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105th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 1st Session                                                    105-150
_______________________________________________________________________


 
            MILITARY CONSTRUCTION APPROPRIATIONS BILL, 1998

                                _______
                                

 June 24, 1997.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

_______________________________________________________________________


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

                              R E P O R T

                        [To accompany H.R. 2016]

    The Committee on Appropriations submits the following 
report in explanation of the accompanying bill making 
appropriations for military construction, family housing, and 
base realignments and closures for the Department of Defense 
for the fiscal year ending September 30, 1998.


                                CONTENTS

                                                                   Page
Summary of Committee Recommendation..............................     2
Conformance with Authorization Bill..............................     3
Permanent Party Unaccompanied Personnel Housing..................     3
Child Development Centers........................................     5
Hospital and Medical Facilities..................................     6
Environmental Compliance Projects................................     6
Crumbling Infrastructure.........................................     7
National Foreign Intelligence Program............................     8
Unified Design Guidance..........................................     8
Proposed Financing via Prior Year Savings........................     9
Real Property Maintenance........................................     9
Vision 21........................................................     9
Bold Venture.....................................................    10
Government Performance and Results Act...........................    10
Program, Project and Activity....................................    10
Planning and Budgeting...........................................    11
Military Construction:
    Army.........................................................    11
    Navy.........................................................    14
    Air Force....................................................    16
    Defense-wide.................................................    17
    Department of Defense Military Unaccompanied
      Housing Improvement Fund...................................    19
    Reserve Components...........................................    21
NATO Security Investment Program.................................    24
Family Housing Overview..........................................    25
Family Housing:
    Army.........................................................    30
    Navy.........................................................    31
    Air Force....................................................    32
    Defense-wide.................................................    33
Department of Defense Family Housing Improvement Fund............    34
Homeowners Assistance Fund, Defense..............................    35
Base Realignment and Closure:
    Overview.....................................................    36
    Part I.......................................................    42
    Part II......................................................    42
    Part III.....................................................    43
    Part IV......................................................    44
General Provisions...............................................    44
Changes in Application of Existing Law...........................    46
Compliance with Rule XIII--Clause 3..............................    48
Appropriations Not Authorized by Law.............................    48
Transfer of Funds................................................    49
Rescission of Funds..............................................    49
Constitutional Authority.........................................    49
Comparisons with Budget Resolution...............................    49
Advance Spending Authority.......................................    49
Five-Year Projection of Outlays..................................    49
Financial Assistance.............................................    50
State List.......................................................    50

                  Summary of Committee Recommendation

    The Administration's fiscal year 1998 budget request of 
$8,383,248,000 represents a decrease of $1,410,061,000, or 14 
percent, from the fiscal year 1997 appropriation of 
$9,793,309,000. While there are aspects of the budget request 
that help to solve the long-term infrastructure problems faced 
by the Department of Defense, the Committee has some concerns 
over the request. For example, the Administration has committed 
itself to a serious barracks revitalization program. Yet, the 
request for barracks construction is $109,063,000 below last 
year's appropriation. And, family housing construction and 
operation and maintenance accounts are reduced by $386,036,000. 
The budget request would provide $680,011,000 for family 
housing construction, a reduction of $300,256,000 from current 
levels. Of this amount, $317,665,000 is requested for 
construction of new family housing units, a reduction of 
$188,743,000, or 37 percent, from current spending. And, the 
request for improvements to existing family housing units is 
reduced by $112,579,000, or 26 percent from the current 
program. In addition, the budget request would reduce 
maintenance of family housing units a total of $99,675,000.
    The lack of funding commitment by the Administration's 
proposal is especially of concern due to 62 percent of troop 
housing spaces and 64 percent of family housing units are 
currently unsuitable. The Department of Defense estimates the 
cost of correcting these deficiencies to be roughly 
$40,000,000,000.
    The Committee believes it is imperative to address the 
severe backlog in readiness, revitalization and quality of life 
projects. The Committee has recommended an additional 
$799,752,000 above the Administration's fiscal year 1998 budget 
request to fund the planning and construction of several 
barracks, family housing and operational facilities. Included 
in this additional funding is:

  --$109,370,000 for 10 additional unaccompanied housing 
        projects;
  --$277,657,000 for new construction and improvements to 
        family housing units, benefitting approximately 2,208 
        military families;
  --$21,430,000 for 4 child development centers;
  --$324,350,000 for operational and training facilities for 
        the active components; and,
  --$139,719,000 for operational, training, environmental 
        compliance and safety related activities for the 
        reserve components.

    The total recommended appropriation for fiscal year 1998 is 
$9,183,000,000, a reduction of $610,309,000, or six percent, 
from fiscal year 1997 funding and an increase of $799,752,000 
above the fiscal year 1998 budget request.

                  Conformance with Authorization Bill

    The House National Security Committee has reported the 
National Defense Authorization Act for 1998 (H.R. 1119), which 
contains authorization for the military construction, family 
housing and base realignment and closure accounts included in 
this bill. Because Senate and conference action on the 
authorization had not been completed at the time this bill was 
prepared, the Committee is considering only projects 
recommended for authorization. All projects included in this 
bill are approved subject to authorization.

            Permanent Party Unaccompanied Personnel Housing

    The Department of Defense estimates that 42 percent of the 
enlisted force and 28 percent of the officers are single or 
unaccompanied personnel. Although 30 percent live in private 
off-base housing, the Department has over 405,000 men and women 
living in permanent party unaccompanied personnel housing. 
Approximately one-half of the barracks were built 30 or more 
years ago, with an average age of over 40 years. And, over 
100,000 spaces are still serviced by gang latrines. Of the 
total inventory approximately 62% are considered substandard 
and continuous maintenance is necessary to deal with such 
problems as asbestos, corroded pipes, inadequate ventilation, 
faulty heating and cooling systems, and peeling lead-based 
paint.
    The following chart, compiled by the Department of Defense, 
provides a breakout by Service of the deficit of new 
construction, replacement and renovation:

----------------------------------------------------------------------------------------------------------------
                                                                  New                                           
                                                             construction  Replacement   Renovation     Total   
                                                                deficit      deficit      deficit               
----------------------------------------------------------------------------------------------------------------
Army.......................................................        11,777       37,569       49,014       98,360
Navy.......................................................        25,000        5,500       30,000       60,500
Air Force..................................................        16,800       39,400       16,900       73,100
Marine Corps...............................................        11,005       10,447       33,016       54,468
                                                            ----------------------------------------------------
      Total................................................        64,582       92,916      128,930      286,428
----------------------------------------------------------------------------------------------------------------

    The Department estimates with approximately 238,000 
unaccompanied permanent party personnel housed in barracks with 
open bay, gang latrine, or three-per-room configurations, and 
with the average cost to construct a new ``1 plus 1'' barracks 
space estimated at $60,000, approximately $14,280,000,000 is 
necessary to buy out this deficit. It will take over twenty 
years to implement the ``1 plus 1'' standard and achieve 
desired end states.
    The Committee understands that improving troop housing does 
not lie solely in new construction and renovations. Retiring 
the backlog of maintenance and repair, which is under the 
jurisdiction of the National Security Subcommittee, and an 
adequate funding commitment to prevent future backlogs plays an 
important role in this process. It is necessary to use many 
different approaches to help meet the unaccompanied housing 
need. The challenge is for a sustained overall commitment, at 
funding levels that will reduce the backlog of substandard 
spaces, reduce the housing deficits, and increase the quality 
of living conditions in a reasonable period of time.

                   fiscal year 1998 barracks request

    The Department of Defense has requested $642,701,000 to 
construct or modernize 39 barracks in fiscal year 1998. This is 
a reduction of $109,063,000 from the enacted fiscal year 1997 
appropriation. The Committee strongly supports a steady flow of 
funding to rectify the housing situation and directs the 
Department to maintain current funding levels in its fiscal 
year 1999 budget request.
    The Committee has approved the request of $642,701,000 in 
full. In order to maintain current funding levels and to help 
alleviate the deficit, an additional $109,370,000 is 
recommended. The locations were determined by service 
priorities and all projects are capable of construction during 
fiscal year 1998. The total appropriation for unaccompanied 
housing recommended in this bill is $752,071,000.
    The following troop housing construction projects are 
recommended for fiscal year 1998:

------------------------------------------------------------------------
                Location                      Request       Recommended 
------------------------------------------------------------------------
Army:                                                                   
    Fort Huachuca, Arizona..............      20,000,000      20,000,000
    Fort Gordon, Georgia................      22,000,000      22,000,000
    Fort Stewart/Hunter Army Air Field,                                 
     Georgia............................               0      17,500,000
    Schofield Barracks, Hawaii..........      44,000,000      44,000,000
    Fort Riley, Kansas..................      18,500,000      18,500,000
    Fort Campbell, Kentucky.............      37,000,000      37,000,000
    Fort Knox, Kentucky.................      22,000,000      22,000,000
    Fort Bragg, North Carolina..........               0       9,800,000
    Fort Sill, Oklahoma.................               0       8,000,000
    Fort Sam Houston, Texas.............      16,000,000      16,000,000
    Fort Myer, Virginia.................       8,200,000       8,200,000
    Fort Lewis, Washington..............      31,000,000      31,000,000
    Ansbach, Germany....................      22,000,000      22,000,000
    Heidelberg, Germany.................       8,800,000       8,800,000
    Kaiserslautern, Germany.............       6,000,000       6,000,000
    Mannheim, Germany...................       6,200,000       6,200,000
    Camp Casey, Korea...................       5,100,000       5,100,000
    Camp Castle, Korea..................       8,400,000       8,400,000
    Camp Humphreys, Korea...............      32,000,000      32,000,000
    Camp Red Cloud, Korea...............      23,600,000      23,600,000
    Camp Stanley, Korea.................       7,000,000       7,000,000
                                         -------------------------------
      Subtotal, Army....................     337,800,000     373,100,000
                                         ===============================
Navy/Naval Reserve:                                                     
    Yuma MCAS, Arizona..................               0      12,250,000
    Camp Pendleton MCB, California......      12,000,000      12,000,000
    Camp Pendleton MCB, California......               0      16,120,000
    Kaneohe Bay MCAS, Hawaii............      19,000,000      19,000,000
    Washington NAF, District of Columbia       4,640,000       4,640,000
    Great Lakes NH, Illinois............       5,200,000       5,200,000
    Great Lakes NTC, Illinois...........      26,690,000      26,690,000
    New Orleans NAS, Louisiana..........               0       4,520,000
    Meridian NAS, Mississippi...........               0       7,050,000
    New River MCAS, North Carolina......      10,600,000      10,600,000
    Beaufort MCAS, South Carolina.......               0      15,330,000
    Dam Neck FCTC, Virginia.............       7,000,000       7,000,000
    Oceana NAS, Virginia................      20,900,000      20,900,000
    Administrative Support Unit, Bahrain                                
     Island.............................      25,000,000      25,000,000
    Sigonella NAS, Italy................      21,440,000      21,440,000
    Roosevelt Roads NS, Puerto Rico.....      24,100,000      24,100,000
                                         -------------------------------
      Subtotal, Navy....................     176,570,000     231,840,000
                                         ===============================
Air Force:                                                              
    Clear AFS, Alaska...................      20,285,000      20,285,000
    Peterson AFB, Colorado..............       4,081,000       4,081,000
    Eglin AFB Auxillary Field 9, Florida       6,470,000       6,470,000
    Moody AFB, Georgia..................               0       9,100,000
    Mountain Home AFB, Idaho............       8,959,000       8,959,000
    Keesler AFB, Mississippi............      30,855,000      30,855,000
    Pope AFB, North Carolina............       8,356,000       8,356,000
    Pope AFB, North Carolina............               0       9,700,000
    Spangdahlem AB, Germany.............      18,500,000      18,500,000
    Kunsan AB, Korea....................       8,325,000       8,325,000
    Osan AB, Korea......................      11,100,000      11,100,000
    RAF Lakenheath, UK..................      11,400,000      11,400,000
                                         -------------------------------
      Subtotal, Air Force...............     128,331,000     147,131,000
                                         ===============================
      Total.............................     642,701,000     752,071,000
------------------------------------------------------------------------

                       Child Development Centers

    The Committee has recommended an additional $21,430,000 
above the budget estimate of $6,500,000 for a total 
appropriation of $27,930,000 for new construction, or 
improvements, for child development centers. The Committee 
recognizes the increased importance of these centers due to the 
rising number of single military parents, dual military couples 
and military personnel with a civilian employed spouse.
    The following child development center projects are 
provided for fiscal year 1998:

------------------------------------------------------------------------
                Location                      Request       Recommended 
------------------------------------------------------------------------
Navy:                                                                   
    Camp Pendleton MCB, California......               0       4,480,000
    Bremerton Puget Sound NS, Washington       4,400,000       4,400,000
                                         -------------------------------
      Subtotal..........................       4,400,000       8,880,000
                                         ===============================
Air Force:                                                              
    MacDill AFB, Florida................               0       3,350,000
    McConnell AFB, Kansas...............               0       5,000,000
    Wright-Patterson AFB, Ohio..........               0       8,600,000
                                         -------------------------------
      Subtotal..........................               0      16,950,000
                                         ===============================
Defense Logistics Agency: Defense                                       
 General Supply Center, Virginia........       2,100,000       2,100,000
                                         -------------------------------
      Subtotal..........................       2,100,000       2,100,000
                                         ===============================
      Total.............................       6,500,000      27,930,000
------------------------------------------------------------------------

                    Hospital and Medical Facilities

    The budget request includes $140,875,000 for 15 projects 
and for unspecified minor construction to provide hospital and 
medical facilities, including both treatment facilities and 
medical research and development facilities. The Committee 
recommends full funding for the requested items, and one 
project in addition to those requested. The following hospital 
and medical projects are provided for fiscal year 1998:

----------------------------------------------------------------------------------------------------------------
                    Location                               Project title              Request       Recommended 
----------------------------------------------------------------------------------------------------------------
California-San Diego NS.........................  Environmental Preventive Med         2,100,000       2,100,000
                                                   Unit Add/Alter.                                              
Georgia-Robins AFB..............................  Ambulatory Health Care Center       19,000,000      19,000,000
                                                   Add/Alter.                                                   
Kentucky-Fort Campbell..........................  Consolidated Troop Medical/         13,600,000      13,600,000
                                                   Dental Clinic.                                               
Maryland-Forest Glen (WRAIR)....................  Army Institute of Research,         20,000,000      20,000,000
                                                   Phase V.                                                     
Maryland-Fort Detrick...........................  Health/Dental Clinic..........       4,650,000       4,650,000
New Jersey-McGuire AFB..........................  Ambulatory Health Care Center       35,217,000      35,217,000
                                                   Replacement.                                                 
New Mexico-Holloman AFB.........................  Dental Clinic Replacement.....       3,000,000       3,000,000
Ohio-Wright-Patterson AFB.......................  Composite Medical Facility           2,750,000       2,750,000
                                                   Alteration.                                                  
Texas-Lackland AFB..............................  Blood Donor Center............       3,000,000       3,000,000
Utah-Hill AFB...................................  Clinic Addition...............       3,100,000       3,100,000
Virginia-Quantico MCB...........................  Medical/Dental Clinic               19,000,000      19,000,000
                                                   Replacement.                                                 
Washington-Everett NS...........................  Medical/Dental Clinic.........       7,500,000       7,500,000
Washington-Fort Lewis...........................  Troop Medical Clinic..........               0       5,000,000
Worldwide-Various Locations.....................  Unspecified Minor Construction       7,058,000       7,958,000
                                                                                 -------------------------------
      Total.....................................  ..............................  \1\ 140,875,00  \1\ 145,875,00
                                                                                               0               0
----------------------------------------------------------------------------------------------------------------
\1\ Excludes proposed prior year financing, as follows:                                                         
Oklahoma-Tinker AFB, Occupational Health Clinic Replacement: +3,700,000.                                        
Guam-Andersen AFB, Aeromedical Clinic; +6,500,000.                                                              
California-McClellan AFB (formerly Mather, AFB), Life Safety/Seismic/Utility Upgrade: -10,280,000. \2\          
\2\ No longer required, Hospital will close by 2001 (BRAC IV).                                                  

