[Congressional Record (Bound Edition), Volume 148 (2002), Part 11]
[Senate]
[Pages 15447-15480]
[From the U.S. Government Publishing Office, www.gpo.gov]




                DEPARTMENT OF DEFENSE APPROPRIATIONS ACT

  The PRESIDING OFFICER. Under the previous order, the Senate will 
proceed to the consideration of H.R. 5010, which the clerk will report 
by title.
  The legislative clerk read as follows:

  A bill (H.R. 5010) making appropriations for the Department of 
Defense for fiscal year ending September 30, 2003, and for other 
purposes.

  The Senate proceeded to consider the bill which had been reported 
from the Committee on Appropriations with an amendment.
  [Strike the part shown in bold brackets and insert in lieu thereof 
the part shown in italic.]

                               H.R. 5010

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     [That the following sums are appropriated, out of any money 
     in the Treasury not otherwise appropriated, for the fiscal 
     year ending September 30, 2003, for military functions 
     administered by the Department of Defense, and for other 
     purposes, namely:

[[Page 15448]]



                                [TITLE I

                          [MILITARY PERSONNEL

                       [Military Personnel, Army

       [For pay, allowances, individual clothing, subsistence, 
     interest on deposits, gratuities, permanent change of station 
     travel (including all expenses thereof for organizational 
     movements), and expenses of temporary duty travel between 
     permanent duty stations, for members of the Army on active 
     duty (except members of reserve components provided for 
     elsewhere), cadets, and aviation cadets; and for payments 
     pursuant to section 156 of Public Law 97-377, as amended (42 
     U.S.C. 402 note), and to the Department of Defense Military 
     Retirement Fund, $26,832,217,000.

                       [Military Personnel, Navy

       [For pay, allowances, individual clothing, subsistence, 
     interest on deposits, gratuities, permanent change of station 
     travel (including all expenses thereof for organizational 
     movements), and expenses of temporary duty travel between 
     permanent duty stations, for members of the Navy on active 
     duty (except members of the Reserve provided for elsewhere), 
     midshipmen, and aviation cadets; and for payments pursuant to 
     section 156 of Public Law 97-377, as amended (42 U.S.C. 402 
     note), and to the Department of Defense Military Retirement 
     Fund, $21,874,395,000.

                   [Military Personnel, Marine Corps

       [For pay, allowances, individual clothing, subsistence, 
     interest on deposits, gratuities, permanent change of station 
     travel (including all expenses thereof for organizational 
     movements), and expenses of temporary duty travel between 
     permanent duty stations, for members of the Marine Corps on 
     active duty (except members of the Reserve provided for 
     elsewhere); and for payments pursuant to section 156 of 
     Public Law 97-377, as amended (42 U.S.C. 402 note), and to 
     the Department of Defense Military Retirement Fund, 
     $8,504,172,000.

                     [Military Personnel, Air Force

       [For pay, allowances, individual clothing, subsistence, 
     interest on deposits, gratuities, permanent change of station 
     travel (including all expenses thereof for organizational 
     movements), and expenses of temporary duty travel between 
     permanent duty stations, for members of the Air Force on 
     active duty (except members of reserve components provided 
     for elsewhere), cadets, and aviation cadets; and for payments 
     pursuant to section 156 of Public Law 97-377, as amended (42 
     U.S.C. 402 note), and to the Department of Defense Military 
     Retirement Fund, $21,957,757,000.

                        [Reserve Personnel, Army

       [For pay, allowances, clothing, subsistence, gratuities, 
     travel, and related expenses for personnel of the Army 
     Reserve on active duty under sections 10211, 10302, and 3038 
     of title 10, United States Code, or while serving on active 
     duty under section 12301(d) of title 10, United States Code, 
     in connection with performing duty specified in section 
     12310(a) of title 10, United States Code, or while undergoing 
     reserve training, or while performing drills or equivalent 
     duty or other duty, and for members of the Reserve Officers' 
     Training Corps, and expenses authorized by section 16131 of 
     title 10, United States Code; and for payments to the 
     Department of Defense Military Retirement Fund, 
     $3,373,455,000.

                        [Reserve Personnel, Navy

       [For pay, allowances, clothing, subsistence, gratuities, 
     travel, and related expenses for personnel of the Navy 
     Reserve on active duty under section 10211 of title 10, 
     United States Code, or while serving on active duty under 
     section 12301(d) of title 10, United States Code, in 
     connection with performing duty specified in section 12310(a) 
     of title 10, United States Code, or while undergoing reserve 
     training, or while performing drills or equivalent duty, and 
     for members of the Reserve Officers' Training Corps, and 
     expenses authorized by section 16131 of title 10, United 
     States Code; and for payments to the Department of Defense 
     Military Retirement Fund, $1,897,352,000.

                    [Reserve Personnel, Marine Corps

       [For pay, allowances, clothing, subsistence, gratuities, 
     travel, and related expenses for personnel of the Marine 
     Corps Reserve on active duty under section 10211 of title 10, 
     United States Code, or while serving on active duty under 
     section 12301(d) of title 10, United States Code, in 
     connection with performing duty specified in section 12310(a) 
     of title 10, United States Code, or while undergoing reserve 
     training, or while performing drills or equivalent duty, and 
     for members of the Marine Corps platoon leaders class, and 
     expenses authorized by section 16131 of title 10, United 
     States Code; and for payments to the Department of Defense 
     Military Retirement Fund, $553,983,000.

                     [Reserve Personnel, Air Force

       [For pay, allowances, clothing, subsistence, gratuities, 
     travel, and related expenses for personnel of the Air Force 
     Reserve on active duty under sections 10211, 10305, and 8038 
     of title 10, United States Code, or while serving on active 
     duty under section 12301(d) of title 10, United States Code, 
     in connection with performing duty specified in section 
     12310(a) of title 10, United States Code, or while undergoing 
     reserve training, or while performing drills or equivalent 
     duty or other duty, and for members of the Air Reserve 
     Officers' Training Corps, and expenses authorized by section 
     16131 of title 10, United States Code; and for payments to 
     the Department of Defense Military Retirement Fund, 
     $1,236,904,000.

                    [National Guard Personnel, Army

       [For pay, allowances, clothing, subsistence, gratuities, 
     travel, and related expenses for personnel of the Army 
     National Guard while on duty under section 10211, 10302, or 
     12402 of title 10 or section 708 of title 32, United States 
     Code, or while serving on duty under section 12301(d) of 
     title 10 or section 502(f) of title 32, United States Code, 
     in connection with performing duty specified in section 
     12310(a) of title 10, United States Code, or while undergoing 
     training, or while performing drills or equivalent duty or 
     other duty, and expenses authorized by section 16131 of title 
     10, United States Code; and for payments to the Department of 
     Defense Military Retirement Fund, $5,070,188,000.

                  [National Guard Personnel, Air Force

       [For pay, allowances, clothing, subsistence, gratuities, 
     travel, and related expenses for personnel of the Air 
     National Guard on duty under section 10211, 10305, or 12402 
     of title 10 or section 708 of title 32, United States Code, 
     or while serving on duty under section 12301(d) of title 10 
     or section 502(f) of title 32, United States Code, in 
     connection with performing duty specified in section 12310(a) 
     of title 10, United States Code, or while undergoing 
     training, or while performing drills or equivalent duty or 
     other duty, and expenses authorized by section 16131 of title 
     10, United States Code; and for payments to the Department of 
     Defense Military Retirement Fund, $2,124,411,000.

                               [TITLE II

                       [OPERATION AND MAINTENANCE

                    [Operation and Maintenance, Army

       [For expenses, not otherwise provided for, necessary for 
     the operation and maintenance of the Army, as authorized by 
     law; and not to exceed $10,818,000 can be used for 
     emergencies and extraordinary expenses, to be expended on the 
     approval or authority of the Secretary of the Army, and 
     payments may be made on his certificate of necessity for 
     confidential military purposes, $23,942,768,000: Provided, 
     That of the funds appropriated in this paragraph, not less 
     than $355,000,000 shall be made available only for 
     conventional ammunition care and maintenance.

                    [Operation and Maintenance, Navy

       [For expenses, not otherwise provided for, necessary for 
     the operation and maintenance of the Navy and the Marine 
     Corps, as authorized by law; and not to exceed $4,415,000 can 
     be used for emergencies and extraordinary expenses, to be 
     expended on the approval or authority of the Secretary of the 
     Navy, and payments may be made on his certificate of 
     necessity for confidential military purposes, 
     $29,121,836,000.

                [Operation and Maintenance, Marine Corps

       [For expenses, not otherwise provided for, necessary for 
     the operation and maintenance of the Marine Corps, as 
     authorized by law, $3,579,359,000.

                 [Operation and Maintenance, Air Force

       [For expenses, not otherwise provided for, necessary for 
     the operation and maintenance of the Air Force, as authorized 
     by law; and not to exceed $7,902,000 can be used for 
     emergencies and extraordinary expenses, to be expended on the 
     approval or authority of the Secretary of the Air Force, and 
     payments may be made on his certificate of necessity for 
     confidential military purposes, $27,587,959,000: Provided, 
     That notwithstanding any other provision of law, that of the 
     funds available under this heading, $750,000 shall only be 
     available to the Secretary of the Air Force for a grant to 
     Florida Memorial College for the purpose of funding minority 
     aviation training: Provided further, That of the amount 
     provided under this heading, not less than $2,000,000 shall 
     be obligated for the deployment of Air Force active and 
     Reserve aircrews that perform combat search and rescue 
     operations to operate and evaluate the United Kingdom's Royal 
     Air Force EH-101 helicopter, to receive training using that 
     helicopter, and to exchange operational techniques and 
     procedures regarding that helicopter.

                [Operation and Maintenance, Defense-Wide


                     [(including transfer of funds)

       [For expenses, not otherwise provided for, necessary for 
     the operation and maintenance of activities and agencies of 
     the Department of Defense (other than the military 
     departments), as authorized by law, $14,850,377,000, of which 
     not to exceed $25,000,000 may be available for the CINC 
     initiative fund account; and of which not to exceed 
     $34,500,000 can be used for emergencies and extraordinary 
     expenses, to be expended on the approval or authority of the 
     Secretary of Defense, and payments may be made on his 
     certificate of necessity for confidential military purposes: 
     Provided, That notwithstanding any other provision of law, of 
     the funds provided in this Act for Civil Military programs 
     under this heading, $750,000 shall be available

[[Page 15449]]

     for a grant for Outdoor Odyssey, Roaring Run, Pennsylvania, 
     to support the Youth Development and Leadership program and 
     Department of Defense STARBASE program: Provided further, 
     That none of the funds appropriated or otherwise made 
     available by this Act may be used to plan or implement the 
     consolidation of a budget or appropriations liaison office of 
     the Office of the Secretary of Defense, the office of the 
     Secretary of a military department, or the service 
     headquarters of one of the Armed Forces into a legislative 
     affairs or legislative liaison office: Provided further, That 
     $4,675,000, to remain available until expended, is available 
     only for expenses relating to certain classified activities, 
     and may be transferred as necessary by the Secretary to 
     operation and maintenance appropriations or research, 
     development, test and evaluation appropriations, to be merged 
     with and to be available for the same time period as the 
     appropriations to which transferred: Provided further, That 
     any ceiling on the investment item unit cost of items that 
     may be purchased with operation and maintenance funds shall 
     not apply to the funds described in the preceding proviso: 
     Provided further, That the transfer authority provided under 
     this heading is in addition to any other transfer authority 
     provided elsewhere in this Act.

                [Operation and Maintenance, Army Reserve

       [For expenses, not otherwise provided for, necessary for 
     the operation and maintenance, including training, 
     organization, and administration, of the Army Reserve; repair 
     of facilities and equipment; hire of passenger motor 
     vehicles; travel and transportation; care of the dead; 
     recruiting; procurement of services, supplies, and equipment; 
     and communications, $1,976,710,000.

                [Operation and Maintenance, Navy Reserve

       [For expenses, not otherwise provided for, necessary for 
     the operation and maintenance, including training, 
     organization, and administration, of the Navy Reserve; repair 
     of facilities and equipment; hire of passenger motor 
     vehicles; travel and transportation; care of the dead; 
     recruiting; procurement of services, supplies, and equipment; 
     and communications, $1,239,309,000.

            [Operation and Maintenance, Marine Corps Reserve

       [For expenses, not otherwise provided for, necessary for 
     the operation and maintenance, including training, 
     organization, and administration, of the Marine Corps 
     Reserve; repair of facilities and equipment; hire of 
     passenger motor vehicles; travel and transportation; care of 
     the dead; recruiting; procurement of services, supplies, and 
     equipment; and communications, $189,532,000.

             [Operation and Maintenance, Air Force Reserve

       [For expenses, not otherwise provided for, necessary for 
     the operation and maintenance, including training, 
     organization, and administration, of the Air Force Reserve; 
     repair of facilities and equipment; hire of passenger motor 
     vehicles; travel and transportation; care of the dead; 
     recruiting; procurement of services, supplies, and equipment; 
     and communications, $2,165,604,000.

            [Operation and Maintenance, Army National Guard

       [For expenses of training, organizing, and administering 
     the Army National Guard, including medical and hospital 
     treatment and related expenses in non-Federal hospitals; 
     maintenance, operation, and repairs to structures and 
     facilities; hire of passenger motor vehicles; personnel 
     services in the National Guard Bureau; travel expenses (other 
     than mileage), as authorized by law for Army personnel on 
     active duty, for Army National Guard division, regimental, 
     and battalion commanders while inspecting units in compliance 
     with National Guard Bureau regulations when specifically 
     authorized by the Chief, National Guard Bureau; supplying and 
     equipping the Army National Guard as authorized by law; and 
     expenses of repair, modification, maintenance, and issue of 
     supplies and equipment (including aircraft), $4,231,967,000.

             [Operation and Maintenance, Air National Guard

       [For operation and maintenance of the Air National Guard, 
     including medical and hospital treatment and related expenses 
     in non-Federal hospitals; maintenance, operation, repair, and 
     other necessary expenses of facilities for the training and 
     administration of the Air National Guard, including repair of 
     facilities, maintenance, operation, and modification of 
     aircraft; transportation of things, hire of passenger motor 
     vehicles; supplies, materials, and equipment, as authorized 
     by law for the Air National Guard; and expenses incident to 
     the maintenance and use of supplies, materials, and 
     equipment, including such as may be furnished from stocks 
     under the control of agencies of the Department of Defense; 
     travel expenses (other than mileage) on the same basis as 
     authorized by law for Air National Guard personnel on active 
     Federal duty, for Air National Guard commanders while 
     inspecting units in compliance with National Guard Bureau 
     regulations when specifically authorized by the Chief, 
     National Guard Bureau, $4,113,010,000.

          [United States Court of Appeals for the Armed Forces

       [For salaries and expenses necessary for the United States 
     Court of Appeals for the Armed Forces, $9,614,000, of which 
     not to exceed $2,500 can be used for official representation 
     purposes.

                    [Environmental Restoration, Army


                     [(including transfer of funds)

       [For the Department of the Army, $395,900,000, to remain 
     available until transferred: Provided, That the Secretary of 
     the Army shall, upon determining that such funds are required 
     for environmental restoration, reduction and recycling of 
     hazardous waste, removal of unsafe buildings and debris of 
     the Department of the Army, or for similar purposes, transfer 
     the funds made available by this appropriation to other 
     appropriations made available to the Department of the Army, 
     to be merged with and to be available for the same purposes 
     and for the same time period as the appropriations to which 
     transferred: Provided further, That upon a determination that 
     all or part of the funds transferred from this appropriation 
     are not necessary for the purposes provided herein, such 
     amounts may be transferred back to this appropriation.

                    [Environmental Restoration, Navy


                     [(including transfer of funds)

       [For the Department of the Navy, $256,948,000, to remain 
     available until transferred: Provided, That the Secretary of 
     the Navy shall, upon determining that such funds are required 
     for environmental restoration, reduction and recycling of 
     hazardous waste, removal of unsafe buildings and debris of 
     the Department of the Navy, or for similar purposes, transfer 
     the funds made available by this appropriation to other 
     appropriations made available to the Department of the Navy, 
     to be merged with and to be available for the same purposes 
     and for the same time period as the appropriations to which 
     transferred: Provided further, That upon a determination that 
     all or part of the funds transferred from this appropriation 
     are not necessary for the purposes provided herein, such 
     amounts may be transferred back to this appropriation.

                 [Environmental Restoration, Air Force


                     [(including transfer of funds)

       [For the Department of the Air Force, $389,773,000, to 
     remain available until transferred: Provided, That the 
     Secretary of the Air Force shall, upon determining that such 
     funds are required for environmental restoration, reduction 
     and recycling of hazardous waste, removal of unsafe buildings 
     and debris of the Department of the Air Force, or for similar 
     purposes, transfer the funds made available by this 
     appropriation to other appropriations made available to the 
     Department of the Air Force, to be merged with and to be 
     available for the same purposes and for the same time period 
     as the appropriations to which transferred: Provided further, 
     That upon a determination that all or part of the funds 
     transferred from this appropriation are not necessary for the 
     purposes provided herein, such amounts may be transferred 
     back to this appropriation.

                [Environmental Restoration, Defense-Wide


                     [(including transfer of funds)

       [For the Department of Defense, $23,498,000, to remain 
     available until transferred: Provided, That the Secretary of 
     Defense shall, upon determining that such funds are required 
     for environmental restoration, reduction and recycling of 
     hazardous waste, removal of unsafe buildings and debris of 
     the Department of Defense, or for similar purposes, transfer 
     the funds made available by this appropriation to other 
     appropriations made available to the Department of Defense, 
     to be merged with and to be available for the same purposes 
     and for the same time period as the appropriations to which 
     transferred: Provided further, That upon a determination that 
     all or part of the funds transferred from this appropriation 
     are not necessary for the purposes provided herein, such 
     amounts may be transferred back to this appropriation.

        [Environmental Restoration, Formerly Used Defense Sites


                     [(including transfer of funds)

       [For the Department of the Army, $212,102,000, to remain 
     available until transferred: Provided, That the Secretary of 
     the Army shall, upon determining that such funds are required 
     for environmental restoration, reduction and recycling of 
     hazardous waste, removal of unsafe buildings and debris at 
     sites formerly used by the Department of Defense, transfer 
     the funds made available by this appropriation to other 
     appropriations made available to the Department of the Army, 
     to be merged with and to be available for the same purposes 
     and for the same time period as the appropriations to which 
     transferred: Provided further, That upon a determination that 
     all or part of the funds transferred from this appropriation 
     are not necessary for the purposes provided herein, such 
     amounts may be transferred back to this appropriation.

[[Page 15450]]



            [Overseas Humanitarian, Disaster, and Civic Aid

       [For expenses relating to the Overseas Humanitarian, 
     Disaster, and Civic Aid programs of the Department of Defense 
     (consisting of the programs provided under sections 401, 402, 
     404, 2547, and 2551 of title 10, United States Code), 
     $58,400,000, to remain available until September 30, 2004.

                 [Former Soviet Union Threat Reduction

       [For assistance to the republics of the former Soviet 
     Union, including assistance provided by contract or by 
     grants, for facilitating the elimination and the safe and 
     secure transportation and storage of nuclear, chemical and 
     other weapons; for establishing programs to prevent the 
     proliferation of weapons, weapons components, and weapon-
     related technology and expertise; for programs relating to 
     the training and support of defense and military personnel 
     for demilitarization and protection of weapons, weapons 
     components and weapons technology and expertise, and for 
     defense and military contacts, $416,700,000, to remain 
     available until September 30, 2005.

       [Support for International Sporting Competitions, Defense

       [For logistical and security support for international 
     sporting competitions (including pay and non-travel related 
     allowances only for members of the Reserve Components of the 
     Armed Forces of the United States called or ordered to active 
     duty in connection with providing such support), $19,000,000, 
     to remain available until expended.

                               [TITLE III

                              [PROCUREMENT

                      [Aircraft Procurement, Army

       [For construction, procurement, production, modification, 
     and modernization of aircraft, equipment, including ordnance, 
     ground handling equipment, spare parts, and accessories 
     therefor; specialized equipment and training devices; 
     expansion of public and private plants, including the land 
     necessary therefor, for the foregoing purposes, and such 
     lands and interests therein, may be acquired, and 
     construction prosecuted thereon prior to approval of title; 
     and procurement and installation of equipment, appliances, 
     and machine tools in public and private plants; reserve plant 
     and Government and contractor-owned equipment layaway; and 
     other expenses necessary for the foregoing purposes, 
     $2,214,369,000, to remain available for obligation until 
     September 30, 2005, of which not less than $225,675,000 shall 
     be available for the Army National Guard and Army Reserve: 
     Provided, That of the funds made available under this 
     heading, $45,000,000 shall be available only to support a 
     restructured CH-47F helicopter upgrade program that increases 
     the production rate to 48 helicopters per fiscal year by 
     fiscal year 2005: Provided further, That funds in the 
     immediately preceding proviso shall not be made available 
     until the Secretary of the Army has certified to the 
     congressional defense committees that the Army intends to 
     budget for the upgrade of the entire CH-47 fleet that is 
     planned to be part of the Objective Force.

                       [Missile Procurement, Army

       [For construction, procurement, production, modification, 
     and modernization of missiles, equipment, including ordnance, 
     ground handling equipment, spare parts, and accessories 
     therefor; specialized equipment and training devices; 
     expansion of public and private plants, including the land 
     necessary therefor, for the foregoing purposes, and such 
     lands and interests therein, may be acquired, and 
     construction prosecuted thereon prior to approval of title; 
     and procurement and installation of equipment, appliances, 
     and machine tools in public and private plants; reserve plant 
     and Government and contractor-owned equipment layaway; and 
     other expenses necessary for the foregoing purposes, 
     $1,112,772,000, to remain available for obligation until 
     September 30, 2005, of which not less than $168,580,000 shall 
     be available for the Army National Guard and Army Reserve.

       [Procurement of Weapons and Tracked Combat Vehicles, Army

       [For construction, procurement, production, and 
     modification of weapons and tracked combat vehicles, 
     equipment, including ordnance, spare parts, and accessories 
     therefor; specialized equipment and training devices; 
     expansion of public and private plants, including the land 
     necessary therefor, for the foregoing purposes, and such 
     lands and interests therein, may be acquired, and 
     construction prosecuted thereon prior to approval of title; 
     and procurement and installation of equipment, appliances, 
     and machine tools in public and private plants; reserve plant 
     and Government and contractor-owned equipment layaway; and 
     other expenses necessary for the foregoing purposes, 
     $2,248,358,000, to remain available for obligation until 
     September 30, 2005, of which not less than $40,849,000 shall 
     be available for the Army National Guard and Army Reserve.

                    [Procurement of Ammunition, Army

       [For construction, procurement, production, and 
     modification of ammunition, and accessories therefor; 
     specialized equipment and training devices; expansion of 
     public and private plants, including ammunition facilities 
     authorized by section 2854 of title 10, United States Code, 
     and the land necessary therefor, for the foregoing purposes, 
     and such lands and interests therein, may be acquired, and 
     construction prosecuted thereon prior to approval of title; 
     and procurement and installation of equipment, appliances, 
     and machine tools in public and private plants; reserve plant 
     and Government and contractor-owned equipment layaway; and 
     other expenses necessary for the foregoing purposes, 
     $1,207,560,000, to remain available for obligation until 
     September 30, 2005, of which not less than $124,716,000 shall 
     be available for the Army National Guard and Army Reserve.

                        [Other Procurement, Army

       [For construction, procurement, production, and 
     modification of vehicles, including tactical, support, and 
     non-tracked combat vehicles; the purchase of not to exceed 40 
     passenger motor vehicles for replacement only; and the 
     purchase of 6 vehicles required for physical security of 
     personnel, notwithstanding price limitations applicable to 
     passenger vehicles but not to exceed $180,000 per vehicle; 
     communications and electronic equipment; other support 
     equipment; spare parts, ordnance, and accessories therefor; 
     specialized equipment and training devices; expansion of 
     public and private plants, including the land necessary 
     therefor, for the foregoing purposes, and such lands and 
     interests therein, may be acquired, and construction 
     prosecuted thereon prior to approval of title; and 
     procurement and installation of equipment, appliances, and 
     machine tools in public and private plants; reserve plant and 
     Government and contractor-owned equipment layaway; and other 
     expenses necessary for the foregoing purposes, 
     $6,017,380,000, to remain available for obligation until 
     September 30, 2005, of which not less than $1,129,578,000 
     shall be available for the Army National Guard and Army 
     Reserve.

                      [Aircraft Procurement, Navy

       [For construction, procurement, production, modification, 
     and modernization of aircraft, equipment, including ordnance, 
     spare parts, and accessories therefor; specialized equipment; 
     expansion of public and private plants, including the land 
     necessary therefor, and such lands and interests therein, may 
     be acquired, and construction prosecuted thereon prior to 
     approval of title; and procurement and installation of 
     equipment, appliances, and machine tools in public and 
     private plants; reserve plant and Government and contractor-
     owned equipment layaway, $8,682,655,000, to remain available 
     for obligation until September 30, 2005, of which not less 
     than $19,644,000 shall be available for the Navy Reserve and 
     Marine Corps Reserve.

                       [Weapons Procurement, Navy

       [For construction, procurement, production, modification, 
     and modernization of missiles, torpedoes, other weapons, and 
     related support equipment including spare parts, and 
     accessories therefor; expansion of public and private plants, 
     including the land necessary therefor, and such lands and 
     interests therein, may be acquired, and construction 
     prosecuted thereon prior to approval of title; and 
     procurement and installation of equipment, appliances, and 
     machine tools in public and private plants; reserve plant and 
     Government and contractor-owned equipment layaway, 
     $2,384,617,000, to remain available for obligation until 
     September 30, 2005.

           [Procurement of Ammunition, Navy and Marine Corps

       [For construction, procurement, production, and 
     modification of ammunition, and accessories therefor; 
     specialized equipment and training devices; expansion of 
     public and private plants, including ammunition facilities 
     authorized by section 2854 of title 10, United States Code, 
     and the land necessary therefor, for the foregoing purposes, 
     and such lands and interests therein, may be acquired, and 
     construction prosecuted thereon prior to approval of title; 
     and procurement and installation of equipment, appliances, 
     and machine tools in public and private plants; reserve plant 
     and Government and contractor-owned equipment layaway; and 
     other expenses necessary for the foregoing purposes, 
     $1,167,130,000, to remain available for obligation until 
     September 30, 2005, of which not less than $18,162,000 shall 
     be for the Navy Reserve and Marine Corps Reserve.

                   [Shipbuilding and Conversion, Navy

       [For expenses necessary for the construction, acquisition, 
     or conversion of vessels as authorized by law, including 
     armor and armament thereof, plant equipment, appliances, and 
     machine tools and installation thereof in public and private 
     plants; reserve plant and Government and contractor-owned 
     equipment layaway; procurement of critical, long leadtime 
     components and designs for vessels to be constructed or 
     converted in the future; and expansion of public and private 
     plants, including land necessary therefor, and such lands and 
     interests therein, may be acquired, and construction 
     prosecuted thereon prior to approval of title, as follows:
       [Carrier Replacement Program (CY), $250,000,000;
       [Carrier Replacement Program (AP-CY), $243,703,000;
       [Virginia Class Submarine, $1,490,652,000;
       [Virginia Class Submarine (AP-CY), $706,309,000;
       [SSGN Conversion, $404,305,000;

[[Page 15451]]

       [SSGN Conversion (AP-CY), $421,000,000;
       [CVN Refueling Overhauls (AP-CY), $296,781,000;
       [Submarine Refueling Overhauls, $231,292,000;
       [Submarine Refueling Overhauls (AP-CY), $88,257,000;
       [DDG-51, $2,273,002,000;
       [DDG-51 (AP-CY), $74,000,000;
       [LPD-17, $596,492,000;
       [LPD-17 (AP-CY), $8,000,000;
       [LCU (X), $9,756,000;
       [Outfitting, $300,608,000;
       [LCAC SLEP, $81,638,000;
       [Mine Hunter SWATH, $7,000,000; and
       [Completion of Prior Year Shipbuilding Programs, 
     $644,899,000;
       [In all: $8,127,694,000, to remain available for obligation 
     until September 30, 2007: Provided, That additional 
     obligations may be incurred after September 30, 2007, for 
     engineering services, tests, evaluations, and other such 
     budgeted work that must be performed in the final stage of 
     ship construction: Provided further, That none of the funds 
     provided under this heading for the construction or 
     conversion of any naval vessel to be constructed in shipyards 
     in the United States shall be expended in foreign facilities 
     for the construction of major components of such vessel: 
     Provided further, That none of the funds provided under this 
     heading shall be used for the construction of any naval 
     vessel in foreign shipyards.

                        [Other Procurement, Navy

       [For procurement, production, and modernization of support 
     equipment and materials not otherwise provided for, Navy 
     ordnance (except ordnance for new aircraft, new ships, and 
     ships authorized for conversion); the purchase of not to 
     exceed 141 passenger motor vehicles for replacement only, and 
     the purchase of 3 vehicles required for physical security of 
     personnel, notwithstanding price limitations applicable to 
     passenger vehicles but not to exceed $240,000 per unit for 
     one unit and not to exceed $125,000 per unit for the 
     remaining two units; expansion of public and private plants, 
     including the land necessary therefor, and such lands and 
     interests therein, may be acquired, and construction 
     prosecuted thereon prior to approval of title; and 
     procurement and installation of equipment, appliances, and 
     machine tools in public and private plants; reserve plant and 
     Government and contractor-owned equipment layaway, 
     $4,631,299,000, to remain available for obligation until 
     September 30, 2005, of which not less than $19,869,000 shall 
     be for the Naval Reserve.

                       [Procurement, Marine Corps

       [For expenses necessary for the procurement, manufacture, 
     and modification of missiles, armament, military equipment, 
     spare parts, and accessories therefor; plant equipment, 
     appliances, and machine tools, and installation thereof in 
     public and private plants; reserve plant and Government and 
     contractor-owned equipment layaway; vehicles for the Marine 
     Corps, including the purchase of not to exceed 28 passenger 
     motor vehicles for replacement only; and expansion of public 
     and private plants, including land necessary therefor, and 
     such lands and interests therein, may be acquired, and 
     construction prosecuted thereon prior to approval of title, 
     $1,369,383,000, to remain available for obligation until 
     September 30, 2005, of which not less than $253,724,000 shall 
     be available for the Marine Corps Reserve.

                    [Aircraft Procurement, Air Force

       [For construction, procurement, lease, and modification of 
     aircraft and equipment, including armor and armament, 
     specialized ground handling equipment, and training devices, 
     spare parts, and accessories therefor; specialized equipment; 
     expansion of public and private plants, Government-owned 
     equipment and installation thereof in such plants, erection 
     of structures, and acquisition of land, for the foregoing 
     purposes, and such lands and interests therein, may be 
     acquired, and construction prosecuted thereon prior to 
     approval of title; reserve plant and Government and 
     contractor-owned equipment layaway; and other expenses 
     necessary for the foregoing purposes including rents and 
     transportation of things, $12,492,730,000, to remain 
     available for obligation until September 30, 2005, of which 
     not less than $312,700,000 shall be available for the Air 
     National Guard and Air Force Reserve: Provided, That of the 
     amount provided under this heading, not less than 
     $207,000,000 shall be used only for the producability 
     improvement program directly related to the F-22 aircraft 
     program: Provided further, That amounts provided under this 
     heading shall be used for the advance procurement of 15 C-17 
     aircraft.

                    [Missile Procurement, Air Force

       [For construction, procurement, and modification of 
     missiles, spacecraft, rockets, and related equipment, 
     including spare parts and accessories therefor, ground 
     handling equipment, and training devices; expansion of public 
     and private plants, Government-owned equipment and 
     installation thereof in such plants, erection of structures, 
     and acquisition of land, for the foregoing purposes, and such 
     lands and interests therein, may be acquired, and 
     construction prosecuted thereon prior to approval of title; 
     reserve plant and Government and contractor-owned equipment 
     layaway; and other expenses necessary for the foregoing 
     purposes including rents and transportation of things, 
     $3,185,439,000, to remain available for obligation until 
     September 30, 2005.

                 [Procurement of Ammunition, Air Force

       [For construction, procurement, production, and 
     modification of ammunition, and accessories therefor; 
     specialized equipment and training devices; expansion of 
     public and private plants, including ammunition facilities 
     authorized by section 2854 of title 10, United States Code, 
     and the land necessary therefor, for the foregoing purposes, 
     and such lands and interests therein, may be acquired, and 
     construction prosecuted thereon prior to approval of title; 
     and procurement and installation of equipment, appliances, 
     and machine tools in public and private plants; reserve plant 
     and Government and contractor-owned equipment layaway; and 
     other expenses necessary for the foregoing purposes, 
     $1,290,764,000, to remain available for obligation until 
     September 30, 2005, of which not less than $120,200,000 shall 
     be available for the Air National Guard and Air Force 
     Reserve.

                     [Other Procurement, Air Force

       [For procurement and modification of equipment (including 
     ground guidance and electronic control equipment, and ground 
     electronic and communication equipment), and supplies, 
     materials, and spare parts therefor, not otherwise provided 
     for; the purchase of not to exceed 263 passenger motor 
     vehicles for replacement only, and the purchase of 2 vehicles 
     required for physical security of personnel, notwithstanding 
     price limitations applicable to passenger vehicles but not to 
     exceed $232,000 per vehicle; lease of passenger motor 
     vehicles; and expansion of public and private plants, 
     Government-owned equipment and installation thereof in such 
     plants, erection of structures, and acquisition of land, for 
     the foregoing purposes, and such lands and interests therein, 
     may be acquired, and construction prosecuted thereon, prior 
     to approval of title; reserve plant and Government and 
     contractor-owned equipment layaway, $10,622,660,000, to 
     remain available for obligation until September 30, 2005, of 
     which not less than $167,600,000 shall be available for the 
     Air National Guard and Air Force Reserve.

                       [Procurement, Defense-Wide

       [For expenses of activities and agencies of the Department 
     of Defense (other than the military departments) necessary 
     for procurement, production, and modification of equipment, 
     supplies, materials, and spare parts therefor, not otherwise 
     provided for; the purchase of not to exceed 99 passenger 
     motor vehicles for replacement only; the purchase of 4 
     vehicles required for physical security of personnel, 
     notwithstanding price limitations applicable to passenger 
     vehicles but not to exceed $250,000 per vehicle; expansion of 
     public and private plants, equipment, and installation 
     thereof in such plants, erection of structures, and 
     acquisition of land for the foregoing purposes, and such 
     lands and interests therein, may be acquired, and 
     construction prosecuted thereon prior to approval of title; 
     reserve plant and Government and contractor-owned equipment 
     layaway, $3,457,405,000, to remain available for obligation 
     until September 30, 2005: Provided, That funds provided under 
     this heading for Patriot Advanced Capability-3 (PAC-3) 
     missiles may be used for procurement of critical parts for 
     PAC-3 missiles to support production of such missiles in 
     future fiscal years.

                   [Defense Production Act Purchases

       [For activities by the Department of Defense pursuant to 
     sections 108, 301, 302, and 303 of the Defense Production Act 
     of 1950 (50 U.S.C. App. 2078, 2091, 2092, and 2093), 
     $73,057,000 to remain available until expended.

                               [TITLE IV

              [RESEARCH, DEVELOPMENT, TEST AND EVALUATION

           [Research, Development, Test and Evaluation, Army

       [For expenses necessary for basic and applied scientific 
     research, development, test and evaluation, including 
     maintenance, rehabilitation, lease, and operation of 
     facilities and equipment, $7,447,160,000, to remain available 
     for obligation until September 30, 2004.

           [Research, Development, Test and Evaluation, Navy

       [For expenses necessary for basic and applied scientific 
     research, development, test and evaluation, including 
     maintenance, rehabilitation, lease, and operation of 
     facilities and equipment, $13,562,218,000, to remain 
     available for obligation until September 30, 2004: Provided, 
     That funds appropriated in this paragraph which are available 
     for the V-22 may be used to meet unique operational 
     requirements of the Special Operations Forces.

         [Research, Development, Test and Evaluation, Air Force

       [For expenses necessary for basic and applied scientific 
     research, development, test and evaluation, including 
     maintenance, rehabilitation, lease, and operation of 
     facilities and equipment, $18,639,392,000, to remain 
     available for obligation until September 30, 2004.

[[Page 15452]]



       [Research, Development, Test and Evaluation, Defense-Wide

       [For expenses of activities and agencies of the Department 
     of Defense (other than the military departments), necessary 
     for basic and applied scientific research, development, test 
     and evaluation; advanced research projects as may be 
     designated and determined by the Secretary of Defense, 
     pursuant to law; maintenance, rehabilitation, lease, and 
     operation of facilities and equipment, $17,863,462,000 
     (reduced by $30,000,000) (increased by $30,000,000), to 
     remain available for obligation until September 30, 2004.

