[House Report 112-94]
[From the U.S. Government Publishing Office]


112th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                     112-94

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



 
     MILITARY CONSTRUCTION, VETERANS AFFAIRS, AND RELATED AGENCIES 
                       APPROPRIATIONS BILL, 2012

                                _______
                                

  May 31, 2011.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

         Mr. Culberson, from the Committee on Appropriations, 
                        submitted the following

                              R E P O R T

                             together with

                             MINORITY VIEWS

                        [To accompany H.R. 2055]

    The Committee on Appropriations submits the following 
report in explanation of the accompanying bill making 
appropriations for military construction, the Department of 
Veterans Affairs, and related agencies for the fiscal year 
ending September 30, 2012, and for other purposes.

                                CONTENTS

                                                                   Page
Purpose of the Bill..............................................     2
Summary of Committee Recommendation..............................     2
Comparative Statement of New Budget Authority....................     4
Management and Oversight Initiatives.............................    13
Department of Defense:                                               14
    Military Construction........................................    14
    NATO Security Investment Program.............................    25
    Family Housing Construction and Operation and Maintenance....    26
    Chemical Demilitarization Construction, Defense-Wide.........    29
    Department of Defense Base Closure Account 1990..............    29
    Department of Defense Base Closure Account 2005..............    29
    Administrative Provisions....................................    30
Department of Veterans Affairs:                                      32
  Overview.......................................................    32
  Veterans Benefits Administration...............................    33
  Veterans Health Administration.................................    36
  National Cemetery Administration...............................    43
  Departmental Administration....................................    44
  Administrative Provisions......................................    54
Related Agencies:                                                    57
    American Battle Monuments Commission.........................    57
    U.S. Court of Appeals for Veterans Claims....................    58
    Cemeterial Expenses, Army....................................    58
    Armed Forces Retirement Home.................................    59
General Provisions...............................................    60
Changes in Application of Existing Law...........................    61
Appropriations Not Authorized by Law.............................    64
Transfer of Funds................................................    66
Rescissions......................................................    67
Constitutional Authority.........................................    67
Comparison With the Budget Resolution............................    68
Five-Year Projection of Outlays..................................    68
Assistance to State and Local Governments........................    68
Statement of General Performance Goals and Objectives............    68
Ramseyer Rule....................................................    68
Full Committee Votes.............................................    70
Disclosure of Earmarks and Congressionally Directed Spending 
  Items..........................................................    71
State Project List...............................................    71
Minority Views...................................................    89

                          Purpose of the Bill

    The purpose of the bill is to support our military and 
their families and provide the benefits and medical care that 
our veterans have earned for their service. This is 
accomplished through the programs funded in the bill, which 
provide the facilities and infrastructure needed to house, 
train, and equip our military personnel to defend this Nation, 
both in the United States and abroad; provide the housing and 
military community infrastructure that supports a good quality 
of life for them and their families; and allow the military to 
maintain an efficient and effective base structure. The bill 
also funds programs to ensure that all veterans receive the 
benefits and medical care that they have earned as a result of 
the sacrifices they have made in their service to our country. 
Finally, the bill funds four related agencies that provide 
support to our Nation's heroes: the American Battle Monuments 
Commission, Cemeterial Expenses, Army (including Arlington 
National Cemetery), the United States Court of Appeals for 
Veterans Claims, and the Armed Forces Retirement Home.

                  Summary of Committee Recommendation

    The Committee recommendations continue necessary support 
for servicemembers and veterans, while at the same time the 
Committee is keenly aware of the dire financial situation the 
Nation faces. The scale of the Nation's debt and the continuing 
annual deficit weighed heavily on the Committee as it 
formulated this bill. A driving force behind the Committee 
recommendations is the need to do all that we can to reduce the 
deficit and balance the budget of the United States. Where it 
was prudent, the Committee recommendation rescinds prior year 
funding that is no longer needed for the purpose for which it 
was appropriated while leaving sufficient resources to close 
out contracts. We took the action of deleting planning funds 
for construction projects that would commit future Congresses 
to exceedingly large expenses, and we have included provisions 
which will ensure the funding appropriated is spent in a wise 
manner. We have included direction to the Department of Defense 
and the Department of Veterans Affairs to report on the 
feasibility of structuring contracts in such a way as to 
encourage efficiency and economy, by returning to contractors a 
portion of any savings they are able to generate as they 
execute construction contracts, while returning a majority of 
those savings to the Treasury to reduce our dependence on debt.
    The Committee recommends $142,032,269,000 in budget 
authority for the fiscal year 2012 programs and activities 
funded in the bill. In addition, advance appropriations of 
$52,541,000,000 are provided for fiscal year 2013 medical 
programs of the Department of Veterans Affairs. The fiscal year 
2012 recommendation is an increase of $3,308,306,000 above the 
fiscal year 2011 enacted level and $1,252,737,000 below the 
President's request. Included in this amount is $69,497,269,000 
in mandatory budget authority and $72,535,000,000 in 
discretionary budget authority.
    The recommendation reflects the Committee's continued 
commitment to our servicemembers and veterans and to their 
families. The total funding level for military construction is 
$14,014,047,000, a 15.7 percent decrease below the fiscal year 
2011 enacted level. A significant portion of this decrease is 
attributed to the reduction in BRAC 2005 appropriation as that 
program completes its requirements. The overall level of 
funding supports the servicemen and women and their families 
who are making sacrifices during this time of war. The programs 
funded in the bill for the Department of Defense address the 
numerous challenges we have asked our military to accomplish 
simultaneously. These funds support continued cleanup of 
military bases closed during previous Base Realignment and 
Closure rounds, resource the military's global re-stationing 
plan, and ensure that our military personnel and their 
families' quality of life is preserved within these plans.
    The total funding level available for fiscal year 2012 for 
the Department of Veterans Affairs is $127,796,852,000, an 
increase of 5.8 percent over the fiscal year 2011 enacted 
level. The recommendation provides funding increases for 
several mandatory veteran benefits programs, as authorized by 
current law. In addition to appropriations for fiscal year 
2012, the Committee recommendation includes $52,541,000,000 in 
advance appropriations for fiscal year 2013 for the three 
health care accounts of the Department.
    The following table compares amounts recommended in the 
bill to the President's request and amounts appropriated in 
fiscal year 2011:


                  Management and Oversight Initiatives

    The Committee believes the effective stewardship of 
taxpayer dollars is of the highest priority. In the interest of 
eliminating waste, fraud, and abuse in Federal programs, the 
Committee has and will continue to use public hearings, 
briefings and information requests, and reviews by the 
Government Accountability Office and the Inspectors General to 
promote strong financial and program management, oversight and 
leadership at the Department of Defense, the Department of 
Veterans Affairs, and other agencies under the jurisdiction of 
this bill.
    The fiscal year 2012 appropriations Act and the 
accompanying report address management challenges of the 
Federal agencies funded herein, including directives to 
strengthen financial and program management, eliminate 
redundancy, and improve implementation and oversight of 
initiatives that support the mission of this bill. The 
Committee will use every means at its disposal to reduce 
mismanagement that results in waste, fraud, and abuse.
    Department of Defense.--In addition to the notification and 
reporting requirements for military construction programs 
contained in Title 10, United States Code, the Committee's 
recommendations include several provisions requiring the 
Department of Defense to report on various aspects of military 
construction programs, or to provide notification to the 
Committee when certain actions are taken. The Committee also 
retains prior approval authority for any reprogramming of funds 
exceeding a specific threshold.
    Department of Veterans Affairs (VA).--With the 
$127,796,852,000 provided for the VA in this bill and the 1.4 
percent increase in the number of veterans seeking VA medical 
services, the Committee believes it is important to strengthen 
its tools to monitor spending as well as the skills and 
operating procedures of the VA workforce. The following 
initiatives demonstrate the Committee's oversight focus:
     Strengthening contracting oversight. The bill 
includes $20,000,000 to strengthen VA acquisitions management. 
While VA contract funding has grown substantially since 2001, 
the capacity of the acquisition workforce has not kept pace, 
leading to increased risk of higher costs and unsuccessful 
contract outcomes. This funding supports an increase in 
acquisition personnel and invests in appropriate training and 
technology to make the workforce more effective in managing 
taxpayer dollars.
     Claims backlog reduction. The Department's annual 
claims receipts are expected to grow from 1,192,346 in 2010 to 
1,325,953 in 2012, an increase of over 11 percent. While the 
Department anticipates an initial increase in the average time 
to process a claim due to increases in the number of claims 
being filed, as previously hired personnel become more 
proficient and better trained, the Department expects to meet 
its strategic target of 125 days to process claims by 2015. 
Deploying leading-edge, powerful 21st Century IT solutions to 
create a smart, paperless claims system which simplifies and 
improves claims processing for timely and accurate decisions 
the first time is key to achieving this goal, and the Committee 
has provided the funding necessary to develop these IT 
solutions.
     Claims processing review. In order to address the 
problems and delays the VA encounters in processing claims, the 
Committee has directed its Surveys and Investigations staff to 
review the process the Social Security Administration uses to 
administer its disability claims processing to determine 
whether there are efficiencies and best practices that the VA 
could adapt to improve disability claims processing.
     Misallocation of medical services funding. The 
Committee has heard concerns from numerous Members that the VA 
retains too much of the funding provided by Congress at 
headquarters and at the regional health networks instead of 
allowing it to flow through to the medical centers. The 
Committee is investigating the allocation process VA uses, 
mandating that VA provide information annually identifying the 
use of all funding retained at headquarters, as well as the 
funding retained by each network and for which purposes.
     Bid savings control. The VA has considerable 
flexibility in allocating funding for major construction 
projects. Once funding is appropriated for a particular 
construction project, the Committee has received little or no 
useful information about the ongoing status of the project, 
including whether any bid savings have been realized by the VA 
when contracts are awarded. The Committee includes bill 
language requiring the VA to notify the Committee of all bid 
savings totaling $5,000,000 or more, or five percent, whichever 
is less, within 14 days of obligation. Additionally, the VA is 
not permitted to make any change in the scope of major 
construction projects.

                                TITLE I


                         DEPARTMENT OF DEFENSE


                     Military Construction Overview





Fiscal year 2011 enacted level\1\ (including             $16,622,672,000
 rescissions).....................................
Fiscal year 2012 budget request...................        14,766,047,000
Committee recommendation in the bill (including           14,014,047,000
 rescissions).....................................
Comparison with:
    Fiscal year 2011 enacted level................       (2,608,625,000)
    Fiscal year 2012 budget request...............        (752,000,000)

\1\Does not include the effect of a Government-wide .22 percent across
  the board cut.

