H. Rept. 112-491 - 112th Congress (2011-2012)
May 23, 2012, As Reported by the Appropriations Committee

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House Report 112-491 - MILITARY CONSTRUCTION, VETERANS AFFAIRS, AND RELATED AGENCIES APPROPRIATIONS BILL, 2013




[House Report 112-491]
[From the U.S. Government Printing Office]


112th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     112-491

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



 
     MILITARY CONSTRUCTION, VETERANS AFFAIRS, AND RELATED AGENCIES 
                       APPROPRIATIONS BILL, 2013

                                _______
                                

  May 23, 2012.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

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

                              R E P O R T

                             together with

                             MINORITY VIEWS

                        [To accompany H.R. 5854]

    The Committee on Appropriations submits the following 
report in explanation of the accompanying bill making 
appropriations for military construction, the Department of 
Veterans Affairs, and related agencies for the fiscal year 
ending September 30, 2013, and for other purposes.

                                CONTENTS

                                                                   Page
Purpose of the Bill..............................................     2
Summary of Committee Recommendation..............................     2
Comparative Statement of New Budget Authority....................     4
Management and Oversight Initiatives.............................    12
Department of Defense:
    Military Construction........................................    13
    NATO Security Investment Program.............................    23
    Family Housing Construction and Operation and Maintenance....    23
    Chemical Demilitarization Construction, Defense-Wide.........    27
    Department of Defense Base Closure Account 1990..............    27
    Department of Defense Base Closure Account 2005..............    28
    Administrative Provisions....................................    29
Department of Veterans Affairs:
    Overview.....................................................    31
    Veterans Benefits Administration.............................    31
    Veterans Health Administration...............................    34
    National Cemetery Administration.............................    44
    Departmental Administration..................................    46
    Administrative Provisions....................................    57
Related Agencies:
    American Battle Monuments Commission.........................    60
    U.S. Court of Appeals for Veterans Claims....................    61
    Cemeterial Expenses, Army....................................    61
    Armed Forces Retirement Home.................................    62
Overseas Contingency Operations..................................    63
    Administrative Provisions....................................    63
General Provisions...............................................    64
Changes in Application of Existing Law...........................    65
Appropriations Not Authorized by Law.............................    68
Transfer of Funds................................................    70
Rescissions......................................................    71
Constitutional Authority.........................................    71
Comparison With the Budget Resolution............................    72
Five-Year Projection of Outlays..................................    72
Assistance to State and Local Governments........................    72
Statement of General Performance Goals and Objectives............    72
Ramseyer Rule....................................................    73
Full Committee Votes.............................................    73
Disclosure of Earmarks and Congressionally Directed Spending 
  Items..........................................................    73
State Project List...............................................    73

                          Purpose of the Bill

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

                  Summary of Committee Recommendation

    The Committee recommendations continue necessary support 
for servicemembers and veterans, while at the same time the 
Committee is keenly aware of the dire financial situation the 
Nation faces. The scale of the Nation's debt and the continuing 
annual deficit weighed heavily on the Committee as it 
formulated this bill. A driving force behind the Committee 
recommendations is the need to do all that we can to reduce the 
deficit and balance the budget of the United States. Where it 
was prudent, the Committee recommendation rescinds prior year 
funding that is no longer needed for the purpose for which it 
was appropriated while leaving sufficient resources to close 
out contracts. The Committee recommendation does not provide 
the pay raises that were included in the budget request. We 
have included direction to the Department of Defense to report 
on the feasibility of structuring contracts in such a way as to 
encourage efficiency and economy, by returning to contractors a 
portion of any savings they are able to generate as they 
execute construction contracts, while returning a majority of 
those savings to the Treasury to reduce our dependence on debt.
    The Committee recommends $146,385,167,000 in budget 
authority for the fiscal year 2013 programs and activities 
funded in the bill. In addition, advance appropriations of 
$54,462,000,000 are provided for fiscal year 2014 medical 
programs of the Department of Veterans Affairs. The fiscal year 
2013 recommendation is an increase of $10,873,248,000 above the 
fiscal year 2012 enacted level and $693,662,000 below the 
President's request. Included in this amount is $74,638,167,000 
in mandatory budget authority and $71,747,000,000 in 
discretionary budget authority.
    The recommendation reflects the Committee's continued 
commitment to our servicemembers and veterans and to their 
families. The total funding level for military construction and 
family housing is $10,649,317,000, a $2.4 billion reduction 
below the fiscal year 2012 enacted level. A significant portion 
of this decrease is attributed to the deliberate pause in 
military construction by the Air Force. The overall level of 
funding supports the servicemen and women and their families 
who are making sacrifices during this time of war. The programs 
funded in the bill for the Department of Defense address the 
numerous challenges we have asked our military to accomplish 
simultaneously. These funds support continued cleanup of 
military bases closed during previous Base Realignment and 
Closure rounds, resource the military's global re-stationing 
plan, and ensure that our military personnel and their 
families' quality of life is preserved within these plans.
    The total funding level available for fiscal year 2013 for 
the Department of Veterans Affairs is $135,377,850,000, an 
increase of 10.8 percent over the fiscal year 2012 enacted 
level. The recommendation provides funding increases for 
several mandatory veteran benefits programs, as authorized by 
current law. In addition to funds for fiscal year 2013, some of 
which have already been appropriated in advance, the Committee 
recommendation includes $54,462,000,000 in advance 
appropriations for fiscal year 2014 for the three health care 
accounts of the Department.
    The following table compares amounts recommended in the 
bill to the President's request and amounts appropriated in 
fiscal year 2012:

<GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT>

                  Management and Oversight Initiatives

    The Committee believes the effective stewardship of 
taxpayer dollars is of the highest priority. In the interest of 
eliminating waste, fraud, and abuse in Federal programs, the 
Committee has and will continue to use public hearings, 
briefings and information requests, and reviews by the 
Government Accountability Office and the Inspectors General to 
promote strong financial and program management, oversight and 
leadership at the Department of Defense, the Department of 
Veterans Affairs, and other agencies under the jurisdiction of 
this bill.
    The fiscal year 2013 appropriations Act and the 
accompanying report address management challenges of the 
Federal agencies funded herein, including directives to 
strengthen financial and program management, eliminate 
redundancy, and improve implementation and oversight of 
initiatives that support the mission of this bill. The 
Committee will use every means at its disposal to reduce 
mismanagement that results in waste, fraud, and abuse.
    Department of Defense.--In addition to the notification and 
reporting requirements for military construction programs 
contained in Title 10, United States Code, the Committee's 
recommendations include several provisions requiring the 
Department of Defense to report on various aspects of military 
construction programs, or to provide notification to the 
Committee when certain actions are taken. The Committee also 
retains prior approval authority for any reprogramming of funds 
exceeding a specific threshold.
    Department of Veterans Affairs (VA).--With the 
$135,377,850,000 provided for the VA in this bill and the 
increase in the number of veterans seeking VA medical services, 
the Committee believes it is important to strengthen its tools 
to monitor spending as well as the skills and operating 
procedures of the VA workforce. The following initiatives 
demonstrate the Committee's oversight focus:
    Reprogramming requirements and notification of change in 
use of funds.--To address the problem that occurred in the 
fiscal year 2013 budget, when the Committee learned that new 
model estimates dramatically lowered the funding requirements 
for medical care, the Committee proposes bill language 
requiring the VA to notify the Congress by July 31st of each 
year of any significant changes in resource needs. This 
notification would permit the Congress to adjust funding, if 
appropriate, in conference deliberations. In addition, to 
ensure that the Committee is informed of and approves of 
changes in planned uses of medical services funds, the bill 
creates a reprogramming requirement for significant changes in 
funding of non-model initiatives.
    Excessive overhead in medical services funding.--The 
Committee has heard concerns from numerous Members that the VA 
retains too much of the funding provided by Congress at 
headquarters and at the regional health networks instead of 
allowing it to flow through to the medical centers. The 
Committee is investigating the allocation process VA uses, 
mandating that VA provide information annually identifying the 
use of all funding retained at headquarters, as well as the 
funding retained by each network and for which purposes. In 
addition, the Committee is requesting regular budget 
information to better identify administrative expenses that are 
hidden in medical services appropriations.
    Stricter control of construction funding.--Funds for major 
construction projects are currently made available until 
expended. Billions of dollars for these projects remain 
unobligated for years at a time as VA completes designs, 
negotiates with contractors, and complies with local, State, 
and Federal paperwork. The Committee has included language 
limiting the availability of these funds to five years, which 
is the same period of time the Committee makes Military 
Construction funding available. The Committee expects that this 
limitation will force modifications to the VA construction 
process and generate more efficient construction that will 
better serve veterans.
    Bid savings control.--In the past, the VA has had 
considerable flexibility in allocating funding for major 
construction projects. Once funding was appropriated for a 
particular construction project, the Committee received little 
or no useful information about the ongoing status of the 
project, including whether any bid savings have been realized 
by the VA when contracts were awarded. The Committee continues 
bill language first adopted last year requiring the VA to 
notify the Committee of all bid savings totaling $5,000,000 or 
more, or five percent, whichever is less, within 14 days of the 
contract, as well as the proposed use of the funds. 
Additionally, the VA is not permitted to make any change in the 
scope of major construction projects.
    Disability claims backlog reduction.--The Department's 
annual claims receipts are expected to reach 1,250,000 in 2013, 
an increase of almost 60 percent since 2005. Claims are also 
becoming more complex, with a higher number of disabling 
conditions claimed. To address the mounting workload, the 
Department has set as a strategic goal that no claim will be 
more than 125 days old in 2015. Deploying leading-edge, 
powerful 21st century information technology solutions to 
create a smart, paperless claims system which simplifies and 
improves claims processing for timely and accurate decisions 
the first time is key to achieving this goal, and the Committee 
has provided the funding necessary to develop these IT and 
business process solutions.
    Oversight of conference expenses.--In response to recent 
reports of lavish spending at another executive branch agency 
on off-site staff conferences, the Committee requests the 
Office of Inspector General to conduct a review of the policies 
and controls in place at the VA to manage costs associated with 
agency conferences, as well as any vulnerabilities in such 
policies.

