMENT
            BRIGADIER GENERAL MICHAEL J. SQUIER, DEPUTY DIRECTOR, ARMY
                NATIONAL GUARD
            MAJOR GENERAL PAUL C. BERGSON, MILITARY DEPUTY [RESERVE
                COMPONENTS], DEPUTY UNDER SECRETARY OF THE ARMY FOR
                INTERNATIONAL AFFAIRS, U.S. ARMY RESERVE
        Senator Feinstein. We are very pleased to welcome the
    United States Army to this hearing, particularly Mr. Paul
    Johnson, the Deputy Assistant Secretary of the Army for
    Installations and Housing; Major General Van Antwerp, Assistant
    Chief of Staff for Installation Management; Brigadier General
    Michael Squier, Army National Guard; and Major General Paul
    Bergson of the Army Reserve. So all of you, welcome.
        Before we begin, I would like to congratulate and thank
    Secretary Johnson in particular. You are going to be retiring
    at the end of the week following 52 years of service to the
    government. That is indeed a long time and your career indeed
    has been distinguished. This committee sees you as an excellent
    example of dedication and your support of service members
    worldwide is well known. We want you to know that your service
    to this committee is greatly appreciated and that your
    experience and expertise is going to be very, very missed. So
    we thank you on behalf of the entire committee and we wish you
    all the best in a very well-deserved retirement. Mr. Secretary,
    good luck.

                          Statement of Paul W. Johnson

        Mr. Johnson. Thank you, Madam Chair.
        Senator Feinstein. Oh, you are very welcome.
        Now, following the same protocol because of the limited
    time, all of your statements will go into the record and I
    would ask you to summarize, beginning with General Bergson.
        General Bergson. We will start with Mr. Johnson. Civilian
    control of the military, ma'am.
        Mr. Johnson. I am pleased to be here this afternoon with
    Generals Van Antwerp, Squier, and Bergson.
        I am pleased to report that the Army budget request for the
    active and reserve components provides a substantial increase
    in construction and family housing resources essential to
    support our soldiers and families and civilians. The commitment
    of our leadership to improving installation and facilities is
    reflected in this $3.7 billion submission, about a billion
    dollar increase over fiscal year 2001.
        We are making great progress in our permanent party
    barracks and strategic mobility program. In family housing, we
    continue to mix privatization and construction. We have gone
    through some tough growing pains in housing privatization, but
    I believe we are now ready to institutionalize the process and
    move on out on execution. Fort Carson has shown that this
    concept is a good deal for soldiers and their families. Our
    transformation will affect the facilities on our installations
    and this is reflected in initiatives in our budget at Fort
    Lewis. For the reserve components it focuses on maintenance
    facilities and reserve centers.

                               Prepared Statement

        As you mentioned, this is my last appearance before this
    committee. I have had about 1,200 hearings over the last 50
    years. I attribute our progress basically to the help of this
    committee and your staff, who have been just absolutely
    fabulous, and I know that you will always look after our
    soldiers and our families.
        Thank you.
        [The statement follows:]

                     Prepared Statement of Paul W. Johnson

        Mr. Chairman and members of the subcommittee, it is a pleasure to
    appear before you to discuss the Army's Active and Reserve Components'
    military construction requests for fiscal year 2002. These requests
    include important initiatives to improve the infrastructure of
    America's Army. Any dollar amounts beyond fiscal year 2002 discussed
    herein are, of course, dependent upon the results of the Secretary of
    Defense's Strategic Review, and should be considered in that light.
        This budget provides a substantial increase in construction and
    family housing resources essential to support the Army's role in our
    National Military Strategy. It supports the Army's Vision and
    Transformation strategy. Our budget includes the increased funding
    necessary to improve our installations: infrastructure in keeping with
    our leadership's commitment to having world class installations.
        The program presented herein requests fiscal year 2002
    appropriations and authorizations of appropriations of $1,760,541,000
    for Military Construction, Army (MCA); $1,400,533,000 for Army Family
    Housing (AFH--in two separate accounts); $267,389,000 for Military
    Construction, Army National Guard (MCNG); $111,404,000 for Military
    Construction, Army Reserve (MCAR) and $10,119,000 for the Homeowners
    Assistance Fund, Defense.
        The Army is and must remain the most respected Army in the world.
    Our commitment to meeting the challenges requires a comprehensive
    transformation of the Army and the Army's installations.
        Army Transformation represents a move to forge a more strategically
    responsive, yet dominant, force for the 21st Century. The new force
    will be more mobile and sustainable, and able to respond to the full
    spectrum of operations. Transformation also includes a rigorous
    training program, full integration of the Active and Reserve
    Components, comprehensive initiatives to protect the force, and
    provides first class installations from which to project our forces. A
    fully-funded Transformation will keep the Army capable and ready until
    it has achieved an Objective Force that is more responsive, deployable,
    versatile, agile, lethal, survivable and sustainable. We are working
    closely with the Transformation Task Force to ensure installation needs
    are identified and addressed.
        The Army must sustain a force of high quality, well-trained people;
    acquire and maintain the right mix of weapons and equipment; and
    maintain effective infrastructure and power projection platforms to
    generate the capabilities necessary to meet our missions. Taking care
    of soldiers and families is a readiness issue and will ensure that a
    trained and qualified soldier and civilian force will be in place to
    support the Objective Force and the transformed Army.
        As the Army transforms, we must ensure that Army installations are
    transformed to meet the needs of the force. Army installations and
    reserve component facilities must fully support our war fighting needs,
    while providing soldiers and their families with a quality of life that
    equals that of their peers in civilian communities.
                              facilities strategy
        The Army's facilities strategy is the centerpiece of our efforts to
    fix the deplorable current state of Army facilities. It addresses our
    long-term need to sustain and modernize Army-funded facilities in both
    Active and Reserve Components by framing our requirements for both
    sustainment, restoration and modernization (SRM) and military
    construction (MILCON) funding. Sustainment, restoration, and
    modernization (SRM) has replaced the term, ``real property
    maintenance'' (RPM). SRM includes funds for annual maintenance and
    scheduled repair--sustainment; and military construction funding to
    repair or replace facilities damaged due to failures attributable to
    inadequate sustainment or emergencies or to implement new or higher
    standards--restoration and modernization.
        The first pillar of the Strategy requires us to halt further
    deterioration of our facilities. Our programmed sustainment funding,
    which comes from the SRM accounts has greatly improved. This level of
    funding may be sufficient to prevent further deterioration of Army
    facilities. We are funded at 94 percent of our requirements in fiscal
    year 2002. Our current C-3 conditions are a result of years of
    underfunding and migration of funds from the SRM accounts. We must have
    sufficient SRM resources to sustain our facilities and prevent
    facilities from deteriorating further, or we put our MILCON investments
    at risk.
        The second pillar of the Strategy is to tackle the enormous backlog
    that has grown over numerous years of underfunding. Since we can't
    afford a quick fix to the $17.8 billion SRM backlog, and a significant
    deficit for construction of Army-funded facilities, we will focus
    centrally managed resources towards a critical set of facility types.
    This modernization requirement will primarily require MILCON funding
    supplemented by SRM project funding. Our goal is to raise Army
    facilities from current C-3 ratings to C-2 in the long term by bringing
    our focused set of facilities to C-1 in 10-year increments. Our first
    10-year increment includes ARNG Readiness Centers, Army Reserve
    Centers, fitness facilities, basic training barracks, general
    instruction facilities, and tactical vehicle maintenance shops and
    supporting hardstands at a cost of approximately $10 billion. There are
    a number of MILCON projects in the fiscal year 2002 budget that support
    this first increment.
        We have based the Army Facility Strategy on Commanders' ratings of
    our facilities in our Installation Status Report. The facilities we
    have chosen to modernize under this centrally managed program are
    critical to the Army's mission and to our soldiers. It is essential
    that both the sustainment (SRM) and the modernization (MILCON and SRM)
    pieces are funded as a single, integrated program. Only then will we be
    able to improve the health of Army real property and its ability to
    successfully support our worldwide missions and our soldiers.
        In addition to implementing our facilities strategy, we continue to
    eliminate excess facilities throughout the entire Army. During fiscal
    years 1988-2003, our facilities reduction program, along with the base
    realignment and closure process, will result in disposal of over 200
    million square feet in the United States. We continue our policy of
    demolishing at least one square foot for every square foot constructed.
    By 2003, with our overseas reductions included, the Army will have
    disposed of over 400 million square feet from its fiscal year 1990 peak
    of 1,157,700,000 square feet.
        Additionally, we are pursuing innovative ways to modernize our
    infrastructure and reduce the cost of our facilities. One example is
    installation utilities systems. Our goal is to privatize all utility
    systems in CONUS by 2003, where it is economically feasible, except
    those needed for unique security reasons. We are expanding the
    privatization of military family housing, in an effort to provide
    quality residential communities for soldiers and their families.
        Executive Order 13123, ``Greening The Government Through Efficient
    Energy Management,'' sets higher goals for reducing energy consumption.
    As of June 30, 2001, the Army had awarded 74 task orders on Energy
    Savings Performance Contracts (ESPCs), with a total private sector
    investment of $328 million and an anticipated annual energy savings in
    excess of two million MBtu's (the equivalent to 16 million gallons of
    oil). We are also pursuing opportunities to purchase electrical power
    generated from renewable sources such as wind, solar and geothermal. We
    have installed hundreds of solar lighting systems that use no energy in
    our facilities.
        Next, I will discuss our budget.
                       military construction, army (mca)
        The MCA program focuses on six major categories of projects:
    mission facilities, operations facilities, transformation, well being,
    installation support, and chemical demilitarization. I will explain
    each area in turn.
                               mission facilities
        In fiscal year 2002, there are 36 mission facility projects to
    ensure the Army is deployable, trained, and ready to respond to meet
    its national security mission. The projects continue the Army's
    Strategic Mobility Program (ASMP) to ensure deployment within specified
    timelines, provide enhanced training via live fire ranges and
    simulators, and maintain equipment readiness by ensuring Army vehicles
    are repaired and operational.
        Army Strategic Mobility Program.--The 15 mobility projects in our
    budget facilitate movement of personnel and equipment from CONUS bases
    for both the Active and Reserve components to meet Army and Defense
    timelines for mobilization operations. They are part of an important
    program to upgrade our strategic mobility infrastructure, enabling the
    Army to maintain the best possible power projection platforms. We are
    requesting $128.75 million. The fiscal year 2002 projects will complete
    93 percent of the Strategic Mobility program. Although the Strategic
    Mobility Program is scheduled for completion in fiscal year 2003, it is
    anticipated that there may be a follow-on phase as a result of changes
    in force structure and stationing.
        These include 11 projects totaling $94.9 million to improve our
    rail and air deployment capability by expanding an aircraft hardstand
    at Fort Campbell, extending a runway at Fort Benning, and providing air
    and rail passenger and materiel staging complexes at Fort Benning, Fort
    Campbell, Fort Sill, Fort Lewis and Sunny Point Military Ocean
    Terminal. To improve our port capability, we are upgrading a pier to
    support the mission of the 7th Transportation Group at Fort Eustis. Two
    projects at Sunny Point Military Ocean Terminal will improve the
    outloading of ammunition by constructing a canopy over the storage
    area, widening the road and constructing truck pads for safe transport
    and outloading of cargo and ammunition. An assembly building is
    programmed to support deployment at Fort Wainwright.
        Training.--To improve soldier training, we are requesting phase II
    to complete the Digital Multi-purpose Training Range at Fort Hood. This
    project was fully authorized by Congress in fiscal year 2001. Our
    request includes a Record Fire Range and Night Fire Range at Fort
    Leonard Wood and a Modified Record Fire Range at Fort Riley. These
    ranges will provide our soldiers with M16 rifle qualification and
    training and also will provide for the integration of the Next
    Generation Targetry System for single and multiple targets. General
    Instruction Buildings are included in our program for Camp Jackson,
    Korea and Fort Sam Houston. These buildings will enable the Army to
    provide much needed classrooms for training of our soldiers. We are
    also requesting phase II of the Battle Simulation Center at Fort Drum
    that was also authorized in fiscal year 2001. A Comanche simulator
    training facility at Fort Rucker to train pilots on the Army's new
    helicopter is also requested. An Airborne Training Facility at Fort Lee
    will support training for our Enlisted Parachute Rigger and Aerial
    Delivery and Material Officers courses.
        Readiness.--We are requesting 9 projects that will provide vehicle
    maintenance facilities and tactical equipment shops to ensure unit
    equipment readiness: Baumholder, Mannheim, Fort Stewart, Fort Drum,
    Camp Casey, Fort Bragg, Fort Gordon, and two projects at Fort Hood, a
    vehicle maintenance facility and a tactical equipment shop. The request
    also includes two projects at Anniston Army Depot: a project to improve
    the safety conditions in the main combat vehicle disassembly and
    rebuild facility and a repair and demilitarization of combat armor. An
    Ammunition Surveillance Facility at Aberdeen Proving Ground is
    requested to maintain control and accountability of foreign munitions.
                             operations facilities
        The fiscal year 2002 budget request includes command and control
    facilities, laboratories, operations facilities, and a physical
    development center which began construction in fiscal year 1999.
        Two Command and Control Facilities are in the request for Pohakuloa
    Training Area, Hawaii, and Phase 2 of the Command and Control facility
    at Fort Hood where we are completing a project that began in fiscal
    year 2001. Three laboratory projects include a Criminal Investigation
    Forensic Laboratory at Fort Gillem which will provide forensic support
    and expert testimony in judicial cases for all DOD investigative
    agencies; a Chemistry Laboratory at Edgewood (Aberdeen Proving Ground--
    APG) for life cycle chemical agent research, development, and
    evaluation; and a Climatic Test Facility at APG to provide controlled
    temperature and humidity test environment for critical weapons testing.
        We are requesting a Military Entrance Processing Facility at Fort
    Lee for processing applicants from 77 counties in the State of Virginia
    and reducing the high cost of leased facilities. This project has a
    payback period of less than three years.
        Field Operations Facilities at Fort Drum and Fort Eustis will
    provide criminal investigative support for the Army. The budget request
    also includes a Shipping Operations Building at Pearl Harbor; a
    Readiness and Operations Facility at Fort Polk; an Explosive Ordinance
    Detachment Operations Building at Fort Gillem; an Operations Facility
    at the Humphreys Engineer Center for the Information Security Command;
    and a Parachute Team General Purpose Building at Fort Bragg. This
    request also includes Phase 3 for the United States Military Academy
    Cadet Physical Development Center, which was fully authorized in fiscal
    year 1999.
                                 transformation
        Our budget contains five projects at Fort Lewis that support the
    deployment, training and equipment maintenance of the new transformed
    force. These projects include two maintenance facilities for new
    vehicles, an expanded ammunition supply storage facility to support
    training and deployment of the increased force, a combat vehicle trail
    and a pallet handling facility to support the logistic deployment of
    equipment and supplies. As new transformation installations are
    identified, we will continue to identify and validate additional
    requirements associated with transformation and will include these
    projects in future budgets.
                              well being projects
        The well being of our soldiers, their families and civilians has a
    significant impact on readiness. Therefore, 40 percent of our MCA
    budget is dedicated to providing these types of facilities. Although
    our first priority is to get soldiers out of gang-latrine type
    barracks, we are also requesting two basic combat trainee barracks,
    child development centers, physical fitness training centers, a dining
    facility, two education centers, a Soldier Service center, and a
    chapel. These projects will improve not only the well being of our
    soldiers and families, but also the readiness of the Army. We are
    requesting appropriations and authorization of appropriations of $701.2
    million for well being projects this year.
        Barracks Modernization Program.--Modernization of barracks for
    enlisted permanent party soldiers continues to be the Army's number one
    facilities priority for military construction. It provides single
    soldiers with a quality living environment that approximates conditions
    off the installation, or enjoyed by our married soldiers. New or
    renovated barracks provide increased personal privacy and larger rooms,
    closets, new furnishings, adequate parking, and landscaping. In
    addition, administrative offices are separated from the barracks. With
    the approval of our budget, as requested, 73 percent of our barracks
    requirement will be funded at the new standard for our permanent party
    soldiers. Our plan is to invest an additional $4.2 billion in MCA and
    host nation funds between fiscal years 2003 and 2008, supplemented by
    $0.6 billion in sustainment, restoration and modernization (SRM) to fix
    barracks worldwide to meet our goal of providing improved living
    conditions for all of our single soldiers by fiscal year 2008. While we
    are making considerable progress at installations in the United States,
    we will request increased funding for Germany and Korea in future
    budgets to compensate for these areas being funded at lower levels than
    the CONUS installations. A large portion of the remaining modernization
    effort, 44 percent, is in these overseas areas.
        In fiscal year 2002, we are planning 20 barracks projects. This
    includes 6 projects in Europe and 3 projects in Korea. Our budget
    completes the Schofield Barracks and Fort Bragg barracks complexes that
    were authorized in fiscal year 2000 and incrementally funded in fiscal
    year 2000 and fiscal year 2001. Fort Bragg's large soldier population
    and poor barracks conditions require sustained high investment through
    fiscal year 2008 to provide quality housing. We are continuing with the
    second phase of two additional barracks complexes at Fort Bragg that
    were authorized in fiscal year 2001. At Fort Richardson, Fort Lewis,
    and Fort Carson, we are requesting authorization for all phases of the
    barracks complex which extends over several fiscal years; however, we
    are only requesting the funding needed for the fiscal year 2002 phase.
    Our plan is to award each complex, subject to subsequent
    appropriations, as a single contract to gain cost efficiencies,
    expedite construction, and provide uniformity in building systems.
        Basic Combat Training Complexes.--We have included Phase 2 to
    complete the basic combat training complex at Fort Leonard Wood that
    was authorized and begun in fiscal year 2001. This project provides a
    modern, initial entry basic training complex that includes separate and
    secure housing to support gender-integrated training, and provides for
    the administrative and training functions that are organic to the
    mission of the basic training battalion. We also are requesting full
    authorization for a basic combat training complex at Fort Jackson.
    However, we are only requesting the funding necessary to execute the
    first phase in fiscal year 2002.
        Community Facilities.--Our budget request includes three new child
    development centers to replace failing or inadequate facilities in
    Wiesbaden, Fort Riley, and Fort Meade. To improve soldier physical
    fitness and community wellness, our budget includes physical fitness
    training centers at Camp Carroll, Bamberg, Wiesbaden, and Fort McNair.
    A new dining facility to provide for the soldiers at Redstone Arsenal,
    two education centers at Fort Polk and Fort Stewart, and a Soldier
    Service Center also at Fort Stewart are included in our request. With
    this budget request we will implement the Chapel of the Year program
    with a chapel at Fort Belvoir to improve the quality and availability
    of religious facilities for the well being of our soldiers and their
    families.
                         installation support programs
        This category of construction projects provides vital support to
    installations and helps improve their readiness capabilities. We have
    requested nine projects with an appropriations and authorization of
    appropriations request of $79.3 million.
        Projects in the budget request include a Cold Storage Warehouse at
    Kwajalein Atoll; an Effluent Reuse System at Fort Huachuca; a Power
    Plant Cooling Tower at Fort Wainwright; a Sanitary Sewer system at Camp
    Hovey; Electrical Distribution system at Camp Carroll; an Electrical
    Substation at Fort Campbell; a Hazardous Materials Storage facility at
    Fort Drum; an Information Systems Facility at Fort Gordon; and a Fire
    Station at Sunny Point Military Ocean Terminal.
        A classified project is also included in our budget request.
                          ammunition demilitarization
        The Ammunition Demilitarization (Chemical Demilitarization) Program
    is designed to destroy the U.S. inventory of lethal chemical agents,
    munitions, and related (non-stock-piled) materiel. It also provides for
    emergency response capabilities, while avoiding future risks and costs
    associated with the continued storage of chemical warfare materiel.
        The Office of the Secretary of Defense devolved the Chemical
    Demilitarization program to the Department of the Army in fiscal year
    1999. Although Congress has consistently authorized and appropriated
    funding for the Chemical Demilitarization construction program to the
    Department of Defense, the overall responsibility for the program
    remains with the Army and we have included it in this year's Army
    budget.
        We are requesting appropriations and authorization of
    appropriations for $172.5 million in the Army's fiscal year 2002 budget
    to continue the Chemical Demilitarization projects previously
    authorized. Table 1 summarizes our request:

                                               TABLE 1.--FISCAL YEAR 2002
    ----------------------------------------------------------------------------------------------------------------
                      Installation                                         Type                           Amount
    ----------------------------------------------------------------------------------------------------------------
    Aberdeen Proving Ground, MD....................  Ammun Demil Facility, Ph III...................     $66,500,000
    Blue Grass Army Depot, KY......................  Ammun Demil Facility, Ph II....................       3,000,000
    Newport Army Depot, IN.........................  Ammun Demil Facility, Ph IV....................      66,000,000
    Pine Bluff Army Depot, AR......................  Ammun Demil Facility, Ph VI....................      26,000,000
    Pueblo Army Depot, CO..........................  Ammun Demil Facility, Ph III...................      11,000,000
                                                                                                     ---------------
          Total....................................  ...............................................     172,500,000
    ----------------------------------------------------------------------------------------------------------------

        The destruction of the U.S. stockpile of chemical weapons by the
    2007 deadline in the Chemical Weapons Convention is a major priority of
    the Army, DOD and the Administration. The MILCON funding for the
    chemical weapons destruction facilities is essential to achieving that
    goal.
                              planning and design
        The fiscal year 2002 MCA budget includes $134.098 million for
    planning and design. The fiscal year 2002 request is a function of the
    construction programs for three fiscal years: 2002, 2003, and 2004. The
    requested amount will be used to design-build a portion of the fiscal
    year 2002 program, complete design in fiscal year 2003, and initiate
    design of fiscal year 2004 projects.
        Host Nation Support (HNS) Planning and Design (P&D): The Army, as
    Executive Agent, provides HNS P&D for oversight of Host Nation funded
    design and construction projects. The U.S. Army Corps of Engineers
    oversees the design and construction to ensure the facilities meet our
    requirements and standards. Lack of oversight may result in an increase
    in design errors and construction deficiencies that will require United
    States dollars to rectify. Maintaining the funding level for this
    mission results in a payback where $1 of United States funding gains
    $60 worth of Host Nation Construction. The fiscal year 2002 budget
    request for $23.1 million will provide oversight for approximately $850
    million of construction in Japan, $50 million in Korea, and $50 million
    in Europe.
                            budget request analysis
        Summary.--The fiscal year 2002 MCA budget includes a request for
    appropriations and authorization of appropriations of $1,760,541,000.
        Authorization Request.--Request for authorization is
    $1,558,673,000. The authorization request is adjusted for those
    projects previously authorized in prior fiscal years. These projects
    include the chemical demilitarization projects, Phase 3 of the West
    Point Cadet Physical Development Center, Phase 2 of the Fort Hood
    Digital Multi-purpose Training Range, Phase 2 of the Fort Drum Battle
    Simulation Center, Phase 2 of the Basic Training Complex at Fort
    Leonard Wood, and the phases of the Whole Barracks Renewal Complexes at
    Fort Bragg and Schofield Barracks. Additionally, it is modified to
    provide full authorization of $375 million for the barracks complex at
    Fort Carson, Fort Lewis, Fort Richardson, and Fort Jackson. Only $144
    million in appropriations is required for the first phase of these
    projects. Table 2 displays the projects which are phased over several
    fiscal years.

                                                TABLE 2.--PHASED PROJECTS
                                                [In millions of dollars]
    ----------------------------------------------------------------------------------------------------------------
                                                         Authorization                       Appropriation
                                             -----------------------------------------------------------------------
                    Location                             Fiscal year--                       Fiscal year--
                                             -----------------------------------------------------------------------
                                                1999     2000     2001     2002     1999     2000     2001     2002
    ----------------------------------------------------------------------------------------------------------------
    Cadet Physical Dev Ctr..................     85.0  .......  .......  .......     12.0     14.0     13.6     37.9
    Schofield Barracks--Brks................  .......     95.0  .......  .......  .......     25.0     46.4     23.0
    Fort Bragg (Tagaytay Rd)--Brks..........  .......     74.0  .......  .......  .......     16.5     38.6     17.5
    Fort Bragg (Butner Rd)--Brks............  .......  .......    130.0  .......  .......  .......     26.0     49.0
    Fort Bragg (Longstreet Rd)--Brks........  .......  .......     79.6  .......  .......  .......     45.6     27.0
    Fort Carson--Barracks...................  .......  .......  .......     66.0  .......  .......  .......     25.0
    Fort Richardson--Barracks...............  .......  .......  .......     97.0  .......  .......  .......     45.0
    Fort Lewis--Barracks....................  .......  .......  .......    150.0  .......  .......  .......     48.0
    Fort L Wood--Trainee Complex............  .......  .......     61.2      4.4  .......  .......     38.6     27.0
    Fort Jackson--Basic Trainee Cmplx.......  .......  .......  .......     62.0  .......  .......  .......    26.01
    Fort Drum--Battle Sim Ctr...............  .......  .......     18.0      3.0  .......  .......     12.0     9.01
    Fort Hood--Digital Range................  .......  .......     26.0      3.0  .......  .......     16.0    13.01
    ----------------------------------------------------------------------------------------------------------------

                                                1999                                1999
               Chem Demil Projects              and      2000     2001     2002     and      2000     2001     2002
                                               prior                               prior
    ----------------------------------------------------------------------------------------------------------------
    Aberdeen--Ammo Demil Fac................    184.5  .......  .......     37.6     26.5     53.5     45.7    66.51
    Blue Grass--Ammo Demil Fac..............  .......    195.8  .......     47.2  .......  .......  .......      3.0
    Newport--Ammo Demil Fac.................    189.6  .......  .......  .......     11.5     35.9     34.4     66.0
    Pine Bluff--Ammo Demil Fac..............    154.4  .......  .......     23.0     58.0     49.8     43.6     26.0
    Pueblo--Ammo Demil Fac..................    179.0     24.5  .......  .......  .......  .......     10.7     11.0
    ----------------------------------------------------------------------------------------------------------------

        The fiscal year 2002 request for appropriations and authorization
    for fiscal year 2002, by investment focus, is shown in Table 3:

                               TABLE 3.--INVESTMENT FOCUS APPROPRIATIONS, FISCAL YEAR 2002
                                                 [Dollars in thousands]
    ----------------------------------------------------------------------------------------------------------------
                                                                                                          PERCENT
                                CATEGORY                               AUTHORIZATION  APPROPRIATIONS     APPROP'N
    ----------------------------------------------------------------------------------------------------------------
    Well Being......................................................        $793,143        $701,243            39.8
    Mission (Mobilization, Training and Readiness)..................         344,300         360,300            20.5
    Operations and Labs.............................................         173,900         211,800            12.0
    Transformation..................................................          56,200          56,200             3.2
    Installation Support............................................          79,300          79,300             4.5
    Planning and Design/Minor Construction..........................  ..............         175,198            10.0
                                                                     -----------------------------------------------
          Subtotal Army MILCON......................................       1,446,843       1,584,041            90.0
                                                                     ===============================================
    Chemical Demilitarization.......................................         107,830         172,500             9.8
    Classified Project..............................................           4,000           4,000              .2
                                                                     -----------------------------------------------
          Total Program.............................................       1,558,673       1,760,541           100.0
    ----------------------------------------------------------------------------------------------------------------

        Table 4 shows the Fiscal Year 2002 distribution of the
    appropriations request among the Army's major commands:

    TABLE 4.--COMMAND SUMMARY--MILITARY CONSTRUCTION, ARMY, FISCAL YEAR 2002
                             [Dollars in thousands]
    ------------------------------------------------------------------------
                                                                    Percent
                       Command                     Appropriations   of total
    ------------------------------------------------------------------------
    INSIDE THE UNITED STATES:
        Army Materiel Command....................        $248,850       14.1
        Army Test and Evaluation Command.........           9,000         .5
        Criminal Investigations Command..........          32,900        1.9
        Forces Command...........................         630,600       35.8
        Information Security Command.............          36,300        2.1
        Medical Command..........................           2,250         .1
        Military District of Washington..........          22,350        1.3
        Military Entrance Processing Command.....           6,400         .4
        Military Traffic Management Command......          11,400         .6
        Training & Doctrine Command..............         129,850        7.4
        United States Army Recruiting Command....           7,700         .4
        United States Army, Pacific..............         162,100        9.2
        United States Military Academy...........          37,900        2.2
        Classified Project.......................           4,000         .2
                                                  --------------------------
          SUBTOTAL...............................       1,341,600       76.2
                                                  ==========================
    OUTSIDE THE UNITED STATES:
        Eight, United States Army................         109,443        6.2
        Space and Missile Defense Command........          11,000         .6
        United States Army, Europe...............         123,300        7.0
                                                  --------------------------
          SUBTOTAL...............................         243,743       13.8
                                                  ==========================
          TOTAL MAJOR CONSTRUCTION...............       1,585,343       90.0
                                                  ==========================
    WORLDWIDE:
        Planning and Design......................         157,198        8.9
        Minor Construction.......................          18,000        1.0
                                                  --------------------------
          SUBTOTAL...............................         175,198       10.0
                                                  ==========================
          TOTAL APPROPRIATIONS REQUESTED.........       1,760,541      100.0
    ------------------------------------------------------------------------

                              army family housing
        The family housing program provides a major incentive that is
    necessary for recruiting and retaining dedicated individuals to serve
    in the Army. Adequate and affordable housing continues to be a major
    concern to soldiers when asked about their quality of life. We have
    waiting lists at nearly all of our major posts and out-of-pocket
    expenses for soldiers living off post are approximately 15 percent of
    the total cost of their housing. The Army supports the initiative to
    increase the Basic Allowance for Housing (BAH) to eliminate the out-of-
    pocket costs being paid by Service members for off-post housing in the
    United States. Maintaining and sustaining safe, attractive, and
    convenient housing for our soldiers and families is one of our
    continuing challenges. This budget represents an increase in the family
    housing program for additional family housing construction and expanded
    privatization. This increase will assist us in providing improved
    housing quicker and to more of our military families. Our current plan
    ensures we meet the Secretary of Defense's goal of 2010 to provide
    adequate housing to all military families. I would like to thank the
    President for his support and extra funding to improve quality of
    housing for Army personnel and their families.
        Privatization is an essential element in solving our acute family
    housing problem. The Army's privatization program, Residential
    Communities Initiative (RCI), utilizes the authorities granted by the
    Congress in 1996 and extended to December 31, 2004, and includes the
    initial pilot privatization projects at Fort Carson, Colorado; Fort
    Hood, Texas; Fort Lewis, Washington; and Fort Meade, Maryland, plus 24
    additional privatization sites.
        We are especially pleased with the progress being made with our
    first privatization project at Fort Carson. The first new homes were
    occupied by Army families in November 2000. A total of 840 new units
    are being built and the rest (1,823) are being fully renovated. This
    project will provide our soldiers a quantum leap in quantity and
    dramatic improvement in the quality of our on post housing in a short
    period of time.
        For the remaining government owned units in the United States and
    overseas, the Army has programmed sufficient MILCON and Major
    Maintenance and Repair funds to eliminate all inadequate units in
    Europe, Korea and the United States by 2010.
        Our fiscal year 2002 request for appropriations and authorization
    of appropriations request is $1,400,533,000. Table 5 summarizes each of
    the categories of the Army Family Housing program.