    Military construction accounts provide funds for new 
construction, construction improvements, planning and design, 
and host nation support. Projects funded by these accounts 
include facilities for operations, training, maintenance, 
research and development, supply, medical care, and force 
protection, as well as unaccompanied housing, utilities 
infrastructure, and land acquisition.
    The Committee recommends a total appropriation of 
$14,014,047,000 for Military Construction, a decrease of 
$2,608,625,000 from the fiscal year 2011 enacted level and a 
decrease of $752,000,000 below the budget request.
    Quadrennial Defense Review/Nuclear Posture Review.--The 
Committee notes that the reports of the 2010 Quadrennial 
Defense Review (QDR) and the Nuclear Posture Review (NPR) 
contained a number of new programs and initiatives with 
potential impact on military construction requirements. Among 
these programs and initiatives are:
          --The creation of a new U.S. Cyber Command, a sub-
        unified command under U.S. Strategic Command;
          --Increasing the ``resiliency'' of forward posture 
        and overseas base infrastructure, including the 
        ``hardening'' of key facilities;
          --The full ``normalization'' of tours for U.S. Forces 
        Korea, requiring infrastructure to accommodate as many 
        as 14,000 military families, compared to less than 
        2,000 prior to adoption of this policy;
          --The implementation of a new phased, adaptive 
        approach to ballistic missile defense;
          --The stand-up of two new Army combat aviation 
        brigades, and the conversion of one heavy brigade 
        combat team to a Stryker brigade combat team by 2013;
          --The exploration of potential new modes to base the 
        Minuteman III Intercontinental Ballistic Missile force; 
        and
          --The creation of National Guard Homeland Response 
        Forces in each of the ten Federal Emergency Management 
        Agency regions.
    The Committee believes it is essential to ensure that the 
initiatives called for by the QDR/NPR are matched by the 
necessary resources in DOD budget plans, and therefore directs 
the Secretary of Defense to include a report along with the 
fiscal year 2013 military construction budget request 
describing how proposed QDR/NPR programs and initiatives are 
funded in the accompanying Future Years Defense Program (FYDP) 
for military construction, including dollar amounts associated 
with specific projects. The report shall also include a 
description of any ongoing studies or reviews specifically 
concerning military construction that follow directly from QDR/
NPR decisions or proposals, including estimated completion 
dates. This report shall be submitted to the congressional 
defense committees no later than 15 days following submission 
of the Administration's budget request for fiscal year 2013.
    Guam.--The Committee recommends $155,921,000, the budget 
request for construction in support of the realignment of 
Marine Corps forces from Okinawa to Guam, in addition to 
$147,600,000 in other military construction projects on the 
island. The Committee remains supportive of the realignment of 
Marine Corps forces from Okinawa to Guam. At the same time, the 
Committee has serious concerns about the Department of 
Defense's (DOD) ability to adequately fund and complete 
construction on time and within budget.
    The Committee believes that the Defense Environment Impact 
Study (DEIS) has very limited value with respect to providing a 
realistic depiction of how the Guam buildup would proceed. The 
DEIS does not formally consider any alternatives that would 
extend construction and/or the relocation of personnel and 
assets past 2014; rather, the DEIS concedes that ``Although the 
desired completion date for Marine forces relocation is by 
2014, the construction would likely continue to 2016.'' Even 
this timeline is likely to prove too optimistic; while the DEIS 
assumes that ``2014 is the last year that any new construction 
would begin'', the Navy's Future Years Defense Plan (FYDP) 
clearly shows significant military construction (including 
unspecified quality of life and base operations facilities) 
associated with the Marine forces relocation programmed for 
fiscal year 2015, likely pushing the completion date for 
construction to 2017 and beyond. This fundamental disconnect on 
the target completion date between the U.S.-Japan agreement, 
the DEIS, and the FYDP leaves doubt regarding the most 
realistic and feasible timeline for the Guam buildup.
    The EPA has raised a number of serious concerns regarding 
the quality of the DEIS, especially in relation to the 
cumulative impacts of the complex and interrelated actions 
needed not only to complete the relocation of Marine forces, 
but to provide transient berthing for an aircraft carrier and 
accommodate the expected influx of a large number of 
construction workers and associated personnel to execute the 
buildup.
    The buildup of Guam is not a ``military problem''; its main 
feature, the relocation of Marine Corps forces from Okinawa, 
results from a bilateral agreement negotiated between the U.S. 
and Japan governments, and therefore DOD should not be isolated 
as the sole source of funding for the necessary improvements to 
physical and human capital in Guam. The Committee notes with 
concern that the Administration has sent mixed signals on this 
issue.
    The Committee believes that while DOD should have the 
greatest share of leadership for identifying and addressing 
island-wide impacts, non-DOD agencies must also be provided 
directly with the budgetary resources necessary to assist the 
people of Guam with ``outside the fence line'' problems. To 
date, however, much of the non-DOD work appears to be mired in 
the ``planning'' or ``under consideration'' phase. The 
Committee agrees with DOD, as expressed through the DEIS, that 
the rate of military construction execution for the Guam 
buildup should be seen as a tool to mitigate or avoid harmful 
and potentially irreparable consequences.
    Charter Schools.--Department of Defense installations 
throughout the United States are struggling with the issue of 
dependent education for K-12 students. Frequent moves by 
military families highlight the differences and inequities 
among various state public school systems. An increasing number 
of families are opting for private or home schooling to 
compensate for lack of public education quality and to maintain 
continuity in their child's progress. The 2008 Quadrennial 
Review of Military Compensation (Volume II: Deferred and 
Noncash Compensation) (QRMC) from the U.S. Department of 
Defense, an assessment of the competitiveness of benefits, 
notes in a section on education for dependents that parents 
should be allowed to start charter schools at military 
installations and initiate them in the ``same way that 
civilians can under state law.'' ``Offering a charter school 
option in areas with less desirable local schools would give 
parents stationed in those locations another choice in addition 
to the private school or home schooling options,'' the report 
states. The Committee fully supports the QRMC and urges the 
Services to develop and publicize procedures for establishing 
Charter Schools at installations that are not supported 
adequately by the local public school system.
    The Committee directs the Comptroller General of the United 
States to conduct a study of charter schools located on 
domestic and international military installations. This report 
shall include a detailed description of charter schools 
currently in operation on military installations, identify the 
potential challenges of developing and implementing charter 
schools on additional military installations, and examine how 
oversubscribed enrollment would affect the continuity of 
education for dependents of members of the Armed Forces. The 
Comptroller General shall present the report to the Committees 
on Appropriations of both Houses of Congress no later than 
December 31, 2011.
    Facilities management, life-cycle costs, and construction 
method alternatives.--The Committee believes that the military 
construction program best serves both our military personnel 
and the taxpayers when projects are open to competitive bidding 
from contractors representing the widest possible range of 
construction methods. To that end, the Committee urges the 
Department of Defense and the execution agents for military 
construction, principally the Army Corps of Engineers and the 
Naval Facilities Engineering Command, to ensure that requests 
for proposals or qualifications do not arbitrarily foreclose, 
discourage, or privilege any type of construction method. The 
Committee continues to encourage a level playing field for both 
traditional construction methods and alternative methods such 
as permanent modular construction. The Committee also 
encourages DOD to evaluate the regular use of carbon fiber grid 
precast concrete technology in military construction projects.
    The Committee believes that the best way to ensure a level 
playing field is to set and communicate clear standards and 
expectations regarding life-cycle cost management for military 
construction, backed by rigorous, objective analysis. The 
Committee understands that situations may arise in which 
objectives other than life-cycle cost may take precedence; for 
example, speed of construction may be a predominant concern in 
order to meet time-limited goals such as base realignments, 
force structure growth, new system beddown, or urgent 
operational needs. At the same time, the Committee is concerned 
by the recent report from the Government Accountability Office 
(GAO-10-436) indicating that varying service attitudes toward 
the life-cycle costs of different construction methods were 
based more on pre-formed opinions, personal experiences, and 
anecdotal evidence rather than quantitative information or 
analyses. The Committee therefore urges DOD and the services to 
conduct further research regarding comparative life-cycle costs 
for differing types of construction, establish clear goals and 
benchmarks, and ensure these standards are communicated to 
contracting officials. Until such an empirical basis is 
established, the Committee urges DOD and the services to 
carefully reconsider blanket use of any new life-cycle 
approaches that depart from prior, standard practices.
    The Committee also notes that over the past three years, 
the Deputy Under Secretary of Defense for Installations and 
Environment (DUSD I&E) has indicated efforts underway to shift 
from a measurement of the recapitalization rate of DOD 
facilities in terms of years to one based on the actual 
condition of facilities and mission priority. Under the 2007 
Defense Installations Strategic Plan, this new methodology was 
to have been implemented by fiscal year 2010, but recent DUSD 
I&E testimony indicated this methodology was still under 
development. The Committee therefore directs the DUSD I&E to 
provide a status update on the development of this methodology 
and its implementation in the military construction program no 
later than January 30, 2012.
    Bid savings.--The Committee has ascertained from cost 
variation notices required by 10 U.S.C. 2853 that DOD continues 
to have bid savings on previously appropriated military 
construction projects. The Committee's recommendations 
therefore include rescissions to the Army, Navy, Air Force and 
Defense-Wide military construction accounts. The Committee 
directs the Government Accountability Office to review all 
military construction bid savings and report to the Committee 
by January 29, 2012.
    Incremental funding.--The Committee repeatedly has stated 
that while projects should be fully funded or separated into 
stand-alone phases where practicable, incremental funding 
should remain an option when it makes fiscal and programmatic 
sense. In some cases, the phased approach can drive up costs by 
requiring inefficient designs and separate bids that leave 
subsequent phases vulnerable to construction price inflation. 
However, the Committee will continue to exercise its 
prerogative to recommend incremental funding when circumstances 
dictate. The Committee therefore recommends incremental funding 
for the following five projects included in the 
Administration's request: Aviation Complex, Fort Wainwright, 
Alaska; Mountainview Operations Facility, Buckley Air Force 
Base, Colorado; Ambulatory Care Center, Joint Base Andrews, 
Maryland; Hospital Replacement, Fort Bliss, Texas; and Guam 
Strike Fuel Systems Maintenance Hangar, Joint Region Marianas, 
Guam.
    Facilities Sustainment, Restoration and Modernization 
(FSRM).--The Department is directed to continue describing on 
form 1390 the backlog of FSRM requirements at installations 
with future construction projects. For troop housing requests, 
form 1391 should describe any FSRM conducted in the past two 
years. Likewise, future requirements for unaccompanied housing 
at the corresponding installation should be included. 
Additionally, the forms should include English equivalent 
measurements for projects presented in metric measurement. 
Rules for funding repairs of facilities under the Operation and 
Maintenance accounts are described below:
          (1) components of the facility may be repaired by 
        replacement. Such replacement can be up to current 
        standards or codes;
          (2) interior arrangements and restorations may be 
        included as repair;
          (3) additions, new facilities, and functional 
        conversions must be performed as military construction 
        projects. Such projects may be done concurrently with 
        repair projects as long as the final conjunctively 
        funded project is a complete and usable facility; and
          (4) the appropriate service Secretary shall notify 
        the appropriate committees 21 days prior to carrying 
        out any repair project with an estimated cost in excess 
        of $7,500,000. The Committee strongly encourages the 
        Services and Defense agencies to indicate the plant 
        replacement value of the facility to be repaired on 
        each such notification.
    Quarterly summary of notifications.--The Committee directs 
the services and the Office of the Secretary Defense (on behalf 
of itself and Defense agencies) to continue to submit a 
quarterly report listing all notifications that have been 
submitted to the Committees during the preceding three-month 
period.
    Transfer of funds to and from the Foreign Currency 
Fluctuations, Construction, Defense Account.--The Committee 
directs DOD to submit a quarterly report to the Committees on 
Appropriations of both Houses of Congress on the transfer of 
funds from military construction and family housing accounts to 
the Foreign Currency Fluctuations, Construction, Defense 
account. The report shall specify the amount transferred to the 
Foreign Currency account from each military construction and/or 
family housing account, and all other accounts for which an 
appropriation is provided in this Act, during the preceding 
fiscal quarter, and the amounts transferred from the Foreign 
Currency account to the above accounts during the same period. 
This report shall be submitted no later than 30 days after the 
close of each fiscal quarter. In addition, the Department of 
Defense shall notify the Committees on Appropriations of both 
Houses of Congress within 7 days of transferring any amount in 
excess of $10,000,000 to or from the Foreign Currency account.
    Reprogramming Guidelines.--The following reprogramming 
guidelines apply for all military construction and family 
housing projects. A project or account (including the sub-
elements of an account) which has been specifically reduced by 
the Congress in acting on the budget request is considered to 
be a Congressional interest item and as such, prior approval is 
required. Accordingly, no reprogramming to an item specifically 
reduced below the threshold by the Congress is permitted, 
except that the Department of Defense may seek reprogramming 
for appropriated increments.
    The reprogramming criteria that apply to military 
construction projects (25 percent of the funded amount or 
$2,000,000, whichever is less) continue to apply to new housing 
construction projects and to improvements over $2,000,000. To 
provide the services the flexibility to proceed with 
construction contracts without disruption or delay, the costs 
associated with environmental hazard remediation such as 
asbestos removal, radon abatement, lead-based paint removal or 
abatement, and any other legislated environmental hazard 
remediation may be excluded, if such remediation requirements 
could not be reasonably anticipated at the time of the budget 
submission. This exclusion applies to projects authorized in 
this budget year, as well as projects authorized in prior years 
for which construction has not been completed. Planning and 
design costs associated with military construction and family 
housing projects may also be excluded from these guidelines. In 
instances where prior approval to a reprogramming request for a 
project or account has been received from the Committees on 
Appropriations of both Houses of Congress, the adjusted amount 
approved becomes the new base for any future increase or 
decrease via below-threshold reprogramming (provided that the 
project or account is not a Congressional interest item as 
defined above).
    In addition to these guidelines, the services are directed 
to adhere to the guidance for military construction 
reprogramming actions and notifications, including the 
pertinent statutory authorities contained in DOD Financial 
Management Regulation 7000.14-R and relevant updates and policy 
memoranda. The Committee further encourages the Office of the 
Director of National Intelligence to use a format similar to 
that used by the Office of the Secretary of Defense to submit 
reprogramming requests.
    Test and Training Range Engineering Labs.--The Committee 
believes funds for the construction of test and training range 
engineering labs, where possible, should be moved forward in 
the budgeting process in order to realize cost benefits to 
fulfill program obligations in a timely, cost-efficient manner. 
This approach should be used where the current project 
requirements have exceeded existing facility capability and the 
lack of proper laboratory space will lead to an inability to 
meet the Department of Defense's sponsored requirements.
    District Energy Systems.--The Committee recognizes that 
many military installations currently operate district energy 
systems, which connect multiple buildings through an 
underground piping network that carries hot and cold water or 
steam and achieve at least twice the fuel efficiency of 
traditional heating and cooling systems. The Department of 
Defense shall conduct a study to inventory which of its current 
and planned military installations could reduce energy costs or 
increase security of energy supply by building or expanding 
district energy systems and by installing combined heat and 
power technologies. This study shall include a list of priority 
installations to receive energy infrastructure investments and 
may include energy life cycle analyses. The results of the 
foregoing study shall be submitted to the Committees on 
Appropriations of both Houses of Congress by January 30, 2012. 
Further, increased investment in district energy systems shall 
be pursued as a strategy for the Department of Defense to 
achieve the goals of pollution reduction and environmental 
sustainability outlined in Executive Order 13514--Federal 
Leadership in Environmental, Energy, and Economic Performance.
    Child Development Centers.--The Committee encourages the 
Department of Defense to reaffirm its commitment to providing 
exceptional child care facilities on all domestic and 
international military installations. The Committee also 
encourages the Department of Defense to ensure that Child 
Development Centers located on military installations offer a 
safe childcare environment and meet professional standards for 
early childhood education.
    Base Realignment and Closure.--The Committee recognizes the 
unique strain placed upon state and local military communities, 
municipalities, and jurisdictions through the Base Realignment 
and Closure (BRAC) process. The Committee also recognizes that 
under U.S. Census rules established in response to the Vietnam 
War, military personnel stationed overseas were not counted in 
the 2010 Census as residents of the states and communities in 
which they were stationed. Consequently, because many federal 
and state programs use funding formulas tied to the decennial 
census, this rule could deprive military communities, where 
servicemembers and their families live a majority of the time, 
of federal funding they are justly entitled to receive. The 
Committee encourages the Department of Defense to work closely 
with local municipalities and jurisdictions to help minimize 
the impact of both policies on their ability to provide 
appropriate infrastructure and resources to best meet the needs 
of U.S. military servicemembers and their families.
    Contract Structures and Management.--The Committee believes 
that structuring contracts and employee compensation with 
incentives to reduce cost by permitting retention of a share of 
savings has the potential to generate substantial economies. 
The Committee directs the Department of Defense to report to 
the Committee on the structure of its contracts for military 
construction, including the portion of contracts awarded on a 
fixed-price basis, those awarded on a cost-plus fixed fee 
basis, and all other contract structures used by the Department 
for its construction programs. For all contracts, the 
Department is directed to report on incentives that are 
included in the contracts to reduce the cost to the government 
and any financial incentives included for completion of 
contracts ahead of schedule or under cost. If such incentives 
do not currently exist, the Department is to report on the 
feasibility of beginning such a program.
    Missile Defense within U.S. Pacific Command Area of 
Responsibility.--Obstacles ranging from passive to active 
hostility are challenges to the efforts by U.S. Pacific Command 
(PACOM) to maintain security across the large Asia-Pacific 
region. Potential and existing threats from North Korea and 
China make the command's focus on maintaining security 
throughout the region a top priority. Security in the region 
also includes missile defense of our allies. Currently there is 
a missile defense presence of patriot missile batteries based 
in South Korea and early warning information is shared with our 
allies. With Command's responsibility for such a vast region 
and the planned increase of Marines Corps personnel on Guam, 
the Committee directs the Department of Defense to submit a 
report within 60 days after enactment of this Act to the 
Committees on Appropriations of both Houses of Congress on what 
additional missile defense assets would be required to support 
continued security of the region from existing threats.

                      Military Construction, Army


                        (INCLUDING RESCISSIONS)




Fiscal year 2011 enacted level........................    $3,524,598,000
Fiscal year 2012 budget request.......................     3,235,991,000
Committee recommendation in the bill..................     3,041,491,000
Comparison with:
    Fiscal year 2011 enacted level....................     (483,107,000)
    Fiscal year 2012 budget request...................     (194,500,000)


    The Committee recommends an appropriation of $3,041,491,000 
for Military Construction, Army, a decrease of $483,107,000 
from the fiscal year 2011 enacted level and a decrease of 
$194,500,000 below the budget request.
    The Committee recommendation includes a reduction that 
totals $94,500,000 from three projects: An incremented Aviation 
Complex Phase III at Ft. Wainwright, Alaska due to lateness of 
the appropriations FY 2011 process and no funding provided for 
two commissary type facilities in Germersheim, Germany 
requested in the fiscal year 2012 submission. The reduction 
also includes a rescission from prior year appropriations Acts 
of $100,000,000.
    Tour Normalization, Korea.--The Department of Defense has 
taken on an arduous and expensive task to normalize deployments 
to Korea by establishing a two-year tour for single members of 
the service and three-year tours for married servicemembers to 
include their families. The task will require great investment 
in military construction for schools, family housing and child 
development centers just to name a few. The Committee is 
concerned that this investment may be an expense that the 
United States should not incur. The Committee directs the 
Secretary of Defense to report to the Committee on 
Appropriations within 60 days of enactment of this Act the 
total cost and plan for Tour Normalization in Korea.

              Military Construction, Navy and Marine Corps


                        (INCLUDING RESCISSIONS)




Fiscal year 2011 enacted level........................    $3,242,561,000
Fiscal year 2012 budget request.......................     2,461,547,000
Committee recommendation in the bill..................     2,436,547,000
Comparison with:
    Fiscal year 2011 enacted level....................     (806,014,000)
    Fiscal year 2012 budget request...................      (25,000,000)


    The Committee recommends an appropriation of $2,436,547,000 
for Military Construction, Navy and Marine Corps, a decrease of 
$806,014,000 from the fiscal year 2011 enacted level and a 
decrease of $25,000,000 below the budget request.
    The Committee recommendation includes a rescission from 
prior year appropriations Acts of $25,000,000.

                    Military Construction, Air Force


                        (INCLUDING RESCISSIONS)




Fiscal year 2011 enacted level........................      $985,295,000
Fiscal year 2012 budget request.......................     1,364,858,000
Committee recommendation in the bill..................     1,247,358,000
Comparison with:
    Fiscal year 2011 enacted level....................       262,063,000
    Fiscal year 2012 budget request...................     (117,500,000)


    The Committee recommends an appropriation of $1,247,358,000 
for Military Construction, Air Force, an increase of 
$262,063,000 above the fiscal year 2011 enacted level and a 
decrease of $117,500,000 below the budget request.
    The Committee recommendation includes a reduction that 
totals $85,500,000 from two projects: Strike Fuel Maintenance 
Facility at Andersen AFB, Guam and F-35 AGE Facility at Nellis 
AFB, Nevada incremented due to lateness of the appropriations 
FY 2011 process. The reduction also includes a rescission from 
prior year appropriations Acts of $32,000,000.

                  Military Construction, Defense-Wide


             (INCLUDING TRANSFER OF FUNDS AND RESCISSIONS)




Fiscal year 2011 enacted level........................    $2,724,562,000
Fiscal year 2012 budget request.......................     3,848,757,000
Committee recommendation in the bill..................     3,533,757,000
Comparison with:
    Fiscal year 2011 enacted level....................       809,195,000
    Fiscal year 2012 budget request...................     (315,000,000)


    The Committee recommends an appropriation of $3,533,757,000 
for Military Construction, Defense-Wide, an increase of 
$809,195,000 above the fiscal year 2011 enacted level and a 
decrease of $315,000,000 below the budget request.
    The Committee recommendation includes a reduction that 
totals $183,600,000 from three projects: Ft. Bliss Hospital 
Phase IIIA, Texas; Ambulatory Care Center Phase I at Andrews 
AFB, Maryland and Mountainview Operations Facility at Buckley 
AFB, Colorado incremented due to lateness of the appropriations 
FY 2011 process. The reduction also includes a rescission from 
prior year appropriations Acts of $131,400,000 for unobligated 
balances in planning and design, contingency construction and 
bid savings.
    Transfer of Funds.--The accompanying bill provides transfer 
authority to the Secretary of Defense to allow the transfer of 
funds to such appropriations of the Department of Defense 
available for military construction or family housing as the 
Secretary may designate.
    Department of Defense (DOD) schools recapitalization.--The 
Committee commends the Department of Defense for its commitment 
to funding the recapitalization of more than half of its 
dependent schools by fiscal year 2015. The Committee expects 
that this funding will contribute greatly to the quality of 
life of military families. A comprehensive assessment of DOD 
dependent schools and construction requirements directed by the 
Committee in House Report 110-775 indicated that 149 of 189 
schools had facilities with an overall condition rating of 
either Q3 (poor) or Q4 (failing) and required significant 
recapitalization efforts to eliminate space shortfalls and 
temporary facilities. The Committee recommends $483,302,000, 
the same as the budget request, for school construction 
activities and strongly encourages the Department to sustain 
and, if possible within the constraints of funding and 
executability, to accelerate this important initiative.

               Military Construction, Army National Guard





Fiscal year 2011 enacted level........................      $873,664,000
Fiscal year 2012 budget request.......................       773,592,000
Committee recommendation in the bill..................       773,592,000
Comparison with:
    Fiscal year 2011 enacted level....................     (100,072,000)
    Fiscal year 2012 budget request...................             - - -


    The Committee recommends an appropriation of $773,592,000 
for Military Construction, Army National Guard, a decrease of 
$100,072,000 from the fiscal year 2011 enacted level and the 
same as the budget request.
    Energy Security.--The Committee strongly encourages the 
Army National Guard to increase the energy security and 
environmental sustainability of its operations to reduce costs 
and protect mission continuity. The Committee encourages the 
Army National Guard to establish at least one pilot facility 
for the purpose of demonstrating the integration of advanced 
energy security and environmental protection systems, including 
geothermal, solar, district heating and cooling and water 
recycling.
    Enforcement of Border Security.--Recognizing the need to 
bolster resources for the enforcement of border security, the 
Committee encourages the Army National Guard and the Air 
National Guard to consider, design, and construct facilities 
adjacent to our southwestern border that will support National 
Guard activities and house and support defense assets used by 
Customs and Border Protection and other law enforcement 
agencies for the terrestrial, maritime, and aerial surveillance 
of those borders, to include aircraft hangars suitable for 
unmanned aerial systems.

               Military Construction, Air National Guard





Fiscal year 2011 enacted level........................      $194,986,000
Fiscal year 2012 budget request.......................       116,246,000
Committee recommendation in the bill..................       116,246,000
Comparison with:
    Fiscal year 2011 enacted level....................      (78,740,000)
    Fiscal year 2012 budget request...................             - - -


    The Committee recommends an appropriation of $116,246,000 
for Military Construction, Air National Guard, a decrease of 
$78,740,000 below the fiscal year 2011 enacted level and the 
same as the budget request.

                  Military Construction, Army Reserve





Fiscal year 2011 enacted level........................      $318,175,000
Fiscal year 2012 budget request.......................       280,549,000
Committee recommendation in the bill..................       280,549,000
Comparison with:
    Fiscal year 2011 enacted level....................      (37,626,000)
    Fiscal year 2012 budget request...................             - - -


    The Committee recommends an appropriation of $280,549,000 
for Military Construction, Army Reserve, a decrease of 
$37,626,000 below the fiscal year 2011 enacted level and the 
same as the budget request.

                  Military Construction, Navy Reserve





Fiscal year 2011 enacted level........................       $61,557,000
Fiscal year 2012 budget request.......................        26,299,000
Committee recommendation in the bill..................        26,299,000
Comparison with:
    Fiscal year 2011 enacted level....................      (35,258,000)
    Fiscal year 2012 budget request...................             - - -


    The Committee recommends an appropriation of $26,299,000 
for Military Construction, Navy Reserve, a decrease of 
$35,258,000 below the fiscal year 2011 enacted level and the 
same as the budget request.

                Military Construction, Air Force Reserve





Fiscal year 2011 enacted level........................        $7,832,000
Fiscal year 2012 budget request.......................        33,620,000
Committee recommendation in the bill..................        33,620,000
Comparison with:
    Fiscal year 2011 enacted level....................        25,788,000
    Fiscal year 2012 budget request...................             - - -


    The Committee recommends an appropriation of $33,620,000 
for Military Construction, Air Force Reserve, an increase of 
$25,788,000 above the fiscal year 2011 enacted level and the 
same as the budget request.

     North Atlantic Treaty Organization Security Investment Program





Fiscal year 2011 enacted level........................      $258,884,000
Fiscal year 2012 budget request.......................       272,611,000
Committee recommendation in the bill..................       272,611,000
Comparison with:
    Fiscal year 2011 enacted level....................        13,727,000
    Fiscal year 2012 budget request...................             - - -


    The North Atlantic Treaty Organization Security Investment 
Program (NSIP) consists of annual contributions by NATO member 
countries. The program finances the costs of construction 
needed to support the roles of the major NATO commands. The 
investments cover facilities such as airfields, fuel pipelines 
and storage, harbors, communications and information systems, 
radar and navigational aids, and military headquarters, both 
within NATO nations and for ``out of area'' operations such as 
Afghanistan.
    The Committee recommends an appropriation of $272,611,000 
for NSIP, an increase of $13,727,000 above the fiscal year 2011 
enacted level and the same as the budget request.
    The U.S. occasionally has been forced to temporarily delay 
the authorization of projects due to shortfalls in U.S. 
obligation authority. The Committee directs the Secretary of 
Defense to notify the Committee within 14 days of the U.S. 
taking action to temporarily delay the authorization of 
projects, or to temporarily withhold funds from previously 
authorized projects, due to shortfalls in U.S. obligation 
authority.