                   Environmental Compliance Projects

    The total budget request and appropriation for 24 projects 
needed to meet environmental compliance is $103,581,000. The 
Federal Facilities Compliance Act requires all federal 
facilities to meet both federal and State standards. These 
projects are considered Class I violations and are out of 
compliance; have received an enforcement action from the 
Environmental Protection Agency, the State, or local authority; 
and/or a compliance agreement has been signed or consent order 
received. Environmental projects that are Class I violations 
are required to be funded, and therefore are placed at the top 
of the priority list.
    Following is a listing of all environmental compliance 
projects funded in this bill:

------------------------------------------------------------------------
           Installation                 Project title       Recommended 
------------------------------------------------------------------------
Army:                                                                   
    Fort A.P. Hill, VA............  Central Vehicle Wash       5,400,000
                                     Facility.                          
    Fort Lewis, WA................  Tank Trail Erosion         2,000,000
                                     Mitigation--Yakima.                
Navy:                                                                   
    MCAS Camp Pendleton, CA.......  Emergency Spill            2,840,000
                                     Control.                           
    NS Pearl Harbor, HI...........  Oily Waste                25,000,000
                                     Collection                         
                                     Treatment Facility.                
    NSY Portsmouth, VA............  Oily Waste                 9,500,000
                                     Collection System.                 
Air Force:                                                              
    Indian Mountain, AK...........  Upgrade POL System..       1,991,000
    Edwards AFB, CA...............  Add/Alter Sewer Line       1,394,000
    Edwards AFB, CA...............  Upgrade Wastewater         1,493,000
                                     Treatment Plant.                   
    MacDill AFB, FL...............  Remediate Small Arms       1,543,000
                                     Range.                             
    Arnold AFB, TN................  Wastewater Treatment      10,750,000
                                     Facilities.                        
    Aviano AB, Italy..............  Wastewater Disposal        7,900,000
                                     System.                            
    Kunsan AB, Korea..............  Fire Training              2,000,000
                                     Facility.                          
    Lajes Field, Portugal.........  Water Treatment            4,800,000
                                     Plant.                             
Air Force Reserve:                                                      
    Westover ARB, MA..............  Fire Training              1,800,000
                                     Facility.                          
    Minneapolis/St. Paul IAP, MN..  Add/Alter Corrosion        1,550,000
                                     Control.                           
Air National Guard:                                                     
    Minneapolis/St. Paul IAP, MN..  Vehicle Waste                360,000
                                     Facility.                          
    Gulfport IAP, MS..............  Regional Fire                900,000
                                     Training Facility.                 
    Charlotte/Douglas IAP, NC.....  Alter Fuel Cell/           2,550,000
                                     Corrosion Control                  
                                     Facility.                          
    Schenectady County Airport, NY  Fuel Cell/Corrosion        5,700,000
                                     Control Facility.                  
    Klamath Falls IAP, OR.........  Vehicle Refueling            520,000
                                     Shop & Paint Bay.                  
    Quonset State Airport, RI.....  Add/Alter Corrosion          355,000
                                     Control Facility.                  
    McEntire ANGB, SC.............  Add/Alter Fuel &           1,500,000
                                     Corrosion Control                  
                                     Facility.                          
    Salt Lake City IAP, UT........  Vehicle Washing &            460,000
                                     Corrosion Control                  
                                     Facility.                          
Defense Logistics Agency:                                               
    Various Locations.............  Conforming Storage        11,275,000
                                     Facilities.                        
                                                         ---------------
      Total.......................  ....................     103,581,000
------------------------------------------------------------------------

                        Crumbling Infrastructure

    At their core, military installations are very similar to 
cities. They rely upon transportation networks such as 
railroads, vehicular roads, air operations, and seaport 
facilities. They cannot function without communications 
systems--telephone lines (both open and secure), and satellite 
uplinks and downlinks. They require more mundane but essential 
day-to-day support--water and sewer systems, electrical 
generation and distribution systems, and climate control.
    The Committee is concerned over indications that military 
construction projects to provide such infrastructure support do 
not receive sufficient priority. It appears that there is great 
interest in improving the physical plant of the Department of 
Defense, with too little attention paid to the supporting 
infrastructure. The Committee is aware of instances where new 
barracks facilities are connected to deficient water and sewer 
systems.
    Reports are beginning to surface regarding aging 
installations with crumbling supporting facilities. This 
deteriorating base infrastructure has serious implications for 
the ability of the military to meet mission requirements.
    The Department has recognized this need in the case of the 
Pentagon building itself, and has embarked on a multi-year 
effort to renovate the facility and its infrastructure. The 
Committee supports this initiative, but notes that most 
military installations pre-date the Pentagon building, and 
suffer similar deficiencies or worse.
    The Committee encourages the Department and the Services to 
assess the need for installation-wide infrastructure projects 
and to program and budget for this work. In addition, the 
Committee is aware that the Department and the Services are 
working to identify those on-base utility systems which can be 
cost-effectively privatized. It is the Committee's view that 
the Department should continue to study the feasibility of 
privatizing utility systems in an effort to utilize private 
capital and expertise to help solve the installation-wide 
infrastructure problem in a more reasonable time frame.

                 National Foreign Intelligence Program

    The Committee is concerned about past questionable use of 
operation and maintenance account funds for leasing, as well as 
the use of research, development, test, and evaluation funds, 
for projects for which military construction would be the more 
appropriate funding source. The Committee supports on-going 
efforts within the Department to assure that construction 
requirements of the intelligence agencies and organizations 
funded under the National Foreign Intelligence Program are 
funded within the military construction accounts.

                        Unified Design Guidance

    The Committee is concerned that each Military Department 
expends substantial resources to develop, maintain, and 
distribute design criteria, guide specifications, cost 
engineering systems, and other design software programs. 
Despite many attempts to bring about the efficiencies and cost 
avoidance of uniformity, little progress is evident. It is the 
Committee's view that the majority of military construction is 
not unique to a single Military Department, and is also not 
unique to the Department of Defense. Propagation of redundant 
programs is costing taxpayers excess design fees, and may also 
result in lower quality design criteria and construction.
    In order to ensure that more progress is made in this area, 
the Committee directs the Department to develop a unified 
design guidance program, and to budget for such program 
centrally. The Committee directs that the fiscal year 1999 
budget request will consolidate funding for this program within 
the Military Construction, Defense-wide account for planning 
and design, with offsetting reductions in the planning and 
design requests for the Military Departments. The explanatory 
materials justifying this planning and design budget request 
will present a detailed plan of work toward the establishment 
of a single system for design criteria distribution, a single 
cost engineering system, a single guide specification, and a 
single system of design manuals.

   Proposed Financing of Current Year Programs Via Prior Year Savings

    The budget request for fiscal year 1998 proposed partial 
financing of current year programs via prior year savings, as 
follows:

                                                                        
                            Account                          Amount     
                                                                        
Military Construction, Air Force......................       $23,858,000
Military Construction, Army Reserve...................         7,900,000
Family Housing, Navy..................................         8,463,000
                                                                        

    The Committee objects strongly to this method of financing. 
If program execution has resulted in identifiable prior year 
savings within individual projects, the correct financing 
method is to detail such savings and to request rescissions of 
funds by account and by fiscal year. The Committee recommends 
denying the proposed method of financing, and directs the 
Department to follow conventional rescission procedure in 
future budget submissions.

                       Real Property Maintenance

    In future budget submissions, the Department is directed to 
continue to provide the real property maintenance backlog at 
all installations for which there is a requested construction 
project. This information is to be provided on Form 1390. In 
addition, for all troop housing requests, the Form 1391 is to 
continue to show all real property maintenance conducted in the 
past two years and all future requirements for unaccompanied 
housing at that installation.

            Real Property Maintenance: Reporting Requirement

    The Committee supports the action taken in section 2802 of 
the House reported National Defense Authorization Act for 
fiscal year 1998 (H.R. 1119) with regard to limitations on the 
use of operation and maintenance funds for facility repair 
projects. The Service Secretary concerned is directed to notify 
the National Security Subcommittee and the Military 
Construction Subcommittee of the Appropriations Committee 
before carrying out any repair project with an estimated cost 
in excess of $10,000,000. Further, the Committee will expect 
that the general rules for repairing a facility under Operation 
and Maintenance account funding will be as follows:
          Components of the facility may be repaired by 
        replacement, and such replacement can be up to current 
        standards or codes.
          Interior rearrangements and restorations may be 
        included as repair, but additions, new facilities, and 
        functional conversions must be performed as military 
        construction projects.
          Such projects may be done concurrent with repair 
        projects, as long as the final conjunctively funded 
        project is a complete and usable facility.

                               Vision 21

    The Committee notes that the Department has embarked upon 
an initiative known as ``Vision 21'' to consolidate its testing 
and evaluation centers and laboratories. By November of 1998, 
this initiative will provide the Secretary of Defense with a 5-
year plan for the consolidation and restructuring of all 
defense testing and evaluation centers and laboratories in 
order to achieve the most effective intra-Service and cross-
Service organizational arrangements. The Committee will expect 
the Secretary of Defense to report findings and recommendations 
upon completion of Vision 21.
    The Committee directs the Secretary of Defense to certify 
that any new starts are required prior to the obligation of 
funds.

                              Bold Venture

    ``Bold Venture'' is the Department's program to move 
Military Entrance Processing Stations (MEPS) currently housed 
in private/commercial buildings to military installations in 
order to reduce the Department's office space rent expenditures 
as well as the costs associated with the housing of recruits in 
hotels rather than in barracks. The Committee directs the 
Department to report on the current plan of operations for this 
program, including: costs and savings to date, estimated 
military construction requirements, and the timetable for 
submission of military construction appropriations requests. 
This report is to be submitted to the Committee by January 15, 
1998.

                 Government Performance and Results Act

    The Committee considers the full and effective 
implementation of the Government Performance and Results Act, 
Public Law 103-62, to be a priority for all agencies of 
government.
    Starting with fiscal year 1999, the Results Act requires 
each agency to ``prepare an annual performance plan covering 
each program activity set forth in the budget of such agency''. 
Specifically, for each program activity the agency is required 
to ``establish performance goals to define the level of 
performance to be achieved by a program activity'' and 
``performance indicators to be used in assessing the relevant 
outputs, service levels, and outcomes of each program 
activity''.
    The Committee takes this requirement of the Results Act 
very seriously and plans to carefully examine agency 
performance goals and measures during the appropriations 
process. As a result, starting with the fiscal year 1999 
appropriations cycle, the Committee will consider agency 
progress in articulating clear, definitive, and results-
oriented (outcome) goals and measures as it reviews requests 
for appropriations.
    The Committee suggests agencies examine their program 
activities in light of their strategic goals to determine 
whether any changes or realignments would facilitate a more 
accurate and informed presentation of budgetary information. 
Agencies are encouraged to consult with the Committee as they 
consider such revisions prior to finalizing any requests 
pursuant to 31 U.S.C. 1104. The Committee will consider any 
requests with a view toward ensuring that fiscal year 1999 and 
subsequent budget submissions display amounts requested against 
program activity structures for which annual performance goals 
and measures have been established.

                     Program, Project and Activity

    For the purposes of the Balanced Budget and Emergency 
Deficit Control Act of 1985 (Public Law 99-177) as amended by 
the Balanced Budget and Emergency Deficit Control Reaffirmation 
Act of 1987, (Public Law 100-119), the term ``Program, Project 
and Activity'' will continue to be defined as the appropriation 
account.

                         Planning and Budgeting

    The Committee relies on officials in the Department of 
Defense to provide the most honest assessment of competing 
facilities needs, based on the most informed judgment of 
military requirements. The Committee understands and supports 
the process the Department employs to identify requirements, to 
prioritize those requirements, and to live within budgetary 
constraints. It is the view of the Committee that the best way 
to accomplish this task is to have a disciplined long-range 
planning process, with annual adjustments to meet changing 
circumstances. The Committee supports efforts within the 
Services and within the Under Secretary of Defense 
(Comptroller) to formulate and present a coherent Future Years 
Defense Plan at the project level of detail, and encourages 
efforts to reconcile annual adjustments in this plan.

                      Military Construction, Army

                                                                        
                                                                        
                                                                        
Fiscal year 1997:                                                       
    Appropriation.....................................      $565,688,000
    Rescission........................................        -3,028,000
        Net...........................................       562,660,000
Fiscal year 1998 estimate.............................       595,277,000
Committee recommendation in the bill..................       721,027,000
Comparison with:                                                        
    Fiscal year 1997 net appropriation................      +158,367,000
    Fiscal year 1998 estimate.........................      +125,750,000
                                                                        
                                                                        

    The Committee recommends a total of $721,027,000 for 
Military Construction, Army for fiscal year 1998. This is an 
increase of $125,750,000 above the budget request for fiscal 
year 1998, and an increase of $158,367,000 above the net 
appropriation for 1997.

  alabama--redstone arsenal: missile software engineering center annex

    The Missile Software Engineering Directorate at Redstone 
Arsenal is facing a serious overcrowding situation compromising 
effectiveness and efficiency. Currently 650 personnel are 
employed in inadequate space. There is an anticipated growth 
rate of 15% per year over the next five years doubling the 
current staff to over 1,300 personnel by the year 2002. The 
Army has initiated design for a Missile Software Engineer Annex 
and the Committee supports this effort. The Army is encouraged 
to complete the design and incorporate this project in the 
fiscal year 1999 budget request.

   arkansas--pine bluff arsenal: ammunition demilitarization support 
                                facility

    The Committee is concerned that the Army has failed to 
execute a contract to provide an ammunition demilitarization 
support facility as required for the conduct of the chemical 
demilitarization program at Pine Bluff Arsenal, Arkansas. Funds 
for such a facility were budgeted and appropriated in fiscal 
year 1993, but will expire on September 30, 1997. The chemical 
demilitarization program is discussed in detail later in this 
report, under the Military Construction, Defense-wide account, 
under which account construction projects are now funded. The 
Committee recommends re-appropriating $15,000,000 for this 
project, under the Military Construction, Army account, in 
order to remain consistent with extension of authorization for 
the fiscal year 1993 project.

                 California--Barstow-Daggett: Heliport

    The Committee strongly supports the Army's plan to build a 
heliport for the National Training Center at Fort Irwin, 
California, to be located at Barstow-Daggett, California. Funds 
to initiate this project are available from prior year 
unobligated appropriations. The Committee notes that section 
2105 of the Defense Authorization Act of 1998 (H.R. 1119) 
corrects the authorized uses of funds appropriated for fiscal 
years 1995 and 1996 for construction of an air field at 
Barstow-Daggett, in order to permit the use of such amounts for 
the construction of a heliport facility at the same location 
for maintenance and repair of equipment assigned to the 
National Training Center and Fort Irwin. The Committee concurs 
with this correction, and directs that fiscal year 1994 
planning and design funds in the amount of $2,400,000, as well 
as fiscal year 1995 funds in the amount of $10,000,000 and 
fiscal year 1996 funds in the amount of $10,000,000 shall be 
available for construction of this heliport in lieu of the air 
field. No reprogramming request is required to accomplish the 
execution of this project.
    The Committee directs the Army to expedite the execution of 
this project.

      california--fort irwin: heavy equipment maintenance building

    Fort Irwin is expecting to receive the 3rd Platoon 2nd 
Heavy Equipment Transport (HET) Company in October 1997. The 
HET Platoon will require a vehicle maintenance facility to 
support 26 heavy equipment transports and 70 additional 
personnel. Fort Irwin currently does not have any other 
maintenance facilities that can be used by the platoon. The 
Army is encouraged to fund these facilities under minor 
construction.

          kansas--fort leavenworth: u.s. disciplinary barracks

    The Committee recommends $20,000,000 to initiate 
construction of the U.S. Disciplinary Barracks at Fort 
Leavenworth, rather than $63,000,000 as requested for full 
funding for this project. The estimated start date for 
construction of this project is December of 1997, and the 
Army's estimate of the amount of construction that can be put 
in place during fiscal year 1998 is $20,000,000. Therefore, 
full funding of the project in a single fiscal year is not 
required.

     virginia--charlottesville: national ground intelligence center

    The Committee recommends a technical correction to the 
method of funding $3,100,000 for planning and design of the 
National Ground Intelligence Center in Charlottesville, 
Virginia. The budget request contained an error in displaying 
this item as a line entry for a construction project, rather 
than as one component within the lump sum requested for 
planning and design. The Committee recommends not funding the 
erroneous line entry, and directs the Secretary of the Army to 
apply $3,100,000 to conduct planning and design activities for 
the construction of the National Ground Intelligence Center 
within the additional amount provided for planning and design.

                virginia--twin bridges site: army museum

    The Committee is aware that the Army is continuing to 
pursue the establishment of a National Army Museum, using non-
appropriated funds. The Committee directs the Secretary of the 
Army to report the status of efforts to acquire the Twin 
Bridges site, as well as efforts to construct a National Army 
Museum at this or any other site. This report is to be 
submitted to the Committee by December 15, 1997.