               [Operational Test and Evaluation, Defense

       [For expenses, not otherwise provided for, necessary for 
     the independent activities of the Director, Operational Test 
     and Evaluation, in the direction and supervision of 
     operational test and evaluation, including initial 
     operational test and evaluation which is conducted prior to, 
     and in support of, production decisions; joint operational 
     testing and evaluation; and administrative expenses in 
     connection therewith, $242,054,000, to remain available for 
     obligation until September 30, 2004.

                                [TITLE V

                    [REVOLVING AND MANAGEMENT FUNDS

                     [Defense Working Capital Funds

       [For the Defense Working Capital Funds, $1,832,956,000: 
     Provided, That during fiscal year 2003, funds in the Defense 
     Working Capital Funds may be used for the purchase of not to 
     exceed 315 passenger carrying motor vehicles for replacement 
     only for the Defense Security Service, and the purchase of 
     not to exceed 7 vehicles for replacement only for the Defense 
     Logistics Agency.

                     [National Defense Sealift Fund

       [For National Defense Sealift Fund programs, projects, and 
     activities, and for expenses of the National Defense Reserve 
     Fleet, as established by section 11 of the Merchant Ship 
     Sales Act of 1946 (50 U.S.C. App. 1744), and for the 
     necessary expenses to maintain and preserve a U.S.-flag 
     merchant fleet to serve the national security needs of the 
     United States, $944,129,000, to remain available until 
     expended: Provided, That none of the funds provided in this 
     paragraph shall be used to award a new contract that provides 
     for the acquisition of any of the following major components 
     unless such components are manufactured in the United States: 
     auxiliary equipment, including pumps, for all shipboard 
     services; propulsion system components (that is; engines, 
     reduction gears, and propellers); shipboard cranes; and 
     spreaders for shipboard cranes: Provided further, That the 
     exercise of an option in a contract awarded through the 
     obligation of previously appropriated funds shall not be 
     considered to be the award of a new contract: Provided 
     further, That the Secretary of the military department 
     responsible for such procurement may waive the restrictions 
     in the first proviso on a case-by-case basis by certifying in 
     writing to the Committees on Appropriations of the House of 
     Representatives and the Senate that adequate domestic 
     supplies are not available to meet Department of Defense 
     requirements on a timely basis and that such an acquisition 
     must be made in order to acquire capability for national 
     security purposes: Provided further, That, notwithstanding 
     any other provision of law, $10,000,000 of the funds 
     available under this heading shall be available in addition 
     to other amounts otherwise available, only to finance the 
     cost of constructing additional sealift capacity.

                               [TITLE VI

                 [OTHER DEPARTMENT OF DEFENSE PROGRAMS

                        [Defense Health Program

       [For expenses, not otherwise provided for, for medical and 
     health care programs of the Department of Defense, as 
     authorized by law, $14,600,748,000, of which $13,916,791,000 
     shall be for Operation and maintenance, of which not to 
     exceed 2 percent shall remain available until September 30, 
     2004; of which $283,743,000, to remain available for 
     obligation until September 30, 2005, shall be for 
     Procurement; of which $400,214,000, to remain available for 
     obligation until September 30, 2004, shall be for Research, 
     development, test and evaluation, and of which not less than 
     $10,000,000 shall be available for HIV prevention educational 
     activities undertaken in connection with U.S. military 
     training, exercises, and humanitarian assistance activities 
     conducted primarily in African nations.

            [Chemical Agents and Munitions Destruction, Army

       [For expenses, not otherwise provided for, necessary for 
     the destruction of the United States stockpile of lethal 
     chemical agents and munitions in accordance with the 
     provisions of section 1412 of the Department of Defense 
     Authorization Act, 1986 (50 U.S.C. 1521), and for the 
     destruction of other chemical warfare materials that are not 
     in the chemical weapon stockpile, $1,490,199,000, of which 
     $974,238,000 shall be for Operation and maintenance to remain 
     available until September 30, 2004, $213,278,000 shall be for 
     Procurement to remain available until September 30, 2005, and 
     $302,683,000 shall be for Research, development, test and 
     evaluation to remain available until September 30, 2004.

        [Drug Interdiction and Counter-Drug Activities, Defense


                     [(including transfer of funds)

       [For drug interdiction and counter-drug activities of the 
     Department of Defense, for transfer to appropriations 
     available to the Department of Defense for military personnel 
     of the reserve components serving under the provisions of 
     title 10 and title 32, United States Code; for Operation and 
     maintenance; for Procurement; and for Research, development, 
     test and evaluation, $859,907,000: Provided, That the funds 
     appropriated under this heading shall be available for 
     obligation for the same time period and for the same purpose 
     as the appropriation to which transferred: Provided further, 
     That upon a determination that all or part of the funds 
     transferred from this appropriation are not necessary for the 
     purposes provided herein, such amounts may be transferred 
     back to this appropriation: Provided further, That the 
     transfer authority provided under this heading is in addition 
     to any other transfer authority contained elsewhere in this 
     Act.

                    [Office of the Inspector General

       [For expenses and activities of the Office of the Inspector 
     General in carrying out the provisions of the Inspector 
     General Act of 1978, as amended, $157,165,000, of which 
     $155,165,000 shall be for Operation and maintenance, of which 
     not to exceed $700,000 is available for emergencies and 
     extraordinary expenses to be expended on the approval or 
     authority of the Inspector General, and payments may be made 
     on the Inspector General's certificate of necessity for 
     confidential military purposes; and of which $2,000,000 to 
     remain available until September 30, 2005, shall be for 
     Procurement.

                               [TITLE VII

                           [RELATED AGENCIES

   [Central Intelligence Agency Retirement and Disability System Fund

       [For payment to the Central Intelligence Agency Retirement 
     and Disability System Fund, to maintain the proper funding 
     level for continuing the operation of the Central 
     Intelligence Agency Retirement and Disability System, 
     $212,000,000.

               [Intelligence Community Management Account


                     [(including transfer of funds)

       [For necessary expenses of the Intelligence Community 
     Management Account, $162,254,000, of which $24,252,000 for 
     the Advanced Research and Development Committee shall remain 
     available until September 30, 2004: Provided, That of the 
     funds appropriated under this heading, $34,100,000 shall be 
     transferred to the Department of Justice for the National 
     Drug Intelligence Center to support the Department of 
     Defense's counter-drug intelligence responsibilities, and of 
     the said amount, $1,500,000 for Procurement shall remain 
     available until September 30, 2005 and $1,000,000 for 
     Research, development, test and evaluation shall remain 
     available until September 30, 2004: Provided further, That 
     the National Drug Intelligence Center shall maintain the 
     personnel and technical resources to provide timely support 
     to law enforcement authorities and the intelligence community 
     by conducting document and computer exploitation of materials 
     collected in Federal, State, and local law enforcement 
     activity associated with counter-drug, counter-terrorism, and 
     national security investigations and operations.

                         [Payment to Kaho'olawe

  [Island Conveyance, Remediation, and Environmental Restoration Fund

       [For payment to Kaho'olawe Island Conveyance, Remediation, 
     and Environmental Restoration Fund, as authorized by law, 
     $25,000,000, to remain available until expended.

                [National Security Education Trust Fund

       [For the purposes of title VIII of Public Law 102-183, 
     $8,000,000, to be derived from the National Security 
     Education Trust Fund, to remain available until expended.

                              [TITLE VIII

                          [GENERAL PROVISIONS

       [Sec. 8001. No part of any appropriation contained in this 
     Act shall be used for publicity or propaganda purposes not 
     authorized by the Congress.
       [Sec. 8002. During the current fiscal year, provisions of 
     law prohibiting the payment of compensation to, or employment 
     of, any person not a citizen of the United States shall not 
     apply to personnel of the Department of Defense: Provided, 
     That salary increases granted to direct and indirect hire 
     foreign national employees of the Department of Defense 
     funded by this Act shall not be at a rate in excess of the 
     percentage increase authorized by law for civilian employees 
     of the Department of Defense whose pay is computed under the 
     provisions of section 5332 of title 5, United States Code, or 
     at a rate in excess of the percentage increase provided by 
     the appropriate host nation to its own employees, whichever 
     is higher: Provided further, That this section shall not 
     apply to Department of Defense foreign service national 
     employees serving at United States diplomatic missions whose 
     pay is set by the Department of State under the Foreign 
     Service

[[Page 15453]]

     Act of 1980: Provided further, That the limitations of this 
     provision shall not apply to foreign national employees of 
     the Department of Defense in the Republic of Turkey.
       [Sec. 8003. No part of any appropriation contained in this 
     Act shall remain available for obligation beyond the current 
     fiscal year, unless expressly so provided herein.
       [Sec. 8004. No more than 20 percent of the appropriations 
     in this Act which are limited for obligation during the 
     current fiscal year shall be obligated during the last 2 
     months of the fiscal year: Provided, That this section shall 
     not apply to obligations for support of active duty training 
     of reserve components or summer camp training of the Reserve 
     Officers' Training Corps.

                          [(transfer of funds)

       [Sec. 8005. Upon determination by the Secretary of Defense 
     that such action is necessary in the national interest, he 
     may, with the approval of the Office of Management and 
     Budget, transfer not to exceed $2,500,000,000 of working 
     capital funds of the Department of Defense or funds made 
     available in this Act to the Department of Defense for 
     military functions (except military construction) between 
     such appropriations or funds or any subdivision thereof, to 
     be merged with and to be available for the same purposes, and 
     for the same time period, as the appropriation or fund to 
     which transferred: Provided, That such authority to transfer 
     may not be used unless for higher priority items, based on 
     unforeseen military requirements, than those for which 
     originally appropriated and in no case where the item for 
     which funds are requested has been denied by the Congress: 
     Provided further, That the Secretary of Defense shall notify 
     the Congress promptly of all transfers made pursuant to this 
     authority or any other authority in this Act: Provided 
     further, That no part of the funds in this Act shall be 
     available to prepare or present a request to the Committees 
     on Appropriations for reprogramming of funds, unless for 
     higher priority items, based on unforeseen military 
     requirements, than those for which originally appropriated 
     and in no case where the item for which reprogramming is 
     requested has been denied by the Congress: Provided further, 
     That a request for multiple reprogrammings of funds using 
     authority provided in this section must be made prior to May 
     1, 2003.

                          [(transfer of funds)

       [Sec. 8006. During the current fiscal year, cash balances 
     in working capital funds of the Department of Defense 
     established pursuant to section 2208 of title 10, United 
     States Code, may be maintained in only such amounts as are 
     necessary at any time for cash disbursements to be made from 
     such funds: Provided, That transfers may be made between such 
     funds: Provided further, That transfers may be made between 
     working capital funds and the ``Foreign Currency 
     Fluctuations, Defense'' appropriation and the ``Operation and 
     Maintenance'' appropriation accounts in such amounts as may 
     be determined by the Secretary of Defense, with the approval 
     of the Office of Management and Budget, except that such 
     transfers may not be made unless the Secretary of Defense has 
     notified the Congress of the proposed transfer. Except in 
     amounts equal to the amounts appropriated to working capital 
     funds in this Act, no obligations may be made against a 
     working capital fund to procure or increase the value of war 
     reserve material inventory, unless the Secretary of Defense 
     has notified the Congress prior to any such obligation.
       [Sec. 8007. Funds appropriated by this Act may not be used 
     to initiate a special access program without prior 
     notification 30 calendar days in session in advance to the 
     congressional defense committees.
       [Sec. 8008. None of the funds provided in this Act shall be 
     available to initiate: (1) a multiyear contract that employs 
     economic order quantity procurement in excess of $20,000,000 
     in any 1 year of the contract or that includes an unfunded 
     contingent liability in excess of $20,000,000; or (2) a 
     contract for advance procurement leading to a multiyear 
     contract that employs economic order quantity procurement in 
     excess of $20,000,000 in any 1 year, unless the congressional 
     defense committees have been notified at least 30 days in 
     advance of the proposed contract award: Provided, That no 
     part of any appropriation contained in this Act shall be 
     available to initiate a multiyear contract for which the 
     economic order quantity advance procurement is not funded at 
     least to the limits of the Government's liability: Provided 
     further, That no part of any appropriation contained in this 
     Act shall be available to initiate multiyear procurement 
     contracts for any systems or component thereof if the value 
     of the multiyear contract would exceed $500,000,000 unless 
     specifically provided in this Act: Provided further, That no 
     multiyear procurement contract can be terminated without 10-
     day prior notification to the congressional defense 
     committees: Provided further, That the execution of multiyear 
     authority shall require the use of a present value analysis 
     to determine lowest cost compared to an annual procurement.
       [Funds appropriated in title III of this Act may be used 
     for multiyear procurement contracts as follows:
       [C-130 aircraft; and
       [F/A-18E and F engine.
       [Sec. 8009. Within the funds appropriated for the operation 
     and maintenance of the Armed Forces, funds are hereby 
     appropriated pursuant to section 401 of title 10, United 
     States Code, for humanitarian and civic assistance costs 
     under chapter 20 of title 10, United States Code. Such funds 
     may also be obligated for humanitarian and civic assistance 
     costs incidental to authorized operations and pursuant to 
     authority granted in section 401 of chapter 20 of title 10, 
     United States Code, and these obligations shall be reported 
     to the Congress as of September 30 of each year: Provided, 
     That funds available for operation and maintenance shall be 
     available for providing humanitarian and similar assistance 
     by using Civic Action Teams in the Trust Territories of the 
     Pacific Islands and freely associated states of Micronesia, 
     pursuant to the Compact of Free Association as authorized by 
     Public Law 99-239: Provided further, That upon a 
     determination by the Secretary of the Army that such action 
     is beneficial for graduate medical education programs 
     conducted at Army medical facilities located in Hawaii, the 
     Secretary of the Army may authorize the provision of medical 
     services at such facilities and transportation to such 
     facilities, on a nonreimbursable basis, for civilian patients 
     from American Samoa, the Commonwealth of the Northern Mariana 
     Islands, the Marshall Islands, the Federated States of 
     Micronesia, Palau, and Guam.
       [Sec. 8010. (a) During fiscal year 2003, the civilian 
     personnel of the Department of Defense may not be managed on 
     the basis of any end-strength, and the management of such 
     personnel during that fiscal year shall not be subject to any 
     constraint or limitation (known as an end-strength) on the 
     number of such personnel who may be employed on the last day 
     of such fiscal year.
       [(b) The fiscal year 2004 budget request for the Department 
     of Defense as well as all justification material and other 
     documentation supporting the fiscal year 2004 Department of 
     Defense budget request shall be prepared and submitted to the 
     Congress as if subsections (a) and (b) of this provision were 
     effective with regard to fiscal year 2004.
       [(c) Nothing in this section shall be construed to apply to 
     military (civilian) technicians.
       [Sec. 8011. Notwithstanding any other provision of law, 
     none of the funds made available by this Act shall be used by 
     the Department of Defense to exceed, outside the 50 United 
     States, its territories, and the District of Columbia, 
     125,000 civilian workyears: Provided, That workyears shall be 
     applied as defined in the Federal Personnel Manual: Provided 
     further, That workyears expended in dependent student hiring 
     programs for disadvantaged youths shall not be included in 
     this workyear limitation.
       [Sec. 8012. None of the funds made available by this Act 
     shall be used in any way, directly or indirectly, to 
     influence congressional action on any legislation or 
     appropriation matters pending before the Congress.
       [Sec. 8013. None of the funds appropriated by this Act 
     shall be available for the basic pay and allowances of any 
     member of the Army participating as a full-time student and 
     receiving benefits paid by the Secretary of Veterans Affairs 
     from the Department of Defense Education Benefits Fund when 
     time spent as a full-time student is credited toward 
     completion of a service commitment: Provided, That this 
     subsection shall not apply to those members who have 
     reenlisted with this option prior to October 1, 1987: 
     Provided further, That this subsection applies only to active 
     components of the Army.
       [Sec. 8014. None of the funds appropriated by this Act 
     shall be available to convert to contractor performance an 
     activity or function of the Department of Defense that, on or 
     after the date of the enactment of this Act, is performed by 
     more than 10 Department of Defense civilian employees until a 
     most efficient and cost-effective organization analysis is 
     completed on such activity or function and certification of 
     the analysis is made to the Committees on Appropriations of 
     the House of Representatives and the Senate: Provided, That 
     this section and subsections (a), (b), and (c) of 10 U.S.C. 
     2461 shall not apply to a commercial or industrial type 
     function of the Department of Defense that: (1) is included 
     on the procurement list established pursuant to section 2 of 
     the Act of June 25, 1938 (41 U.S.C. 47), popularly referred 
     to as the Javits-Wagner-O'Day Act; (2) is planned to be 
     converted to performance by a qualified nonprofit agency for 
     the blind or by a qualified nonprofit agency for other 
     severely handicapped individuals in accordance with that Act; 
     or (3) is planned to be converted to performance by a 
     qualified firm under 51 percent ownership by an Indian tribe, 
     as defined in section 450b(e) of title 25, United States 
     Code, or a Native Hawaiian organization, as defined in 
     section 637(a)(15) of title 15, United States Code.

                          [(transfer of funds)

       [Sec. 8015. Funds appropriated in title III of this Act for 
     the Department of Defense Pilot Mentor-Protege Program may be 
     transferred to any other appropriation contained in this Act 
     solely for the purpose of implementing a Mentor-Protege 
     Program developmental assistance agreement pursuant to 
     section 831 of the National Defense Authorization Act for 
     Fiscal Year 1991 (Public Law

[[Page 15454]]

     101-510; 10 U.S.C. 2301 note), as amended, under the 
     authority of this provision or any other transfer authority 
     contained in this Act.
       [Sec. 8016. None of the funds in this Act may be available 
     for the purchase by the Department of Defense (and its 
     departments and agencies) of welded shipboard anchor and 
     mooring chain 4 inches in diameter and under unless the 
     anchor and mooring chain are manufactured in the United 
     States from components which are substantially manufactured 
     in the United States: Provided, That for the purpose of this 
     section manufactured will include cutting, heat treating, 
     quality control, testing of chain and welding (including the 
     forging and shot blasting process): Provided further, That 
     for the purpose of this section substantially all of the 
     components of anchor and mooring chain shall be considered to 
     be produced or manufactured in the United States if the 
     aggregate cost of the components produced or manufactured in 
     the United States exceeds the aggregate cost of the 
     components produced or manufactured outside the United 
     States: Provided further, That when adequate domestic 
     supplies are not available to meet Department of Defense 
     requirements on a timely basis, the Secretary of the service 
     responsible for the procurement may waive this restriction on 
     a case-by-case basis by certifying in writing to the 
     Committees on Appropriations that such an acquisition must be 
     made in order to acquire capability for national security 
     purposes.
       [Sec. 8017. None of the funds appropriated by this Act 
     available for the Civilian Health and Medical Program of the 
     Uniformed Services (CHAMPUS) or TRICARE shall be available 
     for the reimbursement of any health care provider for 
     inpatient mental health service for care received when a 
     patient is referred to a provider of inpatient mental health 
     care or residential treatment care by a medical or health 
     care professional having an economic interest in the facility 
     to which the patient is referred: Provided, That this 
     limitation does not apply in the case of inpatient mental 
     health services provided under the program for persons with 
     disabilities under subsection (d) of section 1079 of title 
     10, United States Code, provided as partial hospital care, or 
     provided pursuant to a waiver authorized by the Secretary of 
     Defense because of medical or psychological circumstances of 
     the patient that are confirmed by a health professional who 
     is not a Federal employee after a review, pursuant to rules 
     prescribed by the Secretary, which takes into account the 
     appropriate level of care for the patient, the intensity of 
     services required by the patient, and the availability of 
     that care.
       [Sec. 8018. Notwithstanding any other provision of law, 
     during the current fiscal year, the Secretary of Defense may, 
     by executive agreement, establish with host nation 
     governments in NATO member states a separate account into 
     which such residual value amounts negotiated in the return of 
     United States military installations in NATO member states 
     may be deposited, in the currency of the host nation, in lieu 
     of direct monetary transfers to the United States Treasury: 
     Provided, That such credits may be utilized only for the 
     construction of facilities to support United States military 
     forces in that host nation, or such real property maintenance 
     and base operating costs that are currently executed through 
     monetary transfers to such host nations: Provided further, 
     That the Department of Defense's budget submission for fiscal 
     year 2004 shall identify such sums anticipated in residual 
     value settlements, and identify such construction, real 
     property maintenance or base operating costs that shall be 
     funded by the host nation through such credits: Provided 
     further, That all military construction projects to be 
     executed from such accounts must be previously approved in a 
     prior Act of Congress: Provided further, That each such 
     executive agreement with a NATO member host nation shall be 
     reported to the congressional defense committees, the 
     Committee on International Relations of the House of 
     Representatives and the Committee on Foreign Relations of the 
     Senate 30 days prior to the conclusion and endorsement of any 
     such agreement established under this provision.
       [Sec. 8019. None of the funds available to the Department 
     of Defense may be used to demilitarize or dispose of M-1 
     Carbines, M-1 Garand rifles, M-14 rifles, .22 caliber rifles, 
     .30 caliber rifles, or M-1911 pistols.
       [Sec. 8020. No more than $500,000 of the funds appropriated 
     or made available in this Act shall be used during a single 
     fiscal year for any single relocation of an organization, 
     unit, activity or function of the Department of Defense into 
     or within the National Capital Region: Provided, That the 
     Secretary of Defense may waive this restriction on a case-by-
     case basis by certifying in writing to the congressional 
     defense committees that such a relocation is required in the 
     best interest of the Government.
       [Sec. 8021. In addition to the funds provided elsewhere in 
     this Act, $8,000,000 is appropriated only for incentive 
     payments authorized by section 504 of the Indian Financing 
     Act of 1974 (25 U.S.C. 1544): Provided, That a subcontractor 
     at any tier shall be considered a contractor for the purposes 
     of being allowed additional compensation under section 504 of 
     the Indian Financing Act of 1974 (25 U.S.C. 1544).
       [Sec. 8022. None of the funds appropriated by this Act 
     shall be available to perform any cost study pursuant to the 
     provisions of OMB Circular A-76 if the study being performed 
     exceeds a period of 24 months after initiation of such study 
     with respect to a single function activity or 48 months after 
     initiation of such study for a multi-function activity.
       [Sec. 8023. Funds appropriated by this Act for the American 
     Forces Information Service shall not be used for any national 
     or international political or psychological activities.
       [Sec. 8024. Notwithstanding any other provision of law or 
     regulation, the Secretary of Defense may adjust wage rates 
     for civilian employees hired for certain health care 
     occupations as authorized for the Secretary of Veterans 
     Affairs by section 7455 of title 38, United States Code.
       [Sec. 8025. (a) Of the funds for the procurement of 
     supplies or services appropriated by this Act, qualified 
     nonprofit agencies for the blind or other severely 
     handicapped shall be afforded the maximum practicable 
     opportunity to participate as subcontractors and suppliers in 
     the performance of contracts let by the Department of 
     Defense.
       [(b) During the current fiscal year, a business concern 
     which has negotiated with a military service or defense 
     agency a subcontracting plan for the participation by small 
     business concerns pursuant to section 8(d) of the Small 
     Business Act (15 U.S.C. 637(d)) shall be given credit toward 
     meeting that subcontracting goal for any purchases made from 
     qualified nonprofit agencies for the blind or other severely 
     handicapped.
       [(c) For the purpose of this section, the phrase 
     ``qualified nonprofit agency for the blind or other severely 
     handicapped'' means a nonprofit agency for the blind or other 
     severely handicapped that has been approved by the Committee 
     for the Purchase from the Blind and Other Severely 
     Handicapped under the Javits-Wagner-O'Day Act (41 U.S.C. 46-
     48).
       [Sec. 8026. During the current fiscal year, net receipts 
     pursuant to collections from third party payers pursuant to 
     section 1095 of title 10, United States Code, shall be made 
     available to the local facility of the uniformed services 
     responsible for the collections and shall be over and above 
     the facility's direct budget amount.
       [Sec. 8027. During the current fiscal year, and from any 
     funds available to the Department of Defense, the Department 
     is authorized to incur obligations of not to exceed 
     $350,000,000 for purposes specified in section 2350j(c) of 
     title 10, United States Code, in anticipation of receipt of 
     contributions, only from the Government of Kuwait, under that 
     section: Provided, That upon receipt, such contributions from 
     the Government of Kuwait shall be credited to the 
     appropriations or fund which incurred such obligations.
       [Sec. 8028. Of the funds made available in this Act, not 
     less than $23,003,000 shall be available for the Civil Air 
     Patrol Corporation, of which $21,503,000 shall be available 
     for Civil Air Patrol Corporation operation and maintenance to 
     support readiness activities which includes $1,500,000 for 
     the Civil Air Patrol counterdrug program: Provided, That 
     funds identified for ``Civil Air Patrol'' under this section 
     are intended for and shall be for the exclusive use of the 
     Civil Air Patrol Corporation and not for the Air Force or any 
     unit thereof.
       [Sec. 8029. (a) None of the funds appropriated in this Act 
     are available to establish a new Department of Defense 
     (department) federally funded research and development center 
     (FFRDC), either as a new entity, or as a separate entity 
     administrated by an organization managing another FFRDC, or 
     as a nonprofit membership corporation consisting of a 
     consortium of other FFRDCs and other non-profit entities.
       [(b) No member of a Board of Directors, Trustees, 
     Overseers, Advisory Group, Special Issues Panel, Visiting 
     Committee, or any similar entity of a defense FFRDC, and no 
     paid consultant to any defense FFRDC, except when acting in a 
     technical advisory capacity, may be compensated for his or 
     her services as a member of such entity, or as a paid 
     consultant by more than one FFRDC in a fiscal year: Provided, 
     That a member of any such entity referred to previously in 
     this subsection shall be allowed travel expenses and per diem 
     as authorized under the Federal Joint Travel Regulations, 
     when engaged in the performance of membership duties.
       [(c) Notwithstanding any other provision of law, none of 
     the funds available to the department from any source during 
     fiscal year 2003 may be used by a defense FFRDC, through a 
     fee or other payment mechanism, for construction of new 
     buildings, for payment of cost sharing for projects funded by 
     Government grants, for absorption of contract overruns, or 
     for certain charitable contributions, not to include employee 
     participation in community service and/or development.
       [(d) Notwithstanding any other provision of law, of the 
     funds available to the department during fiscal year 2003, 
     not more than 6,277 staff years of technical effort (staff 
     years) may be funded for defense FFRDCs: Provided, That of 
     the specific amount referred to previously in this 
     subsection, not more than 1,029 staff years may be funded for 
     the defense studies and analysis FFRDCs.

[[Page 15455]]

       [(e) The Secretary of Defense shall, with the submission of 
     the department's fiscal year 2004 budget request, submit a 
     report presenting the specific amounts of staff years of 
     technical effort to be allocated for each defense FFRDC 
     during that fiscal year.
       [Sec. 8030. None of the funds appropriated or made 
     available in this Act shall be used to procure carbon, alloy 
     or armor steel plate for use in any Government-owned facility 
     or property under the control of the Department of Defense 
     which were not melted and rolled in the United States or 
     Canada: Provided, That these procurement restrictions shall 
     apply to any and all Federal Supply Class 9515, American 
     Society of Testing and Materials (ASTM) or American Iron and 
     Steel Institute (AISI) specifications of carbon, alloy or 
     armor steel plate: Provided further, That the Secretary of 
     the military department responsible for the procurement may 
     waive this restriction on a case-by-case basis by certifying 
     in writing to the Committees on Appropriations of the House 
     of Representatives and the Senate that adequate domestic 
     supplies are not available to meet Department of Defense 
     requirements on a timely basis and that such an acquisition 
     must be made in order to acquire capability for national 
     security purposes: Provided further, That these restrictions 
     shall not apply to contracts which are in being as of the 
     date of the enactment of this Act.
       [Sec. 8031. For the purposes of this Act, the term 
     ``congressional defense committees'' means the Armed Services 
     Committee of the House of Representatives, the Armed Services 
     Committee of the Senate, the Subcommittee on Defense of the 
     Committee on Appropriations of the Senate, and the 
     Subcommittee on Defense of the Committee on Appropriations of 
     the House of Representatives.
       [Sec. 8032. During the current fiscal year, the Department 
     of Defense may acquire the modification, depot maintenance 
     and repair of aircraft, vehicles and vessels as well as the 
     production of components and other Defense-related articles, 
     through competition between Department of Defense depot 
     maintenance activities and private firms: Provided, That the 
     Senior Acquisition Executive of the military department or 
     defense agency concerned, with power of delegation, shall 
     certify that successful bids include comparable estimates of 
     all direct and indirect costs for both public and private 
     bids: Provided further, That Office of Management and Budget 
     Circular A-76 shall not apply to competitions conducted under 
     this section.
       [Sec. 8033. (a)(1) If the Secretary of Defense, after 
     consultation with the United States Trade Representative, 
     determines that a foreign country which is party to an 
     agreement described in paragraph (2) has violated the terms 
     of the agreement by discriminating against certain types of 
     products produced in the United States that are covered by 
     the agreement, the Secretary of Defense shall rescind the 
     Secretary's blanket waiver of the Buy American Act with 
     respect to such types of products produced in that foreign 
     country.
       [(2) An agreement referred to in paragraph (1) is any 
     reciprocal defense procurement memorandum of understanding, 
     between the United States and a foreign country pursuant to 
     which the Secretary of Defense has prospectively waived the 
     Buy American Act for certain products in that country.
       [(b) The Secretary of Defense shall submit to the Congress 
     a report on the amount of Department of Defense purchases 
     from foreign entities in fiscal year 2002. Such report shall 
     separately indicate the dollar value of items for which the 
     Buy American Act was waived pursuant to any agreement 
     described in subsection (a)(2), the Trade Agreement Act of 
     1979 (19 U.S.C. 2501 et seq.), or any international agreement 
     to which the United States is a party.
       [(c) For purposes of this section, the term ``Buy American 
     Act'' means title III of the Act entitled ``An Act making 
     appropriations for the Treasury and Post Office Departments 
     for the fiscal year ending June 30, 1934, and for other 
     purposes'', approved March 3, 1933 (41 U.S.C. 10a et seq.).
       [Sec. 8034. Appropriations contained in this Act that 
     remain available at the end of the current fiscal year as a 
     result of energy cost savings realized by the Department of 
     Defense shall remain available for obligation for the next 
     fiscal year to the extent, and for the purposes, provided in 
     section 2865 of title 10, United States Code.

                     [(including transfer of funds)

       [Sec. 8035. Amounts deposited during the current fiscal 
     year to the special account established under 40 U.S.C. 
     485(h)(2) and to the special account established under 10 
     U.S.C. 2667(d)(1) are appropriated and shall be available 
     until transferred by the Secretary of Defense to current 
     applicable appropriations or funds of the Department of 
     Defense under the terms and conditions specified by 40 U.S.C. 
     485(h)(2)(A) and (B) and 10 U.S.C. 2667(d)(1)(B), to be 
     merged with and to be available for the same time period and 
     the same purposes as the appropriation to which transferred.
       [Sec. 8036. The President shall include with each budget 
     for a fiscal year submitted to the Congress under section 
     1105 of title 31, United States Code, materials that shall 
     identify clearly and separately the amounts requested in the 
     budget for appropriation for that fiscal year for salaries 
     and expenses related to administrative activities of the 
     Department of Defense, the military departments, and the 
     defense agencies.
       [Sec. 8037. Notwithstanding any other provision of law, 
     funds available for ``Drug Interdiction and Counter-Drug 
     Activities, Defense'' may be obligated for the Young Marines 
     program.

                     [(including transfer of funds)

       [Sec. 8038. During the current fiscal year, amounts 
     contained in the Department of Defense Overseas Military 
     Facility Investment Recovery Account established by section 
     2921(c)(1) of the National Defense Authorization Act of 1991 
     (Public Law 101-510; 10 U.S.C. 2687 note) shall be available 
     until expended for the payments specified by section 
     2921(c)(2) of that Act.
       [Sec. 8039. (a) In General.--Notwithstanding any other 
     provision of law, the Secretary of the Air Force may convey 
     at no cost to the Air Force, without consideration, to Indian 
     tribes located in the States of North Dakota, South Dakota, 
     Montana, and Minnesota relocatable military housing units 
     located at Grand Forks Air Force Base and Minot Air Force 
     Base that are excess to the needs of the Air Force.
       [(b) Processing of Requests.--The Secretary of the Air 
     Force shall convey, at no cost to the Air Force, military 
     housing units under subsection (a) in accordance with the 
     request for such units that are submitted to the Secretary by 
     the Operation Walking Shield Program on behalf of Indian 
     tribes located in the States of North Dakota, South Dakota, 
     Montana, and Minnesota.
       [(c) Resolution of Housing Unit Conflicts.--The Operation 
     Walking Shield program shall resolve any conflicts among 
     requests of Indian tribes for housing units under subsection 
     (a) before submitting requests to the Secretary of the Air 
     Force under subsection (b).
       [(d) Indian Tribe Defined.--In this section, the term 
     ``Indian tribe'' means any recognized Indian tribe included 
     on the current list published by the Secretary of the 
     Interior under section 104 of the federally Recognized Indian 
     Tribe Act of 1994 (Public Law 103-454; 108 Stat. 4792; 25 
     U.S.C. 479a-1).
       [Sec. 8040. During the current fiscal year, appropriations 
     which are available to the Department of Defense for 
     operation and maintenance may be used to purchase items 
     having an investment item unit cost of not more than 
     $100,000.
       [Sec. 8041. (a) During the current fiscal year, none of the 
     appropriations or funds available to the Department of 
     Defense Working Capital Funds shall be used for the purchase 
     of an investment item for the purpose of acquiring a new 
     inventory item for sale or anticipated sale during the 
     current fiscal year or a subsequent fiscal year to customers 
     of the Department of Defense Working Capital Funds if such an 
     item would not have been chargeable to the Department of 
     Defense Business Operations Fund during fiscal year 1994 and 
     if the purchase of such an investment item would be 
     chargeable during the current fiscal year to appropriations 
     made to the Department of Defense for procurement.
       [(b) The fiscal year 2004 budget request for the Department 
     of Defense as well as all justification material and other 
     documentation supporting the fiscal year 2004 Department of 
     Defense budget shall be prepared and submitted to the 
     Congress on the basis that any equipment which was classified 
     as an end item and funded in a procurement appropriation 
     contained in this Act shall be budgeted for in a proposed 
     fiscal year 2004 procurement appropriation and not in the 
     supply management business area or any other area or category 
     of the Department of Defense Working Capital Funds.
       [Sec. 8042. None of the funds appropriated by this Act for 
     programs of the Central Intelligence Agency shall remain 
     available for obligation beyond the current fiscal year, 
     except for funds appropriated for the Reserve for 
     Contingencies, which shall remain available until September 
     30, 2004: Provided, That funds appropriated, transferred, or 
     otherwise credited to the Central Intelligence Agency Central 
     Services Working Capital Fund during this or any prior or 
     subsequent fiscal year shall remain available until expended: 
     Provided further, That any funds appropriated or transferred 
     to the Central Intelligence Agency for agent operations and 
     for covert action programs authorized by the President under 
     section 503 of the National Security Act of 1947, as amended, 
     shall remain available until September 30, 2004.
       [Sec. 8043. Notwithstanding any other provision of law, 
     funds made available in this Act for the Defense Intelligence 
     Agency may be used for the design, development, and 
     deployment of General Defense Intelligence Program 
     intelligence communications and intelligence information 
     systems for the Services, the Unified and Specified Commands, 
     and the component commands.
       [Sec. 8044. Of the funds appropriated to the Department of 
     Defense under the heading ``Operation and Maintenance, 
     Defense-Wide'', not less than $10,000,000 shall be made 
     available only for the mitigation of environmental impacts, 
     including training and technical assistance to tribes, 
     related administrative support, the gathering of information, 
     documenting of environmental damage,

[[Page 15456]]

     and developing a system for prioritization of mitigation and 
     cost to complete estimates for mitigation, on Indian lands 
     resulting from Department of Defense activities.
       [Sec. 8045. Amounts collected for the use of the facilities 
     of the National Science Center for Communications and 
     Electronics during the current fiscal year and hereafter 
     pursuant to section 1459(g) of the Department of Defense 
     Authorization Act, 1986, and deposited to the special account 
     established under subsection 1459(g)(2) of that Act are 
     appropriated and shall be available until expended for the 
     operation and maintenance of the Center as provided for in 
     subsection 1459(g)(2).
       [Sec. 8046. (a) None of the funds appropriated in this Act 
     may be expended by an entity of the Department of Defense 
     unless the entity, in expending the funds, complies with the 
     Buy American Act. For purposes of this subsection, the term 
     ``Buy American Act'' means title III of the Act entitled ``An 
     Act making appropriations for the Treasury and Post Office 
     Departments for the fiscal year ending June 30, 1934, and for 
     other purposes'', approved March 3, 1933 (41 U.S.C. 10a et 
     seq.).
       [(b) If the Secretary of Defense determines that a person 
     has been convicted of intentionally affixing a label bearing 
     a ``Made in America'' inscription to any product sold in or 
     shipped to the United States that is not made in America, the 
     Secretary shall determine, in accordance with section 2410f 
     of title 10, United States Code, whether the person should be 
     debarred from contracting with the Department of Defense.
       [(c) In the case of any equipment or products purchased 
     with appropriations provided under this Act, it is the sense 
     of the Congress that any entity of the Department of Defense, 
     in expending the appropriation, purchase only American-made 
     equipment and products, provided that American-made equipment 
     and products are cost-competitive, quality-competitive, and 
     available in a timely fashion.
       [Sec. 8047. None of the funds appropriated by this Act 
     shall be available for a contract for studies, analysis, or 
     consulting services entered into without competition on the 
     basis of an unsolicited proposal unless the head of the 
     activity responsible for the procurement determines--
       [(1) as a result of thorough technical evaluation, only one 
     source is found fully qualified to perform the proposed work;
       [(2) the purpose of the contract is to explore an 
     unsolicited proposal which offers significant scientific or 
     technological promise, represents the product of original 
     thinking, and was submitted in confidence by one source; or
       [(3) the purpose of the contract is to take advantage of 
     unique and significant industrial accomplishment by a 
     specific concern, or to insure that a new product or idea of 
     a specific concern is given financial support:
     [Provided, That this limitation shall not apply to contracts 
     in an amount of less than $25,000, contracts related to 
     improvements of equipment that is in development or 
     production, or contracts as to which a civilian official of 
     the Department of Defense, who has been confirmed by the 
     Senate, determines that the award of such contract is in the 
     interest of the national defense.
       [Sec. 8048. (a) Except as provided in subsections (b) and 
     (c), none of the funds made available by this Act may be 
     used--
       [(1) to establish a field operating agency; or
       [(2) to pay the basic pay of a member of the Armed Forces 
     or civilian employee of the department who is transferred or 
     reassigned from a headquarters activity if the member or 
     employee's place of duty remains at the location of that 
     headquarters.
       [(b) The Secretary of Defense or Secretary of a military 
     department may waive the limitations in subsection (a), on a 
     case-by-case basis, if the Secretary determines, and 
     certifies to the Committees on Appropriations of the House of 
     Representatives and Senate that the granting of the waiver 
     will reduce the personnel requirements or the financial 
     requirements of the department.
       [(c) This section does not apply to field operating 
     agencies funded within the National Foreign Intelligence 
     Program.
       [Sec. 8049. Notwithstanding section 303 of Public Law 96-
     487 or any other provision of law, the Secretary of the Navy 
     is authorized to lease real and personal property at Naval 
     Air Facility, Adak, Alaska, pursuant to 10 U.S.C. 2667(f), 
     for commercial, industrial or other purposes: Provided, That 
     notwithstanding any other provision of law, the Secretary of 
     the Navy may remove hazardous materials from facilities, 
     buildings, and structures at Adak, Alaska, and may demolish 
     or otherwise dispose of such facilities, buildings, and 
     structures.