                        Family Housing Overview





Fiscal year 2011 enacted level........................    $1,823,191,000
Fiscal year 2012 budget request.......................     1,694,346,000
Committee recommendation in the bill..................     1,694,346,000
Comparison with:
    Fiscal year 2011 enacted level....................     (128,845,000)
    Fiscal year 2012 budget request...................             - - -


    Family housing construction accounts provide funds for new 
construction, construction improvements, the Federal government 
costs for family housing privatization projects, and planning 
and design. The operation and maintenance accounts provide 
funds to pay for maintenance and repair, furnishings, 
management, services, utilities, leasing, interest, mortgage 
insurance, and miscellaneous expenses.
    The Committee recommends a total appropriation of 
$1,694,346,000 for the family housing construction, family 
housing operation and maintenance, and homeowners assistance 
accounts, a decrease of $128,845,000 below the fiscal year 2011 
enacted level and the same as the budget request. The decrease 
below the 2011 enacted level is due partly to the Department of 
Defense's success in implementing the Military Housing 
Privatization Initiative, which has generated approximately 
$27,000,000,000 in family housing development on military 
installations and reduced the requirement for appropriated 
construction and operating costs. The Committee encourages the 
Department, where feasible, to utilize energy efficient, 
environmentally friendly, and easily deployable composite 
building materials in new family housing construction.
    Family housing privatization progress reports.--The 
Committee directs the Department of Defense to continue 
submitting semi-annual progress reports on the family housing 
privatization program, including a breakout of military tenant 
satisfaction rates by project.
    Foreign currency savings and sub-account transfers.--The 
Committee directs that savings in family housing operation and 
maintenance accounts from foreign currency re-estimates be used 
to maintain and repair existing family housing units. The 
Comptroller is directed to report to the Committees on 
Appropriations of both Houses of Congress on how these savings 
are allocated by December 1, 2011. In addition, the Committee 
directs the Services and Defense agencies to notify the 
Committees on Appropriations of both Houses of Congress within 
30 days of a transfer of funds between subaccounts within the 
family housing construction and family housing operation and 
maintenance accounts, if such transfer is in excess of 10 
percent of the funds appropriated to the sub-account to which 
the funds are being transferred. Notifications to the 
Committees shall indicate the sub-accounts and amounts that are 
being used to source the transfer.
    Leasing reporting requirements.--The Secretary of Defense 
is directed to report to the Committees on Appropriations of 
both Houses of Congress quarterly on the details of all new or 
renewed domestic leases entered into during the previous 
quarter that exceed the cost threshold set by 10 U.S.C. 
2828(b)(2), including certification that less expensive housing 
was not available for lease. For foreign leases, the Department 
is directed to: (1) perform an economic analysis on all new 
leases or lease/contract agreements where more than 25 units 
are involved; (2) report the details of new or renewed lease 
agreements that exceed the cost threshold set by 10 U.S.C. 
2828(e)(1) 21 days prior to entering into such an agreement; 
and (3) base leasing decisions on the economic analysis.

                   Family Housing Construction, Army





Fiscal year 2011 enacted level........................       $92,369,000
Fiscal year 2012 budget request.......................       186,897,000
Committee recommendation in the bill..................       186,897,000
Comparison with:
    Fiscal year 2011 enacted level....................        94,528,000
    Fiscal year 2012 budget request...................             - - -


    The Committee recommends an appropriation of $186,897,000 
for Family Housing Construction, Army, an increase of 
$94,528,000 above the fiscal year 2011 enacted level and the 
same as the budget request.

             Family Housing Operation and Maintenance, Army





Fiscal year 2011 enacted level........................      $518,140,000
Fiscal year 2012 budget request.......................       494,858,000
Committee recommendation in the bill..................       494,858,000
Comparison with:
    Fiscal year 2011 enacted level....................      (23,282,000)
    Fiscal year 2012 budget request...................             - - -


    The Committee recommends an appropriation of $494,858,000 
for Family Housing Operation and Maintenance, Army, a decrease 
of $23,282,000 below the fiscal year 2011 enacted level and the 
same as the budget request.

           Family Housing Construction, Navy and Marine Corps





Fiscal year 2011 enacted level........................      $186,444,000
Fiscal year 2012 budget request.......................       100,972,000
Committee recommendation in the bill..................       100,972,000
Comparison with:
    Fiscal year 2011 enacted level....................      (85,472,000)
    Fiscal year 2012 budget request...................             - - -


    The Committee recommends an appropriation of $100,972,000 
for Family Housing Construction, Navy and Marine Corps, a 
decrease of $85,472,000 below the fiscal year 2011 enacted 
level and the same as the budget request.

    Family Housing Operation and Maintenance, Navy and Marine Corps





Fiscal year 2011 enacted level........................      $366,346,000
Fiscal year 2012 budget request.......................       367,863,000
Committee recommendation in the bill..................       367,863,000
Comparison with:
    Fiscal year 2011 enacted level....................         1,517,000
    Fiscal year 2012 budget request...................             - - -


    The Committee recommends an appropriation of $367,863,000 
for Family Housing Operation and Maintenance, Navy and Marine 
Corps, an increase of $1,517,000 above the fiscal year 2011 
enacted level and the same as the budget request.

                 Family Housing Construction, Air Force





Fiscal year 2011 enacted level........................       $78,025,000
Fiscal year 2012 budget request.......................        84,804,000
Committee recommendation in the bill..................        84,804,000
Comparison with:
    Fiscal year 2011 enacted level....................         6,779,000
    Fiscal year 2012 budget request...................             - - -


    The Committee recommends an appropriation of $84,804,000 
for Family Housing Construction, Air Force, an increase of 
$6,779,000 above the fiscal year 2011 enacted level and the 
same as the budget request.

          Family Housing Operation and Maintenance, Air Force





Fiscal year 2011 enacted level........................      $513,792,000
Fiscal year 2012 budget request.......................       404,761,000
Committee recommendation in the bill..................       404,761,000
Comparison with:
    Fiscal year 2011 enacted level....................     (109,031,000)
    Fiscal year 2012 budget request...................             - - -


    The Committee recommends an appropriation of $404,761,000 
for Family Housing Operation and Maintenance, Air Force, a 
decrease of $109,031,000 from the fiscal year 2011 enacted 
level and the same as the budget request.

         Family Housing Operation and Maintenance, Defense-Wide





Fiscal year 2011 enacted level........................       $50,464,000
Fiscal year 2012 budget request.......................        50,723,000
Committee recommendation in the bill..................        50,723,000
Comparison with:
    Fiscal year 2011 enacted level....................           259,000
    Fiscal year 2012 budget request...................             - - -


    The Committee recommends an appropriation of $50,723,000 
for Family Housing Operation and Maintenance, Defense-Wide, an 
increase of $259,000 above the fiscal year 2011 enacted level 
and the same as the budget request.

         Department of Defense Family Housing Improvement Fund





Fiscal year 2011 enacted level........................        $1,096,000
Fiscal year 2012 budget request.......................         2,184,000
Committee recommendation in the bill..................         2,184,000
Comparison with:
    Fiscal year 2011 enacted level....................         1,088,000
    Fiscal year 2012 budget request...................             - - -


    The Family Housing Improvement Fund (FHIF) is authorized by 
section 2883, title 10, United States Code, and provides the 
Department of Defense with authority to finance joint ventures 
with the private sector to revitalize and to manage the 
Department's housing inventory. The statute authorizes the 
Department to use limited partnerships, make direct and 
guaranteed loans, and convey Department-owned property to 
stimulate the private sector to increase the availability of 
affordable, quality housing for military personnel.
    The FHIF is used to build or renovate family housing by 
using various legal authorities, and by utilizing private 
capital and expertise to the maximum extent possible. The fund 
is administered as a single account without fiscal year 
limitations and contains directly appropriated and transferred 
funds from family housing construction accounts.
    The Committee recommends an appropriation of $2,184,000 for 
the Department of Defense Family Housing Improvement Fund, an 
increase of $1,088,000 above the fiscal year 2011 enacted level 
and the same as the budget request.

            Department of Defense Homeowners Assistance Fund





Fiscal year 2011 enacted level........................       $16,515,000
Fiscal year 2012 budget request.......................         1,284,000
Committee recommendation in the bill..................         1,284,000
Comparison with:
    Fiscal year 2011 enacted level....................      (15,231,000)
    Fiscal year 2012 budget request...................             - - -


    The Homeowners Assistance Fund account finances the 
Homeowners Assistance Program (HAP), which provides assistance 
to individual military and Federal civilian homeowners who 
sustain losses on the sales of their primary residences due to 
declining real estate markets attributable to the closure or 
realignment of military installations, as well as the temporary 
expansion of the program to include military homeowners 
adversely affected by the housing crisis and the permanent 
extension of benefits to wounded warriors and surviving 
spouses. This non-expiring revolving fund receives funding from 
several sources, including appropriations, borrowing authority, 
reimbursable authority, prior fiscal year unobligated balances, 
appropriation transfers, revenue from sale of acquired 
properties, and recovery of prior year obligations.
    The Committee recommends an appropriation of $1,284,000 for 
the Department of Defense Homeowners Assistance Fund, a 
decrease of $15,231,000 below the fiscal year 2011 enacted 
level and the same as the budget request.

          Chemical Demilitarization Construction, Defense-Wide





Fiscal year 2011 enacted level........................      $124,971,000
Fiscal year 2012 budget request.......................        75,312,000
Committee recommendation in the bill..................        75,312,000
Comparison with:
    Fiscal year 2011 enacted level....................      (49,659,000)
    Fiscal year 2012 budget request...................             - - -


    The Chemical Demilitarization Construction, Defense-Wide 
account provides funds for the design and construction of full-
scale chemical disposal facilities and associated projects to 
upgrade installation support facilities and infrastructures 
required to support the Chemical Demilitarization program.
    The Committee recommends an appropriation of $75,312,000 
for Chemical Demilitarization Construction, Defense-Wide, a 
decrease of $49,659,000 below the fiscal year 2011 enacted 
level and the same as the budget request.

               Base Realignment and Closure Account 1990





Fiscal year 2011 enacted level........................      $360,474,000
Fiscal year 2012 budget request.......................       323,543,000
Committee recommendation in the bill..................       373,543,000
Comparison with:
    Fiscal year 2011 enacted level....................        13,069,000
    Fiscal year 2012 budget request...................        50,000,000


    The Committee recommends an appropriation of $373,543,000 
for the Base Realignment and Closure Account 1990, an increase 
of $13,069,000 above the fiscal year 2011 enacted level and 
$50,000,000 above the fiscal year 2012 budget request.
    BRAC 1990.--According to the GAO (GAO-10-457T) there are 
1492 BRAC sites awaiting clean up--sites that have not reached 
response complete status. There are another 440 BRAC sites that 
require long-term management to effectively remediate 
contamination. The estimated cost of clean up at these sites is 
in excess of $3 billion. It is critical that hazards present on 
these ranges be identified and removed yet the pace of clean up 
remains painfully slow, with some bases predicted not to be 
fully cleaned for upwards of 300 years or more. The Committee 
is concerned that, despite regular funding for clean up 
activities in the 1990 BRAC Account, DOD consistently 
underspends appropriated money in this account. The Committee 
directs the Department of Defense to report back to the 
Committees on Appropriations of both Houses of Congress within 
90 days of enactment of this Act its plan to expedite and 
expand clean up activities of BRAC legacy bases and how it will 
fully utilize the funds appropriated to it annually for that 
purpose.

               Base Realignment and Closure Account 2005





Fiscal year 2011 enacted level........................    $2,354,285,000
Fiscal year 2012 budget request.......................       258,776,000
Committee recommendation in the bill..................       208,776,000
Comparison with:
    Fiscal year 2011 enacted level....................   (2,145,509,000)
    Fiscal year 2012 budget request...................      (50,000,000)


    The Committee recommends an appropriation of $208,776,000 
for the Base Realignment and Closure Account 2005, a decrease 
of $2,145,509,000 below the fiscal year 2011 enacted level and 
$50,000,000 below the fiscal year 2012 budget request. This 
funding supports the most recent base realignment and closure 
round which affects over 800 installations and locations 
through 24 major closures, 24 major realignments, and 765 other 
actions.
    Base Realignment and Closure 2005.--The Committee is 
disappointed that the Department of the Army has refused to 
implement the recommendations offered by the Inspector General 
in its report entitled, ``Assessment of BRAC 133 Final 
Environmental Assessment of July 2008 and Transportation 
Management Plan of July 2010.'' The Inspector General's 
findings that the proposed traffic mitigation measures in the 
BRAC 133 Environmental Assessment may not be sufficient to 
support the finding of no significant impact are troubling. 
Further, the IG's conclusion that the Army's goal of reducing 
single occupancy vehicle trips to the Mark Center site by 40 
percent may not be achievable and may impose further adverse 
impacts on the roadway network are distressing. The Committee 
therefore directs the Army to perform a traffic impact analysis 
and to document its findings in a supplemental environmental 
assessment within 90 days of enactment of this Act.
    Transportation Infrastructure Improvements.--The Committee 
directs the Secretary of Defense to determine the magnitude of 
impacts, with particular emphasis on mission accomplishment, as 
a result of ongoing and future Base Realignment and Closure 
actions on transportation infrastructure at and in the vicinity 
of each affected military installation and consider expanded 
use of and additional funding sources for the Defense Access 
Roads program to mitigate such impacts through multi-modal 
transportation improvements and report to the Committee on the 
findings by January 30, 2012.

                       Administrative Provisions

    The bill includes section 101 prohibiting the use of funds 
for payments under a cost-plus-a-fixed-fee contract for 
construction where cost estimates exceed $25,000. An exception 
for Alaska is provided.
    The bill includes section 102 permitting the use of 
construction funds for the hire of passenger motor vehicles.
    The bill includes section 103 permitting funds to be 
expended on the construction of defense access roads under 
certain circumstances.
    The bill includes section 104 prohibiting construction of 
new bases in the United States without a specific 
appropriation.
    The bill includes section 105 limiting the use of funds for 
the purchase of land or land easements that exceed 100 percent 
of value except under certain conditions.
    The bill includes section 106 prohibiting the use of funds 
to acquire land, prepare sites, or install utilities for family 
housing except housing for which funds have been appropriated.
    The bill includes section 107 limiting the use of minor 
construction funds to relocate any activity from one 
installation to another without prior notification.
    The bill includes section 108 prohibiting the procurement 
of steel unless American producers, fabricators, and 
manufacturers have been allowed to compete.
    The bill includes section 109 prohibiting the use of funds 
to pay real property taxes in foreign nations.
    The bill includes section 110 prohibiting the use of funds 
to initiate a new installation overseas without prior 
notification.
    The bill includes section 111 establishing a preference for 
United States architectural and engineering services where the 
services are in Japan, NATO member countries, or countries 
bordering the Arabian Sea within the Central Command area of 
responsibility.
    The bill includes section 112 establishing a preference for 
United States contractors for military construction in the 
United States territories and possessions in the Pacific and on 
Kwajalein Atoll, or countries bordering the Arabian Sea within 
the Central Command area of responsibility, except bids by 
Marshallese contractors for military construction on Kwajalein 
Atoll.
    The bill includes section 113 requiring the Secretary of 
Defense to give prior notice to Congress of military exercises 
where construction costs exceed $100,000.
    The bill includes section 114 limiting obligations of funds 
made available for one fiscal year to no more than 20 percent 
during the last two months of the fiscal year.
    The bill includes section 115 allowing funds appropriated 
in prior years to be used for new projects authorized during 
the current session of Congress.
    The bill includes section 116 allowing the use of expired 
or lapsed funds to pay the cost of supervision for any project 
being completed with lapsed funds.
    The bill includes section 117 providing that funds for 
military construction projects are available until the end of 
the fourth fiscal year following the fiscal year in which funds 
are appropriated, subject to certain conditions.

                     (INCLUDING TRANSFER OF FUNDS)

    The bill includes section 118 allowing for the transfer of 
proceeds from ``Base Realignment and Closure Account, Part I'' 
to the continuing Base Realignment and Closure accounts.

                     (INCLUDING TRANSFER OF FUNDS)

    The bill includes section 119 allowing for the transfer of 
funds from Family Housing Construction accounts to the 
Department of Defense Family Housing Improvement Fund and funds 
from Military Construction accounts to the Department of 
Defense Military Unaccompanied Housing Improvement Fund.

                     (INCLUDING TRANSFER OF FUNDS)

    The bill includes section 120 providing transfer authority 
to the Homeowners Assistance Program.
    The bill includes section 121 requiring that funds in this 
title be the sole source of all operation and maintenance for 
flag and general officer quarter houses, and limits the repair 
on these quarters to $35,000 per year without notification.
    The bill includes section 122 making funds in the Ford 
Island Improvement Fund available until expended.
    The bill includes section 123 prohibiting the use of funds 
for military construction, family housing, or land acquisition 
projects at installations closed or realigned under BRAC, 
except under certain conditions.

                     (INCLUDING TRANSFER OF FUNDS)

    The bill includes section 124 allowing the transfer of 
expired funds to the ``Foreign Currency Fluctuations, 
Construction, Defense'' account.
    The bill includes section 125 allowing for the 
reprogramming of construction funds among projects and 
activities subject to certain guidelines.

                             (RESCISSIONS)

    The bill includes section 126 rescinding funds from prior 
appropriations Acts.
    The bill includes section 127 limiting the number of 
parking spaces that may be occupied at the BRAC office complex 
in Alexandria, Virginia, until certain conditions are met.
    The bill includes section 128 prohibiting the use of funds 
for any action related to the expansion of Pinon Canyon 
Maneuver Site, Colorado.
    The bill includes section 129 prohibiting the use of funds 
to relocate a unit of the Army that would impact more than 200 
personnel.

                                TITLE II


                     DEPARTMENT OF VETERANS AFFAIRS





Fiscal year 2011 enacted level1 2.................      $121,873,076,000
Fiscal year 2012 budget request\1\................       130,202,604,000
Committee recommendation in the bill\1\...........       129,726,000,000
Comparison with:
    Fiscal year 2011 enacted level................         7,853,791,000
    Fiscal year 2012 budget request...............         (475,737,000)
Fiscal year 2013 advance budget request\1\........        52,541,000,000
Fiscal year 2013 Committee recommendation in the         52,541,000,000
 bill\1\..........................................

\1\All funding cited excludes amounts in the Medical Care Collections
  Fund.
\2\Does not include the effect of the government-wide 0.22 percent
  across the board cut.