                         european construction

    The Committee has recommended $80,300,000 for five barracks 
projects and three family housing improvement projects in 
Europe. The Committee commends the Army for beginning to 
program and budget for the necessary projects in fiscal year 
1998 to begin to address the deficiency of quality of life 
facilities in Europe, and will expect this commitment to 
continue.

                            Southern Command

    The Panama Canal Treaty of 1977 requires the withdrawal of 
United States military forces from Panama by December 31, 1999, 
including the relocation of the Southern Command (SOUTHCOM). 
The Army plans to relocate SOUTHCOM headquarters to the Miami, 
Florida area. This entire SOUTHCOM headquarters relocation will 
be accomplished by lease, with no military construction 
appropriations requirement.
    The Committee directs the Secretary of the Army to prepare 
a comprehensive report of all costs related to the relocation 
of the Southern Command to Miami, Florida. This report is to 
include the total requirement and cost for all leased land, 
leased administrative space, leased housing (both unaccompanied 
housing and family housing), and morale welfare and recreation 
facilities (including a proposed commissary). The report is to 
include plans for providing leased space for foreign national 
liaison officers. The report is to identify separately one-time 
costs and recurring annual costs. The report is to be submitted 
to the Committee not later than September 8, 1997.
    In addition, the Committee directs the Army to continue to 
report semiannually on the status of negotiations with Panama 
toward a base rights agreement and a Status of Forces Agreement 
that will take effect on January 1, 2000.

                                 Korea

    The Army shows a total facilities deficit of $5,300,000,000 
in Korea, of which $1,100,000,000 is for barracks. Of this 
barracks deficit, $625,000,000 is for barracks construction and 
the remaining $485,000,000 is for repair and maintenance of 
existing barracks. The Committee directs the Army to report on 
this deficit in some detail, together with the plan for 
correcting this deficiency through a combination of military 
construction funding, host nation funding via the Combined 
Defense Improvement Program (CDIP) and the Republic of Korea 
Funded Construction (ROKFC) program, and other approaches. This 
report is to be submitted by January 1, 1998.

                      Military Construction, Navy

                                                                        
                                                                        
                                                                        
Fiscal year 1997:                                                       
    Appropriation.....................................      $707,094,000
    Rescission........................................       -19,780,000
        Net...........................................       687,314,000
Fiscal year 1998 estimate.............................       540,106,000
Committee recommendation in the bill..................       685,306,000
Comparison with:                                                        
    Fiscal year 1997 net appropriation................        -2,008,000
    Fiscal year 1998 estimate.........................      +145,200,000
                                                                        

    The Committee recommends a net total of $685,306,000 for 
Military Construction, Navy for fiscal year 1998. This is an 
increase of $145,200,000 above the budget request for fiscal 
year 1998, and a decrease of $2,008,000 below the net 
appropriation for fiscal year 1997.

 arizona--yuma marine corps air station: land acquisition for ordnance 
                                storage

    The Committee is concerned that a waiver of explosives 
safety criteria is required for ordnance storage at Yuma Marine 
Corps Air Station because the explosive safety quantity 
distance arcs extend beyond station boundaries onto private 
property. Real estate easements limiting land usage to 
agriculture are required from the adjacent private property 
owners in order to meet mission ordnance storage requirements. 
The Committee directs the Marine Corps to address this 
situation by including the required land acquisition project 
within the budget submission for fiscal year 1999.

    california--naval ordnance center, pacific division, fallbrook 
                              detatchment

    The Committee is concerned that the Navy has taken more 
than twenty years to dispose of the approximately 34,100 
delivery canisters filled with napalm currently stored at the 
Naval Ordnance Center in Fallbrook, California. The Committee 
is aware that many of these canisters have been found to be 
leaking and pose a possible threat to the surrounding 
community. In March of 1996, the Navy announced an action 
memorandum for the removal of the napalm by the end of 1999. 
The Committee directs the Navy to make every effort possible to 
speed this process and to dispose of these canisters of napalm 
prior to the end of 1999. The Committee directs the Navy to 
report on its progress and its plan of work for the completion 
of this effort. This report is to be submitted to the Committee 
not later than September 8, 1997.

  california--twentynine palms marine corps air-ground combat center: 
                             traffic safety

    Last year a young Marine was killed as he rode his bicycle 
to work at the Twentynine Palms Marine Corps Air-Ground Combat 
Center. The Committee directs the Marine Corps to investigate 
possible improvements in the safety of bicycle traffic to and 
from the Center, to work with the City of Twentynine Palms 
toward providing a bicycle path for commuters to the Center, 
and to report to the Committee by January 1, 1998 on these 
efforts to improve traffic safety.

         north carolina--cherry point marine corps air station

    The 1993 Base Realignment and Closure Commission required 
the relocation of F/A-18 aircraft from Cecil Field Naval Air 
Station to Cherry Point Marine Corps Air Station. The 1995 
Commission changed the receiving site to Oceana Naval Air 
Station. The Committee understands that environmental impact 
considerations may preclude stationing at Oceana. The Committee 
directs the Navy to report by September 15, 1997 regarding the 
current status of the relocation from Cecil Field, and urges 
the Navy to reconsider Cherry Point as an option for the 
receiving site if stationing at Oceana is not feasible.

  pennsylvania--philadelphia naval shipyard: casting pit modernization

    The Committee directs the Navy to include the casting pit 
modernization project at the Philadelphia Naval Shipyard within 
the budget submission for fiscal year 1999.

               Puerto Rico--Roosevelt Roads Naval Station

    More than 40 years ago, the Navy acquired land abutting 
Roosevelt Roads Naval Station from the municipality of Ceiba, 
Puerto Rico. The Committee is concerned about reports that this 
land has never been utilized, and is aware of proposals by 
Ceiba to utilize this unused land. The Committee directs the 
Navy to report by September 8, 1997 on the Navy's plans for 
taking appropriate cooperative actions for land utilization, 
including but not limited to agreements for increased access to 
beaches and to potable water supplies.

                       Child Development Centers

    Testimony before the Committee indicates that the Navy 
planning system has validated a prioritized list of twenty 
child development center construction projects, at a total cost 
of $53,456,000. The Committee directs the Navy to submit the 
appropriate budget request for fiscal year 1999 in order to 
meet the Department of Defense goal of providing for 65 percent 
of the child care requirement at the earliest possible date. In 
particular, the Navy is directed to include the child 
development center at the New London, Connecticut Naval 
Submarine Base in the budget request for fiscal year 1999.
    The Committee is aware of the Navy's on-going efforts to 
privatize child development centers in fleet concentration 
areas in order to ``buy down'' the child care requirement 
through civilian accredited child development centers. Under 
these arrangements, the service member will pay the same rate 
as they would pay at an on-base child development center, and 
the government would pay the contractor any difference in total 
cost. Criteria for civilian centers to participate in this 
program is national accreditation. The Navy is also conducting 
an A-76 Commercial Activities Study in the San Diego area in 
order to write a performance work statement, develop the 
government's most efficient organization on a regional basis, 
and determine if the private sector can effectively compete and 
meet the requirement at equal or better quality and 
availability, for equal or less cost to the government. The 
Committee supports and encourages these efforts to privatize 
child care, and directs the Navy to report to the Committee by 
September 8, 1997 on the current status and future plan of work 
in this area.

                      Pollution Abatement Projects

    The Navy is directed to continue to provide individual 1391 
budget justification documents for each future pollution 
abatement project.

                    Military Construction, Air Force

                                                                        
                                                                        
                                                                        
Fiscal year 1997:                                                       
    Appropriation.....................................      $754,064,000
    Rescission........................................        -5,100,000
        Net...........................................       748,964,000
Fiscal year 1998 estimate.............................       495,782,000
Committee recommendation in the bill..................       662,305,000
Comparison with:                                                        
    Fiscal year 1997 net appropriation................       -86,659,000
    Fiscal year 1998 estimate.........................      +166,523,000
                                                                        

    The Committee recommends a total of $662,305,000 for 
Military Construction, Air Force for fiscal year 1998. This is 
an increase of $166,523,000 above the budget request for fiscal 
year 1998, and a decrease of $86,659,000 below the net 
appropriation for fiscal year 1997.

              arizona--Davis-Monthan AFB: Runway Extension

    The Committee directs the Secretary of the Air Force to 
report on plans to extend the runway at Davis-Monthan Air Force 
Base. This report should: address the timetable for city, 
county, and state government actions to accommodate this 
project; estimate when local and state governments will have 
the necessary land purchased, cleared, and made environmentally 
acceptable; and detail efforts made by the Air Force to 
coordinate the required military construction funding request 
with the earliest availability of the necessary land. This 
report is to be submitted to the Committee not later than 
September 15, 1997.

        washington--mcchord afb: c-17 engine test cell facility

    The Committee recommends no funding for the budgeted 
$3,185,000 project to provide a C-17 engine test cell facility 
at McChord AFB. This project is no longer required due to the 
consolidation of C-17 engine maintenance functions at 
Charleston AFB.

                  Military Construction, Defense-wide

                                                                        
                                                                        
                                                                        
Fiscal year 1997:                                                       
    Appropriation.....................................      $763,922,000
    Rescission........................................       -51,000,000
        Net...........................................       712,922,000
Fiscal year 1998 estimate.............................       673,633,000
Committee recommendation in the bill..................       613,333,000
Comparison with:                                                        
    Fiscal year 1997 net appropriation................       -99,589,000
    Fiscal year 1998 estimate.........................       -60,300,000
                                                                        

    The Committee recommends a total of $613,333,000 for 
Military Construction, Defense-wide for fiscal year 1998. This 
is a decrease of $60,300,000 below the budget request for 
fiscal year 1998 and a decrease of $99,589,000 below the net 
appropriation for fiscal year 1997.

               Chemical Weapons Demilitarization Program

    The budget request includes a total of $120,527,000 for the 
following funding increments for the chemical weapons 
demilitarization program for fiscal year 1998:

                                                                        
                                                                        
                                                                        
Alabama:                                                                
    Anniston:                                                           
        Ammunition demilitarization facility..........        $9,900,000
Arkansas:                                                               
    Pine Bluff:                                                         
        Ammunition demilitarization facility..........        44,000,000
Oregon:                                                                 
    Umatilla:                                                           
        Ammunition demilitarization facility..........        57,427,000
Unspecified Worldwide Locations:                                        
    Planning and Design...............................         9,200,000
                                                       -----------------
        Total.........................................       120,527,000
                                                                        

    The following chart displays the scope of the military 
construction investment in the overall chemical 
demilitarization program:

                          CHEMICAL DEMILITARIZATION PROGRAM MILITARY CONSTRUCTION COSTS                         
                                   [Then-year dollars in millions/fiscal year]                                  
----------------------------------------------------------------------------------------------------------------
                                                                                                          Total 
                       Project                        1996 &   1997    1998    1999    2000-    Total     est.  
                                                       Prior                           2003    funded     cost  
----------------------------------------------------------------------------------------------------------------
Johnston Atoll......................................    50.0  ......  ......  ......  ......      50.0      50.0
Chemical Demil Training Facility....................    16.1  ......  ......  ......  ......      16.1      16.1
Tooele Facility.....................................   198.0  ......  ......  ......  ......     198.0     198.0
Anniston Facility...................................   150.0  ......     9.9  ......  ......     159.9     159.9
    Depot Spt.......................................    14.3  ......  ......  ......  ......      14.3      14.3
Umatilla Facility...................................    12.0    64.0    57.4    52.0  ......     185.4     186.7
    Depot Spt.......................................    11.1  ......  ......  ......  ......      11.1      11.1
Pine Bluff Facility.................................     3.0    46.0    44.0    41.0  ......     134.0     134.0
    Depot Spt.......................................    15.0  ......  ......  ......  ......      15.0      15.0
Pueblo Facility \1\.................................  ......  ......  ......    12.0    54.0      66.0     197.0
    Depot Spt.......................................     6.3  ......  ......  ......  ......       6.3       6.3
Blue Grass Facility \1\.............................  ......  ......  ......    11.0    52.0      63.0     189.0
    Depot Spt.......................................  ......  ......  ......    11.2  ......      11.2      11.2
Aberdeen Facility \2\...............................  ......  ......  ......  ......   133.5     133.5     137.0
    Depot Spt.......................................  ......  ......  ......  ......     8.7       8.7       8.7
Newport Facility \2\................................  ......  ......  ......  ......   112.7     112.7     125.9
    Depot Spt.......................................  ......  ......  ......  ......     2.0       2.0       2.0
Planning and Design.................................    88.7     4.1     9.2     4.4     2.7     109.1     109.1
                                                     -----------------------------------------------------------
      Total Milcon..................................   564.5   114.1   120.5   131.6   365.6   1,296.3   1,571.3
----------------------------------------------------------------------------------------------------------------
\1\ Funding requirement may change pending assessment of Alternative Technologies for Assembled Chemical        
  Munitions in consonance with Public Law 104-208.                                                              
\2\ Funding requirement will change based on Department of Defense decision to plan for pilot testing using     
  neutralization for bulk agent disposal.                                                                       


    The following chart displays the timetable and the 
milestones for completion of the chemical demilitarization 
program:

                           CHEMICAL DEMILITARIZATION PROGRAM TIMETABLE AND MILESTONES                           
----------------------------------------------------------------------------------------------------------------
            Location                Start of construction    Start of systemization           Operations        
----------------------------------------------------------------------------------------------------------------
Johnston Atoll..................  ........................  .......................  3QFY90 \1\-4QFY00          
Tooele, UT......................  ........................  .......................  4QFY96-4QFY03              
Anniston, AL....................  3QFY97..................  2QFY00.................  4QFY01-1QFY05              
Umatilla, OR....................  2QFY97..................  1QFY00.................  1AFY02-1QFY05              
Pine Bluff, AR..................  4QFY97..................  3QFY00.................  4QFY01-1QFY05              
Pueblo, CO \2\..................  On Hold.................  .......................  ...........................
Blue Grass, KY \2\..............  On Hold.................  .......................  ...........................
Aberdeen, MD \3\................  1QFY00..................  3QFY02.................  1QFY04-1QFY05              
Newport, IN \3\.................  1QFY00..................  3QFY02.................  1QFY04-1QFY05              
----------------------------------------------------------------------------------------------------------------
\1\ Full-scale operations began 2QFY94.                                                                         
\2\ Schedule on-hold pending assessment of Alternative Technologies for Assembled Chemical Munitions in         
  consonance with Public Law 104-208.                                                                           
\3\ Schedule represents Department of Defense decision to plan for pilot testing using neutralization for bulk  
  agent disposal.                                                                                               

  arkansas--pine bluff chemical activity: ammunition demilitarization 
                                facility

    The Committee recommends deferring $44,000,000 for the 
budgeted ammunition demilitarization facility at the Pine Bluff 
Chemical Activity, based on delay in receipt of required 
environmental permits. However, the Committee also recommends 
reappropriating $15,000,000 under the Military Construction, 
Army account for a fiscal year 1993 project to provide an 
ammunition demilitarization support facility at Pine Bluff. It 
is the Committee's view that this support facility project, 
together with $46,000,000 appropriated in fiscal year 1997 but 
not yet executed, is the maximum amount of construction that 
can be put in place during fiscal year 1998, and that therefore 
no additional funding is required at this time.

     military construction, defense-wide: administrative provision

    Statutory language included under this account provides 
that the Secretary of Defense may transfer funds from this 
account to the military construction and family housing 
accounts. The Committee directs that any exercise of this 
authority must fall under the Committee's standing procedures 
for approval of reprogramming requests.

        military construction, defense-wide: planning and design

    The budget request includes $55,650,000 for the planning 
and design account, which provides for preparing plans and 
specifications for construction of the Defense Agencies and 
Secretary of Defense Activities. This is an increase of 
$43,321,000 above the appropriation for fiscal year 1997. Due 
to the lack of justification, the Committee recommends 
$34,350,000 for this account for fiscal year 1998, which is a 
reduction of $21,300,000 from the budget request.

             prior year savings--defense medical facilities

    The Committee notes that the Department's request for 
authorization includes a proposal to use prior year savings 
from a fiscal year 1995 project at McClellan AFB that is no 
longer required due to the 1995 Base Realignment and Closure 
Commission decision to close a hospital by 2001 in order to 
finance two new construction projects at Andersen AFB and 
Tinker AFB. Should this request be enacted, the Committee 
directs that any exercise of this authority must fall under the 
Committee's standing procedures for approval of reprogramming 
requests.

    defense medical facilities--italy-naval support activity, naples

    The Committee is not convinced that continued long-term 
leasing of a Naval Hospital at Naval Support Activity, Naples 
is the most cost effective alternative. The Committee strongly 
encourages the Department to reevaluate the anticipated life-
cycle costs for the hospital and, if supported by the results 
of the analysis, to request the necessary funding in the 
appropriate account to buy-out the lease at the most opportune 
time.