                             [(RESCISSIONS)

       [Sec. 8050. Of the funds provided in Department of Defense 
     Appropriations Acts, the following funds are hereby rescinded 
     from the following accounts and programs in the specified 
     amounts:
       [``Aircraft Procurement, Army, 2002/2004'', $3,000,000;
       [``Missile Procurement, Army, 2002/2004'', $28,350,000;
       [``Procurement of Weapons and Tracked Combat Vehicles, 
     Army, 2002/2004'', $9,500,000;
       [``Procurement of Ammunition, Army, 2002/2004'', 
     $25,500,000;
       [``Procurement, Marine Corps, 2002/2004'', $4,682,000;
       [``Aircraft Procurement, Air Force, 2002/2004'', 
     $23,500,000;
       [``Missile Procurement, Air Force, 2002/2004'', 
     $26,900,000;
       [``Research, Development, Test and Evaluation, Army, 2002/
     2003'', $2,500,000;
       [``Research, Development, Test and Evaluation, Navy, 2002/
     2003'', $2,000,000; and
       [``Research, Development, Test and Evaluation, Air Force, 
     2002/2003'', $67,000,000.
       [Sec. 8051. None of the funds available in this Act may be 
     used to reduce the authorized positions for military 
     (civilian) technicians of the Army National Guard, the Air 
     National Guard, Army Reserve and Air Force Reserve for the 
     purpose of applying any administratively imposed civilian 
     personnel ceiling, freeze, or reduction on military 
     (civilian) technicians, unless such reductions are a direct 
     result of a reduction in military force structure.
       [Sec. 8052. None of the funds appropriated or otherwise 
     made available in this Act may be obligated or expended for 
     assistance to the Democratic People's Republic of North Korea 
     unless specifically appropriated for that purpose.
       [Sec. 8053. During the current fiscal year, funds 
     appropriated in this Act are available to compensate members 
     of the National Guard for duty performed pursuant to a plan 
     submitted by a Governor of a State and approved by the 
     Secretary of Defense under section 112 of title 32, United 
     States Code: Provided, That during the performance of such 
     duty, the members of the National Guard shall be under State 
     command and control: Provided further, That such duty shall 
     be treated as full-time National Guard duty for purposes of 
     sections 12602(a)(2) and (b)(2) of title 10, United States 
     Code.
       [Sec. 8054. Funds appropriated in this Act for operation 
     and maintenance of the Military Departments, Combatant 
     Commands and Defense Agencies shall be available for 
     reimbursement of pay, allowances and other expenses which 
     would otherwise be incurred against appropriations for the 
     National Guard and Reserve when members of the National Guard 
     and Reserve provide intelligence or counterintelligence 
     support to Combatant Commands, Defense Agencies and Joint 
     Intelligence Activities, including the activities and 
     programs included within the National Foreign Intelligence 
     Program (NFIP), the Joint Military Intelligence Program 
     (JMIP), and the Tactical Intelligence and Related Activities 
     (TIARA) aggregate: Provided, That nothing in this section 
     authorizes deviation from established Reserve and National 
     Guard personnel and training procedures.
       [Sec. 8055. During the current fiscal year, none of the 
     funds appropriated in this Act may be used to reduce the 
     civilian medical and medical support personnel assigned to 
     military treatment facilities below the September 30, 2002 
     level: Provided, That the Service Surgeons General may waive 
     this section by certifying to the congressional defense 
     committees that the beneficiary population is declining in 
     some catchment areas and civilian strength reductions may be 
     consistent with responsible resource stewardship and 
     capitation-based budgeting.
       [Sec. 8056. (a) Limitation on Pentagon Renovation Costs.--
     Not later than the date each year on which the President 
     submits to Congress the budget under section 1105 of title 
     31, United States Code, the Secretary of Defense shall submit 
     to Congress a certification that the total cost for the 
     planning, design, construction, and installation of equipment 
     for the renovation of wedges 2 through 5 of the Pentagon 
     Reservation, cumulatively, will not exceed four times the 
     total cost for the planning, design, construction, and 
     installation of equipment for the renovation of wedge 1.
       [(b) Annual Adjustment.--For purposes of applying the 
     limitation in subsection (a), the Secretary shall adjust the 
     cost for the renovation of wedge 1 by any increase or 
     decrease in costs attributable to economic inflation, based 
     on the most recent economic assumptions issued by the Office 
     of Management and Budget for use in preparation of the budget 
     of the United States under section 1104 of title 31, United 
     States Code.
       [(c) Exclusion of Certain Costs.--For purposes of 
     calculating the limitation in subsection (a), the total cost 
     for wedges 2 through 5 shall not include--
       [(1) any repair or reconstruction cost incurred as a result 
     of the terrorist attack on the Pentagon that occurred on 
     September 11, 2001;
       [(2) any increase in costs for wedges 2 through 5 
     attributable to compliance with new requirements of Federal, 
     State, or local laws; and
       [(3) any increase in costs attributable to additional 
     security requirements that the Secretary of Defense considers 
     essential to provide a safe and secure working environment.
       [(d) Certification Cost Reports.--As part of the annual 
     certification under subsection (a), the Secretary shall 
     report the projected cost (as of the time of the 
     certification) for--
       [(1) the renovation of each wedge, including the amount 
     adjusted or otherwise excluded for such wedge under the 
     authority of

[[Page 15457]]

     paragraphs (2) and (3) of subsection (c) for the period 
     covered by the certification; and
       [(2) the repair and reconstruction of wedges 1 and 2 in 
     response to the terrorist attack on the Pentagon that 
     occurred on September 11, 2001.
       [(e) Duration of Certification Requirement.--The 
     requirement to make an annual certification under subsection 
     (a) shall apply until the Secretary certifies to Congress 
     that the renovation of the Pentagon Reservation is completed.
       [Sec. 8057. Notwithstanding any other provision of law, 
     that not more than 35 percent of funds provided in this Act 
     for environmental remediation may be obligated under 
     indefinite delivery/indefinite quantity contracts with a 
     total contract value of $130,000,000 or higher.
       [Sec. 8058. (a) None of the funds available to the 
     Department of Defense for any fiscal year for drug 
     interdiction or counter-drug activities may be transferred to 
     any other department or agency of the United States except as 
     specifically provided in an appropriations law.
       [(b) None of the funds available to the Central 
     Intelligence Agency for any fiscal year for drug interdiction 
     and counter-drug activities may be transferred to any other 
     department or agency of the United States except as 
     specifically provided in an appropriations law.

                          [(transfer of funds)

       [Sec. 8059. Appropriations available in this Act under the 
     heading ``Operation and Maintenance, Defense-Wide'' for 
     increasing energy and water efficiency in Federal buildings 
     may, during their period of availability, be transferred to 
     other appropriations or funds of the Department of Defense 
     for projects related to increasing energy and water 
     efficiency, to be merged with and to be available for the 
     same general purposes, and for the same time period, as the 
     appropriation or fund to which transferred.
       [Sec. 8060. None of the funds appropriated by this Act may 
     be used for the procurement of ball and roller bearings other 
     than those produced by a domestic source and of domestic 
     origin: Provided, That the Secretary of the military 
     department responsible for such procurement may waive this 
     restriction on a case-by-case basis by certifying in writing 
     to the Committees on Appropriations of the House of 
     Representatives and the Senate, that adequate domestic 
     supplies are not available to meet Department of Defense 
     requirements on a timely basis and that such an acquisition 
     must be made in order to acquire capability for national 
     security purposes: Provided further, That this restriction 
     shall not apply to the purchase of ``commercial items'', as 
     defined by section 4(12) of the Office of Federal Procurement 
     Policy Act, except that the restriction shall apply to ball 
     or roller bearings purchased as end items.
       [Sec. 8061. Notwithstanding any other provision of law, 
     funds available to the Department of Defense shall be made 
     available to provide transportation of medical supplies and 
     equipment, on a nonreimbursable basis, to American Samoa, and 
     funds available to the Department of Defense shall be made 
     available to provide transportation of medical supplies and 
     equipment, on a nonreimbursable basis, to the Indian Health 
     Service when it is in conjunction with a civil-military 
     project.
       [Sec. 8062. None of the funds in this Act may be used to 
     purchase any supercomputer which is not manufactured in the 
     United States, unless the Secretary of Defense certifies to 
     the congressional defense committees that such an acquisition 
     must be made in order to acquire capability for national 
     security purposes that is not available from United States 
     manufacturers.
       [Sec. 8063. Notwithstanding any other provision of law, the 
     Naval shipyards of the United States shall be eligible to 
     participate in any manufacturing extension program financed 
     by funds appropriated in this or any other Act.
       [Sec. 8064. Notwithstanding any other provision of law, 
     each contract awarded by the Department of Defense during the 
     current fiscal year for construction or service performed in 
     whole or in part in a State (as defined in section 381(d) of 
     title 10, United States Code) which is not contiguous with 
     another State and has an unemployment rate in excess of the 
     national average rate of unemployment as determined by the 
     Secretary of Labor, shall include a provision requiring the 
     contractor to employ, for the purpose of performing that 
     portion of the contract in such State that is not contiguous 
     with another State, individuals who are residents of such 
     State and who, in the case of any craft or trade, possess or 
     would be able to acquire promptly the necessary skills: 
     Provided, That the Secretary of Defense may waive the 
     requirements of this section, on a case-by-case basis, in the 
     interest of national security.
       [Sec. 8065. None of the funds made available in this or any 
     other Act may be used to pay the salary of any officer or 
     employee of the Department of Defense who approves or 
     implements the transfer of administrative responsibilities or 
     budgetary resources of any program, project, or activity 
     financed by this Act to the jurisdiction of another Federal 
     agency not financed by this Act without the express 
     authorization of Congress: Provided, That this limitation 
     shall not apply to transfers of funds expressly provided for 
     in Defense Appropriations Acts, or provisions of Acts 
     providing supplemental appropriations for the Department of 
     Defense.
       [Sec. 8066. (a) Limitation on Transfer of Defense Articles 
     and Services.--Notwithstanding any other provision of law, 
     none of the funds available to the Department of Defense for 
     the current fiscal year may be obligated or expended to 
     transfer to another nation or an international organization 
     any defense articles or services (other than intelligence 
     services) for use in the activities described in subsection 
     (b) unless the congressional defense committees, the 
     Committee on International Relations of the House of 
     Representatives, and the Committee on Foreign Relations of 
     the Senate are notified 15 days in advance of such transfer.
       [(b) Covered Activities.--This section applies to--
       [(1) any international peacekeeping or peace-enforcement 
     operation under the authority of chapter VI or chapter VII of 
     the United Nations Charter under the authority of a United 
     Nations Security Council resolution; and
       [(2) any other international peacekeeping, peace-
     enforcement, or humanitarian assistance operation.
       [(c) Required Notice.--A notice under subsection (a) shall 
     include the following:
       [(1) A description of the equipment, supplies, or services 
     to be transferred.
       [(2) A statement of the value of the equipment, supplies, 
     or services to be transferred.
       [(3) In the case of a proposed transfer of equipment or 
     supplies--
       [(A) a statement of whether the inventory requirements of 
     all elements of the Armed Forces (including the reserve 
     components) for the type of equipment or supplies to be 
     transferred have been met; and
       [(B) a statement of whether the items proposed to be 
     transferred will have to be replaced and, if so, how the 
     President proposes to provide funds for such replacement.
       [Sec. 8067. To the extent authorized by subchapter VI of 
     chapter 148 of title 10, United States Code, the Secretary of 
     Defense may issue loan guarantees in support of United States 
     defense exports not otherwise provided for: Provided, That 
     the total contingent liability of the United States for 
     guarantees issued under the authority of this section may not 
     exceed $15,000,000,000: Provided further, That the exposure 
     fees charged and collected by the Secretary for each 
     guarantee shall be paid by the country involved and shall not 
     be financed as part of a loan guaranteed by the United 
     States: Provided further, That the Secretary shall provide 
     quarterly reports to the Committees on Appropriations, Armed 
     Services, and Foreign Relations of the Senate and the 
     Committees on Appropriations, Armed Services, and 
     International Relations in the House of Representatives on 
     the implementation of this program: Provided further, That 
     amounts charged for administrative fees and deposited to the 
     special account provided for under section 2540c(d) of title 
     10, shall be available for paying the costs of administrative 
     expenses of the Department of Defense that are attributable 
     to the loan guarantee program under subchapter VI of chapter 
     148 of title 10, United States Code.
       [Sec. 8068. None of the funds available to the Department 
     of Defense under this Act shall be obligated or expended to 
     pay a contractor under a contract with the Department of 
     Defense for costs of any amount paid by the contractor to an 
     employee when--
       [(1) such costs are for a bonus or otherwise in excess of 
     the normal salary paid by the contractor to the employee; and
       [(2) such bonus is part of restructuring costs associated 
     with a business combination.
       [Sec. 8069. (a) None of the funds appropriated or otherwise 
     made available in this Act may be used to transport or 
     provide for the transportation of chemical munitions or 
     agents to the Johnston Atoll for the purpose of storing or 
     demilitarizing such munitions or agents.
       [(b) The prohibition in subsection (a) shall not apply to 
     any obsolete World War II chemical munition or agent of the 
     United States found in the World War II Pacific Theater of 
     Operations.
       [(c) The President may suspend the application of 
     subsection (a) during a period of war in which the United 
     States is a party.

                     [(including transfer of funds)

       [Sec. 8070. During the current fiscal year, no more than 
     $30,000,000 of appropriations made in this Act under the 
     heading ``Operation and Maintenance, Defense-Wide'' may be 
     transferred to appropriations available for the pay of 
     military personnel, to be merged with, and to be available 
     for the same time period as the appropriations to which 
     transferred, to be used in support of such personnel in 
     connection with support and services for eligible 
     organizations and activities outside the Department of 
     Defense pursuant to section 2012 of title 10, United States 
     Code.
       [Sec. 8071. During the current fiscal year, in the case of 
     an appropriation account of the Department of Defense for 
     which the period of availability for obligation has expired 
     or which has closed under the provisions of

[[Page 15458]]

     section 1552 of title 31, United States Code, and which has a 
     negative unliquidated or unexpended balance, an obligation or 
     an adjustment of an obligation may be charged to any current 
     appropriation account for the same purpose as the expired or 
     closed account if--
       [(1) the obligation would have been properly chargeable 
     (except as to amount) to the expired or closed account before 
     the end of the period of availability or closing of that 
     account;
       [(2) the obligation is not otherwise properly chargeable to 
     any current appropriation account of the Department of 
     Defense; and
       [(3) in the case of an expired account, the obligation is 
     not chargeable to a current appropriation of the Department 
     of Defense under the provisions of section 1405(b)(8) of the 
     National Defense Authorization Act for Fiscal Year 1991, 
     Public Law 101-510, as amended (31 U.S.C. 1551 note): 
     Provided, That in the case of an expired account, if 
     subsequent review or investigation discloses that there was 
     not in fact a negative unliquidated or unexpended balance in 
     the account, any charge to a current account under the 
     authority of this section shall be reversed and recorded 
     against the expired account: Provided further, That the total 
     amount charged to a current appropriation under this section 
     may not exceed an amount equal to 1 percent of the total 
     appropriation for that account.
       [Sec. 8072. Funds appropriated in title II of this Act and 
     for the Defense Health Program in title VI of this Act for 
     supervision and administration costs for facilities 
     maintenance and repair, minor construction, or design 
     projects may be obligated at the time the reimbursable order 
     is accepted by the performing activity: Provided, That for 
     the purpose of this section, supervision and administration 
     costs includes all in-house Government cost.
       [Sec. 8073. During the current fiscal year, the Secretary 
     of Defense may waive reimbursement of the cost of 
     conferences, seminars, courses of instruction, or similar 
     educational activities of the Asia-Pacific Center for 
     Security Studies for military officers and civilian officials 
     of foreign nations if the Secretary determines that 
     attendance by such personnel, without reimbursement, is in 
     the national security interest of the United States: 
     Provided, That costs for which reimbursement is waived 
     pursuant to this section shall be paid from appropriations 
     available for the Asia-Pacific Center.
       [Sec. 8074. (a) Notwithstanding any other provision of law, 
     the Chief of the National Guard Bureau may permit the use of 
     equipment of the National Guard Distance Learning Project by 
     any person or entity on a space-available, reimbursable 
     basis. The Chief of the National Guard Bureau shall establish 
     the amount of reimbursement for such use on a case-by-case 
     basis.
       [(b) Amounts collected under subsection (a) shall be 
     credited to funds available for the National Guard Distance 
     Learning Project and be available to defray the costs 
     associated with the use of equipment of the project under 
     that subsection. Such funds shall be available for such 
     purposes without fiscal year limitation.
       [Sec. 8075. Using funds available by this Act or any other 
     Act, the Secretary of the Air Force, pursuant to a 
     determination under section 2690 of title 10, United States 
     Code, may implement cost-effective agreements for required 
     heating facility modernization in the Kaiserslautern Military 
     Community in the Federal Republic of Germany: Provided, That 
     in the City of Kaiserslautern such agreements will include 
     the use of United States anthracite as the base load energy 
     for municipal district heat to the United States Defense 
     installations: Provided further, That at Landstuhl Army 
     Regional Medical Center and Ramstein Air Base, furnished heat 
     may be obtained from private, regional or municipal services, 
     if provisions are included for the consideration of United 
     States coal as an energy source.
       [Sec. 8076. None of the funds appropriated in title IV of 
     this Act may be used to procure end-items for delivery to 
     military forces for operational training, operational use or 
     inventory requirements: Provided, That this restriction does 
     not apply to end-items used in development, prototyping, and 
     test activities preceding and leading to acceptance for 
     operational use: Provided further, That this restriction does 
     not apply to programs funded within the National Foreign 
     Intelligence Program: Provided further, That the Secretary of 
     Defense may waive this restriction on a case-by-case basis by 
     certifying in writing to the Committees on Appropriations of 
     the House of Representatives and the Senate that it is in the 
     national security interest to do so.
       [Sec. 8077. None of the funds made available in this Act 
     may be used to approve or license the sale of the F-22 
     advanced tactical fighter to any foreign government.
       [Sec. 8078. (a) The Secretary of Defense may, on a case-by-
     case basis, waive with respect to a foreign country each 
     limitation on the procurement of defense items from foreign 
     sources provided in law if the Secretary determines that the 
     application of the limitation with respect to that country 
     would invalidate cooperative programs entered into between 
     the Department of Defense and the foreign country, or would 
     invalidate reciprocal trade agreements for the procurement of 
     defense items entered into under section 2531 of title 10, 
     United States Code, and the country does not discriminate 
     against the same or similar defense items produced in the 
     United States for that country.
       [(b) Subsection (a) applies with respect to--
       [(1) contracts and subcontracts entered into on or after 
     the date of the enactment of this Act; and
       [(2) options for the procurement of items that are 
     exercised after such date under contracts that are entered 
     into before such date if the option prices are adjusted for 
     any reason other than the application of a waiver granted 
     under subsection (a).
       [(c) Subsection (a) does not apply to a limitation 
     regarding construction of public vessels, ball and roller 
     bearings, food, and clothing or textile materials as defined 
     by section 11 (chapters 50-65) of the Harmonized Tariff 
     Schedule and products classified under headings 4010, 4202, 
     4203, 6401 through 6406, 6505, 7019, 7218 through 7229, 
     7304.41 through 7304.49, 7306.40, 7502 through 7508, 8105, 
     8108, 8109, 8211, 8215, and 9404.
       [Sec. 8079. Funds made available to the Civil Air Patrol in 
     this Act under the heading ``Drug Interdiction and Counter-
     Drug Activities, Defense'' may be used for the Civil Air 
     Patrol Corporation's counterdrug program, including its 
     demand reduction program involving youth programs, as well as 
     operational and training drug reconnaissance missions for 
     Federal, State, and local government agencies; and for 
     equipment needed for mission support or performance: 
     Provided, That the Department of the Air Force should waive 
     reimbursement from the Federal, State, and local government 
     agencies for the use of these funds.
       [Sec. 8080. (a) Prohibition.--None of the funds made 
     available by this Act may be used to support any training 
     program involving a unit of the security forces of a foreign 
     country if the Secretary of Defense has received credible 
     information from the Department of State that the unit has 
     committed a gross violation of human rights, unless all 
     necessary corrective steps have been taken.
       [(b) Monitoring.--The Secretary of Defense, in consultation 
     with the Secretary of State, shall ensure that prior to a 
     decision to conduct any training program referred to in 
     subsection (a), full consideration is given to all credible 
     information available to the Department of State relating to 
     human rights violations by foreign security forces.
       [(c) Waiver.--The Secretary of Defense, after consultation 
     with the Secretary of State, may waive the prohibition in 
     subsection (a) if he determines that such waiver is required 
     by extraordinary circumstances.
       [(d) Report.--Not more than 15 days after the exercise of 
     any waiver under subsection (c), the Secretary of Defense 
     shall submit a report to the congressional defense committees 
     describing the extraordinary circumstances, the purpose and 
     duration of the training program, the United States forces 
     and the foreign security forces involved in the training 
     program, and the information relating to human rights 
     violations that necessitates the waiver.
       [Sec. 8081. The Secretary of Defense, in coordination with 
     the Secretary of Health and Human Services, may carry out a 
     program to distribute surplus dental equipment of the 
     Department of Defense, at no cost to the Department of 
     Defense, to Indian health service facilities and to 
     federally-qualified health centers (within the meaning of 
     section 1905(l)(2)(B) of the Social Security Act (42 U.S.C. 
     1396d(l)(2)(B))).
       [Sec. 8082. The total amount appropriated in this Act is 
     hereby reduced by $615,000,000 to reflect savings from 
     favorable foreign currency fluctuations, to be derived as 
     follows:
       [``Military Personnel, Army'', $154,000,000;
       [``Military Personnel, Navy'', $11,000,000;
       [``Military Personnel, Marine Corps'', $21,000,000;
       [``Military Personnel, Air Force'', $49,000,000;
       [``Operation and Maintenance, Army'', $189,000,000;
       [``Operation and Maintenance, Navy'', $40,000,000;
       [``Operation and Maintenance, Marine Corps'', $3,000,000;
       [``Operation and Maintenance, Air Force'', $80,000,000; and
       [``Operation and Maintenance, Defense-Wide'', $68,000,000.
       [Sec. 8083. None of the funds appropriated or made 
     available in this Act to the Department of the Navy shall be 
     used to develop, lease or procure the T-AKE class of ships 
     unless the main propulsion diesel engines and propulsors are 
     manufactured in the United States by a domestically operated 
     entity: Provided, That the Secretary of Defense may waive 
     this restriction on a case-by-case basis by certifying in 
     writing to the Committees on Appropriations of the House of 
     Representatives and the Senate that adequate domestic 
     supplies are not available to meet Department of Defense 
     requirements on a timely basis and that such an acquisition 
     must be made in order to acquire capability for national 
     security purposes or there exists a significant cost or 
     quality difference.
       [Sec. 8084. None of the funds appropriated or otherwise 
     made available by this or other Department of Defense 
     Appropriations Acts may be obligated or expended for the 
     purpose of performing repairs or maintenance to

[[Page 15459]]

     military family housing units of the Department of Defense, 
     including areas in such military family housing units that 
     may be used for the purpose of conducting official Department 
     of Defense business.
       [Sec. 8085. Notwithstanding any other provision of law, 
     funds appropriated in this Act under the heading ``Research, 
     Development, Test and Evaluation, Defense-Wide'' for any 
     advanced concept technology demonstration project may only be 
     obligated 30 days after a report, including a description of 
     the project and its estimated annual and total cost, has been 
     provided in writing to the congressional defense committees: 
     Provided, That the Secretary of Defense may waive this 
     restriction on a case-by-case basis by certifying to the 
     congressional defense committees that it is in the national 
     interest to do so.
       [Sec. 8086. Notwithstanding any other provision of law, for 
     the purpose of establishing all Department of Defense 
     policies governing the provision of care provided by and 
     financed under the military health care system's case 
     management program under 10 U.S.C. 1079(a)(17), the term 
     ``custodial care'' shall be defined as care designed 
     essentially to assist an individual in meeting the activities 
     of daily living and which does not require the supervision of 
     trained medical, nursing, paramedical or other specially 
     trained individuals: Provided, That the case management 
     program shall provide that members and retired members of the 
     military services, and their dependents and survivors, have 
     access to all medically necessary health care through the 
     health care delivery system of the military services 
     regardless of the health care status of the person seeking 
     the health care: Provided further, That the case management 
     program shall be the primary obligor for payment of medically 
     necessary services and shall not be considered as secondarily 
     liable to title XIX of the Social Security Act, other welfare 
     programs or charity based care.
       [Sec. 8087. During the current fiscal year, refunds 
     attributable to the use of the Government travel card, 
     refunds attributable to the use of the Government Purchase 
     Card and refunds attributable to official Government travel 
     arranged by Government Contracted Travel Management Centers 
     may be credited to operation and maintenance accounts of the 
     Department of Defense which are current when the refunds are 
     received.
       [Sec. 8088. (a) Registering Financial Management 
     Information Technology Systems With DOD Chief Information 
     Officer.--None of the funds appropriated in this Act may be 
     used for a mission critical or mission essential financial 
     management information technology system (including a system 
     funded by the defense working capital fund) that is not 
     registered with the Chief Information Officer of the 
     Department of Defense. A system shall be considered to be 
     registered with that officer upon the furnishing to that 
     officer of notice of the system, together with such 
     information concerning the system as the Secretary of Defense 
     may prescribe. A financial management information technology 
     system shall be considered a mission critical or mission 
     essential information technology system as defined by the 
     Under Secretary of Defense (Comptroller).
       [(b) Certifications as to Compliance With Financial 
     Management Modernization Plan.--(1) During the current fiscal 
     year, a financial management major automated information 
     system may not receive Milestone A approval, Milestone B 
     approval, or full rate production, or their equivalent, 
     within the Department of Defense until the Under Secretary of 
     Defense (Comptroller) certifies, with respect to that 
     milestone, that the system is being developed and managed in 
     accordance with the Department's Financial Management 
     Modernization Plan. The Under Secretary of Defense 
     (Comptroller) may require additional certifications, as 
     appropriate, with respect to any such system.
       [(2) The Chief Information Officer shall provide the 
     congressional defense committees timely notification of 
     certifications under paragraph (1).
       [(c) Certifications as to Compliance With Clinger-Cohen 
     Act.--(1) During the current fiscal year, a major automated 
     information system may not receive Milestone A approval, 
     Milestone B approval, or full rate production approval, or 
     their equivalent, within the Department of Defense until the 
     Chief Information Officer certifies, with respect to that 
     milestone, that the system is being developed in accordance 
     with the Clinger-Cohen Act of 1996 (40 U.S.C. 1401 et seq.). 
     The Chief Information Officer may require additional 
     certifications, as appropriate, with respect to any such 
     system.
       [(2) The Chief Information Officer shall provide the 
     congressional defense committees timely notification of 
     certifications under paragraph (1). Each such notification 
     shall include, at a minimum, the funding baseline and 
     milestone schedule for each system covered by such a 
     certification and confirmation that the following steps have 
     been taken with respect to the system:
       [(A) Business process reengineering.
       [(B) An analysis of alternatives.
       [(C) An economic analysis that includes a calculation of 
     the return on investment.
       [(D) Performance measures.
       [(E) An information assurance strategy consistent with the 
     Department's Global Information Grid.
       [(d) Definitions.--For purposes of this section:
       [(1) The term ``Chief Information Officer'' means the 
     senior official of the Department of Defense designated by 
     the Secretary of Defense pursuant to section 3506 of title 
     44, United States Code.
       [(2) The term ``information technology system'' has the 
     meaning given the term ``information technology'' in section 
     5002 of the Clinger-Cohen Act of 1996 (40 U.S.C. 1401).
       [(3) The term ``major automated information system'' has 
     the meaning given that term in Department of Defense 
     Directive 5000.1.
       [Sec. 8089. During the current fiscal year, none of the 
     funds available to the Department of Defense may be used to 
     provide support to another department or agency of the United 
     States if such department or agency is more than 90 days in 
     arrears in making payment to the Department of Defense for 
     goods or services previously provided to such department or 
     agency on a reimbursable basis: Provided, That this 
     restriction shall not apply if the department is authorized 
     by law to provide support to such department or agency on a 
     nonreimbursable basis, and is providing the requested support 
     pursuant to such authority: Provided further, That the 
     Secretary of Defense may waive this restriction on a case-by-
     case basis by certifying in writing to the Committees on 
     Appropriations of the House of Representatives and the Senate 
     that it is in the national security interest to do so.
       [Sec. 8090. None of the funds provided in this Act may be 
     used to transfer to any nongovernmental entity ammunition 
     held by the Department of Defense that has a center-fire 
     cartridge and a United States military nomenclature 
     designation of ``armor penetrator'', ``armor piercing (AP)'', 
     ``armor piercing incendiary (API)'', or ``armor-piercing 
     incendiary-tracer (API-T)'', except to an entity performing 
     demilitarization services for the Department of Defense under 
     a contract that requires the entity to demonstrate to the 
     satisfaction of the Department of Defense that armor piercing 
     projectiles are either: (1) rendered incapable of reuse by 
     the demilitarization process; or (2) used to manufacture 
     ammunition pursuant to a contract with the Department of 
     Defense or the manufacture of ammunition for export pursuant 
     to a License for Permanent Export of Unclassified Military 
     Articles issued by the Department of State.
       [Sec. 8091. Notwithstanding any other provision of law, the 
     Chief of the National Guard Bureau, or his designee, may 
     waive payment of all or part of the consideration that 
     otherwise would be required under 10 U.S.C. 2667, in the case 
     of a lease of personal property for a period not in excess of 
     1 year to any organization specified in 32 U.S.C. 508(d), or 
     any other youth, social, or fraternal non-profit organization 
     as may be approved by the Chief of the National Guard Bureau, 
     or his designee, on a case-by-case basis.
       [Sec. 8092. None of the funds appropriated by this Act 
     shall be used for the support of any nonappropriated funds 
     activity of the Department of Defense that procures malt 
     beverages and wine with nonappropriated funds for resale 
     (including such alcoholic beverages sold by the drink) on a 
     military installation located in the United States unless 
     such malt beverages and wine are procured within that State, 
     or in the case of the District of Columbia, within the 
     District of Columbia, in which the military installation is 
     located: Provided, That in a case in which the military 
     installation is located in more than one State, purchases may 
     be made in any State in which the installation is located: 
     Provided further, That such local procurement requirements 
     for malt beverages and wine shall apply to all alcoholic 
     beverages only for military installations in States which are 
     not contiguous with another State: Provided further, That 
     alcoholic beverages other than wine and malt beverages, in 
     contiguous States and the District of Columbia shall be 
     procured from the most competitive source, price and other 
     factors considered.
       [Sec. 8093. During the current fiscal year, under 
     regulations prescribed by the Secretary of Defense, the 
     Center of Excellence for Disaster Management and Humanitarian 
     Assistance may also pay, or authorize payment for, the 
     expenses of providing or facilitating education and training 
     for appropriate military and civilian personnel of foreign 
     countries in disaster management, peace operations, and 
     humanitarian assistance.
       [Sec. 8094. (a) The Department of Defense is authorized to 
     enter into agreements with the Veterans Administration and 
     federally-funded health agencies providing services to Native 
     Hawaiians for the purpose of establishing a partnership 
     similar to the Alaska Federal Health Care Partnership, in 
     order to maximize Federal resources in the provision of 
     health care services by federally-funded health agencies, 
     applying telemedicine technologies. For the purpose of this 
     partnership, Native Hawaiians shall have the same status as 
     other Native Americans who are eligible for the health care 
     services provided by the Indian Health Service.

[[Page 15460]]

       [(b) The Department of Defense is authorized to develop a 
     consultation policy, consistent with Executive Order No. 
     13084 (issued May 14, 1998), with Native Hawaiians for the 
     purpose of assuring maximum Native Hawaiian participation in 
     the direction and administration of governmental services so 
     as to render those services more responsive to the needs of 
     the Native Hawaiian community.
       [(c) For purposes of this section, the term ``Native 
     Hawaiian'' means any individual who is a descendant of the 
     aboriginal people who, prior to 1778, occupied and exercised 
     sovereignty in the area that now comprises the State of 
     Hawaii.
       [Sec. 8095. Of the amounts appropriated in this Act for the 
     Arrow missile defense program under the heading ``Research, 
     Development, Test and Evaluation, Defense-Wide'', 
     $131,700,000 shall be made available for the purpose of 
     continuing the Arrow System Improvement Program (ASIP), 
     continuing ballistic missile defense interoperability with 
     Israel, and continuing development of an Arrow production 
     capability in the United States.
       [Sec. 8096. Funds available to the Department of Defense 
     for the Global Positioning System during the current fiscal 
     year may be used to fund civil requirements associated with 
     the satellite and ground control segments of such system's 
     modernization program.