    The Department of Veterans Affairs (VA) serves nearly 58 
million people: 22,700,000 veterans and 35,100,000 family 
members of living veterans or survivors of deceased veterans. 
This group constitutes more than 18 percent of the United 
States population. To serve adequately the nation's veterans, 
the VA employs 285,000 people, making it one of the largest 
Federal agencies in terms of employment.
    The Committee recommends a total of $129,726,000,000 in 
budget authority for programs in fiscal year 2012, an increase 
of $7,853,791,000 or 6.4 percent above the fiscal year 2011 
enacted level and $475,737,000 below the budget request. In 
addition, advance appropriations of $52,541,000,000 are 
provided for fiscal year 2013.

                    Veterans Benefits Administration


                       COMPENSATION AND PENSIONS

                     (INCLUDING TRANSFER OF FUNDS)




Fiscal year 2011 enacted level....................       $53,978,000,000
Fiscal year 2012 budget request...................        58,067,319,000
Committee recommendation in the bill..............        58,067,319,000
Comparison with:
    Fiscal year 2011 enacted level................         4,089,319,000
    Fiscal year 2012 budget request...............                 - - -


    This appropriation provides funds for service-connected 
compensation payments to an estimated 4,000,000 veterans, 
survivors, and dependents. In addition, pension payments are 
funded for 507,000 veterans and their survivors. The average 
cost per compensation case for veterans in 2012 is estimated at 
$13,226, and pension payments are projected at a unit cost of 
$9,739.
    The Committee recommends an appropriation of 
$58,067,319,000 for compensation, pension, and burial benefits, 
an increase of $4,089,319,000 above the fiscal year 2011 
enacted level and the same as the budget request.
    The appropriation includes authority to transfer funding 
not to exceed $32,187,000, of which $10,766,000 is for the 
General Operating Expenses, Veterans Benefit Administration 
account, $20,843,000 is for the Medical Support and Compliance 
account, and $578,000 is for the Information Technology Systems 
account. These funds are for the administrative expenses of 
implementing cost-saving provisions required by the Omnibus 
Budget Reconciliation Act of 1990, Public Law 101-508, the 
Veterans' Benefits Act of 1992, Public Law 102-568, and the 
Veterans' Benefits Improvements Act of 1994, Public Law 103-
446. These cost-saving provisions include verifying pension 
income against Internal Revenue Service (IRS) and Social 
Security Administration (SSA) data; establishing a match with 
the SSA to obtain verification of Social Security numbers; and 
applying the VA pension cap for Medicaid-eligible single 
veterans and surviving spouses alone in Medicaid-covered 
nursing homes. The bill also continues to include language 
permitting this appropriation to reimburse such sums as may be 
earned to the Medical Care Collections Fund to help defray the 
operating expenses of individual medical facilities for nursing 
home care provided to pensioners.

                         READJUSTMENT BENEFITS




Fiscal year 2011 enacted level....................       $10,396,245,000
Fiscal year 2012 budget request...................        11,011,086,000
Committee recommendation in the bill..............        11,011,086,000
Comparison with:
    Fiscal year 2011 enacted level................           614,841,000
    Fiscal year 2012 budget request...............                 - - -


    This appropriation finances the education and training of 
veterans and servicemembers through the Post 9-11 GI Bill and 
the All-Volunteer Force Educational Assistance Program. 
Supplemental education benefits are also provided to certain 
veteran members of the Selected Reserve and are funded through 
transfers from the Department of Defense. In addition, certain 
disabled veterans are provided with vocational rehabilitation, 
specially adapted housing grants, and grants for automobiles 
with approved adaptive equipment. This account also finances 
educational assistance allowances for eligible dependents of 
veterans who died from service-connected causes or have a total 
and permanent service-connected disability, as well as 
dependents of servicemembers who were captured or are missing 
in action. Almost 75 percent of the funds in the account 
support the Post 9-11 GI Bill.
    The Committee recommends an appropriation of 
$11,011,086,000 for Readjustment Benefits, an increase of 
$614,841,000 above the fiscal year 2011 enacted level and the 
same as the budget request.

                   VETERANS INSURANCE AND INDEMNITIES




Fiscal year 2011 enacted level........................       $77,589,000
Fiscal year 2012 budget request.......................       100,252,000
Committee recommendation in the bill..................       100,252,000
Comparison with:
    Fiscal year 2011 enacted level....................        22,663,000
    Fiscal year 2012 budget request...................             - - -


    The Veterans Insurance and Indemnities appropriation is 
made up of the former appropriations for military and naval 
insurance, applicable to World War I veterans; national service 
life insurance (NSLI), applicable to certain World War II 
veterans; servicemen's indemnities, applicable to Korean 
conflict veterans; and the veterans mortgage life insurance, 
applicable to individuals who have received a grant for 
specially adapted housing.
    The Committee recommends an appropriation of $100,252,000 
for Veterans Insurance and Indemnities, an increase of 
$22,663,000 above the fiscal year 2011 enacted level and the 
same as the budget request. The amount provided will enable the 
Department to transfer funding to the service-disabled veterans 
insurance fund and transfer additional amounts for payments for 
policies under the veterans mortgage life insurance program. 
These policies are identified under the Veterans Insurance and 
Indemnity appropriation since they provide insurance to 
service-disabled veterans unable to qualify under basic NSLI.

         VETERANS HOUSING BENEFIT PROGRAM FUND PROGRAM ACCOUNT

----------------------------------------------------------------------------------------------------------------
                                                                              Limitation on
                                                                             direct loans for    Administrative
                                                          Program account   specially adapted       expenses
                                                                              housing loans
----------------------------------------------------------------------------------------------------------------
Fiscal year 2011 enacted level.........................        $19,078,000           $500,000       $165,082,000
Fiscal year 2012 budget request........................        318,612,000            500,000        154,698,000
Committee recommendation in the bill...................        318,612,000            500,000        154,698,000
Comparison with:
    Fiscal year 2011 enacted level.....................        299,534,000              - - -       (10,384,000)
    Fiscal year 2012 budget request....................              - - -              - - -              - - -
----------------------------------------------------------------------------------------------------------------

    The purpose of the home loan guaranty program is to 
facilitate the extension of mortgage credit on favorable terms 
by private lenders to eligible veterans. This appropriation 
provides for all costs, with the exception of the Native 
American veterans housing loan program, of the Department's 
direct and guaranteed loans programs. The Federal Credit Reform 
Act of 1990 requires budgetary resources to be available prior 
to incurring a direct loan obligation or a loan guaranty 
commitment. In addition, the bill requires all administrative 
expenses of a direct or guaranteed loan program to be funded 
through a program account. Loan guaranties are made to 
servicemembers, veterans, reservists, and single surviving 
spouses for the purchase of homes, condominiums, and 
manufactured homes and for refinancing loans. The Department 
guarantees part of the total loan, permitting the purchaser to 
obtain a mortgage with a competitive interest rate, even 
without a down payment if the lender agrees. The Department 
requires that a down payment be made for a manufactured home. 
With a Department guaranty, the lender is protected against 
loss, up to the amount of the guaranty, if the borrower fails 
to repay the loan.
    The Committee recommends such sums as may be necessary 
(currently estimated to total $318,612,000) for funding subsidy 
payments, $500,000 for the limitation on direct loans for 
specially adapted housing loans, and $154,698,000 for 
administrative expenses.

            VOCATIONAL REHABILITATION LOANS PROGRAM ACCOUNT

                     (INCLUDING TRANSFER OF FUNDS)

----------------------------------------------------------------------------------------------------------------
                                                                              Limitation on      Administrative
                                                          Program account      direct loans         expenses
----------------------------------------------------------------------------------------------------------------
Fiscal year 2011 enacted level.........................            $29,000         $2,298,000           $328,000
Fiscal year 2012 budget request........................             19,000          3,019,000            343,000
Committee recommendation in the bill...................             19,000          3,019,000            343,000
Comparison with:
    Fiscal year 2011 enacted level.....................           (10,000)            721,000             15,000
    Fiscal year 2012 budget request....................              - - -              - - -              - - -
----------------------------------------------------------------------------------------------------------------

    This appropriation covers the subsidy cost of direct loans 
for vocational rehabilitation of eligible veterans and includes 
administrative expenses necessary to carry out the direct loan 
program. Loans of up to $1,108 (based on indexed chapter 31 
subsistence allowance rate) are available to service-connected 
disabled veterans enrolled in vocational rehabilitation 
programs when the veteran is temporarily in need of additional 
assistance. Repayment is made in monthly installments, without 
interest, through deductions from future payments of 
compensation, pension, subsistence allowance, educational 
assistance allowance, or retirement pay. Most loans are repaid 
in full in less than one year. The Federal Credit Reform Act of 
1990 requires budgetary resources to be available prior to 
incurring a direct loan obligation.
    The Committee recommends $19,000 for funding subsidy 
program costs and $343,000 for administrative expenses. The 
administrative expenses may be paid to the General Operating 
Expenses, Veterans Benefit Administration account.
    In addition, the Committee includes language limiting 
direct loans to $3,019,000. It is estimated that the Department 
will make 3,215 loans in fiscal year 2012, with an average 
amount of $939.

              NATIVE AMERICAN VETERAN HOUSING LOAN PROGRAM

                     (INCLUDING TRANSFER OF FUNDS)




Administrative expenses:
Fiscal year 2011 enacted level........................          $664,000
Fiscal year 2012 budget request.......................         1,116,000
Committee recommendation in the bill..................         1,116,000
Comparison with:
    Fiscal year 2011 enacted level....................           452,000
    Fiscal year 2012 budget request...................             - - -


    The Native American Veteran Housing Loan Program, as 
authorized by title 38 United States Code, chapter 37, 
subchapter V, provides the Secretary with authority to make 
direct housing loans to Native American veterans for the 
purpose of purchasing, constructing, or improving dwellings on 
trust lands. The Committee recommends the budget request of 
$1,116,000 for administrative expenses of the Native American 
Veteran Housing Loan Program.

  GUARANTEED TRANSITIONAL HOUSING LOANS FOR HOMELESS VETERANS PROGRAM 
                                ACCOUNT

    No funds have been provided for this program, which was 
funded as a pilot in fiscal year 2000 to expand the supply of 
transitional housing for homeless veterans. This is the same as 
the budget request. No new loans will be executed and no 
additional program account funds are required to service the 
one existing loan. Up to $750,000 was made available in fiscal 
year 2011 to service the loan.

                     Veterans Health Administration

    The Department operates the largest Federal medical care 
delivery system in the country, with 152 hospitals, 101 
domiciliary residential rehabilitation treatment programs, 133 
nursing homes, 300 Vet Centers, 50 mobile Vet Centers, and 807 
outpatient clinics which include independent, satellite, 
community-based, and rural outreach clinics. Approximately 
6,184,000 patients will be treated in 2012.
    The Veterans Health Administration (VHA) is comprised of 
four accounts: Medical Services, Medical Support and 
Compliance, Medical Facilities, and Medical and Prosthetic 
Research. For these accounts, the Administration has requested 
total resources for fiscal year 2013 of $52,541,000,000 in 
direct appropriations to fund the three advance appropriations 
of the VHA, as well as $3,326,000,000 in Medical Care 
Collections Fund appropriations. This is an increase of 
$1,930,015,000 above the fiscal year 2012 enacted level of 
$50,610,985,000 and the same as the budget request. The 
Committee also provides the 2012 budget request of $508,774,000 
for medical and prosthetic research.

                            MEDICAL SERVICES




Fiscal year 2011 enacted level\1\.....................   $37,136,000,000
Fiscal year 2012 enacted level........................    39,649,985,000
Fiscal year 2012 additional request...................       240,000,000
Fiscal year 2013 advance budget request...............    41,354,000,000
Committee 2013 recommendation in the bill.............    41,354,000,000
Comparison with:
    Fiscal year 2012 enacted level....................     1,663,015,000
    Fiscal year 2013 budget request...................     (41,000,000)

\1\Does not include the effect of the government-wide 0.22 percent
  across-the-board reduction.

    This appropriation provides for medical services of 
eligible veterans and beneficiaries in Department medical 
centers, outpatient clinic facilities, contract hospitals, 
State homes, and outpatient programs on a fee basis. Hospital 
and outpatient care is also provided by the private sector for 
certain dependents and survivors of veterans under the civilian 
health and medical programs for the VA.
    The Committee provides an advance appropriation of 
$41,354,000,000 for Medical Services for fiscal year 2013, an 
increase of $1,663,015,000, or 4.2 percent, above the fiscal 
year 2012 enacted level and the same as the budget request. The 
Committee has included bill language to make available through 
September 30, 2014, $1,000,000,000 of the Medical Services 
appropriation for fiscal year 2013. $248,000,000 is included to 
implement the new programs created by the Caregivers and 
Veterans Omnibus Health Services Act of 2010. The Committee 
provides sufficient resources to fully implement VA homeless 
assistance programs, including the Homeless Providers Grant and 
Per Diem, the Domiciliary Care for Homeless Veterans, and the 
Department of Housing and Urban Development--Department of 
Veterans Affairs Supported Housing programs.
    The FY 2012 budget includes a request for an additional 
$240,000,000 for Medical Services in fiscal year 2012, derived 
from a rescission of $713,000,000 from the Medicare care 
accounts due to the cancellation of the 2011 and 2012 pay 
raises and a ``contingency fund'' of $953,000,000, to be made 
available by the administration if economic conditions warrant 
additional funding. The Committee does not provide this 
additional FY 2012 funding. As the economy begins to recover, 
it seems unlikely that economic conditions will generate unmet 
medical services needs, particularly since the account has 
weathered the worst of the recession without budget shortfalls. 
The Committee's recommendation does not include rescission of 
$664,000,000 of FY 2011 and FY 2012 funding that remains in the 
medical care accounts from the cancelled pay raises. Rather, 
the Committee permits the funding to remain in the account to 
cover any unanticipated medical service costs. The bill 
includes language indicating that the $664,000,000 will be 
available only in the fourth quarter of the fiscal year upon 
approval of the Appropriations Committees of a request from the 
VA to release the funding due to unanticipated needs related to 
economic conditions.
    Operational improvements.--The budget request is built on 
the assumption of substantial savings from what are called 
``operational improvements''. These savings are estimated at 
$745,200,000 in fiscal year 2011, $1,216,800,000 in fiscal year 
2012, and $1,264,000,000 in fiscal year 2013. The operational 
improvements vary from fee care payment savings to clinical 
staff and resource ``realignment'' to real property cost 
savings. The Committee is concerned that these savings 
estimates are uncertain at best and depend in part on 
regulatory changes and hiring policies that may not 
materialize. Given this uncertainty, coupled with the 
unfortunate record the VA has had in the past with budgets 
based on similar ``savings'', the Committee requests that the 
VA provide an operating plan identifying the timeframe and 
benchmarks used in generating the estimates and the metrics to 
be used to validate the savings. This report should be 
generated on a semi-annual basis, with the first report due on 
September 30, 2011.