 Department of Defense Military Unaccompanied Housing Improvement Fund

                                                                        
                                                                        
                                                                        
Fiscal year 1997 appropriation........................        $5,000,000
Fiscal year 1998 estimate.............................                 0
Committee recommendation in the bill..................                 0
Comparison with:                                                        
    Fiscal year 1997 appropriation....................        -5,000,000
    Fiscal year 1998 estimate.........................                 0
                                                                        

    The Committee recommends no appropriation for the 
Department of Defense Military Unaccompanied Housing 
Improvement Fund for fiscal year 1998. This is equal to the 
budget request for fiscal year 1998, and a decrease of 
$5,000,000 below the appropriation for fiscal year 1997.
    Last year, the Committee initiated and appropriated 
$5,000,000 for the Military Unaccompanied Housing Improvement 
Fund in order to demonstrate its support of privatization. The 
Committee is disappointed that there is no budget request for 
fiscal year 1998 for this account. In addition, the Committee 
is concerned that the Department has not yet identified any 
requirements against the $5,000,000 appropriated in fiscal year 
1997. It is the Committee's view that the Department should 
aggressively apply these authorities to obtain and use private 
capital to improve living conditions for unaccompanied military 
personnel in a more reasonable time frame.

                                Overview

    The National Defense Authorization Act for fiscal year 
1996, P.L. 104-106, established new authorities to increase the 
use of the private sector and capital to improve unaccompanied 
housing. The authorities include: direct loans and loan 
guarantees to private developers; leasing of new housing; 
investments in nongovernmental entities; rental guarantees; 
differential lease payments and conveyance or lease of existing 
property and facilities.
    The Military Unaccompanied Housing Improvement Fund will be 
used to build or renovate unaccompanied housing, mixing or 
matching the various authorities contained in the 
authorization, and utilize private capital and expertise to the 
maximum extent possible. This fund is to contain appropriated 
and transferred funds from military construction accounts, and 
the total value in budget authority of all contracts and 
investments undertaken may not exceed $150,000,000. Sources for 
transfers into the funds are solely to be derived from funds 
appropriated for the acquisition or construction of military 
unaccompanied housing. Transfers into the fund are authorized 
contingent upon a 30-day notification by the Secretary of 
Defense to the appropriate committees of Congress. Proceeds 
from investments, leases, and conveyances are to be deposited 
into this Fund, and any use of the Fund is subject to annual 
appropriations. The Military Unaccompanied Housing Improvement 
Fund is to be administered as a single account without fiscal 
year limitations and the authority to enter into contracts and 
partnerships and to make investments shall expire on September 
30, 2000.

                         Reporting Requirements

    The Committee reiterates the existing reporting 
requirements. The Service Secretary concerned may not enter 
into any contract until after the end of the 21-day period 
beginning on the date the Secretary concerned submits written 
notice of the nature and terms of the contract to the 
appropriate Committees of Congress. To clarify existing 
reporting requirements, this 21-day notification requirement 
applies to any project, regardless of whether it is financed 
entirely by transfer of funds into the Military Unaccompanied 
Housing Improvement Fund, or it is fully financed within funds 
available in the Military Unaccompanied Housing Improvement 
Fund, or it is funded by combining transferred funds with funds 
available in the Fund.
    Budget justification documents are to display project and 
administrative costs. No transfer of appropriated funds into 
the account may take place until after the end of the 30-day 
period beginning on the date the Secretary of Defense submits 
written notice and justification for the transfer to the 
appropriate Committees of Congress. The Appropriations 
Committee expects to receive prior notification of all such 
transfers of funds.

               Military Construction, Reserve Components

                                                                        
                                                                        
                                                                        
Fiscal year 1997:                                                       
    Appropriation.....................................      $413,868,000
    Rescission........................................        -5,000,000
        Net...........................................       408,868,000
Fiscal year 1998 estimate.............................       172,886,000
Committee recommendation in the bill..................       327,808,000
Comparison with:                                                        
    Fiscal year 1997 net appropriation................       -81,060,000
    Fiscal year 1998 estimate.........................      +154,922,000
                                                                        

    The Committee recommends a total of $327,808,000 for 
Military Construction, Reserve Components for fiscal year 1998. 
This is an increase of $154,922,000 above the budget request 
for fiscal year 1998, and a decrease of $81,060,000 below the 
net appropriation for 1997.
    The Committee's recommended action on each Reserve 
Component is reflected in the State list at the end of this 
report.
    The Committee recommends approval of Military Construction, 
as follows:

------------------------------------------------------------------------
             Component                   Request          Recommended   
------------------------------------------------------------------------
Army National Guard...............        $45,098,000        $45,098,000
Air National Guard................         60,225,000        137,275,000
Army Reserve......................         39,112,000         77,731,000
Naval Reserve.....................         13,921,000         40,561,000
Air Force Reserve.................         14,530,000         27,143,000
                                   -------------------------------------
    Total.........................        172,886,000        327,808,000
------------------------------------------------------------------------

                          Army National Guard

    The current plant replacement value of the Army National 
Guard's physical plant is $16,300,000,000. Of this amount, 
$7,900,000,000 is in armories (also known as readiness 
centers), $4,200,000,000 is in training facilities, 
$2,800,000,000 is in logistical facilities, and $1,400,000,000 
is in aviation facilities. The average age of these facilities 
is 36 years. These facilities contain 65,800,000 square feet 
which the Federal government supports, and 67,000,000 square 
feet which the States support. Among these facilities are 3,214 
armories, 241 United States Property and Fiscal Officer 
facilities, 121 Army Aviation facilities, 4 Aviation 
Classification and Repair Depots, 701 Organizational 
Maintenance Shops, 69 Combined Support Maintenance Shops, 24 
Mobilization and Training Equipment Sites, 40 Unit Training and 
Equipment Sites, 10,576 training facilities, and 4,520 
miscellaneous logistical facilities.
    The Future Years Defense Plan contains forty-seven projects 
at a total cost of $188,485,000 to address the military 
construction needs of the Army National Guard, as follows:

------------------------------------------------------------------------
          Fiscal year program           No. of projects       Amount    
------------------------------------------------------------------------
1998 Budget Request...................               11      $35,600,000
1999..................................                8       23,640,000
2000..................................                7       40,732,000
2001..................................                6       26,799,000
2002..................................                8       29,438,000
2003..................................                7       32,276,000
                                       ---------------------------------
      Total, 1998 through 2003........               47      188,485,000
------------------------------------------------------------------------

                 Annual Reporting Requirement--Backlog

    The Army National Guard reports that the current backlog of 
facility requirements totals 788 unbudgeted projects at a cost 
of $3,485,117,380 beyond those projects currently programmed 
through fiscal year 2003 in the Future Years Defense Plan. The 
Committee will expect that this itemized list of 788 specific 
projects (which is described as a 25 year facilities plan) will 
be maintained, updated, and revised as necessary for the 
indefinite future. The Committee directs the Secretary of the 
Army and the Director of the Army National Guard to make a 
joint report annually on the current backlog of facilities 
requirements of the Army National Guard, using the itemized 
list of 788 specific projects as a starting point and 
justifying in detail any cancellation, substitution, addition, 
re-prioritization, re-pricing, re-scoping, and any other 
revision to this list. This joint annual report is to be 
submitted concurrently with the annual budget request.

                       Armories/Readiness Centers

    The Committee is aware that the existing inventory of 3,214 
armories/readiness centers includes the full range of 
conditions, from poorly maintained aged facilities to excellent 
modern facilities. In a number of instances, facilities have 
not kept pace with new mission assignments. However, the 
Committee questions the extent to which considerable resources 
have been expended on armory/readiness center upgrades and 
replacements which may have been redundant and excess to the 
needs of the Army National Guard. The Committee has received 
reports of overbuilding in some areas to the point at which 
armories/readiness centers are burdensome to the recipient 
states, which must bear the cost of operation and maintenance 
expenses. Part of this problem is the Army National Guard's 
lack of a comprehensive approach to armory construction, and 
inadequate prioritization of projects against a set of well-
defined criteria.
    The Committee will expect the Army National Guard to take a 
more direct role in selecting and prioritizing those armories/
readiness centers for which it is seeking funding, or for which 
state Adjutant Generals and local officials are seeking 
Congressional support. Priority for armory projects will 
include but not be limited to the following criteria:
          Construction for units which have a high relative 
        priority within the state and within the Army National 
        Guard;
          Construction that is required to transition to a new 
        mission, or to meet changes in unit equipment;
          Construction which incorporates standardized design 
        criteria, and which is fully designed and executable at 
        the time of funding, and for which state matching funds 
        are available;
          Construction for units with over 200 assigned 
        personnel, especially for those units which achieved 
        that level through consolidation of smaller units, or 
        for combinations of smaller units totaling over 200 
        personnel;
          Construction for planned armory/readiness center 
        utilization of two to four weekends per month by 
        resident units, that is, for multi-unit armories;
          Construction for rehabilitation, modification, and 
        re-use of surplus Federal facilities (such as buildings 
        at current and/or former military installations) as 
        armories/readiness centers, in lieu of new 
        construction; and
          Construction for projects that have received high 
        priority ranking in the state's Long Range Construction 
        Program, in the state's Master Plan and Real Property 
        Maintenance Plan, in the Department's Future Years 
        Defense Plan, and in the newly required annual report 
        on the current backlog of facilities requirements of 
        the Army National Guard.
    The Committee will consider future requests for armory/
readiness center projects in light of these criteria.

          annual reporting requirement--armory infrastructure

    The Army National Guard and the National Guard Bureau are 
directed to undertake a nationwide effort to:
    1. Develop a plan for the long-range stationing of Army 
National Guard units, reflecting anticipated changes in 
missions and opportunities for reduced facilities requirements.
    2. Identify priorities for new or reconfigured armories, 
based on the above criteria.
    3. Evaluate and rate existing armories according to age, 
condition, recruiting potential, size of facility, location, 
land availability, accessibility to a major highway system, 
distance from major training areas, and operating costs.
    The Secretary of the Army, the Director of the National 
Guard Bureau, and the Director of the Army National Guard are 
directed to report jointly to the Committee by January 1, 1998 
on the status of this nationwide effort.

                       future years defense plan

    It is the Committee's view that section 123 of Public Law 
104-196 constitutes a continuing permanent requirement for the 
Army National Guard and the Air National Guard to present the 
Future Years Defense Plan to Congress concurrent with the 
President's budget submission for each fiscal year. The 
Committee will expect subsequent submissions of the Future 
Years Defense Plan to include explanatory notes justifying any 
modification of prior year plans.

          ownership and control of armories/readiness centers

    According to National Guard Bureau policy, states sign 
cooperative agreements whereby armories built on state land, 
but financed primarily with Federal funds, will be owned and 
controlled by the states but obligated to Federal use for 25 
years. At the expiration of that period, there is no further 
legal obligation for Federal use, unless the Federal Government 
has financed a major renovation, alteration, or addition of the 
armory, in which case the 25-year period begins anew at the 
time of such modification. The Army Audit Agency has noted that 
the design life of such structures is up to 80 years. Typical 
life expectancy of such structures is at least 50 years. The 
average age of all facilities used by the Army National Guard 
is 36 years.
    The Committee encourages the National Guard Bureau to 
review its policy of 25-year use agreements so that the Federal 
Government may share in the fair market value of armories/
readiness centers for the entire economic life of the 
structure. The Committee will expect that all future contract 
awards for armories/readiness centers will be contingent upon 
signed cooperative agreements obligating facilities to Federal 
use for not less than 50 years, unless specifically justified 
for shorter periods of time.

                    academic/educational facilities

    The Committee directs the Secretary of the Army and the 
Director of the Army National Guard to report jointly to the 
Committee by January 1, 1998 on the review and approval process 
that is applied to certify the facilities requirement for 
academic/educational facilities for the Army National Guard. 
This report should address specifically the system that is used 
to inventory the infrastructure capacity currently available to 
the Army and the Army National Guard, and the means of 
determining and validating the future infrastructure 
requirements of the Army and the Army National Guard for 
academic/educational facilities.

                              Army Reserve

                 california--sacramento: usarc/oms/amsa

    The Committee recommends $20,972,000 for construction of a 
US Army Reserve Center/Organizational Maintenance Shop/Area 
Maintenance Support Activity in the Sacramento, California 
area, as requested. However, the Committee is concerned 
regarding the siting of this project. Therefore, no funds may 
be obligated until 21 days after the Secretary of the Army 
submits a report on the most efficient and cost-effective 
location for new Army Reserve facilities in the Sacramento 
area. At a minimum, the Committee will expect that this report 
will evaluate the justification and cost of locating this 
project at the former Sacramento Army Depot as proposed, rather 
than at McClellan Air Force Base.

     North Atlantic Treaty Organization Security Investment Program

                                                                        
                                                                        
                                                                        
Fiscal year 1997 appropriation........................      $172,000,000
Fiscal year 1998 estimate.............................       176,300,000
Committee recommendation in the bill..................       166,300,000
Comparison with:                                                        
    Fiscal year 1997 appropriation....................        -5,700,000
    Fiscal year 1998 estimate.........................       -10,000,000
                                                                        

    The Committee recommends a total of $166,300,000 for the 
North Atlantic Treaty Organization Security Investment Program. 
This is a decrease of $10,000,000 below the budget request for 
fiscal year 1998 and a decrease of $5,700,000 below the 
appropriation for fiscal year 1997.
    For 1998, the NATO nations have agreed on a funding level 
of approximately $890,700,000. Of this amount, the U.S. 
requirement is based on a cost share which averages about 26%. 
In addition to the recommended appropriation of $166,300,000, 
approximately $23,700,000 is expected to be available from 
recoupments from prior year U.S. funded work, and from 
deobligation of NATO funds for previously obligated projects 
that were reduced in scope or canceled.
    The Department of Defense is directed to continue to report 
to the Committees on Appropriations, on a quarterly basis, the 
following information:
          (1) NATO nations share of construction costs based on 
        fund authorizations;
          (2) NATO nations shares of procurement costs based on 
        fund authorizations; and
          (3) A listing of all obligations incurred that 
        quarter broken out by infrastructure category and 
        procurement category. This listing should show the 
        total project costs, the U.S. cost share and all other 
        NATO nations cost shares.

                             NATO Expansion

    The Committee has received assurances that no fiscal year 
1998 funds will be obligated for projects (including planning 
and design) related to the enlargement of NATO. The Committee 
will expect that no funds will be used for such purposes, 
unless Congress is notified 21 days in advance of the 
obligation of funds.
    Further, the Committee will expect that no funds will be 
used for projects (including planning and design) related to 
the Partnership for Peace, unless Congress is notified 21 days 
in advance of the obligation of funds.
    The Committee will expect the fiscal year 1999 budget 
request for the NATO Security Investment Program to identify 
separately the level of effort anticipated for NATO enlargement 
and for Partnership for Peace within the funds requested for 
fiscal year 1999.