                                     TABLE 5.--ARMY FAMILY HOUSING, FISCAL YEAR 2002
                                                 [Dollars in thousands]
    ----------------------------------------------------------------------------------------------------------------
                                                                     Authorization of            Appropriations
                                                                      appropriations      --------------------------
                         Facility category                     ---------------------------
                                                                    Amount       Percent       Amount       Percent
    ----------------------------------------------------------------------------------------------------------------
    New Construction..........................................         $59,200          4         $59,200          4
    Post Acquisition Const....................................         220,750         16         220,750         16
    Planning and Design.......................................          11,592          1          11,592          1
    Operations................................................         178,520         13         178,520         13
    Utilities.................................................         258,790         18         258,790         18
    Maintenance...............................................         446,806         32         446,806         32
    Leasing...................................................         196,956         14         196,956         14
    Privatization.............................................          27,918          2          27,918          2
    Debt......................................................               1         <1               1         <1
                                                               -----------------------------------------------------
          Total...............................................       1,400,533  .........       1,400,533  .........
    ----------------------------------------------------------------------------------------------------------------

                          family housing construction
        The total fiscal year 2002 request for construction is
    $291,542,000. It continues the Whole Neighborhood Revitalization (WNR)
    initiative approved by Congress in fiscal year 1992 and supported
    consistently since that time. This successful approach addresses the
    entire living environment of the military family. The projects are
    based on life-cycle economic analyses and support the Department of
    Defense's 2010 goal by providing units that meet current construction
    and adequacy standards.
        New Construction.--The fiscal year 2002 new construction program
    provides WNR projects that replace 220 units at four locations.
    Replacement construction provides adequate facilities where there is a
    continuing requirement for the housing and it is not economical to
    renovate. Some existing housing, 278 units, will be demolished, in
    order to reduce the housing density. New construction projects are
    requested at Camp Humphreys, Korea, for 54 units, where adequate off
    post family housing is not available and no on post family housing
    exists. These units serve command sponsored personnel living in
    substandard, off post quarters and those personnel who are
    unaccompanied due to a lack of adequate family housing on or off post.
    All of these projects are supported by housing surveys which show that
    adequate and affordable units are not available in the local community.
        Post Acquisition Construction (Renovation).--The Post Acquisition
    Construction Program is an integral part of our housing revitalization
    program. In fiscal year 2002, we are requesting funds for improvements
    to 14,404 existing units at 10 locations in the United States,
    including privatization at 7 installations: 6 locations in Europe, and
    1 site in Korea. Included within the scope of these projects are
    efforts to improve supporting infrastructure, energy conservation and
    elimination of environmental hazards.
                   family housing operations and maintenance
        The operations, utilities, maintenance, and leasing programs
    comprise the majority of the fiscal year 2002 request. The requested
    amount of $1,108,991,000 for fiscal year 2002 is approximately 79
    percent of the total family housing budget. This budget provides for
    the Army's annual expenditures for operations, municipal-type services,
    furnishings, maintenance and repair, utilities, leased family housing,
    and funds supporting the Military Housing Privatization Initiative.
    With current funding, housing units can be kept habitable and open;
    however, their condition will continue to deteriorate.
                             family housing leasing
        The leasing program provides another way of adequately housing our
    military families. We are requesting $196,956,000 in fiscal year 2002
    to fund existing Section 2835 project requirements, temporary domestic
    leases in the United States, and approximately 8,700 units overseas.
               military construction, army national guard (mcng)
        The military construction request, $267,389,000 for the Army
    National Guard, focuses on readiness centers, maintenance support
    shops, and training facilities. These projects are mission focused and
    are centered on the well being of our soldiers.
                               mission facilities
        Fiscal year 2002 contains 26 mission facility projects.
        Readiness Centers.--In support of the Army Facility Strategy, the
    Army National Guard is requesting $56,228,000 million for 11 projects.
    Our fiscal year 2002 budget request is for readiness centers in Iowa,
    Idaho, Mississippi, New Hampshire, Ohio, Tennessee, Alabama and two 60
    year old readiness centers in Louisiana. Also, in support of Army
    National Guard Division Redesign Study (ADRS), we are requesting
    funding for the addition/alteration to readiness centers in California
    and Montana. The California project is particularly significant,
    because it eliminates smaller facilities on land desperately needed by
    the local community in the Los Angeles Basin.
        Maintenance Support Shops.--There are 10 maintenance shops planned
    as part of our revitalization plan: a unit training equipment site in
    Alabama, a maneuver and training equipment site in California and New
    York, a combined support maintenance shop in South Dakota and Michigan
    (Phase II), and 4 organizational maintenance shops located in
    Massachusetts, Maryland, Tennessee and Wisconsin. The majority of these
    facilities were built in the 1950s. Also, as part of the ADRS
    initiative, we have included one organization maintenance shop for
    addition/alteration in Kansas for this fiscal year. Sites in
    California, Indiana, Kansas, Michigan, Montana, and Nebraska were
    selected to begin the conversion process, which started this year.
    These projects are essential for the units to successfully maintain the
    additional heavy equipment they will receive during ADRS Phase I. A
    total of $85,080,000 million is being requested for these Army National
    Guard Maintenance Support Shops.
        Training Facilities.--The Army National Guard is requesting
    $90,264,000 for 5 training facilities: Army aviation facilities in
    Arizona, Maine, New Hampshire, Texas, and Phase II of the military
    education facility in Mississippi. Two illustrations of this need are
    in Texas and New Hampshire. Since Austin, Texas, closed the airport the
    Aviation facility in Texas is spread between 7 temporary facilities.
    New road construction by the city at our New Hampshire aviation
    facility will cut off all access to the runway.
                            budget request analysis
        Summary.--The MCNG budget request includes a request for
    appropriations and authorization of appropriations of $267,389,000 for
    fiscal year 2002. The fiscal year 2002 request for appropriations and
    authorization for fiscal year 2002, by investment focus, is show in
    Table 6

      TABLE 6.--INVESTMENT FOCUS MILITARY CONSTRUCTION ARMY NATIONAL GUARD
                        APPROPRIATIONS, FISCAL YEAR 2002
                             [Dollars in thousands]
    ------------------------------------------------------------------------
                                                                    Percent
               Location             Project title  Appropriations    total
    ------------------------------------------------------------------------
    Major Construction...........        $236,924        $236,924         89
    Unspecified Minor                       4,671           4,671          2
     Construction................
    Planning and Design..........          25,794          25,794          9
                                  ------------------------------------------
          TOTAL..................         267,389         267,389        100
    ------------------------------------------------------------------------

        Table 7 shows fiscal year 2002 distribution of the appropriations
    request among the 54 States and Territories supporting the Army
    National Guard:

                 TABLE 7.--PROJECT SUMMARY, MILITARY CONSTRUCTION ARMY NATIONAL GUARD, FISCAL YEAR 2002
                                                 [Dollars in thousands]
    ----------------------------------------------------------------------------------------------------------------
                                                                                                            Percent
                   Location                                 Project title                  Appropriations   of total
    ----------------------------------------------------------------------------------------------------------------
    Huntsville, AL........................  Unit Training Equip Site.....................          $7,498          3
    Mobile, AL............................  Readiness Center add/alt.....................           5,333          2
    Marana, AZ............................  Aviation Maintenance Hangar..................          14,358          5
    Fort Irwin, CA........................  Maneuver & Training Equip Site...............          21,953          8
    Lancaster, CA.........................  Readiness Center (ADRS)......................           4,530          2
    Gowen Field, ID.......................  Readiness Center PHI.........................           8,117          3
    Estherville, IA.......................  Readiness Center.............................           2,713          1
    Fort Riley, KS........................  Organ Maint Shop (ADRS) add/alt..............             645          -
    Carville, LA..........................  Readiness Center.............................           5,677          2
    Camp Beauregard, LA...................  Readiness Center.............................           5,392          2
    Bangor, ME............................  Army Aviation Support Fac. PHI...............          11,618          4
    Framingham, MA........................  Organizational Maintenance Shop..............           8,347          3
    Salisbury, MD.........................  Organizational Maint Shop add/alt............           2,314          1
    Lansing, MI...........................  Combined Support Maint Shop PHII.............           5,809          2
    Gulfport, MS..........................  Readiness Center.............................           9,145          4
    Camp Shelby, MS.......................  Mil Education Center PHII....................          11,444          4
    Kalispell, MT.........................  Readiness Center add/alt (ADRS)..............             822          -
    Concord, NH...........................  Army Aviation Support Facility...............          27,185         10
    Concord, NH...........................  Readiness Center.............................           1,868          1
    Fort Drum, NY.........................  Maneuver Area Tmg & Equip Shop...............          17,000          6
    Cincinnati, OH........................  Readiness Center.............................           9,780          4
    Mitchell, SD..........................  Combined Support Maint Shop..................          14,228          5
    Alcoa, TN.............................  Readiness Center.............................           8,203          3
    Henderson, TN.........................  Organizational Maint Shop....................           2,012          1
    Austin, TX............................  Army Aviation Support Facility...............          25,659         10
    Oshkosh, WI...........................  Organizational Maintenance Shop..............           5,274          2
    Various...............................  Planning and Design..........................          25,794         10
    Various...............................  Unspecified Minor Construction...............           4,671          2
                                                                                          --------------------------
          Total appropriation and           .............................................         267,389      100.0
           authorization of appropriations
           requested......................
    ----------------------------------------------------------------------------------------------------------------

                   military construction, army reserve (mcar)
        The MCAR program focuses on mission facilities projects. In fiscal
    year 2002, there are nine Army Reserve projects to assist the USAR with
    its mission requirement of providing trained and ready forces to
    support the missions of the United States Army. The USAR's program
    continues to emphasize Readiness, Quality of Life, Modernization, and
    Installation and Base Support.
                               mission facilities
        Fiscal year 2002 contains eight mission facilities projects and one
    land acquisition project.
        United States Army Reserve Centers.--Our fiscal year 2002 USAR
    budget request is for the construction of five U.S. Army Reserve
    Centers in Arizona, Kentucky, Washington, New Hampshire, and American
    Samoa, and one Armed Forces Reserve Center in Colorado. The Reserve
    Centers in American Samoa, New Hampshire, and Kentucky are to replace
    severely overcrowded facilities that were constructed in the 1950s. The
    Army Reserve Center in Tafuna, American Samoa, also represents the sole
    presence of the Department of Defense on the island. The current
    center's utilization rate is 293 percent. This facility will also serve
    as a command and control facility for the local authorities, as well as
    a safe haven for the local populace. The project in Washington also
    includes an Aviation Support Facility needed to maintain the Army
    Reserves' new aviation assets assigned to Fort Lewis. The projects in
    Arizona and Colorado are to improve facilities transferred to the USAR
    as a result of the 1995 Base Realignment and Closure (BRAC). These
    facilities are overcrowded and in need of renovation and new
    construction. A land acquisition project is required in Cleveland, Ohio
    to support future construction of an Army Reserve Center.
        Maintenance Facilities.--There are six Organizational Maintenance
    Shops (OMS) included as part of our construction plan. The OMS in
    American Samoa is required for use by a vehicle repair platoon and an
    engineer detachment, and the OMS in Arizona will support the routine
    maintenance requirements for the units assigned to that Reserve Center.
    Currently, there is no maintenance facility at the Reserve Center in
    Mesa, Arizona. The OMS in New Hampshire and Washington are part of the
    replacement plan for out-dated facilities. The OMS in Texas will
    replace an existing 1958 facility. Also included is an Aviation Support
    Facility at Fort Lewis, Washington. These new maintenance facilities
    will improve the equipment readiness of the units assigned and provide
    a modernized workplace for the mechanics to train.
        Barracks Renovation.--There is a project to renovate the Officer
    Education School barracks at Fort Dix, New Jersey. The current barracks
    were constructed in 1970 and do not currently meet the requirements for
    training soldiers. The renovation of these barracks will provide the
    students an environment that is both safe and conducive to learning.
        The fiscal year 2002 request is for appropriations and
    authorization of appropriations of $111,404 million for Military
    Construction, Army Reserve, as shown on Table 8:

      TABLE 8.--COMMAND SUMMARY, MILITARY CONSTRUCTION ARMY RESERVE, FISCAL
                                    YEAR 2002
                             [Dollars in thousands]
    ------------------------------------------------------------------------
                                                                Percent of
                    Location                  Appropriations       total
    ------------------------------------------------------------------------
    Arizona, Mesa (USARC/OMS)...............         $10,900             9.8
    American Samoa, Tafuna (USARC/OMS)......          19,703            17.7
    Colorado, Fort Carson (USARC)...........           9,394             8.4
    Kentucky, Fort Knox (USARC).............          14,846            13.3
    New Hampshire (USARC/OMS)...............           9,122             8.2
    New Jersey, Fort Dix (OES Barracks                12,000            11.0
     Upgrade)...............................
    Ohio, Cleveland (Land Acquisition)......           1,200             1.1
    Texas, Texarkana (OMS)..................           1,862             1.7
    Washington, Fort Lewis (USARC/OMS/ASF)..          21,978            19.7
                                             -------------------------------
          TOTAL MAJOR CONSTRUCTION..........         101,005            90.7
                                             ===============================
    WORLDWIDE:
        Planning and Design.................           8,024             7.2
        Minor Construction..................           2,375             2.1
                                             -------------------------------
          SUBTOTAL..........................          10,399             9.3
                                             ===============================
          TOTAL AUTHORIZATION OF                     111,404           100.0
           APPROPRIATIONS REQUESTED.........
    ------------------------------------------------------------------------

                      homeowners assistance fund, defense
        The Army is the Executive Agent for the Homeowners Assistance
    Program. This program provides assistance to homeowners by reducing
    their losses incident to the disposal of their homes when the military
    installations at or near where they are serving or employed are ordered
    to be closed or the scope of operations reduced. The fiscal year 2002
    request is for $10.119 million appropriations, along with a companion
    request for authorization and authorization of appropriations for the
    same amount. Fiscal year 2002 will be funded with appropriations,
    carryover, and anticipated authority to transfer monies from the BRAC
    account to the Homeowners Assistance Fund.
        The request will provide assistance to personnel at approximately
    14 locations that have been impacted with either a base closure or a
    realignment of personnel resulting in adverse economic effects on local
    communities. The Homeowners Assistance Program is funded not only from
    the resources being requested in this budget, but is also dependent, in
    large part, on the revenue earned during the fiscal year from the sale
    of properties.
                sustainment, restoration and modernization (srm)
        In addition to Military Construction and Family Housing, the third
    area in the facilities arena is the SRM program. SRM is the primary
    account in base support funding area responsible to maintain the
    infrastructure to achieve a successful readiness posture for the Army's
    fighting force. Installations and Reserve Component facilities are the
    platforms of America's Army and must be properly maintained to be ready
    to support current Army missions and any future deployments.
        SRM consists of two major functional areas: (1) facilities
    sustainment of real property and (2) restoration and modernization.
    Facilities sustainment provides resources for maintenance and repair
    activities necessary to keep an inventory of facilities in good working
    order. It also includes major repairs or replacement of facility
    components, usually accomplished by contract, that are expected to
    occur periodically throughout the life cycle of facilities. Restoration
    and modernization provides resources for improving facilities.
    Restoration includes repair and replacement work to restore facilities
    damaged by inadequate sustainment, excessive age, natural disaster,
    fire, accident or other causes. Modernization includes alteration of
    facilities solely to implement new or higher standards, including
    regulatory changes, to accommodate new functions, or to replace
    building components that typically last more than 50 years, such as
    foundations and structural members.
        Within the SRM program, there are two areas to highlight: (1) our
    Barracks Upgrade Program (BUP) and (2) the Long Range Utilities
    Strategy. At the completion of the fiscal year 2002 program, as
    requested, we will have funded adequate housing to meet or approximate
    the DOD 1+1 barracks standard for 73 percent of our soldiers. The
    fiscal year 2003-2008 Military Construction program will provide
    barracks for another 20 percent of eligible soldiers. We will use SRM
    resources to renovate barracks to an approximate DOD 1+1 standard for
    the remaining 7 percent of barracks residents. The Army is grateful for
    Congressional support for well being programs. We allocated $86 million
    of appropriated Quality of Life Enhancements, Defense (QOLE,D) funds to
    bring more of our permanent party barracks in the United States, Europe
    and Korea to an approximate 1+1 standard and to renovate Advance
    Individual Training (AIT) and Reception barracks in the United States.
    The Army is committing an average of about $120 million per year in SRM
    to continue the efforts to upgrade housing for our single soldiers.
    This substantial funding keeps our barracks program on track to build
    new or renovate all barracks to an approximate 1+1 or equivalent
    standard worldwide by 2008.
        The second area to highlight within the SRM program is our Long
    Range Utilities Strategy to provide reliable and efficient utility
    services at our installations. Privatization or outsourcing of
    utilities is the first part of our strategy. All Army-owned electrical,
    natural gas, water, and wastewater systems are being evaluated to
    determine the feasibility of privatization. When privatization appears
    economical, we use competitive contracting procedures as much as
    possible. We continue to successfully privatize utility systems on Army
    installations. Recent successes include privatization of the electrical
    distribution system at Fort Knox, the gas system at Fort Sill, the
    water system at Fort Lee, and the waste water system at Presidio of
    Monterey. Of the 320 Army systems available for privatization since
    1998, 19 have been privatized, 28 have been exempted, and the remaining
    are in various stages of privatization. The second part of the strategy
    is the utilities modernization program. We are upgrading utility
    systems that are not viable candidates to be privatized, such as
    central heating plants and distribution systems. We have executed
    approximately $177 million in utility modernization projects in fiscal
    years 1998 through 2000 and in future years we plan to accomplish $94
    million in additional projects. Together, privatizing and modernizing
    utility systems will provide reliable and safe systems.
        We are making progress in upgrading barracks and improving utility
    services, and funding for the basic maintenance and repair of Army
    facilities has improved to 94 percent of the OMA, OMNG and OMAR
    requirement in fiscal year 2002. However, we still need to strive
    toward fully funding sustainment to keep facilities from getting worse
    and to protect the large infrastructure investment requested in this
    budget. The Installation Status Report shows Army facilities are rated
    C-3 (not fully mission capable) due to years of under-funding. At the
    end of fiscal year 2000, 26 percent of the Army's facilities were
    ``red''--unsatisfactory; 44 percent were ``amber''--marginal; and only
    30 percent were ``green''--good. The Army National Guard rated 40
    percent red, 54 percent amber and 6 percent green and the Army Reserve
    rated 45 percent red, 27 percent amber, and 28 percent green.
                      base realignment and closure (brac)
        Our facilities strategy strives to meet the needs of today's
    soldiers while also focusing on the changes required to support the
    Army of the 21st century. For BRAC in fiscal year 2002, we are
    requesting appropriations and authorization of appropriations of $164.3
    million. This budget represents the Army's first budget required to
    continue environmental restoration and property management of those
    facilities not yet disposed from the first four rounds of BRAC. In
    fiscal year 2000, the Army saved $911 million and will save $944
    million annually upon completion of these first four rounds of BRAC.
    Although these savings are substantial, we need to achieve even more,
    and bring our infrastructure assets in line with projected needs. We
    must reduce the total cost required to support our facilities and
    manage and maintain our real property inventory. BRAC has significant
    investment costs, but the results bring to the Army modern and
    efficient facilities at the remaining installations. The resulting
    savings are critical to modernization, sustainment, and infrastructure
    improvements.
        The Army is now in the final year of the 13-year process to
    implement the first four rounds (112 closures and 27 realignments). We
    are accelerating all BRAC actions to obtain savings and return assets
    to the private sector as quickly as available resources will allow.
    However, BRAC savings do not come immediately because of the up-front
    costs for implementation and the time it takes to close and dispose of
    property. Environmental costs are significant and are being funded up-
    front to facilitate economic revitalization. The remaining challenges
    that lie ahead are implementing the final round, BRAC 95, ahead of
    schedule; cleaning up contaminated property, disposing of property at
    closed bases; and assisting communities with reuse.
        The fiscal year 2002 budget includes the resources required to
    continue environmental cleanup of BRAC properties. These efforts will
    make 14,321 acres of property available for reuse in fiscal year 2002
    and complete restoration activities at 12 additional locations. This
    budget includes the resources required to support projected reuse in
    the near term and to continue with current projects to protect human
    health and the environment.
        Base Realignment and Closure--Overseas.--Although the extensive
    overseas closures do not receive the same level of public attention as
    those in the United States, they represent the fundamental shift from a
    forward-deployed force to one relying upon overseas presence and power
    projection. Without the need for a Commission, we are reducing the
    number of installations by 70 percent, roughly equal to the troop
    reductions of 70 percent. In Korea, the number of installations is
    dropping 20 percent. The total number of Army overseas sites announced
    for closure or partial closure is 677. Additional announcements will
    occur until the base structure matches the force identified to meet
    U.S. commitments.
        Base Realignment and Closure Program Status.--The Army has
    completed all realignments and closure actions from the BRAC 88, BRAC
    91, BRAC 93, and BRAC 95 rounds. The Army continues with the difficult
    challenges of environmental cleanup and disposal actions to make the
    property available to local communities for economic redevelopment.
    Introduction of economic development conveyances and interim leasing
    has resulted in increased property reuse and jobs creation.
    Negotiations and required environmental restoration continue at the
    closed and realigned installations, and additional conveyances will
    occur in the near future.
        The Army has completed environmental actions at 1,414 of a total of
    1,973 environmental cleanup sites through fiscal year 2000.
    Environmental restoration efforts were complete at 77 installations
    through fiscal year 2000, out of a total of 116 installations. The Army
    remains focused on supporting environmental cleanup actions required to
    support property reuse and will continue to fund environmental cleanup
    actions that are required in support of property transfer and reuse of
    the remaining approximate 255,000 acres.
        Summary.--The BRAC process has proven to be the only viable method
    to identify and dispose of excess facilities. The closing and
    realigning of bases saves money that otherwise would go to unneeded
    overhead and frees up valuable assets for productive reuse. These
    savings permit us to invest properly in the forces and bases we keep to
    ensure their continued effectiveness. We request your support by
    providing the necessary BRAC funding to continue environmental
    restoration and property management in fiscal year 2002.
        We remain committed to promoting economic redevelopment at our BRAC
    installations. We are supporting early reuse of properties through no
    cost economic development conveyances as well as the early transfer of
    properties along with cooperative agreements to accelerate the
    completion of remaining environmental remediation. The Army is also
    making use of interim leasing options made possible by Congress and
    awarding guaranteed fixed price remediation contracts to complete
    environmental cleanup to make properties available earlier. Real
    property assets are being conveyed to local communities, permitting
    them to quickly enter into business arrangements with the private
    sector. Local communities, with the Army's support and encouragement,
    are working to develop business opportunities that result in jobs and
    tax revenues. The successful conversion of former Army installations to
    productive use in the private sector benefits the Army and ultimately
    the local community.
        As noted, we have had much success in base closures, eliminating
    excess infrastructure that drained needed funds from other programs.
    Unfortunately, this has not been sufficient. For this reason, the Army
    supports additional authority to reduce infrastructure.
                            fiscal year 2002 summary
        Mr. Chairman, our fiscal year 2002 budget is a greatly improved
    program that permits us to execute our construction programs; provides
    for the military construction required to improve our readiness
    posture; and provides for family housing leasing, operation and
    maintenance of the non-privatized inventory, and to initiate
    privatization at four additional installations. This request is part of
    the total Army budget request that is strategically balanced to support
    both the readiness of the force and the well being of our personnel.
    Our long-term strategy can only be accomplished through sustained
    balanced funding, divestiture of excess capacity, and improvements in
    management. We will continue to streamline, consolidate, and establish
    community partnerships that generate resources for infrastructure
    improvements and continuance of services.
        The fiscal year 2002 request for the Active Army is for
    appropriations and authorization of appropriations of $3,161,074,000
    for Military Construction, Army and Army Family Housing.
        The request for appropriations and authorization of appropriations
    is $267,389,000 for Military Construction, Army National Guard and
    $111,404,000 million for the Military Construction, Army Reserve.
        For the Homeowners Assistance Fund, Defense, the request is for
    $10,119,000 appropriations and authorization of appropriations.
        Thank you for your continued support for Army facilities funding.

        Senator Feinstein. Thank you very much, Mr. Johnson.
        General Van Antwerp.
        General Van Antwerp. Thank you. Madam Chairman, Senator
    Hutchison, nice to see you. I just want to thank you for your
    passion for facilities and for how they support our soldiers
    and their families, and thank you for all you do.
        These are exciting times in the Army. We have a clear
    vision and focus. It is on the people, it is on readiness, and
    it is on transformation. These three pillars, are supported by
    our facilities and our installations. This budget provides a
    substantial increase, as Mr. Paul Johnson said, over fiscal
    year 2001. MILCON is up over $750 million. This is for the
    total force. Family housing, up $150 million. What we are now
    calling SRM, sustainment restoration and modernization, used to
    be RPM funds, so it is a different terminology that you will
    hear. What this does for us this year, it keeps our barracks on
    track for fiscal year 2008. It gets us at the end of this
    fiscal year 2002 at 73 percent of modernizing our barracks,
    permanent party barracks. It keeps our strategic mobility
    projects on track for a 2003 buyout. They have 15 projects in
    this year's budget, and it gets us to 93 percent of the
    requirement being met in that area.
        It supports transformation at Fort Lewis with $56 million
    to buy projects. It gets the fix on family housing, and we have
    submitted our family housing master plan to Congress. It gets
    us to adequate family housing by 2010 for both CONUS and
    OCONUS. It improves our recapitalization rate to 90 years. It
    is not the 67 years desired metric that DOD has, but it is
    moving in the right direction.
        As you noted in your opening statement, ma'am, it funds
    contingencies for all fiscal year 2002 projects. It initiates
    the next increment of our future facilities strategy and it
    provides $164 million for base realignment and closure,
    basically the environmental cleanup at 35 sites.
        I want to thank you for this opportunity to appear before
    you and I look forward to your questions when that time comes.
        Senator Feinstein. Thanks, General.

                              Army National Guard

        General Squier.
        General Squier. Madam Chair, it is my pleasure to be here
    to represent the Army National Guard from the 50 states, the
    territories, and the District of Columbia. We welcome the
    opportunity to appear before the subcommittee to present the
    Army National Guard's construction program for fiscal year
    2002, which really is an Army story and we are very pleased
    with the budget request this year of $267.4 million.
        The readiness of the Army National Guard, as General Van
    Antwerp has mentioned, is a primary focus of the Army. Our
    facilities provide for our ability to do training and readiness
    to meet our operational requirements. As you are well aware,
    the Army is increasing use of reserve components on a regular
    basis and making use of the Army National Guard around the
    world.
        There are some unique things going on with our Army. We are
    a participant in the transformation and looking at new ways to
    do business. Part of our transformation is converting some of
    our force structure, and some of our request this year is to
    support that. The Army facilities strategy will better focus
    our energies towards military construction for the future.
        The Army National Guard strongly supports the facilities
    strategy. Even though it is a 30-year strategy, it is a focused
    approach. In the first 10 years, the Army National Guard, will
    focus on our readiness centers, trying to take care of at least
    a third of those requirements that we have nationwide in the
    States, the three territories and the District of Columbia. We
    will also be focusing on our surface maintenance facilities and
    our classrooms in order to train our soldiers for the future,
    and support this strategy.
        While this does not address all of our needs, it is a step
    in the right direction and we certainly do support a focused
    approach for the future. The Army National Guard has been
    looking at how the force structure of the Army will change for
    the future. Initially we will be converting part of our combat
    structure to combat support and combat service support
    requirements of the Army. There is a phased approach in
    converting up to 12 of our brigades over a time frame that will
    take us out through 2009. This year includes phase one of that
    particular strategy.
        As you are much aware, the Army National Guard has a proud
    history of its accomplishments and service to our Nation and
    what we bring to our communities across the Nation. We have an
    obligation of continuing to provide adequate, safe, and cost
    effective facilities to support our personnel throughout the
    Nation, and we appreciate the support that we have received
    from this committee. Thank you.
        Senator Feinstein. Thank you very much, General.

                                  Army Reserve

        General Bergson.
        General Bergson. Madam Chair, on behalf of the men and
    women of America's Army Reserve, the credentials of America's
    Army Reserve, thank you for the opportunity to represent them
    and present their military construction needs to you today. As
    we speak, your Army Reserve soldiers and units continue to
    serve proudly in support of Operations Joint Forge and Joint
    Guardian under the presidential reserve call-up authority.
        In fiscal year 2001 we are deploying Army Reserve soldiers
    in units around the world in support of other high priority
    missions. Our soldiers provide daily proof that America's Army
    Reserve is in fact a trained and ready and relevant force. With
    your continued support in Congress, they will remain trained
    and ready and carry us forward well into the 21st first-
    century.
        The President's budget for fiscal year 2002 continues to
    focus on resources to readiness in line with the Army Chief of
    Staff's priorities. The budget provides essential military
    construction resources to address the Army Reserve's highest
    priority facilities, construction projects, and other needs. It
    will allow the Army Reserve to continue to modernize and
    revitalize its facilities infrastructure across the Nation.
        The organization, roles and missions of the Army Reserve
    dictate the need for a widely dispersed inventory and
    facilities. It provides a military linkage in 1350 communities
    throughout America, its territories, and overseas locations. We
    occupy over 1,100 facilities consisting of more than 7,600
    buildings and structures that have an average age of about 37
    years. Army Reserve-operated installations add another 2,600
    buildings and structures to the total inventory. The average
    age of facilities on these installations is about 47 years.
        The essence of our program is straightforward: to provide
    essential facilities to improve readiness and quality of life,
    to preserve and enhance the Army's image across America, and to
    preserve and protect the facilities resources for which we are
    responsible.
        The Army Reserve has been successful in demonstrating
    itself to be a competent and effective steward of the resources
    placed in its care. Since 1981 the Army Reserve has completed
    more than 300 major construction projects that represent an
    investment of $1.3 billion. In addition to the programmed
    military construction, we realize significant savings from base
    realignment and closure actions. The Army Reserve acquired
    facilities from all services, including the Active Army,
    offsetting military construction requirements. The facilities
    acquired through BRAC provided a military construction cost
    avoidance of $123 million. Other facilities acquired through
    BRAC process has permitted the Army Reserve to relocate units
    from leased facilities to quality government-owned centers.
    That effort allowed the Army Reserve to reduce its lease costs
    by $13 million.
        The budget request for fiscal 2002 provides funds for the
    highest priority Army Reserve MILCON requirements. The fiscal
    year 2002 MCAR budget request for the Army Reserve includes
    three categories of funding: major construction, unspecified
    minor construction, and planning and design. Our fiscal year
    2002 budget requests an appropriation of slightly over $101
    million to fund construction of five new Army Reserve centers
    in American Samoa, Arizona, Kentucky, New Hampshire, and
    Washington, to accomplish essential facility replacement,
    revitalization of existing facilities in Colorado, a new
    maintenance facility in Texas, an officer education systems
    barracks in New Jersey, and land acquisition to support a
    future project in Cleveland, Ohio.
        Another important issue that is directly linked to the Army
    Reserve's overall ability to be good stewards of its facilities
    and installations is that of funding for sustainment,
    restoration, and modernization that General Van Antwerp
    mentioned earlier. Although provided separately by the O and M
    Army Reserve, OMAR, appropriation, these funds complement
    military construction funds to round out the Army Reserve's
    total resources to manage its facilities inventory.
        Long-term resource constraints in both military
    construction and real property maintenance have a combined
    effect of increasing the rates of aging and deterioration of
    our valuable facilities and infrastructure. Historically, the
    budget has provided SRM resources to only fund the most
    critical maintenance and repair needs. The fiscal year 2002
    budget includes $158 million for SRM, which funds fully 93
    percent of the Army Reserve sustainment, restoration,
    modernization requirements. We solicit your support of SRM as
    an essential adjunct of construction.
        The fiscal 2002 budget request is for appropriations and
    authorization of $111 million for military construction Army
    Reserve and $158 million for SRM. We are grateful to the
    Congress and the Nation for the support you have given and
    continue to give to United States's Army Reserve. Thank you,
    Madam Chair.

                         Unspecified Minor Construction

        Senator Feinstein. Thank you very much, General.
        I would like to begin with General Squier if I might. Last
    year the Army Guard was given $25 million for unspecified minor
    construction to provide facilities for the 27 weapons of mass
    destruction civil support team. From that $25 million, it
    funded facilities for 20 of the teams, with 7 remaining
    unfunded, one of which is Los Alamedos. I understand the
    program is still $7 million short of what it needs.
        Is there a request in this budget that will fund that
    shortfall?
        General Squier. No, ma'am. We did not--were not able to
    bring forward a request for that particular initiative. I am
    very much aware of that and we did in fact fund for 20 of those
    and we have a requirement for at least $7 million that you have
    highlighted here for the remaining teams as this evolving new
    program is established.
        Senator Feinstein. Do you feel you need the money or not?
        General Squier. Yes, ma'am, we do need that money.
        Senator Feinstein. Is that a priority for you?
        General Squier. It is a high priority.
        Senator Feinstein. How high a priority?
        General Squier. It is as high as it could be for us. As far
    as this is unspecified minor, given the fidelity of trying to
    find out exactly where the States are going to put these
    facilities and what their requirements are, it is a high
    priority for us.
        Senator Feinstein. Then we will try and work with you and
    see that it gets done.
        Can you handle the job with the 27 civil support teams?
        General Squier. Actually, there is a requirement as we know
    it to go to 32.
        Senator Feinstein. 32?
        General Squier. 32, yes, ma'am. We have not stood up the
    additional 5 teams yet. We are only focused on the 27 that are
    currently being established. The Department of Defense is
    establishing the criteria and requirements. I am not prepared
    to address whether that is adequate or not. Still, it is an
    emerging new program. There are still some things to be refined
    as we look at the roles and missions responsibilities.
        Senator Feinstein. Well, I would like to work with you on
    that. It seems to me we are building this big missile defense
    system and we ought to have civil support as well.
        General Squier. It is a critical issue for the Nation,
    ma'am.

                            National Training Center

        Senator Feinstein. Secretary Johnson, if I might, could you
    update us on the status of the National Training Center
    expansion at Fort Irwin, California? I understand that DOD and
    Interior, including the Fish and Game, Fish and Wildlife
    Service, are working together on an expansion, very
    controversial. Congressman Lewis and I have worked together on
    it. That expansion attempts to address various environmental
    concerns that have been addressed or that have been mentioned,
    particularly the desert tortoise.
        I know I went to Fort Irwin and met with General Webster,
    saw what they were doing. My belief is that they have worked
    out a very fine plan.
        What is the status and the outlook and the schedule for
    implementing that plan?
        Mr. Johnson. We have worked very hard with the Department
    of Interior and yourself and Congressman Lewis. We have now
    submitted our plan for the land withdrawal. That is still being
    considered. As soon as that is passed in law, then we will be
    able to pick up the additional land to the south so we can
    train and protect the endangered species and the milkweed also.
        Senator Feinstein. Milk Vetch.
        Mr. Johnson. Milk Vetch, excuse me.
        Senator Feinstein. I particularly want to compliment
    General Webster. I had the pleasure of going to the base--as
    you know--for a meeting with him and in terms of effecting a
    compromise that could prevent a tortoise from standing in front
    of a tank and creating the necessary or probable civic
    explosion, he was quite wonderful and I gathered worked that
    out.
        It looks like it could be a done deal very shortly. So
    please extend for me my compliments to him. I am very
    appreciative.
        Mr. Johnson. Senator, as a matter of fact we set up a team
    and went out there before your visit and got this all set up.
    He is a great guy. He knows his stuff there on training and he
    is also sensitive to the environment and the Milk Vetch.
        Senator Feinstein. Let me ask you this question and maybe
    you can answer it because you are leaving and you do not have
    to worry about it. I have often wondered why there cannot be
    more inter-service sharing of bases. I initially tried that
    between China Lake and Fort Irwin and struck out 100 percent.
    Wherever I seem to go--I do not know if Senator Hutchison has
    had this same experience--but there is a refusal to do any
    inter-service sharing of bases or materials or claims or
    anything else.
        Mr. Johnson. Well, we have China Lake and that is still a
    gleam in our eye. It is not over with. We also have some other,
    like Fort Dix, McGuire. We are joining with an RCI project up
    there. We have a number of those. It is just sometimes hard
    getting us to thinking exactly alike, but we are studying it
    very, very much. We think it is a savings, no question about
    it, if we can consolidate some of these and save some money.
        Senator Feinstein. Do any other of the Generals have any
    comment on that subject?
        General Van Antwerp. I will venture a comment on that. I
    think part of the consideration where it comes to training
    lands is training lands are in such high demand that folks are
    reluctant to share those training areas because it is so
    difficult to already get on them. That is part of the National
    Training Center's problem right now. It is highly utilized and
    overutilized. We would love to expand into China Lake, as Mr.
    Johnson said, and use that as part of our training area. I
    think that may be a possibility.
        Senator Feinstein. That would be excellent. If I could help
    with that, I would be happy to do so.
        General Bergson. We have had some success with reserve
    centers, Madam Chair, because we are using them part-time and
    the Army will use them one weekend and the Navy Reserve will
    use them a different weekend. Unfortunately, as we are getting
    more and more involved in training the times tend to overlap a
    little bit. We do have quite a few joint reserve centers.
        Senator Feinstein. Thank you.
        Senator Hutchison. I just would take what you were
    discussing a little bit further and say I think that the more
    we can do with that the better, because we have a joint reserve
    base, it used to be Carswell and now that is a joint base, that
    is working great. You can have better facilities when you can
    share them and get more use from them. So I think it is
    something that probably is the way for the future.
        Just the Joint Strike Fighter, which is now going to be
    used by three services, I think is a great first step, or it
    might not be the first but it is certainly a major step in that
    direction. So I think it is something that hopefully we will be
    doing more of.
        I just have one question for Mr. Johnson, and I also want
    to thank you for your 52 years of service. That has got to be a
    record, that someone has been, let us see, Deputy Assistant
    Secretary for 18 years, Deputy Assistant Secretary of the Army
    for 18 years. That has got to be a record. We really appreciate
    your excellent service and thank you for doing that.
        I just have one question and it is for Mr. Johnson. It is
    the issue of privatization of housing, which I think more and
    more of the services are using and I think it is proving to be
    quite effective. Where something might cost $40 million, the
    service is able to put about $10 million in and with
    privatization the private contractor absorbed the rest of the
    cost. But that also means that local schools are going to be
    impacted if you are doing off-base housing and it might not
    necessarily be the on-base schools as we were talking about
    earlier.
        I have been very active in making sure that our impact aid
    schools do get the funding they need to service the children
    that go into off-base housing. I would just like to ask you how
    the Army going forward is looking at the impact aid schools as
    affected by privatization, and are you still convinced that
    overall this is the way to go?

                             Housing Privatization

        Mr. Johnson. Yes, it is the way to go. Actually, what we
    did was start off early in the process with the school
    districts and our installation managers and discussed this with
    them, what their requirements are and what we can provide.
    Actually, we provide land for the schools, but we would
    certainly prefer that the school districts raised the bonds and
    built their own schools. Otherwise, we use part of the
    allowance for quarters to pay for housing, we would use some of
    that to pay for schools.
        We are working very carefully and closely with the local
    communities and so far so good. That is working.
        Senator Hutchison. Well, I think that is fine, but you have
    to remember that a local community cannot absorb kind of a
    rubber band, large numbers of students, then shrinking numbers
    of students after they have built the facilities. We have to
    step up to the plate and make sure that the school district has
    the help they need to get the quality education.
        Any comments from anyone else on this subject?
        If not, those are the questions I had.
        Senator Feinstein. I had one request, one last request. I
    would like to know the total of the Army's unfunded priorities
    for fiscal year 2002.
        General Van Antwerp. As you look at----
        Senator Feinstein. I am giving you an open chance.
        General Van Antwerp. This MILCON budget funds about 41
    percent of our requirements, so there is a long list that was
    below the cut line for this. We think we have those priorities
    that support readiness, transformation, and our people, but
    they are in some cases, like the barracks buyout program goes
    to fiscal year 2008, they are long-term programs.
        Obviously, if you could accelerate that and provide that
    earlier, it would provide for the wellbeing of the force.
        Senator Feinstein. Well, what I would like to ask you to
    provide for the committee is a list of your unfunded priorities
    in priority order en bloc. That would be very helpful. I am
    most interested in, and I know Senator Hutchison is--it is one
    thing coming from the civilians. It is another thing coming
    from the military. So we would like to know what your top
    unfunded priorities are.
        [The information follows:]

                              Subcommittee Recess

        Senator Feinstein. Thank you very much. There being no
    further business, this meeting is recessed and we will
    reconvene tomorrow. Thank you very much.
        [Whereupon, at 4:48 p.m. Tuesday, July 31, the subcommittee
    was recessed, to reconvene at 2:30 p.m., Wednesday August 1.]