Rural health issues

    The Committee provides the budget request of $250,000,000 
to improve access and quality of care for the 3,300,000 
veterans residing in rural and highly rural areas. The 
Committee remains concerned, however, about the management of 
the substantial funding that has been provided over the last 
several years to the Office of Rural Health (ORH) at the VA. 
The VA Office of Inspector General (OIG) issued a report in 
April 2011 indicating that the ORH did not adequately manage 
the use of fee funds and the proposal selection process. 
Additionally, ORH did not monitor project obligations and 
performance measures, and some funds lapsed. Funds were awarded 
to projects that did not meet ORH's review criteria. Perhaps 
most importantly, the OIG recommended that the ORH reassess the 
fiscal year 2012 budget to align the planned use of resources 
to the greatest rural health needs. The Committee expects to 
receive a report by July 1, 2011 describing the ORH's strategic 
plan for rural health activities for the fiscal year 2012 
advance funding already received and the fiscal year 2013 
request.
    The Committee is concerned about the health care needs of 
elderly veteran populations in rural areas. These veterans have 
difficulty obtaining access to quality health care and 
disability services, due to having to travel long distances to 
healthcare facilities and the lack of specialty providers 
working in rural areas. While the VA has made strides in 
expanding access to rural veterans, it is clear that the VA 
continues to struggle to find an adequate and effective 
strategy to reach these men and women. The Committee requests a 
detailed report by March 31, 2012, on the feasibility of 
offering mobile health services, home-based primary care, 
telemedicine, and other enhanced home-based services in these 
underserved areas.
    The Committee encourages the VA to clarify for VA clinics 
and hospitals their ability to use local private sector health 
care assets and facilities when appropriate and cost-effective. 
The increased use of private providers can reduce the cost of 
per diem and mileage expended by the VA and prevents veterans 
from traveling long distances from home to get quality health 
care.
    The Committee encourages the VA to continue to provide 
health care to veterans through community-based outpatient 
clinics (CBOCs). Due to the increasing number of veterans 
located in rural areas, this creates additional challenges in 
providing access to quality health care. Community-based 
outpatient clinics address this challenge by providing 
essential care to veterans in rural areas. The Committee 
encourages the VA to build upon existing programs and develop 
new programs within community-based outpatient clinics in order 
to provide veterans access to quality health care.
    The Committee recognizes the unique needs of the homeless 
veteran population in states with rural veteran needs. The 
Committee encourages the VA to conduct pilot programs to 
address these needs, giving priority to the states with the 
highest number of veterans per capita.
    Allocation of health funding.--The Committee is concerned 
that the process the VA uses to allocate the health services 
appropriation through the veterans integrated service networks 
(VISNs) and from them to the medical centers may shortchange 
the ultimate users because of excessive funding retained at 
headquarters or at the VISNs. The Committee requests a report 
each year no later than thirty days after VA allocates the 
medical services appropriation to the VISNs that identifies: 
(1) the amount of general purpose funding that is allocated to 
each VISN; (2) the amount of funding that is retained by 
central headquarters for specific purposes, with amounts 
identified for each purpose; and (3) the amount of funding that 
is retained by each VISN before allocating it to the medical 
centers, identifying separately the amounts retained for 
purposes such as network operations, network initiatives, and 
emergencies.
    Respiratory care program.--The Inspector General's 2007 
audit of the VA's home respiratory care program (HRCP) 
indicated a need for greater oversight and improvements to the 
quality of care. The Committee is concerned that despite the 
recommendations contained in the audit, the HRCP continues to 
suffer from a lack of appropriate oversight and from problems 
with quality of care provided by some vendors providing durable 
medical equipment and services under the program. The Committee 
understands that the Center for Medicare and Medicaid Services 
(CMS) deemed accredited organizations (DAO) for suppliers of 
durable medical equipment dictate industry best practices in 
this field. Presently, the VA does not require that suppliers 
be accredited by one of the DAO to provide equipment and 
services under the home respiratory care program. The Committee 
is concerned that the VA may lack the capacity to ensure 
compliance with applicable industry standards for the HRCP. The 
Committee believes that the VA should place greater emphasis on 
DAO accreditation and compliance with best practices among HRCP 
vendors. The Committee urges that all future contract 
solicitations for services under HRCP require that bidders must 
be accredited by a CMS-approved DAO and meet all State and 
Federal licensing requirements relevant to the services 
requested.
    Prostate cancer.--The Committee is concerned by the 
incidence rates of prostate cancer in the veteran population. 
The Committee requests that VA conduct a pilot project using 
individual patient treatment plans developed by a 
multidisciplinary care team that includes an oncologist to 
assess the appropriate management of patients recently 
diagnosed with prostate cancer.
    Broadening VA relationships with academia.--The Committee 
encourages the VA to strengthen its partnership with the 
academic community by developing local or regional strategic 
alliances and joint ventures with academic medical centers to 
promote the delivery of comprehensive, cost-effective health 
care to veterans. Medical research, health professions 
training, and clinical care are all areas in which the VA would 
benefit from a synergistic relationship with its academic 
partners. The Blue Ribbon Panel on VA-Medical School 
Affiliations developed wide-ranging recommendations to broaden 
the VA's partnership with the academic community, and the 
Committee urges the VA to move to adopt these recommendations.
    Medical scholarships.--The Committee requests that VA 
prepare a report describing the feasibility, costs, and 
implementation timeframe for establishing, in collaboration 
with a university medical school, a program to recruit and 
retain qualified physicians into the VA. The Committee proposes 
that the program offer medical students Federally-funded, full 
four-year scholarships at the medical school in exchange for 
service in the VA for a minimum of six years upon conclusion of 
their residency and fellowship training. The university medical 
school should have a residency affiliation with a proximate VA 
medical center and use a specialized curriculum designed by the 
VA for the cohort of scholarship students.
    Infectious disease transmission among veterans.--The 
Committee remains concerned by unsafe sterilization practices 
at several VA medical centers, which have raised the threat of 
transmission of hepatitis and HIV. While the VHA has published 
new guidance and directed site visits of medical facilities, 
there continue to be incidents where veterans are exposed to 
unsanitary conditions. The Committee believes that the VHA 
should work to ensure that all its medical facilities do not 
deviate from recommended sanitization procedures. The Committee 
urges the VHA to review its training and sterilization 
practices to ensure that these types of incidents are avoided.
    Infectious disease status.--The Committee believes that the 
VA should work to establish knowledge of hepatitis and HIV 
status among its constituents. The Committee encourages VA to 
continue the implementation of routine HIV testing, 
particularly at the local facility level, and continues to urge 
the VA to utilize computerized patient records as a tool in the 
implementation of the VA HIV testing directive issued in 
August, 2009.
    Colonoscopy equipment problems.--The Committee is concerned 
about the implementation of the regulations and procedures 
regarding the sterilization of colonoscopy equipment used in VA 
facilities. While the Committee applauds the VA effort to 
expeditiously inform, test and treat veterans who were exposed 
to unclean colonoscopy equipment, the Committee fears that the 
VA has not sufficiently strengthened adherence to safe and 
sanitary cleaning procedures for colonoscopies. The Committee 
requests that the VA submit a report on the performance of each 
medical center in meeting the standards set to ensure the 
cleanliness of colonoscopy equipment by March 1, 2012.
    Companion animals.--The Committee is aware that the VA is 
considering regulations to provide veterans with service 
animals for treatment of post traumatic stress disorder, either 
as companion animals or for training as therapy. The Committee 
urges the VA to permit the veterans who receive service animals 
as companions to retain the animals on a permanent basis.
    Affiliations with university-based medical centers.--The 
Committee encourages the Secretary of Veterans Affairs to 
establish innovative public-private partnerships for the 
treatment and research of post-traumatic stress disorder in 
teaching hospitals across the country.
    Minority health professions graduate schools.--The 
Committee has heard repeated testimony on the need for the VA 
to increase its affiliations with minority health professions 
graduate schools. Although progress has been made, improvement 
is required at the local level to achieve full affiliation. 
Therefore, the Committee suggests that the VA convene a 
symposium of VA health leaders and minority health professions 
graduate school leaders to pursue the next steps to strengthen 
these relationships.
    Dialysis facilities.--The Committee understands that the VA 
is planning to increase its in-house capacity for dialysis care 
by leasing offsite facilities and expanding existing medical 
center dialysis suites. The VA is currently running a pilot 
demonstration at four sites to measure how VA-provided dialysis 
compares in cost and quality of care to contract-provided 
dialysis. The Committee directs the VA not to convert dialysis 
service from contract-provided care to in-house care until 
after the completion and evaluation of the four-site pilot 
demonstration. The Committee requests a report by January 1, 
2012 describing the cost metric being used at each site of the 
pilot--whether the cost comparison of VA-provided care is to 
the Medicare rate or the current negotiated contract price or 
some other measure. The report should also include projections 
of the ten-year VA patient caseload requiring dialysis and the 
share of the population that is expected to be served by in-
house VA dialysis versus contract care.

                     MEDICAL SUPPORT AND COMPLIANCE




Fiscal year 2011 enacted level\1\.................        $5,307,000,000
Fiscal year 2012 enacted level....................         5,535,000,000
Fiscal year 2013 advance budget request...........         5,746,000,000
Committee 2013 recommendation in the bill.........         5,746,000,000
Comparison with:
    Fiscal year 2012 enacted level................           211,000,000
    Fiscal year 2013 advance budget request.......                 - - -

\1\Does not include the effect of the government-wide 0.22 percent
  across-the-board reduction.

    The Medical Support and Compliance appropriation funds the 
expenses of management and administration of the Department's 
health care system, including financial management, public 
health and environmental hazard, quality and performance 
management, medical inspection, human research oversight, 
training programs and continuing education, security, volunteer 
operations, and human resources.
    The Committee recommends an advance appropriation of 
$5,746,000,000 for Medical Support and Compliance for fiscal 
year 2013, an increase of $211,000,000 above the fiscal year 
2012 enacted level and the same as the budget request. The 
Committee has included bill language to make available through 
September 30, 2014, $100,000,000 of the Medical Support and 
Compliance appropriation for fiscal year 2013.

                           MEDICAL FACILITIES




Fiscal year 2011 enacted level\1\.....................    $5,725,000,000
Fiscal year 2012 enacted level........................     5,426,000,000
Fiscal year 2013 advance budget request...............     5,441,000,000
Committee 2013 recommendation in the bill.............     5,441,000,000
Comparison with:
    Fiscal year 2012 enacted level....................        15,000,000
    Fiscal year 2012 advance budget request...........            - - -

\1\Does not include the effect of the government-wide 0.22 percent
  across-the-board reduction.

    The Medical Facilities appropriation provides funds for the 
operation and maintenance of the Department's health care 
system's capital infrastructure. Included under this heading 
are provisions for costs associated with utilities, 
engineering, capital planning, leases, laundry, groundskeeping, 
garbage, housekeeping, facility repair, and property 
disposition and acquisition.
    The Committee recommends an advance appropriation of 
$5,441,000,000 for Medical Facilities for fiscal year 2013, an 
increase of $15,000,000 above the fiscal year 2012 enacted 
level and the same as the budget request. The Committee has 
included bill language to make available through September 30, 
2014, $100,000,000 of the advance Medical Facilities 
appropriation for fiscal year 2013.
    Medical waste treatment.--The Committee requests the VA 
review the possible cost-savings associated with utilizing on-
site equipment at medical facilities to treat infectious 
medical waste rather than contracting with outside waste 
disposal companies to remove, process and dispose of it. This 
review should include consideration of all costs associated 
with handling, transporting and disposing medical waste with 
both alternatives. The Committee expects a report of this 
review by March 1, 2012.
    Leases for community-based outpatient clinics.--The 
Committee provides the budget request for the VA's national 
lease program for new and expanded VA community-based 
outpatient clinics. These clinics ensure that veterans in 
communities throughout the country have access to VA medical 
services, particularly those who do not live in close proximity 
to regional VA hospital centers.

                    MEDICAL AND PROSTHETIC RESEARCH




Fiscal year 2011 enacted level\1\.....................      $581,000,000
Fiscal year 2012 budget request.......................       508,774,000
Committee recommendation in the bill..................       508,774,000
Comparison with:
    Fiscal year 2011 enacted level....................      (72,226,000)
    Fiscal year 2012 budget request...................             - - -

\1\Does not include the effect of the government-wide 0.22 percent
  across-the-board reduction.

    This appropriation provides for medical, rehabilitative, 
and health services research. Medical research is an important 
aspect of the Department's programs, providing complete medical 
and hospital services for veterans. The prosthetic research 
program is also essential in the development and testing of 
prosthetic, orthopedic, and sensory aids for the purpose of 
improving the care and rehabilitation of eligible disabled 
veterans, including amputees, paraplegics, and the blind. The 
health services research program provides unique opportunities 
to improve the effectiveness and efficiency of the health care 
delivery system. Budgetary resources from a number of areas 
including appropriations from the medical care accounts, 
reimbursements from the Department of Defense, grants from the 
National Institutes of Health, private proprietary sources, and 
voluntary organizations provide support for the Department's 
researchers. Estimated total research resources from all 
sources in 2012 are $1,728,000,000. The VA will support about 
2,100 research projects during fiscal year 2012.
    The Committee recommends $508,774,000 for Medical and 
Prosthetic Research, a decrease of $72,226,000 below the fiscal 
year 2011 enacted level and the same as the budget request. 
Funds are available through September 30, 2013.
    Gambling study.--The Committee requests that the VA conduct 
a study to assess the extent of problem gambling among VHA 
patients, and subsequently develop assessment and treatment 
approaches for problem gambling in VHA patients.
    Vietnam veterans longitudinal study.--The Committee 
understands that the VA has issued a contract to reinstitute 
the National Vietnam Veterans Longitudinal Study. The Committee 
urges the VA to proceed as quickly as possible with the study. 
The longer the study takes, the harder it becomes to locate 
study subjects and develop representative sample populations. 
The Committee directs the VA to submit a report by January 1, 
2012 detailing the progress made with identification of sample 
populations; development of study protocol and research 
questions; and timeframes for completion of research, data 
analysis, and publication of results. In addition, the 
Secretary is urged to conduct epidemiological studies of 
existing VA medical data to determine if there are anomalies 
and differences that become apparent based on location of 
different duty stations or periods of service. Results of these 
studies shall be made public by means of submission of articles 
to recognized peer-reviewed scientific and medical 
publications.

                     MEDICAL CARE COLLECTIONS FUND

    The Department of Veterans Affairs Medical Care Collections 
Fund (MCCF) was established by the Balanced Budget Act of 1997 
(Public Law 105-33). The Department deposits first-party and 
pharmacy co-payments, third-party insurance payments and 
enhanced-use collections, long-term care co-payments, 
Compensated Work Therapy Program collections, Compensation and 
Pension Living Expenses Program collections, and Parking 
Program fees into the MCCF. The Department uses these funds for 
medical care and services to veterans. The Congressional Budget 
Office estimate of fees that will be collected in fiscal year 
2012 is $3,326,000,000.

                    National Cemetery Administration





Fiscal year 2011 enacted level\1\.....................      $250,000,000
Fiscal year 2012 budget request.......................       250,934,000
Committee recommendation in the bill..................       250,934,000
Comparison with:
    Fiscal year 2011 enacted level....................           934,000
    Fiscal year 2012 budget request...................             - - -

\1\Does not include the effect of the government-wide 0.22 percent
  across-the-board reduction.

    The National Cemetery Administration (NCA) was established 
in accordance with Public Law 93-43, the National Cemeteries 
Act of 1973. It has a fourfold mission: to provide for the 
interment of, in any national cemetery with available grave 
space, the remains of eligible deceased servicemembers and 
discharged veterans, together with their spouses and certain 
dependents, and to permanently maintain their graves; to 
provide headstones for, and to mark graves of eligible persons 
in national, State and tribal, and private cemeteries; to 
administer the grant program for aid to States and tribal 
governments in establishing, expanding, or improving State and 
tribal government veterans' cemeteries; and to administer the 
Presidential Memorial Certificate Program. This appropriation 
will provide for the operation and maintenance of 131 
operational national cemeteries and 33 other cemeterial 
installations.
    The Committee recommends an appropriation of $250,934,000 
for the National Cemetery Administration, an increase of 
$934,000 above the fiscal year 2011 enacted level and the same 
as the budget request. The bill includes language making 
$25,100,000 available until September 30, 2013.
    Rural access.--The Committee is concerned that the NCA is 
not adequately serving the nation's veterans in rural areas. 
According to the fiscal year 2012 budget submission, the NCA 
anticipates that 10 percent of all veterans will not have 
access to a burial option in a national, State or tribal 
government veteran's cemetery within 75 miles of their home. 
The Committee understands the majority of this unserved 
veterans population lives in rural areas. The Committee finds 
this unacceptable and directs the NCA to develop a strategy to 
serve rural veterans, to be submitted not later than 90 days 
after enactment of this Act. The Committee recommendation 
includes bill language restricting the availability of any 
funding for the NCA Urban Initiative until this rural strategy 
is developed and implemented.
    Plot allowances.--While acknowledging the increase provided 
in 2010, the Committee remains concerned about the eroding 
value of the plot allowance and burial benefits provided to our 
nation's veterans by the VA. Because the benefits are not 
indexed to inflation, their value diminishes each year. As a 
result, families and State veterans' cemeteries have been left 
to cover the increasing costs. The Committee urges the 
Department to assess the viability of increasing the plot 
allowance and burial benefits to cover the same percentage of 
veterans' burial costs that they covered in 1973, when they 
were initiated.

                      Departmental Administration


                       GENERAL OPERATING EXPENSES




Fiscal year 2011 enacted level\1\.....................    $2,534,276,000
Fiscal year 2012 budget request.......................     2,466,989,000
Committee recommendation in the bill\2\...............             - - -
Comparison with:
    Fiscal year 2011 enacted level....................   (2,534,276,000)
    Fiscal year 2012 budget request...................  (2,466,989,000)

\1\Does not include the effect of the government-wide 0.22 percent
  across-the-board reduction.
\2\Funding for General Operating Expenses is provided in the General
  Operating Expenses, Veterans Benefits Administration, and General
  Administration accounts.

    The Administration's budget request proposes that funding 
for the administrative expenses associated with the Veterans 
Benefits Administration and all Department-wide offices be 
included within one single appropriation account. The Committee 
recommendation includes funding for these functions in two 
separate accounts: General operating expenses, Veterans 
Benefits Administration, and General administration. The 
Committee believes that differences in the mission and purpose 
of the Department's executive offices and the Veterans Benefits 
Administration justify providing funding in two separate 
accounts. Further, separating these two broad categories will 
provide the Congress with greater visibility of budgetary 
resources and oversight of expenditures for these two vital 
missions.

                         GENERAL ADMINISTRATION

                     (INCLUDING TRANSFER OF FUNDS)




Fiscal year 2011 enacted level\1\.....................             - - -
Fiscal year 2012 budget request.......................             - - -
Committee recommendation in the bill\2\...............      $422,500,000
Comparison with:
    Fiscal year 2011 enacted level....................       422,500,000
    Fiscal year 2012 budget request...................      422,500,000

\1\$397,500,000 was provided for general administration under the
  General Operating Expenses account in fiscal year 2011.
\2\The budget request includes $448,225,000 for general administration
  within the General Operating Expenses account.

    The general administration account provides funds for the 
Office of the Secretary, six Assistant Secretaries, and three 
independent staff offices. The Committee provides $422,500,000 
for fiscal year 2012 for the account. This amount is the 
equivalent of being $25,000,000 above the fiscal year 2011 
enacted level and $25,725,000 below the budget request. The 
Committee has included bill language to make available through 
September 30, 2013, up to $22,144,000 of these funds and to 
permit the transfer of funds in this account to the General 
operating expenses, Veterans Benefits Administration account.
    The Committee freezes funding for headquarters offices at 
the fiscal year 2011 level, except for a $5,000,000 increase 
for the Board of Veterans Appeals, to accommodate an increasing 
caseload and backlog, and a $20,000,000 increase for the Office 
of Acquisition, Logistics and Construction to implement the 
government-wide initiative to improve the quality of the large 
volume of contracting and acquisitions performed by the VA. The 
Committee recommendation includes bill language setting aside 
the $20,000,000 for acquisitions improvements and permitting 
the transfer of these funds to any other account in the 
Department to carry out these activities.
    Energy systems.--The Committee recognizes that many 
facilities operated by the VA utilize district energy systems, 
which connect multiple buildings through an underground piping 
network that carries hot and cold water or steam and achieves 
at least twice the fuel efficiency of traditional heating and 
cooling systems. The Committee requests the VA to conduct a 
study to inventory which of its current and planned facilities 
could achieve reduced energy costs and increased security of 
energy supply by building or expanding district energy systems 
and by installing combined heat and power technologies. This 
study should include a list of priority facilities to receive 
energy infrastructure investments and may include energy life 
cycle analyses. The results of the foregoing study shall be 
submitted to the Committees on Appropriations of both Houses of 
Congress by January 30, 2012. Further, the Committee encourages 
the VA to pursue increased investment in district energy 
systems as a strategy for the VA to achieve the goals of 
pollution reduction and environmental sustainability outlined 
in Executive Order 13514--Federal Leadership in Environmental, 
Energy, and Economic Performance.
    Veteran-owned small businesses.--The Committee appreciates 
the unique buying authority (Public Law 109-461) that permits 
the VA to have set-aside requirements for veteran-owned small 
businesses (VOSB). The Committee is concerned that proper 
monitoring and verification of veteran-owned businesses needs 
to be done and therefore requests a report by March 1, 2012 
accounting for: the number of self-representing businesses and 
the number of businesses that have submitted for verification 
that are at least 51 percent owned and controlled by veterans 
or service-disabled veterans; the number of self-representing 
businesses and the number of businesses that have submitted for 
verification that meet Federal small business size standards, 
which should include ownership and size of any parent and/or 
subsidiaries; what is being done to achieve the three percent 
service disabled veteran-owned small business (SDVOSB) prime 
contract goal; what is being done to promote the formation and 
expansion of verified veteran-owned businesses, including 
service disabled veteran-owned small businesses; and what is 
being done to verify ownership and control of other veteran-
owned businesses, including verifying the accuracy of other 
contractor databases that have VOSB/SDVOSB information. The 
Committee requests that the report disaggregate the data to 
include separately demographics of VOSBs and SDVOSBs.
    Environmental sustainability goals.--The Department 
currently submits information to Congress through the 
Department of Energy and the Office of Management and Budget on 
its progress in meeting several environmental sustainability 
goals established by Executive Order 13514, including the:
          (1) 2020 greenhouse gas emissions reduction target;
          (2) 30 percent reduction in vehicle fleet petroleum 
        use by 2020;
          (3) 26 percent improvement in water efficiency by 
        2020;
          (4) 50 percent recycling and waste diversion by 2015; 
        and
          (5) goal that 95 percent of all applicable contracts 
        will meet sustainability requirements.
    Not later than 180 days after the enactment of this Act, 
the Committee directs that the Department report to the 
Committee information on the Department's progress in meeting 
the other requirements of the Executive Order:
          (1) implementation of the 2030 net-zero-energy 
        building requirement;
          (2) implementation of the stormwater provisions of 
        the Energy Independence and Security Act of 2007, 
        section 438; and
          (3) development of guidance for sustainable Federal 
        building locations in alignment with the Livability 
        Principles put forward by the Department of Housing and 
        Urban Development, the Department of Transportation, 
        and the Environmental Protection Agency.
    Hard of hearing access.--The Committee encourages the 
Secretary to ensure that VA toll-free telecommunications device 
for the deaf phone numbers are accessible from all locations in 
the United States, its territories and possessions.
    Quarterly full-time equivalents (FTE) reports.--The 
Committee requests that the VA provide, on a quarterly basis, 
the total current FTE by appropriation account and, in the case 
of General operating expenses, Veterans Benefits 
Administration, by program. The Committee feels it needs to 
have current staffing information throughout the year in order 
to monitor the use of salaries and expenses resources.
    Additional budgetary information.--The Committee 
appreciates the changes the VA has made to its budget 
justifications in response to Committee requests for fiscal 
year 2011, but believes that the budget justifications 
submitted each year with the Administration's budget should be 
further expanded to include the following information which 
would help inform Congressional decisions:
     A brief explanation of each proviso in an 
account's appropriation bill language and any proposed bill 
language changes.
     A consolidated administrative expenses chart for 
the entire Department.
     A section identifying each piece of directive 
report language from the previous year's House, Senate and 
conference reports and the VA response/action taken for each 
item.
     An organization chart for the VA as well as the 
individual Administrations with the names of the occupant of 
each position on the chart.
     A program narrative for the medical facilities 
section.
     A narrative describing each of the programs in the 
readjustment benefits programs rather than only a description 
of increases and decreases.
    The Committee directs the Secretary of Veterans Affairs 
(VA) to include in the Fiscal Year 2013 budget submission a 
detailed summary of the VA marketing campaign budget. This 
summary shall include the amounts expended on VA advertising 
campaigns and a detailed list of outreach methods. In addition, 
the VA should also submit a detailed summary of previous 
advertising campaigns initiated during the fiscal years 2009 
through 2012.