                             Family Housing

                                Overview

    The need for military family housing has changed with the 
all-volunteer structure of the force. In the mid-1950s forty-
two percent of the force was married, compared to sixty-one 
percent today. The percentage of service members with families 
will continue to grow, and the nature of an all-volunteer force 
implies greater expectations for the availability, size and 
amenities of family housing. At the same time, the Department 
is faced with a changing military environment due to overseas 
reductions, domestic base closures, major force reductions, and 
increased deployments.
    Today, the family housing program is even more important 
because it provides a quality of life incentive which attracts 
and retains dedicated individuals to serve in the military. 
However, the housing deficiencies are a severe disincentive to 
reenlistment. Testimony before the Committee states that it 
costs over $26,000 to recruit and train an enlisted soldier for 
the first assignment. This investment is lost each time a 
soldier must be replaced. The Committee has no question that 
housing is directly linked to readiness, morale and retention.
    While this Committee has focused on the need for adequate 
family housing over the years, resources have been scarce. The 
family housing crisis exists today due to the majority of 
housing in the Department's inventory being substandard; high 
cost areas where housing deficits exist; and problems young 
families are facing who cannot afford to live in local 
communities.
    DOD policy is that married couples will live off-base when 
the economy can support them, and about two-thirds of all 
military families do reside off-base. Where there is sufficient 
affordable housing in the community and commuting distances are 
not over one hour, most of these families are doing well. 
However, 12 percent of military families living in civilian 
communities are in substandard housing. This is often the case 
when rents are excessive or a family can only afford to live in 
distant, isolated, and sometimes unsafe neighborhoods. This is 
occurring more often because housing allowances are covering 
only 75 percent of the cost of civilian housing, on average. 
Many younger families only have one car and are faced with 
driving distances of over an hour to the installation. In some 
instances, families are choosing to remain separated simply 
because suitable, affordable housing is not available at a new 
assignment.
    The Department of Defense has a total of 319,822 on-base 
housing units in its inventory, with an average age of 34 
years. Two-thirds of the inventory is over 30 years old and 
requires a substantial annual investment to meet maintenance 
requirements. Over the years, the majority of these homes have 
gone without adequate maintenance and repair. And over fifty 
percent of the inventory, or 201,183 units, is in need of major 
improvements or replacement at a total cost of $16,582,782,000.
    Unsuitable units require a major investment in maintenance 
and repair to correct deteriorated infrastructure, provide 
basic living standards and meet contemporary code requirements 
for electrical and mechanical systems, and for energy 
efficiency. Examples provided to the Committee of a typical 
scenario military families face include: severe health and 
safety deficiencies such as electrical systems and water pipes 
needing replacement; non-working or inefficient heating and 
cooling systems; nails coming through the ceilings and floors; 
kitchen cabinets water-logged and sinking; ceiling and wall 
paint chipped and peeling; screens with holes in them; doors 
coming apart; malfunctioning smoke detectors; light fixtures 
broken, and stoves and ovens with elements not working. The 
current backlog of deferred maintenance and repair totals in 
excess of $9,311,048,000. When housing units are not adequately 
maintained, eventually they must be closed and abandoned or 
demolished. Families who could have been housed in these units 
must then live off-base. In turn, this creates an additional 
expense for payment of housing allowances.
    Aside from the problems confronting the current inventory, 
the Department estimates a new construction deficit of 53,087 
units at a cost of $5,460,273,000. The Secretary of Defense 
proposed, and Congress has approved, a plan for a private 
sector initiative which is discussed later in this report. The 
Committee is hopeful this initiative will be successful and 
help to resolve the new construction deficit in a timely 
manner.
    It will be necessary to use many different approaches to 
help meet the current family housing need. The challenge is for 
a sustained overall commitment, at funding levels that will 
reduce the backlog of inadequate houses, reduce the housing 
deficits, and increase the quality of living conditions in a 
reasonable period of time. The Department estimates it will 
take over $26,100,103,000 to correct the existing problem.
    The following chart provides a Service breakout of the 
current family housing deficit, both in units and in cost of 
new construction, replacement, improvements and deferred 
maintenance and repair:

                                         DEFICITS (CURRENT PROJECTIONS)                                         
                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                        New                                                                     
                                   construction     Replacement     Improvement    Deferred RPM     Grand total 
----------------------------------------------------------------------------------------------------------------
Army:                                                                                                           
    Number of Units.............          10,000          26,140          73,250               0         109,390
    Costs.......................      $1,327,200      $3,398,070      $4,248,360      $5,200,000      $8,973,630
Navy:                                                                                                           
    Number of Units.............          15,000           5,100          26,000               0          46,100
    Costs.......................        $670,400        $758,000      $1,761,200      $2,300,000      $5,489,600
Air Force:                                                                                                      
    Number of Units.............          17,910          18,560          39,440               0          75,910
    Costs.......................      $2,149,000      $2,227,000      $3,155,000        $959,000      $8,490,000
Marine Corps:                                                                                                   
    Number of Units.............          10,177             643          12,050               0          22,870
    Costs.......................      $1,313,673        $135,910        $845,242        $852,048      $3,146,873
Total:                                                                                                          
    Number of Units.............          53,087          50,443         150,740               0         254,270
    Costs.......................      $5,460,273      $6,518,980     $10,009,802      $9,311,048     $26,100,103
----------------------------------------------------------------------------------------------------------------

                         construction overview

    The Committee is concerned over the fiscal year 1998 budget 
request for family housing new construction, construction 
improvements and planning of $680,011,000. Housing continues to 
be a top priority, yet the Department's budget represents a 
reduction of $300,256,000 or 31%, from the fiscal year 1997 
appropriation for new construction and construction 
improvements. The Committee strongly believes it is imperative 
that construction funding levels must be maintained, along with 
any privatization efforts, to help resolve the serious family 
housing deficits. Therefore, the Committee recommends total 
funding of $957,668,000 for family housing construction for 
fiscal year 1998. This represents a decrease of $22,599,000 
below the fiscal year 1997 appropriation and an increase of 
$277,657,000 over the budget request.

                        new housing construction

    The fiscal year 1998 request is $317,665,000 to build 2,157 
units of new family housing for all Services. This is 
$188,743,000 or 37 percent, under the fiscal year 1997 enacted 
level. The Committee has approved all requested projects for 
new housing construction, except for one project to provide 
eight units of housing in Miami, Florida. In addition, the 
Committee has recommended an additional $136,224,000 to build 
894 units of new family housing. The total appropriation for 
new construction is $453,889,000 and will provide 3,051 new 
units. Details of the Committee's recommendations for new 
construction are provided in this report under the individual 
component accounts. The Committee expects that none of the 
approved projects will be reduced in scope.
    It is the understanding of the Committee, that upon a 30-
day notification from the Secretary of Defense, and approval of 
the Committee, funds appropriated for a new construction 
project may be transferred to the Defense Family Housing 
Improvement Fund for the purpose of a private sector pilot 
project at the same location.

                       construction improvements

    A total of $325,675,000 has been requested for post-
acquisition construction for all services to improve 3,937 
housing units. This is a decrease of $112,579,000, or 26 
percent, from the fiscal year 1997 enacted level. Post-
acquisition construction is focused on modernizing existing 
units that are uneconomical to repair. The Committee recommends 
full funding of the request. In addition, the Committee has 
provided an additional $141,433,000 for construction 
improvement projects which are listed in this report under the 
individual component accounts, to improve an additional 1,314 
units. The total appropriation for post-acquisition 
construction is $467,108,000 and will improve 5,251 units of 
family housing.
    It is the understanding of the Committee, that upon a 30-
day notification from the Secretary of Defense, and approval of 
the Committee, funds appropriated for a construction 
improvement project may be transferred to the Defense Family 
Housing Improvement Fund for the purpose of a private sector 
pilot project at the same location.
    The Committee continues the restriction on the amount 
invested in improving foreign source housing units. The three-
year limitation on overseas units is $35,000. If the components 
intend to program improvements to specific units which exceed 
$35,000 over a period of three years, total funding should be 
requested in one year. The justification for each unit should 
identify all improvements and major maintenance work done in 
the past three years, and all improvements and major 
maintenance planned in the following three years.

                       operation and maintenance

    The fiscal year 1998 request for operation and maintenance 
expenses totals $2,988,399,000, a decrease of $92,260,000, from 
the fiscal year 1997 appropriation. These accounts provide for 
annual expenditures for maintenance and repair, furnishings, 
management, services, utilities, leasing, interest, mortgage 
insurance and miscellaneous expenses. Of the total request for 
operation and maintenance, $1,364,077,000 is for maintenance 
and repair of existing housing, a reduction of $99,675,000 from 
fiscal year 1997 levels.
    The Committee directs that any savings from foreign 
currency re-estimations in the family housing operation and 
maintenance accounts be applied for maintenance of existing 
family housing units. The Comptroller is directed to report to 
the Committee on the allocation of this savings by December 1, 
1997.
    Expenditures from this account for general and flag officer 
quarters are to be reported in accordance with the guidelines 
previously established and reiterated later in this report. The 
Committee also continues the direction that the details of all 
other expenditures from this account which exceed $15,000 per 
unit, per year for major maintenance and repair of non-general 
and flag officer quarters be included as part of the 
justification material. The general provision limiting 
obligations from this account to no more than 20 percent of the 
total in the last two months of the fiscal year is included in 
this year's bill.
    The Committee continues the restriction on the transfer of 
funds between the operation and maintenance accounts. The 
limitation is ten percent to all primary accounts and 
subaccounts. Such transfers are to be reported to the Committee 
within thirty days of such action.

                   general and flag officer quarters

    The existing reporting requirements for general and flag 
officer quarters continue in full force and effect, in order to 
control expenditures for high cost quarters. The purpose of 
these requirements is to ensure that the total amount of all 
obligations for maintenance and repair (excluding operations) 
on each general or flag officer quarters is limited to $25,000 
per year, unless specifically included in the annual budget 
justification material. This continues the policy initiated in 
1984 and developed and elaborated over several years, to ensure 
that separate controls are established for orderly planning and 
programming to accomplish this work.
    Recognizing the uncertainties involved in accurately 
forecasting ``change in occupancy'' work, the Committee 
continues the following previously established notification 
requirement. The Committee must be notified when maintenance 
and repair costs for a unit will exceed the amount submitted in 
the budget justification by 25 percent or $5,000, whichever is 
less. The Committee must also be notified when maintenance and 
repair costs will exceed $25,000 for a unit not requested in 
the budget justification.
    Notifications of each proposed expenditure must be 
submitted over the signature of the Service Secretary for case-
by-case review and approval. Each Service is directed to 
continue to limit out-of-cycle submissions to one per year, 
except for situations which are justified as emergencies or 
safety-related.

                     leasing reporting requirement

    The Committee continues the reporting requirement for both 
domestic and foreign leases. For domestic leases (not funded by 
the Defense Family Housing Improvement Fund), the Department is 
directed to report quarterly on the details of all new or 
renewal domestic leases entered into during the previous 
quarter which exceed $12,000 per unit per year, including 
certification that less expensive housing was not available for 
lease. For foreign leases, the Department is directed to: 
perform an economic analysis on all new leases or lease/
contract agreements where more than 25 units are involved; 
report the details of any new or renewal lease exceeding 
$20,000 per year (as adjusted for foreign currency fluctuation 
from October 1, 1987, but not adjusted for inflation), 21 days 
prior to entering into such an agreement; and base leasing 
decisions on the economic analysis.

exclusion of asbestos and lead-based paint removal from maintenance and 
                             repair limits

    The Committee continues the requirement of an after-the-
fact notification where asbestos and/or lead-based paint 
removal costs cause the maintenance and repair thresholds of 
$15,000 for a military family housing unit, or $25,000 for a 
General or Flag Officer Quarters, to be exceeded. The 
notification shall include work, scope, cost break-out and 
other details pertinent to asbestos and/or lead-based paint 
removal work and shall be reported on a semi-annual basis.

                         reprogramming criteria

    The reprogramming criteria that apply to military 
construction projects (25 percent of the funded amount or 
$2,000,000, whichever is less) also apply to new housing 
construction projects and to improvement projects over 
$2,000,000.

                          Family Housing, Army

                                                                        
                                                                        
                                                                        
Fiscal year 1997 appropriation........................    $1,370,969,000
Fiscal year 1998 estimate.............................     1,291,937,000
Committee recommendation in the bill..................     1,351,068,000
Comparison with:                                                        
    Fiscal year 1997 appropriation....................       -19,901,000
    Fiscal year 1998 estimate.........................       +59,131,000
                                                                        

    The Committee recommends a total of $1,351,068,000 for 
Family Housing, Army for fiscal year 1998. This is an increase 
of $59,131,000 above the budget request for fiscal year 1998, 
and a decrease of $19,901,000 below the appropriation for 
fiscal year 1997.

                              construction

    The Committee recommends $101,650,000 for new construction, 
instead of $88,650,000, as requested, as shown below:

------------------------------------------------------------------------
         Location/Project               Requested         Recommended   
------------------------------------------------------------------------
Arizona: Fort Huachuca (55 units).                  0          8,000,000
Florida: Miami (8 Units)..........          2,300,000                  0
Hawaii: Schofield Barracks (132                                         
 units)...........................         26,600,000         26,600,000
Maryland: Fort Meade (56 units)...          7,900,000          7,900,000
New Jersey: Picatinny Arsenal (35                                       
 units)...........................                  0          7,300,000
North Carolina:                                                         
    Fort Bragg (142 units)........         16,800,000         16,800,000
    Fort Bragg (32 units).........          3,350,000          3,350,000
Texas:                                                                  
    Fort Bliss, (91 units)........         12,900,000         12,900,000
    Fort Hood (130 units).........         18,800,000         18,800,000
                                   -------------------------------------
      Total.......................         88,650,000        101,650,000
------------------------------------------------------------------------

      florida--miami: (US Southern Command Headquarters) (8 units)

    The Committee recommends denying the request to provide 
$2,300,000 for the construction of eight units of family 
housing for the leadership of the US Southern Command, due to 
the unacceptably high cost per unit. The Committee concurs with 
the action of the authorization committee to permit the 
Secretary of the Army to lease not more than eight housing 
units for key and essential personnel, at a total cost of not 
to exceed $280,000 per year, with no lease on any individual 
housing unit to exceed $60,000 per year. Funds may not be 
obligated for such leases until after the end of the 21-day 
period beginning on the date the Secretary submits written 
detailed justification of the specific proposed leases, as well 
as the comprehensive report of all costs related to the 
relocation of the Southern Command which is directed earlier in 
this report under the Military Construction, Army account.

                       Construction Improvements

    The following projects are to be accomplished within the 
additional amount provided above the budget request for 
construction improvements:

------------------------------------------------------------------------
         Location/Project            Number of units      Recommended   
------------------------------------------------------------------------
Alaska--Fort Wainwright...........                 32          8,300,000
Kansas--Fort Riley................                214         14,200,000
Kentucky--Fort Campbell...........                 86          8,500,000
New York--West Point..............                 56          5,400,000
Virginia--Fort Belvoir............                 98          8,000,000
                                   -------------------------------------
      Total.......................                486         44,400,000
------------------------------------------------------------------------

                 Family Housing, Navy and Marine Corps

                                                                        
                                                                        
                                                                        
Fiscal year 1997 appropriation........................    $1,520,607,000
Fiscal year 1998 estimate.............................     1,255,437,000
Committee recommendation in the bill..................     1,385,682,000
Comparison with:                                                        
    Fiscal year 1997 appropriation....................      -134,925,000
    Fiscal year 1998 estimate.........................      +130,245,000
                                                                        

    The Committee recommends a total of $1,385,682,000 for 
Family Housing, Navy and Marine Corps for fiscal year 1998. 
This is an increase of $130,245,000 above the budget request 
for fiscal year 1998, and a decrease of $134,925,000 above the 
amount appropriated for fiscal year 1997.