                     [(including transfer of funds)

       [Sec. 8097. Of the amounts appropriated in this Act under 
     the heading, ``Operation and Maintenance, Defense-Wide'', 
     $68,000,000 shall remain available until expended: Provided, 
     That notwithstanding any other provision of law, the 
     Secretary of Defense is authorized to transfer such funds to 
     other activities of the Federal Government.
       [Sec. 8098. Section 8106 of the Department of Defense 
     Appropriations Act, 1997 (titles I through VIII of the matter 
     under subsection 101(b) of Public Law 104-208; 110 Stat. 
     3009-111; 10 U.S.C. 113 note) shall continue in effect to 
     apply to disbursements that are made by the Department of 
     Defense in fiscal year 2003.
       [Sec. 8099. In addition to amounts provided in this Act, 
     $2,000,000 is hereby appropriated for ``Defense Health 
     Program'', to remain available for obligation until expended: 
     Provided, That notwithstanding any other provision of law, 
     these funds shall be available only for a grant to the Fisher 
     House Foundation, Inc., only for the construction and 
     furnishing of additional Fisher Houses to meet the needs of 
     military family members when confronted with the illness or 
     hospitalization of an eligible military beneficiary.
       [Sec. 8100. The total amount appropriated in Title II of 
     this Act is hereby reduced by $51,000,000, to reflect savings 
     attributable to improvements in the management of advisory 
     and assistance services contracted by the military 
     departments, to be derived as follows:
       [``Operation and Maintenance, Army'', $11,000,000;
       [``Operation and Maintenance, Navy'', $10,000,000; and
       [``Operation and Maintenance, Air Force'', $30,000,000.

                     [(including transfer of funds)

       [Sec. 8101. Of the amounts appropriated in this Act under 
     the heading ``Shipbuilding and Conversion, Navy,'' 
     $644,899,000 shall be available until September 30, 2003, to 
     fund prior year shipbuilding cost increases: Provided, That 
     upon enactment of this Act, the Secretary of Defense shall 
     transfer such funds to the following appropriations in the 
     amount specified: Provided further, That the amounts 
     transferred shall be merged with and shall be available for 
     the same purposes as the appropriations to which transferred:
       [To:
       [Under the heading, ``Shipbuilding and Conversion, Navy, 
     1996/2003'':
       [LPD-17 Amphibious Transport Dock Ship Program, 
     $232,681,000;
       [Under the heading, ``Shipbuilding and Conversion, Navy, 
     1998/2003'':
       [DDG-51 Destroyer Program, $47,400,000;
       [New SSN, $156,682,000;
       [Under the heading, ``Shipbuilding and Conversion, Navy, 
     1999/2003'':
       [LPD-17 Amphibious Transport Dock Ship Program, 
     $10,000,000;
       [DDG-51 Destroyer Program, $56,736,000;
       [New SSN, $120,000,000;
       [Under the heading, ``Shipbuilding and Conversion, Navy, 
     2000/2003'':
       [DDG-51 Destroyer Program, $21,200,000;
       [Under the heading, ``Shipbuilding and Conversion, Navy, 
     2001/2008'':
       [DDG-51 Destroyer Program, $200,000.
       [Sec. 8102. The Secretary of the Navy may settle, or 
     compromise, and pay any and all admiralty claims under 10 
     U.S.C. 7622 arising out of the collision involving the U.S.S. 
     GREENEVILLE and the EHIME MARU, in any amount and without 
     regard to the monetary limitations in subsections (a) and (b) 
     of that section: Provided, That such payments shall be made 
     from funds available to the Department of the Navy for 
     operation and maintenance.
       [Sec. 8103. The total amount appropriated in Title II of 
     this Act is hereby reduced by $97,000,000, to reflect savings 
     attributable to improved supervision in determining 
     appropriate purchases to be made using the Government 
     purchase card, to be derived as follows:
       [``Operation and Maintenance, Army'', $24,000,000;
       [``Operation and Maintenance, Navy'', $29,000,000;
       [``Operation and Maintenance, Marine Corps'', $3,000,000;
       [``Operation and Maintenance, Air Force'', $27,000,000; and
       [``Operation and Maintenance, Defense-Wide'', $14,000,000.
       [Sec. 8104. Funds provided for the current fiscal year or 
     hereafter for Operation and Maintenance for the Armed Forces 
     may be used, notwithstanding any other provision of law, for 
     the purchase of ultralightweight camouflage net systems as 
     unit spares.


                     [(including transfer of funds)

       [Sec. 8105. During the current fiscal year and hereafter, 
     notwithstanding any other provision of law, the Secretary of 
     Defense may transfer not more than $20,000,000 of unobligated 
     balances remaining in a Research, Development, Test and 
     Evaluation, Army appropriation account during the last fiscal 
     year before the account closes under section 1552 of title 31 
     United States Code, to a current Research, Development, Test 
     and Evaluation, Army appropriation account to be used only 
     for the continuation of the Venture Capital Fund 
     demonstration, as originally approved in Section 8150 of 
     Public Law 107-117, to pursue high payoff technology and 
     innovations in science and technology: Provided, That any 
     such transfer shall be made not later than July 31 of each 
     year: Provided further, That funds so transferred shall be 
     merged with and shall be available for the same purposes and 
     for the same time period as the appropriation to which 
     transferred: Provided further, That the transfer authority 
     provided in this section is in addition to any other transfer 
     authority available to the Department of Defense: Provided 
     further, That, no funds for programs, projects, or activities 
     designated as special congressional interest items in DD Form 
     1414 shall be eligible for transfer under the authority of 
     this section: Provided further, That any unobligated balances 
     transferred under this authority may be restored to the 
     original appropriation if required to cover unexpected upward 
     adjustments: Provided further, That the Secretary of the Army 
     shall provide an annual report to the House and Senate 
     Appropriations Committees no later than 15 days prior to the 
     annual transfer of funds under authority of this section 
     describing the sources and amounts of funds proposed to be 
     transfered, summarizing the projects funded under this 
     demonstration program (including the name and location of 
     project sponsors) to date, a description of the major program 
     accomplishments to date, and an overall assessment of the 
     benefits of this demonstration program compared to the goals 
     expressed in the legislative history accompanying Section 
     8150 of Public Law 107-117.
       [Sec. 8106. Notwithstanding any other provision of law or 
     regulation, the Secretary of Defense may exercise the 
     provisions of 38 U.S.C. 7403(g) for occupations listed in 38 
     U.S.C. 7403(a)(2) as well as the following:
       [Pharmacists, Audiologists, and Dental Hygienists.
       [(A) The requirements of 38 U.S.C. 7403(g)(1)(A) shall 
     apply.
       [(B) The limitations of 38 U.S.C. 7403(g)(1)(B) shall not 
     apply.
       [Sec. 8107. Funds appropriated by this Act, or made 
     available by the transfer of funds in this Act, for 
     intelligence activities are deemed to be specifically 
     authorized by the Congress for purposes of section 504 of the 
     National Security Act of 1947 (50 U.S.C. 414) during fiscal 
     year 2003 until the enactment of the Intelligence 
     Authorization Act for fiscal year 2003.
       [Sec. 8108. Section 1111(c) of title 10 is amended in the 
     first sentence by striking ``may'' after the Secretary of 
     Defense and inserting ``shall'' after the Secretary of 
     Defense.


                     [(including transfer of funds)

       [Sec. 8109. During the current fiscal year, amounts in or 
     credited to the Defense Cooperation Account under 10 U.S.C. 
     2608(b) are hereby appropriated and shall be available for 
     obligation and expenditure consistent with the purposes for 
     which such amounts were contributed and accepted for transfer 
     by the Secretary of Defense to such appropriations or funds 
     of the Department of Defense as the Secretary shall 
     determine, to be merged with and to be available for the same 
     purposes and for the same time period as the appropriation or 
     fund to which transferred: Provided, That the Secretary shall 
     provide written notification to the congressional defense 
     committees 30 days prior to such transfer: Provided further, 
     That the Secretary of Defense shall report to the Congress 
     quarterly all transfers made pursuant to this authority: 
     Provided further, That this transfer authority is in addition 
     to any other transfer authority available to the Department 
     of Defense.
       [Sec. 8110. Notwithstanding section 1116(c) of title 10, 
     United States Code, payments into the Department of Defense 
     Medicare-Eligible Retiree Health Care Fund for fiscal year 
     2003 under section 1116(a) of such title shall be made from 
     funds available in this Act for the pay of military 
     personnel.

[[Page 15461]]

       [Sec. 8111. None of the funds in this Act may be used to 
     initiate a new start program without prior notification to 
     the Office of Secretary of Defense and the congressional 
     defense committees.
       [Sec. 8112. The amount appropriated in title II of this Act 
     is hereby reduced by $470,000,000 to reflect Working Capital 
     Fund cash balance and rate stabilization adjustments, to be 
     derived as follows:
       [``Operation and Maintenance, Navy'', $440,000,000; and
       [``Operation and Maintenance, Air Force'', $30,000,000.
       [Sec. 8113. Notwithstanding any other provision in this 
     Act, the total amount appropriated in this Act is hereby 
     reduced by $475,000,000, to reduce excess funded carryover, 
     to be derived as follows:
       [``Operation and Maintenance, Army'', $48,000,000;
       [``Operation and Maintenance, Navy'', $285,000,000;
       [``Operation and Maintenance, Marine Corps'', $8,000,000; 
     and
       [``Operation and Maintenance, Air Force'', $134,000,000.
       [Sec. 8114. Notwithstanding any other provision of law, 
     none of the funds appropriated or otherwise made available by 
     this or any other appropriations Acts may be obligated for 
     the purpose of transferring the Medical Free Electron Laser 
     (MFEL) Program from the Department of Defense to any other 
     Government agency.
       [Sec. 8115. (a) In addition to the amounts provided 
     elsewhere in this Act, the amount of $4,000,000 is hereby 
     appropriated to the Department of Defense for ``Operation and 
     Maintenance, Army National Guard''. Such amount shall be made 
     available to the Secretary of the Army only to make a grant 
     in the amount of $4,000,000 to the entity specified in 
     subsection (b) to facilitate access by veterans to 
     opportunities for skilled employment in the construction 
     industry.
       [(b) The entity referred to in subsection (a) is the Center 
     for Military Recruitment, Assessment and Veterans Employment, 
     a nonprofit labor-management co-operation committee provided 
     for by section 302(c)(9) of the Labor-Management Relations 
     Act, 1947 (29 U.S.C. 186(c)(9)), for the purposes set forth 
     in section 6(b) of the Labor Management Cooperation Act of 
     1978 (29 U.S.C. 175a note).
       [Sec. 8116. (a) During the current fiscal year, funds 
     available to the Secretary of a military department for 
     Operation and Maintenance may be used for the purposes stated 
     in subsection (b) to support chaplain-led programs to assist 
     members of the Armed Forces and their immediate family 
     members in building and maintaining a strong family 
     structure.
       [(b) The purposes referred to in subsection (a) are costs 
     of transportation, food, lodging, supplies, fees, and 
     training materials for members of the Armed Forces and their 
     family members while participating in such programs, 
     including participation at retreats and conferences.
       [Sec. 8117. (a) Commission on Adequacy of Armed Forces 
     Training Facilities.--The Secretary of Defense shall 
     establish an advisory committee under section 173 of title 
     10, United States Code, to assess the availability of 
     adequate training facilities for the Armed Forces in the 
     United States and overseas and the adverse impact of 
     residential and industrial encroachment, requirements of 
     environmental laws, and other factors on military training 
     and the coordination of military training among the United 
     States and its allies.
       [(b) Members.--The advisory committee shall be composed of 
     persons who are not active-duty members of the Armed Forces 
     or officers or employees of the Department of Defense.
       [(c) Report.--Not later than July 31, 2003, the advisory 
     committee shall submit to the Secretary of Defense and the 
     congressional defense committees a report containing the 
     results of the assessment and such recommendations as the 
     committee considers necessary.
       [(d) Funding.--Funds for the activities of the advisory 
     committee shall be provided from amounts appropriated for 
     operation and maintenance for Defense-Wide activities for 
     fiscal year 2003.
       [Sec. 8118. (a) Limitation on Additional NMCI Contract Work 
     Stations.--Notwithstanding section 814 of the Floyd D. Spence 
     National Defense Authorization Act for Fiscal Year 2001 (as 
     enacted into law by Public Law 106-398; 114 Stat. 1654A-215) 
     or any other provision of law, the total number of work 
     stations provided under the Navy-Marine Corps Intranet 
     contract (as defined in subsection (i) of such section 814) 
     may not exceed 160,000 work stations until the Under 
     Secretary of Defense for Acquisition, Technology, and 
     Logistics and the Chief Information Officer of the Department 
     of Defense certify to the congressional defense committees 
     that all of the conditions specified in subsection (b) have 
     been satisfied.
       [(b) Conditions.--The conditions referred to in subsection 
     (a) are the following:
       [(1) There is a full transition of not less than 20,000 
     work stations to the Navy-Marine Corps Intranet.
       [(2) Those work stations undergo operational test and 
     evaluation--
       [(A) to evaluate and demonstrate the ability of the 
     infrastructure and services of the Navy-Marine Corps Intranet 
     to support Department of the Navy operational, office, and 
     business functionality and processes; and
       [(B) to evaluate the effectiveness and suitability of the 
     Navy-Marine Corps Intranet to support accomplishment of Navy 
     and Marine Corps missions.
       [(3) The Director of Operational Test and Evaluation of the 
     Department of Defense completes an assessment of the 
     operational test and evaluation and provides the results of 
     the assessment and recommendations to the Under Secretary of 
     Defense for Acquisition, Technology, and Logistics and the 
     Chief Information Officer of the Department of Defense.
       [(4) The Under Secretary of Defense for Acquisition, 
     Technology, and Logistics and the Chief Information Officer 
     of the Department of Defense determine that the results of 
     the test and evaluation are acceptable.
       [Sec. 8119. None of the funds in this Act, excluding funds 
     provided for advance procurement of fiscal year 2004 
     aircraft, may be obligated for acquisition of more than 16 F-
     22 aircraft until the Under Secretary of Defense for 
     Acquisition, Technology, and Logistics has provided to the 
     congressional defense committees:
       [(a) A formal risk assessment which identifies and 
     characterizes the potential cost, technical, schedule or 
     other significant risks resulting from increasing the F-22 
     procurement quantities prior to the conclusion of Dedicated 
     Initial Operational Test and Evaluation (DIOT&E) of the 
     aircraft: Provided, That such risk assessment shall evaluate 
     based on the best available current information (1) the range 
     of potential additional program costs (compared to the 
     program costs assumed in the President's fiscal year 2003 
     budget) that could result from retrofit modifications to F-22 
     production aircraft that are placed under contract or 
     delivered to the government prior to the conclusion of DIOT&E 
     and (2) a cost-benefit analysis comparing, in terms of unit 
     cost and total program cost, the cost advantages of 
     increasing aircraft production at this time to the potential 
     cost of retrofitting production aircraft once DIOT&E has been 
     completed;
       [(b) Certification that any future retrofit costs to F-22 
     production aircraft, ordered or delivered prior to the 
     conclusion of DIOT&E, that result from changes required from 
     developmental or operational test and evaluation will not 
     increase the total F-22 program cost as estimated in the 
     President's fiscal year 2003 budget; and
       [(c) Certification that increasing the F-22 production 
     quantity for fiscal year 2003 beyond 16 airplanes involves 
     lower risk and lower total program cost than staying at that 
     quantity, or he submits a revised production plan, funding 
     plan and test schedule.


                     [(including transfer of funds)

       [Sec. 8120. Section 305(a) of the Emergency Supplemental 
     Act, 2002 (division B of Public Law 107-117; 115 Stat. 2300), 
     is amended by adding at the end the following new sentences: 
     ``From amounts transferred to the Pentagon Reservation 
     Maintenance Revolving Fund pursuant to the preceding 
     sentence, not to exceed $305,000,000 may be transferred to 
     the Defense Emergency Response Fund, but only in amounts 
     necessary to reimburse that fund (and the category of that 
     fund designated as `Pentagon Repair/Upgrade') for expenses 
     charged to that fund (and that category) between September 
     11, 2001, and January 10, 2002, for reconstruction costs of 
     the Pentagon Reservation. Funds transferred to the Defense 
     Emergency Response Fund pursuant to this section shall be 
     available only for reconstruction, recovery, force 
     protection, or security enhancements for the Pentagon 
     Reservation.''.
       [Sec. 8121. (a) Termination of Crusader Artillery System.--
     Consistent with the budget amendment to the fiscal year 2003 
     President's Budget submitted to Congress on May 29, 2002, for 
     termination of the Crusader Artillery System, the Department 
     of Defense is authorized to terminate the Crusader program. 
     Such termination shall be carried out in a prudent and 
     deliberate manner in order to provide for the orderly 
     termination of the program.
       [(b) Acceleration of Other Indirect Fire Systems.--Of the 
     funds appropriated or otherwise made available in this Act, 
     under the heading ``Research, Development, Test, and 
     Evaluation, Army'', $305,109,000 shall be available only to 
     accelerate the development, demonstration, and fielding of 
     indirect fire platforms, precision munitions, and related 
     technology.
       [(c) Acceleration of Objective Force Artillery and Resupply 
     Systems.--(1) Immediately upon termination of the Crusader 
     Artillery System program, the Department of the Army shall 
     enter into a contract to leverage technologies developed with 
     funds invested in fiscal year 2002 and prior years under the 
     Crusader Artillery System program, the Future Scout and 
     Cavalry System program, the Composite Armored Vehicle 
     program, and other Army development programs in order to 
     develop and field, by 2008, a Non-Line of Sight (NLOS) 
     Objective Force artillery system and Resupply Vehicle 
     variants of the Future Combat System.
       [(2) Of the funds appropriated or otherwise made available 
     in this Act under the heading ``Research, Development, Test, 
     and Evaluation, Army'', $368,500,000 is available only for

[[Page 15462]]

     the Objective Force Indirect Fire Systems for the Army to 
     implement this subsection: Provided, That none of the funds 
     in this or any other Act shall be available for research, 
     development, test, or evaluation of any Objective Force or 
     Future Combat System indirect fire system until the Secretary 
     of the Army has submitted a written certification to the 
     congressional defense committees that a contract has been 
     awarded pursuant to subsection (c)(1) containing a program 
     plan and schedule for production and fielding a Future Combat 
     System Non-Line of Sight Objective Force artillery system and 
     Resupply Vehicle variants by 2008.
       [Sec. 8122. None of the funds made available in this Act 
     may be transferred to any department, agency, or 
     instrumentality of the United States Government, except 
     pursuant to a transfer made by, or transfer authority 
     provided in, this Act or any other appropriations Act.
       [Sec. 8123. Of the total amount appropriated pursuant to 
     this Act for any component of the Department of Defense that 
     the Director of the Office of Management and Budget has 
     identified (as of the date of the enactment of this Act) 
     under subsection (c) of section 3515 of title 31, United 
     States Code, as being required to have audited financial 
     statements meeting the requirements of subsection (b) of that 
     section, not more than 99 percent may be obligated until the 
     Inspector General of the Department of Defense submits an 
     audit of that component pursuant to section 3521(e) of title 
     31, United States Code.
       [Sec. 8124. None of the funds provided in this Act may be 
     used to relocate the headquarters of the United States Army, 
     South, from Fort Buchanan, Puerto Rico, to a location in the 
     continental United States.
       [This Act may be cited as the ``Department of Defense 
     Appropriations Act, 2003''.]
     That the following sums are appropriated, out of any money in 
     the Treasury not otherwise appropriated, for the fiscal year 
     ending September 30, 2003, for military functions 
     administered by the Department of Defense, and for other 
     purposes, namely:

                                TITLE I

                           MILITARY PERSONNEL

                        Military Personnel, Army

       For pay, allowances, individual clothing, subsistence, 
     interest on deposits, gratuities, permanent change of station 
     travel (including all expenses thereof for organizational 
     movements), and expenses of temporary duty travel between 
     permanent duty stations, for members of the Army on active 
     duty (except members of reserve components provided for 
     elsewhere), cadets, and aviation cadets; and for payments 
     pursuant to section 156 of Public Law 97-377, as amended (42 
     U.S.C. 402 note), and to the Department of Defense Military 
     Retirement Fund, $26,939,792,000.

                        Military Personnel, Navy

       For pay, allowances, individual clothing, subsistence, 
     interest on deposits, gratuities, permanent change of station 
     travel (including all expenses thereof for organizational 
     movements), and expenses of temporary duty travel between 
     permanent duty stations, for members of the Navy on active 
     duty (except members of the Reserve provided for elsewhere), 
     midshipmen, and aviation cadets; and for payments pursuant to 
     section 156 of Public Law 97-377, as amended (42 U.S.C. 402 
     note), and to the Department of Defense Military Retirement 
     Fund, $21,975,201,000.

                    Military Personnel, Marine Corps

       For pay, allowances, individual clothing, subsistence, 
     interest on deposits, gratuities, permanent change of station 
     travel (including all expenses thereof for organizational 
     movements), and expenses of temporary duty travel between 
     permanent duty stations, for members of the Marine Corps on 
     active duty (except members of the Reserve provided for 
     elsewhere); and for payments pursuant to section 156 of 
     Public Law 97-377, as amended (42 U.S.C. 402 note), and to 
     the Department of Defense Military Retirement Fund, 
     $8,507,187,000.

                     Military Personnel, Air Force

       For pay, allowances, individual clothing, subsistence, 
     interest on deposits, gratuities, permanent change of station 
     travel (including all expenses thereof for organizational 
     movements), and expenses of temporary duty travel between 
     permanent duty stations, for members of the Air Force on 
     active duty (except members of reserve components provided 
     for elsewhere), cadets, and aviation cadets; and for payments 
     pursuant to section 156 of Public Law 97-377, as amended (42 
     U.S.C. 402 note), and to the Department of Defense Military 
     Retirement Fund, $22,036,405,000.

                        Reserve Personnel, Army

       For pay, allowances, clothing, subsistence, gratuities, 
     travel, and related expenses for personnel of the Army 
     Reserve on active duty under sections 10211, 10302, and 3038 
     of title 10, United States Code, or while serving on active 
     duty under section 12301(d) of title 10, United States Code, 
     in connection with performing duty specified in section 
     12310(a) of title 10, United States Code, or while undergoing 
     reserve training, or while performing drills or equivalent 
     duty or other duty, and for members of the Reserve Officers' 
     Training Corps, and expenses authorized by section 16131 of 
     title 10, United States Code; and for payments to the 
     Department of Defense Military Retirement Fund, 
     $3,402,055,000.

                        Reserve Personnel, Navy

       For pay, allowances, clothing, subsistence, gratuities, 
     travel, and related expenses for personnel of the Navy 
     Reserve on active duty under section 10211 of title 10, 
     United States Code, or while serving on active duty under 
     section 12301(d) of title 10, United States Code, in 
     connection with performing duty specified in section 12310(a) 
     of title 10, United States Code, or while undergoing reserve 
     training, or while performing drills or equivalent duty, and 
     for members of the Reserve Officers' Training Corps, and 
     expenses authorized by section 16131 of title 10, United 
     States Code; and for payments to the Department of Defense 
     Military Retirement Fund, $1,918,352,000.

                    Reserve Personnel, Marine Corps

       For pay, allowances, clothing, subsistence, gratuities, 
     travel, and related expenses for personnel of the Marine 
     Corps Reserve on active duty under section 10211 of title 10, 
     United States Code, or while serving on active duty under 
     section 12301(d) of title 10, United States Code, in 
     connection with performing duty specified in section 12310(a) 
     of title 10, United States Code, or while undergoing reserve 
     training, or while performing drills or equivalent duty, and 
     for members of the Marine Corps platoon leaders class, and 
     expenses authorized by section 16131 of title 10, United 
     States Code; and for payments to the Department of Defense 
     Military Retirement Fund, $554,383,000.

                      Reserve Personnel, Air Force

       For pay, allowances, clothing, subsistence, gratuities, 
     travel, and related expenses for personnel of the Air Force 
     Reserve on active duty under sections 10211, 10305, and 8038 
     of title 10, United States Code, or while serving on active 
     duty under section 12301(d) of title 10, United States Code, 
     in connection with performing duty specified in section 
     12310(a) of title 10, United States Code, or while undergoing 
     reserve training, or while performing drills or equivalent 
     duty or other duty, and for members of the Air Reserve 
     Officers' Training Corps, and expenses authorized by section 
     16131 of title 10, United States Code; and for payments to 
     the Department of Defense Military Retirement Fund, 
     $1,237,504,000.

                     National Guard Personnel, Army

       For pay, allowances, clothing, subsistence, gratuities, 
     travel, and related expenses for personnel of the Army 
     National Guard while on duty under section 10211, 10302, or 
     12402 of title 10 or section 708 of title 32, United States 
     Code, or while serving on duty under section 12301(d) of 
     title 10 or section 502(f) of title 32, United States Code, 
     in connection with performing duty specified in section 
     12310(a) of title 10, United States Code, or while undergoing 
     training, or while performing drills or equivalent duty or 
     other duty, and expenses authorized by section 16131 of title 
     10, United States Code; and for payments to the Department of 
     Defense Military Retirement Fund, $5,128,588,000.

                  National Guard Personnel, Air Force

       For pay, allowances, clothing, subsistence, gratuities, 
     travel, and related expenses for personnel of the Air 
     National Guard on duty under section 10211, 10305, or 12402 
     of title 10 or section 708 of title 32, United States Code, 
     or while serving on duty under section 12301(d) of title 10 
     or section 502(f) of title 32, United States Code, in 
     connection with performing duty specified in section 12310(a) 
     of title 10, United States Code, or while undergoing 
     training, or while performing drills or equivalent duty or 
     other duty, and expenses authorized by section 16131 of title 
     10, United States Code; and for payments to the Department of 
     Defense Military Retirement Fund, $2,126,061,000.

                                TITLE II

                       OPERATION AND MAINTENANCE

                    Operation and Maintenance, Army

       For expenses, not otherwise provided for, necessary for the 
     operation and maintenance of the Army, as authorized by law; 
     and not to exceed $10,818,000 can be used for emergencies and 
     extraordinary expenses, to be expended on the approval or 
     authority of the Secretary of the Army, and payments may be 
     made on his certificate of necessity for confidential 
     military purposes, $24,048,107,000: Provided, That of the 
     funds appropriated in this paragraph, not less than 
     $355,000,000 shall be made available only for conventional 
     ammunition care and maintenance.

                    Operation and Maintenance, Navy

       For expenses, not otherwise provided for, necessary for the 
     operation and maintenance of the Navy and the Marine Corps, 
     as authorized by law; and not to exceed $4,415,000 can be 
     used for emergencies and extraordinary expenses, to be 
     expended on the approval or authority of the Secretary of the 
     Navy, and payments may be made on his certificate of 
     necessity for confidential military purposes, 
     $29,410,276,000.

                Operation and Maintenance, Marine Corps

       For expenses, not otherwise provided for, necessary for the 
     operation and maintenance of the Marine Corps, as authorized 
     by law, $3,576,142,000.

                  Operation and Maintenance, Air Force

       For expenses, not otherwise provided for, necessary for the 
     operation and maintenance of the Air Force, as authorized by 
     law; and not to exceed $7,902,000 can be used for emergencies 
     and extraordinary expenses, to be expended on the approval or 
     authority of the Secretary of the Air Force, and payments may 
     be made on his certificate of necessity for confidential 
     military purposes, $27,463,678,000.

[[Page 15463]]



                Operation and Maintenance, Defense-Wide

       For expenses, not otherwise provided for, necessary for the 
     operation and maintenance of activities and agencies of the 
     Department of Defense (other than the military departments), 
     as authorized by law, $14,527,853,000, of which not to exceed 
     $25,000,000 may be available for the CINC initiative fund 
     account; and of which not to exceed $34,500,000 can be used 
     for emergencies and extraordinary expenses, to be expended on 
     the approval or authority of the Secretary of Defense, and 
     payments may be made on his certificate of necessity for 
     confidential military purposes.

                Operation and Maintenance, Army Reserve

       For expenses, not otherwise provided for, necessary for the 
     operation and maintenance, including training, organization, 
     and administration, of the Army Reserve; repair of facilities 
     and equipment; hire of passenger motor vehicles; travel and 
     transportation; care of the dead; recruiting; procurement of 
     services, supplies, and equipment; and communications, 
     $1,963,710,000.

                Operation and Maintenance, Navy Reserve

       For expenses, not otherwise provided for, necessary for the 
     operation and maintenance, including training, organization, 
     and administration, of the Navy Reserve; repair of facilities 
     and equipment; hire of passenger motor vehicles; travel and 
     transportation; care of the dead; recruiting; procurement of 
     services, supplies, and equipment; and communications, 
     $1,233,759,000.

            Operation and Maintenance, Marine Corps Reserve

       For expenses, not otherwise provided for, necessary for the 
     operation and maintenance, including training, organization, 
     and administration, of the Marine Corps Reserve; repair of 
     facilities and equipment; hire of passenger motor vehicles; 
     travel and transportation; care of the dead; recruiting; 
     procurement of services, supplies, and equipment; and 
     communications, $185,532,000.

              Operation and Maintenance, Air Force Reserve

       For expenses, not otherwise provided for, necessary for the 
     operation and maintenance, including training, organization, 
     and administration, of the Air Force Reserve; repair of 
     facilities and equipment; hire of passenger motor vehicles; 
     travel and transportation; care of the dead; recruiting; 
     procurement of services, supplies, and equipment; and 
     communications, $2,160,604,000.

             Operation and Maintenance, Army National Guard

       For expenses of training, organizing, and administering the 
     Army National Guard, including medical and hospital treatment 
     and related expenses in non-Federal hospitals; maintenance, 
     operation, and repairs to structures and facilities; hire of 
     passenger motor vehicles; personnel services in the National 
     Guard Bureau; travel expenses (other than mileage), as 
     authorized by law for Army personnel on active duty, for Army 
     National Guard division, regimental, and battalion commanders 
     while inspecting units in compliance with National Guard 
     Bureau regulations when specifically authorized by the Chief, 
     National Guard Bureau; supplying and equipping the Army 
     National Guard as authorized by law; and expenses of repair, 
     modification, maintenance, and issue of supplies and 
     equipment (including aircraft), $4,266,412,000.

             Operation and Maintenance, Air National Guard

       For operation and maintenance of the Air National Guard, 
     including medical and hospital treatment and related expenses 
     in non-Federal hospitals; maintenance, operation, repair, and 
     other necessary expenses of facilities for the training and 
     administration of the Air National Guard, including repair of 
     facilities, maintenance, operation, and modification of 
     aircraft; transportation of things, hire of passenger motor 
     vehicles; supplies, materials, and equipment, as authorized 
     by law for the Air National Guard; and expenses incident to 
     the maintenance and use of supplies, materials, and 
     equipment, including such as may be furnished from stocks 
     under the control of agencies of the Department of Defense; 
     travel expenses (other than mileage) on the same basis as 
     authorized by law for Air National Guard personnel on active 
     Federal duty, for Air National Guard commanders while 
     inspecting units in compliance with National Guard Bureau 
     regulations when specifically authorized by the Chief, 
     National Guard Bureau, $4,113,460,000.

            Overseas Contingency Operations Transfer Account


                     (including transfer of funds)

       For expenses directly relating to Overseas Contingency 
     Operations by United States military forces, $50,000,000, to 
     remain available until expended: Provided, That the Secretary 
     of Defense may transfer these funds only to military 
     personnel accounts; operation and maintenance accounts within 
     this title; the Defense Health Program appropriation; 
     procurement accounts; research, development, test and 
     evaluation accounts; and to working capital funds: Provided 
     further, That the funds transferred shall be merged with and 
     shall be available for the same purposes and for the same 
     time period, as the appropriation to which transferred: 
     Provided further, That upon a determination that all or part 
     of the funds transferred from this appropriation are not 
     necessary for the purposes provided herein, such amounts may 
     be transferred back to this appropriation: Provided further, 
     That the transfer authority provided in this paragraph is in 
     addition to any other transfer authority contained elsewhere 
     in this Act.

          United States Courts of Appeals for the Armed Forces

       For salaries and expenses necessary for the United States 
     Court of Appeals for the Armed Forces, $9,614,000, of which 
     not to exceed $2,500 can be used for official representation 
     purposes.

                    Environmental Restoration, Army


                     (including transfer of funds)

       For the Department of the Army, $395,900,000, to remain 
     available until transferred: Provided, That the Secretary of 
     the Army shall, upon determining that such funds are required 
     for environmental restoration, reduction and recycling of 
     hazardous waste, removal of unsafe buildings and debris of 
     the Department of the Army, or for similar purposes, transfer 
     the funds made available by this appropriation to other 
     appropriations made available to the Department of the Army, 
     to be merged with and to be available for the same purposes 
     and for the same time period as the appropriations to which 
     transferred: Provided further, That upon a determination that 
     all or part of the funds transferred from this appropriation 
     are not necessary for the purposes provided herein, such 
     amounts may be transferred back to this appropriation.

                    Environmental Restoration, Navy


                     (including transfer of funds)

       For the Department of the Navy, $256,948,000, to remain 
     available until transferred: Provided, That the Secretary of 
     the Navy shall, upon determining that such funds are required 
     for environmental restoration, reduction and recycling of 
     hazardous waste, removal of unsafe buildings and debris of 
     the Department of the Navy, or for similar purposes, transfer 
     the funds made available by this appropriation to other 
     appropriations made available to the Department of the Navy, 
     to be merged with and to be available for the same purposes 
     and for the same time period as the appropriations to which 
     transferred: Provided further, That upon a determination that 
     all or part of the funds transferred from this appropriation 
     are not necessary for the purposes provided herein, such 
     amounts may be transferred back to this appropriation.

                  Environmental Restoration, Air Force


                     (including transfer of funds)

       For the Department of the Air Force, $389,773,000, to 
     remain available until transferred: Provided, That the 
     Secretary of the Air Force shall, upon determining that such 
     funds are required for environmental restoration, reduction 
     and recycling of hazardous waste, removal of unsafe buildings 
     and debris of the Department of the Air Force, or for similar 
     purposes, transfer the funds made available by this 
     appropriation to other appropriations made available to the 
     Department of the Air Force, to be merged with and to be 
     available for the same purposes and for the same time period 
     as the appropriations to which transferred: Provided further, 
     That upon a determination that all or part of the funds 
     transferred from this appropriation are not necessary for the 
     purposes provided herein, such amounts may be transferred 
     back to this appropriation.

                Environmental Restoration, Defense-Wide


                     (including transfer of funds)

       For the Department of Defense, $23,498,000, to remain 
     available until transferred: Provided, That the Secretary of 
     Defense shall, upon determining that such funds are required 
     for environmental restoration, reduction and recycling of 
     hazardous waste, removal of unsafe buildings and debris of 
     the Department of Defense, or for similar purposes, transfer 
     the funds made available by this appropriation to other 
     appropriations made available to the Department of Defense, 
     to be merged with and to be available for the same purposes 
     and for the same time period as the appropriations to which 
     transferred: Provided further, That upon a determination that 
     all or part of the funds transferred from this appropriation 
     are not necessary for the purposes provided herein, such 
     amounts may be transferred back to this appropriation.

         Environmental Restoration, Formerly Used Defense Sites


                     (including transfer of funds)

       For the Department of the Army, $252,102,000, to remain 
     available until transferred: Provided, That the Secretary of 
     the Army shall, upon determining that such funds are required 
     for environmental restoration, reduction and recycling of 
     hazardous waste, removal of unsafe buildings and debris at 
     sites formerly used by the Department of Defense, transfer 
     the funds made available by this appropriation to other 
     appropriations made available to the Department of the Army, 
     to be merged with and to be available for the same purposes 
     and for the same time period as the appropriations to which 
     transferred: Provided further, That upon a determination that 
     all or part of the funds transferred from this appropriation 
     are not necessary for the purposes provided herein, such 
     amounts may be transferred back to this appropriation.

             Overseas Humanitarian, Disaster, and Civic Aid

       For expenses relating to the Overseas Humanitarian, 
     Disaster, and Civic Aid programs of the Department of Defense 
     (consisting of the programs provided under sections 401, 402, 
     404, 2547, and 2551 of title 10, United States Code), 
     $58,400,000, to remain available until September 30, 2004.

                  Former Soviet Union Threat Reduction

       For assistance to the republics of the former Soviet Union, 
     including assistance provided by contract or by grants, for 
     facilitating the elimination and the safe and secure 
     transportation

[[Page 15464]]

     and storage of nuclear, chemical and other weapons; for 
     establishing programs to prevent the proliferation of 
     weapons, weapons components, and weapon-related technology 
     and expertise; for programs relating to the training and 
     support of defense and military personnel for 
     demilitarization and protection of weapons, weapons 
     components and weapons technology and expertise, and for 
     defense and military contacts, $416,700,000, to remain 
     available until September 30, 2005: Provided, That of the 
     amounts provided under this heading, $10,000,000 shall be 
     available only to support the dismantling and disposal of 
     nuclear submarines and submarine reactor components in the 
     Russian Far East.

        Support for International Sporting Competitions, Defense

       For logistical and security support for international 
     sporting competitions (including pay and non-travel related 
     allowances only for members of the Reserve Components of the 
     Armed Forces of the United States called or ordered to active 
     duty in connection with providing such support), $19,000,000, 
     to remain available until expended.