      GENERAL OPERATING EXPENSES, VETERANS BENEFITS ADMINISTRATION




Fiscal year 2011 enacted level\1\.....................             - - -
Fiscal year 2012 budget request\2\....................             - - -
Committee recommendation in the bill..................    $2,020,128,000
Comparison with:
    Fiscal year 2011 enacted level....................     2,020,128,000
    Fiscal year 2012 budget request...................    2,020,128,000

\1\$2,148,776,000 was provided for the Veterans Benefits
  Administration's administrative expenses under the General Operating
  Expenses account in fiscal year 2011.
\2\The budget request includes $2,018,764,000 for the Veterans Benefits
  Administration's administrative expenses within the General Operating
  Expenses account.

    The General Operating Expenses, Veterans Benefits 
Administration account provides funding for the Veterans 
Benefits Administration to administer entitlement programs such 
as service-connected disability compensation, education 
benefits, and vocational rehabilitation services.
    The Committee recommends $2,020,128,000 for General 
operating expenses, Veterans Benefits Administration. The 
Committee has proposed creating this new account to provide 
increased visibility and oversight of expenditures associated 
with VBA. This amount is the equivalent of $128,648,000 below 
the fiscal year 2011 enacted level and $1,364,000 above the 
budget request. The Committee has included bill language to 
make available through September 30, 2013, up to $105,856,000 
of these funds.
    Claims processing delays.--A new generation of heroes has 
sacrificed on behalf of the country with their service in 
Afghanistan, Iraq and other outposts in the global war on 
terror. This service creates an undeniable responsibility to 
care for them when they return home. The Committee urges the 
Department to refocus its efforts on the growing backlog of 
disability benefit claims and develop and incorporate new 
information technology and customer service enhancements to put 
the VA on a path to achieving the ultimate goal of no claims 
being more than 125 days old by 2015. In an effort to 
understand the scope of the difficulty in achieving this goal, 
the Committee directs the VA to produce a plan no later than 
180 days after enactment of this Act designed to eliminate the 
current backlog of veterans' claims by December 31, 2013. This 
plan should include estimates of the funding necessary for its 
implementation.
    Education transition programs.--The Committee is encouraged 
by the budget request's expansion of the VetSuccess on Campus 
initiative that provides outreach and transition services to 
veterans during their transition from the military to college. 
The program provides on-campus vocational rehabilitation 
counselors and Vet Center outreach coordinators to ensure the 
coordinated delivery of health, education and benefit services 
to Veteran-students.
    Access in remote areas.--The Committee encourages the 
Veteran Benefits Administration to work to increase the 
presence of staff in remote or underserved areas such as the 
Commonwealth of the Northern Mariana Islands. Making sure that 
veterans in remote and underserved areas receive access to 
veterans services is essential to honoring their sacrifices.
    Vet Center placement.--The Committee requests the 
Department to submit a report not later than February 1, 2012, 
describing the criteria currently used for selection of the 
location of Veteran Centers; the number of veterans annually 
served at the existing centers, including veterans who have 
served in Afghanistan and Iraq; and the share of the veteran 
population by region that is within existing Vet Center service 
areas.
    Disabled veterans home modification.--The Committee 
encourages the Secretary to provide specially adapted housing 
assistance under subsection (b) of section 2101 of title 38, 
United States Code, to veterans described in paragraph (2) of 
that subsection who reside in residences owned by family 
members in accordance with paragraph (3) of that subsection. 
Current regulations prevent veterans from receiving assistance 
if they live in a home owned by a family member; however, 
territorial law in some areas prevents non-natives from owning 
property.

                     INFORMATION TECHNOLOGY SYSTEMS




Fiscal year 2011 enacted level\1\.....................    $2,999,898,000
Fiscal year 2012 budget request.......................     3,161,376,000
Committee recommendation in the bill..................     3,025,000,000
Comparison with:
    Fiscal year 2011 enacted level....................        25,102,000
    Fiscal year 2012 budget request...................    (136,376,000)

\1\Does not include the effect of the government-wide 0.22 percent
  across the board cut.

    The Information Technology Systems account was established 
in P.L. 109-114. The account previously encompassed the entire 
non-pay information technology portfolio for the Department of 
Veterans Affairs, including all automation efforts in all 
Administrations. Starting in fiscal year 2007, and reflected 
for the first time in the budget request for fiscal year 2008, 
this account also includes pay and associated costs for 
information technology staff.
    The Committee recommends an appropriation of $3,025,000,000 
for Information Technology Systems, which is $25,102,000 above 
the fiscal year 2011 appropriation and $136,376,000 below the 
budget request. These funds are available until September 30, 
2013.
    The Committee continues to include bill language requiring 
the Department to submit an expenditure plan for the total 
amount provided, not later than 30 days after enactment of this 
Act, before the expenditure of any funding. The bill also 
includes a proviso requiring that, not later than 30 days after 
the date of the enactment of this Act, the Secretary shall 
submit to the Appropriations Committees a reprogramming base 
letter which sets forth, by project, the operations and 
maintenance costs, with salary expenses separately designated, 
and development costs to be carried out utilizing amounts made 
available under this heading. In addition, an administrative 
provision is included in the bill which allows for the 
reprogramming of funds in this account among projects upon 
prior notification to, and approval by, the Committee.
    Obligations report.--The Committee expects the Office of 
Information Technology to continue to provide an IT expenditure 
report to the Committees on Appropriations on a monthly basis. 
This report shall include a comparison to the project costs 
included in the base reprogramming letter submitted to the 
Congress, and provide an explanation for any differences in 
excess of $1,000,000.
    Lifetime electronic records.--When a member of the armed 
forces leaves the military, he or she has had to physically 
walk paperwork from a military duty station to a local VA 
health center. For years, the Committee has been encouraging 
and funding efforts by VA and the Department of Defense (DoD) 
to develop interoperable technology to facilitate the rapid 
exchange of patient and beneficiary information that will yield 
consolidated, coherent and consistent access to electronic 
records between VA and DoD. Lifetime electronic health records 
would significantly improve the delivery of care to 
servicemembers transitioning from military to civilian life. 
The Committee provides $70,000,000 as requested in the budget 
for the ongoing effort to create the virtual lifetime 
electronic record (VLER). The Committee requests a report 
identifying the total cost of the VLER project, the benchmarks 
and timeframes the project must meet to qualify for future 
funding, and the types of information that is envisioned to be 
made available electronically through VLER.

                      OFFICE OF INSPECTOR GENERAL




Fiscal year 2011 enacted level\1\.....................      $109,000,000
Fiscal year 2012 budget request.......................       109,391,000
Committee recommendation in the bill..................       109,391,000
Comparison with:
    Fiscal year 2011 enacted level....................           391,000
    Fiscal year 2012 budget request...................          391,000

\1\Does not include the effect of the government-wide 0.22 percent
  across the board cut.

    The Office of Inspector General was established by the 
Inspector General Act of 1978 and is responsible for the audit, 
investigation, and inspection of all Department of Veterans 
Affairs programs and operations. The overall operational 
objective is to focus available resources on areas which would 
help improve services to veterans and their beneficiaries, 
assist managers of Department programs to operate economically 
in accomplishing program goals, and to prevent and deter 
recurring and potential fraud, waste, and inefficiencies.
    The Committee recommends an appropriation of $109,391,000 
for the Office of Inspector General, an increase of $391,000 
above the fiscal year 2011 enacted level and the same as the 
budget request. The bill makes $6,000,000 of the total funding 
available until September 30, 2013.
    Fraud, waste and abuse.--The Committee remains concerned by 
reports by the Office of Inspector General and the General 
Accountability Office (GAO) that the VA continues to have 
endemic problems in management and financial controls in areas 
such as disability claims and fee-based care. In its 2011 
listing of 30 high-risk government areas, the GAO includes VA 
claims processing activities. The VA OIG reported in its 
testimony to the subcommittee that:
     Of approximately 45,000 benefit claims requiring 
rating decisions reviewed by the IG, 23 percent were processed 
incorrectly.
     VA staff did not adequately process total 
disability evaluations for about 15 percent of approximately 
181,000 veterans, resulting in overpayments of $943 million 
since 1993. Without further action to adjust the benefits, VBA 
will overpay these veterans a projected $1.1 billion over the 
next 5 years.
     In 2009, VA improperly paid 28 percent of 
inpatient medical fee claims by not properly authorizing fee 
care, and not correctly determining payment rates, resulting in 
$120 million in overpayments. Without corrective actions, the 
VA could make $600 million in improper payments over the next 5 
years.
    The Committee believes that efforts by the OIG to identify 
and report financial mismanagement of this scale and severity 
must be redoubled in order to protect obligations to veterans 
and to the taxpayers financing their benefits.

                      CONSTRUCTION, MAJOR PROJECTS




Fiscal year 2011 enacted level\1\.....................    $1,076,036,000
Fiscal year 2012 budget request.......................       589,604,000
Committee recommendation in the bill..................       589,604,000
Comparison with:
    Fiscal year 2011 enacted level....................     (486,432,000)
    Fiscal year 2012 budget request...................             - - -

\1\Does not include the effect of the government-wide 0.22 percent
  across the board cut.

    The Construction, Major Projects appropriation provides for 
constructing, altering, extending, and improving any of the 
facilities under the jurisdiction or for the use of the 
Department of Veterans Affairs, including planning, 
architectural and engineering services, assessments, and site 
acquisition where the estimated cost of a project is 
$10,000,000 or more.
    The Committee recommends an appropriation of $589,604,000 
for Construction, Major Projects, a decrease of $486,432,000 
from the fiscal year 2011 enacted level and the same as the 
budget request. VA has identified $381,614,000 in prior year 
appropriations that are also available to address VA 
construction priorities, making the program level for fiscal 
year 2012 under the Committee recommendation $971,218,000. The 
Committee recommendation makes these funds available for a 
five-year period rather than until expended, reflecting concern 
about the lengthy period that VA has taken to design and build 
major construction projects. The Committee hopes that limiting 
the time period during which these funds may be used will 
motivate the VA to better plan and design projects before 
funding is requested.
    The Committee recommendation provides funding for 7 
continuing major construction projects, 5 of which would be 
completed, but 2 that would require an additional $680,423,000 
to complete in future years. The Committee also provides 
requested first year funding for 3 new projects totaling 
$94,650,000. This action creates continuing unfunded 
obligations of $1,371,850,000 to complete the projects. This 
new commitment is in addition to an unfunded obligation of 
$3,459,789,000 for 16 projects that were started in previous 
years, but neglected in the fiscal year 2012 budget request. 
With the enormous pressures the Congress faces to reduce the 
deficit and the debt, the Committee believes the VA should end 
its practice of partially funding projects and creating future 
unfunded obligations. The Committee expects future major 
construction project requests to completely fund any requested 
projects in the first year of availability.
    The Committee recommendation includes language in 
administrative provisions which requires the Department to 
notify the Congress of bid savings on contracts for 
construction projects and prohibits any changes from the 
original scope of work identified in the justification material 
submitted with the budget for each project.
    The specific amounts recommended by the Committee are as 
follows:

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                                                   Committee
                  Location                            Description              2012 request      recommendation
----------------------------------------------------------------------------------------------------------------
Veterans Health Administration (VHA):
    New Orleans, LA........................  New Medical Facility.........        $60,000,000        $60,000,000
    Denver, CO.............................  New Medical Facility.........         42,000,000         42,000,000
    San Juan, PR...........................  Seismic Corrections..........        100,720,000        100,720,000
    St. Louis, MO..........................  Med Facility Improvements....         80,000,000         80,000,000
    Palo Alto, CA..........................  Polytrauma/Ambulatory Care...         75,900,000         75,900,000
    Bay Pines, FL..........................  Inpatient/Outpatient                  43,970,000         43,970,000
                                              Improvements.
    Seattle, WA............................  Seismic Deficiencies.........         47,500,000         47,500,000
    Reno, NV...............................  Expand Clinical Services.....         21,380,000         21,380,000
    W. Los Angeles, CA.....................  New Tower/Renovation.........         50,790,000         50,790,000
    San Francisco, CA......................  Seismic Deficiencies.........         22,480,000         22,480,000
    Advance Planning Fund..................  .............................         59,145,000         59,145,000
    Asbestos...............................  .............................         40,000,000         40,000,000
    Facility Security......................  .............................          8,000,000          8,000,000
    CFM Staff..............................  .............................         24,200,000         24,200,000
    Judgment Fund..........................  .............................          5,000,000          5,000,000
                                                                           -------------------------------------
      Total VHA............................  .............................        681,085,000        681,085,000
National Cemetery Administration (NCA):
    Natl Mem Cemetery of Pacific...........  Columbarium/Admin Bldg.......         23,700,000         23,700,000
    Advance Planning Fund..................  .............................          4,500,000          4,500,000
    NCA Land Acquisition Fund..............  .............................         10,000,000         10,000,000
                                                                           -------------------------------------
      Total NCA............................  .............................         38,200,000         38,200,000
General Administration--Staff Offices Dept.  .............................          6,000,000          6,000,000
 APF for Major.
Available from existing projects...........  .............................      (135,681,000)      (135,681,000)
                                                                           -------------------------------------
      Major construction total.............  .............................        589,604,000        589,604,000
----------------------------------------------------------------------------------------------------------------

    Joint Veterans Administration/Department of Defense 
facilities.--The Committee has long expressed an interest in 
the construction of joint Veterans/Army medical facilities. 
With the construction of new medical facilities such as the 
Martin Army Hospital at Ft. Benning, joint medical facilities 
that can serve both active duty servicemembers and veterans 
could be a cost-savings strategy, for both the Department of 
Defense (DoD) and the VA. Therefore, the Committee requests the 
VA and DoD to provide to the Committee a complete analysis and 
review of the Ft. Benning facility and other joint facilities, 
like the former Ft. Ord site, and report its findings no later 
than 180 days after the date of enactment of this Act. Further, 
the Committee requests the GAO to conduct a review of 
effectiveness and cost-efficiency of joint VA/military medical 
facilities currently in operation and identify other facilities 
where a joint VA/DoD project could be successful. The GAO 
report also should be submitted not later than 180 days after 
the date of enactment of this Act.
    Lexington, KY Leestown Road VA Medical Center.--The VA is 
directed to report to the Committee by February 15, 2012 on its 
plans and completion date for a new facility at Leestown Road.
    Health care center expansions.--Recognizing the lack of 
accessible VA services in many regions of the country, the 
Committee urges the Secretary to include in the VA Strategic 
Capital Improvement Plan the expansion of existing VA health 
care centers to include in-patient accommodations, urgent care 
services, and the full range of services required by women 
veterans when the absence of such services locally requires 
veterans to make round trips of more than five hours to access 
such services at a VA facility.
    Contract Structures and Management.--The Committee believes 
that structuring contracts and employee compensation with 
incentives to reduce cost by permitting retention of a share of 
savings has the potential to generate substantial economies. 
The Committee directs the Department of Veterans Affairs to 
report to the Committee on the structure of its contracts for 
construction, both major and minor projects, and facilities 
repair projects with a value of greater than $2 million. The 
report shall include the portion of contracts awarded on a 
fixed-price basis, those awarded on a cost-plus fee basis, and 
all other contract structures used by the Department for its 
construction programs. For all contracts, the Department is 
directed to report on incentives that are included in the 
contracts to reduce the cost to the government and any 
financial incentives included for completion of contracts ahead 
of schedule or under cost. If such incentives do not currently 
exist, the Department is to report on the feasibility of 
beginning such a program.

                      CONSTRUCTION, MINOR PROJECTS




Fiscal year 2011 enacted level\1\.....................      $467,700,000
Fiscal year 2012 budget request.......................       550,091,000
Committee recommendation in the bill..................       475,091,000
Comparison with:
    Fiscal year 2011 enacted level....................         7,391,000
    Fiscal year 2012 budget request...................      (75,000,000)

\1\Does not include the effect of the government-wide 0.22 percent
  across the board cut.

    The Construction, Minor Projects appropriation provides for 
constructing, altering, extending, and improving any of the 
facilities under the jurisdiction or for the use of the 
Department, including planning, assessment of needs, 
architectural and engineering services, and site acquisition, 
where the estimated cost of a project is less than $10,000,000.
    The Committee recommends an appropriation of $475,091,000 
for Construction, Minor Projects, an increase of $7,391,000 
above the fiscal year 2011 enacted level and $75,000,000 below 
the budget request. As with the major construction account, the 
Committee recommendation makes these funds available for a five 
year period rather than until expended, reflecting concern 
about the long period that VA has taken to design and build 
construction projects.

       GRANTS FOR CONSTRUCTION OF STATE EXTENDED CARE FACILITIES




Fiscal year 2011 enacted level\1\.....................       $85,000,000
Fiscal year 2012 budget request.......................        85,000,000
Committee recommendation in the bill..................        85,000,000
Comparison with:
    Fiscal year 2011 enacted level....................             - - -
    Fiscal year 2012 budget request...................            - - -

\1\Does not include the effect of the government-wide 0.22 percent
  across the board cut.