                              Construction

    The Committee recommends $179,796,000 for new construction, 
instead of $90,053,000, as requested, as shown below:

------------------------------------------------------------------------
         Location/Project               Requested         Recommended   
------------------------------------------------------------------------
California:                                                             
    Camp Pendleton MCB (171 units)         22,518,000         22,518,000
    Lemoore NAS (128 units).......         23,226,000         23,226,000
    Miramar MCAS (166 units)......         28,881,000         28,881,000
    San Diego NC (94 units).......                  0         13,500,000
    Twentynine Palms MCAGCC (132                                        
     units).......................         23,891,000         23,891,000
Hawaii: Pearl Harbor NC (84 units)                  0         17,900,000
Louisiana: New Orleans NC (100                                          
 units)...........................                  0         11,930,000
Texas: Kingsville/Corpus Christi                                        
 NC (212 units)...................                  0         22,250,000
Washington: Bangor NC (118 units).                  0         15,700,000
Worldwide Various:                                                      
    Reduction From Prior Year                                           
     Savings......................         -8,463,000                  0
                                   -------------------------------------
      Total.......................         90,053,000        179,796,000
------------------------------------------------------------------------

                       Construction Improvements

    The following projects are to be accomplished within the 
additional amount provided above the budget request for 
construction improvements:

------------------------------------------------------------------------
                                           Number of                    
            Location/Project                 units        Recommended   
------------------------------------------------------------------------
California--China Lake NAWC \1\.........            0          4,193,000
Illinois--Great Lakes PWC...............           64          7,700,000
Maryland--Patuxent River NAWC...........          123         12,390,000
North Carolina--Cherry Point MCAS.......          155         11,300,000
Washington--Bremerton NC................          100          4,919,000
                                         -------------------------------
      Total.............................          442        40,502,000 
------------------------------------------------------------------------
\1\ Includes demolition of 120 units.                                   

        italy--naval support activity, naples and sigonella nas

    The Committee is concerned about the quality of life for 
military personnel and their families assigned to bases in 
Italy. In this regard, the Committee fully supports the 
Department's efforts to obtain family housing and community 
facilities at Sigonella and Naples. However, the Committee is 
not convinced that continued long-term leasing is the most cost 
effective alternative. The Committee strongly encourages the 
Department to reevaluate the anticipated life-cycle costs for 
these facilities and, if supported by the results of the 
analysis, to request the necessary funding in the appropriate 
account to buy-out the leases at the most opportune time.

                       Family Housing, Air Force

                                                                        
                                                                        
                                                                        
Fiscal year 1997 appropriation........................    $1,134,016,000
Fiscal year 1998 estimate.............................     1,083,362,000
Committee recommendation in the bill..................     1,171,643,000
Comparison with:                                                        
    Fiscal year 1997 appropriation....................       +37,627,000
    Fiscal year 1998 estimate.........................       +88,281,000
                                                                        

    The Committee recommends a total of $1,171,643,000 for 
Family Housing, Air Force for fiscal year 1998. This is an 
increase of $88,281,000 above the budget request for fiscal 
year 1998, and an increase of $37,627,000 above the 
appropriation for fiscal year 1997.

                              Construction

    The Committee recommends $172,443,000 for new construction, 
instead of $138,962,000, as requested, as shown below:

------------------------------------------------------------------------
         Location/Project               Requested         Recommended   
------------------------------------------------------------------------
Arizona: Davis-Monthan AFB (70                                          
 units)...........................                  0         $9,800,000
California:                                                             
    Edwards AFB, Phase III (51                                          
     units).......................         $8,500,000          8,500,000
    Edwards AFB (44 units)........                  0          8,300,000
    Travis AFB (70 units).........          9,714,000          9,714,000
    Vanderberg AFB (108 units)....         17,100,000         17,100,000
Delaware: Dover AFB (Housing                                            
 Maintenance Facility)............            831,000            831,000
District of Columbia: Bolling AFB                                       
 (46 units).......................          5,100,000          5,100,000
Florida:                                                                
    MacDill AFB (58 units)........         10,000,000         10,000,000
    Tyndall AFB (32 units)........          4,200,000          4,200,000
Georgia: Robins AFB (60 units)....          6,800,000          6,800,000
Idaho: Mountain Home AFB (60                                            
 units)...........................         11,032,000         11,032,000
Kansas:                                                                 
    McConnell AFB (19 units)......          2,951,000          2,951,000
    McConnell AFB (Housing                                              
     Management Office)...........                  0            581,000
Mississippi:                                                            
    Columbus AFB (50 units).......          6,200,000          6,200,000
    Keesler AFB (40 units)........          5,000,000          5,000,000
Montana: Malmstrom AFB (28 units).          4,842,000          4,842,000
New Mexico: Kirtland AFB (180                                           
 units)...........................         20,900,000         20,900,000
North Dakota: Grand Forks AFB (42                                       
 units)...........................          7,936,000          7,936,000
Texas:                                                                  
    Dyess AFB (70 units)..........         10,503,000         10,503,000
    Goodfellow AFB (3 units)......            500,000            500,000
    Lackland AFB (50 units).......                  0          7,400,000
    Sheppard AFB (40 units).......                  0          7,400,000
Wyoming: F E Warren AFB (52 units)          6,853,000          6,853,000
                                   -------------------------------------
      Total.......................        138,962,000        172,443,000
------------------------------------------------------------------------

                       Construction Improvements

    The following projects are to be accomplished within the 
additional amount provided above the request for construction 
improvements:

------------------------------------------------------------------------
                                           Number of                    
            Location/Project                 units        Recommended   
------------------------------------------------------------------------
California--Travis AFB..................          147        $10,500,000
Delaware--Dover AFB.....................           50          5,100,000
New Mexico--Cannon AFB..................          147          8,900,000
Oklahoma--Tinker AFB....................           60          4,600,000
South Carolina--Shaw AFB................           98         10,500,000
Washington--Fairchild AFB...............           42          5,500,000
Guam--Andersen AFB......................           64          9,700,000
                                         -------------------------------
      Total.............................          608         54,800,000
------------------------------------------------------------------------

                      Family Housing, Defense-wide

                                                                        
                                                                        
                                                                        
Fiscal year 1997 appropriation........................       $35,334,000
Fiscal year 1998 estimate.............................        37,674,000
Committee recommendation in the bill..................        37,674,000
Comparison with:                                                        
    Fiscal year 1997 appropriation....................        +2,340,000
    Fiscal year 1998 estimate.........................                 0
                                                                        

    The Committee recommends a total of $37,674,000 for Family 
Housing, Defense-wide for fiscal year 1998. This is equal to 
the budget request for fiscal year 1998, and an increase of 
$2,340,000 above the appropriation for fiscal year 1997.

         Department of Defense Family Housing Improvement Fund

                                                                        
                                                                        
                                                                        
Fiscal year 1997 appropriation........................       $25,000,000
Fiscal year 1998 estimate.............................                 0
Committee recommendation in the bill..................                 0
Comparison with:                                                        
    Fiscal year 1997 appropriation....................       -25,000,000
    Fiscal year 1998 estimate.........................                 0
                                                                        

    The Committee recommends no appropriation for the 
Department of Defense Family Housing Improvement Fund for 
fiscal year 1998. This is equal to the budget request for 
fiscal year 1998, and a decrease of $25,000,000 below the 
appropriation for fiscal year 1997.

                                Overview

    The National Defense Authorization Act for Fiscal Year 1996 
(P.L. 104-106) addressed the family housing crisis by 
authorizing a five year private sector pilot project to replace 
or renovate approximately 200,000 units of family housing 
within the United States, its territories and possessions, and 
in Puerto Rico, but not overseas. Authority was granted to: 
guarantee mortgage payments and rental contracts to developers 
as incentives to build family housing; authorize commercial-
style lease agreements for family housing; and engage in joint 
ventures with developers to construct family housing on 
government property.
    The Family Housing Improvement Fund will be used to build 
or renovate family housing, mixing or matching various 
authorities in the authorization, and utilizing private capital 
and expertise to the maximum extent possible. The Fund is to 
contain appropriated and transferred funds from family housing 
construction accounts, and the total value in budget authority 
of all contracts and investments undertaken may not exceed 
$850,000,000. Proceeds from investments, leases, and 
conveyances are to be deposited into this Fund, and any use of 
the Fund is subject to annual appropriations. The Family 
Housing Improvement Fund is to be administered as a single 
account without fiscal year limitations. This authority to 
enter into contracts and partnerships and to make investments 
shall expire on September 30, 2000.

                         Reporting Requirements

    Budget justification documents are to continue to display 
project and administrative costs.
    The Committee reiterates the existing reporting 
requirements. The Service Secretary concerned may not enter 
into any contract until after the end of the 21-day period 
beginning on the date the Secretary concerned submits written 
notice of the nature and terms of the contract to the 
appropriate committees of Congress. To clarify existing 
reporting requirements, this 21-day notification requirement 
applies to any project, regardless of whether it is financed 
entirely by transfer of funds into the Family Housing 
Improvement Fund, or it is fully financed within funds 
available in the Family Housing Improvement Fund, or it is 
funded by combining transferred funds with funds available in 
the Family Housing Improvement Fund.
    In addition, no transfer of appropriated funds into the 
account may take place until after the end of the 30-day period 
beginning on the date the Secretary of Defense submits written 
notice and justification for the transfer to the appropriate 
committees of Congress. The Appropriations Committee expects to 
receive prior notification of all such transfers of funds.

                         corpus christi, texas

    Upon initial full occupancy of the Corpus Christi, Texas 
project, the Secretary of the Navy is directed to report to the 
Committee on the total number of units built, the number 
occupied by military personnel, and the rank of the initial 
occupants.

                          everett, washington

    The project at Everett, Washington was designed for 
occupancy by E-5 military personnel. The terms of the agreement 
permit the developer to sell units during years 5 through 10. 
Upon initial full occupancy of the Everett, Washington project, 
the Secretary of the Navy is directed to report to the 
Committee on the total number of units built, the number 
occupied by military personnel, and the rank of the initial 
occupants. In addition, when the developer begins to sell 
units, the Secretary is directed to submit annual reports to 
the Committee (as part of the justification of budget 
estimates) on the number of units sold, the number sold to 
military personnel, and the rank of such military personnel.

                  Homeowners Assistance Fund, Defense

                                                                        
                                                                        
                                                                        
Fiscal year 1997 appropriation........................       $36,181,000
Fiscal year 1998 estimate.............................                 0
Committee recommendation in the bill..................                 0
Comparison with:                                                        
    Fiscal year 1997 appropriation....................       -36,181,000
    Fiscal year 1998 estimate.........................                 0
                                                                        

    The Committee recommends no appropriation for the 
Homeowners Assistance Fund, Defense for fiscal year 1998. This 
is equal to the budget request for fiscal year 1998, and a 
decrease of $36,181,000 below the appropriation for fiscal year 
1997.
    The Homeowners Assistance Fund is a non-expiring revolving 
fund which finances a program for providing assistance to 
homeowners by reducing their losses incident to the disposal of 
their homes when military installations at or near where they 
are serving or employed are ordered to be closed or the scope 
of operations is reduced. The Fund was established in 
recognition of the fact that base closure and reduction actions 
can have serious economic effects on local communities. The 
Fund receives funding from several sources: appropriations, 
borrowing authority, reimbursable authority, prior fiscal year 
unobligated balances, revenue from sale of acquired properties, 
and recovery of prior year obligations.
    Recent base closure and realignment actions have had a 
significant impact on this account. The total estimated 
requirements for fiscal year 1998 are $143,193,000 to be 
financed by estimated revenue of $78,069,000 and prior year 
carryover of $88,496,000.

                      Base Realignment and Closure

                                Overview

    The Congress has appropriated, to date, a net total of 
$15,746,672,000 for the Base Realignment and Closure program 
since fiscal year 1990. In the bill for fiscal year 1998, the 
Committee is recommending total funding of $2,060,854,000 under 
three accounts, as requested. These funds are necessary to 
ensure closure schedules can be met and anticipated savings 
will be realized. In addition, funding is essential for 
accelerated cleanup which is necessary for reuse of surplus 
properties and future job creation.
    The Committee, in appropriating such funds, has provided 
the Department with the flexibility to allocate funds by 
Service, by function and by base. The Committee, in recognizing 
the complexities of realigning and closing bases and providing 
for environmental restoration, has provided such flexibility to 
allow the Office of the Secretary of Defense to monitor the 
program execution of the Services and to redistribute 
unobligated balances as appropriate to avoid delays and to 
effect timely execution of realignment and closures along with 
environmental restoration.
    The following table displays the total amount appropriated 
for each round of base closure including amounts recommended 
for fiscal year 1998:

                                          BASE REALIGNMENT AND CLOSURE                                          
                           [Total funding, fiscal year 1990 through fiscal year 1998]                           
----------------------------------------------------------------------------------------------------------------
                                       Fiscal year 1990                                                         
                                        through fiscal    Fiscal year 1997   Fiscal year 1998        Total      
                                          year 1996         enacted \3\        recommended                      
----------------------------------------------------------------------------------------------------------------
Part I..............................     $2,672,830,000                 NA                 NA     $2,672,830,000
Part II \1\.........................      4,840,153,000       $317,409,000       $116,754,000      5,274,316,000
Part III \2\........................      5,075,646,000        896,287,000        768,702,000      6,740,635,000
Part IV.............................        784,569,000      1,159,778,000      1,175,398,000      3,119,745,000
                                     ---------------------------------------------------------------------------
      Total.........................     13,373,198,000      2,373,474,000      2,060,854,000     17,807,526,000
----------------------------------------------------------------------------------------------------------------
\1\ Includes transfer of $133,000,000 from ``Homeowners Assistance Fund, Defense.''                             
\2\ Includes: Rescission of $507,692,000 (P.L. 103-211); rescission of $32,000,000 (P.L. 104-6).                
\3\ Includes rescissions enacted in Public Law 105-18, as follows: Part II--$35,391,000; Part III--$75,638,000; 
  and Part IV--$22,971,000.                                                                                     

                       environmental restoration

    Since the start of the current process for Base Realignment 
and Closure, Military Construction Appropriations Acts have 
appropriated a net total of $15,746,672,000 for the entire 
program for fiscal years 1990 through 1997. Within this total, 
the Department has allocated $4,149,900,000 for activities 
associated with environmental restoration.
    The Committee is concerned that the design and cost of 
environmental restoration efforts should be tailored to match 
the proposed re-use of an installation in order to assure that 
costs are reasonable and affordable. Therefore, the Committee 
continues to recommend statutory language to establish a 
ceiling on the level of funding for environmental restoration, 
unless the Secretary of Defense determines additional 
obligations are necessary and notifies the Committees on 
Appropriations of his determination and the necessary reasons 
for the increase.
    The following table displays the statutory ceiling 
established by the Committee and is equal to the Department's 
execution plan for fiscal year 1998.

------------------------------------------------------------------------
                                                           Ceiling on   
              Account                 Total program      environmental  
                                                       restoration costs
------------------------------------------------------------------------
BRAC II...........................       $116,754,000       $105,224,000
BRAC III..........................        768,702,000        398,499,000
BRAC IV...........................      1,175,398,000        353,604,000
                                   -------------------------------------
      Total.......................      2,060,854,000        857,327,000
------------------------------------------------------------------------

    The Committee directs the Department of Defense to devote 
the maximum amount of resources to actual cleanup and, to the 
greatest extent possible, to limit resources expended on 
administration, support, studies, and investigations.