                                TITLE I


                         DEPARTMENT OF DEFENSE


                     Military Construction Overview





Fiscal year 2012 enacted level (including rescissions)   $13,049,647,000
Fiscal year 2013 budget request.......................    11,222,710,000
Committee recommendation in the bill (including           10,649,317,000
 rescissions).........................................
Comparison with:
    Fiscal year 2012 enacted level....................   (2,400,330,000)
    Fiscal year 2013 budget request...................     (573,393,000)


    Military construction accounts provide funds for new 
construction, construction improvements, planning and design, 
and host nation support. Projects funded by these accounts 
include facilities for operations, training, maintenance, 
research and development, supply, medical care, and force 
protection, as well as unaccompanied housing, utilities 
infrastructure, and land acquisition.
    The Committee recommends a total appropriation of 
$10,649,317,000 for Military Construction, a decrease of 
$2,400,330,000 from the fiscal year 2012 enacted level and a 
decrease of $573,393,000 below the budget request.
    Reprogramming Guidelines.--The following reprogramming 
guidelines apply for all military construction and family 
housing projects. A project or account (including the sub-
elements of an account) which has been specifically reduced by 
the Congress in acting on the budget request is considered to 
be a Congressional interest item and as such, prior approval is 
required. Accordingly, no reprogramming to an item specifically 
reduced below the threshold by the Congress is permitted, 
except that the Department of Defense may seek reprogramming 
for appropriated increments.
    The reprogramming criteria that apply to military 
construction projects (25 percent of the funded amount or 
$2,000,000, whichever is less) continue to apply to new housing 
construction projects and to improvements over $2,000,000. To 
provide the services the flexibility to proceed with 
construction contracts without disruption or delay, the costs 
associated with environmental hazard remediation such as 
asbestos removal, radon abatement, lead-based paint removal or 
abatement, and any other legislated environmental hazard 
remediation may be excluded, if such remediation requirements 
could not be reasonably anticipated at the time of the budget 
submission. This exclusion applies to projects authorized in 
this budget year, as well as projects authorized in prior years 
for which construction has not been completed. Planning and 
design costs associated with military construction and family 
housing projects may also be excluded from these guidelines. In 
instances where prior approval to a reprogramming request for a 
project or account has been received from the Committees on 
Appropriations of both Houses of Congress, the adjusted amount 
approved becomes the new base for any future increase or 
decrease via below-threshold reprogramming (provided that the 
project or account is not a Congressional interest item as 
defined above).
    In addition to these guidelines, the services are directed 
to adhere to the guidance for military construction 
reprogramming actions and notifications, including the 
pertinent statutory authorities contained in Department of 
Defense Financial Management Regulation 7000.14-R and relevant 
updates and policy memoranda. The Committee further encourages 
the Office of the Director of National Intelligence to use a 
format similar to that used by the Office of the Secretary of 
Defense to submit reprogramming requests.
    Facilities Sustainment, Restoration and Modernization 
(FSRM).--The Department of Defense is directed to continue 
describing on form 1390 the backlog of FSRM requirements at 
installations with future construction projects. For troop 
housing requests, form 1391 should describe any FSRM conducted 
in the past two years. Likewise, future requirements for 
unaccompanied housing at the corresponding installation should 
be included. Additionally, the forms should include English 
equivalent measurements for projects presented in metric 
measurement. Rules for funding repairs of facilities under the 
Operation and Maintenance accounts are described below:
          (1) components of the facility may be repaired by 
        replacement. Such replacement can be up to current 
        standards or codes;
          (2) interior arrangements and restorations may be 
        included as repair;
          (3) additions, new facilities, and functional 
        conversions must be performed as military construction 
        projects. Such projects may be done concurrently with 
        repair projects as long as the final conjunctively 
        funded project is a complete and usable facility; and
          (4) the appropriate service secretary shall notify 
        the appropriate committees 21 days prior to carrying 
        out any repair project with an estimated cost in excess 
        of $7,500,000. The Committee strongly encourages the 
        services and defense agencies to indicate the plant 
        replacement value of the facility to be repaired on 
        each such notification.
    Quarterly summary of notifications.--The Committee directs 
the services and the Office of the Secretary of Defense (on 