                               TITLE III

                              PROCUREMENT

                       Aircraft Procurement, Army

       For construction, procurement, production, modification, 
     and modernization of aircraft, equipment, including ordnance, 
     ground handling equipment, spare parts, and accessories 
     therefor; specialized equipment and training devices; 
     expansion of public and private plants, including the land 
     necessary therefor, for the foregoing purposes, and such 
     lands and interests therein, may be acquired, and 
     construction prosecuted thereon prior to approval of title; 
     and procurement and installation of equipment, appliances, 
     and machine tools in public and private plants; reserve plant 
     and Government and contractor-owned equipment layaway; and 
     other expenses necessary for the foregoing purposes, 
     $2,249,389,000, to remain available for obligation until 
     September 30, 2005.

                       Missile Procurement, Army

       For construction, procurement, production, modification, 
     and modernization of missiles, equipment, including ordnance, 
     ground handling equipment, spare parts, and accessories 
     therefor; specialized equipment and training devices; 
     expansion of public and private plants, including the land 
     necessary therefor, for the foregoing purposes, and such 
     lands and interests therein, may be acquired, and 
     construction prosecuted thereon prior to approval of title; 
     and procurement and installation of equipment, appliances, 
     and machine tools in public and private plants; reserve plant 
     and Government and contractor-owned equipment layaway; and 
     other expenses necessary for the foregoing purposes, 
     $1,585,672,000, to remain available for obligation until 
     September 30, 2005.

        Procurement of Weapons and Tracked Combat Vehicles, Army

       For construction, procurement, production, and modification 
     of weapons and tracked combat vehicles, equipment, including 
     ordnance, spare parts, and accessories therefor; specialized 
     equipment and training devices; expansion of public and 
     private plants, including the land necessary therefor, for 
     the foregoing purposes, and such lands and interests therein, 
     may be acquired, and construction prosecuted thereon prior to 
     approval of title; and procurement and installation of 
     equipment, appliances, and machine tools in public and 
     private plants; reserve plant and Government and contractor-
     owned equipment layaway; and other expenses necessary for the 
     foregoing purposes, $2,242,058,000, to remain available for 
     obligation until September 30, 2005.

                    Procurement of Ammunition, Army

       For construction, procurement, production, and modification 
     of ammunition, and accessories therefor; specialized 
     equipment and training devices; expansion of public and 
     private plants, including ammunition facilities authorized by 
     section 2854 of title 10, United States Code, and the land 
     necessary therefor, for the foregoing purposes, and such 
     lands and interests therein, may be acquired, and 
     construction prosecuted thereon prior to approval of title; 
     and procurement and installation of equipment, appliances, 
     and machine tools in public and private plants; reserve plant 
     and Government and contractor-owned equipment layaway; and 
     other expenses necessary for the foregoing purposes, 
     $1,258,599,000, to remain available for obligation until 
     September 30, 2005.

                        Other Procurement, Army

       For construction, procurement, production, and modification 
     of vehicles, including tactical, support, and non-tracked 
     combat vehicles; the purchase of passenger motor vehicles for 
     replacement only; and the purchase of 6 vehicles required for 
     physical security of personnel, notwithstanding price 
     limitations applicable to passenger vehicles but not to 
     exceed $180,000 per vehicle; communications and electronic 
     equipment; other support equipment; spare parts, ordnance, 
     and accessories therefor; specialized equipment and training 
     devices; expansion of public and private plants, including 
     the land necessary therefor, for the foregoing purposes, and 
     such lands and interests therein, may be acquired, and 
     construction prosecuted thereon prior to approval of title; 
     and procurement and installation of equipment, appliances, 
     and machine tools in public and private plants; reserve plant 
     and Government and contractor-owned equipment layaway; and 
     other expenses necessary for the foregoing purposes, 
     $5,783,439,000, to remain available for obligation until 
     September 30, 2005.

                       Aircraft Procurement, Navy

       For construction, procurement, production, modification, 
     and modernization of aircraft, equipment, including ordnance, 
     spare parts, and accessories therefor; specialized equipment; 
     expansion of public and private plants, including the land 
     necessary therefor, and such lands and interests therein, may 
     be acquired, and construction prosecuted thereon prior to 
     approval of title; and procurement and installation of 
     equipment, appliances, and machine tools in public and 
     private plants; reserve plant and Government and contractor-
     owned equipment layaway, $8,849,955,000, to remain available 
     for obligation until September 30, 2005.

                       Weapons Procurement, Navy

       For construction, procurement, production, modification, 
     and modernization of missiles, torpedoes, other weapons, and 
     related support equipment including spare parts, and 
     accessories therefor; expansion of public and private plants, 
     including the land necessary therefor, and such lands and 
     interests therein, may be acquired, and construction 
     prosecuted thereon prior to approval of title; and 
     procurement and installation of equipment, appliances, and 
     machine tools in public and private plants; reserve plant and 
     Government and contractor-owned equipment layaway, 
     $1,856,617,000, to remain available for obligation until 
     September 30, 2005.

            Procurement of Ammunition, Navy and Marine Corps

       For construction, procurement, production, and modification 
     of ammunition, and accessories therefor; specialized 
     equipment and training devices; expansion of public and 
     private plants, including ammunition facilities authorized by 
     section 2854 of title 10, United States Code, and the land 
     necessary therefor, for the foregoing purposes, and such 
     lands and interests therein, may be acquired, and 
     construction prosecuted thereon prior to approval of title; 
     and procurement and installation of equipment, appliances, 
     and machine tools in public and private plants; reserve plant 
     and Government and contractor-owned equipment layaway; and 
     other expenses necessary for the foregoing purposes, 
     $1,169,152,000, to remain available for obligation until 
     September 30, 2005.

                   Shipbuilding and Conversion, Navy

       For expenses necessary for the construction, acquisition, 
     or conversion of vessels as authorized by law, including 
     armor and armament thereof, plant equipment, appliances, and 
     machine tools and installation thereof in public and private 
     plants; reserve plant and Government and contractor-owned 
     equipment layaway; procurement of critical, long leadtime 
     components and designs for vessels to be constructed or 
     converted in the future; and expansion of public and private 
     plants, including land necessary therefor, and such lands and 
     interests therein, may be acquired, and construction 
     prosecuted thereon prior to approval of title, as follows:
       Carrier Replacement Program (AP), $472,703,000;
       SSGN, $404,305,000;
       SSGN (AP), $421,000,000;
       NSSN, $1,512,652,000;
       NSSN (AP), $645,209,000;
       CVN Refuelings, $24,000,000;
       CVN Refuelings (AP), $195,781,000;
       Submarine Refuelings, $435,792,000;
       DDG-51 Destroyer, $2,321,502,000;
       LPD-17, $596,492,000;
       LHD-8, $243,000,000;
       LCAC Landing Craft Air Cushion, $89,638,000;
       Prior year shipbuilding costs, $1,481,955,000;
       Service Craft, $6,756,000; and
       For outfitting, post delivery, conversions, and first 
     destination transportation, $300,608,000;
       In all: $9,151,393,000, to remain available for obligation 
     until September 30, 2007: Provided, That additional 
     obligations may be incurred after September 30, 2007, for 
     engineering services, tests, evaluations, and other such 
     budgeted work that must be performed in the final stage of 
     ship construction: Provided further, That none of the funds 
     provided under this heading for the construction or 
     conversion of any naval vessel to be constructed in shipyards 
     in the United States shall be expended in foreign facilities 
     for the construction of major components of such vessel: 
     Provided further, That none of the funds provided under this 
     heading shall be used for the construction of any naval 
     vessel in foreign shipyards.

                        Other Procurement, Navy

       For procurement, production, and modernization of support 
     equipment and materials not otherwise provided for, Navy 
     ordnance (except ordnance for new aircraft, new ships, and 
     ships authorized for conversion); the purchase of passenger 
     motor vehicles for replacement only, and the purchase of 3 
     vehicles required for physical security of personnel, 
     notwithstanding price limitations applicable to passenger 
     vehicles but not to exceed $180,000 per vehicle; expansion of 
     public and private plants, including the land necessary 
     therefor, and such lands and interests therein, may be 
     acquired, and construction prosecuted thereon prior to 
     approval of title; and procurement and installation of 
     equipment, appliances, and machine tools in public and 
     private plants; reserve plant and Government and contractor-
     owned equipment layaway, $4,500,710,000, to remain available 
     for obligation until September 30, 2005.

                       Procurement, Marine Corps

       For expenses necessary for the procurement, manufacture, 
     and modification of missiles, armament, military equipment, 
     spare parts, and

[[Page 15465]]

     accessories therefor; plant equipment, appliances, and 
     machine tools, and installation thereof in public and private 
     plants; reserve plant and Government and contractor-owned 
     equipment layaway; vehicles for the Marine Corps, including 
     the purchase of passenger motor vehicles for replacement 
     only; and expansion of public and private plants, including 
     land necessary therefor, and such lands and interests 
     therein, may be acquired, and construction prosecuted thereon 
     prior to approval of title, $1,357,383,000, to remain 
     available for obligation until September 30, 2005.

                    Aircraft Procurement, Air Force

       For construction, procurement, lease, and modification of 
     aircraft and equipment, including armor and armament, 
     specialized ground handling equipment, and training devices, 
     spare parts, and accessories therefor; specialized equipment; 
     expansion of public and private plants, Government-owned 
     equipment and installation thereof in such plants, erection 
     of structures, and acquisition of land, for the foregoing 
     purposes, and such lands and interests therein, may be 
     acquired, and construction prosecuted thereon prior to 
     approval of title; reserve plant and Government and 
     contractor-owned equipment layaway; and other expenses 
     necessary for the foregoing purposes including rents and 
     transportation of things, $13,085,555,000, to remain 
     available for obligation until September 30, 2005.

                     Missile Procurement, Air Force

       For construction, procurement, and modification of 
     missiles, spacecraft, rockets, and related equipment, 
     including spare parts and accessories therefor, ground 
     handling equipment, and training devices; expansion of public 
     and private plants, Government-owned equipment and 
     installation thereof in such plants, erection of structures, 
     and acquisition of land, for the foregoing purposes, and such 
     lands and interests therein, may be acquired, and 
     construction prosecuted thereon prior to approval of title; 
     reserve plant and Government and contractor-owned equipment 
     layaway; and other expenses necessary for the foregoing 
     purposes including rents and transportation of things, 
     $3,364,639,000, to remain available for obligation until 
     September 30, 2005.

                  Procurement of Ammunition, Air Force

       For construction, procurement, production, and modification 
     of ammunition, and accessories therefor; specialized 
     equipment and training devices; expansion of public and 
     private plants, including ammunition facilities authorized by 
     section 2854 of title 10, United States Code, and the land 
     necessary therefor, for the foregoing purposes, and such 
     lands and interests therein, may be acquired, and 
     construction prosecuted thereon prior to approval of title; 
     and procurement and installation of equipment, appliances, 
     and machine tools in public and private plants; reserve plant 
     and Government and contractor-owned equipment layaway; and 
     other expenses necessary for the foregoing purposes, 
     $1,281,864,000, to remain available for obligation until 
     September 30, 2005.

                      Other Procurement, Air Force

       For procurement and modification of equipment (including 
     ground guidance and electronic control equipment, and ground 
     electronic and communication equipment), and supplies, 
     materials, and spare parts therefor, not otherwise provided 
     for; the purchase of passenger motor vehicles for replacement 
     only, and the purchase of 2 vehicles required for physical 
     security of personnel, notwithstanding price limitations 
     applicable to passenger vehicles but not to exceed $180,000 
     per vehicle; lease of passenger motor vehicles; and expansion 
     of public and private plants, Government-owned equipment and 
     installation thereof in such plants, erection of structures, 
     and acquisition of land, for the foregoing purposes, and such 
     lands and interests therein, may be acquired, and 
     construction prosecuted thereon, prior to approval of title; 
     reserve plant and Government and contractor-owned equipment 
     layaway, $10,628,958,000, to remain available for obligation 
     until September 30, 2005.

                       Procurement, Defense-Wide

       For expenses of activities and agencies of the Department 
     of Defense (other than the military departments) necessary 
     for procurement, production, and modification of equipment, 
     supplies, materials, and spare parts therefor, not otherwise 
     provided for; the purchase of passenger motor vehicles for 
     replacement only; the purchase of 4 vehicles required for 
     physical security of personnel, notwithstanding price 
     limitations applicable to passenger vehicles but not to 
     exceed $180,000 per vehicle; expansion of public and private 
     plants, equipment, and installation thereof in such plants, 
     erection of structures, and acquisition of land for the 
     foregoing purposes, and such lands and interests therein, may 
     be acquired, and construction prosecuted thereon prior to 
     approval of title; reserve plant and Government and 
     contractor-owned equipment layaway, $2,958,285,000, to remain 
     available for obligation until September 30, 2005.

                  National Guard and Reserve Equipment

       For procurement of aircraft, missiles, tracked combat 
     vehicles, ammunition, other weapons, and other procurement 
     for the reserve components of the Armed Forces, $130,000,000, 
     to remain available for obligation until September 30, 2005: 
     Provided, That the Chiefs of the Reserve and National Guard 
     components shall, not later than 30 days after the enactment 
     of this Act, individually submit to the congressional defense 
     committees the modernization priority assessment for their 
     respective Reserve or National Guard component.

                    Defense Production Act Purchases

       For activities by the Department of Defense pursuant to 
     sections 108, 301, 302, and 303 of the Defense Production Act 
     of 1950 (50 U.S.C. App. 2078, 2091, 2092, and 2093), 
     $73,057,000, to remain available until expended, of which, 
     $5,000,000 may be used for a Processable Rigid-Rod Polymeric 
     Material Supplier Initiative under title III of the Defense 
     Production Act of 1950 (50 U.S.C. App 2091 et seq.) to 
     develop affordable production methods and a domestic supplier 
     for military and commercial processable rigid-rod polymeric 
     materials.

                                TITLE IV

               RESEARCH, DEVELOPMENT, TEST AND EVALUATION

            Research, Development, Test and Evaluation, Army

       For expenses necessary for basic and applied scientific 
     research, development, test and evaluation, including 
     maintenance, rehabilitation, lease, and operation of 
     facilities and equipment, $7,410,168,000, to remain available 
     for obligation until September 30, 2004.

            Research, Development, Test and Evaluation, Navy

       For expenses necessary for basic and applied scientific 
     research, development, test and evaluation, including 
     maintenance, rehabilitation, lease, and operation of 
     facilities and equipment, $13,275,735,000, to remain 
     available for obligation until September 30, 2004: Provided, 
     That funds appropriated in this paragraph which are available 
     for the V-22 may be used to meet unique operational 
     requirements of the Special Operations Forces.

         Research, Development, Test and Evaluation, Air Force

       For expenses necessary for basic and applied scientific 
     research, development, test and evaluation, including 
     maintenance, rehabilitation, lease, and operation of 
     facilities and equipment, $18,537,679,000, to remain 
     available for obligation until September 30, 2004.

        Research, Development, Test and Evaluation, Defense-Wide

       For expenses of activities and agencies of the Department 
     of Defense (other than the military departments), necessary 
     for basic and applied scientific research, development, test 
     and evaluation; advanced research projects as may be 
     designated and determined by the Secretary of Defense, 
     pursuant to law; maintenance, rehabilitation, lease, and 
     operation of facilities and equipment, $16,611,107,000, to 
     remain available for obligation until September 30, 2004.

                Operational Test and Evaluation, Defense

       For expenses, not otherwise provided for, necessary for the 
     independent activities of the Director, Operational Test and 
     Evaluation, in the direction and supervision of operational 
     test and evaluation, including initial operational test and 
     evaluation which is conducted prior to, and in support of, 
     production decisions; joint operational testing and 
     evaluation; and administrative expenses in connection 
     therewith, $302,554,000, to remain available for obligation 
     until September 30, 2004.

                                TITLE V

                     REVOLVING AND MANAGEMENT FUNDS

                     Defense Working Capital Funds

       For the Defense Working Capital Funds, $1,784,956,000: 
     Provided, That during fiscal year 2003, funds in the Defense 
     Working Capital Funds may be used for the purchase of not to 
     exceed 315 passenger carrying motor vehicles for replacement 
     only for the Defense Security Service, and the purchase of 
     not to exceed 7 vehicles for replacement only for the Defense 
     Logistics Agency.

                     National Defense Sealift Fund

       For National Defense Sealift Fund programs, projects, and 
     activities, and for expenses of the National Defense Reserve 
     Fleet, as established by section 11 of the Merchant Ship 
     Sales Act of 1946 (50 U.S.C. App. 1744), and for the 
     necessary expenses to maintain and preserve a U.S.-flag 
     merchant fleet to serve the national security needs of the 
     United States, $934,129,000, to remain available until 
     expended: Provided, That none of the funds provided in this 
     paragraph shall be used to award a new contract that provides 
     for the acquisition of any of the following major components 
     unless such components are manufactured in the United States: 
     auxiliary equipment, including pumps, for all shipboard 
     services; propulsion system components (that is; engines, 
     reduction gears, and propellers); shipboard cranes; and 
     spreaders for shipboard cranes: Provided further, That the 
     exercise of an option in a contract awarded through the 
     obligation of previously appropriated funds shall not be 
     considered to be the award of a new contract: Provided 
     further, That the Secretary of the military department 
     responsible for such procurement may waive the restrictions 
     in the first proviso on a case-by-case basis by certifying in 
     writing to the Committees on Appropriations of the House of 
     Representatives and the Senate that adequate domestic 
     supplies are not available to meet Department of Defense 
     requirements on a timely basis and that such an acquisition 
     must be made in order to acquire capability for national 
     security purposes.

[[Page 15466]]



                                TITLE VI

                  OTHER DEPARTMENT OF DEFENSE PROGRAMS

                         Defense Health Program

       For expenses, not otherwise provided for, for medical and 
     health care programs of the Department of Defense, as 
     authorized by law, $14,961,497,000, of which $14,283,041,000 
     shall be for Operation and maintenance, of which not to 
     exceed 2 percent shall remain available until September 30, 
     2004; of which $284,242,000, to remain available for 
     obligation until September 30, 2005, shall be for 
     Procurement; of which $394,214,000, to remain available for 
     obligation until September 30, 2004, shall be for Research, 
     development, test and evaluation.

            Chemical Agents and Munitions Destruction, Army

       For expenses, not otherwise provided for, necessary for the 
     destruction of the United States stockpile of lethal chemical 
     agents and munitions in accordance with the provisions of 
     section 1412 of the Department of Defense Authorization Act, 
     1986 (50 U.S.C. 1521), and for the destruction of other 
     chemical warfare materials that are not in the chemical 
     weapon stockpile, $1,490,199,000, of which $974,238,000 shall 
     be for Operation and maintenance to remain available until 
     September 30, 2004, $213,278,000 shall be for Procurement to 
     remain available until September 30, 2005, and $302,683,000 
     shall be for Research, development, test and evaluation to 
     remain available until September 30, 2004: Provided, That of 
     these funds $507,500,000 shall not be available until five 
     days after the Army notifies the Committees on Appropriations 
     of the House and Senate that it is able to meet milestones 
     agreed upon by the Office of the Secretary of Defense and the 
     Office of Management and Budget.

         Drug Interdiction and Counter-Drug Activities, Defense


                     (including transfer of funds)

       For drug interdiction and counter-drug activities of the 
     Department of Defense, for transfer to appropriations 
     available to the Department of Defense for military personnel 
     of the reserve components serving under the provisions of 
     title 10 and title 32, United States Code; for Operation and 
     maintenance; for Procurement; and for Research, development, 
     test and evaluation, $916,107,000: Provided, That the funds 
     appropriated under this heading shall be available for 
     obligation for the same time period and for the same purpose 
     as the appropriation to which transferred: Provided further, 
     That upon a determination that all or part of the funds 
     transferred from this appropriation are not necessary for the 
     purposes provided herein, such amounts may be transferred 
     back to this appropriation: Provided further, That the 
     transfer authority provided under this heading is in addition 
     to any other transfer authority contained elsewhere in this 
     Act.

                    Office of the Inspector General

       For expenses and activities of the Office of the Inspector 
     General in carrying out the provisions of the Inspector 
     General Act of 1978, as amended, $157,165,000, of which 
     $155,165,000 shall be for Operation and maintenance, of which 
     not to exceed $700,000 is available for emergencies and 
     extraordinary expenses to be expended on the approval or 
     authority of the Inspector General, and payments may be made 
     on the Inspector General's certificate of necessity for 
     confidential military purposes; and of which $2,000,000 to 
     remain available until September 30, 2005, shall be for 
     Procurement.

                               TITLE VII

                            RELATED AGENCIES

   Central Intelligence Agency Retirement and Disability System Fund

       For payment to the Central Intelligence Agency Retirement 
     and Disability System Fund, to maintain the proper funding 
     level for continuing the operation of the Central 
     Intelligence Agency Retirement and Disability System, 
     $212,000,000.

               Intelligence Community Management Account


                     (including transfer of funds)

       For necessary expenses of the Intelligence Community 
     Management Account, $122,754,000 of which $24,252,000 for the 
     Advanced Research and Development Committee shall remain 
     available until September 30, 2004: Provided, That of the 
     funds appropriated under this heading, $34,100,000 shall be 
     transferred to the Department of Justice for the National 
     Drug Intelligence Center to support the Department of 
     Defense's counter-drug intelligence responsibilities, and of 
     the said amount, $1,500,000 for Procurement shall remain 
     available until September 30, 2005 and $1,000,000 for 
     Research, development, test and evaluation shall remain 
     available until September 30, 2004: Provided further, That 
     the National Drug Intelligence Center shall maintain the 
     personnel and technical resources to provide timely support 
     to law enforcement authorities to conduct document 
     exploitation of materials collected in Federal, State, and 
     local law enforcement activity.

Payment to Kaho'olawe Island Conveyance, Remediation, and Environmental 
                            Restoration Fund

       For payment to Kaho'olawe Island Conveyance, Remediation, 
     and Environmental Restoration Fund, as authorized by law, 
     $80,000,000, to remain available until expended.

                 National Security Education Trust Fund

       For the purposes of title VIII of Public Law 102-183, 
     $8,000,000, to be derived from the National Security 
     Education Trust Fund, to remain available until expended.

                               TITLE VIII

                           GENERAL PROVISIONS

       Sec. 8001. No part of any appropriation contained in this 
     Act shall be used for publicity or propaganda purposes not 
     authorized by the Congress.
       Sec. 8002. During the current fiscal year, provisions of 
     law prohibiting the payment of compensation to, or employment 
     of, any person not a citizen of the United States shall not 
     apply to personnel of the Department of Defense: Provided, 
     That salary increases granted to direct and indirect hire 
     foreign national employees of the Department of Defense 
     funded by this Act shall not be at a rate in excess of the 
     percentage increase authorized by law for civilian employees 
     of the Department of Defense whose pay is computed under the 
     provisions of section 5332 of title 5, United States Code, or 
     at a rate in excess of the percentage increase provided by 
     the appropriate host nation to its own employees, whichever 
     is higher: Provided further, That this section shall not 
     apply to Department of Defense foreign service national 
     employees serving at United States diplomatic missions whose 
     pay is set by the Department of State under the Foreign 
     Service Act of 1980: Provided further, That the limitations 
     of this provision shall not apply to foreign national 
     employees of the Department of Defense in the Republic of 
     Turkey.
       Sec. 8003. No part of any appropriation contained in this 
     Act shall remain available for obligation beyond the current 
     fiscal year, unless expressly so provided herein.
       Sec. 8004. No more than 20 percent of the appropriations in 
     this Act which are limited for obligation during the current 
     fiscal year shall be obligated during the last 2 months of 
     the fiscal year: Provided, That this section shall not apply 
     to obligations for support of active duty training of reserve 
     components or summer camp training of the Reserve Officers' 
     Training Corps.


                          (transfer of funds)

       Sec. 8005. Upon determination by the Secretary of Defense 
     that such action is necessary in the national interest, he 
     may, with the approval of the Office of Management and 
     Budget, transfer not to exceed $2,000,000,000 of working 
     capital funds of the Department of Defense or funds made 
     available in this Act to the Department of Defense for 
     military functions (except military construction) between 
     such appropriations or funds or any subdivision thereof, to 
     be merged with and to be available for the same purposes, and 
     for the same time period, as the appropriation or fund to 
     which transferred: Provided, That such authority to transfer 
     may not be used unless for higher priority items, based on 
     unforeseen military requirements, than those for which 
     originally appropriated and in no case where the item for 
     which funds are requested has been denied by the Congress: 
     Provided further, That the Secretary of Defense shall notify 
     the Congress promptly of all transfers made pursuant to this 
     authority or any other authority in this Act: Provided 
     further, That no part of the funds in this Act shall be 
     available to prepare or present a request to the Committees 
     on Appropriations for reprogramming of funds, unless for 
     higher priority items, based on unforeseen military 
     requirements, than those for which originally appropriated 
     and in no case where the item for which reprogramming is 
     requested has been denied by the Congress: Provided further, 
     That a request for multiple reprogrammings of funds using 
     authority provided in this section must be made prior to May 
     31, 2003.


                          (transfer of funds)

       Sec. 8006. During the current fiscal year, cash balances in 
     working capital funds of the Department of Defense 
     established pursuant to section 2208 of title 10, United 
     States Code, may be maintained in only such amounts as are 
     necessary at any time for cash disbursements to be made from 
     such funds: Provided, That transfers may be made between such 
     funds: Provided further, That transfers may be made between 
     working capital funds and the ``Foreign Currency 
     Fluctuations, Defense'' appropriation and the ``Operation and 
     Maintenance'' appropriation accounts in such amounts as may 
     be determined by the Secretary of Defense, with the approval 
     of the Office of Management and Budget, except that such 
     transfers may not be made unless the Secretary of Defense has 
     notified the Congress of the proposed transfer. Except in 
     amounts equal to the amounts appropriated to working capital 
     funds in this Act, no obligations may be made against a 
     working capital fund to procure or increase the value of war 
     reserve material inventory, unless the Secretary of Defense 
     has notified the Congress prior to any such obligation.
       Sec. 8007. Funds appropriated by this Act may not be used 
     to initiate a special access program without prior 
     notification 30 calendar days in session in advance to the 
     congressional defense committees.
       Sec. 8008. None of the funds provided in this Act shall be 
     available to initiate: (1) a multiyear contract that employs 
     economic order quantity procurement in excess of $20,000,000 
     in any 1 year of the contract or that includes an unfunded 
     contingent liability in excess of $20,000,000; or (2) a 
     contract for advance procurement leading to a multiyear 
     contract that employs economic order quantity procurement in 
     excess of $20,000,000 in any 1 year, unless the congressional 
     defense committees have been notified at least 30 days in 
     advance of the proposed contract award: Provided, That no 
     part of

[[Page 15467]]

     any appropriation contained in this Act shall be available to 
     initiate a multiyear contract for which the economic order 
     quantity advance procurement is not funded at least to the 
     limits of the Government's liability: Provided further, That 
     no part of any appropriation contained in this Act shall be 
     available to initiate multiyear procurement contracts for any 
     systems or component thereof if the value of the multiyear 
     contract would exceed $500,000,000 unless specifically 
     provided in this Act: Provided further, That no multiyear 
     procurement contract can be terminated without 10-day prior 
     notification to the congressional defense committees: 
     Provided further, That the execution of multiyear authority 
     shall require the use of a present value analysis to 
     determine lowest cost compared to an annual procurement.
       Funds appropriated in title III of this Act may be used for 
     multiyear procurement contracts as follows:
       C-130 aircraft;
       FMTV; and
       F/A-18E and F engine.
       Sec. 8009. Within the funds appropriated for the operation 
     and maintenance of the Armed Forces, funds are hereby 
     appropriated pursuant to section 401 of title 10, United 
     States Code, for humanitarian and civic assistance costs 
     under chapter 20 of title 10, United States Code. Such funds 
     may also be obligated for humanitarian and civic assistance 
     costs incidental to authorized operations and pursuant to 
     authority granted in section 401 of chapter 20 of title 10, 
     United States Code, and these obligations shall be reported 
     to the Congress as of September 30 of each year: Provided, 
     That funds available for operation and maintenance shall be 
     available for providing humanitarian and similar assistance 
     by using Civic Action Teams in the Trust Territories of the 
     Pacific Islands and freely associated states of Micronesia, 
     pursuant to the Compact of Free Association as authorized by 
     Public Law 99-239: Provided further, That upon a 
     determination by the Secretary of the Army that such action 
     is beneficial for graduate medical education programs 
     conducted at Army medical facilities located in Hawaii, the 
     Secretary of the Army may authorize the provision of medical 
     services at such facilities and transportation to such 
     facilities, on a nonreimbursable basis, for civilian patients 
     from American Samoa, the Commonwealth of the Northern Mariana 
     Islands, the Marshall Islands, the Federated States of 
     Micronesia, Palau, and Guam.
       Sec. 8010. (a) During fiscal year 2003, the civilian 
     personnel of the Department of Defense may not be managed on 
     the basis of any end-strength, and the management of such 
     personnel during that fiscal year shall not be subject to any 
     constraint or limitation (known as an end-strength) on the 
     number of such personnel who may be employed on the last day 
     of such fiscal year.
       (b) The fiscal year 2004 budget request for the Department 
     of Defense as well as all justification material and other 
     documentation supporting the fiscal year 2004 Department of 
     Defense budget request shall be prepared and submitted to the 
     Congress as if subsections (a) and (b) of this provision were 
     effective with regard to fiscal year 2004.
       (c) Nothing in this section shall be construed to apply to 
     military (civilian) technicians.
       Sec. 8011. Notwithstanding any other provision of law, none 
     of the funds made available by this Act shall be used by the 
     Department of Defense to exceed, outside the 50 United 
     States, its territories, and the District of Columbia, 
     125,000 civilian workyears: Provided, That workyears shall be 
     applied as defined in the Federal Personnel Manual: Provided 
     further, That workyears expended in dependent student hiring 
     programs for disadvantaged youths shall not be included in 
     this workyear limitation.
       Sec. 8012. None of the funds made available by this Act 
     shall be used in any way, directly or indirectly, to 
     influence congressional action on any legislation or 
     appropriation matters pending before the Congress.
       Sec. 8013. None of the funds appropriated by this Act shall 
     be available for the basic pay and allowances of any member 
     of the Army participating as a full-time student and 
     receiving benefits paid by the Secretary of Veterans Affairs 
     from the Department of Defense Education Benefits Fund when 
     time spent as a full-time student is credited toward 
     completion of a service commitment: Provided, That this 
     subsection shall not apply to those members who have 
     reenlisted with this option prior to October 1, 1987: 
     Provided further, That this subsection applies only to active 
     components of the Army.
       Sec. 8014. None of the funds appropriated by this Act shall 
     be available to convert to contractor performance an activity 
     or function of the Department of Defense that, on or after 
     the date of the enactment of this Act, is performed by more 
     than 10 Department of Defense civilian employees until a most 
     efficient and cost-effective organization analysis is 
     completed on such activity or function and certification of 
     the analysis is made to the Committees on Appropriations of 
     the House of Representatives and the Senate: Provided, That 
     this section and subsections (a), (b), and (c) of 10 U.S.C. 
     2461 shall not apply to a commercial or industrial type 
     function of the Department of Defense that: (1) is included 
     on the procurement list established pursuant to section 2 of 
     the Act of June 25, 1938 (41 U.S.C. 47), popularly referred 
     to as the Javits-Wagner-O'Day Act; (2) is planned to be 
     converted to performance by a qualified nonprofit agency for 
     the blind or by a qualified nonprofit agency for other 
     severely handicapped individuals in accordance with that Act; 
     or (3) is planned to be converted to performance by a 
     qualified firm under 51 percent ownership by an Indian tribe, 
     as defined in section 450b(e) of title 25, United States 
     Code, or a Native Hawaiian organization, as defined in 
     section 637(a)(15) of title 15, United States Code.