                         construction projects

    The Department of Defense has requested a total of 
$461,894,000 within the fiscal year 1998 budget request for 
base realignment and closure for construction projects funded 
under the Base Realignment and Closure Accounts, Parts II, III, 
and IV. The Committee recommends full funding for these 
important projects. The Committee provides approval and 
appropriated funds for the following construction projects as 
contained in Executive Summary of Justification Data submitted 
to Congress February 1997:

------------------------------------------------------------------------
                                                                Amount  
   Component/State/Project description       BRAC  round     (thousands)
------------------------------------------------------------------------
Army BRAC III construction, Fiscal Year                                 
 1998:                                                                  
    Texas:                                                              
        Fort Bliss:                                                     
          Repair Aircraft Hangar (46865)  III..............        3,650
                                                            ------------
            Subtotal Army Texas.........  .................        3,650
                                                            ============
                  Total for Army BRAC     .................        3,650
                   III Construction,                                    
                   Fiscal Year 1998.                                    
                                                            ============
Army BRAC IV Construction, Fiscal Year                                  
 1998:                                                                  
    Alaska:                                                             
        Fort Wainwright:                                                
          Missile Test Facility (46159).  IV...............          600
                                                            ------------
            Subtotal Army Alaska........  .................          600
                                                            ============
    California:                                                         
        Camp Parks:                                                     
          Army Reserve Center Facility    IV...............        9,500
           (46206).                                                     
        Sierra Army Depot:                                              
          Consolidated Security (45872).  IV...............          900
        Travis AFB:                                                     
          Administrative Facility         IV...............        2,250
           (47187).                                                     
                                                            ------------
            Subtotal Army California....  .................       12,650
                                                            ============
    Colorado:                                                           
        Fitzsimmons Army Medical Center:                                
          Sanitary Sewer (46341)........  IV...............        2,100
        Fort Carson:                                                    
          Readiness Group Administrative  IV...............        2,500
           Facility (46413).                                            
                                                            ------------
            Subtotal Army Colorado......  .................        4,600
                                                            ============
    District of Columbia:                                               
        Walter Reed AMC:                                                
          Nurse Training Facility         IV...............        1,500
           (463342).                                                    
                                                            ------------
            Subtotal Army District of     .................        1,500
             Columbia.                                                  
                                                            ============
    Maryland:                                                           
        Fort Detrick:                                                   
          Health Clinic (46329).........  IV...............          650
        Fort Meade:                                                     
          Administrative Facility         IV...............        6,300
           (47237).                                                     
                                                            ------------
            Subtotal Army Maryland......  .................        6,950
                                                            ============
    Michigan:                                                           
        Detroit Arsenal:                                                
          Storage Facility (46300)......  IV...............        5,900
                                                            ------------
            Subtotal Army Michigan......  .................        5,900
                                                            ============
    Missouri:                                                           
        Fort Leonard Wood:                                              
          Range Modifications (46094)...  IV...............       17,500
          Military Operations in          IV...............        6,900
           Urbanized Terrain Facility                                   
           (45892).                                                     
                                                            ------------
            Subtotal Army Missouri......  .................       24,400
                                                            ============
    Nevada:                                                             
        Hawthorne Army Ammunition Plant:                                
          Warehouse (46217).............  IV...............        1,550
        Nellis AFB:                                                     
          Administrative Facility         IV...............        3,850
           (46291).                                                     
                                                            ------------
            Subtotal Army Nevada........  .................        5,400
                                                            ============
    New York:                                                           
        Fort Totten:                                                    
          Storage facility (46258)......  IV...............        1,900
                                                            ------------
            Subtotal Army New York......  .................        1,900
                                                            ============
    South Carolina:                                                     
        Fort Jackson:                                                   
          DOD Polygraph Instructional     IV...............        4,600
           Facility (45839).                                            
                                                            ------------
            Subtotal Army South Carolina  .................        4,600
                                                            ============
    Virginia:                                                           
        Fort Pickett:                                                   
          Reserve Center Building         IV...............        3,100
           (46354).                                                     
                                                            ------------
            Subtotal Army Virginia......  .................        3,100
                                                            ============
    Washington:                                                         
        Fort Lewis:                                                     
          Center for Health Promotion     IV...............        3,150
           (46056).                                                     
                                                            ------------
            Subtotal Army Washington....  .................        3,150
                                                            ============
    Various Locations:                                                  
        Program Management..............  IV...............        3,750
                                                            ============
            Total for Army BRAC IV        .................       78,500
             Construction, Fiscal Year                                  
             1998.                                                      
                                                            ============
Navy BRAC III Construction, Fiscal Year                                 
 1998:                                                                  
    California:                                                         
        Naval Air Station Lemoore:                                      
          Administrative Office (186T)..  III..............        2,586
        Marine Corps Air Station                                        
         Miramar:                                                       
          Support Facilities (007T).....  III..............       48,773
        Pacific Fleet Antisubmarine                                     
         Warfare Training Center San                                    
         Diego:                                                         
          Gym (387T)....................  III..............        3,501
        Naval Submarine Base San Diego:                                 
          Pier Renovation (124T)........  III..............          891
        Public Works Center San Diego:                                  
          Public Works Shop (175T)......  III..............        1,821
                                                            ------------
            Subtotal Navy California....  .................       57,572
                                                            ============
    Florida:                                                            
        Naval Aviation Depot                                            
         Jacksonville:                                                  
          Administrative Building (220T)  III..............        5,074
        Naval Air Station Jacksonville:                                 
          Aviation Physiology Training    III..............        3,383
           Building (831T).                                             
        Naval Training Center Orlando:                                  
          Facility Modifications (001T).  III..............        2,686
                                                            ------------
            Subtotal Navy Florida.......  .................       11,143
                                                            ============
    Georgia:                                                            
        Naval Air Station Atlanta:                                      
          Marine Reserve Training         III..............        9,053
           Facility (906T).                                             
                                                            ------------
            Subtotal Navy Georgia.......  .................        9,053
                                                            ============
    Hawaii:                                                             
        Pacific Missile Range Facility                                  
         Barking Sands:                                                 
          Ordnance Facilities (297T)....  III..............          612
        Marine Corps Station Kaneohe                                    
         Bay:                                                           
          Aviation Supply Facilities      III..............        1,491
           (274T).                                                      
          Utilities Upgrade (504T)......  III..............        2,168
          Ordnance Facilities (508T)....  III..............        1,160
        Naval Station Pearl Harbor:                                     
          Fleet Imaging Center (524T)...  III..............        1,005
        Public Works Center Pearl                                       
         Harbor:                                                        
          Utility System Modifications    III..............        1,492
           (539T).                                                      
                                                            ------------
            Subtotal Navy Hawaii........  .................        7,928
                                                            ============
    Virginia:                                                           
        Naval Station Norfolk:                                          
          Adminstrative Facility (360T).  III..............          995
                                                            ------------
            Subtotal Navy Virginia......  .................          995
                                                            ============
    Washington:                                                         
        Naval Hospital Bremerton:                                       
          Outpatient Clinic (019T)......  III..............       10,409
                                                            ------------
            Subtotal Navy Washington....  .................       10,409
                                                            ============
    Wisconsin:                                                          
        Fort McCoy:                                                     
          Equipment Maintenance Facility  III..............        2,295
           (701T).                                                      
                                                            ------------
            Subtotal Navy Wisconsin.....  .................        2,295
                                                            ============
            Total for Navy BRAC III       .................       99,395
             Construction, Fiscal Year                                  
             1998.                                                      
                                                            ============
Navy BRAC IV Construction, Fiscal Year                                  
 1998:                                                                  
    California:                                                         
        Marine Corps Air Station                                        
         Miramar:                                                       
          Administrative/Training Spaces  IV...............        1,403
           (020U).                                                      
        Naval Air Station North Island:                                 
          Operational Facility and        IV...............       28,750
           Parking (820U).                                              
          Intermediate Maintenance        IV...............        1,273
           Facility (822U).                                             
                                                            ------------
            Subtotal Navy California....  .................       31,426
                                                            ============
    District of Columbia:                                               
        Commandant Naval District                                       
         Washington:                                                    
          Naval Sea Systems Command       IV...............       86,045
           Headquarters Relocation                                      
           (088U).                                                      
                                                            ------------
            Subtotal Navy District of     .................       86,045
             Columbia.                                                  
                                                            ============
    Florida:                                                            
        Naval Air Station Jacksonville:                                 
          Medical/Dental Additions        IV...............        2,985
           (231U).                                                      
        S-3 Naval Maintenance Training                                  
         Group:                                                         
          Modifications (239U)..........  IV...............        1,329
                                                            ------------
            Subtotal Navy Florida.......  .................        4,314
                                                            ============
    Guam:                                                               
        Naval Activities:                                               
          Building Renovation (416U)....  IV...............          597
                                                            ------------
            Subtotal Navy Guam..........  .................          597
                                                            ============
    Pennsylvania:                                                       
        Naval Surface Warfare Center                                    
         Philadelphia:                                                  
          Acoustics R&D; Facility (185U).  IV...............        6,151
                                                            ------------
            Subtotal Navy Pennsylvania..  .................        6,151
                                                            ============
    Virginia:                                                           
        Naval Air Station Oceana:                                       
          Flight Simulator Building       IV...............        8,998
           Addition (160U).                                             
          Corrosion Control Hangar        IV...............        4,775
           (576U).                                                      
          Hangar Utilities Improvements   IV...............        1,244
           (165U).                                                      
          F/A 18 Aviation Maintenance     IV...............        2,686
           Additions (164U).                                            
          Renovate/Addition Training      IV...............        5,671
           Facility (161U).                                             
        Fleet Industrial Supply Center                                  
         Williamsburg:                                                  
          Building Renovation (028U)....  IV...............        2,437
          Cargo Staging Area (029U).....  IV...............        1,443
                                                            ------------
            Subtotal Navy Virginia......  .................       27,254
                                                            ============
            Total Navy BRAC IV            .................      155,787
             Construction, Fiscal Year                                  
             1998.                                                      
                                                            ============
Air Force BRAC III Construction, Fiscal                                 
 Year 1998:                                                             
    California:                                                         
        Travis AFB:                                                     
          Land Purchase (XDZT973300)....  III..............        2,050
                                                            ------------
            Total for Air Force BRAC III  .................        2,050
             Construction, Fiscal Year                                  
             1998.                                                      
                                                            ============
Air Force BRAC III Family Housing,                                      
 Fiscal Year 1998:                                                      
    California:                                                         
        Travis AFB:                                                     
          Improve Family Housing 375      III..............       46,010
           units (XDAT950000).                                          
                                                            ------------
            Total for Air Force BRAC III  .................       46,010
             Family Housing, Fiscal Year                                
             1998.                                                      
                                                            ============
Air Force BRAC IV Construction, Fiscal                                  
 Year 1998:                                                             
    California:                                                         
        Beale AFB:                                                      
          Dining Facility (PRJ891009R1).  IV...............        2,100
          938 Engineering Installation    IV...............        8,100
           Squadron (PRJY911023R2).                                     
          Enlisted Dormitory              IV...............        9,000
           (PRJY93103R2).                                               
          Add to Child Development        IV...............        2,100
           Center (PRJY95301R1).                                        
          Vehicle Maintenance Facility    IV...............        1,450
           (PRJY953009R1).                                              
          Air Force Reserve KC-135        IV...............        1,700
           Flight Simulator                                             
           (PRJY953046R1).                                              
        Palmdale Plant 42:                                              
          Add/Alter Secure Warehouse      IV...............          580
           (PRJY953008R2).                                              
                                                            ------------
            Subtotal Air Force            .................       25,030
             California.                                                
                                                            ============
    Colorado:                                                           
        Falcon AFB:                                                     
          Satellite Control Facility      IV...............       16,000
           (GLEN973008A).                                               
          Add to Dining Facility          IV...............          500
           (GLEN973009).                                                
          Technical Support Facility      IV...............        6,400
           (GLEN973010).                                                
          Alter Operations Support        IV...............          760
           Facility (GLEN973020).                                       
          Add to Fitness Center           IV...............          300
           (GLEN973023).                                                
        Peterson AFB:                                                   
          Enlisted Dormitory              IV...............        1,200
           (TDKA963004).                                                
                                                            ------------
            Subtotal Air Force Colorado.  .................       25,160
                                                            ============
    New York:                                                           
        Fort Drum:                                                      
          Vehicle Operations Heated       IV...............        1,700
           Parking (WOXG959613).                                        
          Add to Fire Station             IV...............          300
           (FPBB969510).                                                
                                                            ------------
            Subtotal Air Force New York.  .................        2,000
                                                            ============
    Ohio:                                                               
        Wright-Patterson AFB:                                           
          Renovate Support Facility       IV...............        2,500
           (PRJY921012R1).                                              
                                                            ------------
            Subtotal Air Force Ohio.....  .................        2,500
                                                            ============
    Oklahoma:                                                           
        Vance AFB:                                                      
          Add to Child Development        IV...............          330
           Center (XTLF983303).                                         
                                                            ------------
            Subtotal Air Force Oklahoma.  .................          330
                                                            ============
    Texas:                                                              
        Brooks AFB:                                                     
          Add/Alter Life Sciences/        IV...............        3,900
           Textile Laboratory                                           
           (CNBC993000).                                                
        Kelly AFB:                                                      
          Communications Infrastructure   IV...............        2,500
           Support (MBPB993225R1).                                      
        Lackland AFB:                                                   
          838th Engineer Installation     IV...............        5,600
           Squadron (MBPB993201R1).                                     
          Child Development Center        IV...............          480
           (MBPB993209R2).                                              
          Add to Auto Hobby Shop          IV...............        1,100
           (MBPB993222R1).                                              
        Laughlin AFB:                                                   
          Engine Staging Facility         IV...............        2,950
           (MXDP973004R2).                                              
                                                            ------------
            Subtotal Air Force Texas....  .................       16,530
                                                            ============
        Various Locations:                                              
          Planning and Design (BCL98RD4)  IV...............        4,157
                                                            ------------
            Total for Air Force BRAC IV   .................       75,707
             Construction, Fiscal Year                                  
             1998.                                                      
                                                            ============
Air Force BRAC IV Family Housing, Fiscal                                
 Year 1998:                                                             
    Texas:                                                              
        Lackland AFB:                                                   
          General Officers Quarters       IV...............          790
           (MBPB99203R2).                                               
                                                            ------------
            Total for Air Force BRAC IV   .................          790
             Family Housing, Fiscal Year                                
             1998.                                                      
                                                            ------------
------------------------------------------------------------------------
Note: Defense Logistics Agency and Defense Information Systems Agency   
  BRAC III and IV Construction, Fiscal Year 1998. Defense Logistics     
  Agency and Defense Information Systems Agency have no construction    
  projects relating to any BRAC round requested in fiscal year 1998.    

                       Administrative Provisions

    The Department of Defense is required to notify the 
appropriate Committees of Congress 21 days prior to the 
initiation of any new project which has not been included in 
the Department's budget request for the current (or any 
previous) fiscal year. As in the case with other military 
construction projects, reprogramming requests shall only be 
required when the project cost exceeds the funded amount by 
more than 25 percent or $2,000,000, whichever is less. Thus, if 
the Department wishes to accelerate an outyear project into the 
current fiscal year, a 21-day notification and a reprogramming 
request (citing the source of funds) is required. But if the 
Department wishes to finance a previously approved prior year 
project into the current fiscal year, no notification or 
reprogramming request is required.

                  Base Realignment and Closure, Part I

    The Committee notes that fiscal year 1995 was the last year 
for appropriations into this account.