           MILITARY CONSTRUCTION APPROPRIATIONS FOR FISCAL YEAR 2002

                                  ----------

                           WEDNESDAY, AUGUST 1, 2001

                                           U.S. Senate,
               Subcommittee of the Committee on Appropriations,
                                                        Washington, DC.
        The subcommittee met at 2:30 p.m., in room SD-138, Dirksen
    Senate Office Buildings, Hon. Dianne Feinstein (chairman)
    presiding.
        Present: Senators Feinstein, Hutchison, Landrieu, and
    Craig.

                             DEPARTMENT OF DEFENSE

                             Department of the Navy

    STATEMENT OF DUNCAN HOLADAY, SENIOR CIVILIAN OFFICIAL,
                OFFICE OF THE ASSISTANT SECRETARY OF THE
                NAVY, (INSTALLATION AND ENVIRONMENT)
    ACCOMPANIED BY:
            ADMIRAL MICHAEL JOHNSON, USN, COMMANDER, NAVAL FACILITIES
                ENGINEERING COMMAND
            GENERAL GARY McKISSOCK, INSTALLATION AND LOGISTICS, MARINE
                CORPS
            REAR ADMIRAL NOEL PRESTON, DEPUTY DIRECTOR, NAVAL RESERVE

                 OPENING STATEMENT OF SENATOR DIANNE FEINSTEIN

        Senator Feinstein. Good afternoon gentlemen. I am very
    pleased to call to order this second hearing in 2 days of the
    Subcommittee of Military Construction of the Senate
    Appropriations Committee. Senator Hutchison, the ranking
    member, is on her way and will be here shortly. But, so that we
    can begin on time, I would like to begin with my opening
    remarks.
        First of all, I would like to welcome the witnesses and
    today we are going to hear from representatives of the Navy and
    the Air Force on their respective fiscal year 2002 military
    construction programs. At yesterday's hearing, I noted the
    emphasis this budget places on funding for military
    construction. In other words, the budget is up, and
    particularly quality of life items, such as improved housing
    and dormitories. So, I look forward to hearing how those
    programs are being handled by both the Navy and the Air Force.
        While the fiscal year 2002 budget submitted to Congress is
    mostly a good news story, I am troubled by the lack of funding,
    which is cut back from last year's almost by 50 percent cutback
    in the Navy's BRAC program. So, I look forward to hearing the
    details of that issue from the Navy today, as well as
    recommendations on how this shortfall can be overcome. And I am
    very interested in how the Air Force is fairing on completing
    its BRAC program.
        The supplemental funding bill recently passed by Congress
    included $9 million for BRAC environmental compliance work at
    McClellan Air Force base in California. That is a base that I
    am very familiar with and I am glad that we were able to
    provide that funding so that work at McClellan can proceed.
    However, I am very much concerned about the environmental
    remediation on the closed bases, and particularly McClellan
    among others. I know there is radioactive material and I guess
    that has raised the price, but I understand the overall cost--
    and I will ask you to comment on this--it is in the vicinity of
    $450 million to clean up that base. I understand the Air Force
    has requested funding for several other BRAC projects in the
    supplemental and I am looking forward to hearing more details
    on those, and whether the Air Force is facing a similar
    shortfall as is the Navy, in 2002.
        While on the topic of the supplemental, I would like to
    point out that the bill included $9.4 million for a ship repair
    facility for the Navy on Guam. And I was very happy to try on
    this side to be helpful to Admiral Blair. I know that was a
    very high priority of his, and so if the Navy could possibly
    comment on how you are going to use that $9.4 million, I would
    appreciate that as well.
        Senator Hutchison is not here yet, but I will tell you what
    we will do. If she wishes, we will stop and receive her opening
    statement when she comes. But in the meantime, I am going to
    proceed and introduce the panel. I am very pleased to welcome
    Mr. Duncan Holaday, a Senior Civilian Officer for Navy
    Installations and Environment; Admiral Michael Johnson, the
    Navy' chief civil engineering; Lieutenant General Gary
    McKissock who is in charge of installations and logistics for
    the Marine Corps; and Admiral Noel Preston, Deputy Director of
    the Naval Reserve.
        Mr. Secretary, because of the limited time, I would like to
    ask that all of you submit your written statements for the
    record and just verbally summarize those and perhaps be
    responsive to some of these issues of my opening statement. Mr.
    Secretary, would you like to proceed?

                          STATEMENT OF DUNCAN HOLADAY

        Mr. Holaday. Yes, good day Madam. It is a pleasure to be
    here before you to be able to discuss the Navy's shore
    infrastructure budget. I would like to submit my prepared
    statement as we discussed and just summarize it, and my oral
    statement will cover the entire panel.
        The Department has to maintain balance between current
    readiness, recapitalization, and research and development to
    meet our future defense needs. Infrastructure programs have in
    general fared well in these balancing efforts. With the
    exception of our recent focus on fixing our inadequate family
    housing, our installations and facilities have continued to
    deteriorate due to age and neglect. So, it is particularly
    encouraging to see this administration focus on sustaining and
    modernizing our infrastructure.
        In his confirmation statement to the Senate Armed Services
    Committee, Secretary England said ``I will emphasis quality of
    service, achieving higher quality of workplace as well as
    higher quality of life for our sailors and marines.'' The
    fiscal year 2002 amended budget submission includes significant
    funds above the previous baseline to help achieve these goals.
    Our fiscal year 2002 appropriation request of $1.1 billion for
    military construction is the largest submission in well over a
    decade. It includes 50 projects totaling $692 million for the
    Navy and 33 projects totaling $339 million for the marines.
        Most of the projects are for the operational maintenance
    and training facilities, barracks and environmental projects.
    The biggest challenge we face is improving the living
    conditions for our single sailors and marines. The Department
    of Defense's goal is to eliminate central heads and permanent
    party barracks by fiscal year 2008. While the Marine Corps will
    exceed that goal by eliminating central heads in barracks by
    2005, it will not be able to achieve the 2+0 construction
    standards for another 30 years. The Navy, while meeting the DOD
    goal for eliminating central heads, will not achieve the 1+1
    standards for another decade.
        The Navy also needs to provide facilities for sailors who
    now live aboard ship while at home port. The Navy is committed
    to the Homeport Ashore program to provide living programs
    ashore for these sailors. While a final plan is still in the
    works, the Navy has already used changes in assignment policy
    in Hawaii and Guam to bring shipboard sailors ashore. This
    budget includes $105 million to build 516 barracks bases in San
    Diego, 260 at Mayport, and 1,000 at Pearl Harbor to speed the
    process. We are also continuing to explore the feasibility of
    applying PPV authorities--privatization authorities--to our
    barracks. I have challenged the Navy and Marine Corps to
    develop bachelor housing privatization projects that we can
    bring forward to Congress.
        Our 2002 family housing request totals $1.2 billion. Though
    slightly smaller than last year's enacted level, it retains a
    focus on replacement construction and improvements, and also
    includes funds to continue public-private venture projects. For
    the last several years we have remained on course to achieve
    DOD's goal of eliminating by fiscal year 2010, the inadequate
    military family housing that we own. I am pleased to report
    that the new Family Housing Master Plan to be submitted to the
    Congress shortly will show that we will meet that goal sooner
    than expected. The Navy will eliminate its inadequate homes by
    2009 and the Marine Corps by 2008. I am hopeful that we can do
    even better than that.
        With regards to the early four rounds of base closure, we
    have completed 178 closures and realignments. Our major focus
    now is on finishing environmental clean up and property
    disposal. We have already transferred over 65,000 acres to
    economic development conveyances, negotiated sales, public
    sales and public benefit transfers. Of the 96,000 acres
    remaining to be transferred, over 74,000 are associated with
    the formal Naval Air Station at Adak, Alaska.
        By the end of 2001, we expect to have completed clean up of
    79 percent of our BRAC sites. Unfortunately because of
    competing budget requirements, our BRAC requests declines from
    $443 million in 2001 to $131 million in 2002. This level of
    funding is insufficient to meet our requirements and limits our
    ability to take advantage of any promising early transfer
    opportunity that would both the Navy and local redevelopment
    authorities. We are working with OSD to resolve this issue and
    keep the Congress, regulators and affected communities
    apprised.

                               Prepared Statement

        In conclusion, I believe the DON infrastructure program is
    in a strong position as we begin the new millennium. I
    appreciate the support of this committee and its staff has
    given us in the past and I look forward to your continued
    support of our Navy and Marine Corps programs.
        [The statement follows:]

                      Prepared Statement of Duncan Holaday

        Good day, Mr. Chairman and members of the Committee, I am Duncan
    Holaday, Deputy Assistant Secretary of the Navy (Installations and
    Facilities). During the transition period of the Bush Administration, I
    also serve as the Senior Civilian Official in the Office of the
    Assistant Secretary of the Navy (Installations and Environment). I
    appreciate the opportunity to speak to you today on the Department of
    the Navy's shore infrastructure.
        My statement today will cover these areas:
      --The Fiscal Year 2002 Amended Budget Submission for infrastructure;
      --Program highlights for family housing, military construction,
            sustainment, restoration and modernization, and Base
            Realignment and Closure (BRAC);
      --Energy issues;
      --Legislative proposals.
                           the infrastructure budget
        As a long-serving member of the Department of Defense, I have
    watched with mounting concern efforts to maintain the delicate balance
    between current readiness, recapitalization, and research and
    development to meet future defense needs. As members of this Committee
    recognize, the infrastructure budget was often the bill-payer during
    budget formulation to meet higher priority Department needs. Promises
    of improved funding levels in the Future Years Defense Plan to fix
    demonstrated facilities shortfalls did not materialize, as the
    competition for scarce resources became ever more difficult in each
    subsequent budget. During program execution, base support and real
    property maintenance funds were often tapped to pay for unexpected
    operating expenses.
        With the exception of recent gains to fix persistent housing
    shortfalls, our installations and facilities have deteriorated due to
    age and neglect. Last year's Installations Readiness Report showed 67
    percent of Navy's and 53 percent of Marine Corps facilities rated C-3
    (have serious deficiencies) or C-4 (do not support mission
    requirements). With limited funding levels, we could expect to wait
    about 170 years before being able to program to replace new
    construction, over two and a half times that of the private sector. The
    results are predictable: facilities performance declines, readiness and
    mission support suffers, service life is lost, and total costs rise.
    Our Sailors, Marines, and civilian employees must try to do their job
    using modern technology tools and techniques in buildings originally
    designed and constructed before most of them were born.
        So it is particularly encouraging to see the President, the
    Secretary of Defense, the Secretary of the Navy, the Chief of Naval
    Operations, and the Commandant of the Marine Corps recognize and
    advocate the need to modernize our shore infrastructure. In his
    confirmation statement to the Senate Armed Services Committee,
    Secretary England, stated that ``I will emphasize `Quality of
    Service'--achieving a higher quality of work place as well as a higher
    quality of life for our Sailors, Marines, active duty and reserves, and
    civilians and all of their families'' as one aspect of his four major
    goals.
        The Fiscal Year 2002 Amended Budget Submission before you includes
    significant additional resources above the previous baseline to improve
    and modernize our infrastructure. The Department of the Navy received
    $413 million of the $2.0 billion added by the Secretary of Defense for
    facilities, and $162 million of the $400 million added for housing. We
    received an additional $229 million for base operating support, $47
    million for utilities cost growth, $87 million for force protection
    initiative in the Operations and Maintenance accounts, and $7 million
    for energy savings initiatives.
        Let me describe our budget highlights in more detail.
    Compared with Overall DON Fiscal Year 2002 Budget
        The Department of the Navy installation budget includes these
    appropriations: Military Construction, Navy (MCON); Military
    Construction, Naval Reserve (MCNR); Family Housing, Navy and Marine
    Corps (FHN); Base Realignment and Closure (BRAC); and Environmental
    Restoration, Navy (ERN). Base operations support and real property
    maintenance functions are included in the Operation and Maintenance
    accounts. Our fiscal year 2002 installation program totals $9.0
    billion, or about 9 percent of the $99 billion fiscal year 2002
    Department of the Navy budget request.
    Compared with Fiscal Year 2001
        I believe you will agree that we are presenting a strong overall
    fiscal year 2002 military construction program.
        Our fiscal year 2002 authorization and appropriation request of
    $1.1 billion for Military Construction, Navy is the largest submission
    in well over a decade. It includes 50 projects totaling $692 million
    for the Navy, and 33 projects totaling $339 million for the Marine
    Corps. It also includes $11 million in unspecified minor construction,
    and $30 million in planning and design. Most of the projects are for
    operational, maintenance and training facilities, barracks, and other
    quality of life projects. The Military Construction, Naval Reserve
    request comprises 11 Navy projects totaling $22 million and three
    Marine Corps projects totaling $11 million. It also includes $1 million
    in planning and design funds.
        Our fiscal year 2002 family housing request totals $1.2 billion.
    Though slightly smaller than last year's enacted level, it maintains a
    focus on replacement construction and improvements, and also includes
    funds to continue public/private venture (PPV) projects. Family housing
    operations and maintenance is funded at about the same level as fiscal
    year 2001.
        Our BRAC request for fiscal year 2002 is of great concern,
    declining from $443 million in fiscal year 2001 to $131 million in
    fiscal year 2002. This level of funding is, I believe, insufficient to
    meet our mandated funding requirements, and precludes our ability to
    take advantage of any promising early transfer opportunities that may
    arise that would benefit the Navy and local redevelopment authorities.
    I will discuss this issue in more detail later.
        Our Fiscal Year 2002 Real Property Maintenance request of $1.8
    billion is $83 million above the fiscal year 2001 appropriated level.
    These funds in the Operation and Maintenance accounts are for repairs,
    preventive and recurring maintenance, minor construction, and centrally
    managed demolition. The Department of Defense is transitioning to a new
    methodology and nomenclature--Sustainment, Restoration and
    Modernization (SRM). ``Sustainment'' is the amount of funding required
    for scheduled maintenance and repairs over the service life of the
    facility. It does not improve the condition or readiness of the
    facility. It is calculated using a DOD Facilities Sustainment Model
    (FSM), that multiplies, facilities quantity data (most often square
    feet) times, unit cost factors (most often dollars per square foot)
    derived from private industry. ``Restoration and Modernization'' is the
    portion of the SRM program that goes beyond sustainment and improves
    the condition and readiness of the facility using O&M and MILCON funds.
    The Department of the Navy initiated the transition to the new
    methodology in the fiscal year 2002 budget, and will fully implement
    this new approach in the fiscal year 2003 budget.
    Construction Contingency
        Construction projects typically include an amount of money set
    aside to fund unexpected problems that arise during the final design of
    the project, or more commonly during actual construction, e.g., when
    encountering unexpected site conditions. Last year, the Department of
    Defense submitted its budget request with no contingency funding for
    military construction and family housing construction projects, and
    although no contingency funding was authorized or appropriated, report
    language directed the Department of Defense to fund contingency in its
    fiscal year 2002 budget request. We have seen early indications that
    the absence of contingency funding is compromising our ability to
    maintain essential quality aspects of fiscal year 2001 projects.
    Project managers are being forced to choose lower quality products that
    will result in higher future life cycle costs to stay within budget. I
    am pleased to report that the fiscal year 2002 budget includes a five
    percent contingency for all construction projects, consistent with the
    direction in the Fiscal Year 2001 Defense Appropriations Act. I urge
    your support for funding contingency.
                                 family housing
    Family Housing Overview
        Our family housing strategy consists of a triad:
      --access to housing in communities surrounding our bases;
      --use of traditional military construction and leasing funds to
            improve or acquire housing either on base or in the community;
            and
      --developing public/private ventures to leverage private sector
            capital to provide housing that is available on a priority
            basis to our members.
        We traditionally rely first on the private sector to provide
    housing for our Sailors, Marines and their families. Our bases have
    housing referral offices to help newly arriving families find suitable
    homes in the community. Approximately 73 percent of Navy families and
    63 percent of Marine Corps families worldwide lived in a home they
    owned or rented in the community.
    Family Housing Master Plans
        The Department remains committed to improving living conditions for
    Sailors, Marines, and their families. Our Sailors and Marines perform
    their duties admirably, in often difficult and dangerous conditions.
    While deployed forward, our forces represent sovereign combat power
    overseas in regions of U.S. interest, providing timely response in
    crises as well as capabilities to project both offensive and defensive
    power ashore to assure access for the Joint force. Ensuring that they
    and their families have quality housing when at home is one of our most
    important tasks.
        For the last several years, we have remained on course to eliminate
    the inadequate units in our military family housing inventory by fiscal
    year 2010. I am pleased to report that the new Family Housing Master
    Plans to be submitted to the Congress shortly will show that we will
    meet that goal sooner than expected. As a result of projects added by
    the Congress and further reliance on public/private ventures, the new
    Master Plans will show elimination of inadequate family housing units
    by fiscal year 2009 for the Navy and fiscal year 2008 for the Marine
    Corps. I am optimistic that with the support of the new administration,
    we can do even better by making maximum use of the potential to
    leverage our resources through the family housing privatization
    authorities.
    Family Housing Investment Strategy
        Our budget request continues our approach to repair and modernize
    our family housing inventory. Our budget request includes $115 million
    for the replacement of 377 units at Pearl Harbor, HI; Sigonella, IT;
    Yuma, AZ; Twentynine Palms, CA; and Kaneohe Bay, HI, and construction
    of 160 homes at Naval Station, Pascagoula, MS where there is a
    projected shortage of affordable, suitable housing. Our request also
    includes $183 million for revitalization of another 1,293 units at a
    total of 13 Navy and 4 Marine Corps installations. The improvements
    sub-account also includes $16 million at Naval Base San Diego and
    $14.7M at Marine Corps Base Camp Pendleton for phase II public/private
    ventures.
    Operations, Maintenance, and Leasing
        At the end of fiscal year 2000, the Department of the Navy owned
    about 84,000 homes, worldwide, and leased another 6,862 homes,
    worldwide, for occupancy by Navy and Marine Corps families.
        The Department is requesting $918 million for the operations,
    maintenance, and leasing, of family housing. The request would cover
    costs associated with the management and maintenance of housing and the
    provision of services, utilities, and furnishings.
        I appreciate the Congress' support of the Administration's fiscal
    year 2001 supplemental request for an additional $20.3 million to fund
    unexpected increases in utility costs at Navy and Marine Corps
    locations across the country. We have reflected these increased costs
    in our request for fiscal year 2002.
        The budget request also includes funding for the leasing program:
    3,974 units for domestic (short-term, ``Section 801,'' and recruiter)
    leases in the United States and 2,552 leases at foreign locations.
    Family Housing Privatization Initiative
        The power of PPV is embodied in the ability to leverage resources,
    as provided by the authorities enacted by Congress as part of the
    Fiscal Year 1996 Defense Authorization Act \1\ This leverage allows us
    to combine private sector capital and expertise with our investment
    contribution to construct, renovate, manage, and maintain housing,
    rather than rely on financing the entire amount with government
    resources as we have done in the past.
    ---------------------------------------------------------------------------
        \1\ The Fiscal Year 1995 Defense Authorization Act authorized the
    Department of the Navy to enter into limited partnerships for the
    construction of housing for military families. The Fiscal Year 1996
    Defense Authorization Act significantly expanded the scope and breadth
    of the initial limited partnership authority.
    ---------------------------------------------------------------------------
        The Department has taken a deliberate, measured approach in
    evaluating which blend of authorities would provide the desired
    leverage with sufficient protection of the Government's resources and
    interests over the long-term. We are now bringing projects to fruition.
        I am pleased to report that in November and December 2000, we
    awarded three PPV projects totaling 1,150 units. These projects are at
    the Marine Corps Base, Camp Pendleton, CA; Naval Air Station,
    Kingsville, TX; and Naval Station, Everett, WA. The DON has been able
    to leverage $43 million of its resources to stimulate the investment of
    over $140 million in constructing, replacing, and renovating housing
    for our Sailors, Marines, and their families. As a result, 512 existing
    homes will be renovated or replaced and an additional 638 homes will be
    constructed. Construction work has already begun on all three projects.
    The first units will be ready for occupancy later this year.
        In addition to these projects, we are planning to award another
    four Navy and Marine Corps projects this fiscal year. These are at San
    Diego, New Orleans, South Texas, and, finally, a project combining
    Albany, GA and Camp Lejeune, NC. These projects total almost 5,000
    homes in scope.
        There are another four planned projects totaling 2,235 homes that
    we expect to award after fiscal year 2001. These are at Hampton Roads,
    VA; Stewart Army Subpost, NY; Beaufort/Parris Island, SC; and a
    regional project involving three Navy installations in the
    Philadelphia/Harrisburg, PA area. The Hampton Roads project would
    involve a joint partnership with the Virginia Housing Development
    Authority (VHDA).
        Earlier in my statement, I referred to the power of leverage that
    privatization provides us. We have undertaken our efforts in this area
    as a pilot approach to testing the feasibility of these authorities. If
    we are to improve housing for our families as quickly as possible, we
    need to make maximum use of these authorities. We continue to explore
    and develop opportunities for future PPV projects consistent with the
    family housing master plan. I firmly believe we have a sound approach
    that ensures that the Government's interests are protected while
    providing flexibility over the long-term. I ask for your continued
    support as we aggressively seek out opportunities to provide better
    housing now rather than later.
                                bachelor housing
        One of the biggest challenges we face is improving the living
    conditions for our single Sailors and Marines. We are making progress
    in certain areas. For example, the Department is on track to meet the
    Department of Defense's goal of eliminating central heads in permanent
    party barracks by fiscal year 2008. In fact, the Marine Corps predicts
    they will achieve that goal by fiscal year 2005. However, I am
    disappointed in our overall progress in ensuring that single Sailors
    and Marines have decent barracks with a level of privacy that they
    desire. As with family housing, this is an area where we must
    aggressively pursue solutions, such as privatization, to do more for
    our personnel quicker.
    ``Homeport Ashore''
        A major way in which we can improve the quality of life of our
    Sailors is to provide ashore accommodations for the more than 25,000 E-
    1 through E-4 enlisted unaccompanied Sailors who now live aboard ship
    when in homeport.\2\ These young Sailors have the worst accommodations
    in the Department of Defense. When deployed, they sleep in bunk beds in
    cramped spaces amid dozens of their shipmates, with little more than a
    small locker to store their personal belongings. When the ship returns
    to homeport, they must continue to live aboard ship. In contrast, their
    shore-based or married counterparts live aboard ship when deployed, but
    merit Bachelor Enlisted Quarters (BEQs) spaces or military family
    housing, or can draw Basic Allowance for Housing (BAH) when the ship is
    in homeport.
    ---------------------------------------------------------------------------
        \2\ Another 15,000 shipboard E-1 through E-4 personnel are deployed
    with their ships at any given time.
    ---------------------------------------------------------------------------
        The Navy continues to explore policy options to address this
    challenge. Key questions still to be resolved include exploration of a
    range of solutions, the use of different standards, as an interim, with
    an intent of achieving an end state of ``1+1'' or better; and other
    factors, such as housing allowances and assignment policy, that can
    promote this objective. We are, however, making progress. Pilot efforts
    in Hawaii and Guam have brought shipboard Sailors into barracks through
    the use of assignment policy. These efforts have been successful, but
    may be of limited use at other locations by factors such as overall
    barracks capacity. Our fiscal year 2002 budget includes two barracks
    construction projects to house shipboard sailors: $47.2 million to
    construct 516 spaces at Naval Station San Diego, CA and $16.4 million
    to construct 260 spaces at Naval Station Mayport, FL. Two other
    barracks projects in the fiscal year 2002 budget at Pearl Harbor, HI
    will help alleviate overcrowded conditions due to the pilot efforts
    there to move shipboard sailors into barracks.
        Pending receipt of the Navy's Homeport Ashore implementation plan,
    and with the exception of a waiver granted for Naval Air Station
    Lemoore, CA, all Navy permanent party enlisted barracks built on US
    territory are being built to the 1 + 1 configuration in the fiscal year
    2002 budget. The Marine Corps has a permanent waiver to construct its
    permanent party enlisted barracks to the 2 + configuration.
    Bachelor Housing Privatization
        We also are continuing to explore the feasibility of applying PPV
    authorities to our barracks needs. There are unique considerations
    associated with bachelor housing, such as team building and unit
    cohesion that must influence how we go about barracks privatization. I
    have challenged the Navy and Marine Corps to develop bachelor housing
    privatization projects that we can bring forward to Congress.
                          impact of the bah initiative
        Although the BAH is outside of the infrastructure budget, it
    directly affects our ability to adequately house our Sailors, Marines
    and their families. As you know, BAH is a housing stipend paid to the
    military member. I strongly support the Secretary of Defense's
    initiative to increase BAH and eliminate median out-of-pocket expenses
    by fiscal year 2005. The fiscal year 2002 budget reduces this out-of-
    pocket expense from 15 percent to 11.3 percent. The BAH increases will
    make housing more affordable for our members and their families, and
    reduce the inequity between those living in government quarters (no
    out-of-pocket expenses) and those living in the private sector. I also
    applaud Congress' action in granting eligibility to receive BAH while
    on sea duty, and extending the authorization to receive BAH to E-4
    members who are without dependents and assigned to sea duty. We have
    funded this extension of BAH in this budget submission.
        The Secretary of Defense's BAH initiative represents a major
    turning point in our efforts to improve living conditions for our
    single and married Sailors, Marines, and their families. It will
    directly affect almost three-quarters of Navy and Marine Corps families
    and approximately 27 percent of our single Sailors and Marines who live
    in private sector housing.
        In the short-term, the BAH increase will influence the dynamics of
    rental income streams for PPV projects, while also making private
    sector housing more affordable. Because this will eliminate the median
    out-of-pocket costs of private sector housing, we expect a reduction in
    the demand for military housing. We are working with the Office of the
    Secretary of Defense to develop new methodology and criteria to
    determine family housing requirements that reflect the impact of the
    BAH initiative. Our objective is to strike the appropriate balance
    between reliance on the private sector and, where necessary, the
    provision of government quarters.
                             military construction
        Our military construction program continues our approach of
    budgeting for those projects that meet the highest priority of
    readiness and quality of life needs of the Fleet and Fleet Marine
    Force, and their Reserve Components. The Navy convenes a Shore
    Installations Programming Board and the Marine Corps convenes a MILCON
    Program Evaluation Group each year to consider, evaluate, and
    prioritize military construction projects. Projects are selected based
    on a number of different criteria, including fleet priorities and the
    most critical readiness, quality of life, and compliance needs.
        Military Construction policy, like Family Housing, focuses on first
    fixing what we own. To this end, 74 percent of the active and reserve
    military construction program for the Navy and 68 percent for the
    Marine Corps is dedicated to replacement and modernization projects.
    Phased Funded Projects
        I should point out that four projects in our fiscal year 2002
    program have a total cost above $50 million, and under existing
    Department of Defense criteria, are phased funded over two or more
    years. We ask for full authorization for each project in the first
    year, and request appropriations in annual increments. We commonly
    resort to phase funding pier replacement projects because they are very
    expensive, and require a lengthy construction period. Many of our piers
    and wharves were built in the 1940s, and cannot support the deep draft,
    power intensive ships in the Fleet today. We must rebuild them to meet
    the needs of today and tomorrow. The fiscal year 2002 program includes:
      --$17.5 million for the final increment of a two-phased $53.2 million
            repair pier at Naval Station San Diego, CA. Phase one was
            funded in the fiscal year 2001 budget;
      --$24.5 million for the final increment of a two-phased $62.5 million
            pier replacement at Naval Ship Yard Bremerton, Puget Sound, WA.
            Phase one was funded in the fiscal year 2001 budget;
      --$37.6 million for the final increments of a three-phased $89
            million Commander in Chief, U.S. Pacific Command, CINCPAC,
            headquarters at Camp HM Smith, HI. Phase one was funded in the
            fiscal year 2000 budget. Phase two was funded in the fiscal
            year 2001 budget. This project includes a request for an
            additional authorization for $3 million for emergent force
            protection and other costs;
      --$28.1 million for the first of two increments for a $61.5 million
            repair pier at Naval Station Norfolk, VA.
        Operational and Training Facilities Our construction program funds
    18 \3\ (14 Navy, 4 Marine Corps) operational facilities totaling $202
    million. Examples include:
    ---------------------------------------------------------------------------
        \3\ Includes the phased funded projects.
    ---------------------------------------------------------------------------
      --Operations Building/Control Tower at Naval Air Station Key West,
            FL. This $11.4 million project replaces a severely deteriorated
            1950s vintage operations building and it's connected control
            tower that is operating under an aviation safety waiver because
            it is located too close to the runway.
      --Helo Outlying Landing Field at Marine Corps Base Camp Pendleton,
            CA. This $3.9 million project provides a reinforced concrete
            runway and support facilities that will relieve severe
            overcrowding conditions and facilitate training evolutions.
        There are four (1 Navy, 3 Marine Corps) training projects totaling
    $49 million. Examples include:
      --Surface Warfare Officer School Applied Instruction Building at
            Naval Station Newport, RI. This $15.3 million project will
            provide a 3-story instruction building with expanded networking
            capability, relieving an antiquated, overcrowded facility.
      --Academic Instruction Facility at Marine Corps Air-Ground Combat
            Center, Twentynine Palms, CA. This $9.9 million project will
            provide modern computer science and communications training,
            replacing overcrowded and poorly configured facilities.
    Maintenance, Storage, and Compliance Facilities
        There are 23 (12 Navy, 11 Marine Corps) maintenance and storage
    projects totaling $185 million. Examples include:
      --Aircraft Maintenance Hangar at Naval Station, Norfolk VA. This
            $11.3 million project, along with a similar $14.1 million
            Aircraft Maintenance Hangar (Chambers Field), are the third and
            the fourth of seven projects planned to replace nine old WW II
            maintenance hangars designed for aircraft no longer used by the
            Navy. The existing hangers have numerous electrical, fire, and
            safety code violations and are very expensive to maintain.
      --Engineer Equipment Maintenance Shop at Camp Lejeune, NC. This $7.0
            million project provides maintenance bays, wash racks, storage
            space, and administrative space, replacing 4 existing but
            inadequate facilities.
        There are three (1 Navy, 2 Marine Corps) environmental compliance
    projects totaling $22.3 million. One example is:
      --Raw Water Transmission Pipeline and Iron/Manganese Plant
            Modification at Marine Corps Base Camp Pendleton, CA. This
            $11.2 million project is the first step towards eliminating
            ``brown'' (iron/manganese) water being delivered in part of the
            base's potable water distribution system. Camp Pendleton has
            received compliance orders from the State of California to
            correct the problem by 2006.
    Utilities and Real Estate
        There are 10 (9 Navy, 1 Marine Corps) utility and real estate
    projects totaling $86 million. Examples include:
      --Waterfront Electrical Upgrade at Naval Station Norfolk, VA. This
            $15.6 million project provides a 50 percent increase in pier
            side electrical power consistent with a long-range regional
            waterfront plan.
      --Land Acquisition at Marine Corps Air Station, AZ. This $8.7 million
            project purchases 625 acres from numerous adjacent property
            owners to eliminate two waivers for explosive safety violations
            and minimize the impact of continued encroachment.
    Quality of Life
        There are 22 (14 Navy, 8 Marine Corps) enlisted barracks projects
    totaling $449 million and 3 other Marine Corps quality of life projects
    totaling 31 million. Examples include:
      --BEQs at Naval Air Station, Lemoore, CA. This $10.0 million project
            will provide 104 spaces to house E1-E4 personnel assigned to
            the F/A-18E/F aircraft being introduced to Lemoore.
      --BEQs at Marine Corps Combat Development Command, Quantico, VA. This
            $9.4 million project will provide 200 spaces for Marines
            attending the Staff Non-Commissioned Officer Academy. Personnel
            are currently housed in 1943 vintage buildings that are in
            extreme disrepair, laden with asbestos, poorly heated, without
            air-conditioning.
      --Indoor Physical Fitness Facility at Marine Corps Base Camp
            Pendleton, CA. This $13.4 million project replaces two 1940's
            era converted facilities that are undersized, overcrowded,
            seismically deficient, poorly located, and functionally
            inadequate.
    Reserve Military Construction Projects
        The reserve military construction program includes 13 projects (1
    Navy, 2 Marine Corps) projects totaling $34 million. There are 4
    operational, 4 training, and 5 maintenance/storage projects. Examples
    include:
      --Hanger Fire Protection Upgrades at Naval Air Station Joint Reserve
            Base, Willow Grove, PA. This $3.7 million project upgrades fire
            protection systems in four existing buildings, in compliance
            with the Clean Water Act.
      --Renovation and Site Improvement, Marine Corps Reserve Center Great
            Lakes, IL. This $4.4 million project will renovate two existing
            buildings, consolidating training, maintenance and storage
            requirements.
                          base realignment and closure
        While I want to highlight our accomplishments in this program, I
    also want to put these past successes into context for the future.
    Funding for our base closure account has become a limiting factor on
    property conveyance and is impeding communities from turning these
    bases into economic engines for local redevelopment and job creation.
    Realignment and Closure Status
        We are implementing four rounds of BRAC, 1988 under Public Law 100-
    526 and 1991, 1993, and 1995 under Public Law 101-510. As a result of
    these decisions, we are implementing a total of 178 actions consisting
    of 46 major closures, 89 minor closures, and 43 realignments.
        We will complete closure and realignment of all bases by July 2001
    except two moves from leased space to government owned space. One
    remaining activity is the Naval Management Systems Support Office
    (NAVMASSO) Chesapeake, VA. The primary actions were completed in
    October 1997 when NAVMASSO was disestablished and reestablished as the
    Space and Naval Warfare Systems (SPAWAR) Center Chesapeake, an Echelon
    III command under SPAWAR. Relocation of this activity has been deferred
    until January 2002 due to construction and equipment installation
    delays of the joint use facility they will be moving into. The other
    remaining BRAC action will move the Assistant Secretary of the Navy
    (Research, Development, and Acquisition) and Chief of Naval Operations,
    Environmental Readiness Directorate offices from leased space in
    Crystal City into the Pentagon in April 2003.
    BRAC 2002 budget
        The BRAC account has been buffeted by budget reductions from the
    Department of Defense to the Congress in the last few years, primarily
    due to the expectations that prior year unexpended balances could be
    used to fund current requirements. The Naval Audit Service has been
    reviewing task order documents across all commands with BRAC prior year
    unexpended funds, and will conclude their analysis in a few months.
        We have in the last 6 months undertaken a thorough examination of
    fiscal year 2002 BRAC total funding requirements by base, parcel, and
    site. We distinguished between ``must-fund'' and ``discretionary''
    requirements. ``Must-funds'' requirements included:
      --Continuation of remedial action operation or long-term monitoring
            for cleanup actions already underway;
      --Projects with specific regulatory milestones for work to be done in
            fiscal year 2002;
      --Specific senior level commitments made to local redevelopment
            authorities concerning property transfer;
      --Requirements to clean up imminent threats to human health or the
            environment.
        Discretionary requirements included projects under regulatory
    agreements with milestones which we believed could be renegotiated, or
    which could be deferred, or were without specific cleanup milestones.
        I regret to report that because of competing budget needs, we were
    unable to fully fund our mandated BRAC funding requirement in the
    fiscal year 2002 budget and are not likely to find sufficient
    unexpended balances to make up the difference. I cannot predict if we
    will be able to substantially reduce, through negotiations with
    regulators, the amount of work specified in State and Federal cleanup
    agreements. We have, however, severely limited our flexibility to make
    good business decisions or take advantage of opportunities for early
    transfer of property. For example, the Mayor of Vallejo, CA recently
    asked us to fund an early transfer of a 3,000-acre parcel including
    dredge ponds at the former Mare Island Naval Shipyard. The timing is
    right for this early transfer. The city needs the area for its own
    dredge spoil and to support the greater Bay Area dredging needs. We
    will work with the Congress, environmental regulators, and affected
    communities regarding this issue.
    Environmental Cleanup
        Our focus is finishing environmental cleanup and completing
    property disposal. This is no easy task. We have already spent more
    than $1 billion through fiscal year 2000 on environmental work at our
    BRAC bases.
        One measure of our progress in cleanup of contaminated property is
    the number of acres that have become suitable for transfer under the
    Comprehensive Environmental Response, Compensation and Liability Act
    (CERCLA) and the Community Environmental Response Facilitation Act
    (CERFA). Today, 90 percent of the original BRAC acres are
    environmentally suitable for transfer or have already been transferred.
        There are about 1,000 contaminated sites at 53 BRAC installations.
    A contaminated site crosses the ``cleanup finish line'' when it
    achieves Remedy-in-Place/Response Complete (RIP/RC) and the
    environmental regulator subsequently concurs. As of the end of fiscal
    year 2000, we had achieved RIP/RC status at 64 percent of all BRAC
    sites. By the end of fiscal year 2001, we expect to have completed
    cleanup at 79 percent of all BRAC sites. Cleanup at the remaining sites
    will extend through fiscal year 2011, primarily due to lack of funding.
        We are using promising cleanup technologies and as studies reach
    completion, are finding that for a number of sites, monitored natural
    processes can control and reduce the contaminants to safe levels. We
    continue to work with regulators and communities to tie cleanup
    standards to realistic reuse needs. We use a BRAC Cost-to-Complete
    (CTC) index as a measure of our efforts to reduce cleanup costs. At the
    beginning of fiscal year 1996, our BRAC CTC estimate was $2.8 billion.
    At the end of fiscal year 2000, it was $1.16 billion. The CTC reduction
    of $1.64 billion is the result of execution of $1.24 billion in
    appropriated funds and $400 million in cost avoidance, such as changes
    in risk based approaches to cleanup, new information on the nature and
    extent of contamination, and use of new technologies for study or
    cleanup.
    Section 334 Early Transfer
        Section 334 of the fiscal year 1997 Defense Authorization Act
    established a framework for the DOD to initiate an early transfer of
    contaminated property to the community. This authority allows DOD to
    defer the CERCLA requirement that all remediation actions have been
    taken before the date of property transfer. It does not, however,
    relieve us from full compliance with CERCLA.
        We had previously completed two such transfers: the former Fleet
    Industrial and Supply Center Oakland, CA was conveyed to the Port of
    Oakland in June 1999; the former Naval Air Station Memphis, TN was
    conveyed to the Municipality of Millington in December 1999. The FISC
    Oakland transfer was unique in that the Port Authority incorporated the
    cleanup with its own new construction and accepted the property at the
    same time. This strategy is one we hope all communities consider. We
    have completed four additional early transfers.
      --The former Fleet Industrial Supply Center Alameda Annex, CA was
            conveyed to the City of Alameda in July 2000, twenty months
            earlier than planned. This conveyance transferred 147 acres
            that will be used for new housing.
      --Fifty-one acres of the former Naval Training Center San Diego, CA
            was conveyed to the San Diego Unified Port District in February
            for support of airport operations. This conveyance included an
            Environmental Services Cooperative Agreement for $3.7 million,
            which requires the Port Authority to conduct the required
            environmental remediation. This work will be done concurrent
            with airport projects at a savings of $3.4 million and four
            months ahead of schedule.
      --The former Naval Air Station, Guam, consisting of approximately
            1,800 acres, was transferred to the Guam Aviation Authority in
            September 2000, twelve months earlier than planned. This
            conveyance also included an Environmental Services Cooperative
            Agreement for $10 million. This agreement allows the Government
            of Guam to improve the Island's water distribution system while
            satisfying Navy's requirements for remediation of the ground
            water.
      --The fourth early transfer consisted of several parcels of property,
            approximately 1,500 acres, located on Guam to the local
            government. This transfer occurred in April 2001 six months
            earlier than planned.
    Property Disposal
        The Navy must dispose of 583 parcels of land covering 163 thousand
    acres at 90 BRAC bases. Each BRAC base has a disposal strategy tailored
    to Local Redevelopment Authorities (LRAs) reuse plans, environmental
    cleanup timetables, National Environmental Policy Act (NEPA)
    documentation, conveyance plans, and schedules.
        Through the end of fiscal year 2000, we had conveyed through
    economic development conveyances, negotiated sales, public sales, or
    Public Benefit Transfer over 62,500 acres and the total is over 67,000
    today.
                                     energy
        This year has been a challenge for the Navy as far as energy supply
    and costs. Due to limited supply of electricity and natural gas in the
    Western United States, many installations have faced increased costs to
    operate the base. The average price has increased 8 percent per
    megawatt hour of electricity and 18 percent for cubic foot of natural
    gas between fiscal years 1999 to 2000. The Department has taken
    aggressive actions to reduce usage, invest in energy saving projects,
    and procure electricity on long-term contracts. These actions will
    assist in providing energy price stability over the next several years.
    So far the supply problems in California have not adversely effected
    military operations.
      --Energy Efficiency.--Executive Order 13123 requires federal agencies
            to reduce energy consumption 30 percent by fiscal year 2005 and
            35 percent by fiscal year 2010, using fiscal year 1985 as the
            baseline. To meet the fiscal year 2005 goal, we must cut
            consumption at a rate of 1.5 percent per year, and then at a
            rate of 1 percent per year from fiscal year 2006 through fiscal
            year 2010. I am pleased to report that we have exceeded that
            benchmark with a cumulative reduction of 25.8 percent through
            fiscal year 2000. We are using a variety of efficiency
            technologies and energy awareness programs, combined with
            internal and third party financing available through Demand-
            side Management and Energy Savings Performance Contracts to
            reduce energy consumption to meet these goals.
      --Privatization of Utilities.--Defense Reform Initiative Directive 49
            directed the Services to privatize all their natural gas,
            water, wastewater and electrical systems except where
            uneconomical or where the systems are needed for unique
            security reasons. This is expected to reduce costs while
            providing quality utility services. The Department of the Navy
            has a total of 908 systems at 122 activities worldwide. There
            are three key Department of Defense milestones: a determination
            by 30 September 2000 of which utility systems to try to
            privatize; issue all Requests for Proposals by 30 September
            2001; and award all contracts by 30 September 2003. We are
            making good progress on this effort. The first to be privatized
            was Refuse Derived Fuel Power Plant at Naval Shipyard Norfolk,
            VA in July 1999.
                     fiscal year 2002 legislative proposals
        There are a number of legislative proposals accompanying the
    budget. I would like to highlight a few of them and ask your support.
      --Use of gift funds.--This proposal would enable the Department of
            Defense to use gift funds, as well as family housing operations
            and maintenance funds, to support the maintenance and repair of
            family housing.
      --Increase the minor construction threshold.--Increase the threshold
            from $500,000 to $750,000 for general projects and from
            $1,000,000 to $1,500,000 for life safety projects. This would
            allow the execution of construction projects that would
            otherwise have to await MILCON funds and possibly incur a two
            or three year delay.
      --Reimburse EPA for certain costs in connection with Hooper Sands
            site in South Berwick, Maine.--This proposal would reimburse
            $1.0 million to EPA for final costs they incurred for cleanup
            of contamination in accordance with a recent agreement between
            EPA and the Department of the Navy.
      --Increase Davis-Bacon and Service Contract Acts Threshold.--This
            proposal would increase the threshold from $2,000/$2,500 to the
            ``simplified acquisition threshold,'' which is currently
            $100,000. This would provide greater flexibility in purchasing
            small, short-term construction and service requirements.
                                   conclusion
        In conclusion, I believe the DON infrastructure program is in a
    strong position as we begin the new millennium. We have robust military
    construction and family housing construction programs that are focused
    on fixing what we own. We are showing real progress on PPV housing
    projects. We are proceeding with numerous promising initiatives to make
    our infrastructure more responsive and less costly. Although we are
    making progress in cleanup and property disposal from previous rounds
    of BRAC, current funding levels are inadequate to fund our legal
    requirements or take advantage of promising early transfer
    opportunities.
        That concludes my statement. I appreciate the support that this
    Committee and its Staff has given us in the past, and I look forward to
    continued close cooperation through the remainder of the
    Administration.