                          (transfer of funds)

       Sec. 8015. Funds appropriated in title III of this Act for 
     the Department of Defense Pilot Mentor-Protege Program may be 
     transferred to any other appropriation contained in this Act 
     solely for the purpose of implementing a Mentor-Protege 
     Program developmental assistance agreement pursuant to 
     section 831 of the National Defense Authorization Act for 
     Fiscal Year 1991 (Public Law 101-510; 10 U.S.C. 2301 note), 
     as amended, under the authority of this provision or any 
     other transfer authority contained in this Act.
       Sec. 8016. None of the funds in this Act may be available 
     for the purchase by the Department of Defense (and its 
     departments and agencies) of welded shipboard anchor and 
     mooring chain 4 inches in diameter and under unless the 
     anchor and mooring chain are manufactured in the United 
     States from components which are substantially manufactured 
     in the United States: Provided, That for the purpose of this 
     section manufactured will include cutting, heat treating, 
     quality control, testing of chain and welding (including the 
     forging and shot blasting process): Provided further, That 
     for the purpose of this section substantially all of the 
     components of anchor and mooring chain shall be considered to 
     be produced or manufactured in the United States if the 
     aggregate cost of the components produced or manufactured in 
     the United States exceeds the aggregate cost of the 
     components produced or manufactured outside the United 
     States: Provided further, That when adequate domestic 
     supplies are not available to meet Department of Defense 
     requirements on a timely basis, the Secretary of the service 
     responsible for the procurement may waive this restriction on 
     a case-by-case basis by certifying in writing to the 
     Committees on Appropriations that such an acquisition must be 
     made in order to acquire capability for national security 
     purposes.
       Sec. 8017. None of the funds appropriated by this Act 
     available for the Civilian Health and Medical Program of the 
     Uniformed Services (CHAMPUS) or TRICARE shall be available 
     for the reimbursement of any health care provider for 
     inpatient mental health service for care received when a 
     patient is referred to a provider of inpatient mental health 
     care or residential treatment care by a medical or health 
     care professional having an economic interest in the facility 
     to which the patient is referred: Provided, That this 
     limitation does not apply in the case of inpatient mental 
     health services provided under the program for persons with 
     disabilities under subsection (d) of section 1079 of title 
     10, United States Code, provided as partial hospital care, or 
     provided pursuant to a waiver authorized by the Secretary of 
     Defense because of medical or psychological circumstances of 
     the patient that are confirmed by a health professional who 
     is not a Federal employee after a review, pursuant to rules 
     prescribed by the Secretary, which takes into account the 
     appropriate level of care for the patient, the intensity of 
     services required by the patient, and the availability of 
     that care.
       Sec. 8018. Notwithstanding any other provision of law, 
     during the current fiscal year, the Secretary of Defense may, 
     by executive agreement, establish with host nation 
     governments in NATO member states a separate account into 
     which such residual value amounts negotiated in the return of 
     United States military installations in NATO member states 
     may be deposited, in the currency of the host nation, in lieu 
     of direct monetary transfers to the United States Treasury: 
     Provided, That such credits may be utilized only for the 
     construction of facilities to support United States military 
     forces in that host nation, or such real property maintenance 
     and base operating costs that are currently executed through 
     monetary transfers to such host nations: Provided further, 
     That the Department of Defense's budget submission for fiscal 
     year 2004 shall identify such sums anticipated in residual 
     value settlements, and identify such construction, real 
     property maintenance or base operating costs that shall be 
     funded by the host nation through such credits: Provided 
     further, That all military construction projects to be 
     executed from such accounts must be previously approved in a 
     prior Act of Congress: Provided further, That each such 
     executive agreement with a NATO member host nation shall be 
     reported to the congressional defense committees, the 
     Committee on International Relations of the House of 
     Representatives and the Committee on Foreign Relations of the 
     Senate 30 days prior to the conclusion and endorsement of any 
     such agreement established under this provision.
       Sec. 8019. None of the funds available to the Department of 
     Defense may be used to demilitarize or dispose of M-1 
     Carbines, M-1 Garand rifles, M-14 rifles, .22 caliber rifles, 
     .30 caliber rifles, or M-1911 pistols.
       Sec. 8020. No more than $500,000 of the funds appropriated 
     or made available in this Act shall be used during a single 
     fiscal year for any single relocation of an organization, 
     unit, activity or function of the Department of Defense into 
     or within the National Capital Region: Provided, That the 
     Secretary of Defense may waive this restriction on a case-by-
     case basis by certifying in writing to the congressional 
     defense committees that such a relocation is required in the 
     best interest of the Government.
       Sec. 8021. (a) In addition to the funds provided elsewhere 
     in this Act, $8,000,000 is appropriated only for incentive 
     payments authorized

[[Page 15468]]

     by section 504 of the Indian Finance Act of 1974 (25 U.S.C. 
     1544) to defense contractors at any tier which make 
     subcontract awards to subcontractors or suppliers owned by 
     entities defined pursuant to 25 U.S.C. 1544 and 4221(9); and
       (b) Section 8022 of the Department of Defense Appropriation 
     Act (Public Law 106-259) is amended by striking out the 
     period and adding ``: Provided further, That notwithstanding 
     41 U.S.C. Sec. 430, this section shall be applicable to any 
     acquisition for goods and services, including a contract and 
     subcontracts for procurement of commercial items whenever the 
     prime contract amount is over $500,000 and involves the 
     expenditure of funds appropriated by this or any other 
     Act.''.
       Sec. 8022. None of the funds appropriated by this Act shall 
     be available to perform any cost study pursuant to the 
     provisions of OMB Circular A-76 if the study being performed 
     exceeds a period of 24 months after initiation of such study 
     with respect to a single function activity or 48 months after 
     initiation of such study for a multi-function activity.
       Sec. 8023. Funds appropriated by this Act for the American 
     Forces Information Service shall not be used for any national 
     or international political or psychological activities.
       Sec. 8024. Notwithstanding any other provision of law or 
     regulation, the Secretary of Defense may adjust wage rates 
     for civilian employees hired for certain health care 
     occupations as authorized for the Secretary of Veterans 
     Affairs by section 7455 of title 38, United States Code.
       Sec. 8025. (a) Of the funds for the procurement of supplies 
     or services appropriated by this Act, qualified nonprofit 
     agencies for the blind or other severely handicapped shall be 
     afforded the maximum practicable opportunity to participate 
     as subcontractors and suppliers in the performance of 
     contracts let by the Department of Defense.
       (b) During the current fiscal year, a business concern 
     which has negotiated with a military service or defense 
     agency a subcontracting plan for the participation by small 
     business concerns pursuant to section 8(d) of the Small 
     Business Act (15 U.S.C. 637(d)) shall be given credit toward 
     meeting that subcontracting goal for any purchases made from 
     qualified nonprofit agencies for the blind or other severely 
     handicapped.
       (c) For the purpose of this section, the phrase ``qualified 
     nonprofit agency for the blind or other severely 
     handicapped'' means a nonprofit agency for the blind or other 
     severely handicapped that has been approved by the Committee 
     for the Purchase from the Blind and Other Severely 
     Handicapped under the Javits-Wagner-O'Day Act (41 U.S.C. 46-
     48).
       Sec. 8026. During the current fiscal year, net receipts 
     pursuant to collections from third party payers pursuant to 
     section 1095 of title 10, United States Code, shall be made 
     available to the local facility of the uniformed services 
     responsible for the collections and shall be over and above 
     the facility's direct budget amount.
       Sec. 8027. During the current fiscal year, the Department 
     of Defense is authorized to incur obligations of not to 
     exceed $350,000,000 for purposes specified in section 
     2350j(c) of title 10, United States Code, in anticipation of 
     receipt of contributions, only from the Government of Kuwait, 
     under that section: Provided, That upon receipt, such 
     contributions from the Government of Kuwait shall be credited 
     to the appropriations or fund which incurred such 
     obligations.
       Sec. 8028. Of the funds made available in this Act, not 
     less than $21,188,000 shall be available for the Civil Air 
     Patrol Corporation, of which $19,688,000 shall be available 
     for Civil Air Patrol Corporation operation and maintenance to 
     support readiness activities which includes $1,500,000 for 
     the Civil Air Patrol counterdrug program: Provided, That 
     funds identified for ``Civil Air Patrol'' under this section 
     are intended for and shall be for the exclusive use of the 
     Civil Air Patrol Corporation and not for the Air Force or any 
     unit thereof.
       Sec. 8029. (a) None of the funds appropriated in this Act 
     are available to establish a new Department of Defense 
     (department) federally funded research and development center 
     (FFRDC), either as a new entity, or as a separate entity 
     administrated by an organization managing another FFRDC, or 
     as a nonprofit membership corporation consisting of a 
     consortium of other FFRDCs and other non-profit entities.
       (b) No member of a Board of Directors, Trustees, Overseers, 
     Advisory Group, Special Issues Panel, Visiting Committee, or 
     any similar entity of a defense FFRDC, and no paid consultant 
     to any defense FFRDC, except when acting in a technical 
     advisory capacity, may be compensated for his or her services 
     as a member of such entity, or as a paid consultant by more 
     than one FFRDC in a fiscal year: Provided, That a member of 
     any such entity referred to previously in this subsection 
     shall be allowed travel expenses and per diem as authorized 
     under the Federal Joint Travel Regulations, when engaged in 
     the performance of membership duties.
       (c) Notwithstanding any other provision of law, none of the 
     funds available to the department from any source during 
     fiscal year 2003 may be used by a defense FFRDC, through a 
     fee or other payment mechanism, for construction of new 
     buildings, for payment of cost sharing for projects funded by 
     Government grants, for absorption of contract overruns, or 
     for certain charitable contributions, not to include employee 
     participation in community service and/or development.
       (d) Notwithstanding any other provision of law, of the 
     funds available to the department during fiscal year 2003, 
     not more than 6,300 staff years of technical effort (staff 
     years) may be funded for defense FFRDCs: Provided, That of 
     the specific amount referred to previously in this 
     subsection, not more than 1,029 staff years may be funded for 
     the defense studies and analysis FFRDCs.
       (e) The Secretary of Defense shall, with the submission of 
     the department's fiscal year 2004 budget request, submit a 
     report presenting the specific amounts of staff years of 
     technical effort to be allocated for each defense FFRDC 
     during that fiscal year.
       (f) Notwithstanding any other provision of this Act, the 
     total amount appropriated in this Act for FFRDCs is hereby 
     reduced by $91,600,000.
       Sec. 8030. None of the funds appropriated or made available 
     in this Act shall be used to procure carbon, alloy or armor 
     steel plate for use in any Government-owned facility or 
     property under the control of the Department of Defense which 
     were not melted and rolled in the United States or Canada: 
     Provided, That these procurement restrictions shall apply to 
     any and all Federal Supply Class 9515, American Society of 
     Testing and Materials (ASTM) or American Iron and Steel 
     Institute (AISI) specifications of carbon, alloy or armor 
     steel plate: Provided further, That the Secretary of the 
     military department responsible for the procurement may waive 
     this restriction on a case-by-case basis by certifying in 
     writing to the Committees on Appropriations of the House of 
     Representatives and the Senate that adequate domestic 
     supplies are not available to meet Department of Defense 
     requirements on a timely basis and that such an acquisition 
     must be made in order to acquire capability for national 
     security purposes: Provided further, That these restrictions 
     shall not apply to contracts which are in being as of the 
     date of the enactment of this Act.
       Sec. 8031. For the purposes of this Act, the term 
     ``congressional defense committees'' means the Armed Services 
     Committee of the House of Representatives, the Armed Services 
     Committee of the Senate, the Subcommittee on Defense of the 
     Committee on Appropriations of the Senate, and the 
     Subcommittee on Defense of the Committee on Appropriations of 
     the House of Representatives.
       Sec. 8032. During the current fiscal year, the Department 
     of Defense may acquire the modification, depot maintenance 
     and repair of aircraft, vehicles and vessels as well as the 
     production of components and other Defense-related articles, 
     through competition between Department of Defense depot 
     maintenance activities and private firms: Provided, That the 
     Senior Acquisition Executive of the military department or 
     defense agency concerned, with power of delegation, shall 
     certify that successful bids include comparable estimates of 
     all direct and indirect costs for both public and private 
     bids: Provided further, That Office of Management and Budget 
     Circular A-76 shall not apply to competitions conducted under 
     this section.
       Sec. 8033. (a)(1) If the Secretary of Defense, after 
     consultation with the United States Trade Representative, 
     determines that a foreign country which is party to an 
     agreement described in paragraph (2) has violated the terms 
     of the agreement by discriminating against certain types of 
     products produced in the United States that are covered by 
     the agreement, the Secretary of Defense shall rescind the 
     Secretary's blanket waiver of the Buy American Act with 
     respect to such types of products produced in that foreign 
     country.
       (2) An agreement referred to in paragraph (1) is any 
     reciprocal defense procurement memorandum of understanding, 
     between the United States and a foreign country pursuant to 
     which the Secretary of Defense has prospectively waived the 
     Buy American Act for certain products in that country.
       (b) The Secretary of Defense shall submit to the Congress a 
     report on the amount of Department of Defense purchases from 
     foreign entities in fiscal year 2003. Such report shall 
     separately indicate the dollar value of items for which the 
     Buy American Act was waived pursuant to any agreement 
     described in subsection (a)(2), the Trade Agreement Act of 
     1979 (19 U.S.C. 2501 et seq.), or any international agreement 
     to which the United States is a party.
       (c) For purposes of this section, the term ``Buy American 
     Act'' means title III of the Act entitled ``An Act making 
     appropriations for the Treasury and Post Office Departments 
     for the fiscal year ending June 30, 1934, and for other 
     purposes'', approved March 3, 1933 (41 U.S.C. 10a et seq.).
       Sec. 8034. Appropriations contained in this Act that remain 
     available at the end of the current fiscal year as a result 
     of energy cost savings realized by the Department of Defense 
     shall remain available for obligation for the next fiscal 
     year to the extent, and for the purposes, provided in section 
     2865 of title 10, United States Code.


                     (including transfer of funds)

       Sec. 8035. Amounts deposited during the current fiscal year 
     to the special account established under 40 U.S.C. 485(h)(2) 
     and to the special account established under 10 U.S.C. 
     2667(d)(1) are appropriated and shall be available until 
     transferred by the Secretary of Defense to current applicable 
     appropriations or funds of the Department of Defense under 
     the terms and conditions specified by 40 U.S.C. 485(h)(2)(A) 
     and (B) and 10 U.S.C. 2667(d)(1)(B), to be merged with and to 
     be available for the same time period and the same purposes 
     as the appropriation to which transferred.
       Sec. 8036. The President shall include with each budget for 
     a fiscal year submitted to the

[[Page 15469]]

     Congress under section 1105 of title 31, United States Code, 
     materials that shall identify clearly and separately the 
     amounts requested in the budget for appropriation for that 
     fiscal year for salaries and expenses related to 
     administrative activities of the Department of Defense, the 
     military departments, and the defense agencies.
       Sec. 8037. Notwithstanding any other provision of law, 
     funds available for ``Drug Interdiction and Counter-Drug 
     Activities, Defense'' may be obligated for the Young Marines 
     program.


                     (including transfer of funds)

       Sec. 8038. During the current fiscal year, amounts 
     contained in the Department of Defense Overseas Military 
     Facility Investment Recovery Account established by section 
     2921(c)(1) of the National Defense Authorization Act of 1991 
     (Public Law 101-510; 10 U.S.C. 2687 note) shall be available 
     until expended for the payments specified by section 
     2921(c)(2) of that Act.
       Sec. 8039. (a) In General.--Notwithstanding any other 
     provision of law, the Secretary of the Air Force may convey 
     at no cost to the Air Force, without consideration, to Indian 
     tribes located in the States of North Dakota, South Dakota, 
     Montana, and Minnesota relocatable military housing units 
     located at Grand Forks Air Force Base and Minot Air Force 
     Base that are excess to the needs of the Air Force.
       (b) Processing of Requests.--The Secretary of the Air Force 
     shall convey, at no cost to the Air Force, military housing 
     units under subsection (a) in accordance with the request for 
     such units that are submitted to the Secretary by the 
     Operation Walking Shield Program on behalf of Indian tribes 
     located in the States of North Dakota, South Dakota, Montana, 
     and Minnesota.
       (c) Resolution of Housing Unit Conflicts.--The Operation 
     Walking Shield program shall resolve any conflicts among 
     requests of Indian tribes for housing units under subsection 
     (a) before submitting requests to the Secretary of the Air 
     Force under subsection (b).
       (d) Indian Tribe Defined.--In this section, the term 
     ``Indian tribe'' means any recognized Indian tribe included 
     on the current list published by the Secretary of the 
     Interior under section 104 of the Federally Recognized Indian 
     Tribe Act of 1994 (Public Law 103-454; 108 Stat. 4792; 25 
     U.S.C. 479a-1).
       Sec. 8040. During the current fiscal year, appropriations 
     which are available to the Department of Defense for 
     operation and maintenance may be used to purchase items 
     having an investment item unit cost of not more than 
     $100,000: Provided, That the $100,000 limitation shall not 
     apply to amounts appropriated in this Act under the heading 
     ``Operation and Maintenance, Defense-Wide'' for expenses 
     related to certain classified activities.
       Sec. 8041. (a) During the current fiscal year, none of the 
     appropriations or funds available to the Department of 
     Defense Working Capital Funds shall be used for the purchase 
     of an investment item for the purpose of acquiring a new 
     inventory item for sale or anticipated sale during the 
     current fiscal year or a subsequent fiscal year to customers 
     of the Department of Defense Working Capital Funds if such an 
     item would not have been chargeable to the Department of 
     Defense Business Operations Fund during fiscal year 1994 and 
     if the purchase of such an investment item would be 
     chargeable during the current fiscal year to appropriations 
     made to the Department of Defense for procurement.
       (b) The fiscal year 2004 budget request for the Department 
     of Defense as well as all justification material and other 
     documentation supporting the fiscal year 2004 Department of 
     Defense budget shall be prepared and submitted to the 
     Congress on the basis that any equipment which was classified 
     as an end item and funded in a procurement appropriation 
     contained in this Act shall be budgeted for in a proposed 
     fiscal year 2004 procurement appropriation and not in the 
     supply management business area or any other area or category 
     of the Department of Defense Working Capital Funds.
       Sec. 8042. None of the funds appropriated by this Act for 
     programs of the Central Intelligence Agency shall remain 
     available for obligation beyond the current fiscal year, 
     except for funds appropriated for the Reserve for 
     Contingencies, which shall remain available until September 
     30, 2004: Provided, That funds appropriated, transferred, or 
     otherwise credited to the Central Intelligence Agency Central 
     Services Working Capital Fund during this or any prior or 
     subsequent fiscal year shall remain available until expended: 
     Provided further, That any funds appropriated or transferred 
     to the Central Intelligence Agency for agent operations and 
     for covert action programs authorized by the President under 
     section 503 of the National Security Act of 1947, as amended, 
     shall remain available until September 30, 2004.
       Sec. 8043. Notwithstanding any other provision of law, 
     funds made available in this Act for the Defense Intelligence 
     Agency may be used for the design, development, and 
     deployment of General Defense Intelligence Program 
     intelligence communications and intelligence information 
     systems for the Services, the Unified and Specified Commands, 
     and the component commands.
       Sec. 8044. Of the funds appropriated to the Department of 
     Defense under the heading ``Operation and Maintenance, 
     Defense-Wide'', not less than $10,000,000 shall be made 
     available only for the mitigation of environmental impacts, 
     including training and technical assistance to tribes, 
     related administrative support, the gathering of information, 
     documenting of environmental damage, and developing a system 
     for prioritization of mitigation and cost to complete 
     estimates for mitigation, on Indian lands resulting from 
     Department of Defense activities.
       Sec. 8045. Of the funds made available in this Act, not 
     less than $68,900,000 shall be available to maintain an 
     attrition reserve force of 18 B-52 aircraft, of which 
     $3,700,000 shall be available from ``Military Personnel, Air 
     Force'', $40,000,000 shall be available from ``Operation and 
     Maintenance, Air Force'', and $25,200,000 shall be available 
     from ``Aircraft Procurement, Air Force'': Provided, That the 
     Secretary of the Air Force shall maintain a total force of 94 
     B-52 aircraft, including 18 attrition reserve aircraft, 
     during fiscal year 2003: Provided further, That the Secretary 
     of Defense shall include in the Air Force budget request for 
     fiscal year 2004 amounts sufficient to maintain a B-52 force 
     totaling 94 aircraft.
       Sec. 8046. (a) None of the funds appropriated in this Act 
     may be expended by an entity of the Department of Defense 
     unless the entity, in expending the funds, complies with the 
     Buy American Act. For purposes of this subsection, the term 
     ``Buy American Act'' means title III of the Act entitled ``An 
     Act making appropriations for the Treasury and Post Office 
     Departments for the fiscal year ending June 30, 1934, and for 
     other purposes'', approved March 3, 1933 (41 U.S.C. 10a et 
     seq.).
       (b) If the Secretary of Defense determines that a person 
     has been convicted of intentionally affixing a label bearing 
     a ``Made in America'' inscription to any product sold in or 
     shipped to the United States that is not made in America, the 
     Secretary shall determine, in accordance with section 2410f 
     of title 10, United States Code, whether the person should be 
     debarred from contracting with the Department of Defense.
       (c) In the case of any equipment or products purchased with 
     appropriations provided under this Act, it is the sense of 
     the Congress that any entity of the Department of Defense, in 
     expending the appropriation, purchase only American-made 
     equipment and products, provided that American-made equipment 
     and products are cost-competitive, quality-competitive, and 
     available in a timely fashion.
       Sec. 8047. None of the funds appropriated by this Act shall 
     be available for a contract for studies, analysis, or 
     consulting services entered into without competition on the 
     basis of an unsolicited proposal unless the head of the 
     activity responsible for the procurement determines--
       (1) as a result of thorough technical evaluation, only one 
     source is found fully qualified to perform the proposed work;
       (2) the purpose of the contract is to explore an 
     unsolicited proposal which offers significant scientific or 
     technological promise, represents the product of original 
     thinking, and was submitted in confidence by one source; or
       (3) the purpose of the contract is to take advantage of 
     unique and significant industrial accomplishment by a 
     specific concern, or to insure that a new product or idea of 
     a specific concern is given financial support:
     Provided, That this limitation shall not apply to contracts 
     in an amount of less than $25,000, contracts related to 
     improvements of equipment that is in development or 
     production, or contracts as to which a civilian official of 
     the Department of Defense, who has been confirmed by the 
     Senate, determines that the award of such contract is in the 
     interest of the national defense.
       Sec. 8048. (a) Except as provided in subsections (b) and 
     (c), none of the funds made available by this Act may be 
     used--
       (1) to establish a field operating agency; or
       (2) to pay the basic pay of a member of the Armed Forces or 
     civilian employee of the department who is transferred or 
     reassigned from a headquarters activity if the member or 
     employee's place of duty remains at the location of that 
     headquarters.
       (b) The Secretary of Defense or Secretary of a military 
     department may waive the limitations in subsection (a), on a 
     case-by-case basis, if the Secretary determines, and 
     certifies to the Committees on Appropriations of the House of 
     Representatives and Senate that the granting of the waiver 
     will reduce the personnel requirements or the financial 
     requirements of the department.
       (c) This section does not apply to field operating agencies 
     funded within the National Foreign Intelligence Program.
       Sec. 8049. Notwithstanding section 303 of Public Law 96-487 
     or any other provision of law, the Secretary of the Navy is 
     authorized to lease real and personal property at Naval Air 
     Facility, Adak, Alaska, pursuant to 10 U.S.C. 2667(f), for 
     commercial, industrial or other purposes: Provided, That 
     notwithstanding any other provision of law, the Secretary of 
     the Navy may remove hazardous materials from facilities, 
     buildings, and structures at Adak, Alaska, and may demolish 
     or otherwise dispose of such facilities, buildings, and 
     structures.


                             (RESCISSIONS)

       Sec. 8050. Of the funds appropriated in Department of 
     Defense Appropriations Acts, the following funds are hereby 
     rescinded from the following accounts and programs in the 
     specified amounts:
       ``Procurement of Ammunition, Army, 2001/2003'', $4,000,000;
       ``Other Procurement, Army, 2001/2003'', $8,000,000;
       ``Other Procurement, Navy, 2001/2003'', $21,200,000;
       ``Missile Procurement, Army, 2002/2004'', $9,300,000;
       ``Procurement of Ammunition, Army, 2002/2004'', 
     $23,000,000;
       ``Other Procurement, Army, 2002/2004'', $26,200,000;
       ``Aircraft Procurement, Air Force, 2002/2004'', 
     $23,500,000;

[[Page 15470]]

       ``Missile Procurement, Air Force, 2002/2004'', $18,000,000;
       ``Research, Development, Test and Evaluation, Air Force, 
     2002/2003'', $32,000,000; and
       ``Research and Development, Defense-Wide, 2002/2003'', 
     $25,500,000.
       Sec. 8051. None of the funds available in this Act may be 
     used to reduce the authorized positions for military 
     (civilian) technicians of the Army National Guard, the Air 
     National Guard, Army Reserve and Air Force Reserve for the 
     purpose of applying any administratively imposed civilian 
     personnel ceiling, freeze, or reduction on military 
     (civilian) technicians, unless such reductions are a direct 
     result of a reduction in military force structure.
       Sec. 8052. None of the funds appropriated or otherwise made 
     available in this Act may be obligated or expended for 
     assistance to the Democratic People's Republic of North Korea 
     unless specifically appropriated for that purpose.
       Sec. 8053. During the current fiscal year, funds 
     appropriated in this Act are available to compensate members 
     of the National Guard for duty performed pursuant to a plan 
     submitted by a Governor of a State and approved by the 
     Secretary of Defense under section 112 of title 32, United 
     States Code: Provided, That during the performance of such 
     duty, the members of the National Guard shall be under State 
     command and control: Provided further, That such duty shall 
     be treated as full-time National Guard duty for purposes of 
     sections 12602(a)(2) and (b)(2) of title 10, United States 
     Code.
       Sec. 8054. Funds appropriated in this Act for operation and 
     maintenance of the Military Departments, Combatant Commands 
     and Defense Agencies shall be available for reimbursement of 
     pay, allowances and other expenses which would otherwise be 
     incurred against appropriations for the National Guard and 
     Reserve when members of the National Guard and Reserve 
     provide intelligence or counterintelligence support to 
     Combatant Commands, Defense Agencies and Joint Intelligence 
     Activities, including the activities and programs included 
     within the National Foreign Intelligence Program (NFIP), the 
     Joint Military Intelligence Program (JMIP), and the Tactical 
     Intelligence and Related Activities (TIARA) aggregate: 
     Provided, That nothing in this section authorizes deviation 
     from established Reserve and National Guard personnel and 
     training procedures.
       Sec. 8055. During the current fiscal year, none of the 
     funds appropriated in this Act may be used to reduce the 
     civilian medical and medical support personnel assigned to 
     military treatment facilities below the September 30, 2002 
     level: Provided, That the Service Surgeons General may waive 
     this section by certifying to the congressional defense 
     committees that the beneficiary population is declining in 
     some catchment areas and civilian strength reductions may be 
     consistent with responsible resource stewardship and 
     capitation-based budgeting.
       Sec. 8056. (a) Limitation on Pentagon Renovation Costs.--
     Not later than the date each year on which the President 
     submits to Congress the budget under section 1105 of title 
     31, United States Code, the Secretary of Defense shall submit 
     to Congress a certification that the total cost for the 
     planning, design, construction, and installation of equipment 
     for the renovation of wedges 2 through 5 of the Pentagon 
     Reservation, cumulatively, will not exceed four times the 
     total cost for the planning, design, construction, and 
     installation of equipment for the renovation of wedge 1.
       (b) Annual Adjustment.--For purposes of applying the 
     limitation in subsection (a), the Secretary shall adjust the 
     cost for the renovation of wedge 1 by any increase or 
     decrease in costs attributable to economic inflation, based 
     on the most recent economic assumptions issued by the Office 
     of Management and Budget for use in preparation of the budget 
     of the United States under section 1104 of title 31, United 
     States Code.
       (c) Exclusion of Certain Costs.--For purposes of 
     calculating the limitation in subsection (a), the total cost 
     for wedges 2 through 5 shall not include--
       (1) any repair or reconstruction cost incurred as a result 
     of the terrorist attack on the Pentagon that occurred on 
     September 11, 2001;
       (2) any increase in costs for wedges 2 through 5 
     attributable to compliance with new requirements of Federal, 
     State, or local laws; and
       (3) any increase in costs attributable to additional 
     security requirements that the Secretary of Defense considers 
     essential to provide a safe and secure working environment.
       (d) Certification Cost Reports.--As part of the annual 
     certification under subsection (a), the Secretary shall 
     report the projected cost (as of the time of the 
     certification) for--
       (1) the renovation of each wedge, including the amount 
     adjusted or otherwise excluded for such wedge under the 
     authority of paragraphs (2) and (3) of subsection (c) for the 
     period covered by the certification; and
       (2) the repair and reconstruction of wedges 1 and 2 in 
     response to the terrorist attack on the Pentagon that 
     occurred on September 11, 2001.
       (e) Duration of Certification Requirement.--The requirement 
     to make an annual certification under subsection (a) shall 
     apply until the Secretary certifies to Congress that the 
     renovation of the Pentagon Reservation is completed.
       Sec. 8057. Notwithstanding any other provision of law, that 
     not more than 35 percent of funds provided in this Act for 
     environmental remediation may be obligated under indefinite 
     delivery/indefinite quantity contracts with a total contract 
     value of $130,000,000 or higher.
       Sec. 8058. (a) None of the funds available to the 
     Department of Defense for any fiscal year for drug 
     interdiction or counter-drug activities may be transferred to 
     any other department or agency of the United States except as 
     specifically provided in an appropriations law.
       (b) None of the funds available to the Central Intelligence 
     Agency for any fiscal year for drug interdiction and counter-
     drug activities may be transferred to any other department or 
     agency of the United States except as specifically provided 
     in an appropriations law.


                          (transfer of funds)

       Sec. 8059. Appropriations available in this Act under the 
     heading ``Operation and Maintenance, Defense-Wide'' for 
     increasing energy and water efficiency in Federal buildings 
     may, during their period of availability, be transferred to 
     other appropriations or funds of the Department of Defense 
     for projects related to increasing energy and water 
     efficiency, to be merged with and to be available for the 
     same general purposes, and for the same time period, as the 
     appropriation or fund to which transferred.
       Sec. 8060. None of the funds appropriated by this Act may 
     be used for the procurement of ball and roller bearings other 
     than those produced by a domestic source and of domestic 
     origin: Provided, That the Secretary of the military 
     department responsible for such procurement may waive this 
     restriction on a case-by-case basis by certifying in writing 
     to the Committees on Appropriations of the House of 
     Representatives and the Senate, that adequate domestic 
     supplies are not available to meet Department of Defense 
     requirements on a timely basis and that such an acquisition 
     must be made in order to acquire capability for national 
     security purposes: Provided further, That this restriction 
     shall not apply to the purchase of ``commercial items'', as 
     defined by section 4(12) of the Office of Federal Procurement 
     Policy Act, except that the restriction shall apply to ball 
     or roller bearings purchased as end items.
       Sec. 8061. Notwithstanding any other provision of law, 
     funds available to the Department of Defense shall be made 
     available to provide transportation of medical supplies and 
     equipment, on a nonreimbursable basis, to American Samoa, and 
     funds available to the Department of Defense shall be made 
     available to provide transportation of medical supplies and 
     equipment, on a nonreimbursable basis, to the Indian Health 
     Service when it is in conjunction with a civil-military 
     project.
       Sec. 8062. None of the funds in this Act may be used to 
     purchase any supercomputer which is not manufactured in the 
     United States, unless the Secretary of Defense certifies to 
     the congressional defense committees that such an acquisition 
     must be made in order to acquire capability for national 
     security purposes that is not available from United States 
     manufacturers.
       Sec. 8063. Notwithstanding any other provision of law, the 
     Naval shipyards of the United States shall be eligible to 
     participate in any manufacturing extension program financed 
     by funds appropriated in this or any other Act.
       Sec. 8064. Notwithstanding any other provision of law, each 
     contract awarded by the Department of Defense during the 
     current fiscal year for construction or service performed in 
     whole or in part in a State (as defined in section 381(d) of 
     title 10, United States Code) which is not contiguous with 
     another State and has an unemployment rate in excess of the 
     national average rate of unemployment as determined by the 
     Secretary of Labor, shall include a provision requiring the 
     contractor to employ, for the purpose of performing that 
     portion of the contract in such State that is not contiguous 
     with another State, individuals who are residents of such 
     State and who, in the case of any craft or trade, possess or 
     would be able to acquire promptly the necessary skills: 
     Provided, That the Secretary of Defense may waive the 
     requirements of this section, on a case-by-case basis, in the 
     interest of national security.
       Sec. 8065. None of the funds made available in this or any 
     other Act may be used to pay the salary of any officer or 
     employee of the Department of Defense who approves or 
     implements the transfer of administrative responsibilities or 
     budgetary resources of any program, project, or activity 
     financed by this Act to the jurisdiction of another Federal 
     agency not financed by this Act without the express 
     authorization of Congress: Provided, That this limitation 
     shall not apply to transfers of funds expressly provided for 
     in Defense Appropriations Acts, or provisions of Acts 
     providing supplemental appropriations for the Department of 
     Defense.
       Sec. 8066. (a) Limitation on Transfer of Defense Articles 
     and Services.--Notwithstanding any other provision of law, 
     none of the funds available to the Department of Defense for 
     the current fiscal year may be obligated or expended to 
     transfer to another nation or an international organization 
     any defense articles or services (other than intelligence 
     services) for use in the activities described in subsection 
     (b) unless the congressional defense committees, the 
     Committee on International Relations of the House of 
     Representatives, and the Committee on Foreign Relations of 
     the Senate are notified 15 days in advance of such transfer.
       (b) Covered Activities.--This section applies to--
       (1) any international peacekeeping or peace-enforcement 
     operation under the authority of chapter VI or chapter VII of 
     the United Nations Charter under the authority of a United 
     Nations Security Council resolution; and
       (2) any other international peacekeeping, peace-
     enforcement, or humanitarian assistance operation.

[[Page 15471]]

       (c) Required Notice.--A notice under subsection (a) shall 
     include the following:
       (1) A description of the equipment, supplies, or services 
     to be transferred.
       (2) A statement of the value of the equipment, supplies, or 
     services to be transferred.
       (3) In the case of a proposed transfer of equipment or 
     supplies--
       (A) a statement of whether the inventory requirements of 
     all elements of the Armed Forces (including the reserve 
     components) for the type of equipment or supplies to be 
     transferred have been met; and
       (B) a statement of whether the items proposed to be 
     transferred will have to be replaced and, if so, how the 
     President proposes to provide funds for such replacement.
       Sec. 8067. To the extent authorized by subchapter VI of 
     chapter 148 of title 10, United States Code, the Secretary of 
     Defense may issue loan guarantees in support of United States 
     defense exports not otherwise provided for: Provided, That 
     the total contingent liability of the United States for 
     guarantees issued under the authority of this section may not 
     exceed $15,000,000,000: Provided further, That the exposure 
     fees charged and collected by the Secretary for each 
     guarantee shall be paid by the country involved and shall not 
     be financed as part of a loan guaranteed by the United 
     States: Provided further, That the Secretary shall provide 
     quarterly reports to the Committees on Appropriations, Armed 
     Services, and Foreign Relations of the Senate and the 
     Committees on Appropriations, Armed Services, and 
     International Relations in the House of Representatives on 
     the implementation of this program: Provided further, That 
     amounts charged for administrative fees and deposited to the 
     special account provided for under section 2540c(d) of title 
     10, shall be available for paying the costs of administrative 
     expenses of the Department of Defense that are attributable 
     to the loan guarantee program under subchapter VI of chapter 
     148 of title 10, United States Code.
       Sec. 8068. None of the funds available to the Department of 
     Defense under this Act shall be obligated or expended to pay 
     a contractor under a contract with the Department of Defense 
     for costs of any amount paid by the contractor to an employee 
     when--
       (1) such costs are for a bonus or otherwise in excess of 
     the normal salary paid by the contractor to the employee; and
       (2) such bonus is part of restructuring costs associated 
     with a business combination.
       Sec. 8069. (a) None of the funds appropriated or otherwise 
     made available in this Act may be used to transport or 
     provide for the transportation of chemical munitions or 
     agents to the Johnston Atoll for the purpose of storing or 
     demilitarizing such munitions or agents.
       (b) The prohibition in subsection (a) shall not apply to 
     any obsolete World War II chemical munition or agent of the 
     United States found in the World War II Pacific Theater of 
     Operations.
       (c) The President may suspend the application of subsection 
     (a) during a period of war in which the United States is a 
     party.


                     (including transfer of funds)

       Sec. 8070. During the current fiscal year, no more than 
     $30,000,000 of appropriations made in this Act under the 
     heading ``Operation and Maintenance, Defense-Wide'' may be 
     transferred to appropriations available for the pay of 
     military personnel, to be merged with, and to be available 
     for the same time period as the appropriations to which 
     transferred, to be used in support of such personnel in 
     connection with support and services for eligible 
     organizations and activities outside the Department of 
     Defense pursuant to section 2012 of title 10, United States 
     Code.
       Sec. 8071. During the current fiscal year, in the case of 
     an appropriation account of the Department of Defense for 
     which the period of availability for obligation has expired 
     or which has closed under the provisions of section 1552 of 
     title 31, United States Code, and which has a negative 
     unliquidated or unexpended balance, an obligation or an 
     adjustment of an obligation may be charged to any current 
     appropriation account for the same purpose as the expired or 
     closed account if--
       (1) the obligation would have been properly chargeable 
     (except as to amount) to the expired or closed account before 
     the end of the period of availability or closing of that 
     account;
       (2) the obligation is not otherwise properly chargeable to 
     any current appropriation account of the Department of 
     Defense; and
       (3) in the case of an expired account, the obligation is 
     not chargeable to a current appropriation of the Department 
     of Defense under the provisions of section 1405(b)(8) of the 
     National Defense Authorization Act for Fiscal Year 1991, 
     Public Law 101-510, as amended (31 U.S.C. 1551 note): 
     Provided, That in the case of an expired account, if 
     subsequent review or investigation discloses that there was 
     not in fact a negative unliquidated or unexpended balance in 
     the account, any charge to a current account under the 
     authority of this section shall be reversed and recorded 
     against the expired account: Provided further, That the total 
     amount charged to a current appropriation under this section 
     may not exceed an amount equal to 1 percent of the total 
     appropriation for that account.
       Sec. 8072. Funds appropriated in title II of this Act and 
     for the Defense Health Program in title VI of this Act for 
     supervision and administration costs for facilities 
     maintenance and repair, minor construction, or design 
     projects may be obligated at the time the reimbursable order 
     is accepted by the performing activity: Provided, That for 
     the purpose of this section, supervision and administration 
     costs includes all in-house Government cost.
       Sec. 8073. During the current fiscal year and hereafter, 
     the Secretary of Defense may waive reimbursement of the cost 
     of conferences, seminars, courses of instruction, or similar 
     educational activities of the Asia-Pacific Center for 
     Security Studies for military officers and civilian officials 
     of foreign nations if the Secretary determines that 
     attendance by such personnel, without reimbursement, is in 
     the national security interest of the United States: 
     Provided, That costs for which reimbursement is waived 
     pursuant to this section shall be paid from appropriations 
     available for the Asia-Pacific Center.
       Sec. 8074. (a) Notwithstanding any other provision of law, 
     the Chief of the National Guard Bureau may permit the use of 
     equipment of the National Guard Distance Learning Project by 
     any person or entity on a space-available, reimbursable 
     basis. The Chief of the National Guard Bureau shall establish 
     the amount of reimbursement for such use on a case-by-case 
     basis.
       (b) Amounts collected under subsection (a) shall be 
     credited to funds available for the National Guard Distance 
     Learning Project and be available to defray the costs 
     associated with the use of equipment of the project under 
     that subsection. Such funds shall be available for such 
     purposes without fiscal year limitation.
       Sec. 8075. Using funds available by this Act or any other 
     Act, the Secretary of the Air Force, pursuant to a 
     determination under section 2690 of title 10, United States 
     Code, may implement cost-effective agreements for required 
     heating facility modernization in the Kaiserslautern Military 
     Community in the Federal Republic of Germany: Provided, That 
     in the City of Kaiserslautern such agreements will include 
     the use of United States anthracite as the base load energy 
     for municipal district heat to the United States Defense 
     installations: Provided further, That at Landstuhl Army 
     Regional Medical Center and Ramstein Air Base, furnished heat 
     may be obtained from private, regional or municipal services, 
     if provisions are included for the consideration of United 
     States coal as an energy source.
       Sec. 8076. None of the funds appropriated in title IV of 
     this Act may be used to procure end-items for delivery to 
     military forces for operational training, operational use or 
     inventory requirements: Provided, That this restriction does 
     not apply to end-items used in development, prototyping, and 
     test activities preceding and leading to acceptance for 
     operational use: Provided further, That this restriction does 
     not apply to programs funded within the National Foreign 
     Intelligence Program: Provided further, That the Secretary of 
     Defense may waive this restriction on a case-by-case basis by 
     certifying in writing to the Committees on Appropriations of 
     the House of Representatives and the Senate that it is in the 
     national security interest to do so.
       Sec. 8077. None of the funds made available in this Act may 
     be used to approve or license the sale of the F-22 advanced 
     tactical fighter to any foreign government.
       Sec. 8078. (a) The Secretary of Defense may, on a case-by-
     case basis, waive with respect to a foreign country each 
     limitation on the procurement of defense items from foreign 
     sources provided in law if the Secretary determines that the 
     application of the limitation with respect to that country 
     would invalidate cooperative programs entered into between 
     the Department of Defense and the foreign country, or would 
     invalidate reciprocal trade agreements for the procurement of 
     defense items entered into under section 2531 of title 10, 
     United States Code, and the country does not discriminate 
     against the same or similar defense items produced in the 
     United States for that country.
       (b) Subsection (a) applies with respect to--
       (1) contracts and subcontracts entered into on or after the 
     date of the enactment of this Act; and
       (2) options for the procurement of items that are exercised 
     after such date under contracts that are entered into before 
     such date if the option prices are adjusted for any reason 
     other than the application of a waiver granted under 
     subsection (a).
       (c) Subsection (a) does not apply to a limitation regarding 
     construction of public vessels, ball and roller bearings, 
     food, and clothing or textile materials as defined by section 
     11 (chapters 50-65) of the Harmonized Tariff Schedule and 
     products classified under headings 4010, 4202, 4203, 6401 
     through 6406, 6505, 7019, 7218 through 7229, 7304.41 through 
     7304.49, 7306.40, 7502 through 7508, 8105, 8108, 8109, 8211, 
     8215, and 9404.
       Sec. 8079. Funds made available to the Civil Air Patrol in 
     this Act under the heading ``Drug Interdiction and Counter-
     Drug Activities, Defense'' may be used for the Civil Air 
     Patrol Corporation's counterdrug program, including its 
     demand reduction program involving youth programs, as well as 
     operational and training drug reconnaissance missions for 
     Federal, State, and local government agencies; and for 
     equipment needed for mission support or performance: 
     Provided, That the Department of the Air Force should waive 
     reimbursement from the Federal, State, and local government 
     agencies for the use of these funds.
       Sec. 8080. (a) Prohibition.--None of the funds made 
     available by this Act may be used to support any training 
     program involving a unit of the security forces of a foreign 
     country if the Secretary of Defense has received credible 
     information from the Department of State that the unit has 
     committed a gross violation of human rights, unless all 
     necessary corrective steps have been taken.