behalf of itself and defense agencies) to continue to submit a 
quarterly report listing all notifications that have been 
submitted to the Committees during the preceding three-month 
period.
    Transfer of funds to and from the Foreign Currency 
Fluctuations, Construction, Defense account.--The Committee 
directs the Department of Defense to submit a quarterly report 
to the Committees on Appropriations of both Houses of Congress 
on the transfer of funds from military construction and family 
housing accounts to the Foreign Currency Fluctuations, 
Construction, Defense account. The report shall specify the 
amount transferred to the Foreign Currency account from each 
military construction and/or family housing account, and all 
other accounts for which an appropriation is provided in this 
Act, during the preceding fiscal quarter, and the amounts 
transferred from the Foreign Currency account to the above 
accounts during the same period. This report shall be submitted 
no later than 30 days after the close of each fiscal quarter. 
In addition, the Department of Defense shall notify the 
Committees on Appropriations of both Houses of Congress within 
7 days of transferring any amount in excess of $10,000,000 to 
or from the Foreign Currency account.
    Charter Schools.--Department of Defense installations 
throughout the United States are struggling with the issue of 
dependent education for K-12 students. Frequent moves by 
military families highlight the differences and inequities 
among various state public school systems. An increasing number 
of families are opting for private or home schooling to 
compensate for lack of public education quality and to maintain 
continuity in their child's progress. The 2008 Quadrennial 
Review of Military Compensation (Volume II: Deferred and 
Noncash Compensation) (QRMC) from the U.S. Department of 
Defense, an assessment of the competitiveness of benefits, 
notes in a section on education for dependents that parents 
should be allowed to start charter schools at military 
installations and initiate them in the ``same way that 
civilians can under state law.'' While there is nothing that 
currently prevents such an option--in fact, there are several 
charters operating on military bases at this time--the 
Committee looks forward to the upcoming DOD Education Activity 
report to Congress on this topic. The Committee notes the QRMC 
attention to this challenge and supports efforts to ensure that 
military families are aware of opportunities to access high 
quality education for their children.
    Facilities management, life-cycle costs, and construction 
method alternatives.--The Committee believes that the military 
construction program best serves both our military personnel 
and the taxpayers when projects are open to competitive bidding 
from contractors representing the widest possible range of 
construction methods. To that end, the Committee urges the 
Department of Defense and the execution agents for military 
construction, principally the Army Corps of Engineers and the 
Naval Facilities Engineering Command, to ensure that requests 
for proposals or qualifications do not arbitrarily foreclose, 
discourage, or privilege any type of construction method. The 
Committee continues to encourage a level playing field for both 
traditional construction methods and alternative methods such 
as permanent modular construction. The Committee also 
encourages DOD to evaluate the regular use of carbon fiber grid 
precast concrete technology in military construction projects.
    The Committee is also concerned by the recent report from 
the Government Accountability Office (GAO-10-436) indicating 
that varying services' attitudes toward the life-cycle costs of 
different construction methods were based more on pre-formed 
opinions, personal experiences, and anecdotal evidence rather 
than quantitative information or analyses. The Committee 
therefore urges DOD and the services to conduct further 
research regarding comparative life-cycle costs for differing 
types of construction, establish clear goals and benchmarks, 
and ensure these standards are communicated to contracting 
officials. Until such an empirical basis is established, the 
Committee urges DOD and the services to carefully reconsider 
blanket use of any new life-cycle approaches that depart from 
prior, standard practices.
    Rebates.--The Department of Defense has been increasing the 
use of green technology to reduce energy consumption on 
military installations. The Committee commends this policy but 
is concerned that the Department of Defense is not fully 
utilizing the potential savings and rebates that may be 
available from the use of certain technologies or utilities. 
The Committee directs the Deputy Under Secretary of Defense for 
Installations and Environment to report to the congressional 
defense committees on the amount of rebates the Department has 
been able to capture.
    Center of Excellence for Research and Graduate-level 
Studies.--The Committee is concerned that Air Force facilities 
for graduate-level research have been neglected over the years 
and funding for military construction has been deferred to the 
out years of budget submissions. Many of the research 
facilities have unsafe and limited lab space, inoperable HVAC 
systems, outdated plumbing, water damage and leaks in the roof. 
These deplorable working conditions are hindering the personnel 