    This appropriation provides grants to assist States to 
construct State home facilities, for furnishing domiciliary or 
nursing home care to veterans, and to expand, remodel or alter 
existing buildings for furnishing domiciliary, nursing home or 
hospital care to veterans in State homes. A grant may not 
exceed 65 percent of the total cost of the project.
    The Committee recommends an appropriation of $85,000,000 
for Grants for Construction of State Extended Care Facilities, 
available until expended, which is the same as the fiscal year 
2011 enacted level and the budget request.

             GRANTS FOR CONSTRUCTION OF VETERANS CEMETERIES




Fiscal year 2011 enacted level\1\.....................       $46,000,000
Fiscal year 2012 budget request.......................        46,000,000
Committee recommendation in the bill..................        46,000,000
Comparison with:
    Fiscal year 2011 enacted level....................             - - -
    Fiscal year 2012 budget request...................            - - -

\1\Does not include the effect of the government-wide 0.22 percent
  across the board cut.

    This program provides grants to assist States and tribal 
governments with the establishment, expansion, and improvement 
of veterans cemeteries which are operated and permanently 
maintained by the States and tribal governments. Grants under 
this program fund up to 100 percent of construction costs and 
the initial equipment expenses when the cemetery is 
established. The States and tribal governments remain 
responsible for providing the land and for paying all costs 
related to the operation and maintenance of the State 
cemeteries, including the costs for subsequent equipment 
purchases.
    The Committee recommends an appropriation of $46,000,000 
for Grants for Construction of Veterans Cemeteries to be 
available until expended, which is the same as the fiscal year 
2011 enacted level and the budget request.

                       Administrative Provisions

    The bill includes 26 provisions that were in effect in 
fiscal year 2011 and 4 new provisions. The administrative 
provisions included in the bill are as follows:

                     (INCLUDING TRANSFER OF FUNDS)

    Section 201 allows for the transfer of funds among three 
mandatory appropriations. The Administration proposal to modify 
this provision is not adopted.

                     (INCLUDING TRANSFER OF FUNDS)

    Section 202 allows the Department to transfer funding among 
the three medical appropriations accounts in fiscal year 2012. 
The Administration proposal to modify this provision is not 
adopted.
    Section 203 allows for salaries and expenses funds to be 
used for hire of passenger vehicles, lease of facilities or 
land, and purchase of uniforms.
    Section 204 provides that only funding in the 
``Construction, major projects'' and ``Construction, minor 
projects'' accounts can be used for the purchase of any site 
for any new hospital or home or to construct any new hospital 
or home.
    Section 205 requires the Department to be reimbursed for 
medical services it provides to any person not defined as a 
beneficiary to ensure the Department is receiving payment for 
all medical services provided.
    Section 206 allows for the use of funds appropriated in 
fiscal year 2012 for ``Compensation and pensions'', 
``Readjustment benefits'', and ``Veterans insurance and 
indemnities'' for payment of accrued obligations recorded in 
the last quarter of fiscal year 2011.
    Section 207 allows for the use of fiscal year 2012 funds to 
pay prior year obligations resulting from implementation of 
sections 3328(a), 3334, and 3712(a) of title 31, United States 
Code.

                     (INCLUDING TRANSFER OF FUNDS)

    Section 208 allows the Department to use surplus earnings 
from the national service life insurance, U.S. Government life 
insurance, and veterans special life insurance program to 
administer these programs.
    Section 209 allows the Department to cover the 
administrative expenses of enhanced-use lease services and 
provides authority to obligate these reimbursements in the year 
funds are received.

                     (INCLUDING TRANSFER OF FUNDS)

    Section 210 limits the amount of reimbursement the Office 
of Resolution Management and the Office of Employment 
Discrimination Complaint Adjudication can charge other offices 
and accounts of the Department for services provided.
    Section 211 requires the Secretary to submit a report to 
the Committees on Appropriations to approve new leases of real 
property if the estimated annual rental cost is more than 
$1,000,000. The Administration proposal to modify this 
provision is not adopted.
    Section 212 requires the Department to collect current and 
accurate third-party reimbursement information for the purposes 
of third-party insurance collections. If persons receiving care 
or medical services do not disclose this information, the 
Department is allowed to bill them reasonable charges for 
services provided.

                     (INCLUDING TRANSFER OF FUNDS)

    Section 213 allows the Department to use enhanced-use 
leasing funds for construction and alteration of medical 
facilities.
    Section 214 allows the Department to use the ``Medical 
services'' appropriation for expenses related to the broader 
mission of medical care to veterans.

                     (INCLUDING TRANSFER OF FUNDS)

    Section 215 allows the Department to transfer Medical Care 
Collections to the ``Medical services'' appropriation to be 
used for veterans medical care and makes those funds available 
until expended.
    Section 216 allows veterans who reside in Alaska to obtain 
medical services from medical facilities supported by the 
Indian Health Service or tribal organizations, and provides for 
reimbursement for those services from the Department of 
Veterans Affairs.

                     (INCLUDING TRANSFER OF FUNDS)

    Section 217 allows the Department to transfer the proceeds 
received from the transfer of real property deposited into the 
Department of Veterans Affairs Capital Asset Fund to the major 
and minor construction appropriations and makes those funds 
available for five years, instead of until expended as proposed 
by the Administration.
    Section 218 provides that no funds may be used to prohibit 
Directors of the Veterans Integrated Service Networks (VISN) 
from conducting outreach or marketing programs. The 
Administration proposed to delete this provision.
    Section 219 requires the Secretary to submit quarterly 
reports to the Committees on Appropriations of the House and 
Senate on the financial status of the Veterans Health 
Administration.

                     (INCLUDING TRANSFER OF FUNDS)

    Section 220 requires the Department to notify and receive 
approval from the Committees on Appropriations of any proposed 
transfer of funding to or from the ``Information technology 
systems'' account. The Administration proposal to modify this 
provision is not adopted.

                     (INCLUDING TRANSFER OF FUNDS)

    Section 221 requires the Department to notify and receive 
approval from the Committees on Appropriations of any proposed 
transfer of funding in excess of $1,000,000 between information 
technology system projects. The Administration proposal to 
modify this provision is not adopted.
    Section 222 limits the amount of funding made available 
under the ``Medical facilities'' account for non-recurring 
maintenance that may be obligated during the last two months of 
the fiscal year. The Administration proposal to delete this 
provision is not adopted.

                     (INCLUDING TRANSFER OF FUNDS)

    Section 223 permits the transfer of $241,666,000 
appropriated for medical accounts, minor construction, and 
information technology systems to the Joint Department of 
Defense-Department of Veterans Affairs Medical Facility 
Demonstration Fund for the operation of facilities designated 
as combined Federal medical facilities. The Administration 
proposal to modify this provision is not adopted.

                     (INCLUDING TRANSFER OF FUNDS)

    Section 224 permits the transfer of funds deposited in the 
Medical Care Collections Fund to the Joint Medical Facility 
Demonstration Fund for facilities designated as combined 
Federal medical facilities.

                     (INCLUDING TRANSFER OF FUNDS)

    Section 225 directs that a minimum of $15,000,000 shall be 
transferred from three medical appropriations to the Department 
of Defense/Department of Veterans Affairs Health Care Sharing 
Incentive Fund, to be available until expended.

                    (INCLUDING RESCISSION OF FUNDS)

    Section 226 rescinds fiscal year 2012 funds from three 
medical accounts and appropriates them for fiscal year 2012 
with two-year availability. The amounts provided are the same 
as those with two-year availability in the fiscal year 2011 
appropriation rather than the amounts requested by the 
Administration in the fiscal year 2011 budget.
    Section 227 requires the Secretary to notify the Committees 
on Appropriations of both Houses of Congress of all bid savings 
in Major Construction projects that total at least $5,000,000, 
or five percent of the programmed amount, whichever is less. 
Such notification must occur within 14 days of a contract. The 
Secretary is required to notify the Committees 14 days prior to 
the obligation of such bid savings and shall describe the 
anticipated use of such savings.
    Section 228 prohibits the original scope of work for a 
Major Construction project from being increased above the scope 
specified for that project in the original justification data 
provided to the Congress as part of the request for 
appropriations.
    Section 229 gives the Secretary the authority for and 
mandates disclosure of controlled substance prescriptions to 
State controlled substance monitoring programs to the extent 
necessary to prevent misuse and diversion of prescription 
medicines.
    Section 230 prohibits the VA from spending more than 
$250,000 on any single national outreach and awareness 
marketing campaign prior to submitting a request to the 
Committees on Appropriations of both Houses of Congress and an 
approval is issued, or absent a response, a period of 30 days 
has elapsed.

                               TITLE III


                            RELATED AGENCIES


                  American Battle Monuments Commission


                         SALARIES AND EXPENSES




Fiscal year 2011 enacted level........................       $64,200,000
Fiscal year 2012 budget request.......................        61,100,000
Committee recommendation in the bill..................        61,100,000
Comparison with:
    Fiscal year 2011 enacted level....................       (3,100,000)
    Fiscal year 2012 budget request...................             - - -


    The American Battle Monuments Commission is responsible for 
the administration, operation and maintenance of cemetery and 
war memorials to commemorate the achievements and sacrifices of 
the American Armed Forces where they have served since April 6, 
1917. In performing these functions, the Commission maintains 
24 permanent American military cemetery memorials and 31 
monuments, memorials, markers, and offices in 15 foreign 
countries, the Commonwealth of the Northern Mariana Islands, 
and the British dependency of Gibraltar. In addition, six 
memorials are located in the United States: the East Coast 
Memorial in New York; the West Coast Memorial, The Presidio in 
San Francisco; the Honolulu Memorial in the National Memorial 
Cemetery of the Pacific in Honolulu, Hawaii; and the American 
Expeditionary Forces Memorial, the World War II, and Korean War 
Veterans Memorials in Washington, DC.
    The Committee recommends an appropriation of $61,100,000 
for the American Battle Monuments Commission's salaries and 
expenses account, the same as the budget request.
    Language is included allowing up to $7,500 to be used for 
official reception and representation expenses.

                 FOREIGN CURRENCY FLUCTUATIONS ACCOUNT




Fiscal year 2011 enacted level........................       $20,200,000
Fiscal year 2012 budget request est...................        16,000,000
Committee recommendation in the bill est..............        16,000,000
Comparison with:
    Fiscal year 2011 enacted level....................       (4,200,000)
    Fiscal year 2012 budget request...................             - - -


    The Commission's Foreign Currency Fluctuations Account is 
authorized pursuant to 36 U.S.C. 2109 to pay the costs of 
salaries and expenses that exceed the amount appropriated for 
salaries and expenses because of fluctuations in currency 
exchange rates of foreign countries occurring after a budget 
request for the Commission is submitted to the Congress. The 
account may not be used for any other purpose.
    The Committee recommendation includes bill language as 
proposed which makes ``such sums as may be necessary'' 
available to the Commission to cover unanticipated foreign 
currency fluctuations, currently estimated at $16,000,000.

           United States Court of Appeals for Veterans Claims


                         SALARIES AND EXPENSES




Fiscal year 2011 enacted level........................       $27,615,000
Fiscal year 2012 budget request.......................        55,770,000
Committee recommendation in the bill..................        30,770,000
Comparison with:
    Fiscal year 2011 enacted level....................         3,155,000
    Fiscal year 2012 budget request...................      (25,000,000)


    The Veterans' Judicial Review Act established the U.S. 
Court of Appeals for Veterans Claims. The Court reviews appeals 
from claimants seeking review of a benefit denial. The Court 
has the authority to overturn findings of fact, regulations, 
and interpretations of law.
    The Committee recommends an appropriation of $30,770,000 
for the U.S. Court of Appeals for Veterans Claims, an increase 
of $3,155,000 above the fiscal year 2011 enacted level and 
$25,000,000 below the budget request. Of the amount provided, 
$2,726,363 is to be used for the pro bono representation 
program.
    The Committee notes that the President's budget request 
includes $25,000,000, which shall be transferred to the General 
Services Administration, for design and site acquisition of a 
Veterans Courthouse and Justice Center. The Committee 
recommendation does not include the amount requested. The 
Committee is concerned with the potential location of the 
facility and the projected cost to the taxpayers. The Committee 
encourages the General Services Administration and the Court to 
explore other options to provide the Court with better space, 
such as creative financing options to minimize or eliminate 
initial capital investment by the United States through the use 
of public-private partnerships or non-governmental sources of 
financing. Such an option was selected for the construction of 
the Thurgood Marshall Federal Judiciary Building near Union 
Station with outstanding results.

         Department of Defense--Civil Cemeterial Expenses, Army


                         SALARIES AND EXPENSES




Fiscal year 2011 enacted level........................       $45,100,000
Fiscal year 2012 budget request.......................        45,800,000
Committee recommendation in the bill..................        45,800,000
Comparison with:
    Fiscal year 2011 enacted level....................           700,000
    Fiscal year 2012 budget request...................             - - -


    The Secretary of the Army is responsible for the 
administration, operation and maintenance of Arlington National 
Cemetery and the Soldiers' and Airmen's Home National Cemetery. 
In addition to its principal function as a national cemetery, 
Arlington is the site of approximately 3,100 non-funeral 
ceremonies each year and has approximately 4,000,000 visitors 
annually.
    The Committee recommends an appropriation of $45,800,000 
for Cemeterial Expenses, Army, salaries and expenses, an 
increase of $700,000 above the fiscal year 2011 enacted level 
and the same as the budget request.
    The Committee understands Arlington National Cemetery is 
undertaking a cultural and natural resources plan to identify 
properties that could be placed on the National Register of 
Historic Places. The Committee strongly encourages Arlington 
National Cemetery to recognize the unique historic nature of 
the cemetery, to work expeditiously to get the cemetery placed 
on the National Register of Historic Places, and to report to 
the Committee on the status of the listing no later than 90 
days after enactment of this Act.
    The Committee is encouraged that, with the changes in 
management for the Army National Cemeteries Program and 
Arlington National Cemetery, past lapses and errors will not 
recur. The Committee believes the current management structure 
will ensure sound operations and will ensure that Arlington 
National Cemetery maintains its unique character and place in 
the hearts of all Americans.
    The Committee remains concerned about human resources 
management at Arlington National Cemetery. In nine of the last 
eleven years the Congress has provided more funding than 
requested in the President's budget for Arlington National 
Cemetery. Despite this fact, personnel resources were stretched 
too thin to meet the most pressing needs of the cemetery 
according to the Army Inspector General report issued last 
June. The Committee directs the Executive Director to provide 
periodic updates to the staffing plan for the cemetery, 
including updates on the status of hiring key personnel 
necessary to maintain orderly cemetery operations. In addition, 
the Committee directs the Executive Director to conduct a 
financial review and identify for the Committee unobligated 
funds from prior years which will be used to satisfy current 
operations and construction needs.

                      Armed Forces Retirement Home


                       OPERATION AND MAINTENANCE




Fiscal year 2011 enacted level........................       $69,200,000
Fiscal year 2012 budget request.......................        65,700,000
Committee recommendation in the bill..................        65,700,000
Comparison with:
    Fiscal year 2011 enacted level....................       (3,500,000)
    Fiscal year 2012 budget request...................             - - -


    The Armed Forces Retirement Home (AFRH) consists of two 
retirement communities, one in Washington, D.C. and the other 
in Gulfport, Mississippi. The Washington, D.C. facility was 
established in 1851 as a soldiers' home for elderly and 
disabled veterans. The original home for Navy officers, 
sailors, and Marines was established in Philadelphia, 
Pennsylvania in 1811, and was relocated to Gulfport, 
Mississippi almost a century and a half later.
    The Committee recommendation provides authority to expend 
$65,700,000 from the Armed Forces Retirement Home Trust Fund to 
operate and maintain the Armed Forces Retirement Home--
Washington, District of Columbia, and the Armed Forces 
Retirement Home--Gulfport, Mississippi. The amount recommended 
is $3,500,000 below the fiscal year 2011 enacted level and 
equal to the budget request.

                            CAPITAL PROGRAM




Fiscal year 2011 enacted level........................        $2,000,000
Fiscal year 2012 budget request.......................         2,000,000
Committee recommendation in the bill..................         2,000,000
Comparison with:
    Fiscal year 2011 enacted level....................             - - -
    Fiscal year 2012 budget request...................             - - -


    The Committee recommendation provides authority to expend 
$2,000,000 from the Armed Forces Retirement Home Trust Fund for 
construction and renovations. The amount recommended is the 
same as the fiscal year 2011 enacted level and equal to the 
budget request.

                                TITLE IV


                           GENERAL PROVISIONS

    The bill includes eight provisions that are effective in 
fiscal year 2011 and eight new provisions as follows:
    Section 401 prohibits the obligation of funds beyond the 
current fiscal year unless expressly so provided.
    Section 402 prohibits the use of funds for programs, 
projects or activities not in compliance with Federal law 
relating to risk assessment, the protection of private property 
rights, or unfunded mandates.
    Section 403 prohibits the use of funds to support or defeat 
legislation pending before Congress.
    Section 404 encourages all departments and agencies funded 
in this Act to expand the use of E-Commerce technologies and 
procedures.
    Section 405 specifies the Congressional committees that are 
to receive all reports and notifications.
    Section 406 prohibits any funds in this Act to be used for 
a project or program named for an individual serving as a 
Member, Delegate, or Resident Commissioner of the United States 
House of Representatives.
    Section 407 requires all reports submitted to the Congress 
to be posted on official websites of the submitting agency.
    Section 408 prohibits funds in this Act for the Association 
of Community Organizations for Reform Now.
    Section 409 prohibits the use of funds to establish or 
maintain a computer network unless such network blocks the 
viewing, downloading, and exchanging of pornography, except for 
law enforcement investigation, prosecution or adjudication 
activities.
    Section 410 prohibits the use of funds for payment of 
first-class travel by an employee of the executive branch.
    Section 411 prohibits the use of funds made available in 
this Act to exercise the power of eminent domain without just 
compensation.
    Section 412 prohibits the use of funds in this Act for the 
renovation, expansion, or construction of any facility in the 
continental United States for the purpose of housing any 
individual who has been detained at the United States Naval 
Station, Guantanamo Bay, Cuba.
    Section 413 prohibits the use of funds in this Act for any 
contract where the contractor has not complied with E-Verify 
requirements.
    Section 414 prohibits the use of funds in this Act for any 
contract, memorandum of understanding, or cooperative agreement 
with any corporation convicted of a felony criminal violation 
within the preceding 24 months.
    Section 415 prohibits the use of funds in this Act for 
enforcement of Executive Order 13502 relating to project labor 
agreements.
    Section 416 establishes a ``Spending Reduction Account'' in 
the bill.

              House of Representatives Report Requirements

    The following items are included in accordance with various 
requirements of the Rules of the House of Representatives.