        Senator Feinstein. Thank you. I would like to acknowledge
    the presence of the ranking member, the Senator from Texas,
    Senator Hutchison. Welcome. Do you have a statement?
        Senator Hutchison. I don't. I have read the testimony and I
    want to listen and ask questions.
        Senator Feinstein. All right. And I would also like to
    acknowledge the presence of the senator from Louisiana, Senator
    Landrieu.
        Senator Landrieu. Thank you, Madam Chair. I do not have an
    opening statement, and because I am interested in the
    representations of the panel I do have a couple of questions at
    the appropriate time.
        Senator Feinstein. Fine. I thought what we would do, if it
    is agreeable with both members, is just proceed and give all
    the testimony at one time and then we can be relaxed and ask
    some questions. Admiral Johnson, perhaps we will go to you
    next.
        Admiral Johnson. Madam Chairman, I have no statement, no
    verbal statement.
        Senator Feinstein. All right. Then perhaps I will begin
    with my questions. Yesterday, Dr. Zackheim testified before
    this committee that the Navy's BRAC must-pay shortfall in
    fiscal year 2002 has been revised and that the revised total is
    $63.3 million instead of $92 million. Do you agree with that
    recalculation? And if not, what is your estimate of the
    shortfall?
        Mr. Holaday. We believe that the base number is $92
    million, as we have said in our testimony. We are continuing to
    take a hard look at that number to see if there are projects
    that could be deferred or delayed until fiscal year 2003. That
    $92 million includes projects that are legal requirements that
    involve life, health and safety issues and involve commitments
    that we have made to communities.
        In my view, the commitments that we have made to the
    communities are just as important as requirements laid on us by
    the regulators. So, we are using that $92 million as our
    baseline figure. Although we continue to look at it and examine
    it to see if we can lower it, that is our starting point.
        Senator Feinstein. Is it true that you've identified $30
    million in prior year unexpended BRAC monies that you intend to
    apply to this shortfall?
        Mr. Holaday. Yes, we have identified $30 million in prior
    year BRAC savings, some of that money we have already used to
    meet a commitment we have made to the community of Vallejo-
    Mare-Island to help fund an early transfer agreement there.
        Senator Feinstein. That's $11 million immediately?
        Mr. Holaday Yes, Madam. The balance of money will be
    available immediately to help us meet the shortfall.
        Senator Feinstein. So, that is $73 million.
        Mr. Holaday. $11 million would have been on top of the $92
    million.
        Senator Feinstein. Oh, $11 million on top of the $92
    million. But you stand by the 92-must-pay figure.
        Mr. Holaday. Yes, ma'am. At this time, as I have said, we
    are beginning to look at it to see if we can make adjustments
    in it.
        Senator Feinstein. So, this then does not affect the $46
    million must-pay bill for Hunter's Point.
        Mr. Holaday. The $46 million is included in the $92 million
    as part of the shortfall.
        Senator Feinstein. So, you still consider that a must-pay
    bill.
        Mr. Holaday. Yes ma'am. We are looking at that. There may
    be an opportunity for us to defer some of those costs. Our
    commitment at Hunter's Point is to fully meet the regulatory
    requirements and do the clean up as we have agreed to with the
    community.
        Senator Feinstein. As I spoke with Dr. Zackheim yesterday,
    would the Navy put out an RFP for bids for Hunter's Point? I
    think they allocated $110 million, $120 million on that bid and
    they got no bids back? Do I understand that you are prepared to
    put that RFP out again?
        Mr. Holaday. The RFP that we put on the street had no cost
    cap in it. It was a fixed price contract. We had two proposers
    that came back and submitted their technical qualifications to
    us. It was a two-step bid. They submitted an original proposal.
    When we asked them for price quotes, both proposers decided to
    withdraw from the process. They said that the proposal to do a
    fixed price contract was not proper given the uncertainties of
    the clean up that needed to be done. The Department already has
    a contractor in place that is working to clean up the property.
    We tend to keep on pace with the contractor we have in place.
        Senator Feinstein. So, you are not putting out another RFP?
        Mr. Holaday. No ma'am. We are not. Admiral Johnson is
    responsible for executing that contract. He may have something
    to add.
        Senator Feinstein. How are you going to execute the
    contract?
        Admiral Johnson. The contract that Secretary Holaday
    referred to has no proposers on it. We do have a contract in
    place that is a cost-plus award feature that we have utilized
    in a number of other areas has a lot of capacity in your area
    and we are using that contract vehicle to maintain pace and
    continue cleaning up the parcels at Hunter's Point.
        Senator Feinstein. But would it be possible for us to get
    in writing your commitment to this base in terms of clean up
    and the amount of funds that you will expend to accomplish that
    clean up?
        Mr. Holaday. Certainly.
        Senator Feinstein. I appreciate that very much.
        [The information follows:]

        The Department of the Navy would like to assure the Chairman of the
    Subcommittee on Military Construction that Navy is committed to
    complying with the terms and conditions of the Memorandum of Agreement
    concerning the conveyance and cleanup of Hunters Point Naval Shipyard,
    executed between the Navy and the City of San Francisco on November 2,
    2000. The Navy is committed to securing the funds necessary to
    accomplish the work currently identified. Should additional assessment
    or remediation be required due to new discoveries of contamination,
    Navy will seek additional funding in the next budget cycle.

        Senator Feinstein. What do you anticipate your BRAC funding
    needs to be in 2003, and what steps are you taking now to
    ensure that you will not face another shortfall next year? And
    part of that question is also, do you think you can accommodate
    the shortfall in the 2002 budget?
        Mr. Holaday. Let me answer the last part of that question
    if I may. We are doing our best to identify first, the actual
    nature of the shortfall in 2002 whether it is $92 million or a
    little bit more or less. We are also taking a hard look to see
    if we can find other unexpended balances other than the $30
    million that we have already discussed to help us meet the
    shortfall of 2002. And we are also examining other
    opportunities that might be available to us to be able to meet
    the shortfall.
        As regards to 2003, it is too early for me to be able to
    say what our requirements are for 2003. We are right in the
    middle of the budget process--the beginning of the budget
    process for fiscal year 2003. We have not identified a hard
    number yet. Rather than give you a wrong number or guess, I
    would prefer to defer that question if I may. The one
    commitment that I can make to you is that we are going to make
    sure in fiscal year 2003 and in future years that we fully meet
    all of our commitments, all of our requirements, so we don't
    have this same problem again.
        Senator Feinstein. Thank you very much. I would like to ask
    a question about Vieques and the impact of the departure of the
    Navy from Vieques in 2003, as yesterday we learned would be the
    case, and how that would impact on associated naval facilities
    in the area of Puerto Rico? Has the Navy developed a plan to
    address the operational changes that will occur in Puerto Rico?
    Will facilities there be reduced? And how has the military
    construction plan for Puerto Rico changed because of this
    relocation to take place in 2003?
        Mr. Holaday. The Department has not yet made a
    determination on what additional facilities--excuse me, what
    facilities might remain after we withdraw from Vieques. Both
    the Commandant, the CNO and the Secretary have said that we are
    going to take a hard look at our requirements within Puerto
    Rico for military facilities after we leave Vieques. But we
    have not yet done that. We have a study that is just beginning
    with the Center for Naval Analysis that is looking for
    alternative training sites so that we are going to be able to
    properly train our Marines and sailors and be sure that they
    are able to go on deployment at the readiness state that is
    necessary for them to meet that commitment. That study is just
    begun and it is too early for me to comment.
        Senator Feinstein. Before I turn to the ranking member, Mr.
    Secretary, as I said to the Army yesterday, could you provide
    to the committee the list of the unfunded priorities for the
    Navy and the Marine Corps ranked in priority order?
        Mr. Holaday. Yes, ma'am.
        [The information follows:]

        The list of unfunded priorities for the Navy and Marine Corps
    ranked in priority order are provided in the attached spreadsheets.

        Senator Feinstein. Thank you very much. Senator Hutchison.
        Senator Hutchison. Thank you Madam Chairman. In talking
    about the BRAC expenditures and the shortfalls, I didn't see in
    your testimony anything about the BRAC savings. And we are
    still in the process of trying to close bases from four BRACs.
    We are being asked to consider another one, but I am still
    skeptical about the savings that might be derived from a BRAC.
    And I would like to know if you can quantify the savings that
    we are reaping from any of the BRACs from the Navy or Marine
    standpoint.
        Mr. Holaday. The numbers as I recall them are that we have
    spent approximately $10 billion to execute the first four
    rounds of BRAC--BRAC 1988, 1991, 1993 and 1995. By about the
    year 2000, we have begun accruing savings, and we had saved
    that $10 billion roughly by that time by the year 2000. And now
    we are accruing savings at about the rate of $2.5 billion a
    year as a result of those first four rounds of BRAC. Those
    savings are a combination of real dollar savings and cost
    avoidances--money that we don't have to spend on facilities
    that we no longer have.
        It is very hard. None of those savings have a serial number
    or barcode on them so I can't tell you where exactly the money
    went within in the Defense budget but I do know that those are
    the figures that we calculated and that have been verified by
    GAO audit.
        Senator Hutchison. In your accounting, do you not account
    for BRAC savings and BRAC expenditures in one place so that
    there wouldn't be a shortfall in the expenses, so that they
    could be offset with savings.
        Mr. Holaday. No, ma'am, we did not.
        Senator Feinstein. I beg your pardon. I didn't hear your
    answer.
        Mr. Holaday. No, ma'am, we did not account for them in a
    single place.
        Senator Hutchison. So, the BRAC savings go wherever you
    think that there is another priority? Or does it just go into
    the general Navy?
        Mr. Holaday. Yes ma'am. It goes into the general Navy
    accounts and is used within those accounts.
        Senator Hutchison. Within general accounts?
        Mr. Holaday. Yes, to pay for things like shipbuilding or
    aviation or operations and maintenance. Again, as I say, there
    has been no specific attempt to identify exactly what funds
    were saved and exactly when those savings were expended.
        Senator Hutchison. It seems that if we do another BRAC,
    which I am not convinced the timing is right, but it seems that
    if we start getting savings, that taking the expenditures out
    of those savings might be a better accounting procedure. But we
    can look at that if we ever do another BRAC proposal.
        Senator Feinstein. I'm glad you said ``if ''.
        Senator Hutchison. I visited one of the earliest private
    housing projects that the Navy did down in South Texas. And the
    apartments that were being built were wonderful, just a whole
    lot better than the on-base housing frankly. But there were
    questions about whether they would be built to last and whether
    they would take the wear and tear as well as on-base
    construction. I haven't been back since that visit a couple of
    years ago, and would just ask if you have another evidence to
    know yet if they are standing up well, and if they still are
    better than the on-base housing turns out to be.
        Mr. Holaday. I confess that it has been 2 years since I
    have been down to that particular project also, Senator.
        Senator Hutchison. Well, it could be any. You have several
    now. That was one of the first, but you do have several. Do you
    have any general Navy view?
        Mr. Holaday. Admiral, would you like to comment on that?
        Admiral Johnson. I knew that was coming my way.
        Senator Hutchison. Hopefully, you've been more current than
    we.
        Admiral Johnson. I have not been there for about 2 years
    myself. I was there on the Atlantic Fleet staff. However, the
    first two projects were under the 95 authorities, if I am not
    mistaken, which were limited partnerships both in Everett,
    Washington and Kingsville-Ingleside. Those were 10 year
    arrangements and they are on private property. So, you would
    probably have a different level of construction, like an
    apartment in town. With the 1996 authorities, six of our
    public-private ventures that we are now awarding, it is a
    totally different relationship. It is a 50 year arrangement.
    There is provisions within the project to create an operating
    escrow-like account. And you have the ability with the property
    management group to maintain it on an annual basis, as well as
    periodically do the restoration and modernization required at
    different pieces of time--roofs, major heating and ventilation
    and air conditioning systems and that sort of thing. So, we
    have provided provisions within the limited liability company
    and public-private ventures to ensure that the facilities are
    in fact maintained over those 50 years. And when they are
    turned back to the Department of Defense in fifty years, we in
    fact get an asset back that is in good shape.
        Senator Hutchison. That sounds like a good plan. I would
    like to know as you go, if there is evidence that that is
    working; to make sure that it is, does take the wear and tear.
        Mr. Holaday. I might add that in those two early projects,
    the provision was made to start selling off some of those
    condominiums and townhomes at the 5 year point, up in Everett.
    And the priority to first buy the homes are the sailors that
    happen to be living in those homes. So, there is some standard
    there if you go and think about home ownership and that sort of
    thing. That same provision is not in public-private ventures
    because of the longer term.
        Senator Hutchison. I asked this yesterday for the Army but
    I will ask you as well. Are you able to focus as much on
    schools where there are bases that have schools? And if you are
    doing off-base housing the impact aid that is necessary to keep
    our military impacted school districts sort of on an even keel
    so that they can offer that quality public education?
        Mr. Holaday. Yes ma'am. We look at the school requirements
    that are associated with these projects when we do our analysis
    of the needs in the community. Two locations that I know that
    we have made some accommodation are in San Diego and a proposal
    we have coming forward in New Orleans very shortly, where we
    have actually made land available to the community so that can
    build a school on the same property as the housing is going
    into. With regard to impact aid, as we reduce our deficit and
    build housing for members who are housed today on military
    bases, then what we see is an increase in aid that is going to
    the school because they get paid at a higher Federal rate
    rather than the lower rate.
        Senator Hutchison. Are you going to make sure that you do
    keep that part of your priority spending so that it doesn't get
    shifted to a less priority?
        Mr. Holaday. Yes ma'am. Of course the impact aid comes
    primarily from the Department of Education and what we seem to
    see is that in general the communities are either kept whole or
    in some cases--depending on how much housing is built that is
    new--receive higher levels of impact aid than they have in the
    past.
        Senator Hutchison. I think it is very important that you
    maintain the interest and that you stay in the driver's seat on
    where the impact aid should go.
        Mr. Holaday. Yes ma'am.
        Senator Feinstein. Senator Landrieu.
        Senator Landrieu. Thank you Madam Chair. This is, I think,
    my first meeting of the subcommittee, so let me say please I am
    to be a part of this and much I look forward to working with
    you. Thank you.
        Senator Feinstein. I am delighted to have you as well.
        Senator Landrieu. And the ranking member and the other
    members because I think frankly in some ways this is really
    where the rubber hits the road in terms of our whole focus on
    trying to improve the readiness, the morale of our forces. And
    sometimes we concentrate, of course, on our long-range weapon
    systems and research and technology, which is of course very
    exciting and a very important part of our overall strategic
    development for the Nation. But some of just this bread and
    butter--these bread and butter issues--are kind of plain but
    absolutely necessary infrastructure in terms of housing and
    quality of life issues is really where I think more of our
    focus should be.
        And having worked with each individual member of this
    subcommittee in various different ways, I really think we all
    share this idea that as much as we can within the constraints
    of this budget recognizing that money doesn't grow on trees and
    we don't have ever as much as we usually need, but to try to
    allocate Madam Chair as much as possible to this area. Because
    I think sometimes it really is overlooked in the larger scheme
    of things but it is critically important. For instance, I think
    Mr. Holaday you said in your opening statement that with just
    the Air Force and the Navy that--I think your statement says--
    is 67 percent of Navy and 53 percent of Marine Corps facilities
    were evaluated to have serious deficiencies. That is a very
    high percentage, I think, of facilities just there with the
    Marine Corps and the Navy. Now assuming that that is a broad
    variety of facilities but housing would be included in that,
    the lack of daycare, the lack of adequate transportation or
    infrastructure requirements.
        We have often said that we might recruit soldiers and
    sailors, but retain families. And when we talk about resigning
    people up and keeping them in for more than a few years, it
    really gets down to the quality of life in terms of their
    housing, like the Senator from Texas said--educational
    opportunities, appropriate health care and the general quality
    of life of these bases. Now I maybe, Madam Chair, do not have
    the exact figures, but I think the MILCON budget has gone up 5
    or 6 percent. Is that correct? With inflation figured in? Or is
    it that much? And operations and maintenance is flat? Could we
    just get for the record what it is so that we know?
        Mr. Holaday. Yes, ma'am, we can give you the changes in the
    Department of the Navy's Military Construction and Operations
    and Maintenance programs.
        [The information follows:]

        The fiscal year 2002 MILCON Budget is 11 percent higher than the
    fiscal year 2001 MILCON Enacted Budget. The fiscal year 2002 Real
    Property Maintenance Budget is 5 percent higher than the fiscal year
    2001 Enacted Budget.

        Senator Landrieu. And just for the record, I think it would
    be helpful for us to know the percentages of increase because
    (a) we have these BRAC savings that will hopefully be coming
    back in this way to upgrade across the board many of the things
    we are talking about. And we need to be able to see it relative
    to increases in other parts of the budget so that we can tell
    if we really are making the kind of progress we need.
        My second point or question--and I am glad it was brought
    up about the school opportunity in Bellechase--is two things.
    One, to thank you all for pushing forward on the pilot housing
    program in Bellechase, which I think is one of the first
    pilots, Madam Chair, in the Nation for housing, and it is
    indeed a tremendous improvement. And from what I am able to
    tell by visiting local officials there, families themselves,
    the developers who in this case happen to be Louisiana
    contractors which is terrific because I kind of think in all of
    our States our local contractors are very able to do a lot of
    this work. And they of course won this bid that it is a so much
    of an improvement over what was there. And in addition, the new
    sort of creative way that you all have entered into a
    partnership to create what is essentially going to be a charter
    school--basically a military charter school and partnership
    between the base and the local school system. I think it is not
    only a benefit to the men and women serving there but in the
    general community, so it really is a win-win situation. I want
    to commend you on that.
        But let me ask, if I could finally because I don't want to
    exceed my time, can anybody give me an update in terms of the
    area of daycare and childcare, in terms of facilities and what
    percentage of the budget is either made available? Because as
    these young families get started off and our men and women are
    sent, deployed more frequently and sometimes for longer periods
    of time, I think the issue of quality child care is essential.
    And I just don't hear enough of that, and I didn't see anything
    in the testimony but maybe I missed it.
        Mr. Holaday. I would like to get back to you with a full
    response on that healthcare issue. I do know that we have at
    least one construction project--I believe it's in the Marine
    Corps this year--for a childcare center. I don't believe there
    are any Navy construction projects this year for childcare
    centers, but we do take it seriously. We like to make sure that
    family members are able to take care of their children and if
    you would give me the opportunity, I would like to come back.
        Senator Landrieu. I would be very interested and I think
    the other members of the committee would be too to see what
    percentage of our construction budget and our maintenance
    budget goes to provide opportunities for childcare. Because in
    the general population it is a great need, and I would have no
    doubt the same factors are present within our military
    families. And in some ways, you could almost argue more
    stressful situations when one parent is away for a long period
    of time. So, not only having regular daycare, but emergency
    daycare and sometimes 24 hour emergency operations are
    important for families struggling. One parent, they are alone
    for much of the time. So, those would be some of my concerns.
        But finally I want to work with you in every way I can
    because we do need to improve the quality of life for many
    reasons and this budget can do a lot of that. And I for one
    would like to work with you very closely.
        Mr. Holaday. Yes, ma'am, we will get that information back
    to you. I would also like to say that we have a very active and
    very successful program of providing childcare within homes,
    where one service member will be able to provide childcare
    within their home for families that are away.
        [The information follows:]

        In the fiscal year 2002 MILCON Budget we propose a new Child
    Development Center at Marine Corps Air Station, Beaufort, South
    Carolina ($6,060K). This is 0.5 percent of the fiscal year 2002 MILCON
    Budget submission.

        Senator Landrieu. Yes, I am aware of that and I think that
    is a very creative approach also.
        Mr. Holaday. That has to be kept in context of how we take
    care of this problem within our services.
        Senator Feinstein. Thank you, Senator. Senator Craig.

                        STATEMENT OF SENATOR LARRY CRAIG

        Senator Craig. Madam Chairman, I have a statement I would
    like put in the record.
        Senator Feinstein. As so ordered.
        [The statement follows:]

                  Prepared Statement of Senator Larry E. Craig

        Mr Chairman, it is indeed a pleasure to be here for the Navy panel
    which includes Duncan Holaday, Senior Civilian Official, Office of the
    Asst. Sec. of the Navy and representatives from the Navy's active duty
    and reserve component, and the Air Force panel which includes Jimmie
    Dishner, Deputy Asst. Sec. of the Air Force (installations), and
    representatives from the Air Forces active duty, reserve and Air
    National Guard.
        I'm glad to see that the fiscal year 2002 DOD amended budget puts
    people first by including strong measures to improve morale,
    recruiting, and retention. A key element of that commitment is to
    upgrade DOD's aging infrastructure. As we are all aware, the
    infrastructure of our nations military installations has deteriorated
    to the point of concern for our military's operational readiness. It is
    important that we reverse the trend of infrastructure deterioration and
    work hard to provide a quality work environment that improves our
    service members efficiency and effectiveness, eliminates impediments to
    mission accomplishment, and fosters recruitment and retention.
        But, it's not just the work environment which is essential to
    retention and readiness. I also believe that while we recruit
    individuals our goal should be to retain families. I was very pleased
    to see that the President's amended budget includes $4.1 billion for
    military family housing (MFH)--up from $3.6 billion in fiscal year
    2001. It intensifies efforts to improve the quality of military housing
    and accelerate the elimination of substandard housing.
        In addition to this, the budget includes the President's $400
    million blueprint initiative to improve housing for military people and
    their families: $107 million in military construction for barracks and
    $293 million for family housing. Implementation of the initiative
    emphasizes privatization in order to deliver better housing more
    quickly. I understand that recent OSD policy dictated that 80 percent
    of these funds be used for ``privatization''.
        But, not all military installations qualify for MFH privatization,
    and quite often it is at these installations that there is no
    acceptable alternative housing in the local area for lower ranking
    enlisted personnel. This places a tremendous burden on military members
    and their families, especially enlisted personnel who have very limited
    resources. For example, at Mountain Home AFB, ID it was determined that
    privatization was not economically feasible. The majority of housing on
    base is substandard. The housing in the community of Mountain Home is
    limited. The only other alternative is to commute from Boise, ID which
    is almost two hours away.
        To address the issue of replacing or improving substandard MFH, the
    military services have put together master plans that prioritize MFH by
    putting the worst housing first. This is a balanced approach that
    treats conventional and privatized MFH equally. In making policy
    decisions on MFH, we must ensure that the privatization initiative does
    not take out of priority order conventional on base housing and leave
    installations that don't qualify for privatization, have substandard on
    base MFH, and limited alternative housing off base without funding to
    make improvements. We must make sure that the worst gets taken care of
    first and not simply give projects priority that get more housing for
    less money. The good news is that the overall military construction
    budget includes a total of $5.9 billion--up from $5.3 billion in fiscal
    year 2001. It was especially important that this included funding
    increases for the National Guard and Reserve in recognition of the
    vital role the reserve components plays in the U.S. Defense posture.
        The budget also puts a priority on the construction or renovation
    of barracks, medical treatment facilities, schools, and physical
    fitness centers. Unfortunately, because of the reduced support facility
    requirements of the National Guard and Reserve installations, they
    don't necessarily benefit from these kinds of quality of life
    initiatives. I recommend that in future prioritization, that greater
    emphasis be given to the fact that for the guard and reserve a quality
    workplace improves their quality of life.
        I applaud the DOD's efforts to increase funding in order to meet
    current needs, and for beginning a long-range plan to streamline,
    restructure, and upgrade DOD facilities. I understand that the
    administration hopes the ``efficient facilities initiative (EFI)'' will
    achieve a 25 percent reduction in DOD facilities, and ultimately save
    $3.5 billion annually. As a Member of Congress, I look forward to
    reviewing the proposed EFI and providing input.
        I am grateful that the proposed increase in the military
    construction fiscal year 2002 budget demonstrates a commitment to our
    nations military members and their families. I look forward to your
    testimony as we develop a budget that recognizes the immeasurable
    contributions our military members have made to this great country.
        As a fiscal conservative, I believe it's critical to have a
    balanced federal budget. In the long run, a balanced budget will serve
    all Americans, including our military. But, I also know that along with
    this commitment to a balanced budget, comes the responsibility to
    ensure our government provides a quality work and living environment
    for our military members and their families.
        In closing, Mr. Chairman, there is no way to over emphasize the
    honor and respect this nation owes the military men and women who
    sacrifice so much. I look forward to working with the Office of the
    Secretary of Defense (OSD) and service chiefs who continue to
    contribute to the long-range vision for the DOD.

        Senator Craig. I am pleased to see these gentleman here. I
    am pleased to see these increases in budget and on the human
    side of a very important defense equation. With that I have no
    questions of these gentlemen.
        Senator Feinstein. Just for the record, the MILCON budget
    is increased from $8.8 billion to $10 billion. That is a 14
    percent increase over fiscal year 2001.
        Senator Landrieu. Thank you.
        Senator Feinstein. Thank you. I would just like to recap,
    this $92 million must-pay for the Navy. And just for the
    record, that includes Hunter's Point--$46.1 million, Marine
    Corps Air Station El Toro--$12.3 million, Naval Air Station
    Alameda--$12.2 million, Naval Shipyard Long Beach--$2.6
    million, Naval Air Station Moffitt--$4.8 million, and Naval
    Station Treasure Island--$4.8 million. And then on top of that,
    on top of the $92 million, there is $11 million for Mare
    Island. Is that correct?
        Mr. Holaday. Ma'am, I believe there is another $5.8 million
    project for Barber's Point. That is part of that $92 million.
        Senator Feinstein. Good for you. Thank you.
        Mr. Holaday. And I believe that the $11 million for Mare
    Island is above that. But as I said earlier, we already agreed
    to go ahead and proceed with that.
        Senator Feinstein. I would like to ask about the Guam
    facility, Admiral Blair's number one priority if I might. And
    that is the $9.4 million for the repair facility of Guam. My
    understanding is that it is for the advanced placement of
    nuclear submarines and their repair. Is that correct?
        Admiral Johnson. Yes, Madam Chairman, there is a submarine
    tender that is in Guam not all the time. As they look at
    positioning additional submarines, this would provide some
    additional waterfront maintenance shops, some storage and
    utilities and essentially some facilities that when the tender
    is not there, those facilities would substitute for the tender
    to a degree, to take care of the submarines that might be in
    homeport at that time.
        Senator Feinstein. Somehow that number three or four
    submarines, nuclear subs, can be ported there. Is that correct?
        Admiral Johnson. I am not exactly sure if the decision has
    been made on the total number. I would like to take that for
    the record. Three is the number that sticks in my mind as well,
    but being civil engineer as opposed to a submarine engineer, I
    would like to take that for the record.
        Senator Feinstein. Because the amount was based on that,
    was my understanding. Anyone like to add to that?
        Mr. Holaday. If we could come back to you on that. I think
    three is right, but we would just like to verify that.
        [The information follows:]

        Three submarines are planned.