[[Page 15472]]

       (b) Monitoring.--The Secretary of Defense, in consultation 
     with the Secretary of State, shall ensure that prior to a 
     decision to conduct any training program referred to in 
     subsection (a), full consideration is given to all credible 
     information available to the Department of State relating to 
     human rights violations by foreign security forces.
       (c) Waiver.--The Secretary of Defense, after consultation 
     with the Secretary of State, may waive the prohibition in 
     subsection (a) if he determines that such waiver is required 
     by extraordinary circumstances.
       (d) Report.--Not more than 15 days after the exercise of 
     any waiver under subsection (c), the Secretary of Defense 
     shall submit a report to the congressional defense committees 
     describing the extraordinary circumstances, the purpose and 
     duration of the training program, the United States forces 
     and the foreign security forces involved in the training 
     program, and the information relating to human rights 
     violations that necessitates the waiver.
       Sec. 8081. The Secretary of Defense, in coordination with 
     the Secretary of Health and Human Services, may carry out a 
     program to distribute surplus dental equipment of the 
     Department of Defense, at no cost to the Department of 
     Defense, to Indian Health Service facilities and to 
     federally-qualified health centers (within the meaning of 
     section 1905(l)(2)(B) of the Social Security Act (42 U.S.C. 
     1396d(l)(2)(B))).
       Sec. 8082. The total amount appropriated in this Act is 
     hereby reduced by $338,000,000 to reflect savings from 
     favorable foreign currency fluctuations, to be derived as 
     follows:
       ``Military Personnel, Army'', $80,000,000;
       ``Military Personnel, Navy'', $6,500,000;
       ``Military Personnel, Marine Corps'', $11,000,000;
       ``Military Personnel, Air Force'', $29,000,000;
       ``Operation and Maintenance, Army'', $102,000,000;
       ``Operation and Maintenance, Navy'', $21,500,000;
       ``Operation and Maintenance, Marine Corps'', $2,000,000;
       ``Operation and Maintenance, Air Force'', $46,000,000; and
       ``Operation and Maintenance, Defense-Wide'', $40,000,000.
       Sec. 8083. None of the funds appropriated or made available 
     in this Act to the Department of the Navy shall be used to 
     develop, lease or procure the T-AKE class of ships unless the 
     main propulsion diesel engines and propulsors are 
     manufactured in the United States by a domestically operated 
     entity: Provided, That the Secretary of Defense may waive 
     this restriction on a case-by-case basis by certifying in 
     writing to the Committees on Appropriations of the House of 
     Representatives and the Senate that adequate domestic 
     supplies are not available to meet Department of Defense 
     requirements on a timely basis and that such an acquisition 
     must be made in order to acquire capability for national 
     security purposes or there exists a significant cost or 
     quality difference.
       Sec. 8084. None of the funds appropriated or otherwise made 
     available by this or other Department of Defense 
     Appropriations Acts may be obligated or expended for the 
     purpose of performing repairs or maintenance to military 
     family housing units of the Department of Defense, including 
     areas in such military family housing units that may be used 
     for the purpose of conducting official Department of Defense 
     business.
       Sec. 8085. Notwithstanding any other provision of law, 
     funds appropriated in this Act under the heading ``Research, 
     Development, Test and Evaluation, Defense-Wide'' for any 
     advanced concept technology demonstration project may only be 
     obligated 30 days after a report, including a description of 
     the project and its estimated annual and total cost, has been 
     provided in writing to the congressional defense committees: 
     Provided, That the Secretary of Defense may waive this 
     restriction on a case-by-case basis by certifying to the 
     congressional defense committees that it is in the national 
     interest to do so.
       Sec. 8086. Notwithstanding any other provision of law, for 
     the purpose of establishing all Department of Defense 
     policies governing the provision of care provided by and 
     financed under the military health care system's case 
     management program under 10 U.S.C. 1079(a)(17), the term 
     ``custodial care'' shall be defined as care designed 
     essentially to assist an individual in meeting the activities 
     of daily living and which does not require the supervision of 
     trained medical, nursing, paramedical or other specially 
     trained individuals: Provided, That the case management 
     program shall provide that members and retired members of the 
     military services, and their dependents and survivors, have 
     access to all medically necessary health care through the 
     health care delivery system of the military services 
     regardless of the health care status of the person seeking 
     the health care: Provided further, That the case management 
     program shall be the primary obligor for payment of medically 
     necessary services and shall not be considered as secondarily 
     liable to title XIX of the Social Security Act, other welfare 
     programs or charity based care.
       Sec. 8087. During the current fiscal year, refunds 
     attributable to the use of the Government travel card, 
     refunds attributable to the use of the Government Purchase 
     Card and refunds attributable to official Government travel 
     arranged by Government Contracted Travel Management Centers 
     may be credited to operation and maintenance accounts of the 
     Department of Defense which are current when the refunds are 
     received.
       Sec. 8088. (a) Registering Financial Management Information 
     Technology Systems With DOD Chief Information Officer.--None 
     of the funds appropriated in this Act may be used for a 
     mission critical or mission essential financial management 
     information technology system (including a system funded by 
     the defense working capital fund) that is not registered with 
     the Chief Information Officer of the Department of Defense. A 
     system shall be considered to be registered with that officer 
     upon the furnishing to that officer of notice of the system, 
     together with such information concerning the system as the 
     Secretary of Defense may prescribe. A financial management 
     information technology system shall be considered a mission 
     critical or mission essential information technology system 
     as defined by the Under Secretary of Defense (Comptroller).
       (b) Certifications as to Compliance With Financial 
     Management Modernization Plan.--
       (1) During the current fiscal year, a financial management 
     major automated information system may not receive Milestone 
     A approval, Milestone B approval, or full rate production, or 
     their equivalent, within the Department of Defense until the 
     Under Secretary of Defense (Comptroller) certifies, with 
     respect to that milestone, that the system is being developed 
     and managed in accordance with the Department's Financial 
     Management Modernization Plan. The Under Secretary of Defense 
     (Comptroller) may require additional certifications, as 
     appropriate, with respect to any such system.
       (2) The Chief Information Officer shall provide the 
     congressional defense committees timely notification of 
     certifications under paragraph (1).
       (c) Certifications as to Compliance With Clinger-Cohen 
     Act.--(1) During the current fiscal year, a major automated 
     information system may not receive Milestone A approval, 
     Milestone B approval, or full rate production approval, or 
     their equivalent, within the Department of Defense until the 
     Chief Information Officer certifies, with respect to that 
     milestone, that the system is being developed in accordance 
     with the Clinger-Cohen Act of 1996 (40 U.S.C. 1401 et seq.). 
     The Chief Information Officer may require additional 
     certifications, as appropriate, with respect to any such 
     system.
       (2) The Chief Information Officer shall provide the 
     congressional defense committees timely notification of 
     certifications under paragraph (1). Each such notification 
     shall include, at a minimum, the funding baseline and 
     milestone schedule for each system covered by such a 
     certification and confirmation that the following steps have 
     been taken with respect to the system:
       (A) Business process reengineering.
       (B) An analysis of alternatives.
       (C) An economic analysis that includes a calculation of the 
     return on investment.
       (D) Performance measures.
       (E) An information assurance strategy consistent with the 
     Department's Global Information Grid.
       (d) Definitions.--For purposes of this section:
       (1) The term ``Chief Information Officer'' means the senior 
     official of the Department of Defense designated by the 
     Secretary of Defense pursuant to section 3506 of title 44, 
     United States Code.
       (2) The term ``information technology system'' has the 
     meaning given the term ``information technology'' in section 
     5002 of the Clinger-Cohen Act of 1996 (40 U.S.C. 1401).
       (3) The term ``major automated information system'' has the 
     meaning given that term in Department of Defense Directive 
     5000.1.
       Sec. 8089. During the current fiscal year, none of the 
     funds available to the Department of Defense may be used to 
     provide support to another department or agency of the United 
     States if such department or agency is more than 90 days in 
     arrears in making payment to the Department of Defense for 
     goods or services previously provided to such department or 
     agency on a reimbursable basis: Provided, That this 
     restriction shall not apply if the department is authorized 
     by law to provide support to such department or agency on a 
     nonreimbursable basis, and is providing the requested support 
     pursuant to such authority: Provided further, That the 
     Secretary of Defense may waive this restriction on a case-by-
     case basis by certifying in writing to the Committees on 
     Appropriations of the House of Representatives and the Senate 
     that it is in the national security interest to do so.
       Sec. 8090. None of the funds provided in this Act may be 
     used to transfer to any nongovernmental entity ammunition 
     held by the Department of Defense that has a center-fire 
     cartridge and a United States military nomenclature 
     designation of ``armor penetrator'', ``armor piercing (AP)'', 
     ``armor piercing incendiary (API)'', or ``armor-piercing 
     incendiary-tracer (API-T)'', except to an entity performing 
     demilitarization services for the Department of Defense under 
     a contract that requires the entity to demonstrate to the 
     satisfaction of the Department of Defense that armor piercing 
     projectiles are either: (1) rendered incapable of reuse by 
     the demilitarization process; or (2) used to manufacture 
     ammunition pursuant to a contract with the Department of 
     Defense or the manufacture of ammunition for export pursuant 
     to a License for Permanent Export of Unclassified Military 
     Articles issued by the Department of State.
       Sec. 8091. Notwithstanding any other provision of law, the 
     Chief of the National Guard Bureau, or his designee, may 
     waive payment of all or part of the consideration that 
     otherwise

[[Page 15473]]

     would be required under 10 U.S.C. 2667, in the case of a 
     lease of personal property for a period not in excess of 1 
     year to any organization specified in 32 U.S.C. 508(d), or 
     any other youth, social, or fraternal non-profit organization 
     as may be approved by the Chief of the National Guard Bureau, 
     or his designee, on a case-by-case basis.
       Sec. 8092. None of the funds appropriated by this Act shall 
     be used for the support of any nonappropriated funds activity 
     of the Department of Defense that procures malt beverages and 
     wine with nonappropriated funds for resale (including such 
     alcoholic beverages sold by the drink) on a military 
     installation located in the United States unless such malt 
     beverages and wine are procured within that State, or in the 
     case of the District of Columbia, within the District of 
     Columbia, in which the military installation is located: 
     Provided, That in a case in which the military installation 
     is located in more than one State, purchases may be made in 
     any State in which the installation is located: Provided 
     further, That such local procurement requirements for malt 
     beverages and wine shall apply to all alcoholic beverages 
     only for military installations in States which are not 
     contiguous with another State: Provided further, That 
     alcoholic beverages other than wine and malt beverages, in 
     contiguous States and the District of Columbia shall be 
     procured from the most competitive source, price and other 
     factors considered.
       Sec. 8093. During the current fiscal year and hereafter, 
     under regulations prescribed by the Secretary of Defense, the 
     Center of Excellence for Disaster Management and Humanitarian 
     Assistance may also pay, or authorize payment for, the 
     expenses of providing or facilitating education and training 
     for appropriate military and civilian personnel of foreign 
     countries in disaster management, peace operations, and 
     humanitarian assistance.
       Sec. 8094. (a) The Department of Defense is authorized to 
     enter into agreements with the Department of Veterans Affairs 
     and federally-funded health agencies providing services to 
     Native Hawaiians for the purpose of establishing a 
     partnership similar to the Alaska Federal Health Care 
     Partnership, in order to maximize Federal resources in the 
     provision of health care services by federally-funded health 
     agencies, applying telemedicine technologies. For the purpose 
     of this partnership, Native Hawaiians shall have the same 
     status as other Native Americans who are eligible for the 
     health care services provided by the Indian Health Service.
       (b) The Department of Defense is authorized to develop a 
     consultation policy, consistent with Executive Order No. 
     13084 (issued May 14, 1998), with Native Hawaiians for the 
     purpose of assuring maximum Native Hawaiian participation in 
     the direction and administration of governmental services so 
     as to render those services more responsive to the needs of 
     the Native Hawaiian community.
       (c) For purposes of this section, the term ``Native 
     Hawaiian'' means any individual who is a descendant of the 
     aboriginal people who, prior to 1778, occupied and exercised 
     sovereignty in the area that now comprises the State of 
     Hawaii.
       Sec. 8095. Of the amounts appropriated in this Act under 
     the heading ``Research, Development, Test and Evaluation, 
     Defense-Wide'', $146,000,000 shall be made available for the 
     Arrow missile defense program: Provided, That of this amount, 
     $66,000,000 shall be available for the purpose of continuing 
     the Arrow System Improvement Program (ASIP), $10,000,000 
     shall be available for continuing the Enhanced Arrow 
     Deployability Program, and $70,000,000 shall be available for 
     the purpose of producing Arrow missile components in the 
     United States and Arrow missile components and missiles in 
     Israel to meet Israel's defense requirements, consistent with 
     each nation's laws, regulations and procedures: Provided 
     further, That funds made available under this provision for 
     production of missiles and missile components may be 
     transferred to appropriations available for the procurement 
     of weapons and equipment, to be merged with and to be 
     available for the same time period and the same purposes as 
     the appropriation to which transferred: Provided further, 
     That the transfer authority provided under this provision is 
     in addition to any other transfer authority contained in this 
     Act.
       Sec. 8096. Funds available to the Department of Defense for 
     the Global Positioning System during the current fiscal year 
     may be used to fund civil requirements associated with the 
     satellite and ground control segments of such system's 
     modernization program.


                     (including transfer of funds)

       Sec. 8097. Of the amounts appropriated in this Act under 
     the heading, ``Operation and Maintenance, Defense-Wide'', 
     $68,000,000 shall remain available until expended: Provided, 
     That notwithstanding any other provision of law, the 
     Secretary of Defense is authorized to transfer such funds to 
     other activities of the Federal Government.
       Sec. 8098. Section 8106 of the Department of Defense 
     Appropriations Act, 1997 (titles I through VIII of the matter 
     under subsection 101(b) of Public Law 104-208; 110 Stat. 
     3009-111; 10 U.S.C. 113 note) shall continue in effect to 
     apply to disbursements that are made by the Department of 
     Defense in fiscal year 2003.
       Sec. 8099. Of the funds made available under the heading 
     ``Operation and Maintenance, Air Force'', $8,000,000 shall be 
     available to realign railroad track on Elmendorf Air Force 
     Base and Fort Richardson.
       Sec. 8100. Notwithstanding any other provision of this Act, 
     the total amount appropriated in this Act is hereby reduced 
     by $850,000,000, to reflect savings to be achieved from 
     business process reforms, management efficiencies, and 
     procurement of administrative and management support: 
     Provided, That none of the funds provided in this Act may be 
     used for consulting and advisory services for legislative 
     affairs and legislative liaison functions.


                     (including transfer of funds)

       Sec. 8101. Of the amounts appropriated in this Act under 
     the heading ``Shipbuilding and Conversion, Navy'', 
     $1,481,955,000 shall be available until September 30, 2003, 
     to fund prior year shipbuilding cost increases: Provided, 
     That upon enactment of this Act, the Secretary of the Navy 
     shall transfer such funds to the following appropriations in 
     the amounts specified: Provided further, That the amounts 
     transferred shall be merged with and be available for the 
     same purposes as the appropriations to which transferred:
       To:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1996/03'':
       LPD-17 Amphibious Transport Dock Ship Program, 
     $300,681,000;
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1998/03'':
       DDG-51 Destroyer Program, $76,100,000;
       New SSN, $190,882,000;
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1999/03'':
       DDG-51 Destroyer Program, $93,736,000;
       LPD-17 Amphibious Transport Dock Ship Program, $82,000,000;
       New SSN, $292,000,000;
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     2000/03'':
       DDG-51 Destroyer Program, $72,924,000;
       LPD-17 Amphibious Transport Dock Ship Program, 
     $187,000,000;
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     2001/03'':
       DDG-51 Destroyer Program, $81,700,000;
       New SSN, $6,932,000; and
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     2002/03'':
       DDG-51 Destroyer Program, $98,000,000.
       Sec. 8102. The Secretary of the Navy may settle, or 
     compromise, and pay any and all admiralty claims under 10 
     U.S.C. 7622 arising out of the collision involving the U.S.S. 
     GREENEVILLE and the EHIME MARU, in any amount and without 
     regard to the monetary limitations in subsections (a) and (b) 
     of that section: Provided, That such payments shall be made 
     from funds available to the Department of the Navy for 
     operation and maintenance.


                          (transfer of funds)

       Sec. 8103. Upon enactment of this Act, the Secretary of the 
     Navy shall make the following transfers of funds: Provided, 
     That the amounts transferred shall be available for the same 
     purpose as the appropriations to which transferred, and for 
     the same time period as the appropriation from which 
     transferred: Provided further, That the amounts shall be 
     transferred between the following appropriations in the 
     amount specified:
       From:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1994/2003'':
       DDG-51 Destroyer program, $7,900,000;
       LHD-1 Amphibious Assault Ship program, $6,500,000;
       Oceanographic Ship program, $3,416,000;
       Craft, outfitting, post delivery, first destination 
     transportation, $1,800,000;
       Mine warfare command and control ship, $604,000;
       To:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1999/2003'':
       LPD-17 Amphibious Transport Dock Ship program, $20,220,000.
       Sec. 8104. Notwithstanding section 229(a) of the Social 
     Security Act, no wages shall be deemed to have been paid to 
     any individual pursuant to that section in any calendar year 
     after 2001.
       Sec. 8105. Up to $3,000,000 of the funds appropriated under 
     the heading ``Operation and Maintenance, Navy'' in this Act 
     for the Pacific Missile Range Facility may be made available 
     to contract for the repair, maintenance, and operation of 
     adjacent off-base water, drainage, and flood control systems 
     critical to base operations.
       Sec. 8106. Notwithstanding any other provision of law or 
     regulation, the Secretary of Defense may exercise the 
     provisions of 38 U.S.C. 7403(g) for occupations listed in 38 
     U.S.C. 7403(a)(2) as well as the following:
       Pharmacists, Audiologists, and Dental Hygienists.
       (A) The requirements of 38 U.S.C. 7403(g)(1)(A) shall 
     apply.
       (B) The limitations of 38 U.S.C. 7403(g)(1)(B) shall not 
     apply.
       Sec. 8107. Of the total amount appropriated by this Act 
     under the heading ``Operation and Maintenance, Defense-
     Wide'', $5,000,000 may be available for payments under 
     section 363 of the Floyd D. Spence National Defense 
     Authorization Act for Fiscal Year 2001 (as enacted into law 
     by Public Law 106-398; 114 Stat. 1654A-77).
       Sec. 8108. In addition to funds made available elsewhere in 
     this Act $5,000,000 is hereby appropriated and shall remain 
     available until expended to provide assistance, by grant or 
     otherwise (such as, but not limited to, the provision of 
     funds for repairs, maintenance, and/or for the purchase of 
     information technology, text books, teaching resources), to 
     public schools that have unusually high concentrations of 
     special needs military dependents enrolled: Provided, That in 
     selecting school systems to receive such assistance, special 
     consideration shall be given to

[[Page 15474]]

     school systems in States that are considered overseas 
     assignments, and all schools within these school systems 
     shall be eligible for assistance: Provided further, That up 
     to $2,000,000 shall be available for the Department of 
     Defense to establish a non-profit trust fund to assist in the 
     public-private funding of public school repair and 
     maintenance projects, or provide directly to non-profit 
     organizations who in return will use these monies to provide 
     assistance in the form of repair, maintenance, or renovation 
     to public school systems that have high concentrations of 
     special needs military dependents and are located in States 
     that are considered overseas assignments, and of which 2 
     percent shall be available to support the administration and 
     execution of the funds: Provided further, That to the extent 
     a federal agency provides this assistance, by contract, 
     grant, or otherwise, it may accept and expend non-federal 
     funds in combination with these federal funds to provide 
     assistance for the authorized purpose, if the non-federal 
     entity requests such assistance and the non-federal funds are 
     provided on a reimbursable basis.
       Sec. 8109. Notwithstanding any other provision in this Act, 
     the total amount appropriated in this Act is hereby reduced 
     by $400,000,000, to reduce cost growth in information 
     technology development, to be distributed as follows:
       ``Operation and Maintenance, Defense-Wide'', $19,500,000;
       ``Other Procurement, Army'', $53,200,000;
       ``Other Procurement, Navy'', $20,600,000;
       ``Procurement, Marine Corps'', $3,400,000;
       ``Other Procurement, Air Force'', $12,000,000;
       ``Procurement, Defense-Wide'', $3,500,000;
       ``Research, Development, Test and Evaluation, Army'', 
     $17,700,000;
       ``Research, Development, Test and Evaluation, Navy'', 
     $25,600,000;
       ``Research, Development, Test and Evaluation, Air Force'', 
     $27,200,000;
       ``Research, Development, Test and Evaluation, Defense-
     Wide'', $36,600,000;
       ``Defense Working Capital Funds'', $148,600,000; and
       ``Defense Health Program'', $32,100,000.
       Sec. 8110. In addition to the amounts appropriated or 
     otherwise made available in this Act, $4,000,000, to remain 
     available until September 30, 2003, is hereby appropriated to 
     the Department of Defense: Provided, That the Secretary of 
     Defense shall make a grant in the amount of $4,000,000 to the 
     American Red Cross for Armed Forces Emergency Services.
       Sec. 8111. None of the funds appropriated in this Act under 
     the heading ``Overseas Contingency Operations Transfer Fund'' 
     may be transferred or obligated for Department of Defense 
     expenses not directly related to the conduct of overseas 
     contingencies: Provided, That the Secretary of Defense shall 
     submit a report no later than 30 days after the end of each 
     fiscal quarter to the Committees on Appropriations of the 
     Senate and House of Representatives that details any transfer 
     of funds from the ``Overseas Contingency Operations Transfer 
     Fund'': Provided further, That the report shall explain any 
     transfer for the maintenance of real property, pay of 
     civilian personnel, base operations support, and weapon, 
     vehicle or equipment maintenance.
       Sec. 8112. For purposes of section 1553(b) of title 31, 
     United States Code, any subdivision of appropriations made in 
     this Act under the heading ``Shipbuilding and Conversion, 
     Navy'' shall be considered to be for the same purpose as any 
     subdivision under the heading ``Shipbuilding and Conversion, 
     Navy'' appropriations in any prior year, and the 1 percent 
     limitation shall apply to the total amount of the 
     appropriation.
       Sec. 8113. The budget of the President for fiscal year 2004 
     submitted to the Congress pursuant to section 1105 of title 
     31, United States Code, and each annual budget request 
     thereafter, shall include separate budget justification 
     documents for costs of United States Armed Forces' 
     participation in contingency operations for the Military 
     Personnel accounts, the Overseas Contingency Operations 
     Transfer Fund, the Operation and Maintenance accounts, and 
     the Procurement accounts: Provided, That these budget 
     justification documents shall include a description of the 
     funding requested for each anticipated contingency operation, 
     for each military service, to include active duty and Guard 
     and Reserve components, and for each appropriation account: 
     Provided further, That these documents shall include 
     estimated costs for each element of expense or object class, 
     a reconciliation of increases and decreases for ongoing 
     contingency operations, and programmatic data including, but 
     not limited to troop strength for each active duty and Guard 
     and Reserve component, and estimates of the major weapons 
     systems deployed in support of each contingency: Provided 
     further, That these documents shall include budget exhibits 
     OP-5 and OP-32, as defined in the Department of Defense 
     Financial Management Regulation, for the Overseas Contingency 
     Operations Transfer Fund for fiscal years 2002 and 2003.
       Sec. 8114. Notwithstanding any other provision in this Act, 
     the total amount appropriated in this Act is hereby reduced 
     by $59,260,000, to reduce cost growth in travel, to be 
     distributed as follows:
       ``Operation and Maintenance, Army'', $14,000,000;
       ``Operation and Maintenance, Navy'', $9,000,000;
       ``Operation and Maintenance, Marine Corps'', $10,000,000;
       ``Operation and Maintenance, Air Force'', $15,000,000; and
       ``Operation and Maintenance, Defense-wide'', $11,260,000.
       Sec. 8115. None of the funds in this Act may be used for 
     research, development, test, evaluation, procurement or 
     deployment of nuclear armed interceptors of a missile defense 
     system.
       Sec. 8116. (a) In addition to the amounts appropriated or 
     otherwise made available in this Act, $814,300,000 is hereby 
     appropriated to the Department of Defense for whichever of 
     the following purposes the President determines to be in the 
     national security interests of the United States:
       (1) research, development, test and evaluation for 
     ballistic missile defense; and,
       (2) activities for combating terrorism.
       (b) The total amount appropriated or otherwise made 
     available by this Act is hereby reduced by $814,300,000 to 
     reflect revised economic assumptions: Provided, That the 
     Secretary of Defense shall allocate this reduction 
     proportionately by program, project, and activity: Provided 
     further, That appropriations made available in this Act for 
     the pay and benefits of military personnel are exempt from 
     reductions under this provision.
       Sec. 8117. Section 8159 of the Department of Defense 
     Appropriations Act, 2002 (division A of Public Law 107-117; 
     115 Stat. 2284), is revised by adding the following paragraph 
     (g):
       ``(g) Notwithstanding any other provision of law, any 
     payments made pursuant to Subsection (c)(3) above may be made 
     from appropriations available for operation and maintenance 
     or for lease or procurement of aircraft at the time that the 
     lease is signed.''.


                           transfer of funds)

       Sec. 8118. In addition to the amounts appropriated or 
     otherwise made available by this Act, $300,000,000 is hereby 
     appropriated to the Department of Defense and shall be 
     available only for transfer to the United States Coast Guard.
       Sec. 8119. During the current fiscal year, section 2533a(f) 
     of Title 10, United States Code, shall not apply to any fish, 
     shellfish, or seafood product. This section is applicable to 
     contracts and subcontracts for the procurement of commercial 
     items notwithstanding section 34 of the Office of Federal 
     Procurement Policy Act (41 U.S.C. 430).
       Sec. 8120. None of the funds appropriated by this Act may 
     be used to convert the 939th Combat Search and Rescue Wing of 
     the Air Force Reserve until 60 days after the Secretary of 
     the Air Force certifies to the Congress the following: (a) 
     that a functionally comparable search and rescue capability 
     is available in the 939th Search and Rescue Wing's area of 
     responsibility; (b) that any new aircraft assigned to the 
     unit will comply with local environmental and noise 
     standards; and (c) that the Air Force has developed a plan 
     for the transition of personnel and manpower billets 
     currently assigned to this unit.
       Sec. 8121. Navy Dry-Dock AFDL-47 (a) Requirement for 
     Sale.--Notwithstanding any other provision of law, the 
     Secretary of the Navy shall sell the Navy Dry-dock AFDL-47, 
     located in Charleston, South Carolina, to Detyens Shipyards, 
     Inc., the current lessee of the dry-dock from the Navy.
       (b) Consideration.--As consideration for the sale of the 
     dry-dock under subsection (a), the Secretary shall receive an 
     amount equal to the fair market value of the dry-dock at the 
     time of the sale, as determined by the Secretary, taking into 
     account amounts paid by, or due and owing from, the lessee.
       Sec. 8122. (a) Management of Chemical Demilitarization 
     Activities at Bluegrass Army Depot, Kentucky.--If a 
     technology other than the baseline incineration program is 
     selected for the destruction of lethal chemical munitions 
     pursuant to section 142 of the Strom Thurmond National 
     Defense Authorization Act for Fiscal Year 1999 (Public Law 
     105-261; 50 U.S.C. 1521 note), the program manager for the 
     Assembled Chemical Weapons Assessment shall be responsible 
     for management of the construction, operation, and closure, 
     and any contracting relating thereto, of chemical 
     demilitarization activities at Bluegrass Army Depot, 
     Kentucky, including management of the pilot-scale facility 
     phase of the alternative technology.
       (b) Management of Chemical Demilitarization Activities at 
     Pueblo Depot, Colorado.--The program manager for the 
     Assembled Chemical Weapons Assessment shall be responsible 
     for management of the construction, operation, and closure, 
     and any contracting relating thereto, of chemical 
     demilitarization activities at Pueblo Army Depot, Colorado, 
     including management of the pilot-scale facility phase of the 
     alternative technology selected for the destruction of lethal 
     chemical munitions.
       Sec. 8123. From funds made available in this Act for the 
     Office of Economic Adjustment under the heading ``Operation 
     and Maintenance, Defense-Wide'', $100,000 shall be available 
     for the elimination of asbestos at former Battery 204, 
     Odiorne Point, New Hampshire.

         TITLE IX--COMMERCIAL REUSABLE IN-SPACE TRANSPORTATION

     SEC. 901. SHORT TITLE.

       This title may be cited as the ``Commercial Reusable In-
     Space Transportation Act of 2002''.

     SEC. 902. FINDINGS.

       Congress makes the following findings:
       (1) It is in the national interest to encourage the 
     production of cost-effective, in-space transportation 
     systems, which would be built and operated by the private 
     sector on a commercial basis.
       (2) The use of reusable in-space transportation systems 
     will enhance performance levels of in-space operations, 
     enhance efficient and safe disposal of satellites at the end 
     of their useful lives, and increase the capability and 
     reliability of existing ground-to-space launch vehicles.

[[Page 15475]]

       (3) Commercial reusable in-space transportation systems 
     will enhance the economic well-being and national security of 
     the United States by reducing space operations costs for 
     commercial and national space programs and by adding new 
     space capabilities to space operations.
       (4) Commercial reusable in-space transportation systems 
     will provide new cost-effective space capabilities (including 
     orbital transfers from low altitude orbits to high altitude 
     orbits and return, the correction of erroneous satellite 
     orbits, and the recovery, refurbishment, and refueling of 
     satellites) and the provision of upper stage functions to 
     increase ground-to-orbit launch vehicle payloads to 
     geostationary and other high energy orbits.
       (5) Commercial reusable in-space transportation systems can 
     enhance and enable the space exploration of the United States 
     by providing lower cost trajectory injection from earth 
     orbit, transit trajectory control, and planet arrival 
     deceleration to support potential National Aeronautics and 
     Space Administration missions to Mars, Pluto, and other 
     planets.
       (6) Satellites stranded in erroneous earth orbit due to 
     deficiencies in their launch represent substantial economic 
     loss to the United States and present substantial concerns 
     for the current backlog of national space assets.
       (7) Commercial reusable in-space transportation systems can 
     provide new options for alternative planning approaches and 
     risk management to enhance the mission assurance of national 
     space assets.
       (8) Commercial reusable in-space transportation systems 
     developed by the private sector can provide in-space 
     transportation services to the National Aeronautics and Space 
     Administration, the Department of Defense, the National 
     Reconnaissance Office, and other agencies without the need 
     for the United States to bear the cost of production of such 
     systems.
       (9) The availability of loan guarantees, with the cost of 
     credit risk to the United States paid by the private-sector, 
     is an effective means by which the United States can help 
     qualifying private-sector companies secure otherwise 
     unattainable private financing for the production of 
     commercial reusable in-space transportation systems, while at 
     the same time minimizing Government commitment and 
     involvement in the development of such systems.

     SEC. 903. LOAN GUARANTEES FOR PRODUCTION OF COMMERCIAL 
                   REUSABLE IN-SPACE TRANSPORTATION.

       (a) Authority To Make Loan Guarantees.--The Secretary may 
     guarantee loans made to eligible United States commercial 
     providers for purposes of producing commercial reusable in-
     space transportation services or systems.
       (b) Eligible United States Commercial Providers.--The 
     Secretary shall prescribe requirements for the eligibility of 
     United States commercial providers for loan guarantees under 
     this section. Such requirements shall ensure that eligible 
     providers are financially capable of undertaking a loan 
     guaranteed under this section.
       (c) Limitation on Loans Guaranteed.--The Secretary may not 
     guarantee a loan for a United States commercial provider 
     under this section unless the Secretary determines that 
     credit would not otherwise be reasonably available at the 
     time of the guarantee for the commercial reusable in-space 
     transportation service or system to be produced utilizing the 
     proceeds of the loan.
       (d) Credit Subsidy.--
       (1) Collection required.--The Secretary shall collect from 
     each United States commercial provider receiving a loan 
     guarantee under this section an amount equal to the amount, 
     as determined by the Secretary, to cover the cost, as defined 
     in section 502(5) of the Federal Credit Reform Act of 1990, 
     of the loan guarantee.
       (2) Periodic disbursements.--In the case of a loan 
     guarantee in which proceeds of the loan are disbursed over 
     time, the Secretary shall collect the amount required under 
     this subsection on a pro rata basis, as determined by the 
     Secretary, at the time of each disbursement.
       (e) Other Terms and Conditions.--
       (1) Prohibition on subordination.--A loan guaranteed under 
     this section may not be subordinated to another debt 
     contracted by the United States commercial provider 
     concerned, or to any other claims against such provider.
       (2) Restriction on income.--A loan guaranteed under this 
     section may not--
       (A) provide income which is excluded from gross income for 
     purposes of chapter 1 of the Internal Revenue Code of 1986; 
     or
       (B) provide significant collateral or security, as 
     determined by the Secretary, for other obligations the income 
     from which is so excluded.
       (3) Treatment of guarantee.--The guarantee of a loan under 
     this section shall be conclusive evidence of the following:
       (A) That the guarantee has been properly obtained.
       (B) That the loan qualifies for the guarantee.
       (C) That, but for fraud or material misrepresentation by 
     the holder of the loan, the guarantee is valid, legal, and 
     enforceable.
       (4) Other terms and conditions.--The Secretary may 
     establish any other terms and conditions for a guarantee of a 
     loan under this section, as the Secretary considers 
     appropriate to protect the financial interests of the United 
     States.
       (f) Enforcement of Rights.--
       (1) In general.--The Attorney General may take any action 
     the Attorney General considers appropriate to enforce any 
     right accruing to the United States under a loan guarantee 
     under this section.
       (2) Forbearance.--The Attorney General may, with the 
     approval of the parties concerned, forebear from enforcing 
     any right of the United States under a loan guaranteed under 
     this section for the benefit of a United States commercial 
     provider if such forbearance will not result in any cost, as 
     defined in section 502(5) of the Federal Credit Reform Act of 
     1990, to the United States.
       (3) Utilization of property.--Notwithstanding any other 
     provision of law and subject to the terms of a loan 
     guaranteed under this section, upon the default of a United 
     States commercial provider under the loan, the Secretary may, 
     at the election of the Secretary--
       (A) assume control of the physical asset financed by the 
     loan; and
       (B) complete, recondition, reconstruct, renovate, repair, 
     maintain, operate, or sell the physical asset.
       (g) Credit Instruments.--
       (1) Authority to issue instruments.--Notwithstanding any 
     other provision of law, the Secretary may, subject to such 
     terms and conditions as the Secretary considers appropriate, 
     issue credit instruments to United States commercial 
     providers of in-space transportation services or system, with 
     the aggregate cost (as determined under the provisions of the 
     Federal Credit Reform Act of 1990 (2 U.S.C. 661 et seq.)) of 
     such instruments not to exceed $1,500,000,000, but only to 
     the extent that new budget authority to cover such costs is 
     provided in subsequent appropriations Acts or authority is 
     otherwise provided in subsequent appropriations Acts.
       (2) Credit subsidy.--The Secretary shall provide a credit 
     subsidy for any credit instrument issued under this 
     subsection in accordance with the provisions of the Federal 
     Credit Reform Act of 1990.
       (3) Construction.--The eligibility of a United States 
     commercial provider of in-space transportation services or 
     systems for a credit instrument under this subsection is in 
     addition to any eligibility of such provider for a loan 
     guarantee under other provisions of this section.