                 Changes in Application of Existing Law

    Pursuant to clause 3(f)(1)(A) of rule XIII of the Rules of 
the House of Representatives, the following statements are 
submitted describing the effect of provisions in the 
accompanying bill that directly or indirectly change the 
application of existing law.
    Language is included in various parts of the bill to 
continue on-going activities that require annual authorization 
or additional legislation, which to date have not been enacted.
    Language is included in various parts of the bill to place 
limitations on the use of funds in the bill or change existing 
limitations and which might, under some circumstances, be 
construed as changing the application of existing law.
    Language is included in various parts of the bill to allow 
the Secretary of Defense to exceed certain limitations upon 
notification to the Committee.
    Language is included in various parts of the bill to allow 
funding to be used for official reception and representation 
expenses.
    Language is included in various parts of the bill to enable 
various appropriations to remain available for more than one 
year for some programs for which the basic authority 
legislation does not presently authorize such extended 
availability.
    Language is included in various parts of the bill to permit 
the transfer of funds to other accounts.
    Language is included under Title I to prohibit payments for 
cost-plus-a-fixed-fee contracts under certain circumstances.
    Language is included in various parts of the bill to allow 
funds to be used for the hire of passenger motor vehicles.
    Language is included under Title I to allow advances to the 
Federal Highway Administration, Department of Transportation 
under certain circumstances.
    Language is included under Title I to prohibit the use of 
funds to begin construction of new bases without specific 
appropriations.
    Language is included under Title I to prohibit the use of 
funds for purchase of land or land easements under certain 
circumstances.
    Language is included under Title I to prohibit the use of 
funds for land acquisition, site preparation, and utility 
installation for family housing unless funds have been made 
available in annual appropriations Acts.
    Language is included under Title I to prohibit the use of 
minor construction funds to transfer an activity between 
installations without prior notification.
    Language is included under Title I to prohibit the use of 
funds for the procurement of steel for any activity if American 
steel producers have been denied the opportunity to compete for 
such steel procurements.
    Language is included under Title I to prohibit the use of 
funds to pay real property taxes in any foreign nation.
    Language is included under Title I to prohibit the use of 
funds to initiate a new installation overseas without prior 
notification.
    Language is included under Title I to limit the use of 
funds for architect and engineer contracts under certain 
circumstances.
    Language is included under Title I to limit the use of 
funds for awarding contracts to foreign contractors under 
certain circumstances.
    Language is included under Title I to require the 
Department of Defense to notify the appropriate committees of 
Congress of any proposed military exercises under certain 
circumstances.
    Language is included under Title I to limit funding 
obligations for certain appropriations in the last two months 
of the fiscal year to 20 percent.
    Language is included under Title I to allow prior year 
construction funding to be available for currently authorized 
projects.
    Language is included under Title I to allow payment for the 
cost associated with supervision, inspection, overhead, 
engineering and design on family housing or military 
construction projects that are being completed with expired or 
lapsed funds.
    Language is included under Title I to allow funds to be 
expended on military construction projects for four fiscal 
years after enactment under certain circumstances.
    Language is included under Title I to allow for the 
transfer of BRAC proceeds to the BRAC account.
    Language is included under Title I to allow construction 
funds to be transferred to Housing Improvement Funds.
    Language is included under Title I to allow for the 
transfer of BRAC funds to the Homeowners Assistance Program.
    Language is included under Title I to limit funds for the 
operation and maintenance of family housing to those provided 
in this appropriation and to limit amounts expended on repairs 
of general and flag officer quarters under certain 
circumstances.
    Language is included under Title I to allow funds in the 
Ford Island Improvement Account to be available until expended 
for certain purposes.
    Language is included under Title I to limit funds for 
projects at closed or realigned installations under certain 
circumstances.
    Language is included under Title I to allow for the 
transfer of expired funding to the Foreign Currency Fluctuation 
Account under certain circumstances.
    Language is included under Title I to allow funds to be 
transferred among projects or activities within accounts under 
certain circumstances.
    Language is included that rescinds funds from prior year 
appropriations Acts.
    Language is included limiting the number of parking spaces 
that may be occupied at the BRAC office complex in Alexandria, 
Virginia, until certain conditions are met.
    Language is included under Title II to require that the 
Secretary of Veterans Affairs establish a priority for 
treatment of veterans who are service-connected disabled, lower 
income, or have special needs.
    Language is included under Title II to require that the 
Secretary of Veterans Affairs give priority funding of basic 
medical benefits to priority groups 1 through 6.
    Language is included under Title II to allow the Secretary 
of Veterans Affairs to dispense prescription drugs from VHA 
facilities to enrolled veterans with privately written 
prescriptions.
    Language is included under Title II providing for the 
reimbursement to the Department of Defense for the costs of 
overseas employee mail.
    Language is included under Title II to require approval of 
a transfer between projects of the information technology 
systems account.
    Language is included under Title II establishing time 
limitations and reporting requirements concerning the 
obligation of major construction funds, limiting the use of 
funds, and allowing the use of funds for program costs.
    Language is included under Title II to allow minor 
construction funds to be used to repair non-medical facilities 
damaged by natural disaster or catastrophe.
    Language is included under Title II prohibiting the VA from 
spending more than $250,000 on any single national outreach and 
awareness marketing campaign prior to submitting a request to 
the Committees on Appropriations of both Houses of Congress and 
an approval is issued, or absent a response, a period of 30 
days has elapsed.
    Language is included under Title II permitting transfers 
between mandatory and discretionary accounts, limiting and 
providing for the use of certain funds, funding administrative 
expenses associated with life insurance programs from excess 
program revenues, allowing reimbursement from enhanced-use 
leases and for certain services, requiring notification of new 
lease agreements, requiring disclosure of insurance and income 
information, allowing a recovery audit collection program, 
allowing veterans in the State of Alaska to use Indian Health 
Service facilities under certain conditions, allowing medical 
services funds for recreational and funeral expenses, and 
limiting the obligation of non-recurring maintenance funds 
during the last two months of the fiscal year.
    Language is included under the Court of Appeals for 
Veterans Claims, Salaries and Expenses, to permit the use of 
funds for a pro bono program.
    Language is included under Cemeterial Expenses, Army, 
Salaries and Expenses, to permit the use of funds for parking 
maintenance and repairs.
    Language is included under Title IV to limit the use of 
funds for architect and engineer contracts under certain 
circumstances.
    Language is included under Title IV to limit the use of 
funds for awarding contracts to foreign contractors under 
certain circumstances.
    Language is included under Title IV to limit the use of 
funds for Federal entities when they are not in compliance with 
Federal law relating to risk assessment, the protection of 
private property rights, or unfunded mandates.
    Language is included under Title IV to limit the use of 
funds for publicity or propaganda designed to support or defeat 
legislation pending before Congress.
    Language is included under Title IV to prohibit the use of 
funds for a project or program named for a serving Member of 
the United States Congress.
    Language is included under Title IV to prohibit funding 
being distributed to the Association of Community Organizations 
for Reform Now or its subsidiaries.
    Language is included under Title IV prohibiting funds from 
being used to maintain or establish a computer network unless 
such network blocks the viewing, downloading, and exchanging of 
pornography.
    Language is included under Title IV prohibiting funds from 
being used to execute a contract for goods or services where a 
contractor has not complied with Executive Order 12989.

                  Appropriations Not Authorized by Law

    Pursuant to clause 3(f)(1)(B) of rule XIII of the Rules of 
the House of Representatives, the following table lists the 
appropriations in the accompanying bill which are not 
authorized by law for the period concerned:


                           Transfer of Funds

    Pursuant to clause 3(f)(2) of rule XIII of the Rules of the 
House of Representatives, the following statements are 
submitted describing the transfer of funds provided in the 
accompanying bill.
    Language is included to allow Military Construction, 
Defense-Wide funds to be transferred to other military 
construction and family housing appropriations to be merged 
with and available for the same purpose and same time period.
    Language is included to allow BRAC proceeds to be 
transferred to the BRAC account to be merged with and available 
for the same purpose and same time period.
    Language is included to allow for the transfer of funds 
from Family Housing, Construction accounts to the Department of 
Defense Family Housing Improvement Fund and funds from Military 
Construction accounts to the Department of Defense Military 
Unaccompanied Housing Improvement Fund.
    Language is included to provide transfer authority from the 
BRAC account to the Homeowners Assistance Program.
    Language is included to allow the transfer of expired funds 
to the ``Foreign Currency Fluctuations, Construction, Defense'' 
account.
    Language is included to transfer not to exceed $32,187,000 
from Compensation and Pensions to General Operating Expenses, 
Veterans Benefits Administration, Medical Support and 
Compliance, and Information Technology Systems. These funds are 
for the administrative costs of implementing cost-savings 
proposals required by the Omnibus Budget Reconciliation Act of 
1990 and the Veterans' Benefits Act of 1992. Language is also 
included permitting necessary sums to be transferred to the 
medical facilities revolving fund to augment funding of medical 
centers for nursing home care provided to pensioners as 
authorized by the Veterans' Benefits Act of 1992.
    Language is included to provide authority for the 
Department of Veterans Affairs for any funds appropriated in 
2012 for Compensation and Pensions, Readjustment Benefits, and 
Veterans Insurance and Indemnities to be transferred among 
those three accounts.
    Language is included to transfer funds among the Medical 
Services, Medical Support and Compliance, and Medical 
Facilities accounts.
    Language is included to permit the transfer of funds from 
General Administration to General Operating Expenses, Veterans 
Benefits Administration.
    Language is included to permit the funds from three life 
insurance funds to be transferred to General Operating 
Expenses, Veterans Benefits Administration and Information 
Technology Systems for the costs of administering such 
programs.
    Language is included to permit up to $42,904,000 to be 
transferred to General Administration and Information 
Technology Systems from any funds appropriated in fiscal year 
2012 to reimburse the Office of Resolution Management and the 
Office of Employment Discrimination Complaint Adjudication for 
services provided.
    Language is included to transfer certain funds derived from 
enhanced-use leasing activities to the Construction, Major 
Projects and Construction, Minor Projects accounts.
    Language is included to transfer funds from the Medical 
Care Collections Fund to Medical Services.
    Language is included to allow the transfer of funds from 
the Capital Asset Fund to the Construction, Major Projects and 
Construction, Minor Projects accounts.
    Language is included to allow the transfer of funds from 
various accounts to the Information Technology Systems account 
subject to approval by the Committee.
    Language is included to allow the transfer of funds within 
Information Technology Systems between projects subject to 
approval by the Committee.
    Language is included to allow the transfer of funds 
provided for the Department of Veterans Affairs to the Joint 
Department of Defense-Department of Veterans Affairs Medical 
Facility Demonstration Fund.
    Language is included permitting funds deposited to the 
Medical Care Collections Fund for health care provided at a 
combined Federal medical facility to be transferred to the 
Joint Department of Defense-Department of Veterans Affairs 
Medical Facility Demonstration Fund.
    Language is included under the Department of Veterans 
Affairs that would transfer no less than $15,000,000 for the 
DoD/VA Health Care Sharing Incentive Fund as authorized by 
section 8111(d) of title 38, United States Code.

                              Rescissions

    Pursuant to clause 3(f)(2) of rule XIII of the Rules of the 
House of Representatives, the following table lists the 
rescissions in the accompanying bill:
          
          
        Department/activity           Amounts recommended for rescission
Department of Defense, Military Construction, Army......    $100,000,000
Department of Defense, Military Construction, Air Force.      32,000,000
Department of Defense, Military Construction, Navy and 
    Marine Corps........................................      25,000,000
Department of Defense, Military Construction, Defense-
    Wide................................................     131,400,000
Department of Defense, BRAC 1990........................     100,000,000
Department of Defense, BRAC 2005........................      50,000,000

                        Constitutional Authority

    Pursuant to section 6(e) of the Committee Rules, the 
following statement is submitted regarding the specific powers 
granted to Congress in the Constitution to enact the 
accompanying bill or joint resolution.
          The principal constitutional authority for this 
        legislation is clause 7 of section 9 of article I of 
        the Constitution of the United States (the 
        appropriation power), which states: ``No Money shall be 
        drawn from the Treasury, but in Consequence of 
        Appropriations made by Law. . . .'' In addition, clause 
        1 of section 8 of article I of the Constitution (the 
        spending power) provides: ``The Congress shall have the 
        Power . . . to pay the Debts and provide for the common 
        Defence and general Welfare of the United States . . 
        ..'' Together, these specific constitutional provisions 
        establish the congressional power of the purse, 
        granting Congress the authority to appropriate funds, 
        to determine their purpose, amount, and period of 
        availability, and to set forth terms and conditions 
        governing their use.

                 Comparison With the Budget Resolution

    Pursuant to clause 3(c)(2) of rule XIII of the Rules of the 
House of Representatives and section 308(a)(1)(A) of the 
Congressional Budget Act of 1974, the following table compares 
the levels of new budget authority provided in the bill with 
the appropriate allocation under section 302(b) of the Budget 
Act.

                                            [In millions of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                  302(b) allocation             This bill
                                                             ---------------------------------------------------
                                                                 Budget                    Budget
                                                               authority     Outlays     authority     Outlays
----------------------------------------------------------------------------------------------------------------
Discretionary...............................................      $72,535      $78,492      $72,535      $78,492
Mandatory...................................................       67,916       67,726       67,916       67,726
----------------------------------------------------------------------------------------------------------------

                    Five-Year Projection of Outlays

    Pursuant to section 308(a)(1)(B) of the Congressional 
Budget Act of 1974, the following table contains five-year 
projections prepared by the Congressional Budget Office of 
outlays associated with the budget authority provided in the 
accompanying bill:
                                                                Millions
Budget Authority..............................................   $72,535
Outlays:
    2012......................................................    76,415
    2013......................................................     7,414
    2014......................................................     5,475
    2015......................................................     2,175
    2016......................................................     1,546

               Assistance to State and Local Governments

    Pursuant to section 308(a)(1)(C) of the Congressional 
Budget Act of 1974, the amount of financial assistance to State 
and local governments is as follows:
                                                                Millions
Budget Authority..............................................      $178
Fiscal Year 2012 outlays resulting therefrom..................        32

         Statement of General Performance Goals and Objectives

    Pursuant to clause 3(c)(4) of rule XIII of the Rules of the 
House of Representatives, the following is a statement of 
general performance goals and objectives for which this measure 
authorizes funding:
    The Committee on Appropriations considers program 
performance, including a program's success in developing and 
attaining outcome-related goals and objectives, in developing 
funding recommendations.

          Compliance With Rule XIII, Cl. 3(e) (Ramseyer Rule)

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (new matter is 
printed in italic and existing law in which no change is 
proposed is shown in roman):

                      TITLE 38, UNITED STATES CODE




           *       *       *       *       *       *       *
PART IV--GENERAL ADMINISTRATIVE PROVISIONS

           *       *       *       *       *       *       *



CHAPTER 57--RECORDS AND INVESTIGATIONS

           *       *       *       *       *       *       *



                         SUBCHAPTER I--RECORDS


Sec. 5701. Confidential nature of claims

  (a) * * *

           *       *       *       *       *       *       *

  (l)(1) The Secretary shall disclose to a State controlled 
substance monitoring program, including a program under section 
399O of the Public Health Service Act (42 U.S.C. 280g-3), the 
name and address of a veteran or a dependent of a veteran to 
the extent necessary to prevent misuse and diversion of 
prescription medicines.
  (2) In this subsection, the terms ``State'' and ``controlled 
substance'' have the meaning given such terms in section 
399O(m) of the Public Health Service Act (42 U.S.C. 280g-3(m)).

           *       *       *       *       *       *       *


PART V--BOARDS, ADMINISTRATIONS, AND SERVICES

           *       *       *       *       *       *       *


CHAPTER 73--VETERANS HEALTH ADMINISTRATION-ORGANIZATION AND FUNCTIONS

           *       *       *       *       *       *       *


Sec. 7332. Confidentiality of certain medical records

  (a) * * *
  (b)(1) * * *
  (2) Whether or not any patient or subject, with respect to 
whom any given record referred to in subsection (a) is 
maintained, gives written consent, the content of such record 
may be disclosed by the Secretary as follows:
          (A) * * *

           *       *       *       *       *       *       *

          (G)(i) To a State controlled substance monitoring 
        program, including a program under section 399O of the 
        Public Health Service Act (42 U.S.C. 280g-3), to the 
        extent necessary to prevent misuse and diversion of 
        prescription medicines.
          (ii) In this subparagraph, the terms ``State'' and 
        ``controlled substance'' have the meanings given such 
        terms in section 399O(m) of the Public Health Service 
        Act (42 U.S.C. 280g-3(m)).

           *       *       *       *       *       *       *



   Disclosure of Earmarks and Congressionally Directed Spending Items

    Neither the bill nor the report contains any Congressional 
earmarks, limited tax benefits, or limited tariff benefits as 
defined in clause 9 of rule XXI.

                               State List

    The following is a complete listing, by State and country, 
of the Committee's recommendations for military construction 
and family housing projects:



                             MINORITY VIEWS

    The Fiscal Year 2012 Military Construction, Veterans' 
Administration and Related Agencies appropriations bill 
sufficiently funds critical military construction, family 
housing and quality of life improvements for our brave men and 
women in uniform and their families. The Committee fully funded 
the Administration's request for critical military 
construction, which includes the construction/replacement of 
Department of Defense Education Activity schools. A total of 15 
schools, six schools in the United States and nine schools at 
overseas installations will be refurbished with this funding. 
In addition the bill also provides funding for the Medical 
Center Replacement in Germany where a large proportion of 
serious casualties from the Iraq and Afghanistan theaters are 
treated. We are pleased to see that the bill is making this 
important investment.
    This bill also provides adequate funding for VA programs 
such as medical care and the National Cemetery Administration. 
Funding is also included for VA programs to address potential 
hazardous seismic, life safety and infrastructure issues at VA 
facilities to deliver quality care. There is no greater way to 
honor the Veterans who have served our country than to make 
sure that they have the best medical care and facilities with 
which to treat them.
    The Administration's request for our nation's cemeteries 
and battle monuments to honor those soldiers who have made the 
ultimate sacrifice for our nation is also funded.
    Unfortunately, the Committee adopted an amendment to 
eliminate funding to implement Executive Order 13502, issued in 
February 2009, which addresses Project Labor Agreements (PLA). 
The order encourages executive agencies to consider the use of 
project labor agreements in connection with large-scale 
construction projects in order ``to promote economy and 
efficiency in Federal procurement.'' Executive Order 13502 does 
not mandate use of a PLA but simply encourages federal 
officials to consider whether a PLA is the most appropriate 
labor agreement for a particular construction project.
    Importantly, the Executive Order requires any PLA to 
contain requirements aimed at ensuring federal contracts are 
awarded fairly and openly. Among other things, it provides for 
an open competition for all contracts and subcontracts; 
contains guarantees against strikes, lockouts, and similar job 
disruptions; provides binding procedures for resolving labor 
disputes and encourages cooperation on productivity and health 
and safety issues. This important rule benefits both the labor 
force and mangement.
    It is surprising that the Committee adopted an amendment 
that opposes economy in federal procurement, open competition, 
and guarantees against strikes and job disruptions.
    While the Fiscal Year 2012 Military Construction, Veterans' 
Administration and Related Agencies appropriations bill meets 
the needs of our military and veterans' communities for the 
coming year, we continue to oppose the language prohibiting the 
use of funds to encourage economy and efficiency in federal 
procurement.


                                   Norman D. Dicks.
                                   Sanford D. Bishop, Jr.

                                  
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