                 Base Realignment and Closure, Part II

                                                                        
                                                                        
                                                                        
Fiscal year 1997:                                                       
    Appropriation.....................................      $352,800,000
    Rescission........................................       -35,391,000
      Net.............................................       317,409,000
Fiscal year 1998 estimate.............................       116,754,000
Committee recommendation in the bill..................       116,754,000
Comparison with:                                                        
    Fiscal year 1997 net appropriation................      -200,655,000
    Fiscal year 1998 estimate.........................                 0
                                                                        

    The Committee recommends a total of $116,754,000 for Base 
Realignment and Closure, Part II for fiscal year 1998. This is 
equal to the budget request for fiscal year 1998 and a decrease 
of $200,655,000 below the net amount appropriated for fiscal 
year 1997. Below is the recommended distribution of funds as 
requested:

                                                                        
                           Activity                          Amount     
                                                                        
Military Construction.................................                $0
Family Housing........................................                 0
Environmental.........................................       105,224,000
Operations and Maintenance............................        11,530,000
Military Personnel (PCS)..............................                 0
Other.................................................                 0
Revenues..............................................                 0
                                                       -----------------
    Total.............................................       116,754,000
                                                                        

                 Base Realignment and Closure, Part III

Fiscal year 1997:
    Appropriation.......................................    $971,925,000
    Rescission..........................................     -75,638,000
      Net...............................................     896,287,000
Fiscal year 1998 estimate...............................     768,702,000
Committee recommendation in the bill....................     768,702,000
Comparison with:
    Fiscal year 1997 net appropriation..................    -127,585,000
    Fiscal year 1998 estimate...........................               0

    The Committee recommends a total of $768,702,000 for Base 
Realignment and Closure, Part III for fiscal year 1998. This is 
equal to the budget request for fiscal year 1998 and a decrease 
of $127,585,000 below the net amount appropriated for fiscal 
year 1997. Below is the recommended distribution of funds as 
requested:

        Activity                                                  Amount
Military Construction...................................   $105,095,000 
Family Housing..........................................     46,010,000 
Environmental...........................................    398,499,000 
Operations and Maintenance..............................    212,401,000 
Military Personnel (PCS)................................      6,697,000 
Other...................................................               0
Revenues................................................               0
                    --------------------------------------------------------
                    ____________________________________________________
    Total...............................................    768,702,000 

    california--presidio of san francisco: environmental restoration

    The Committee is concerned that environmental restoration 
of the Presidio of San Francisco should meet the deadlines 
identified in the National Park Service's General Management 
Plan. Therefore, the Committee directs the Secretary of the 
Army to report the detailed plan for achieving environmental 
restoration, as well as steps being taken to coordinate Army 
cleanup activities with General Management Plan deadlines. This 
report is to be submitted to the Committee by September 8, 
1997.

                       virginia--vint hill farms

    The Committee is concerned for the successful re-
development of Vint Hill Farms Station. Therefore, the 
Secretary of the Army is directed to report his recommendations 
regarding the demolition and asbestos removal that may be 
required. This report is to be submitted to the Committee by 
September 15, 1997.

                 Base Realignment and Closure, Part IV

Fiscal year 1997:
    Appropriation.......................................  $1,182,749,000
    Rescission..........................................     -22,971,000
      Net...............................................   1,159,778,000
Fiscal year 1998 estimate...............................   1,175,398,000
Committee recommendation in the bill....................   1,175,398,000
Comparison with:
    Fiscal year 1997 net appropriation..................     +15,620,000
    Fiscal year 1998 estimate...........................               0

    The Committee recommends a total of $1,175,398,000 for Base 
Realignment and Closure, Part IV for fiscal year 1998. This is 
equal to the budget request for fiscal year 1998 and an 
increase of $15,620,000 above the net amount appropriated for 
fiscal year 1997. Below is the recommended distribution of 
funds as requested:

        Activity                                                  Amount
Military Construction...................................    $309,994,000
Family Housing..........................................         790,000
Environmental...........................................     353,604,000
Operations and Maintenance..............................     487,151,000
Military Personnel (PCS)................................         739,000
Other...................................................      23,120,000
Revenues................................................               0
                    --------------------------------------------------------
                    ____________________________________________________
    Total...............................................   1,175,398,000

     Kentucky--Naval Ordnance Station, Louisville: Environmental  
                              Restoration

    The Committee recommends $4,146,000 for environmental 
restoration at Naval Ordnance Station, Louisville, Kentucky, as 
requested. The Committee will expect the Navy to expedite its 
work to determine the impact, effect, and environmental safety 
of dioxin compounds that have been detected in trace amounts. 
The Committee notes that the Navy is budgeting $5,140,000 for 
the continuation of environmental assessment and remediation of 
the privatized Naval Ordnance Station, Louisville, facility 
during fiscal year 1999. The Secretary of the Navy is directed 
to report to the Committee by December 15, 1997 regarding the 
current status of this environmental restoration work, as well 
as the plan for completion of this effort.

                           General Provisions

    The bill carries a number of routine General Provisions 
that have been included for several years.
    The following is a further description of the Committee's 
recommendation regarding sections 101, 112, and 124 of the 
General Provisions.

                       ``Cost-Plus'' Contracting

    Section 101 of the General Provisions is intended to 
prevent the use of cost-plus-fixed-fee contracts for 
construction. In the fiscal year 1996 Military Construction 
Appropriations Act, this section was amended to provide an 
exception to the prohibition, in the case of contracts for 
environmental restoration at bases being closed when payments 
are made from a Base Realignment and Closure Account. This 
exception was added in recognition of the fact that unknown 
factors in environmental restoration efforts make this 
exception a practical necessity in order to allow such 
contracts to proceed.
    This year's budget request proposed language (with 
subsequent technical corrections) that was intended to further 
expand the exception to the prohibition in order to exempt all 
contracts for all purposes which are funded from the Base 
Realignment and Closure accounts, particularly operation and 
maintenance contracts. The Committee does not recommend this 
further expansion to the exception. If the Department wishes to 
pursue this matter in the future, the Committee will expect 
detailed justification citing instances in which closure and 
realignment actions have been impeded by the existing language 
in section 101.
    With regard to the use of project labor agreements in 
federal contracts for construction, the Secretary of Defense is 
directed to report to the Committee not later than September 8, 
1997 on whether such agreements constitute cost reimbursement 
agreements, and whether the prohibition contained in section 
101 applies to such agreements.

                            Kwajalein Atoll

    Section 112 of the General Provisions permits a preference 
for American contractors in the United States territories and 
possessions in the Pacific and on Kwajalein Atoll, and in 
countries bordering the Arabian Gulf. At the request of the 
Department, the Committee recommends modifying this language so 
that it does not apply in the case of Marshallese contractors.

                 Housing Revitalization Support Office

    The Committee recommends a new General Provision (section 
124), which clarifies that appropriations made available to the 
Department of Defense Family Housing Improvement Fund shall be 
the sole source of funds available for planning, 
administrative, and oversight costs relating to military family 
housing and military unaccompanied housing privatization 
initiatives. The Committee is taking this action to assure that 
the administrative costs of such initiatives will remain under 
the jurisdiction of the Military Construction Appropriations 
bill.
    The Housing Revitalization Support Office (HRSO) has just 
completed its first year of operations as the centralized 
administrative office for managing the Department's military 
housing privatization efforts. The Committee is concerned with 
the distribution of resources between HRSO's staff and its 
consultant expenses. It is the Committee's strong view that 
HRSO should develop in-house expertise in private sector 
operations in order to effectively manage this very important 
program that shows so much promise, and to reduce its reliance 
upon consultants. The Committee will expect that the 
explanatory materials in support of the fiscal year 1999 budget 
request for HRSO planning, administrative, and oversight costs 
will report on steps being taken to address the Committee's 
concern.

                 Changes in Application of Existing Law

    Pursuant to clause 3 of rule XXI of the House of 
Representatives, the following statements are submitted 
describing the effect of provisions in the accompanying bill 
which directly or indirectly change the application of existing 
law.
    Language is included in various parts of the bill to 
continue on-going activities which require annual authorization 
or additional legislation, which to date has not been enacted.
    The bill includes a number of provisions which 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.
    The bill provides that appropriations shall remain 
available for more than one year for some programs for which 
the basic authority legislation does not presently authorize 
such extended availability.
    A provision of the ``Military Construction, Defense-wide'' 
account which permits the Secretary of Defense to transfer 
funds to other accounts for military construction or family 
housing.
    A provision of the ``Base Realignment and Closure Account, 
Part II'' states that not more than $105,224,000 of the funds 
appropriated shall be available solely for environmental 
restoration.
    A provision of the ``Base Realignment and Closure Account, 
Part III'' states that not more than $398,499,000 of the funds 
appropriated shall be available solely for environmental 
restoration.
    A provision of the ``Base Realignment and Closure Account, 
Part IV'' states that not more than $353,604,000 of the funds 
appropriated shall be available solely for environmental 
restoration.
    Section 101 of the General Provisions states that none of 
the funds appropriated in Military Construction Appropriations 
Acts shall be expended for payments under a cost-plus-a-fixed-
fee contract for work, where cost estimates exceed $25,000, to 
be performed within the United States, except Alaska, without 
the specific approval in writing of the Secretary of Defense, 
except in the case of contracts for environmental restoration 
at base closure sites.
    Section 102 of the General Provisions permits use of funds 
for hire of passenger motor vehicles.
    Section 103 of the General Provisions permits use of funds 
for Defense Access Roads.
    Section 104 of the General Provisions prohibits 
construction of new bases inside the continental United States 
for which specific appropriations have not been made.
    Section 105 of the General Provisions limits the use of 
funds for purchase of land or land easements.
    Section 106 of the General Provisions prohibits the use of 
funds to acquire land, prepare a site, or install utilities for 
any family housing except housing for which funds have been 
made available.
    Section 107 of the General Provisions limits the use of 
minor construction funds to transfer or relocate activities 
among installations.
    Section 108 of the General Provisions prohibits the 
procurement of steel unless American producers, fabricators, 
and manufacturers have been allowed to compete.
    Section 109 of the General Provisions prohibits payment of 
real property taxes in foreign nations.
    Section 110 of the General Provisions prohibits 
construction of new bases overseas without prior notification.
    Section 111 of the General Provisions establishes a 
threshold for American preference of $500,000 relating to 
architect and engineer services in Japan, in any NATO member 
country, and in the Arabian Gulf.
    Section 112 of the General Provisions establishes 
preference for American contractors for military construction 
in the United States territories and possessions in the Pacific 
and on Kwajalein Atoll, or in the Arabian Gulf, except bids by 
Marshallese contractors for military construction on Kwajalein 
Atoll.
    Section 113 of the General Provisions requires the 
Secretary of Defense to give prior notice to Congress of 
military exercises involving construction in excess of 
$100,000.
    Section 114 of the General Provisions limits obligations 
during the last two months of the fiscal year.
    Section 115 of the General Provisions permits funds 
appropriated in prior years to be available for construction 
authorized during the current session of Congress.
    Section 116 of the General Provisions permits the use of 
expired or lapsed funds to pay the cost of supervision for any 
project being completed with lapsed funds.
    Section 117 of the General Provisions permits obligation of 
funds from more than one fiscal year to execute a construction 
project, provided that the total obligation for such project is 
consistent with the total amount appropriated for the project.
    Section 118 of the General Provisions allows expired funds 
to be transferred to the ``Foreign Currency Fluctuations, 
Construction, Defense'' account.
    Section 119 of the General Provisions directs the Secretary 
of Defense to report annually regarding the specific actions to 
be taken during the current fiscal year to encourage other 
member nations of the North Atlantic Treaty Organization, 
Japan, Korea, and United States allies in the Arabian Gulf to 
assume a greater share of the common defense burden.
    Section 120 of the General Provisions allows transfer of 
proceeds from ``Base Realignment and Closure Account, Part I'' 
to the continuing Base Realignment and Closure accounts.
    Section 121 of the General Provisions prohibits expenditure 
of funds except in compliance with the Buy American Act.
    Section 122 of the General Provisions states the Sense of 
the Congress notifying recipients of equipment or products 
authorized to be purchased with financial assistance provided 
in this Act to purchase American-made equipment and products.
    Section 123 of the General Provisions permits the transfer 
of funds from the Base Realignment and Closure accounts to the 
``Homeowners Assistance Fund, Defense.''
    Section 124 of the General Provisions states that the 
Department of Defense Family Housing Improvement Fund shall be 
the sole source of funds available for administrative costs 
relating to military family housing and military unaccompanied 
housing privatization initiatives.
    The Committee recommends deleting the following General 
Provisions which were included in the fiscal year 1997 Military 
Construction Appropriations Act (Public Law 104-196), because 
these provisions are no longer required [section numbers refer 
to sections contained in Public Law 104-196]:
    Section 123, requiring the National Guard Bureau to prepare 
and present annually a future years defense plan.
    Section 124, stating the sense of the Congress regarding 
the naming of buildings at Redstone Arsenal.

                  Compliance With Rule XIII--Clause 3

    In compliance with clause 3 of rule XIII of the House of 
Representatives, the Committee reports that it recommends no 
changes in existing law made by the bill, as reported.

                  Appropriations Not Authorized by Law

    Pursuant to clause 3 of rule XXI of the House of 
Representatives, the following table lists the appropriations 
in the accompanying bill which are not authorized by law:

  Military Construction, Army
  Military Construction, Navy
  Military Construction, Air Force
  Military Construction, Defense-wide
  Military Construction, Army National Guard
  Military Construction, Air National Guard
  Military Construction, Army Reserve
  Military Construction, Naval Reserve
  Military Construction, Air Force Reserve
  North Atlantic Treaty Organization Security
        Investment Program
  Family Housing, Construction, Army
  Family Housing, Operation and Maintenance, Army
  Family Housing, Construction, Navy and Marine Corps
  Family Housing, Operation and Maintenance, Navy
        and Marine Corps
  Family Housing, Construction, Air Force
  Family Housing, Operation and Maintenance, Air Force
  Family Housing, Construction, Defense-wide
  Family Housing, Operation and Maintenance, Defense-wide
  Base Realignment and Closure Account, Part II
  Base Realignment and Closure Account, Part III
  Base Realignment and Closure Account, Part IV

    The Committee notes that authorization for appropriations 
in this bill is contained in H.R. 1119, which was reported by 
the National Security Committee on June 16, 1997. It is 
anticipated the authorization will be enacted into law later 
this year.

                           Transfer of Funds

    Pursuant to clause 1(b) of rule X of the House of 
Representatives, a statement is required describing the 
transfer of funds provided in the accompanying bill. Sections 
115, 118, 120, and 123 of the General Provisions, and language 
included under ``Military Construction, Defense-wide'' provide 
certain transfer authority.

                          Rescission of Funds

    In compliance with clause 1(b) of rule X of the House of 
Representatives, the Committee reports that it recommends no 
rescissions in the bill, as reported.

                        Constitutional Authority

    Clause 2(l)(4) of rule XI of the Rules of the House of 
Representatives states that:

          ``Each report of a committee on a bill or joint 
        resolution of a public character, shall include a 
        statement citing the specific powers granted to the 
        Congress in the Constitution to enact the law proposed 
        by the bill or joint resolution.''

    The Committee on Appropriations bases its authority to 
report this legislation from Clause 7 of Section 9 of Article I 
of the Constitution of the United States of America which 
states:

          ``No money shall be drawn from the Treasury but in 
        consequence of Appropriations made by law * * *''

    Appropriations contained in this bill are made pursuant to 
this specific power granted by the Constitution

                   Comparisons With Budget Resolution

    Section 308(a)(1)(A) of the Congressional Budget and 
Impoundment Control Act of 1974 (Public Law 93-344), as 
amended, requires that the report accompanying a bill providing 
new budget authority contain a statement detailing how that 
authority compares with the reports submitted under section 
602(b) of the Act for the most recently agreed to concurrent 
resolution on the budget for the fiscal year. This information 
follows:

                                            [In millions of dollars]                                            
----------------------------------------------------------------------------------------------------------------
                                                602(b) Allocation                         This bill             
                                     ---------------------------------------------------------------------------
                                       Budget authority       Outlays        Budget authority       Outlays     
----------------------------------------------------------------------------------------------------------------
Discretionary.......................             $9,183             $9,965             $9,183             $9,909
Mandatory...........................                  0                  0                  0                  0
----------------------------------------------------------------------------------------------------------------

                       Advance Spending Authority

    This bill provides no advance spending authority.

                    Five-Year Projection of Outlays

    In compliance with section 308(a)(1)(C) of the 
Congressional Budget and Impoundment Control Act of 1974 
(Public Law 93-344), as amended, the following information was 
provided to the Committee by the Congressional Budget Office.

                        [In thousands of dollars]

Budget authority, fiscal year 1998......................      $9,183,000
Outlays:
    1998................................................       3,071,000
    1999................................................       2,847,000
    2000................................................       1,728,000
    2001................................................         906,000
    2002 and beyond.....................................         485,000

    The bill will not affect the levels of revenues, tax 
expenditures, direct loan obligations, or primary loan 
guarantee commitments under existing law.

          Financial Assistance to State and Local Governments

    In accordance with section 308(a)(1)(D) of Public Law 93-
344, the new budget authority and outlays provided by the 
accompanying bill for financial assistance to State and local 
governments are as follows:

                        [In millions of dollars]

New budget authority....................................               0
Fiscal year 1998 outlays resulting therefrom............               0

                               State List

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