        Senator Feinstein. Could you accelerate the clean up at
    Hunter's Point in 2002 with additional funding in the budget,
    Secretary Holaday? Or do you believe you have enough, as much
    as you can use?
        Mr. Holaday. If we count the unfunded requirement also, I
    think we have about $9 million in the funded portion in the
    budget for Hunter's Point. We could certainly spend an
    additional $25 to $30 million there without any problem, if we
    were to receive it.
        Senator Feinstein. And you could do it in the fiscal year.
        Mr. Holaday. Fiscal year 2002, yes.
        Senator Feinstein. $29 or 30 million.
        Mr. Holaday. $25 million to $30 million.
        Senator Feinstein. $25 million to $30 million. Okay.
    Senator Hutchison, did you have any additional questions?
        Senator Hutchison. I did. I just had one more question. Has
    the Navy made an estimate of what its excess facilities are
    that would be part of a BRAC realignment.
        Mr. Holaday. No, ma'am, we have not. Neither the Navy nor
    the Marine Corps.
        Senator Feinstein. Could I just clear this up? Are you
    saying that of the $46 million for Hunter's Point, you can only
    spend $25 million or $30 million?
        Mr. Holaday. We know that we can spend in the
    neighborhood--over and above the $9 million that is in the base
    budget--we know we can spend, because I asked an execution
    question just the other day, we can spend around $30 million
    more than the $9 million which is in the budget. I am taking a
    hard look at the $46 million figure, which another $16 million
    on top of that $30 million I just mentioned, to see if it is
    required in 2002 or if we can defer part of that to 2003 and
    still meet the commitment that we have to do the clean up
    standards, and to the commitment we made to the community.
        Senator Feinstein. As you understand, you have not met the
    clean up standards.
        Mr. Holaday. Yes ma'am.
        Senator Feinstein. And I want you to know, I am very
    concerned about it.
        Mr. Holaday. Yes ma'am, so are we.
        Senator Feinstein. I will trust that you will make this a
    priority, so the untoward things that have happened out there
    will cease.
        Mr. Holaday. Yes, ma'am.
        Senator Feinstein. Thank you very much. I appreciate that.
    I take you at your word.
        Mr. Holaday. You asked me to give that to you in writing
    earlier, so I believe you.
        Senator Feinstein. Thank you. If no further questions--if
    any of the panel has a comment they would like to make, if not
    then we will proceed with the next panel. Thank you very much
    gentlemen.
                          Department of the Air Force

    STATEMENT OF JIMMY G. DISHNER, DEPUTY ASSISTANT
                SECRETARY OF THE AIR FORCE FOR
                INSTALLATIONS
    ACCOMPANIED BY:
            MAJOR GENERAL EARNEST O. ROBBINS, II, HQ USAF, CIVIL ENGINEER,
                DEPUTY CHIEF OF STAFF, INSTALLATIONS AND LOGISTICS
            BRIGADIER GENERAL PAUL S. KIMMEL, CHIEF OPERATING OFFICER, AIR
                NATIONAL GUARD
            BRIGADIER GENERAL ROBERT E. DUIGNAN, DEPUTY TO THE CHIEF, AIR
                FORCE RESERVE
        Senator Feinstein. The Subcommittee on Military
    Construction will now continue with testimony of
    representatives from the Air Force, the Air National Guard and
    the Air Force Reserve. I am very pleased to welcome Mr. Jimmy
    Dishner, Deputy Assistant Secretary of the Air Force for
    Installations; Major General Earnest Robbins, the Air Force
    Civil Engineer; Brigadier General Paul Kimmel of the Air
    National Guard; and Brigadier General Robert E. Duignan from
    the Air Force Reserve. I would also note that General Weaver of
    the Air National Guard had planned to attend the hearing, but
    had a last minute meeting with the Secretary of the Air Force.
    But we are very pleased to welcome General Kimmel in his stead.
        Mr. Secretary, once again, because of the time, I
    understand you are the only one that is going to be making a
    statement, so feel free if you wish to give it or put it in the
    record and summarize your comments, however you wish to
    proceed.
        Mr. Dishner. I will summarize my comments if I may, Madam
    Chairman.
        Senator Feinstein. Fine.

                         STATEMENT OF JIMMY G. DISHNER

        Mr. Dishner. I appreciate the opportunity as all the
    generals with me to appear before you and present the
    Department of the Air Force fiscal year 2002 Military
    Construction (MILCON) Program. Our Total Force MILCON and
    Military Family Housing programs play a vital role supporting
    the Air Force operational needs, work place productivity and
    quality of life. Two of the top four issues, improving the
    workplace environment and providing better housing, rely on the
    success of our MILCON and Military Family Housing programs. For
    several years reduced funding for our facilities has led to a
    steady deterioration in Air Force infrastructure. The good news
    is that our fiscal year 2002 Total Force MILCON budget request
    is double what it was last year and stands at over $1.2
    billion. With this fiscal year 2002 budget and the investment
    levels projected through the Future Years Defense Program, we
    will reduce our recapitalization rate in fiscal year 2002,
    still far below our desired rate of 57 to 67 years, but this is
    clearly a step in the right direction.
        We must continue to balance funding among the priorities of
    people, readiness, modernization, and infrastructure. Increases
    in the overall defense budget this year will help meet the most
    pressing Air Force needs. Although we continue to operate and
    support the world's premier aerospace force, we cannot correct
    overnight the negative impact reduced funding has had on our
    infrastructure.
        For fiscal year 2002, we are requesting a program of $2.7
    billion for our Total Force MILCON, Military Family Housing and
    Efficient Facilities Initiative (EFI). This request is
    comprised of $1.1 billion for traditional Active MILCON, $1.4
    billion for Military Family Housing, $149.1 million for Air
    National Guard traditional MILCON and $53.7 million for Air
    Force Reserve traditional MILCON. These Air Force programs were
    developed using a facility investment strategy with the
    following objectives: (1) accommodate new missions, (2) invest
    in quality of life improvements, (3) continue environmental
    leadership, (4) sustain, restore and modernize our
    infrastructure, (5) optimize use of public and private
    resources, and (6) Continue our demolition programs.
        Madam Chairman, the Air Force clearly could not maintain
    the quality of our facilities and the advantages they provide
    without the strong support we have always received from this
    committee and for that we are most grateful. Madam Chairman, I
    would like to thank this committee for your support of Air
    Force and DOD former BRACs that we now refer to as EFI
    programs. Your help on legislation and funding has been
    instrumental in allowing communities such as the former Lowry
    Air Force Base in Colorado to expedite their redevelopment
    efforts. This is a win-win for the local communities and the
    Department of Defense.
        The Air Force completed its final closure and realignment
    actions on July 13th, 2001, as required by the statute and is
    requesting the funding that is required to fulfill its
    environmental clean up responsibilities, protect and care for
    the properties until their eventual transfer to other owners.
    The Air Force remains committed to timely environmental
    restoration that is protective of human health at our closure
    bases and is asking for the funds necessary to continue that
    process to a successful conclusion.
        Madam Chairman, I would like to make one final comment on
    base closure. We cannot overemphasize how the reduction in Air
    Force manpower and force structure have outpaced those in
    infrastructure. Only additional base closure rounds can correct
    this imbalance. We cannot afford to continue spending our
    scarce resources on unneeded infrastructure.

                               Prepared Statement

        In conclusion, Madam Chairman, I thank the committee for
    its strong support of Air Force Military Construction and
    Family Housing. With your help, we will make sure to meet the
    most urgent needs of commanders in the field while providing
    quality facilities for the men and women who serve in and are
    the backbone of the most respected aerospace force in the
    world. We stand ready to answer any questions you may have. We
    are very happy to be here, ma'am.
        [The statement follows:]

                     Prepared Statement of Jimmy G. Dishner

                                  introduction
        Madame Chairman and members of the committee, good morning. I
    appreciate the opportunity to appear before you and present the
    Department of the Air Force fiscal year 2002 military construction
    program. Today, I will share with the committee our investment
    strategies for facilities, housing, utility systems, and environmental
    programs.
                                    overview
        Our Total Force MILCON and Military Family Housing programs play a
    vital role supporting Air Force operational needs, work place
    productivity and Quality of Life. Admiral David Jeremiah (U.S. Navy,
    retired) acknowledged this fact in the recent Special Department of
    Defense report on Morale and Quality of Life. Two of the top four
    issues, improving the workplace environment and providing better
    housing, rely on the success of our MILCON and Military Family Housing
    programs.
        For several years reduced funding for our facilities has led to a
    steady deterioration in Air Force infrastructure. The good news is that
    our fiscal year 2002 Total Force MILCON budget request is double what
    it was last year and stands at over $1.2 billion. With this fiscal year
    2002 budget and the investment levels projected through the Future
    Years Defense Program, we will reduce our recapitalization rate from
    its present 250-plus years to about a 165-year recapitalization rate in
    fiscal year 2002, still far below our desired rate of recapitalization,
    but this is clearly a step in the right direction.
        However, even with additional MILCON funding in fiscal year 2002,
    the Air Force infrastructure challenges remain the same. We must
    continue to balance funding among the priorities of people, readiness,
    modernization, and infrastructure. Increases in the overall defense
    budget this year will help meet the most pressing Air Force needs.
    However, previous underfunding of military construction and operation
    and maintenance required us to develop ``work-arounds,'' which impacted
    the Air Force's combat capability, operational efficiency, and quality
    of workplace environment. Although we continue to operate and support
    the world's premier aerospace force, we cannot correct overnight the
    negative impact reduced funding has had on our infrastructure.
        For fiscal year 2002, we are requesting a program of $2.7 billion
    for our total force MILCON, Military Family Housing and BRAC. This
    request is comprised of $1.1 billion for traditional Active MILCON,
    $1.4 billion for Military Family Housing, $149.1 million for Air
    National Guard traditional MILCON and $53.7 million for Air Force
    Reserve traditional MILCON. These Air Force programs were developed
    using a facility investment strategy with the following objectives:
      --Accommodate new missions
      --Invest in Quality of Life improvements
      --Continue environmental leadership
      --Sustain, Restore and Modernize our Infrastructure
      --Optimize use of public and private resources, and
      --Continue our demolition programs
        Madame Chairman, the Air Force clearly could not maintain the
    quality of our facilities and the advantages they provide without the
    strong support we have always received from this committee and for that
    we are most grateful. With this background, I would like to discuss our
    military construction budget request for fiscal year 2002.
                            accommodate new missions
        New weapon systems will provide the rapid, precise, global
    capability that enables our combat commanders to respond quickly to
    conflicts in support of national security objectives. Our fiscal year
    2002 new mission MILCON program consists of 32 projects, totaling $283
    million. We have made assumptions about the shape of our force in the
    future; if the upcoming QDR makes significant shifts in million we will
    adjust our construction program accordingly.
        These projects support a number of weapon system beddowns; two
    worthy of mention are the F-22 fighter, and the C-17 airlifter. The F-
    22 Raptor is the Air Force's next generation air superiority fighter.
    The location for the F-22 flight-training program is Tyndall Air Force
    Base, Florida with Langley Air Force Base, Virginia serving as the
    first operational base. The fiscal year 2002 MILCON includes two F-22
    projects at Tyndall totaling $15 million and three F-22 projects at
    Langley totaling $39 million.
        The C-17 Globemaster III aircraft is replacing our fleet of C-141
    Starlifters. The C-17 provides rapid global mobility by combining the
    C-141 air speed and long-range transport capabilities; the C-5
    capability to carry outsized cargo, and the C-130 capability to land
    directly on short, forward-located airstrips. To support this program,
    our request includes a $5 million facility at McChord Air Force Base,
    Washington, two Air National Guard projects for $22.2M at Jackson
    International Airport, Mississippi, and five projects for $36.5M at
    McGuire AFB, New Jersey.
        Other new mission requirements in fiscal year 2002 include three C-
    130J projects at: Little Rock Air Force Base, Arkansas, Keesler AFB
    Mississippi (RES) and Quonset, Rhode Island (ANG); the Space Based
    Infrared Radar System (SBIRS) at Schriever Air Force Base, Colorado;
    and a Telescopic/Atmosphere Compensation Lab at Kirtland Air Force
    Base, New Mexico.
                           invest in quality of life
        The Air Force is committed to taking care of our people and their
    families. Quality of life initiatives acknowledge the increasing
    sacrifices our airmen make in support of the nation and are pivotal to
    recruiting and retaining our best. When our members deploy, they want
    to know that their families are stable, safe and secure. Their welfare
    is a critical factor to our overall combat readiness, and our family
    housing program, dormitory program, and other quality of life
    initiatives reflect our commitment to provide them the facilities they
    deserve.
        Our Air Force Family Housing Master Plan provides the road map for
    our Housing MILCON, O&M, and privatization efforts to meet the
    Department of Defense goal of providing safe, affordable and adequate
    housing for our members by 2010. In this regard, I would like to
    express my appreciation to the President for his support of our efforts
    to improve the quality of our housing and the additional funding he has
    provided.
        The $518 million fiscal year 2002 MFH replacement and improvement
    program will replace more than 700 worn-out units at 8 separate
    locations, improve more than 2,100 units at 15 locations, and supports
    privatization of more than 10,000 units at 12 locations. I'll discuss
    our housing privatization program in more detail in a few minutes. Our
    fiscal year 2002 housing operations & maintenance program totals $869
    million.
        Just as we are committed to provide adequate housing for families,
    we have an ambitious program to house our single junior enlisted
    personnel. The Air Force Dormitory Master Plan is a comprehensive,
    requirements-based plan, which identifies the projected unaccompanied
    enlisted housing requirement and prioritizes MILCON project
    requirements. The plan includes a three-phased dormitory investment
    strategy. The three phases are: (1) Fund the replacement or conversion
    of all permanent party central latrine dormitories; (2) construct new
    facilities to eliminate the deficit of dormitory rooms; and (3) convert
    or replace existing dormitories at the end of their useful life using
    the Department of Defense 1+1 room standard. Phase 1 is complete, and
    we are now concentrating on the final two phases of the investment
    strategy. Our total requirement is 75,200 Air Force dormitory rooms. We
    currently have a deficit of 11,400 rooms and the existing inventory
    includes 5,300 inadequate rooms. The remaining cost to execute the Air
    Force Dormitory Master Plan and achieve the fiscal year 2009 Air Force
    goal to buy out our deficit and replace our worst existing dormitories
    is just over $1 billion.
        The fiscal year 2002 dormitory program consists of 13 enlisted
    dormitory projects, with 8 projects at 7 CONUS installations, and 5
    projects overseas, for a total of $157 million. On behalf of all the
    airmen affected by this important quality of life initiative, I want to
    thank the committee. We could never have made it this far without your
    tremendous support of our Dormitory modernization program.
        Other traditional quality of life investments include community
    facilities such as fitness centers and child development centers, vital
    in our efforts to attract and retain high quality people and their
    families. A strong sense of community is an important element of the
    Air Force way of life, and these facilities are important to that sense
    of community as well as to the physical and psychological well being of
    our airmen. The fiscal year 2002 MILCON program includes fitness
    centers at F.E. Warren AFB, Wyoming, Laughlin AFB, Texas, Kunsan AB,
    Korea, Mildenhall AB, United Kingdom, and Buckley AFB, CO.
        Overseas quality of life continues to be a priority to us. Even
    though the majority of our Air Force personnel are assigned in the
    United States, 21 percent of our forces are serving overseas. The Air
    Force overseas base structure has stabilized after years of closures
    and force structure realignments. Now, old and progressively
    deteriorating infrastructure at these bases requires increased
    investment. Our fiscal year 2002 MILCON program for our European and
    Pacific installations totals $273 million totaling 26 projects. The
    program consists of a variety of quality of life and infrastructure
    projects in Korea, the United Kingdom, Germany, Italy, and Turkey as
    well as critical facilities on Guam, Wake Island, and Greenland. We ask
    for your support of these operational and quality of life projects.
        Rounding out the MILCON fiscal year 2002 request are the planning &
    design and unspecified minor construction requirements. Our request for
    fiscal year 2002 planning and design is $87 million. These funds are
    required to accomplish the design for current mission projects added as
    a result of the amended budget for the fiscal year 2002 program,
    complete design of the fiscal year 2003 construction program, and to
    start design of our fiscal year 2004 projects. We have requested $21
    million in fiscal year 2002 for our total force unspecified minor
    construction program, which is our primary means of funding small,
    unforeseen projects that cannot wait for normal MILCON.
                       continue environmental leadership
        The Air Force continues to enhance mission capability and sustain
    the public trust through prudent environmental stewardship. We are
    meeting our environmental cleanup commitments and Department of Defense
    Planning Guidance goals through effective outreach and partnering with
    Federal and State regulators and team building with stakeholders and
    communities. Meeting our legal obligations remains a primary objective
    of the Air Force Environmental Quality program. Our record of
    environmental stewardship illustrates our environmental ethic, both
    here in the United States and overseas. In addition to ensuring our
    operations comply with all environmental regulations and laws, we are
    dedicated to enhancing our already open relationships with both the
    regulatory community and the neighborhoods around our installations. We
    continue to seek partnerships with local regulatory and commercial
    sector counterparts to share ideas and create an atmosphere of better
    understanding and trust. By focusing on our principles of enhancing
    operational readiness, being a good neighbor, and leveraging our
    resources, we remain a leader in environmental compliance, cleanup, and
    pollution prevention. We have reduced our open enforcement actions from
    263 in fiscal year 1992 to just 10 at the end of fiscal year 2000.
        Our environmental compliance MILCON program in fiscal year 2002
    includes three projects totaling $10.2 million in support of the Clean
    Water Act. Our program includes restoring the environment, and
    constructing or modifying two fire-training facilities to meet
    environmental requirements. These fire-training facilities are located
    at Robins AFB, Georgia and Andrews AFB, Maryland. In addition, we are
    upgrading the wastewater system at Eareckson AS, Alaska. All of these
    projects satisfy DOD Class-1 requirements, which refer to conditions or
    facilities currently out of compliance with environmental laws or
    regulations, including those subject to a compliance agreement, or
    refer to projects and activities which, if not corrected, will result
    in an out of compliance situation in the current program year.
               sustain, restore and modernize our infrastructure
        To sustain, restore and modernize what we own we need to achieve a
    balance between our military construction and operation and maintenance
    programs. Military construction allows us to restore and recapitalize
    our antiquated facilities while operation and maintenance (O&M) funding
    allows us to perform needed sustainment, restoration and modernization
    throughout the life cycle of a facility. Since the early nineties,
    constrained defense budgets resulted in reduced MILCON funding. For a
    few years adequate O&M funding partially offset this MILCON decline.
    However, since fiscal year 1997, competing priorities have forced the
    Air Force to cut sharply into both MILCON and O&M funding. Our effort
    to sustain and operate what we own is further strained by minimally
    funded O&M, which forces us to defer much-needed sustainment and
    restoration requirements. Currently, our sustainment, restoration and
    modernization (SRM) share of the Air Force O&M funding is only at $1.6
    billion. This is short of the $1.7 billion sustainment level, which is
    the minimum funding required to provide only the day-to-day maintenance
    and life cycle repairs necessary during the planned life of a facility.
    There is no funding for any Restoration and Modernization work, to fix
    things such as deteriorated water lines or failed airfield pavements.
    Our O&M funded restoration and modernization backlog now exceeds $5.6
    billion. We appreciate Congressional support in this area which has
    helped us recently in improving many of those facilities where we eat,
    sleep, play, and pray--fixing numerous dining halls, dormitories,
    fitness centers, and chapels. Without that congressional support, those
    facility enhancements could not have occurred.
                  optimize use of public and private resources
        In order for the Air Force to accelerate the rate at which we
    revitalize our inadequate housing inventory, we have taken a measured
    approach to housing privatization. We started with a few select
    projects, looking for some successes and ``lessons learned'' to guide
    our follow-on initiatives. Since awarding our first housing
    privatization project, at Lackland AFB, Texas in August of 1998, 321 of
    the 420 housing units are constructed and occupied by military
    families. The remaining 99 units are scheduled for completion this
    November. We have awarded three more projects that will result in 670
    privatized housing units at Robins AFB, Georgia, 402 units at Dyess
    AFB, Texas and 828 units at Elmendorf AFB, Alaska. We are working with
    the City of San Angelo on an unsolicited proposal to privatize 298
    housing units at Goodfellow AFB, Texas. Kirtland AFB, New Mexico, is in
    the middle of its housing privatization solicitation process, which
    potentially will privatize 1,164 housing units. Additionally, we have
    two more projects that will be out for solicitation shortly at Wright-
    Patterson AFB, Ohio and Patrick AFB, Florida. Our fiscal year 2002
    Military Family Housing Construction program includes 12 privatization
    projects for over 10,000 units at a cost of $135M vice $868M had we
    relied on traditional housing MILCON. This year's privatization
    projects are at Beale (1,444 units), Nellis (1,313), Andrews (115),
    McGuire (1,882), Lackland (564), Altus (978), Hickam (1,356), Hurlburt
    (330), Buckley (201), Langley (1,268), Elmendorf (624), and Barksdale
    (432). We're realizing, on average, a five to one leverage on our
    MILCON investment for housing privatization and we see this kind of
    favorable ratio holding steady or perhaps even increasing on other
    projects in the out-years.
        Our housing privatization initiatives are making great strides in
    the right direction. We firmly believe that through housing
    privatization we can provide improved housing to more airmen in less
    time than using the standard military construction process.
        We continue to aggressively pursue privatization of utility systems
    at Air Force installations. Our goal is to privatize utility systems
    where it makes economic sense and does not unduly impact national
    security. The Air Force has identified 434 of our 645 systems as
    potential privatization candidates. We have released requests for
    proposals for 178 systems and have completed the process on 75 systems.
    The Air Force is working diligently to ensure we meet the goals
    established by the Department of Defense to privatize eligible utility
    systems by 2003.
                          continue demolition programs
        In an effort to reduce infrastructure, the Air Force plans to
    demolish or dispose of, non-housing building space that is no longer
    economical to sustain or restore. From fiscal year 1996 through fiscal
    year 2000, we demolished 14 million-square feet of non-housing building
    space. This is equivalent to demolishing six Air Force bases equal to
    the combined square footage of Whiteman, Goodfellow, Moody, Brooks,
    Vance, and Pope Air Force Bases. Air Force demolition efforts continue
    to be a success story enabling us to reduce the strain on our
    infrastructure funding by getting rid of facilities we don't need. We
    support OSD's request for authority to conduct additional rounds of
    base closure, which would allow us to realign our forces for better
    efficiency and accelerate the disposal of unneeded infrastructure and
    facilities.
                              base closure account
        First, let me thank this committee for your support of the Air
    Force and DOD BRAC programs. Your help on legislation and funding has
    been instrumental in allowing communities, such as the former Lowry
    AFB, Colorado, to expedite their redevelopment efforts. This is a win-
    win for the local communities and the Department of Defense.
        The Air Force completed its final closure and realignment actions
    by July 13th, 2001, as required by the statute and is requesting the
    funding required to fulfill its environmental cleanup responsibilities,
    protect and care for the properties until their eventual transfer to
    other owners. The Air Force remains committed to timely environmental
    restoration that is protective of human health at our closure bases and
    is asking for the funds necessary to continue that process to a
    successful conclusion.
        We intend to apply our many lessons learned to future base
    conversions should the Congress authorize additional rounds of
    closures.
        Madame Chairman, I would like to make one final comment on BRAC. We
    cannot overemphasize how the reductions in Air Force manpower and force
    structure have outpaced those in infrastructure. We have reduced force
    structure by 36 percent, but even with four rounds of BRAC,
    infrastructure continues to exceed our requirements. Only additional
    base closures rounds can correct this imbalance. We cannot afford to
    continue spending our scarce resources on unneeded infrastructure.
        Additional base closure authority will provide a vehicle for
    properly sizing our infrastructure to our force structure and allow us
    to reallocate critical funds to force modernization, readiness and
    quality of life issues. To support this effort, the Secretary of
    Defense has requested, and the Air Force supports, additional base
    closures authority. Madame Chairman, we would appreciate this
    committee's consideration and support for the additional infrastructure
    reduction authority.
        In conclusion, Madame Chairman, I thank the committee for its
    strong support of Air Force military construction and family housing.
    With your help, we will ensure we meet the most urgent needs of
    commanders in the field while providing quality facilities for the men
    and women who serve in and are the backbone of the most respected
    aerospace force in the world. I will be happy to address any questions.

                             Warren Air force Base

        Senator Feinstein. Thank you very much, Mr. Dishner. I
    understand you are the only one who is making a statement. I
    have two specific questions before I get to my usual
    remediation questions, one on the Peacekeeper missile base
    closure and the implications, and the other on Global Hawk. Let
    me begin with Peacekeeper. The Defense Department is seeking
    permission from Congress to scrap its inventory of Peacekeeper
    missiles. Those are stationed at Warren Air Force Base in
    Wyoming. And my question is, what impact would the retirement
    of these missiles have on the future? The reason I ask this is
    because the President's 2002 budget includes two MILCON
    projects for Warren: $10.2 million for a fitness center and
    $2.7 million for a medical clinic alteration. So, my question,
    should those projects go forward in view of the retirement of
    the Peacekeeper?
        Mr. Dishner. Yes, I think the answer is positive, but
    General Robbins?

                                 Fitness Center

        General Robbins. The fitness center is the only one I can
    address because the medical MILCON is separate apportion issue
    now. The fitness center projects are sized based on the number
    of enlisted personnel at a given installation.
        Senator Feinstein. And what will that number be when
    Peacekeeper is retired?
        General Robbins. And they are in a range. The number I was
    given, that if in fact they were to eliminate the Peacekeeper
    or retire it, over time it will reduce the enlisted population
    at F.E. Warren by around 600 people, could impact by about 600.
    If we take that number out of the baseline that is already
    stationed at F.E. Warren, the size of the fitness center
    remains the same as the one we got in the program. So, the
    fitness center would stay the same.
        Senator Feinstein. And how many people are stationed at
    Warren?
        General Robbins. Let me get the number, ma'am. Let's see.
    Right now there are almost 3200.
        Senator Feinstein. Minus 600.
        General Robbins. Minus 600 will take it down to about 2600.
        Senator Feinstein. And you need $10.2 million for a fitness
    center?
        General Robbins. Yes.

                           Vandenberg Air Force Base

        Senator Feinstein. Pretty good fitness center. The budget
    also includes $11.8 million for Vandenberg to construct a
    missile transport bridge. According to the project description,
    the bridge is used for transporting Minuteman and Peacekeeper
    missile. Again, would a decision to retire the Peacekeeper have
    any impact on the need for this project?
        General Robbins. That also would remain a requirement. That
    road is the only road between the north and south portions of
    the base. As you noted, it transports both Peacekeeper and
    Minuteman missiles for test firing, and so the elimination of
    one of those systems would not matter.
        Senator Feinstein. Is this an improvement of the existing
    road?
        General Robbins. It is replacement of an existing bridge.
        Senator Feinstein. So it's a new road.
        General Robbins. Bridge.
        Senator Feinstein. Bridge. I beg your pardon. As a
    replacement for an existing bridge?
        General Robbins. That's correct.
        Senator Feinstein. And the existing bridge cannot be fixed?
        General Robbins. Correct.
        Senator Feinstein. Why?
        General Robbins. I'll have to get you the engineering
    assessment on it.
        Senator Feinstein. Would you please? I would appreciate
    that very much.
        [The information follows:]
                                 Vandenberg AFB
        The existing bridge is sound; however, the length and the height of
    the bridge are insufficient to span the water when it routinely rises
    to flood levels. Every rainy season, the creek rises and covers the
    existing bridge and road in this particular low-lying area of land. The
    flood-waters remain high for months after a flood thus closing the road
    and impeding direct access to the missile sites. (see attached photo)
        San Antonio Creek is actively adjusting its profile and geometry
    and its channel flow has changed considerably since the bridge was
    originally constructed, thus reducing the height of the bridge above
    the channel bed. A feasibility study for this project was jointly
    prepared in 1998 by Aspen Environmental Group, Agoura Hills, California
    and Simons, Li & Associates, Costa Mesa, California. The engineering
    analysis concluded that a new bridge, spanning the entire flood area,
    would be the best long-term solution to reduce environmental effects
    and maintain missile transport access without using public roads.
        The attached photograph clearly shows the ``lay of the land'',
    condition of the road (bridge included) and the need to have a new
    bridge built that will span this entire area at an elevation similar to
    that depicted from camera level.

                                  Global Hawk

        Senator Feinstein. On Global Hawk, if I may, the Air Force
    announced last week that Beale will be the first Global Hawk
    operating base. As a result, eighteen Global Hawks will be
    phased at Beale. I understand that first aircraft and personnel
    will arrive in 2002 and 2003. I see the administration has
    requested no funding for Beale in the 2002 budget. Can you tell
    me what the overall MILCON impact at Beale will be as a result?
    And what the impact will be in 2003?
        General Robbins. I know in the 2002, the initial bed down
    of Global Hawk has no MILCON requirement with it. I will have
    to look at it.
        Senator Feinstein. So, despite the fact that you are
    putting Global Hawk there, you need no additional funds.
        General Robbins. Correct. For 2002, Madam Chairman.
        Senator Feinstein. I see. And for 2003?
        General Robbins. We are looking at that right now to see if
    anything in the 2003 in the remainder of the out years if we
    wouldn't require something.
        Senator Feinstein. So, there is no plus-up for air craft of
    personnel?
        General Robbins. Not in MILCON.
        Mr. Dishner. Not in the Military Construction account. No,
    ma'am.

                            McClellan Air Force Base

        Senator Feinstein. And now if I could quickly go to the
    most difficult issue which is the BRAC issue. And Congress
    provided $9 million in the recently enacted supplemental bill
    for BRAC compliance at McClellan. I realize that the plutonium
    clean up at McClellan could last several years and at a high
    cost. The figure we have for clean up is indeed very high. I
    believe it is something like $450 million for total clean up.
        Mr. Dishner. $498 million, but that is more than just the
    plutonium. That's the entire clean up.
        Senator Feinstein. That's the entire projected over how
    many years, sir?
        Mr. Dishner. That is until fiscal year 2034.
        Senator Feinstein. Fiscal year 2034?
        Mr. Dishner. Yes ma'am.
        Senator Feinstein. The base will not be cleaned up until
    2034.
        Mr. Dishner. Yes ma'am. That's correct. That is the
    projection so far.
        Senator Feinstein. Thirty-four years?
        Mr. Dishner. It's a National Priorities Listing (NPL) site.
    It is the only one that we have. It takes a great deal. You
    just can't do it all in 1 year. There is just no way you could
    go in and do it. And the plutonium only added to that. Although
    we've taken as you know the plutonium--I know Madam Chair, you
    know--that we took the plutonium away and shipped that off,
    just vials, to MIT. But it was the earth that the plutonium
    vials were in that we need $38.4 million just to clean that up.
        Senator Feinstein. Well, Mr. Dishner, if I might just say
    this. Thirty-four years is probably 30 years too long. There is
    a very active base closure and reuse committee as you know. It
    is one of the really sterling efforts, and not to complete the
    clean up of environmental degradation for another 34 years is
    really unacceptable.
        Senator Hutchison. Is that because of the life of the
    elements?
        Mr. Dishner. Well, again, it is not all the plutonium. But
    a lot of the treatments that we put in are, as an example, are
    pump and treat, where we come in there and pump out the bad
    liquids that are in the ground waters, treat those and put them
    back in. Physically you get to a point where you just can't
    pump that much at one time and have those going on. It would
    look like, if the Navy were here, San Diego with all their oil
    pumpers going up and down. It would take the very use of the
    land away. The Local Redevelopment Authority (LRA) concurred
    totally with your observation of that LRA is able to use and
    work the property even while we are cleaning it up. So, the
    properties that we are----
        Senator Feinstein. Some tainted.
        Mr. Dishner. Yes ma'am. Some tainted, but absolutely not
    all of it. But they are able to use that, even while we are
    cleaning it up.
        Senator Feinstein. I would like to ask you to tell us what
    it would take to half that number. Now the Air Force is a can-
    do operation. What would it take to half that number from 1934
    to, say, 2016?
        Mr. Dishner. I will provide that to you, Madam Chairman.
        [The information follows:]
                                 McClellan AFB
        All cleanup remedies at the former McClellan AFB are scheduled to
    be in place by 2015. The 2034 date is the projected regulatory approval
    for site close out of the ground water cleanup. We have accelerated the
    cleanup schedule based on finding a technical solution to cleaning up
    hot spots (areas with contamination greater than 100 times the
    permissible Federal Maximum Contaminant Level).
        These activities do not prevent the reuse of McClellan, and reuse
    is progressing at an impressive rate. In fact, at this point
    approximately 2,600 acres of the base are in reuse through leases in
    furtherance of conveyance or interim leases to Sacramento County, the
    Local Redevelopment Authority (LRA). The current work force at
    McClellan now includes over 4,000 people.

                          Base Realignment and Closure

        Senator Feinstein. I understand that McClellan funding was
    another BRAC request that the Air Force submitted in the
    supplemental and that about $33 million for five other BRAC
    projects was not included in the President's supplemental
    funding. Let me tell you those five are Lowry Air Force Base in
    Denver--$5 million, Homestead in Florida--$3.5 million,
    Chanute, Illinois--$9 million, Griffith, New York--$10.2
    million and Plattsburg, New York--$5.5 million. Are those
    projects fully funded in your fiscal year 2002 budget request?
        Mr. Dishner. The majority of them are but we are still
    short, Madam Chairman, some $42 million, the total request we
    had made against which we also requested $9 million.
        Senator Feinstein. You said you are still short $42
    million. Does that cover those five projects that I just read
    off?
        Mr. Dishner. It covers those five and some others.
        Senator Feinstein. And what would those others be?
        Mr. Dishner. I don't have that right with me.
        Senator Feinstein. Will you get us that? In other words,
    what the $42 million package would be.
        Mr. Dishner. Yes, ma'am.
        [The information follows:]
                          Base Realignment and Closure
        In my statement I approximated a $42 million shortfall in fiscal
    year 2002. The Air Force Base Conversion Agency has determined the
    program has an actual fiscal year 2002 shortfall of $55 million as
    provided to the Office of Management and Budget (OMB). This shortfall
    consists of the following projects:
    California--$28.6 million
        McClellan AFB--$23.6 million.--Required to complete time critical
    actions for the CS-10 plutonium site in accordance with a signed action
    memorandum. Additionally, funds are required to support groundwater
    characterizations for protection of drinking water supplies.
        Mather AFB--$2.6 million.--Required to complete installation of
    groundwater cleanup system in accordance with signed Record Of Decision
    (ROD). Signed ROD is a legal commitment on behalf of the Air Force in
    order to mitigate known risks to human health and the environment.
        Norton AFB--$2.4 million.--Required to initiate dioxin contaminated
    soil cleanup. Air Force contaminated soil has been detected on adjacent
    property. Cleanup is required for protection of sensitive ecological
    environments to meet cleanup standards and allow deed transfer of
    property.
    Colorado--$6.0 million
        Lowry AFB--$6.0 million.--Required to maintain pace with LRA (Local
    Redevelopment Authority) reuse. Interim actions are needed to contain
    and cleanup contaminated groundwater.
    Florida--$1.0 million
        Homestead AFB--$1.0 million.--Required to mitigate potential
    resource injury and meet legal requirements associated with signed ROD
    which addresses contamination that flows into Biscayne Bay. EPA
    signature is pending additional negotiations. If natural resource
    injury is assessed, AF will be subject to paying damages. Additional
    funds are required to accomplish design and complete remedy.
    New York--$15.4 million
        Griffiss AFB--$15.4 million.--Required to meet outstanding legal
    requirement associated with a signed ROD. Further, the Ocuto protest
    over local contracting preference was resolved and therefore funding is
    required to meet legal obligations. Funds will support landfill caps
    and soil treatment.
    Texas--$4.0 million
        Kelly AFB--$4.0 million.--Required to implement cleanup remedies in
    accordance with State approved corrective measure studies. These
    actions are required within 180 days of approval and will implement
    soil and groundwater treatments necessary for reuse and mitigation of
    known risks.