     SEC. 904. DEFINITIONS.

       In this title:
       (1) Secretary.--The term ``Secretary'' means the Secretary 
     of Defense.
       (2) Commercial provider.--The term ``commercial provider'' 
     means any person or entity providing commercial reusable in-
     orbit space transportation services or systems, primary 
     control of which is held by persons other than the Federal 
     Government, a State or local government, or a foreign 
     government.
       (3) In-space transportation services.--The term ``in-space 
     transportation services'' means operations and activities 
     involved in the direct transportation or attempted 
     transportation of a payload or object from one orbit to 
     another by means of an in-space transportation vehicle.
       (4) In-space transportation system.--The term ``in-space 
     transportation system'' means the space and ground elements, 
     including in-space transportation vehicles and support space 
     systems, and ground administration and control facilities and 
     associated equipment, necessary for the provision of in-space 
     transportation services.
       (5) In-space transportation vehicle.--The term ``in-space 
     transportation vehicle'' means a vehicle designed--
       (A) to be based and operated in space;
       (B) to transport various payloads or objects from one orbit 
     to another orbit; and
       (C) to be reusable and refueled in space.
       (6) United states commercial provider.--The term ``United 
     States commercial provider'' means any commercial provider 
     organized under the laws of the United States that is more 
     than 50 percent owned by United States nationals.
       This Act may be cited as the ``Department of Defense 
     Appropriations Act, 2003''.
  The PRESIDING OFFICER. The Senator from Nevada.
  Mr. REID. Madam President, we are now on the Defense appropriations 
bill. Senator Inouye worked hard to get to this point, as did Senator 
Stevens--not only the ranking member of the subcommittee but the 
chairman of the full committee.
  We would like to move this bill and finish it today. This is a very 
big bill. It is the largest Defense bill in the history of the country. 
But it has been worked and worked and worked. I think we are at a point 
where we should be able to do that.
  Senator McCain has indicated he has some amendments. And we are 
waiting for those, as is Senator Inouye. If there are other amendments, 
they should be offered.
  We are going to try to wrap this bill up today. There are different 
ways of doing that. I hope there is cooperation.
  Senators Inouye and Stevens have agreed to a period of morning 
business for 12 minutes, and then the bill will be taken up and we will 
proceed in haste to complete it.
  Mr. REID. Madam President, I therefore ask unanimous consent that 
Senator Kerry and Senator Collins each be recognized to speak for up to 
6 minutes as if in morning business.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The Senator from Massachusetts.
  Mr. KERRY. Madam President, I thank the distinguished majority 
leader.

[[Page 15476]]

  (The remarks of Mr. Kerry are printed in today's Record under 
``Morning Business.'')
  The PRESIDING OFFICER (Mr. Cleland). The Senator from Maine.
  (The remarks of Ms. Collins are printed in today's Record during 
consideration of S. 812.)
  Ms. COLLINS. I yield the floor.
  The PRESIDING OFFICER. The Senator from Hawaii.
  Mr. INOUYE. I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The bill clerk proceeded to call the roll.
  Mr. INOUYE. Mr. President, I ask unanimous consent that the order for 
the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. REID. Will the Senator yield?
  The PRESIDING OFFICER. The Senator from Nevada.
  Mr. REID. Mr. President, I was looking for an opportunity when the 
Senator was on the floor to say some things I think are appropriate. I 
have said this before, but there is no one in the Senate I have more 
respect and admiration for than the senior Senator from Hawaii.
  The reason I wanted to say something today is I have had the 
opportunity the last many years to serve as ranking member and chairman 
of the Ethics Committee, which is a difficult job but one that I accept 
and understand the responsibilities. The situation arose where the 
Senator from Hawaii was asked by the majority leader to take over the 
chairmanship of that committee. As has been done on so many different 
occasions when there was something difficult that had to be done in the 
Senate, we looked to the Senator from Hawaii to do that. He has never 
shirked responsibility.
  Frankly, there were others who maybe could have or should have done 
this, but of course we looked to who we thought was the best, someone 
whose ethical standards are what I think the Senate is all about. I 
want, on behalf of the Senate, Democrats and Republicans, to express 
appreciation for stepping into a difficult situation, handling it with 
grace and handling it in a manner that I think is about as well as 
anyone could handle things.
  Let me complete this by saying we are now taking up the Defense 
appropriations bill, the largest Defense bill in the history of the 
country. There is no one who is more capable of handling a bill of this 
magnitude, dealing with the security and the defense of this country, 
than a person who is a Congressional Medal of Honor winner for the 
valor he showed in World War II. The valor he has shown is exemplified 
by the military awards he has received. He has shown the same valor in 
the Halls of the U.S. Senate. The people of Hawaii are so, so fortunate 
to have someone of his caliber, but I say that the people of Nevada are 
fortunate to have someone such as him serving in the Senate, and that 
applies to all the other States.
  Mr. INOUYE. I am humbled by those very generous remarks. I thank the 
Senator very much.
  The PRESIDING OFFICER. The Senator from South Dakota.
  Mr. DASCHLE. Mr. President, I was in my office and I heard that the 
distinguished assistant Democratic leader was speaking about the 
contribution of our distinguished senior Senator from Hawaii. I wanted 
to come to the floor to add my voice.
  Someday, when the history of this period in the Senate is written, 
one of those Senators who will tower as one of the giants is the 
Senator from Hawaii. On so many occasions over the course of his 
career, the Senate has called upon him to provide leadership in 
inquiries of all kinds, extraordinary challenges involving the need to 
work with both sides, somebody whose fairness, whose appreciation of 
this institution could never be challenged.
  I come to the floor to publicly thank him for taking on the 
extraordinarily difficult role that he had earlier this year when he 
agreed to my request to serve in the capacity of senior member of the 
Democratic representation on the Ethics Committee. He didn't want that 
job. He certainly didn't ask for that job. He knew the difficulty it 
would pose, and he knew how much time it would consume. But in keeping 
with his practice, he said yes.
  Last night we witnessed the product of his work, along with the 
others of the committee. I think it is fair to say, without question, 
he lived up to and exceeded the expectations of all of us in the Senate 
in conducting the hearings with fairness and dealing with the issue 
adroitly, and recognizing the important matters and issues that had to 
be addressed in this inquiry.
  I come to the floor simply to add my voice of gratitude to the 
distinguished Senator from Hawaii. I might also say, as the Senator 
from Nevada has noted, it is a little ironic, perhaps, that the two men 
who have given the most in the Senate today to their country at times 
of war are either sitting in the chair or standing at the manager's 
desk as we begin the DOD appropriations bill. I know of no two finer 
men.
  I have no greater admiration for any two people in the Senate than I 
do these two Senators. I thank them for what they have already done for 
their country and for what they continue to do in the roles they play 
as truly outstanding U.S. Senators.
  I look forward to the debate on Defense appropriations and, as 
always, we turn to our dear Senator from Hawaii with our admiration and 
our gratitude and our expressions of hope that we conclude this 
successfully within the course of the next period of time.
  I thank the Senator for accommodating me. I know he wants to get 
started on his bill, but I needed to come to the floor to express 
myself, as the Senator from Nevada has as well.
  I yield the floor.
  The PRESIDING OFFICER. The Senator from Hawaii is recognized.
  Mr. INOUYE. Very seldom am I at a loss for words, but I must say I am 
extremely grateful to my leaders for their generous remarks. I am 
humbled.
  The PRESIDING OFFICER. The Senator from West Virginia is recognized.
  Mr. BYRD. Mr. President, let me ask, briefly, and express my 
viewpoint concerning Danny Inouye and Max Cleland. Others have just 
preceded me in speaking of these two valiant patriots. Danny Inouye has 
always been my hero in the Senate. There was never anyone, in my 
judgment, greater than Danny. In our time, or in past times, I think 
that says about all I need to say about Danny. He is the ranking 
Democrat on the Appropriations Committee in the Senate. He has always 
been a valued supporter of mine when I was majority leader, when I was 
minority leader, and as chairman of the Senate Appropriations 
Committee, which I presently am. So he doesn't take second place to 
anybody in the Senate, as far as I am concerned. As heroes go, he is 
No. 1.
  In recent years, there has come to the Senate the junior Senator from 
Georgia, Max Cleland, who is also my hero. So I have two heroes in the 
Senate. Danny is one who has been my hero from the beginning, and Max 
Cleland is my second hero. So I just add that little bit to what has 
already been appropriately said by Senators Reid of Nevada and the 
majority leader. I don't think I can add anything to that.
  Mr. INOUYE. Will the Senator yield?
  Mr. BYRD. Yes.
  Mr. INOUYE. On behalf of the Presiding Officer and myself, we are 
humbled by the Senator's generous remarks.
  Mr. BYRD. I thank the distinguished Senator from Hawaii.
  I yield the floor. I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The assistant legislative clerk proceeded to call the roll.
  Mr. WELLSTONE. Mr. President, I ask unanimous consent the order for 
the quorum call be rescinded.
  The PRESIDING OFFICER (Mr. Reed). Without objection, it is so 
ordered.
  Mr. WELLSTONE. Mr. President, I know we are going to have opening 
statements by Senator Inouye and others. I ask unanimous consent, when 
we get to amendments, I be allowed to do the first amendment on the DOD 
appropriations bill.

[[Page 15477]]

  The PRESIDING OFFICER. Is there objection?
  Mr. BYRD. What is the request?
  The PRESIDING OFFICER. The request is that the Senator be allowed to 
offer a first-degree amendment at the conclusion of opening statements 
on the Defense Appropriations Committee bill.
  Mr. BYRD. Mr. President, I personally have no objection, but I would 
like for both managers to be here. I would like for both managers to be 
here when the request is made.
  Mr. WELLSTONE. Yes.
  The PRESIDING OFFICER. Is there objection?
  Mr. BYRD. Objection to what?
  The PRESIDING OFFICER. Objection to the unanimous consent request of 
the Senator from Minnesota to offer first an amendment upon the 
completion of the opening statements.
  Mr. BYRD. Mr. President, I don't know what the Senator's amendment 
is. I object, for the moment, just for the moment, until both managers 
are on the floor.
  The PRESIDING OFFICER. Objection is heard.
  The Senator from Minnesota.
  Mr. WELLSTONE. Mr. President, let me take a little bit of time then. 
I am sorry, I won't proceed if the Senator from Hawaii is ready to make 
his opening statement. I do not want to take much time. Let me just 
give my colleagues a sense of what the amendment is. I will try to do 
that because we come down to the floor and we try to get in order so we 
can also do some other things.
  What the amendment says is that none of the funds made available in 
this act may be obligated for payment on any new contract to a 
subsidiary of a publicly traded corporation if the corporation 
incorporated after December 31, 2001, in a tax haven country.
  Basically what I am talking about is the whole question of contracts 
that go out to companies that have incorporated overseas to avoid U.S. 
taxes. By the way, knowing this is not in the House bill, I tried to 
have a very moderate version which is really to not even reach back 
retroactively but to look at this prospectively.
  That is the amendment. My guess is there will be a lot of support for 
the amendment. Without the unanimous consent agreement, I will wait 
until after opening statements and then try to seek recognition. I 
suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The bill clerk proceeded to call the roll.
  Mr. WELLSTONE. Mr. President, I ask unanimous consent the order for 
the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. WELLSTONE. Mr. President, I will at least, even though I do not 
have assurance of being able to do the first amendment--I will just 
send the amendment to the desk. Usually what Senators want is for those 
of us who have amendments to come out here. I am just trying to get 
going here.
  The PRESIDING OFFICER. The number of the amendment is No. 4364, which 
the clerk has.
  Mr. WELLSTONE. I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The assistant legislative clerk proceeded to call the roll.
  Mr. STEVENS. Mr. President, I ask unanimous consent that the order 
for the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. INOUYE. Mr. President, Today I am pleased to report H.R. 5010 to 
the Senate with the Appropriations Committee's recommendations for 
funding the Department of Defense for Fiscal Year 2003.
  The Bill before the Senate totals $355.4 billion in new 
appropriations for the Defense Department.
  This is the largest spending Bill the Senate has ever considered. It 
is $35 billion more than was approved for FY 2002 and nearly $700 
million more than recommended by the House last month. In light of the 
threat to this Nation, I believe the increase is well warranted.
  I want to point out to my colleagues that while the Bill is the 
highest in history, the total recommended is still $11.4 billion below 
the President's request.
  A request for $10 billion was originally presented by the President 
for contingency costs for the global war on terrorism.
  This amount is being withheld by the Appropriations Committee to be 
allocated at a later date.
  On July 3, the President submitted a sketch of how he would like 
these funds appropriated. Unfortunately, no details on the use of the 
funds were provided. Therefore, the Committee has not allocated the 
funding to the Subcommittee yet.
  I should point out that the measure that passed the House also did 
not address the $10 billion contingency amount.
  Over the next several months we will work with the Administration to 
identify the specific needs for this funding.
  We expect that a supplemental Bill will be forthcoming to allocate 
the full $10 billion to DoD.
  The remaining $1.4 billion decrease reflects transfers made to other 
defense related activities to cover pressing requirements for military 
construction and nuclear weapons related programs in the Department of 
Energy. These are not under the jurisdiction of the Defense 
Subcommittee.
  The priorities for this Bill remain the same as last year. First and 
foremost, we must ensure that we provide what the men and women in 
uniform need. To that end, we have fully funded the request for a 4.1% 
across-the-board pay raise; funded the newly authorized benefits for 
our military; provided funding to cover the authorized end strength for 
our Active, Guard, and Reserves; funded the Tricare for Life program 
for our military retirees; and, fully funded the Defense Health 
Program.
  Second, we have included funding for all the Defense Department's 
transformation programs.
  We recommend full funding for the Army's Interim Armored Vehicle. We 
have increased funding for unmanned aerial vehicles. We recommend an 
increase of $278 million in the Army's future combat system.
  And we provide an additional $70 million to support the planning and 
deployment of the New Interim Army Brigade Combat Teams and strongly 
encourage the Defense Department to deploy all six Brigades.
  Third, we recommend funding all the investment priorities of the 
Defense Department. This includes full funding for the F-22, full 
funding for the Navy's DDX, increased funding for four more F/A-18 
aircraft, full funding for 15 C-17 aircraft, full funding for V-22 
aircraft purchases, and increasing funding for Navy shipbuilding.
  Fourth, a major initiative in funding for the bill is to improve 
fiscal discipline in the Department of Defense. This Committee and our 
colleagues in the House have been concerned for several years with the 
increased cost growth in Navy ships. This year alone the total unfunded 
liability for the Navy in this area has increased by $1 billion to $4 
billion.
  The Committee has carefully reviewed the request and reallocated 
resources that are not required at this time, in order to increase 
funding to pay off these existing bills. In total, the Committee 
recommends $1.4 billion to cover these must pay bills. We have 
discussed this matter with Navy officials and they concur that this is 
the best approach to get their financial house in order.
  Fifth, the bill recommends adding $585 million to purchase 15 C-17 
aircraft. The Air Force recommended a risky scheme, already rejected by 
the House, to finance the C-17 Program incrementally. This proposal 
could have required us to cut C-17 production to 12. The recommendation 
will ensure that we continue to produce 15 C-17's under the approved 
multi-year contract.
  Sixth, the Committee has mirrored the recommendations approved by the 
Senate regarding ballistic missile defense. The bill provides $6.9 
billion for ballistic missile defense programs. In addition, as 
authorized, the Committee recommends $814 million to be allocated at 
the discretion of the President

[[Page 15478]]

for either counterterrorism or missile defense.
  In total, the $7.7 billion recommendation is the same as requested by 
the Administration.
  Finally, I want to thank my Co-Chairman, Senator Stevens and all of 
his hard work on this bill. The Committee held 12 hearings to review 
the Defense Department's budget.
  The recommendations that we have put forward here reflect what we 
learned in those hearings, and in our meetings with senior DoD 
officials and members of the public.
  I believe this is a very good bill and urge your support.
  Mr. STEVENS. Mr. President, I endorse the statement made by the 
Distinguished Chairman of our Subcommittee, Senator Inouye, and fully 
support the Bill now pending before the Senate. In a time of war and 
conflict, including unprecedented threats here at home, the Senate 
engages in no more important task than funding our national defense. 
The Bill reported by the Committee, under Senator Inouye's leadership 
and guidance, fully meets the needs of our men and women who serve in 
the Armed Forces, today and for the future.
  The Bill exceeds the level provided in the House version of the Bill 
by nearly $700 million.
  The Bill is consistent with the President's total request for the 
defense budget function 050, with the exception of the $10 billion 
reserve, which I will speak to shortly.
  The Chairman has accurately and comprehensively addressed the 
contents of the Bill, I will take just a few moments to highlight 
several priorities. While providing unprecedented levels of funding for 
current training and operations, this Bill serves to decisively move 
our military towards a future of more mobile, more lethal, and more 
efficient systems and capabilities. In all four services, and in the 
Missile Defense Program, this Bill shifts from the sustainment of 
legacy systems, designed to fight the Cold War, to the technologies of 
the 21st Century.
  For the Army, the increase in this Bill for the future combat system, 
and the Non-Line-of-Sight Cannon to succeed the Crusader, keeps faith 
with General Shinseki's vision of the Army's future.
  For the Navy, full funding for the DD-X Program, and start up funds 
for the Littoral Combat Ship, prepare the Navy to maintain our 
dominance at sea.
  For the Air Force, funding for the F-22, the JSF, C-17, and JASSAM 
all contribute to a refurbishment of the Air Force unmatched since the 
introduction of the jet fighter in the 1950's.
  For the Marine Corps, the Bill fully supports the V-22, and puts the 
LPD-17 Class Amphibious Assault Ship Program back on track, along with 
JSF.
  Of special importance to me, and my State, is the funding provided in 
the Bill for missile defense. Intelligence analyses over the past 
decade consistently demonstrate the increased threat, and our continued 
vulnerability to long-rang missile attack, potentially with weapons of 
mass destruction. President Bush, in a new relationship with Russia, 
has established a framework whereby our Nation will go forward with a 
limited missile defense capability, without putting at risk our 
relations with Russia.
  Many claimed that deployment of U.S. national missile defense systems 
would precipitate a new arms race. That speculation has proven to be 
without basis or merit.
  Last week, several Members met with our Supreme Allied Commander in 
Europe, Gen. Joe Ralston, who spoke positively about the new ties 
between NATO and Russia.
  Greater security for our Nation fosters greater security and 
stability for our allies and emerging partners.
  This Bill accommodates the priorities presented by the President and 
the Secretary of Defense to the Congress.
  The Bill lives within the fiscal limits set by our Committee in the 
absence of a budget resolution.
  The Bill addresses the key priorities raised in the Senate's 
consideration of the Defense Authorization Bill for Fiscal Year 2003.
  I urge all Members to work with the Chairman today to accomplish the 
expeditious consideration and passage of this Bill.
  Consistent with the allocation adopted by the Appropriations 
Committee, by unanimous vote, I will oppose any amendment that would 
increase the spending level in this Bill.
  We have been working with Members since the Bill was filed to address 
additional concerns, and will proceed to a number of cleared amendments 
shortly.
  I will close by expressing by appreciation to the Chairman for his 
partnership, colleagiltiy and courtesy at every state in the 
preparation of this Bill.
  I support the Bill with reservation or qualification, and urge all my 
Colleagues to join advancing this Bill to Conference today.
  Mr. INOUYE. Mr. President, I believe the Senator from Minnesota 
wishes to be recognized.
  The PRESIDING OFFICER. The Senator from Minnesota.
  Mr. WELLSTONE. Thank you, Mr. President.


                           Amendment No. 4364

  Mr. WELLSTONE. Mr. President, I send an amendment to the desk.
  The PRESIDING OFFICER. The clerk will report.
  The assistant legislative clerk read as follows:

       The Senator from Minnesota [Mr. Wellstone] proposes an 
     amendment numbered 4364.

  Mr. WELLSTONE. Mr. President, I ask unanimous consent that reading of 
the amendment be dispensed with.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment is as follows:

 (Purpose: To prohibit the use of funds made available in this Act for 
        payment on any new contract to any corporate expatriate)

       On page 223, between lines 20 and 21, insert the following:
       Sec. 8124. Corporate Expatriates. (a) Limitation.--None of 
     the funds made available in this Act may be obligated for 
     payment on any new contract to a subsidiary of a publicly 
     traded corporation if the corporation incorporated after 
     December 31, 2001 in a tax haven country but the United 
     States is the principal market for the public trading of the 
     corporation's stock.
       (b) Definition.--For purposes of subsection (a), the term 
     ``tax haven country'' means each of the following: Barbados, 
     Bermuda, British Virgin Islands, Cayman Islands, Commonwealth 
     of the Bahamas, Cyprus, Gibraltar, Isle of Man, the 
     Principality of Liechtenstein, the Principality of Monaco, 
     the Republic of the Seychelles, and any other country that 
     the Secretary of the Treasury determines is used as a site of 
     incorporation primarily for the purpose of avoiding United 
     States taxation.
       (c) Waiver.--The President may waive subsection (a) with 
     respect to any specific contract if the President certifies 
     to the Appropriations Committees of the House of 
     Representatives and the Senate that the waiver is required in 
     the interest of national security.
  Mr. WELLSTONE. Mr. President and colleagues, I offer a very simple 
amendment that would bar any funds in this bill from being used to 
enter contracts with U.S. companies that incorporate overseas to avoid 
U.S. taxes. Let me repeat that. I rise to offer a very simple amendment 
that I believe will command a majority vote--I hope more than a 
majority vote--in the Senate that would bar any funds in this bill from 
being used to enter contracts with U.S. companies that incorporate 
overseas to avoid U.S. taxes.
  Former U.S. companies that have renounced their citizenship currently 
hold at least $2 billion worth of contracts with the Federal 
Government. I do not think companies that are not willing to pay their 
fair share of taxes should be able to hold these contracts.
  U.S. companies that play by the rules of the game, that pay their 
fair share of taxes, should not be forced to compete with bad actors 
that can undercut their bids because of a tax loophole.
  In the last couple of years, a number of prominent U.S. corporations, 
using creative paperwork, have transformed themselves into Bermuda 
corporations, purely to avoid paying their fair share of U.S. taxes.
  These new Bermuda companies are essentially or basically shell 
corporations. They have no staff. They have no offices. They have no 
business activity

[[Page 15479]]

in Bermuda. They exist for the sole purpose of shielding income from 
the Internal Revenue Service.
  U.S. tax law contains many provisions designed to expose such 
creative accounting and to require U.S. companies that are foreign in 
name only to pay the same taxes as other domestic corporations. But 
these bad corporate former citizens exploit a specific loophole in 
current law so that the company is treated as foreign for tax purposes 
and, therefore, pays no U.S. taxes on its foreign income.
  The loophole gives tens of millions of dollars in tax breaks to major 
multinational companies with significant non-U.S. business. It also 
puts other U.S. companies unwilling or unable to use this loophole at a 
competitive disadvantage. No American company should be penalized 
staying put while others renounce U.S. citizenship for a tax break.
  The problem with all this is that when these companies do not pay 
their fair share, the rest of the American taxpayers and businesses are 
stuck with the bill.
  I think I can safely say that very few of the small businesses that I 
visit in Detroit Lakes, MN, or Mankato or Minneapolis or Duluth can 
avail themselves of the ``Bermuda Triangle.'' They cannot afford the 
big-name tax lawyers and accountants to show them how to do their books 
Enron-style, but they probably would not want to anyway if it meant 
renouncing their citizenship. So the price they pay for their good 
citizenship is a higher tax bill.
  I believe the Congress will close this tax loophole this year. There 
is growing support for doing so in the House. And I have introduced 
legislation to close this loophole, and the Senate Finance Committee 
has reported a version of this legislation, that I strongly support, 
that would do so as well.
  I say to the distinguished chair of the Appropriations Subcommittee 
on Defense, it is not appropriate for the Senate to close the tax 
loophole on this bill. This is not a tax bill, and I understand that. 
Frankly, I think the tax legislation that is going to pass is going to 
make it clear that any company that is located in Bermuda forthwith, no 
matter when they incorporated, they are not going to be able to do it 
any longer. They are not going to be able to do it. We are going to 
close that tax loophole.
  But what is appropriate for us to say today--and this is my moderate 
version; this is the Senator Wellstone moderate version--what is 
appropriate for us to say today is, if a U.S. company wants to bid for 
a contract for U.S. defense work, it should not renounce its U.S. 
citizenship for a tax break.
  I am simply applying this to any corporation that incorporated after 
December 31, 2001. I am not even reaching back. I am saying, look, 
everyone has had the time now to understand, first, the unfairness and 
the outrageousness of this from the point of view of who pays taxes, 
who pays their fair share of taxes; and, second, everybody has had the 
time to now understand what 9/11 meant to us, and any company, with 
that background, that now continues to engage in this egregious 
practice--after December 31, 2001, and in the future--that is going to 
basically say, ``We are renouncing our U.S. citizenship so we don't 
have to pay taxes,'' no longer will be eligible for any procurement. 
That really is what this amendment says.
  We all make sacrifices in a time of war. The only sacrifice this 
amendment asks of Federal contractors is that they pay their fair share 
of taxes like everybody else.
  I say to my colleagues--and I say to the distinguished chair of the 
committee--that, look, I want to go after this tax loophole. Believe 
me, we will eliminate it. We will do it through the tax committee.
  In the homeland defense bill on the House side, there is a tougher 
version that reaches back. But I know in the House Defense 
appropriations bill there is no such provision such as the provision I 
am offering today.
  So what I am saying to my colleagues--I guess I have a little bit 
more; maybe it is because I am a Senator; maybe it is because of party 
control, I don't know--I have a little bit more faith in what we will 
do here. What I am saying to my colleagues is, I am giving you the 
moderate version. I am giving you the most reasonable proposition.
  We are only saying to Federal contractors: Pay your fair share of 
taxes as does everybody else, and for now on--December 31, 2001, and 
forward--any of you companies, if you want to go to Bermuda and play 
this shell game and renounce your citizenship, then you are not going 
to get our defense contracts. You are not going to get any of the 
procurement.
  This is really simple. This is really basic. This is really 
straightforward. I think it would be a great shot across the bow and a 
really powerful message, a really powerful and positive message, by the 
Senate to go on record with a strong vote for this amendment.
  The PRESIDING OFFICER. The Senator from Hawaii.
  Mr. INOUYE. Mr. President, I hope the Senator agrees that this 
amendment can be set aside temporarily to accommodate the request of 
the chairman of the Finance Committee who wishes to study the measure.
  I can assure you, sir, this matter will be considered.
  The PRESIDING OFFICER. The Senator from Minnesota.
  Mr. WELLSTONE. Mr. President, I say to my colleague from Hawaii, I 
would be pleased to honor his request. I also know that our colleague, 
Senator Stevens, from Alaska has an important engagement at the White 
House and will not be here for a while anyway and requested that he be 
here before there be any vote. So we can set this amendment aside.
  The only thing I want to say to my colleague from Hawaii is, I am 
certainly pleased for the Finance Committee people to look at this 
amendment. We will continue the debate, and we will have a vote. We 
will have a recorded vote. I worked hard on what could be the most 
central, simple, compelling message that also is fair--maybe almost too 
fair, frankly--to some of these companies. This is the proposition. 
This is the proposal.
  So it is fine with me to put it aside, understanding full well that 
we will continue the debate and have an up-or-down vote.
  Mr. INOUYE. With that understanding, I ask unanimous consent that 
this measure be temporarily set aside.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. INOUYE. Mr. President, I ask unanimous consent that the order for 
the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.


               Amendments Nos. 4373 through 4386, En Bloc

  Mr. INOUYE. Mr. President, I have a list of amendments. These 
amendments have been cleared by both managers and their staffs. No 
objections have been voiced. Furthermore, these amendments do not add a 
single dollar to the bill. These are earmarks.
  With that, the first amendment on behalf of Senator Allen; variable 
floor rocket propulsion, earmarking $5 million; next amendment for 
Senator Breaux, naval warfare tech center, earmarking $7 million; The 
next amendment for Senator Bennett, Army Tooele Depot, earmarking $4.5 
million; Next amendment for Senator Cleland, microelectronics, 
earmarking $3 million; Next amendment for Senator Collins, TRP 
composites, earmarking $2 million; Next amendment for Senator Conrad, 
Internet-based diabetes management, earmarking $5 million; Next 
amendment for Senator Dayton, live fire ranges, earmarking $3.7 
million; Amendment for Senator DeWine, Army weapon materials, 
earmarking $5 million; Next amendment for Senator Ensign, PRC-117 
radios, earmarking $500,000; Next amendment for Senators Frist and 
Thompson, expandable light shelters, earmarking $5 million; Next 
amendment for Senator Kyl, extended range warfare, earmarking $10 
million; Next amendment for Senator Santorum and Senator Specter, land 
forces readiness, earmarking $3 million; Next amendment for Senators 
Santorum and Specter, civil reserve space, earmarking $1

[[Page 15480]]

million; Next amendment for Senators Voinovich and DeWine, viable 
combat avionics, earmarking $2 million.
  Mr. President, I send the amendments to the desk en bloc and ask that 
they be considered and agreed to en bloc.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendments (Nos. 4373 through 4386) were agreed to en bloc, as 
follows:


                           amendment no. 4373

 (Purpose: To make available from amounts available for the Air Force 
  for research, development, test, and evaluation $5,000,000 for the 
       Variable Flow Ducted Rocket propulsion system (PE063216F)

       On page 223, between lines 20 and 21, insert the following:
       Sec. 8124. Of the amount appropriated by title IV under the 
     heading ``Research, Development, Test, and Evaluation, Air 
     Force'', up to $5,000,000 may be available for the Variable 
     Flow Ducted Rocket propulsion system (PE063216F).
                                  ____



                           amendment no. 4374

    (Purpose: To set aside funding under RDT&E, Navy, for the Human 
Resource Enterprise Strategy at the Space and Naval Warfare Information 
                           Technology Center)

       On page 223, between lines 20 and 21, insert the following:
       Sec. 8124. Of the total amount appropriated by title IV 
     under the heading ``Research, Development, Test, and 
     Evaluation, Navy'', $7,000,000 may be used for the Human 
     Resource Enterprise Strategy at the Space and Naval Warfare 
     Information Technology Center.
                                  ____



                           amendment no. 4375

(Purpose: To set aside from amounts available from H.R. 4775 to settle 
       the taking of property adjacent to the Army Tooele Depot)

       At the appropriate place in the bill, add the following:
       Sec.   . Of the amounts appropriated in H.R. 4775, Chapter 
     3, under the heading ``Defense Emergency Response'', up to 
     $4,500,000 may be made available to settle the disputed 
     takings of property adjacent to the Tooele Army Depot, Utah.
                                  ____



                           amendment no. 4376

  (Purpose: To make available from amounts available for Defense-Wide 
 research, development, test, and evaluation, $3,000,000 for execution 
 of the ferrite diminishing manufacturing program by the Defense Micro-
                         Electronics Activity)

       On page 223, between lines 20 and 21, insert the following:
       Sec. 8124. Of the amount appropriated by title IV under the 
     heading ``Research, Development, Test, and Evaluation, 
     Defense-Wide'', up to $3,000,000 may be available for 
     execution of the ferrite diminishing manufacturing program by 
     the Defense Micro-Electronics Activity.
                                  ____



                           amendment no. 4377

    (Purpose: To set aside from amounts available for the Navy for 
research, development, test, and evaluation, $2,000,000 for Structural 
              Reliability of FRP Composites (PE0602123N))

       In title IV under the heading ``Research Development, Test, 
     and Evaluation, Navy,'' insert before the period the 
     following: ``Provided further, That of the funds appropriated 
     by this paragraph, up to $2,000,000 may be available for 
     Structural Reliability of FRP Composites.

                           amendment no. 4378

    (Purpose: To set aside from amounts available for the Army for 
research, development, test, and evaluation, $5,000,000 for the Medical 
  Vanguard Project to expand the clinical trial of the Internet-based 
            diabetes managements system under that project)

       On page 223, between lines 20 and 21, insert the following:
       Sec. 8124. Of the amount appropriated by title IV under the 
     heading Research, Development, Test, and Evaluation, Army'', 
     up to $5,000,000 may be available for the Medical Vanguard 
     Project to expand the clinical trial of the Internet-based 
     diabetes managements system under that project.
                                  ____



                           amendment no. 4379

  (Purpose: To make available from amounts available for the Army for 
  operation and maintenance, $3,700,000 for Live Fire Range Upgrades)

       On page 223, between lines 20 and 21, insert the following:
       Sec. 8124. (a) Amount Available for Live Fire Range 
     Upgrades.--Of the amount appropriated by title II under the 
     heading Operation and Maintenance, Army'', up to $3,700,000 
     may be available for Live Fire Range Upgrades.
       (b) Supplement Not Supplant.--The amount available under 
     subsection (a) for the purpose specified in that subsection 
     is in addition to any other amounts available under this Act 
     for that purpose.
                                  ____



                           Amendment No. 4380

(Purpose: To set aside funding under RDT&E, Army, for materials joining 
                        for Army weapon systems)

       On page 223, between lines 20 and 21, insert the following:
       Sec. 8124. Of the amount appropriated by title IV under the 
     heading ``Research, Development, Test and Evaluation, Army'', 
     up to $5,000,000 may be used for materials joining for Army 
     weapon systems.
                                  ____



                           Amendment No. 4381

  (Purpose: To make available from amounts available to the Army for 
    other procurement $500,000 for PRC-117F SATCOM backpack radios)

       On page 223, between lines 20 and 21, insert the following:
       Sec. 8124. Of the amount appropriated by III under the 
     heading ``Other Procurement, Army'', up to $500,000 may be 
     available for PRC-117F SATCOM backpack radios.
                                  ____



                           Amendment No. 4382

       On page 223, between lines 20 and 21, insert the following:
       Sec. 8124. Of the total amount appropriated by this 
     division for ``Operation and Maintenance, Army'', up to 
     $5,000,000 may be used for Expandable Light Air Mobility 
     Shelters (ELAMS).
                                  ____



                           AMENDMENT NO. 4383

    (Purpose: To set aside from amounts available for the Navy for 
research, development, test, and evaluation for Extended Range Anti-Air 
                                Warfare)

       At the appropriate place in the bill, add the following:
       Sec.  . Of the amounts appropriated by Title IV under the 
     heading ``Research, Development, Test, and Evaluation, 
     Navy'', up to $10,000,000 may be made available for extended 
     range anti-air warfare.
                                  ____



                           AMENDMENT NO. 4384

(Purpose: To set aside from amounts available for the Army Reserve for 
  operation and maintenance $3,000,000 for Land Forces Readiness for 
                  Information Operations Sustainment)

       On page 223, between lines 20 and 21, insert the following:
       Sec. 8124. Of the amount appropriated by title II under the 
     heading ``Operation and Maintenance, Army Reserve'', up to 
     $3,000,000 may be available for Land Forces Readiness for 
     Information Operations Sustainment.
                                  ____



                           AMENDMENT NO. 4385

  (Purpose: To set aside from amounts available for the Air Force for 
 research, development, test, and evaluation $1,000,000 for Space and 
     Missile Operations for the Civil Reserve Space Service (CRSS) 
                              initiative)

       On page 223, between lines 20 and 21, insert the following:
       Sec. 8124. Of the amount appropriated by title IV under the 
     heading ``Research, Development, Test, and Evaluation, Air 
     Force'', up to $1,000,000 may be available for Space and 
     Missile Operations for the Civil Reserve Space Service (CRSS) 
     initiative.
                                  ____



                           AMENDMENT NO. 4386

 (Purpose: To set aside funding under RDT&E, Air Force, for the Viable 
              Combat Avionics Initiative of the Air Force)

       On page 223, between lines 20 and 21, insert the following:
       Sec. 8124. Of the amount appropriated by title IV under the 
     heading ``Research, Development, Test and Evaluation, Air 
     Force'', $2,000,000 may be used for the Viable Combat 
     Avionics Initiative of the Air Force.
                                  ____

  Mr. INOUYE. Mr. President, I move to reconsider the vote and I move 
to lay that motion on the table.
  The motion to lay on the table was agreed to.
  Mr. INOUYE. Mr. President, I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The senior assistant bill clerk proceeded to call the roll.
  Mr. REID. Mr. President, I ask unanimous consent that the order for 
the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.

                          ____________________