                             Castle Air Force Base

        Senator Feinstein. May I ask about one other base? And then
    I would like to go to Senator Hutchison. And that is Castle Air
    Force Base where the cost is estimated at $110 million. What is
    the timeline on that? And what is the budgeting on it?
        Mr. Dishner. The budgeting for 2002 is $11 million and that
    is included totally in the 2002 budget, Madam Chairman. Beyond
    2002, I would have to get that for you for the record.
        Senator Feinstein. If you would
        Mr. Dishner. That is fully funded in this request that we
    have.
        [The information follows:]
                                   Castle AFB
        The environmental cost-to-complete estimate for the former Castle
    Air Force Base is $110 million through fiscal year 2044. For the
    current budget cycle, we have budgeted the following:

            Fiscal year                                              Million
    2002..........................................................   $11.028
    2003..........................................................     2.490

        The remainder of the cost to complete will be spread across fiscal
    year 2004-fiscal year 2044 to support system operation and long term
    monitoring for an average cost of about $2.4 million per year.

        Senator Feinstein. Thank you. Senator Hutchison.

                                 Overseas Bases

        Senator Hutchison. Thank you Madam Chairman. I have been
    concerned about the BRAC, looking at the American bases before
    we know what our troop strength is, what our new strategy is
    going to be. And I am very concerned that we are not looking at
    what we are doing on our foreign bases and determining where we
    have training constraints and whether it is necessary for us to
    be at the strength now in every place that we are located
    overseas.
        So your budget has an increase of almost $100 million for
    overseas basis and MILCON, one-quarter of your active duty
    construction program. Are you looking at what can be done to
    make your overseas bases most efficient? What would be the
    long-term needs for your deployments overseas? And do you think
    you have enough information to be adding this much MILCON
    before we have the QDR back from Secretary Rumsfeld?
        Mr. Dishner. I will let General Robbins, but let me start
    out with it. We certainly need to continue to look at forces
    worldwide to reduce those in concert with what are the number
    of bases and bed down of those forces if they were to return to
    the continental United States. And the Quadrennial Defense
    Review (QDR) and other studies would address that. The needs
    that we have submitted in the 2002, continues--and thank you
    for the laudatory comment about the Air Force. Not that the
    Navy and Army doesn't do that, but the people who need to take
    care of and worry about a little bit more than everyone else
    are the people on the tip of the spear. Those are the people in
    Pacific Air Forces (PACAF) and United States Air Forces in
    Europe (USAFE) that need the facilities, etcetera, to not only
    fight the war but to live the quality of life. So, that is why
    you are seeing those in there.
        If there are adjustments to be made in that, those things
    will come out. But I don't think the Air Force would ever be in
    a position where pending a subsequent study we would hold back
    and not go out for request to be able to put in for those items
    that are just sorely for men and women, especially in USAFE.
        General Robbins. I echo what Mr. Dishner said. I would also
    suggest, as he said in his opening statement, the MILCON
    priorities are based on an integrated priority list. And as you
    have acknowledged in previous years, our MILCON budget has
    woefully deficient when we sent it over here. Those minimal
    MILCON budgets did not allow us to reach out and fix many of
    things that needed to be addressed overseas, in particular. So,
    the amended budget did add, basically doubled our program and
    allowed us to do things we had to defer in the past because we
    had insufficient funding in the budget.
        I believe that Secretary DuBois testified yesterday
    regarding how we have in fact looked at our program. Certainly
    QDR is not done, but in the case of the projects we have in
    here for Korea for example--they are at Osan and Kunsan--both
    of which fit the bill of enduring installations on the Korean
    peninsula since they were the only two Air Force bases
    remaining in Korea. Similarly in USAFE in Europe, the projects
    that we've got in there predominately at Ramstein and
    Spangdahlem are the only two bases we have left in Germany. So,
    we feel that any investment there is certainly going to fall in
    line with the strategic basing studies that Unified Command
    (UCOM) is putting together.

                          Consolidating Bases Overseas

        Senator Hutchison. Can you say that with regard to all of
    the foreign MILCON that you are requesting that you can be
    sure--or as sure as you can be in a changing world--but it is
    where the long term commitments are going to be? And even where
    you are consolidating bases overseas, would these be the ones
    that are enduring in this request?
        General Robbins. Yes, ma'am, you are right. With as much
    confidence as I can muster, which is a lot, and an example
    would Ramstein and Spangdahlem represent that kind of
    consolidation of forces in Germany. As you know, in the United
    Kingdom, we are down to just Lakenheath and Mildenhall. And so,
    we have housing projects, for example, at those two bases.
        So, one is a U.S. territory in Wake Island. You'll see a
    line in the budget for Wake Island where Admiral Blair and
    PACOM has come to the Air Force and said Wake Island fits very
    prominently in our long range plan for the Pacific. So, the Air
    Force is the proud owner of Wake Island and so we have
    incorporated a project to try to restore it because we invested
    nothing in Wake Island for the last 10 years. In this case, it
    is an airfield payments project.

                             Aviano Air Force Base

        Senator Hutchison. When you do a military construction
    project, such as Aviano, and then you are reimbursed by NATO,
    where does the money go that was put in by the United States
    for the military construction project when it is reimbursed?
        General Robbins. I think I know the answer, but we will
    have to answer it for the record. I think it goes into the
    Treasury, but I am not positive.
        Mr. Dishner. It does not come back to the Air Force. It
    does goes back to the Treasury.
        Senator Hutchison. It doesn't even come back to DOD? It's
    just general treasury?
        Mr. Dishner. Yes.
        Senator Hutchison. I would like to know that because if
    that is the case, it would seem that perhaps it should come
    back into the same fund to be used for other things.
        Mr. Dishner. It would be very helpful if it did that,
    ma'am.

                                  German Bases

        Senator Hutchison. Just a last question. You mentioned, of
    course, Ramstein and Spangahlem being the two in Germany and
    you are closing down Rhein Main at Frankfurt. It is my
    understanding that Germany is paying $425 billion for
    relocation, military construction. Is that going to be a break
    even? Or is that going to be helpful in establishing new things
    in the two bases that are going to be remaining?
        General Robbins. In fact, break even is probably a good
    term for it in terms of what the negotiations result in with
    the terms. The agreement was the German government would pay to
    relocate functions in kind, if you will, from Rhein Main to
    either Ramstein or Spangahlem. They would not pay for any
    increase in footprint or increased capacity. So, there were
    some facilities where we knew we actually needed more space at
    Ramstein then we had at Rhein Main. So, we may pick up a share
    of the cost. But in fact it was a good exchange in terms of
    what the Germans were funding because a lot of things they were
    funding were old facilities--or that we left behind old and we
    are getting new at our two bases.
        Senator Hutchison. Okay, thank you Madam Chairman.

                             Housing Privatization

        Senator Feinstein. Thank you Senator. Senator Craig.
        Senator Craig. Thank you Madam Chairman. Secretary Dishner,
    because of the OSD's mandate at 80 percent of the blueprint
    initiative to improve housing for privatization, what part of
    military family housing projects were passed over in the Air
    Force Family Housing Master Plan?
        Mr. Dishner. I'll let General Robbins give specifics, but
    let me make sure the Air Force is clear on the 80 percent. That
    was a guide that was given because of the administration's push
    to say to make sure you are doing, are you putting 80 percent
    of the dollars that are being supplementally requested into the
    privatized housing. The project, the percentage you have--and
    do we have that General? The projects that would have been
    deferred----
        Senator Craig. As it relates to the 80 percent, what gets
    left out or substantially deferred?
        General Robbins. What gets substantially deferred would be
    three projects--not substantially deferred but deferred
    probably until 2003. We don't know yet. For about 360 units
    across the Air Force, in return we pick up 2525 units to be
    privatized.
        Senator Craig. Where would those 360 show up?
        General Robbins. They would show up at Keesler, Randolph
    and Mountain Home.
        Senator Craig. Well, you understand the direction of my
    questioning. I think since privatization is just beginning to
    be implemented, what are some of the lessons learned that are
    being considered when expanding the privatization initiative?
    We have tried this before, Mr. Secretary.
        Mr. Dishner. Let me start and General Robbins can chime in.
    As we gone through this, as you know in 1996 is when we began
    this. This effort that the Air Force really was behind
    promulgated during those days, and Congress was good enough to
    give us five years as a test. In the year 2000, we were able to
    convince Congress to extend that and they gave us another four
    years to continue--and they don't call it a test any longer,
    but it is just to continue because the returns have been quite
    substantial for the tax payer. On average for the projects we
    have done to date for the four signed there is something like
    an 8-to-1 return. For every dollar from the taxpayer, we get
    seven from the private sector. That's not bad.
        Some of the things we have looked at is where those should
    be. And we have been given a QDR year to try to meet of 2010,
    and other help--and I really mean it that way. Other help to
    say take advantage of where we have the opportunities to
    privatize houses. And Air Force Civil Engineering has been
    extremely adept at going in and evaluating where those bases we
    should privatize versus those that we can't. In those areas
    where they don't have enough houses on the market, etc., tends
    to sway that more for funding by the normal traditional method
    as compared to privatization.
        The four that I have signed--Lackland Air Force Base, San
    Antonio, Texas, Robins Air Force Base in Georgia, Dyess Air
    Force Base, Texas, Elmendorf Air Force Base, Alaska--the high
    built of areas that really have a market there that draws and I
    think help the numbers. It is a simple cash flow calculation
    that is done. So, from all the things that privatization has
    done, the Air Force continues to look at it. In fact, we are
    now looking at the 2001 Master Family Housing Plan to see how
    we can continue to meet that.
        General Robbins. I have nothing to add.
        Senator Craig. I guess, what has been the Air Force's
    experience with respect to whether an installation is eligible
    for the Military Family Housing Privatization? I think you
    started into that, Mr. Secretary.
        Mr. Dishner. What is done, and it is in a way convoluted
    but in a way very simple calculation as to look at what is the
    values as you know in privatized housing. Privatized housing is
    the way the rest of us, normally those that are not of large
    means have to do, and they mortgage their houses. Not too many
    of us can afford to buy those for cash nor is that method using
    your money wisely. What privatization gives us then is, and
    what it is we look at, is what is the BAH stream of the people
    assigned. BAH is the Base Allowance for Housing. And that is
    based upon a geographical area and the rank that you have. That
    is putting against what are the houses there at the base today
    that are in probably two types of condition: recently
    reconfigured, which means their value would be higher, and
    those that need to be altered, need to be repaired.
        The Air Force, as you know, had some 85,000 houses when we
    first started this to try to get into that, and we have done
    quite well. We are heading toward 27, 200 to be exact through
    2004. So, you take the value of the houses that have been
    repaired, you look at the value and ask the local developers if
    they have land, or if we have land on the base that then has a
    value to it. But it is based upon the cash flow--a simplistic
    statement here--but the cash flow as based upon an essence of
    mortgage that would be obtained by the developer. She will
    borrow the money to build the houses, the number that we need
    based upon the requirements that we have given them, and then
    balance that and say does that make economic sense for us to do
    that.
        I know that in the ones that I have read that contractors
    have been privy to give me information on how well we are
    doing, is that it has been very financially well for them to
    do. I don't think to excess because they have been able to use
    when we transferred houses to them, which were already in good
    shape. They had a value and we added to that the Basic
    Allowance for Housing over a period--in the case of the four we
    did--50 years. That created a cash flow that made them go ahead
    and convince a lender to provide the funds to build new houses
    and/or to alter existing houses.
        So, it is a value calculation that is done every day in the
    private sector by the developers and we have land and we have
    existing homes to put into the equation, and then we have a
    cash flow that is added in from the individuals that would be
    assigned. And they take and in fact determine if that area or
    home or wherever it may be is qualified to have--would be able
    to handle privatized housing. It would be a developer that
    would be interested in providing that.
        Senator Craig. Well, you know philosophy says that the
    worst gets taken care of first and not simply prioritized
    projects based on more housing for less money. I guess the
    question is, not all installations qualify for privatization,
    and if some of their housing is 1950, needing a bit of
    remodeling, what happens?
        Mr. Dishner. We have scheduled projects both by MILCON and
    by O&M to repair those houses and we do repair. Per your
    comment there, that is exactly what we do as a guide. The worst
    houses we need to take care of first, sir, whether by MILCON,
    O&M or by privatization.
        Senator Craig. Well, obviously I am going to review this
    very closely. Privatization works in certain areas and doesn't
    work in others. I happened to have a base the Air Force keeps
    telling me is one of their premier bases that it doesn't work.
    And I don't necessarily want my people living in substandard
    housing. And right now it isn't working in this budget. It has
    gotten reprioritized based on the 80 percent factor and that is
    not satisfactory.
        I have toured that base on a regular basis. I have been in
    some of that housing, and it is substandard. And if we are
    talking about quality of life and retention, and we are. And we
    know the kind of investment we have put in the men and women
    who serve us in the Air Force, and what we expect from them and
    what they should expect from us. So, then if the formula
    doesn't fix, then maybe we ought to fix it and I may have to
    try to work with you to do so because it doesn't seem to be
    fitting at this moment. I think that is unacceptable. And I
    know that Mountain Home doesn't probably stand alone.
        But one of the problems we get into, if you are seeking
    quality air space and the kinds of circumstances that allow
    people to fly unrestricted or relatively unrestricted on your
    own schedules, and then the urbanized side of the equation that
    fits the privatization doesn't fit that because urbanized air
    space is in itself by definition a restricted air space in most
    instances. And I find that we are almost putting ourselves in a
    contradictory situation. We like those bases that have that
    unrestricted character to them, obviously optimizing flying
    time and the efficiencies of all we are trying to achieve. Yet
    the housing formula that talks about the quality of life by
    definition doesn't seem to fit in some of those instances
    because there is an absence of organization. And we will want
    to work to see if we can't resolve that sort of thing.

              Military Construction for Ballistic Missile Defense

        Mr. Secretary, what portion of the MILCON design funds is
    the Air Force getting for ballistic missile defense.
        General Robbins. Sir, as far as I know, none because BMDO
    has their own design and construction line in the budget.
        Senator Craig. The Air Force is not a player in that?
        Mr. Dishner. No, sir.
        Senator Craig. Well, gentleman, thank you very much, and
    Chairman I may have some additional questions for the record,
    but I do thank you.

                          MOUNTAIN HOME AIR FORCE BASE

        Mr. Dishner. Mr. Craig, may I say this, I was just at
    Mountain Home Monday and Tuesday of this week and viewed the
    houses there and the rest of the base and concur with your
    observations of unobstructive air space. It is wonderful,
    wonderful location. We will work with you.
        Senator Craig. I appreciate that, Mr. Secretary.
        Senator Feinstein. Mr. Secretary, I would like to ask you
    if you would do this for the committee. If you would rank the
    Air Force projects in the 2002 budget in order of priority for
    you and if you would give us the total of the Air Force's
    unfunded priorities and also rank those, and I would really
    like the military input in this rather than the civilian input.
        Mr. Dishner. Yes ma'am.

                    Air National Guard Military Construction

        Senator Feinstein. Thank you. General Kimmel, I have been
    told that the Air National Guard military construction backlog
    is $1.8 billion and your largest request in recent years is
    only $149 million. How are you ever going to reconcile that?
        General Kimmel. That is a great question. Facilities are
    the face of the Guard.
        Senator Feinstein. Could you pull the mike closer?
        General Kimmel. Sorry, facilities at the Guard unlike our
    active duty component, all of our facilities consist of where
    we work, given that our people live out in the economy. Our
    standard allotment, historical allotment is about $220 million.
    While it was our best PB, it is still well below standard. We
    have an RPM.
        Senator Feinstein. If I understand this, the budget from
    the President is $149 million but normally you go at about $220
    million.
        General Kimmel. The congressional adds and so on and so
    forth are normally at about $220 million, historically or the
    last 10 or 15 years. So, this would be less for us. If we were
    to correct our problems both in MILCON and RPM, we would have
    to execute upwards of about $250 million to $300 million a year
    in MILCON, and in the area of $150 million to $250 million a
    year in RPM to match the standard of the Air Force to
    reconfigure our bases and so on and so forth over a 6 to 7 year
    period.

                              Unfunded Priorities

        Senator Feinstein. Well, would you also give me a list of
    your unfunded priorities please ranked.
        General Kimmel. Yes ma'am.
        [The information follows:]
                            Unfunded Priorities List
        The list below is the 10 USC 10543 report provided to Congress each
    year when our annual President's Budget funding is less than 90 percent
    of the average authorization for the proceeding two years. This list
    shows unfunded requirements in addition to those shown in the Future
    Years Defense Program (FYDP) and can all be executed in fiscal year
    2002 if funds are made available.

                            [In thousands of dollars]

            Base/State/Project title                                    Cost

    Reno, NV: Replace Communications and Security Forces Facility..... 8,400
    Barnes, MA: Upgrade Support Facility.............................. 5,200
    Tucson, AZ: Composite Support Complex............................. 8,400
    McGhee Tyson, TN: Replace Fire Station and Security Forces Complex 6,000
    Fort Wayne, IN: Upgrade Aircraft Parking Ramp and Taxiway......... 8,500
    Des Moines, IA: Joint ANG/FAA Upgrade Airfield Facilities......... 9,200
    Schenectady, NY: Replace Base Supply Complex...................... 5,200
    Hancock, NY: Civil Engineer Pavements and Grounds Facility........ 1,450
    Gulfport, MS: Replace Medical Training Facility................... 1,500
    Rickenbacker, OH: Joint ANG/RPA Instrument Landing System......... 1,500
    Selfridge, MI: Replace Joint Dining Facility (w/AFRC)............. 8,500
    McEntire, SC: Replace Operations and Training.....................10,200
    Smoky Hill, KS: MUTES Support Facility............................ 1,000
    Gulfport, MS: Upgrade Civil Engineer Maintenance Facility......... 1,500
    Bangor, ME: Repair Joint Use Airfield Pavements (Ph I)............ 5,000
    Little Rock AFB, AR: Operations and Training Facility............. 5,100
                                                                      ______
        Fiscal year 2002 Prioritized Requirements.....................86,650

        The following list represents the unfunded requirements carried in
    the Air Force Unfunded Priority List and include projects contained in
    the FYDP and some that are not contained in the FYDP. There is some
    overlap with the 10543 report shown above, but the lists are not
    identical because the rules governing each are different. All
    requirements on the list below are executable in fiscal year 2002 if
    funds are made available.

                            [In thousands of dollars]

            Base/State/Project title                                    Cost

    Jackson, MS: C-17 Construct Maintenance Training Facility.....     4,100
    Dothan, AL: Replace 280th Combat Communications Complex.......    11,000
    Sepulveda, CA: Replace Communications and Electronics Training
        Facility..................................................     5,000
    Fort Smith, AR: Replace Operations and Training Facility......     6,000
    Key Field, MS: Replace Comm-Electronics Training Complex......     6,400
    Pittsburgh, PA: Add/Alter Squadron Operations and Support
        Facilities................................................    12,000
    New Castle, DE: Upgrade C-130 Parking Apron and Taxiway.......     9,500
    WK Kellogg, MI: Replace Munitions Maintenance and Storage Com-

        plex......................................................     9,500
    Duluth, MN: Replace Composite Aircraft Maintenance Complex....    10,000
    Niagara Falls, NY: Add/Alter Fuel Cell and Corrosion Control
        Hangar....................................................     2,800
    Nashville, TN: Replace Composite Aircraft Maint Complex (Phase
        I)........................................................    11,000
    Cheyenne, WY: Replace Aerial Port and Air Traffic Control
        Complex...................................................     6,000
    Capital, IL: Replace Composite Support Facility Complex.......    10,000
    Eielson AFB, AK: Replace Security Forces Operations Facility..     5,000
    Forbes Field, KS: Replace Operations and Training Facility....    11,200
    Fort Bliss, TX: Replace Base Defense Training Center Complex..     8,400
    Fairchild, WA: Replace Logistics Support Complex..............     8,200
    Springfield, OH: Aircraft Parking Apron, Taxiway and Arm/
        Disarm....................................................    10,600
    Savannah, GA: Replace Medical Tng, Security Forces & Assem-
        bly Hall..................................................     6,300
    Buckley AFB, CO: Replace Control Tower........................     5,800
    Volk Field, WI: Replace Control Tower.........................     5,700
    Hector, ND: Replace Weapons Release Shop Complex..............     4,500
    Yeager, WV: Replace Base Civil Engineer Maintenance Complex...     4,100
    Portland IAP, OR: Replace Joint Dining Facility (w/AFRC)......     6,000
    Burlington, VT: Replace Vehicle Maintenance Complex...........     5,600
    Toledo, OH: Replace Logistics Complex.........................     6,900
    Charlotte, NC: Replace Vehicle Maintenance Complex............     7,200
    Mansfield, OH: Replace Vehicle Maintenance Complex............     3,500
    New Orleans, LA: Replace Vehicle Maintenance and ASE Complex..     5,500
    Barnes, MA: Upgrade Support Facility..........................     5,200
    Tucson, AZ: Replace Composite Support Complex.................     5,400
    McGheeTyson, TN: Replace Fire Station and Security Forces
        Complex...................................................     6,000
    Fort Wayne, IN: Upgrade Aircraft Parking Ramp and Taxiway.....     8,500
    Boise, ID: Add/Alter Base Supply Complex......................     3,000
    Des Moines, IA: Joint ANG/FAA Upgrade Airfield Facilities.....     4,200
    Joe Foss Field, SD: Joint ANG/FAA Airfield Improvements.......     2,500
    Hensley, TX: Upgrade Communications Complex...................     1,500
    Hancock, NY: Composite Readiness Support......................     2,500
    Gulfport, MS: Replace Medical Training Facility...............     1,500
                        --------------------------------------------------------------
                        ____________________________________________________

            Fiscal year 2002 Prioritized Requirements.............   248,100

        Senator Feinstein. I appreciate that very much. General
    Duignan, I would like to ask the question of you for the Air
    Force Reserve. And your request on this present budget is $53
    million this year.
        General Duignan. That's correct. We have about $53 million
    this year, which is about three times what we have had in the
    last few years.

                         Military Construction Backlog

        Senator Feinstein. So, you are happy campers.
        General Duignan. Well, we are happier than we have been. We
    have a $683 million MILCON backlog, and we can provide you that
    list. We have much the same issues as the Guard. Our facilities
    are not where our people live but where they work, so our
    MILCON backlog is somewhat different than the active duty, but
    we can provide you that list.
        Senator Feinstein. Yes, that would be helpful; the unfunded
    priorities and if you also prioritize what is funded.
    Everybody, I think that is helpful.
        [The information follows:]

                                                                         MILCON BACKLOG
                                                                    [In thousands of dollars]
    --------------------------------------------------------------------------------------------------------------------------------------------------------
    Priority                Base                       Project number                                 Milcon project title                            Cost
    --------------------------------------------------------------------------------------------------------------------------------------------------------
          Keesler AFB, MS                     MAHG 96-3006................  C-130J Maintenance Hangar..........................................     12,000
          Robins AFB, GA                      UHHZ95-9210P2...............  Add/Alter AFRC Headquarters, Phase 2...............................      2,000
          Maxwell AFB, AL                     PNQS02-9010.................  Fuel Cell Maintenance Hangar.......................................      7,300
          Maxwell AFB, AL                     PNQS95-9004.................  Aircraft Maintenance Hangar........................................      9,900
          Grissom ARB, IN                     CTGC01-9001P3...............  Consolidated Lodging Phase 3.......................................     13,200
                                                                                                                                                ------------
                FUNDED PROJECT TOTAL          ............................  ...................................................................     44,400
                                                                                                                                                ============
          AFRC Unfunded MILCON Projects:
          1   Keesler AFB, MS                 MAHG 04-3005................  Fuel Cell Maintenance Hangar.......................................      7,500
          2   Hickam AFB, HI                  KNMD 97-9604................  Consolidated and Medical Training Facility.........................      6,100
          3   March ARB, CA                   PDPG 98-0729................  Fire Station.......................................................      7,200
          4   McGuire AFB, NJ                 PTLF 90-9677................  Reserve Medical Training Facility (Joint w/ANG)....................      5,100
          5   Minn-St Paul ARS, MN            QJKL 99-0011P3..............  Consolidated Lodging Phase 3.......................................     13,000
          6   Seymour Johnson AFB, NC         VKAG 97-9002................  Security Forces Facility...........................................      1,650
          7   Peterson AFB, CO                TDKA 98-9002................  Fuel Systems Maintenance Hangar....................................      6,500
          8   Westover ARB, MA                YTPM 94-0004................  Base Operation.....................................................      5,300
          9   Schriever AFB, CO               GLEN 04-3003................  Consolidated Space Group Operations................................      9,800
         10   Tinker AFB, OK                  WWYK 97-9043A...............  Squadron Operations Facility.......................................      3,900
         11   Grissom ARB, IN                 CTGC 98-9003................  Add/Alter Aircraft Maintenance Hangar..............................      5,700
         12   Kelly AFB, TX                   MBPB 99-0016................  Consolidated Maintenance Facility..................................      9,000
         13   Youngstown ARS, OH              ZQEL 02-9001................  Phase 1 Joint Services Lodging Facility............................      9,950
         14   Whiteman AFB, MO                YWHG 97-9501................  A-10 Squadron Operations Building..................................      3,500
         15   Dobbins ARB, GA                 FGWB 01-9001................  Visiting Quarters..................................................      6,700
         16   Barksdale AFB, LA               AWUB 97-9501................  RED HORSE Veh Maint................................................      3,200
         17   Dover AFB, DE                   FJXT 98-3001................  Aerial Port Training Facility......................................      1,850
         18   Barksdale AFB, LA               AWUB 04-9801................  B52 Squadron Operations/AMU Facility...............................      5,000
         19   Westover ARB, MA                YTPM 02-9001................  Security Police Operations.........................................      4,100
         20   Wyoming Valley ARC, PA          XPRF 00-9001................  Aerial Port Training Facility......................................      2,100
         21   Dobbins ARB, GA                 FGWB 01-9011................  Upgrade Maint Bays (in Wing HQ Facility)...........................      9,400
         22   Willow Grove ARS, PA            ZAWA 98-9001................  Joint ANG/AFRC Wing Headquarters...................................     17,500
         23   Gen Mitchell ARS, WI            HTUX 96-9003................  ADAL Consolidated Training Facility................................      5,300
         24   Eglin AFB (Duke Field), FL      FTFA 96-3044................  Civil Engineering Training Facility................................      3,000
         25   Patrick AFB, FL                 SXHT 97-3008................  920 RQG Headquarters Facility......................................      7,000
         26   McGuire AFB, NJ                 PTFL 99-9003................  Civil Engineering Training Facility................................      3,350
         27   Gen Mitchell ARS, WI            HTUX 06-9001................  Fire Station.......................................................      6,500
         28   Minn-St Paul ARS, MN            QJKL 99-0013................  Hangar Complex.....................................................     17,800
         29   Westover ARB, MA                YTPM 02-9002................  Construct New Lodging Facility.....................................     15,600
         30   Peterson AFB, CO                TDKA 95-9006................  Aerial Port/Airlift Facility.......................................      5,500
         31   Scott AFB, IL                   VDYD 02-3001................  Support Group Training Facility....................................      7,000
         32   Hill AFB, UT                    KRSM 00-3010................  Training Complex (Small Arms)......................................      5,500
         33   Homestead ARS, FL               KYJM 99-9026................  Visiting Quarters..................................................      3,800
         34   Carswell ARS, TX                DDPM 00-0035................  Operations Group Facility..........................................      2,000
         35   Barksdale AFB, LA               AWUB 04-9802................  B52 Fuel Cell Maintenance Dock.....................................      8,600
         36   Hanscom AFB, MA                 ............................  Aerial Port Training Facility......................................      4,000
         37   Hill AFB, UT                    KRSM 02-3005................  Upgrade Hangar Bldg 590............................................      6,800
         38   Minn-St Paul ARS, MN            QJKL 98-0001................  Consolidated Training Facility.....................................      5,100
         39   Seymour Johnson AFB, NC         VKAF 99-9001................  Civil Engineering Training Facility................................      1,950
         40   Travis AFB, CA                  XDAT 97-9162................  New Training Facility, C5 Sqd Ops/AGS..............................     10,230
         41   Niagara Falls ARS, NY           RVKQ 00-9011................  Visiting Quarters..................................................     13,500
         42   New Orleans JRB, LA             RQLB 02-3005................  Command Post (-design).............................................      6,000
         43   Pittsburgh ARS, PA              JLSS 99-9002 R3.............  Consolidated Lodging...............................................     19,000
         44   Selfridge ANGB, MI              VGLZ 00-0008................  Support & Training Complex.........................................     10,700
         45   New Orleans JRB, LA             RQLB 00-3007................  Munitions Trailer Maintenance Facility (-design)...................      1,500
         46   Portland IAP ANGB, OR           TQKD 98-0443A...............  Consolidated Wing Training Facility, Phase 2.......................      2,850
         47   Wright-Patterson AFB, OH        ZHTV 03-9001................  Alter General Training Facility....................................      4,500
         48   Gen Mitchell ARS, WI            HTUX 96-9001................  Security Forces Complex............................................      4,400
         49   Youngstown ARS, OH              ZQEL 99-9009................  Phase 2 Joint Services Lodging/Training Facility...................      9,600
         50   Homestead ARS, FL               KYJM 01-9001................  ADAL Communications Facility (Bldg 354.............................      2,000
         51   March ARB, CA                   PDPG 96-0108................  Alter Taxiway & Runway 30..........................................      1,500
         52   Minn-St Paul ARS, MN            QJKL 99-0012................  Aircraft Maintenance Shop Complex..................................      6,800
         53   Carswell ARS, TX                DDPM 00-0034................  Sortie Generation Facility.........................................      1,650
         54   Pittsburgh ARS, PA              JLSS 98-9003 R4.............  Combat Communications Training.....................................      3,300
         55   Eglin AFB (Duke Field), FL      FTFA 94-9901P1..............  Visiting Quarters..................................................      7,400
         56   Pittsburgh ARS, PA              JLSS 97-9001 R3.............  Wing Headquarters..................................................      7,800
         57   McGuire AFB, NJ                 PTFL 00-9001................  Add/Alter Wing Headquarters Building (Bldg 2217....................      4,200
         58   Peterson AFB, CO                TDKA 00-9001................  Consolidated Training Facility (ASTS, SF, Comm)....................      3,950
         59   Dobbins ARB, GA                 FGWB 94-9007................  North Side Overpass................................................      3,200
         60   New Orleans JRB, LA             RQLB 00-3008................  Small Arms Range Facility (-design)................................      2,300
         61   Homestead ARS, FL               KYJM 99-9025................  Services Training Complex..........................................      6,000
         62   Homestead ARS, FL               KYJM 01-9004................  ADAL Aerial Port Facility..........................................      2,500
         63   Robins AFB, GA                  UHHZ 01-9010................  Combat Logistics Support Facility..................................      1,670
         64   Scott AFB, IL                   VDYD 04-3004................  Wing Head Quarter Facility.........................................      9,500
         65   Beale AFB, CA                   BAEY 02-0033................  Renovate Operations Group Facility.................................      2,800
         66   Youngstown ARS, OH              ZQEL 99-9007................  Consolidated Mission Support Complex...............................      9,850
         67   Willow Grove ARS, PA            Not assigned yet............  Joint ANG/AFRC Supply Facility.....................................      7,700
         68   Dover AFB, DE                   FJXT 00-3005................  Wing Headquarters..................................................      2,500
         69   Gen Mitchell ARS, WI            HTUX 07-9001................  Maintenance Hangar.................................................     18,000
         70   Minn-St Paul ARS, MN            QJKL 00-0028................  Fire Training Facility.............................................      2,100
         71   Dover AFB, DE                   FJXT 02-3002................  Logistics Group Facility...........................................      1,500
         72   Hill AFB, UT                    KRSM 02-3004................  CLSS Maintenance & Training Complex................................      5,500
         73   Maxwell AFB, AL                 PNQS 95-9001................  Logistics Complex..................................................     13,650
         74   Eglin AFB (Duke Field), FL      FTFA 96-3044................  Replace Aircraft Parking RAMP......................................      6,300
         75   Niagara Falls ARS, NY           RVKQ 00-9012................  Dining Hall........................................................      5,400
         76   New Orleans JRB, LA             RQLB 01-3000................  Armed Forces Reserve Center(design/build) AFRC-Veh Maint and Combat     24,440
                                                                             Arms.
         77   March ARB, CA                   PDPG 97-0102................  Repair/Replace Marine Deployment Ramp Asphalt......................      1,650
         78   Maxwell AFB, AL                 PNQS 02-9012................  Construct Aircraft Parking Apron...................................     12,000
         79   Maxwell AFB, AL                 PNQS 04-9013................  Squadron Ops/OG/OSF Facility.......................................      5,500
         80   Grissom ARB, IN                 CTGB 98-9001................  Control Tower......................................................      6,500
         81   Westover ARB, MA                YTPM 96-9001................  Vehicle Maintenance Facility.......................................      4,750
         82   Westover ARB, MA                YTPM 97-9001................  Squadron Operation Facility........................................      5,900
         83   Travis AFB, CA                  XDAT 99-3005................  Reserve EOD to Active EOD Facility, add to AD project..............        580
         84   Hill AFB, UT                    KRSM 02-3007................  Fighter Squadron Maintenance Training..............................      5,400
         85   Westover ARB, MA                YTPM 98-9002................  Munitions Storage Complex..........................................      5,000
         86   Grissom ARB, IN                 CTGC 97-9004................  Base Supply Complex................................................      9,500
         87   Pittsburgh ARS, PA              JLSS 99-9004 R2.............  Repair Admin Office Bldg 218, 219..................................      3,800
         88   Youngstown ARS, OH              ZQEL 01-9004................  Phase 3 Joint Services Lodging/Dining Hall.........................     15,300
         89   Dobbins ARB, GA                 FGWB 00-9003................  Fitness Center Renovation..........................................      2,500
         90   Travis AFB, CA                  XDAT 04-9001................  New Airlift Control Flight General Training Facility...............      2,220
         91   Travis AFB, CA                  XDAT 03-9001................  Reserve Fire Fighters to Main Fire Station, add to ADproject.......        490
         92   McGuire AFB, NJ                 PTFL 99-9005................  Airlift Control Flight Facility....................................      2,200
         93   Pittsburgh ARS, PA              JLSS 96-9002 R2.............  West Apron.........................................................      7,100
         94   Pittsburgh ARS, PA              JLSS 99-9003 R2.............  Repair Visiting Airman Quarters Bldg 216, 217......................      3,900
         95   Westover ARB, MA                YTPM 00-9001................  Consolidated AeroMedical Facility..................................      5,600
         96   Travis AFB, CA                  XDAT 04-9002................  New Communication Squadron General Training Fac....................      2,130
         97   Youngstown ARS, OH              ZQEL 98-9040................  Medical Training & Administration..................................      2,200
         98   Dobbins ARB, GA                 FGWB 95-9002................  Regional Training Center...........................................      4,000
         99   Hill AFB, UT                    KRSM 02-3006................  Aerial Port Squadron Training......................................      3,000
        100   Youngstown ARS, OH              ZQEL 04-9001................  General Warehouse Facility.........................................      1,900
        101   Grissom ARB, IN                 CTGC 98-9004................  Taxiway............................................................      7,600
        102   Youngstown ARS, OH              ZQEL 03-9001................  Phase 4 Joint Services Lodging Facility............................      8,100
        103   Maxwell AFB, AL                 PNQS 96-9003................  Aerial Port Training Facility......................................      3,000
        104   March ARB, CA                   PDPG 01-0107................  Improve Taxiway Drainage...........................................      1,700
        105   Pittsburgh ARS, PA              JLSS 01-9018................  ADAL Fitness Center B-120..........................................      4,300
        106   Westover ARB, MA                YTPM 94-0003................  Base Pavements & Grounds Complex...................................      2,760
        107   Gen Mitchell ARS, WI            HTUX 07-9002................  Parking Garage.....................................................      8,500
        108   Youngstown ARS, OH              ZQEL 02-9002................  ADAL Physical Fitness Center.......................................      3,600
        109   Maxwell AFB, AL                 PNQS 02-9011................  Short Field Runway.................................................     11,100
        110   Youngstown ARS, OH              ZQEL 01-9005................  Joint Readiness Training & Deployment Center.......................     10,000
        111   Youngstown ARS, OH              ZQEL 98-9001................  Combat Arms & Security Squadron Facility...........................      3,100
        112   Youngstown ARS, OH              ZQEL 98-9041................  Visitors Center....................................................      2,150
        113   Eglin AFB (Duke Field), FL      FTFA 97-3002................  Jet Fuel Storage (DFSC project)....................................      2,900
        114   Youngstown ARS, OH              ZQEL 04-9002................  Aerial Spray Maintenance Facility (requirement gone)...............      2,650
                                                                                                                                                ------------
                FUNDED PROJECT TOTAL          ............................  ...................................................................    683,220
    --------------------------------------------------------------------------------------------------------------------------------------------------------

                             Conclusion of Hearings

        Senator Feinstein. That completes my questions, and
    Secretary thank you very much Generals, thank you very much.
    And this hearing is recessed.
        [Whereupon, at 3:55 p.m., Wednesday, August 1, the
    subcommittee was recessed, to reconvene subject to the call of
    the Chair.]

           LIST OF WITNESSES, COMMUNICATIONS, AND PREPARED STATEMENTS

                                  ----------
                                                                       Page
    Bergson, Major General Paul C., Military Deputy [Reserve
      Components], Deputy Under Secretary of the Army for
      International Affairs, U.S. Army Reserve, Department of the
      Army, Department of Defense....................................    51

    Craig, Hon. Larry E., U.S. Senator from Idaho:
        Prepared statements

    111____________________________________________________________________

    Prepared statement

    113____________________________________________________________________

    Statement of

    111____________________________________________________________________

    DuBois, Raymond F., Jr., Deputy Under Secretary of Defense for Installation
    and Environment, Office of the Secretary of Defense, Department of Defense

    1______________________________________________________________________

    Prepared statement

    11_____________________________________________________________________

    Statement of

    9______________________________________________________________________

    Duignan, Brigadier General Robert E., Deputy to the Chief, Air Force
    Reserve, Department of the Air Force, Department of Defense

    111____________________________________________________________________

    Feinstein, Hon. Dianne, U.S. Senator from California, opening statements

    1, 85__________________________________________________________________

    Holaday, Duncan, Senior Civilian Official, Office of the Assistant
    Secretary of the Navy, (Installation and Environment), Department of the
    Navy, Department of Defense

    85_____________________________________________________________________

    Prepared statement

    88_____________________________________________________________________

    Statement of

    86_____________________________________________________________________

    Hutchison, Hon. Kay Bailey, U.S. Senator from Texas, statement of

    2______________________________________________________________________

    Johnson, Admiral Michael, USN, Commander, Naval Facilities Engineering
    Command, Department of the Navy, Department of Defense

    85_____________________________________________________________________

    Johnson, Paul W., Deputy Assistant Secretary of the Army for Installation
    and Housing, Department of the Army, Department of Defent

    113____________________________________________________________________

    Statement of

    111____________________________________________________________________

    DuBois, Raymond F., Jr., Deputy Under Secretary of Defense for Installation
    and Environment, Office of the Secretary of Defense, Department of Defense

    1______________________________________________________________________

    Prepared statement

    11_____________________________________________________________________

    Statement of

    9______________________________________________________________________

    Duignan, Brigadier General Robert E., Deputy to the Chief, Air Force
    Reserve, Department of the Air Force, Department of Defense

    111____________________________________________________________________

    Feinstein, Hon. Dianne, U.S. Senator from California, opening statements

    1, 85__________________________________________________________________

    Holaday, Duncan, Senior Civilian Official, Office of the Assistant
    Secretary of the Navy, (Installation and Environment), Department of the
    Navy, Department of Defense

    85_____________________________________________________________________

    Prepared statement

    88_____________________________________________________________________

    Statement of

    86_____________________________________________________________________

    Hutchison, Hon. Kay Bailey, U.S. Senator from Texas, statement of

    2______________________________________________________________________

    Johnson, Admiral Michael, USN, Commander, Naval Facilities Engineering
    Command, Department of the Navy, Department of Defense

    85_____________________________________________________________________

    Johnson, Paul W., Deputy Assistant Secretary of the Army for Installation
    and Housing, Department of the Army, Department of Def

    Statements of

    48, 106________________________________________________________________

    Dishner, Jimmy G., Deputy Assistant Secretary of the Air Force for
    Installations, Department of the Air Force, Department of Defense

    111____________________________________________________________________

    Prepared statement

    113____________________________________________________________________

    Statement of

    111____________________________________________________________________

    DuBois, Raymond F., Jr., Deputy Under Secretary of Defense for Installation
    and Environment, Office of the Secretary of Defense, Department of Defense

    1______________________________________________________________________

    Prepared statement

    11_____________________________________________________________________

    Statement of

    9______________________________________________________________________

    Duignan, Brigadier General Robert E., Deputy to the Chief, Air Force
    Reserve, Department of the Air Force, Department of Defense

    111____________________________________________________________________

    Feinstein, Hon. Dianne, U.S. Senator from California, opening statements

    1, 85__________________________________________________________________

    Holaday, Duncan, Senior Civilian Official, Office of the Assistant
    Secretary of the Navy, (Installation and Environment), Department of the
    Navy, Department of Defense

    85_____________________________________________________________________

    Prepared statement

    88_____________________________________________________________________

    Statement of

    86_____________________________________________________________________

    Hutchison, Hon. Kay Bailey, U.S. Senator from Texas, statement of

    2______________________________________________________________________

    Johnson, Admiral Michael, USN, Commander, Naval Facilities Engineering
    Command, Department of the Navy, Department of Defense

    85_____________________________________________________________________

    Johnson, Paul W., Deputy Assistant Secretary of the Army for Installation
    and Housing, Department of the Army, Department of Defational
    Affairs, U.S. Army Reserve, Department of the Army, Department of Defense

    51_____________________________________________________________________

    Craig, Hon. Larry E., U.S. Senator from Idaho:

    Prepared statements

    49, 106________________________________________________________________

    Statements of

    48, 106________________________________________________________________

    Dishner, Jimmy G., Deputy Assistant Secretary of the Air Force for
    Installations, Department of the Air Force, Department of Defense

    111____________________________________________________________________

    Prepared statement

    113____________________________________________________________________

    Statement of

    111____________________________________________________________________

    DuBois, Raymond F., Jr., Deputy Under Secretary of Defense for Installation
    and Environment, Office of the Secretary of Defense, Department of Defense

    1______________________________________________________________________

    Prepared statement

    11_____________________________________________________________________

    Statement of

    9______________________________________________________________________

    Duignan, Brigadier General Robert E., Deputy to the Chief, Air Force
    Reserve, Department of the Air Force, Department of Defense

    111____________________________________________________________________

    Feinstein, Hon. Dianne, U.S. Senator from California, opening statements

    1, 85__________________________________________________________________

    Holaday, Duncan, Senior Civilian Official, Office of the Assistant
    Secretary of the Navy, (Installation and Environment), Department of the
    Navy, Department of Defense

    85_____________________________________________________________________

    Prepared statement

    88_____________________________________________________________________

    Statement of

    86_____________________________________________________________________

    Hutchison, Hon. Kay Bailey, U.S. Senator from Texas, statement of

    2______________________________________________________________________

    Johnson, Admiral Michael, USN, Commander, Naval Facilities Engineering
    Command, Department of the Navy, Department of Defense

    85_____________________________________________________________________

    Johnson, Paul W., Deputy Assistant Secretary of the Army for Installation
    and Housing, Department of the Army, Department of
    Defetary of the Air Force for Installations, Department
    of the Air Force, Department of Defense

    111____________________________________________________________________

    Prepared statement

    113____________________________________________________________________

    Statement of

    111____________________________________________________________________

    DuBois, Raymond F., Jr., Deputy Under Secretary of Defense for Installation
    and Environment, Office of the Secretary of Defense, Department of Defense

    1______________________________________________________________________

    Prepared statement

    11_____________________________________________________________________

    Statement of

    9______________________________________________________________________

    Duignan, Brigadier General Robert E., Deputy to the Chief, Air Force
    Reserve, Department of the Air Force, Department of Defense

    111____________________________________________________________________

    Feinstein, Hon. Dianne, U.S. Senator from California, opening statements

    1, 85__________________________________________________________________

    Holaday, Duncan, Senior Civilian Official, Office of the Assistant
    Secretary of the Navy, (Installation and Environment), Department of the
    Navy, Department of Defense

    85_____________________________________________________________________

    Prepared statement

    88_____________________________________________________________________

    Statement of

    86_____________________________________________________________________

    Hutchison, Hon. Kay Bailey, U.S. Senator from Texas, statement of

    2______________________________________________________________________

    Johnson, Admiral Michael, USN, Commander, Naval Facilities Engineering
    Command, Department of the Navy, Department of Defense

    85_____________________________________________________________________

    Johnson, Paul W., Deputy Assistant Secretary of the Army for Installation
    and Housing, Department of the Army, Department of Defy
    Assistant Secretary of the Air Force for Installations, Department of the
    Air Force, Department of Defense

    111____________________________________________________________________

    Prepared statement

    113____________________________________________________________________

    Statement of

    111____________________________________________________________________

    DuBois, Raymond F., Jr., Deputy Under Secretary of Defense for Installation
    and Environment, Office of the Secretary of Defense, Department of Defense

    1______________________________________________________________________

    Prepared statement

    11_____________________________________________________________________

    Statement of

    9______________________________________________________________________

    Duignan, Brigadier General Robert E., Deputy to the Chief, Air Force
    Reserve, Department of the Air Force, Department of Defense

    111____________________________________________________________________

    Feinstein, Hon. Dianne, U.S. Senator from California, opening statements

    1, 85__________________________________________________________________

    Holaday, Duncan, Senior Civilian Official, Office of the Assistant
    Secretary of the Navy, (Installation and Environment), Department of the
    Navy, Department of Defense

    85_____________________________________________________________________

    Prepared statement

    88_____________________________________________________________________

    Statement of

    86_____________________________________________________________________

    Hutchison, Hon. Kay Bailey, U.S. Senator from Texas, statement of

    2______________________________________________________________________

    Johnson, Admiral Michael, USN, Commander, Naval Facilities Engineering
    Command, Department of the Navy, Department of Defense

    85_____________________________________________________________________

    Johnson, Paul W., Deputy Assistant Secretary of the Army for Installation
    and Housing, Department of the Army, Department of Deft
    of Defense

    111____________________________________________________________________

    Prepared statement

    113____________________________________________________________________

    Statement of

    111____________________________________________________________________

    DuBois, Raymond F., Jr., Deputy Under Secretary of Defense for Installation
    and Environment, Office of the Secretary of Defense, Department of Defense

    1______________________________________________________________________

    Prepared statement

    11_____________________________________________________________________

    Statement of

    9______________________________________________________________________

    Duignan, Brigadier General Robert E., Deputy to the Chief, Air Force
    Reserve, Department of the Air Force, Department of Defense

    111____________________________________________________________________

    Feinstein, Hon. Dianne, U.S. Senator from California, opening statements

    1, 85__________________________________________________________________

    Holaday, Duncan, Senior Civilian Official, Office of the Assistant
    Secretary of the Navy, (Installation and Environment), Department of the
    Navy, Department of Defense

    85_____________________________________________________________________

    Prepared statement

    88_____________________________________________________________________

    Statement of

    86_____________________________________________________________________

    Hutchison, Hon. Kay Bailey, U.S. Senator from Texas, statement of

    2______________________________________________________________________

    Johnson, Admiral Michael, USN, Commander, Naval Facilities Engineering
    Command, Department of the Navy, Department of Defense

    85_____________________________________________________________________

    Johnson, Paul W., Deputy Assistant Secretary of the Army for Installation
    and Housing, Department of the Army, Department of Def Statements
    of ment of the Air Force, Department of Defense

    111____________________________________________________________________

    Prepared statement

    113____________________________________________________________________

    Statement of

    111____________________________________________________________________

    DuBois, Raymond F., Jr., Deputy Under Secretary of Defense for Installation
    and Environment, Office of the Secretary of Defense, Department of Defense

    1______________________________________________________________________

    Prepared statement

    11_____________________________________________________________________

    Statement of

    9______________________________________________________________________

    Duignan, Brigadier General Robert E., Deputy to the Chief, Air Force
    Reserve, Department of the Air Force, Department of Defense

    111____________________________________________________________________

    Feinstein, Hon. Dianne, U.S. Senator from California, opening statements

    1, 85__________________________________________________________________

    Holaday, Duncan, Senior Civilian Official, Office of the Assistant
    Secretary of the Navy, (Installation and Environment), Department of the
    Navy, Department of Defense

    85_____________________________________________________________________

    Prepared statement

    88_____________________________________________________________________

    Statement of

    86_____________________________________________________________________

    Hutchison, Hon. Kay Bailey, U.S. Senator from Texas, statement of

    2______________________________________________________________________

    Johnson, Admiral Michael, USN, Commander, Naval Facilities Engineering
    Command, Department of the Navy, Department of Defense

    85_____________________________________________________________________

    Johnson, Paul W., Deputy Assistant Secretary of the Army for Installation
    and Housing, Department of the Army, Department of
    Def3Prepared statement

    113____________________________________________________________________

    Statement of

    111____________________________________________________________________

    DuBois, Raymond F., Jr., Deputy Under Secretary of Defense for Installation
    and Environment, Office of the Secretary of Defense, Department of Defense

    1______________________________________________________________________

    Prepared statement

    11_____________________________________________________________________

    Statement of

    9______________________________________________________________________

    Duignan, Brigadier General Robert E., Deputy to the Chief, Air Force
    Reserve, Department of the Air Force, Department of Defense

    111____________________________________________________________________

    Feinstein, Hon. Dianne, U.S. Senator from California, opening statements

    1, 85__________________________________________________________________

    Holaday, Duncan, Senior Civilian Official, Office of the Assistant
    Secretary of the Navy, (Installation and Environment), Department of the
    Navy, Department of Defense

    85_____________________________________________________________________

    Prepared statement

    88_____________________________________________________________________

    Statement of

    86_____________________________________________________________________

    Hutchison, Hon. Kay Bailey, U.S. Senator from Texas, statement of

    2______________________________________________________________________

    Johnson, Admiral Michael, USN, Commander, Naval Facilities Engineering
    Command, Department of the Navy, Department of Defense

    85_____________________________________________________________________

    Johnson, Paul W., Deputy Assistant Secretary of the Army for Installation
    and Housing, Department of the Army, Department of Def

    Statements of

    48, 106________________________________________________________________

    Dishner, Jimmy G., Deputy Assistant Secretary of the Air Force for
    Installations, Department of the Air Force, Department of Defense

    111____________________________________________________________________

    Prepared statement

    113____________________________________________________________________

    Statement of

    111____________________________________________________________________

    DuBois, Raymond F., Jr., Deputy Under Secretary of Defense for Installation
    and Environment, Office of the Secretary of Defense, Department of Defense

    1______________________________________________________________________

    Prepared statement

    11_____________________________________________________________________

    Statement of

    9______________________________________________________________________

    Duignan, Brigadier General Robert E., Deputy to the Chief, Air Force
    Reserve, Department of the Air Force, Department of Defense

    111____________________________________________________________________

    Feinstein, Hon. Dianne, U.S. Senator from California, opening statements

    1, 85__________________________________________________________________

    Holaday, Duncan, Senior Civilian Official, Office of the Assistant
    Secretary of the Navy, (Installation and Environment), Department of the
    Navy, Department of Defense

    85_____________________________________________________________________

    Prepared statement

    88_____________________________________________________________________

    Statement of

    86_____________________________________________________________________

    Hutchison, Hon. Kay Bailey, U.S. Senator from Texas, statement of

    2______________________________________________________________________

    Johnson, Admiral Michael, USN, Commander, Naval Facilities Engineering
    Command, Department of the Navy, Department of Defense

    85_____________________________________________________________________

    Johnson, Paul W., Deputy Assistant Secretary of the Army for Installation
    and Housing, Department of the Army, Department of Defational
    Affairs, U.S. Army Reserve, Department of the Army, Department of Defense

    51_____________________________________________________________________

    Craig, Hon. Larry E., U.S. Senator from Idaho:

    Prepared statements

    49, 106________________________________________________________________

    Statements of

    48, 106________________________________________________________________

    Dishner, Jimmy G., Deputy Assistant Secretary of the Air Force for
    Installations, Department of the Air Force, Department of Defense

    111____________________________________________________________________

    Prepared statement

    113____________________________________________________________________

    Statement of

    111____________________________________________________________________

    DuBois, Raymond F., Jr., Deputy Under Secretary of Defense for Installation
    and Environment, Office of the Secretary of Defense, Department of Defense

    1______________________________________________________________________

    Prepared statement

    11_____________________________________________________________________

    Statement of

    9______________________________________________________________________

    Duignan, Brigadier General Robert E., Deputy to the Chief, Air Force
    Reserve, Department of the Air Force, Department of Defense

    111____________________________________________________________________

    Feinstein, Hon. Dianne, U.S. Senator from California, opening statements

    1, 85__________________________________________________________________

    Holaday, Duncan, Senior Civilian Official, Office of the Assistant
    Secretary of the Navy, (Installation and Environment), Department of the
    Navy, Department of Defense

    85_____________________________________________________________________

    Prepared statement

    88_____________________________________________________________________

    Statement of

    86_____________________________________________________________________

    Hutchison, Hon. Kay Bailey, U.S. Senator from Texas, statement of

    2______________________________________________________________________

    Johnson, Admiral Michael, USN, Commander, Naval Facilities Engineering
    Command, Department of the Navy, Department of Defense

    85_____________________________________________________________________

    Johnson, Paul W., Deputy Assistant Secretary of the Army for Installation
    and Housing, Department of the Army, Department of
    Defetary of the Air Force for Installations, Department
    of the Air Force, Department of Defense

    111____________________________________________________________________

    Prepared statement

    113____________________________________________________________________

    Statement of

    111____________________________________________________________________

    DuBois, Raymond F., Jr., Deputy Under Secretary of Defense for Installation
    and Environment, Office of the Secretary of Defense, Department of Defense

    1______________________________________________________________________

    Prepared statement

    11_____________________________________________________________________

    Statement of

    9______________________________________________________________________

    Duignan, Brigadier General Robert E., Deputy to the Chief, Air Force
    Reserve, Department of the Air Force, Department of Defense

    111____________________________________________________________________

    Feinstein, Hon. Dianne, U.S. Senator from California, opening statements

    1, 85__________________________________________________________________

    Holaday, Duncan, Senior Civilian Official, Office of the Assistant
    Secretary of the Navy, (Installation and Environment), Department of the
    Navy, Department of Defense

    85_____________________________________________________________________

    Prepared statement

    88_____________________________________________________________________

    Statement of

    86_____________________________________________________________________

    Hutchison, Hon. Kay Bailey, U.S. Senator from Texas, statement of

    2______________________________________________________________________

    Johnson, Admiral Michael, USN, Commander, Naval Facilities Engineering
    Command, Department of the Navy, Department of Defense

    85_____________________________________________________________________

    Johnson, Paul W., Deputy Assistant Secretary of the Army for Installation
    and Housing, Department of the Army, Department of Defy
    Assistant Secretary of the Air Force for Installations, Department of the
    Air Force, Department of Defense

    111____________________________________________________________________

    Prepared statement

    113____________________________________________________________________

    Statement of

    111____________________________________________________________________

    DuBois, Raymond F., Jr., Deputy Under Secretary of Defense for Installation
    and Environment, Office of the Secretary of Defense, Department of Defense

    1______________________________________________________________________

    Prepared statement

    11_____________________________________________________________________

    Statement of

    9______________________________________________________________________

    Duignan, Brigadier General Robert E., Deputy to the Chief, Air Force
    Reserve, Department of the Air Force, Department of Defense

    111____________________________________________________________________

    Feinstein, Hon. Dianne, U.S. Senator from California, opening statements

    1, 85__________________________________________________________________

    Holaday, Duncan, Senior Civilian Official, Office of the Assistant
    Secretary of the Navy, (Installation and Environment), Department of the
    Navy, Department of Defense

    85_____________________________________________________________________

    Prepared statement

    88_____________________________________________________________________

    Statement of

    86_____________________________________________________________________

    Hutchison, Hon. Kay Bailey, U.S. Senator from Texas, statement of

    2______________________________________________________________________

    Johnson, Admiral Michael, USN, Commander, Naval Facilities Engineering
    Command, Department of the Navy, Department of Defense

    85_____________________________________________________________________

    Johnson, Paul W., Deputy Assistant Secretary of the Army for Installation
    and Housing, Department of the Army, Department of Deft
    of Defense

    111____________________________________________________________________

    Prepared statement

    113____________________________________________________________________

    Statement of

    111____________________________________________________________________

    DuBois, Raymond F., Jr., Deputy Under Secretary of Defense for Installation
    and Environment, Office of the Secretary of Defense, Department of Defense

    1______________________________________________________________________

    Prepared statement

    11_____________________________________________________________________

    Statement of

    9______________________________________________________________________

    Duignan, Brigadier General Robert E., Deputy to the Chief, Air Force
    Reserve, Department of the Air Force, Department of Defense

    111____________________________________________________________________

    Feinstein, Hon. Dianne, U.S. Senator from California, opening statements

    1, 85__________________________________________________________________

    Holaday, Duncan, Senior Civilian Official, Office of the Assistant
    Secretary of the Navy, (Installation and Environment), Department of the
    Navy, Department of Defense

    85_____________________________________________________________________

    Prepared statement

    88_____________________________________________________________________

    Statement of

    86_____________________________________________________________________

    Hutchison, Hon. Kay Bailey, U.S. Senator from Texas, statement of

    2______________________________________________________________________

    Johnson, Admiral Michael, USN, Commander, Naval Facilities Engineering
    Command, Department of the Navy, Department of Defense

    85_____________________________________________________________________

    Johnson, Paul W., Deputy Assistant Secretary of the Army for Installation
    and Housing, Department of the Army, Department of DefDishner,
    Jimmy G., Deputy Assistant Secretary of the Air Force for Installations,
    Department of the Air Force, Department of
    Defense........................................................ 111
    Prepared statement........................................... 113 Statement
    of................................................. 111DuBois, Raymond F.,
    Jr., Deputy Under Secretary of Defense for Installation and Environment,
    Office of the Secretary of Defense, Department of
    Defense................................. 1 Prepared
    statement........................................... 11 Statement
    of................................................. 9Duignan, Brigadier
    General Robert E., Deputy to the Chief, Air Force Reserve, Department of
    the Air Force, Department of
    Defense........................................................
    111Feinstein, Hon. Dianne, U.S. Senator from California, opening statements
    etary of the Air Force for Installations, Department of the Air
    Force, Department of Defense

    111____________________________________________________________________

    Prepared statement

    113____________________________________________________________________

    Statement of

    111____________________________________________________________________

    DuBois, Raymond F., Jr., Deputy Under Secretary of Defense for Installation
    and Environment, Office of the Secretary of Defense, Department of Defense

    1______________________________________________________________________

    Prepared statement

    11_____________________________________________________________________

    Statement of

    9______________________________________________________________________

    Duignan, Brigadier General Robert E., Deputy to the Chief, Air Force
    Reserve, Department of the Air Force, Department of Defense

    111____________________________________________________________________

    Feinstein, Hon. Dianne, U.S. Senator from California, opening statements

    1, 85__________________________________________________________________

    Holaday, Duncan, Senior Civilian Official, Office of the Assistant
    Secretary of the Navy, (Installation and Environment), Department of the
    Navy, Department of Defense

    85_____________________________________________________________________

    Prepared statement

    88_____________________________________________________________________

    Statement of

    86_____________________________________________________________________

    Hutchison, Hon. Kay Bailey, U.S. Senator from Texas, statement of

    2______________________________________________________________________

    Johnson, Admiral Michael, USN, Commander, Naval Facilities Engineering
    Command, Department of the Navy, Department of Defense

    85_____________________________________________________________________

    Johnson, Paul W., Deputy Assistant Secretary of the Army for Installation
    and Housing, Department of the Army, Department of Def

    Statements of

    48, 106________________________________________________________________

    Dishner, Jimmy G., Deputy Assistant Secretary of the Air Force for
    Installations, Department of the Air Force, Department of Defense

    111____________________________________________________________________

    Prepared statement

    113____________________________________________________________________

    Statement of

    111____________________________________________________________________

    DuBois, Raymond F., Jr., Deputy Under Secretary of Defense for Installation
    and Environment, Office of the Secretary of Defense, Department of Defense

    1______________________________________________________________________

    Prepared statement

    11_____________________________________________________________________

    Statement of

    9______________________________________________________________________

    Duignan, Brigadier General Robert E., Deputy to the Chief, Air Force
    Reserve, Department of the Air Force, Department of Defense

    111____________________________________________________________________

    Feinstein, Hon. Dianne, U.S. Senator from California, opening statements

    1, 85__________________________________________________________________

    Holaday, Duncan, Senior Civilian Official, Office of the Assistant
    Secretary of the Navy, (Installation and Environment), Department of the
    Navy, Department of Defense

    85_____________________________________________________________________

    Prepared statement

    88_____________________________________________________________________

    Statement of

    86_____________________________________________________________________

    Hutchison, Hon. Kay Bailey, U.S. Senator from Texas, statement of

    2______________________________________________________________________

    Johnson, Admiral Michael, USN, Commander, Naval Facilities Engineering
    Command, Department of the Navy, Department of Defense

    85_____________________________________________________________________

    Johnson, Paul W., Deputy Assistant Secretary of the Army for Installation
    and Housing, Department of the Army, Department of Defational
    Affairs, U.S. Army Reserve, Department of the Army, Department of Defense

    51_____________________________________________________________________

    Craig, Hon. Larry E., U.S. Senator from Idaho:

    Prepared statements

    49, 106________________________________________________________________

    Statements of

    48, 106________________________________________________________________

    Dishner, Jimmy G., Deputy Assistant Secretary of the Air Force for
    Installations, Department of the Air Force, Department of Defense

    111____________________________________________________________________

    Prepared statement

    113____________________________________________________________________

    Statement of

    111____________________________________________________________________

    DuBois, Raymond F., Jr., Deputy Under Secretary of Defense for Installation
    and Environment, Office of the Secretary of Defense, Department of Defense

    1______________________________________________________________________

    Prepared statement

    11_____________________________________________________________________

    Statement of

    9______________________________________________________________________

    Duignan, Brigadier General Robert E., Deputy to the Chief, Air Force
    Reserve, Department of the Air Force, Department of Defense

    111____________________________________________________________________

    Feinstein, Hon. Dianne, U.S. Senator from California, opening statements

    1, 85__________________________________________________________________

    Holaday, Duncan, Senior Civilian Official, Office of the Assistant
    Secretary of the Navy, (Installation and Environment), Department of the
    Navy, Department of Defense

    85_____________________________________________________________________

    Prepared statement

    88_____________________________________________________________________

    Statement of

    86_____________________________________________________________________

    Hutchison, Hon. Kay Bailey, U.S. Senator from Texas, statement of

    2______________________________________________________________________

    Johnson, Admiral Michael, USN, Commander, Naval Facilities Engineering
    Command, Department of the Navy, Department of Defense

    85_____________________________________________________________________

    Johnson, Paul W., Deputy Assistant Secretary of the Army for Installation
    and Housing, Department of the Army, Department of
    Def3Prepared statement

    113____________________________________________________________________

    Statement of

    111____________________________________________________________________

    DuBois, Raymond F., Jr., Deputy Under Secretary of Defense for Installation
    and Environment, Office of the Secretary of Defense, Department of Defense

    1______________________________________________________________________

    Prepared statement

    11_____________________________________________________________________

    Statement of

    9______________________________________________________________________

    Duignan, Brigadier General Robert E., Deputy to the Chief, Air Force
    Reserve, Department of the Air Force, Department of Defense

    111____________________________________________________________________

    Feinstein, Hon. Dianne, U.S. Senator from California, opening statements

    1, 85__________________________________________________________________

    Holaday, Duncan, Senior Civilian Official, Office of the Assistant
    Secretary of the Navy, (Installation and Environment), Department of the
    Navy, Department of Defense

    85_____________________________________________________________________

    Prepared statement

    88_____________________________________________________________________

    Statement of

    86_____________________________________________________________________

    Hutchison, Hon. Kay Bailey, U.S. Senator from Texas, statement of

    2______________________________________________________________________

    Johnson, Admiral Michael, USN, Commander, Naval Facilities Engineering
    Command, Department of the Navy, Department of Defense

    85_____________________________________________________________________

    Johnson, Paul W., Deputy Assistant Secretary of the Army for Installation
    and Housing, Department of the Army, Department of
    DefForce, Department of Defense

    111____________________________________________________________________

    Prepared statement

    113____________________________________________________________________

    Statement of

    111____________________________________________________________________

    DuBois, Raymond F., Jr., Deputy Under Secretary of Defense for Installation
    and Environment, Office of the Secretary of Defense, Department of Defense

    1______________________________________________________________________

    Prepared statement

    11_____________________________________________________________________

    Statement of

    9______________________________________________________________________

    Duignan, Brigadier General Robert E., Deputy to the Chief, Air Force
    Reserve, Department of the Air Force, Department of Defense

    111____________________________________________________________________

    Feinstein, Hon. Dianne, U.S. Senator from California, opening statements

    1, 85__________________________________________________________________

    Holaday, Duncan, Senior Civilian Official, Office of the Assistant
    Secretary of the Navy, (Installation and Environment), Department of the
    Navy, Department of Defense

    85_____________________________________________________________________

    Prepared statement

    88_____________________________________________________________________

    Statement of

    86_____________________________________________________________________

    Hutchison, Hon. Kay Bailey, U.S. Senator from Texas, statement of

    2______________________________________________________________________

    Johnson, Admiral Michael, USN, Commander, Naval Facilities Engineering
    Command, Department of the Navy, Department of Defense

    85_____________________________________________________________________

    Johnson, Paul W., Deputy Assistant Secretary of the Army for Installation
    and Housing, Department of the Army, Department of DefHoladay,
    Duncan, Senior Civilian Official, Office of the Assistant Secretary of the
    Navy, (Installation and Environment), Department of the Navy, Department of
    Defense.... 85 Prepared
    statement........................................... 88 Statement
    of................................................. 86Hutchison, Hon. Kay
    Bailey, U.S. Senator from Texas, statement of 2Johnson, Admiral Michael,
    USN, Commander, Naval Facilities Engineering Command, Department of the
    Navy, Department of
    Defense........................................................ 85Johnson,
    Paul W., Deputy Assistant Secretary of the Army for Installation and
    Housing, Department of the Army, Department of
    Defense........................................................ 51 Prepared
    statement........................................... 52 Statement
    of................................................. 51Kimmel, Brigadier
    General Paul S., Chief Operating Officer, Air National Guard, Department of
    the Air Force, Department of
    Defense........................................................
    111McKissock, General Gary, Installation and Logistics, Marine Corps,
    Department of the Navy, Department of Defense........... 85Molino, John,
    Deputy Assistant Secretary of Defense, Military Community and Family
    Policy, Defense Agencies, Department of
    Defense........................................................ 27 Prepared
    statement........................................... 28 Statement
    of................................................. 27Preston, Rear Admiral
    Noel, Deputy Director, Naval Reserve, Department of the Navy, Department of
    Defense.................. 85Randolph, Major General Leonard M., Jr., Deputy
    Executive Director, Tricare Management Activity, Defense Agencies,
    Department of Defense.......................................... 27 Prepared
    statement........................................... 40 Statement
    of................................................. 39Robbins, Major
    General Earnest O., II, HQ USAF, Civil Engineer, Deputy Chief of Staff,
    Installations and Logistics, Department of the Air Force, Department of
    Defense........................ 111Sanders, Dr. Patricia, Deputy Director
    for Test, Simulation and Evaluation, Ballistic Missile Defense
    Organization, Defense Agencies, Department of
    Defense................................ 27 Prepared
    statement........................................... 32 Statement
    of................................................. 31Squier, Brigadier
    General Michael J., Deputy Director, Army National Guard, Department of the
    Army, Department of Defense.. 51Tangney, Lieutenant General William P.,
    Deputy Commander in Chief, Special Operations Command, Defense Agencies,
    Department of Defense.....................................................
    27 Prepared statement........................................... 36
    Statement of................................................. 35Van
    Antwerp, Major General Robert L., Jr., Assistant Chief of Staff for
    Installation Management, Department of the Army, Department of De-
    fense.......................................................... 51Zakheim,
    Hon. Dov S., Under Secretary of Defense (Comptroller), Office of the
    Secretary of Defense, Department of Defense...... 1 Prepared
    statement........................................... 5 Statement
    of................................................. 3 SUBJECT INDEX -------
    --- DEPARTMENT OF DEFENSE Defense Agencies Ballistic Missile Defense
    Organization PageMilitary construction: Appropriation, fiscal year
    2001.............................. 35 Funding
    (MILCON)............................................. 32Missile defense
    system test bed.................................. 33Space based laser test
    facility.................................. 35 Special Operations
    CommandMilcon program................................................... 37
    Tricare Management ActivityAccess to care/quality of
    life................................... 42Projects seeking re-
    appropriation................................ 43Readiness
    projects............................................... 41 Department of
    the Air ForceAccommodate new
    missions......................................... 113Air National Guard
    military construction......................... 128Aviano Air Force
    Base............................................ 124Base: Closure
    account.............................................. 116 Realignment and
    closure...................................... 121Castle Air Force
    Base............................................ 122Consolidating bases
    overseas..................................... 123Demolition programs,
    continue.................................... 116Environmental leadership,
    continue............................... 116Fitness
    center................................................... 117German
    bases..................................................... 124Global
    Hawk...................................................... 119Housing
    privatization............................................ 124McClellan Air
    Force Base etary of the Air Force for Installations, Department
    of the Air Force, Department of Defense

    111____________________________________________________________________

    Prepared statement

    113____________________________________________________________________

    Statement of

    111____________________________________________________________________

    DuBois, Raymond F., Jr., Deputy Under Secretary of Defense for Installation
    and Environment, Office of the Secretary of Defense, Department of Defense

    1______________________________________________________________________

    Prepared statement

    11_____________________________________________________________________

    Statement of

    9______________________________________________________________________

    Duignan, Brigadier General Robert E., Deputy to the Chief, Air Force
    Reserve, Department of the Air Force, Department of Defense

    111____________________________________________________________________

    Feinstein, Hon. Dianne, U.S. Senator from California, opening statements

    1, 85__________________________________________________________________

    Holaday, Duncan, Senior Civilian Official, Office of the Assistant
    Secretary of the Navy, (Installation and Environment), Department of the
    Navy, Department of Defense

    85_____________________________________________________________________

    Prepared statement

    88_____________________________________________________________________

    Statement of

    86_____________________________________________________________________

    Hutchison, Hon. Kay Bailey, U.S. Senator from Texas, statement of

    2______________________________________________________________________

    Johnson, Admiral Michael, USN, Commander, Naval Facilities Engineering
    Command, Department of the Navy, Department of Defense

    85_____________________________________________________________________

    Johnson, Paul W., Deputy Assistant Secretary of the Army for Installation
    and Housing, Department of the Army, Department of Defetary of the
    Air Force for Installations, Department of the Air Force, Department of
    Defense

    111____________________________________________________________________

    Prepared statement

    113____________________________________________________________________

    Statement of

    111____________________________________________________________________

    DuBois, Raymond F., Jr., Deputy Under Secretary of Defense for Installation
    and Environment, Office of the Secretary of Defense, Department of Defense

    1______________________________________________________________________

    Prepared statement

    11_____________________________________________________________________

    Statement of

    9______________________________________________________________________

    Duignan, Brigadier General Robert E., Deputy to the Chief, Air Force
    Reserve, Department of the Air Force, Department of Defense

    111____________________________________________________________________

    Feinstein, Hon. Dianne, U.S. Senator from California, opening statements

    1, 85__________________________________________________________________

    Holaday, Duncan, Senior Civilian Official, Office of the Assistant
    Secretary of the Navy, (Installation and Environment), Department of the
    Navy, Department of Defense

    85_____________________________________________________________________

    Prepared statement

    88_____________________________________________________________________

    Statement of

    86_____________________________________________________________________

    Hutchison, Hon. Kay Bailey, U.S. Senator from Texas, statement of

    2______________________________________________________________________

    Johnson, Admiral Michael, USN, Commander, Naval Facilities Engineering
    Command, Department of the Navy, Department of Defense

    85_____________________________________________________________________

    Johnson, Paul W., Deputy Assistant Secretary of the Army for Installation
    and Housing, Department of the Army, Department of Defent

    113____________________________________________________________________

    Statement of

    111____________________________________________________________________

    DuBois, Raymond F., Jr., Deputy Under Secretary of Defense for Installation
    and Environment, Office of the Secretary of Defense, Department of Defense

    1______________________________________________________________________

    Prepared statement

    11_____________________________________________________________________

    Statement of

    9______________________________________________________________________

    Duignan, Brigadier General Robert E., Deputy to the Chief, Air Force
    Reserve, Department of the Air Force, Department of Defense

    111____________________________________________________________________

    Feinstein, Hon. Dianne, U.S. Senator from California, opening statements

    1, 85__________________________________________________________________

    Holaday, Duncan, Senior Civilian Official, Office of the Assistant
    Secretary of the Navy, (Installation and Environment), Department of the
    Navy, Department of Defense

    85_____________________________________________________________________

    Prepared statement

    88_____________________________________________________________________

    Statement of

    86_____________________________________________________________________

    Hutchison, Hon. Kay Bailey, U.S. Senator from Texas, statement of

    2______________________________________________________________________

    Johnson, Admiral Michael, USN, Commander, Naval Facilities Engineering
    Command, Department of the Navy, Department of Defense

    85_____________________________________________________________________

    Johnson, Paul W., Deputy Assistant Secretary of the Army for Installation
    and Housing, Department of the Army, Department of Def

    Statements of

    48, 106________________________________________________________________

    Dishner, Jimmy G., Deputy Assistant Secretary of the Air Force for
    Installations, Department of the Air Force, Department of Defense

    111____________________________________________________________________

    Prepared statement

    113____________________________________________________________________

    Statement of

    111____________________________________________________________________

    DuBois, Raymond F., Jr., Deputy Under Secretary of Defense for Installation
    and Environment, Office of the Secretary of Defense, Department of Defense

    1______________________________________________________________________

    Prepared statement

    11_____________________________________________________________________

    Statement of

    9______________________________________________________________________

    Duignan, Brigadier General Robert E., Deputy to the Chief, Air Force
    Reserve, Department of the Air Force, Department of Defense

    111____________________________________________________________________

    Feinstein, Hon. Dianne, U.S. Senator from California, opening statements

    1, 85__________________________________________________________________

    Holaday, Duncan, Senior Civilian Official, Office of the Assistant
    Secretary of the Navy, (Installation and Environment), Department of the
    Navy, Department of Defense

    85_____________________________________________________________________

    Prepared statement

    88_____________________________________________________________________

    Statement of

    86_____________________________________________________________________

    Hutchison, Hon. Kay Bailey, U.S. Senator from Texas, statement of

    2______________________________________________________________________

    Johnson, Admiral Michael, USN, Commander, Naval Facilities Engineering
    Command, Department of the Navy, Department of Defense

    85_____________________________________________________________________

    Johnson, Paul W., Deputy Assistant Secretary of the Army for Installation
    and Housing, Department of the Army, Department of Defational
    Affairs, U.S. Army Reserve, Department of the Army, Department of Defense

    51_____________________________________________________________________

    Craig, Hon. Larry E., U.S. Senator from Idaho:

    Prepared statements

    49, 106________________________________________________________________

    Statements of

    48, 106________________________________________________________________

    Dishner, Jimmy G., Deputy Assistant Secretary of the Air Force for
    Installations, Department of the Air Force, Department of Defense

    111____________________________________________________________________

    Prepared statement

    113____________________________________________________________________

    Statement of

    111____________________________________________________________________

    DuBois, Raymond F., Jr., Deputy Under Secretary of Defense for Installation
    and Environment, Office of the Secretary of Defense, Department of Defense

    1______________________________________________________________________

    Prepared statement

    11_____________________________________________________________________

    Statement of

    9______________________________________________________________________

    Duignan, Brigadier General Robert E., Deputy to the Chief, Air Force
    Reserve, Department of the Air Force, Department of Defense

    111____________________________________________________________________

    Feinstein, Hon. Dianne, U.S. Senator from California, opening statements

    1, 85__________________________________________________________________

    Holaday, Duncan, Senior Civilian Official, Office of the Assistant
    Secretary of the Navy, (Installation and Environment), Department of the
    Navy, Department of Defense

    85_____________________________________________________________________

    Prepared statement

    88_____________________________________________________________________

    Statement of

    86_____________________________________________________________________

    Hutchison, Hon. Kay Bailey, U.S. Senator from Texas, statement of

    2______________________________________________________________________

    Johnson, Admiral Michael, USN, Commander, Naval Facilities Engineering
    Command, Department of the Navy, Department of Defense

    85_____________________________________________________________________

    Johnson, Paul W., Deputy Assistant Secretary of the Army for Installation
    and Housing, Department of the Army, Department of
    Defetary of the Air Force for Installations, Department
    of the Air Force, Department of Defense

    111____________________________________________________________________

    Prepared statement

    113____________________________________________________________________

    Statement of

    111____________________________________________________________________

    DuBois, Raymond F., Jr., Deputy Under Secretary of Defense for Installation
    and Environment, Office of the Secretary of Defense, Department of Defense

    1______________________________________________________________________

    Prepared statement

    11_____________________________________________________________________

    Statement of

    9______________________________________________________________________

    Duignan, Brigadier General Robert E., Deputy to the Chief, Air Force
    Reserve, Department of the Air Force, Department of Defense

    111____________________________________________________________________

    Feinstein, Hon. Dianne, U.S. Senator from California, opening statements

    1, 85__________________________________________________________________

    Holaday, Duncan, Senior Civilian Official, Office of the Assistant
    Secretary of the Navy, (Installation and Environment), Department of the
    Navy, Department of Defense

    85_____________________________________________________________________

    Prepared statement

    88_____________________________________________________________________

    Statement of

    86_____________________________________________________________________

    Hutchison, Hon. Kay Bailey, U.S. Senator from Texas, statement of

    2______________________________________________________________________

    Johnson, Admiral Michael, USN, Commander, Naval Facilities Engineering
    Command, Department of the Navy, Department of Defense

    85_____________________________________________________________________

    Johnson, Paul W., Deputy Assistant Secretary of the Army for Installation
    and Housing, Department of the Army, Department of Def
    Force for Installations, Department of the Air Force, Department of Defense

    111____________________________________________________________________

    Prepared statement

    113____________________________________________________________________

    Statement of

    111____________________________________________________________________

    DuBois, Raymond F., Jr., Deputy Under Secretary of Defense for Installation
    and Environment, Office of the Secretary of Defense, Department of Defense

    1______________________________________________________________________

    Prepared statement

    11_____________________________________________________________________

    Statement of

    9______________________________________________________________________

    Duignan, Brigadier General Robert E., Deputy to the Chief, Air Force
    Reserve, Department of the Air Force, Department of Defense

    111____________________________________________________________________

    Feinstein, Hon. Dianne, U.S. Senator from California, opening statements

    1, 85__________________________________________________________________

    Holaday, Duncan, Senior Civilian Official, Office of the Assistant
    Secretary of the Navy, (Installation and Environment), Department of the
    Navy, Department of Defense

    85_____________________________________________________________________

    Prepared statement

    88_____________________________________________________________________

    Statement of

    86_____________________________________________________________________

    Hutchison, Hon. Kay Bailey, U.S. Senator from Texas, statement of

    2______________________________________________________________________

    Johnson, Admiral Michael, USN, Commander, Naval Facilities Engineering
    Command, Department of the Navy, Department of Defense

    85_____________________________________________________________________

    Johnson, Paul W., Deputy Assistant Secretary of the Army for Installation
    and Housing, Department of the Army, Department of Defy
    Assistant Secretary of the Air Force for Installations, Department of the
    Air Force, Department of Defense

    111____________________________________________________________________

    Prepared statement

    113____________________________________________________________________

    Statement of

    111____________________________________________________________________

    DuBois, Raymond F., Jr., Deputy Under Secretary of Defense for Installation
    and Environment, Office of the Secretary of Defense, Department of Defense

    1______________________________________________________________________

    Prepared statement

    11_____________________________________________________________________

    Statement of

    9______________________________________________________________________

    Duignan, Brigadier General Robert E., Deputy to the Chief, Air Force
    Reserve, Department of the Air Force, Department of Defense

    111____________________________________________________________________

    Feinstein, Hon. Dianne, U.S. Senator from California, opening statements

    1, 85__________________________________________________________________

    Holaday, Duncan, Senior Civilian Official, Office of the Assistant
    Secretary of the Navy, (Installation and Environment), Department of the
    Navy, Department of Defense

    85_____________________________________________________________________

    Prepared statement

    88_____________________________________________________________________

    Statement of

    86_____________________________________________________________________

    Hutchison, Hon. Kay Bailey, U.S. Senator from Texas, statement of

    2______________________________________________________________________

    Johnson, Admiral Michael, USN, Commander, Naval Facilities Engineering
    Command, Department of the Navy, Department of Defense

    85_____________________________________________________________________

    Johnson, Paul W., Deputy Assistant Secretary of the Army for Installation
    and Housing, Department of the Army, Department of DefMilitary
    construction: Backlog......................................................
    119 Ballistic missile defense....................................
    127Mountain Home Air Force Base.....................................
    127Public and private resources, optimize use of....................
    116Overseas bases...................................................
    122Quality of life, invest in.......................................
    114Sustain, restore and modernize our infrastructure................
    115Unfunded priorities.............................................. 128
    List......................................................... 128Vandenberg
    Air Force Base........................................ 118Warren Air force
    Base............................................ 117 Department of the
    ArmyAmmunition demilitarization......................................
    56Army: Family housing............................................... 58
    National Guard............................................... 66
    Reserve...................................................... 67Base
    realignment and closure (BRAC).............................. 64Budget
    request analysis Force, Department of Defense

    111____________________________________________________________________

    Prepared statement

    113____________________________________________________________________

    Statement of

    111____________________________________________________________________

    DuBois, Raymond F., Jr., Deputy Under Secretary of Defense for Installation
    and Environment, Office of the Secretary of Defense, Department of Defense

    1______________________________________________________________________

    Prepared statement

    11_____________________________________________________________________

    Statement of

    9______________________________________________________________________

    Duignan, Brigadier General Robert E., Deputy to the Chief, Air Force
    Reserve, Department of the Air Force, Department of Defense

    111____________________________________________________________________

    Feinstein, Hon. Dianne, U.S. Senator from California, opening statements

    1, 85__________________________________________________________________

    Holaday, Duncan, Senior Civilian Official, Office of the Assistant
    Secretary of the Navy, (Installation and Environment), Department of the
    Navy, Department of Defense

    85_____________________________________________________________________

    Prepared statement

    88_____________________________________________________________________

    Statement of

    86_____________________________________________________________________

    Hutchison, Hon. Kay Bailey, U.S. Senator from Texas, statement of

    2______________________________________________________________________

    Johnson, Admiral Michael, USN, Commander, Naval Facilities Engineering
    Command, Department of the Navy, Department of Defense

    85_____________________________________________________________________

    Johnson, Paul W., Deputy Assistant Secretary of the Army for Installation
    and Housing, Department of the Army, Department of Def111

    Prepared statement

    113____________________________________________________________________

    Statement of

    111____________________________________________________________________

    DuBois, Raymond F., Jr., Deputy Under Secretary of Defense for Installation
    and Environment, Office of the Secretary of Defense, Department of Defense

    1______________________________________________________________________

    Prepared statement

    11_____________________________________________________________________

    Statement of

    9______________________________________________________________________

    Duignan, Brigadier General Robert E., Deputy to the Chief, Air Force
    Reserve, Department of the Air Force, Department of Defense

    111____________________________________________________________________

    Feinstein, Hon. Dianne, U.S. Senator from California, opening statements

    1, 85__________________________________________________________________

    Holaday, Duncan, Senior Civilian Official, Office of the Assistant
    Secretary of the Navy, (Installation and Environment), Department of the
    Navy, Department of Defense

    85_____________________________________________________________________

    Prepared statement

    88_____________________________________________________________________

    Statement of

    86_____________________________________________________________________

    Hutchison, Hon. Kay Bailey, U.S. Senator from Texas, statement of

    2______________________________________________________________________

    Johnson, Admiral Michael, USN, Commander, Naval Facilities Engineering
    Command, Department of the Navy, Department of Defense

    85_____________________________________________________________________

    Johnson, Paul W., Deputy Assistant Secretary of the Army for Installation
    and Housing, Department of the Army, Department of Def

    Statements of

    48, 106________________________________________________________________

    Dishner, Jimmy G., Deputy Assistant Secretary of the Air Force for
    Installations, Department of the Air Force, Department of Defense

    111____________________________________________________________________

    Prepared statement

    113____________________________________________________________________

    Statement of

    111____________________________________________________________________

    DuBois, Raymond F., Jr., Deputy Under Secretary of Defense for Installation
    and Environment, Office of the Secretary of Defense, Department of Defense

    1______________________________________________________________________

    Prepared statement

    11_____________________________________________________________________

    Statement of

    9______________________________________________________________________

    Duignan, Brigadier General Robert E., Deputy to the Chief, Air Force
    Reserve, Department of the Air Force, Department of Defense

    111____________________________________________________________________

    Feinstein, Hon. Dianne, U.S. Senator from California, opening statements

    1, 85__________________________________________________________________

    Holaday, Duncan, Senior Civilian Official, Office of the Assistant
    Secretary of the Navy, (Installation and Environment), Department of the
    Navy, Department of Defense

    85_____________________________________________________________________

    Prepared statement

    88_____________________________________________________________________

    Statement of

    86_____________________________________________________________________

    Hutchison, Hon. Kay Bailey, U.S. Senator from Texas, statement of

    2______________________________________________________________________

    Johnson, Admiral Michael, USN, Commander, Naval Facilities Engineering
    Command, Department of the Navy, Department of Defense

    85_____________________________________________________________________

    Johnson, Paul W., Deputy Assistant Secretary of the Army for Installation
    and Housing, Department of the Army, Department of Defational
    Affairs, U.S. Army Reserve, Department of the Army, Department of Defense

    51_____________________________________________________________________

    Craig, Hon. Larry E., U.S. Senator from Idaho:

    Prepared statements

    49, 106________________________________________________________________

    Statements of

    48, 106________________________________________________________________

    Dishner, Jimmy G., Deputy Assistant Secretary of the Air Force for
    Installations, Department of the Air Force, Department of Defense

    111____________________________________________________________________

    Prepared statement

    113____________________________________________________________________

    Statement of

    111____________________________________________________________________

    DuBois, Raymond F., Jr., Deputy Under Secretary of Defense for Installation
    and Environment, Office of the Secretary of Defense, Department of Defense

    1______________________________________________________________________

    Prepared statement

    11_____________________________________________________________________

    Statement of

    9______________________________________________________________________

    Duignan, Brigadier General Robert E., Deputy to the Chief, Air Force
    Reserve, Department of the Air Force, Department of Defense

    111____________________________________________________________________

    Feinstein, Hon. Dianne, U.S. Senator from California, opening statements

    1, 85__________________________________________________________________

    Holaday, Duncan, Senior Civilian Official, Office of the Assistant
    Secretary of the Navy, (Installation and Environment), Department of the
    Navy, Department of Defense

    85_____________________________________________________________________

    Prepared statement

    88_____________________________________________________________________

    Statement of

    86_____________________________________________________________________

    Hutchison, Hon. Kay Bailey, U.S. Senator from Texas, statement of

    2______________________________________________________________________

    Johnson, Admiral Michael, USN, Commander, Naval Facilities Engineering
    Command, Department of the Navy, Department of Defense

    85_____________________________________________________________________

    Johnson, Paul W., Deputy Assistant Secretary of the Army for Installation
    and Housing, Department of the Army, Department of Deft
    of Defense

    111____________________________________________________________________

    Prepared statement

    113____________________________________________________________________

    Statement of

    111____________________________________________________________________

    DuBois, Raymond F., Jr., Deputy Under Secretary of Defense for Installation
    and Environment, Office of the Secretary of Defense, Department of Defense

    1______________________________________________________________________

    Prepared statement

    11_____________________________________________________________________

    Statement of

    9______________________________________________________________________

    Duignan, Brigadier General Robert E., Deputy to the Chief, Air Force
    Reserve, Department of the Air Force, Department of Defense

    111____________________________________________________________________

    Feinstein, Hon. Dianne, U.S. Senator from California, opening statements

    1, 85__________________________________________________________________

    Holaday, Duncan, Senior Civilian Official, Office of the Assistant
    Secretary of the Navy, (Installation and Environment), Department of the
    Navy, Department of Defense

    85_____________________________________________________________________

    Prepared statement

    88_____________________________________________________________________

    Statement of

    86_____________________________________________________________________

    Hutchison, Hon. Kay Bailey, U.S. Senator from Texas, statement of

    2______________________________________________________________________

    Johnson, Admiral Michael, USN, Commander, Naval Facilities Engineering
    Command, Department of the Navy, Department of Defense

    85_____________________________________________________________________

    Johnson, Paul W., Deputy Assistant Secretary of the Army for Installation
    and Housing, Department of the Army, Department of Defy
    Assistant Secretary of the Air Force for Installations, Department of the
    Air Force, Department of Defense

    111____________________________________________________________________

    Prepared statement

    113____________________________________________________________________

    Statement of

    111____________________________________________________________________

    DuBois, Raymond F., Jr., Deputy Under Secretary of Defense for Installation
    and Environment, Office of the Secretary of Defense, Department of Defense

    1______________________________________________________________________

    Prepared statement

    11_____________________________________________________________________

    Statement of

    9______________________________________________________________________

    Duignan, Brigadier General Robert E., Deputy to the Chief, Air Force
    Reserve, Department of the Air Force, Department of Defense

    111____________________________________________________________________

    Feinstein, Hon. Dianne, U.S. Senator from California, opening statements

    1, 85__________________________________________________________________

    Holaday, Duncan, Senior Civilian Official, Office of the Assistant
    Secretary of the Navy, (Installation and Environment), Department of the
    Navy, Department of Defense

    85_____________________________________________________________________

    Prepared statement

    88_____________________________________________________________________

    Statement of

    86_____________________________________________________________________

    Hutchison, Hon. Kay Bailey, U.S. Senator from Texas, statement of

    2______________________________________________________________________

    Johnson, Admiral Michael, USN, Commander, Naval Facilities Engineering
    Command, Department of the Navy, Department of Defense

    85_____________________________________________________________________

    Johnson, Paul W., Deputy Assistant Secretary of the Army for Installation
    and Housing, Department of the Army, Department of DefFacilities
    strategy.............................................. 53Family housing:
    Construction................................................. 59
    Leasing...................................................... 59 Operations
    and maintenance................................... 60Fiscal year 2002
    summary......................................... 65Homeowners Assistance
    Fund, Defense.............................. 62Housing
    privatization............................................ 71Installation
    support programs.................................... 56Military
    construction: Army (MCA)...................................................
    53 Army National Guard (MCNG)................................... 60 Army
    Reserve (MCAR).......................................... 61Mission
    facilities Force, Department of Defense

    111____________________________________________________________________

    Prepared statement

    113____________________________________________________________________

    Statement of

    111____________________________________________________________________

    DuBois, Raymond F., Jr., Deputy Under Secretary of Defense for Installation
    and Environment, Office of the Secretary of Defense, Department of Defense

    1______________________________________________________________________

    Prepared statement

    11_____________________________________________________________________

    Statement of

    9______________________________________________________________________

    Duignan, Brigadier General Robert E., Deputy to the Chief, Air Force
    Reserve, Department of the Air Force, Department of Defense

    111____________________________________________________________________

    Feinstein, Hon. Dianne, U.S. Senator from California, opening statements

    1, 85__________________________________________________________________

    Holaday, Duncan, Senior Civilian Official, Office of the Assistant
    Secretary of the Navy, (Installation and Environment), Department of the
    Navy, Department of Defense

    85_____________________________________________________________________

    Prepared statement

    88_____________________________________________________________________

    Statement of

    86_____________________________________________________________________

    Hutchison, Hon. Kay Bailey, U.S. Senator from Texas, statement of

    2______________________________________________________________________

    Johnson, Admiral Michael, USN, Commander, Naval Facilities Engineering
    Command, Department of the Navy, Department of Defense

    85_____________________________________________________________________

    Johnson, Paul W., Deputy Assistant Secretary of the Army for Installation
    and Housing, Department of the Army, Department of
    Defment of the Air Force, Department of Defense

    111____________________________________________________________________

    Prepared statement

    113____________________________________________________________________

    Statement of

    111____________________________________________________________________

    DuBois, Raymond F., Jr., Deputy Under Secretary of Defense for Installation
    and Environment, Office of the Secretary of Defense, Department of Defense

    1______________________________________________________________________

    Prepared statement

    11_____________________________________________________________________

    Statement of

    9______________________________________________________________________

    Duignan, Brigadier General Robert E., Deputy to the Chief, Air Force
    Reserve, Department of the Air Force, Department of Defense

    111____________________________________________________________________

    Feinstein, Hon. Dianne, U.S. Senator from California, opening statements

    1, 85__________________________________________________________________

    Holaday, Duncan, Senior Civilian Official, Office of the Assistant
    Secretary of the Navy, (Installation and Environment), Department of the
    Navy, Department of Defense

    85_____________________________________________________________________

    Prepared statement

    88_____________________________________________________________________

    Statement of

    86_____________________________________________________________________

    Hutchison, Hon. Kay Bailey, U.S. Senator from Texas, statement of

    2______________________________________________________________________

    Johnson, Admiral Michael, USN, Commander, Naval Facilities Engineering
    Command, Department of the Navy, Department of Defense

    85_____________________________________________________________________

    Johnson, Paul W., Deputy Assistant Secretary of the Army for Installation
    and Housing, Department of the Army, Department of Def

    Statements of

    48, 106________________________________________________________________

    Dishner, Jimmy G., Deputy Assistant Secretary of the Air Force for
    Installations, Department of the Air Force, Department of Defense

    111____________________________________________________________________

    Prepared statement

    113____________________________________________________________________

    Statement of

    111____________________________________________________________________

    DuBois, Raymond F., Jr., Deputy Under Secretary of Defense for Installation
    and Environment, Office of the Secretary of Defense, Department of Defense

    1______________________________________________________________________

    Prepared statement

    11_____________________________________________________________________

    Statement of

    9______________________________________________________________________

    Duignan, Brigadier General Robert E., Deputy to the Chief, Air Force
    Reserve, Department of the Air Force, Department of Defense

    111____________________________________________________________________

    Feinstein, Hon. Dianne, U.S. Senator from California, opening statements

    1, 85__________________________________________________________________

    Holaday, Duncan, Senior Civilian Official, Office of the Assistant
    Secretary of the Navy, (Installation and Environment), Department of the
    Navy, Department of Defense

    85_____________________________________________________________________

    Prepared statement

    88_____________________________________________________________________

    Statement of

    86_____________________________________________________________________

    Hutchison, Hon. Kay Bailey, U.S. Senator from Texas, statement of

    2______________________________________________________________________

    Johnson, Admiral Michael, USN, Commander, Naval Facilities Engineering
    Command, Department of the Navy, Department of Defense

    85_____________________________________________________________________

    Johnson, Paul W., Deputy Assistant Secretary of the Army for Installation
    and Housing, Department of the Army, Department of Defational
    Affairs, U.S. Army Reserve, Department of the Army, Department of Defense

    51_____________________________________________________________________

    Craig, Hon. Larry E., U.S. Senator from Idaho:

    Prepared statements

    49, 106________________________________________________________________

    Statements of

    48, 106________________________________________________________________

    Dishner, Jimmy G., Deputy Assistant Secretary of the Air Force for
    Installations, Department of the Air Force, Department of Defense

    111____________________________________________________________________

    Prepared statement

    113____________________________________________________________________

    Statement of

    111____________________________________________________________________

    DuBois, Raymond F., Jr., Deputy Under Secretary of Defense for Installation
    and Environment, Office of the Secretary of Defense, Department of Defense

    1______________________________________________________________________

    Prepared statement

    11_____________________________________________________________________

    Statement of

    9______________________________________________________________________

    Duignan, Brigadier General Robert E., Deputy to the Chief, Air Force
    Reserve, Department of the Air Force, Department of Defense

    111____________________________________________________________________

    Feinstein, Hon. Dianne, U.S. Senator from California, opening statements

    1, 85__________________________________________________________________

    Holaday, Duncan, Senior Civilian Official, Office of the Assistant
    Secretary of the Navy, (Installation and Environment), Department of the
    Navy, Department of Defense

    85_____________________________________________________________________

    Prepared statement

    88_____________________________________________________________________

    Statement of

    86_____________________________________________________________________

    Hutchison, Hon. Kay Bailey, U.S. Senator from Texas, statement of

    2______________________________________________________________________

    Johnson, Admiral Michael, USN, Commander, Naval Facilities Engineering
    Command, Department of the Navy, Department of Defense

    85_____________________________________________________________________

    Johnson, Paul W., Deputy Assistant Secretary of the Army for Installation
    and Housing, Department of the Army, Department of Deft
    of Defense

    111____________________________________________________________________

    Prepared statement

    113____________________________________________________________________

    Statement of

    111____________________________________________________________________

    DuBois, Raymond F., Jr., Deputy Under Secretary of Defense for Installation
    and Environment, Office of the Secretary of Defense, Department of Defense

    1______________________________________________________________________

    Prepared statement

    11_____________________________________________________________________

    Statement of

    9______________________________________________________________________

    Duignan, Brigadier General Robert E., Deputy to the Chief, Air Force
    Reserve, Department of the Air Force, Department of Defense

    111____________________________________________________________________

    Feinstein, Hon. Dianne, U.S. Senator from California, opening statements

    1, 85__________________________________________________________________

    Holaday, Duncan, Senior Civilian Official, Office of the Assistant
    Secretary of the Navy, (Installation and Environment), Department of the
    Navy, Department of Defense

    85_____________________________________________________________________

    Prepared statement

    88_____________________________________________________________________

    Statement of

    86_____________________________________________________________________

    Hutchison, Hon. Kay Bailey, U.S. Senator from Texas, statement of

    2______________________________________________________________________

    Johnson, Admiral Michael, USN, Commander, Naval Facilities Engineering
    Command, Department of the Navy, Department of Defense

    85_____________________________________________________________________

    Johnson, Paul W., Deputy Assistant Secretary of the Army for Installation
    and Housing, Department of the Army, Department of
    Defetary of the Air Force for Installations, Department
    of the Air Force, Department of Defense

    111____________________________________________________________________

    Prepared statement

    113____________________________________________________________________

    Statement of

    111____________________________________________________________________

    DuBois, Raymond F., Jr., Deputy Under Secretary of Defense for Installation
    and Environment, Office of the Secretary of Defense, Department of Defense

    1______________________________________________________________________

    Prepared statement

    11_____________________________________________________________________

    Statement of

    9______________________________________________________________________

    Duignan, Brigadier General Robert E., Deputy to the Chief, Air Force
    Reserve, Department of the Air Force, Department of Defense

    111____________________________________________________________________

    Feinstein, Hon. Dianne, U.S. Senator from California, opening statements

    1, 85__________________________________________________________________

    Holaday, Duncan, Senior Civilian Official, Office of the Assistant
    Secretary of the Navy, (Installation and Environment), Department of the
    Navy, Department of Defense

    85_____________________________________________________________________

    Prepared statement

    88_____________________________________________________________________

    Statement of

    86_____________________________________________________________________

    Hutchison, Hon. Kay Bailey, U.S. Senator from Texas, statement of

    2______________________________________________________________________

    Johnson, Admiral Michael, USN, Commander, Naval Facilities Engineering
    Command, Department of the Navy, Department of Defense

    85_____________________________________________________________________

    Johnson, Paul W., Deputy Assistant Secretary of the Army for Installation
    and Housing, Department of the Army, Department of Def

    Statements of

    48, 106________________________________________________________________

    Dishner, Jimmy G., Deputy Assistant Secretary of the Air Force for
    Installations, Department of the Air Force, Department of Defense

    111____________________________________________________________________

    Prepared statement

    113____________________________________________________________________

    Statement of

    111____________________________________________________________________

    DuBois, Raymond F., Jr., Deputy Under Secretary of Defense for Installation
    and Environment, Office of the Secretary of Defense, Department of Defense

    1______________________________________________________________________

    Prepared statement

    11_____________________________________________________________________

    Statement of

    9______________________________________________________________________

    Duignan, Brigadier General Robert E., Deputy to the Chief, Air Force
    Reserve, Department of the Air Force, Department of Defense

    111____________________________________________________________________

    Feinstein, Hon. Dianne, U.S. Senator from California, opening statements

    1, 85__________________________________________________________________

    Holaday, Duncan, Senior Civilian Official, Office of the Assistant
    Secretary of the Navy, (Installation and Environment), Department of the
    Navy, Department of Defense

    85_____________________________________________________________________

    Prepared statement

    88_____________________________________________________________________

    Statement of

    86_____________________________________________________________________

    Hutchison, Hon. Kay Bailey, U.S. Senator from Texas, statement of

    2______________________________________________________________________

    Johnson, Admiral Michael, USN, Commander, Naval Facilities Engineering
    Command, Department of the Navy, Department of Defense

    85_____________________________________________________________________

    Johnson, Paul W., Deputy Assistant Secretary of the Army for Installation
    and Housing, Department of the Army, Department of Defational
    Affairs, U.S. Army Reserve, Department of the Army, Department of Defense

    51_____________________________________________________________________

    Craig, Hon. Larry E., U.S. Senator from Idaho:

    Prepared statements

    49, 106________________________________________________________________

    Statements of

    48, 106________________________________________________________________

    Dishner, Jimmy G., Deputy Assistant Secretary of the Air Force for
    Installations, Department of the Air Force, Department of Defense

    111____________________________________________________________________

    Prepared statement

    113____________________________________________________________________

    Statement of

    111____________________________________________________________________

    DuBois, Raymond F., Jr., Deputy Under Secretary of Defense for Installation
    and Environment, Office of the Secretary of Defense, Department of Defense

    1______________________________________________________________________

    Prepared statement

    11_____________________________________________________________________

    Statement of

    9______________________________________________________________________

    Duignan, Brigadier General Robert E., Deputy to the Chief, Air Force
    Reserve, Department of the Air Force, Department of Defense

    111____________________________________________________________________

    Feinstein, Hon. Dianne, U.S. Senator from California, opening statements

    1, 85__________________________________________________________________

    Holaday, Duncan, Senior Civilian Official, Office of the Assistant
    Secretary of the Navy, (Installation and Environment), Department of the
    Navy, Department of Defense

    85_____________________________________________________________________

    Prepared statement

    88_____________________________________________________________________

    Statement of

    86_____________________________________________________________________

    Hutchison, Hon. Kay Bailey, U.S. Senator from Texas, statement of

    2______________________________________________________________________

    Johnson, Admiral Michael, USN, Commander, Naval Facilities Engineering
    Command, Department of the Navy, Department of Defense

    85_____________________________________________________________________

    Johnson, Paul W., Deputy Assistant Secretary of the Army for Installation
    and Housing, Department of the Army, Department of Deft
    of Defense

    111____________________________________________________________________

    Prepared statement

    113____________________________________________________________________

    Statement of

    111____________________________________________________________________

    DuBois, Raymond F., Jr., Deputy Under Secretary of Defense for Installation
    and Environment, Office of the Secretary of Defense, Department of Defense

    1______________________________________________________________________

    Prepared statement

    11_____________________________________________________________________

    Statement of

    9______________________________________________________________________

    Duignan, Brigadier General Robert E., Deputy to the Chief, Air Force
    Reserve, Department of the Air Force, Department of Defense

    111____________________________________________________________________

    Feinstein, Hon. Dianne, U.S. Senator from California, opening statements

    1, 85__________________________________________________________________

    Holaday, Duncan, Senior Civilian Official, Office of the Assistant
    Secretary of the Navy, (Installation and Environment), Department of the
    Navy, Department of Defense

    85_____________________________________________________________________

    Prepared statement

    88_____________________________________________________________________

    Statement of

    86_____________________________________________________________________

    Hutchison, Hon. Kay Bailey, U.S. Senator from Texas, statement of

    2______________________________________________________________________

    Johnson, Admiral Michael, USN, Commander, Naval Facilities Engineering
    Command, Department of the Navy, Department of Defense

    85_____________________________________________________________________

    Johnson, Paul W., Deputy Assistant Secretary of the Army for Installation
    and Housing, Department of the Army, Department of Def
    Force for Installations, Department of the Air Force, Department of Defense

    111____________________________________________________________________

    Prepared statement

    113____________________________________________________________________

    Statement of

    111____________________________________________________________________

    DuBois, Raymond F., Jr., Deputy Under Secretary of Defense for Installation
    and Environment, Office of the Secretary of Defense, Department of Defense

    1______________________________________________________________________

    Prepared statement

    11_____________________________________________________________________

    Statement of

    9______________________________________________________________________

    Duignan, Brigadier General Robert E., Deputy to the Chief, Air Force
    Reserve, Department of the Air Force, Department of Defense

    111____________________________________________________________________

    Feinstein, Hon. Dianne, U.S. Senator from California, opening statements

    1, 85__________________________________________________________________

    Holaday, Duncan, Senior Civilian Official, Office of the Assistant
    Secretary of the Navy, (Installation and Environment), Department of the
    Navy, Department of Defense

    85_____________________________________________________________________

    Prepared statement

    88_____________________________________________________________________

    Statement of

    86_____________________________________________________________________

    Hutchison, Hon. Kay Bailey, U.S. Senator from Texas, statement of

    2______________________________________________________________________

    Johnson, Admiral Michael, USN, Commander, Naval Facilities Engineering
    Command, Department of the Navy, Department of Defense

    85_____________________________________________________________________

    Johnson, Paul W., Deputy Assistant Secretary of the Army for Installation
    and Housing, Department of the Army, Department of Def

    National Training Center.........................................    69
    Operations facilities............................................    54
    Planning and design..............................................    56
    Sustainment, restoration and modernization (SRM).................    63
    Transformation...................................................    55
    Unspecified minor construction...................................    68
    Well being projects..............................................    55

                             Department of the Navy

    Bachelor housing.................................................    91
    BAH, impact of the initiative....................................    92
    Base realignment and closure.....................................    94
    Energy...........................................................    96
    Family housing...................................................    90
    Fiscal year 2002 legislative proposals...........................    96
    Military construction............................................    92
    The infrastructure budget........................................    88

                       Office of the Secretary of Defense

    Base closure.....................................................     7
    Budget overview, fiscal year 2002................................     5
    Family housing...................................................     8
    Framework for action.............................................    15
    Homeowners assistance............................................     9
    Military construction............................................     6
        And family housing request...................................    12
    NATO Security Investment Program.................................     8
    Operations and maintenance request...............................    13
    Possible enabling legislation....................................    13
    Renewing the installations framework.............................    11
    Installations' Vision............................................    14

                                       -