conducting research in these facilities. Therefore, the 
Committee urges the Deputy Under Secretary for Installations 
and Environment to assess these aging facilities, how they are 
prioritized for funding and request funding in earlier fiscal 
years.
    Increased Fuel and Training Efficiency.--The Committee is 
aware of proposals by the Department of Defense to use military 
construction funding to construct specialized training runways 
near existing aircraft locations. By constructing these 
specialized runways, the Department of Defense will save 
taxpayer dollars by decreasing the amount of transient flight 
hours required for aircraft to reach their training locations. 
Therefore, the Committee urges the Deputy Under Secretary for 
Installations and Environment to conduct a cost-benefit 
analysis regarding the construction of specialized training 
runways near existing aircraft locations and report back to the 
Committee within 180 days of enactment of this Act.
    Maintenance of Aircraft Hangars.--The Committee recognizes 
the strategic importance of the Air National Guard components 
of the Aerospace Control Alert (ACA) mission and their role in 
our country's homeland defense. The Committee urges the 
Secretary of the Air Force to reprioritize its investments and 
place the maintenance facilities for legacy F-16 fighter 
aircraft with ACA missions that are responsible for high-value 
metropolitan areas at the top of the military construction 
list.
    Bid savings.--The Committee has ascertained from cost 
variation notices required by 10 U.S.C. 2853 that the 
Department of Defense continues to have bid savings on 
previously appropriated military construction projects. 
Although the Committee's recommendation does not include 
rescissions to the Army, Navy, Air Force and Defense-Wide 
military construction accounts as a result of bid savings, the 
Committee directs the Secretary of Defense to submit quarterly 
reports on military construction bid savings.
    Incremental funding.--The Committee has stated repeatedly 
that while projects should be fully funded or separated into 
stand-alone phases where practicable, incremental funding 
should remain an option when it makes fiscal and programmatic 
sense. In some cases, the phased approach can drive up costs by 
requiring inefficient designs and separate bids that leave 
subsequent phases vulnerable to construction price inflation. 
However, the Committee will continue to exercise its 
prerogative to recommend incremental funding when circumstances 
dictate. The Committee therefore recommends incremental funding 
for the Aegis Ashore Missile Defense System Complex in Romania.
    LED lighting technologies.--The Committee understands that 
the use of LED lighting technology at military facilities has 
demonstrated substantial energy efficiencies and cost savings. 
However, the Committee is aware that LED lighting products of 
inferior quality were used at some facilities and installations 
and has resulted in those locations failing to achieve expected 
efficiencies. In some instances, this has led to policies 
prohibiting the use of this technology. Accordingly, the 
Committee directs the Deputy Under Secretary of Defense for 
Installations and Environment to establish minimum quality 
standards for the use of LED lighting products at Department of 
Defense installations and facilities. The standards should take 
into consideration Energy Star ratings and/or the Design Light 
Consortium lighting product recommendations.
    Child Development Centers.--The Committee encourages the 
Department of Defense to reaffirm its commitment to providing 
exceptional child care facilities on all domestic and 
international military installations. The Committee also 
encourages the Department of Defense to ensure that Child 
Development Centers located on military installations offer a 
safe child care environment and meet professional standards for 
early childhood education.
    Sustainable Buildings Policy.--The Committee supports the 
Department of Defense's commitment to green buildings, and its 
goal to promote cost-effective sustainability. However the 
Committee is concerned that the Department of Defense's current 
approach to sustainable construction appears to select one 
green building certification system over others, particularly 
for wood products. The Committee expects the Department to 
ensure equal acceptance of forestry certification systems, and 
that systems designated as American National Standards are 
allowed to compete equally for use in the Department of 
Defense's building construction and major renovations while 
continuing to follow existing Buy America requirements. The 
Committee also strongly urges the Department of Defense to 
incorporate in its Sustainable Buildings Policy energy 
efficiency standards that are cost-effective, incorporate 
Energy Star components, and the results of life cycle 
assessments. The Committee directs the Deputy Under Secretary 
of Defense for Installations and Environment to provide a 
report to the congressional defense committees on the 
Department's efforts not later than 90 days after enactment of 
this Act.
    Energy security.--The Committee strongly supports 
Department of Defense efforts to reduce costs and increase 
energy security through their investments in alternative energy 
sources. The reliance on oil for forward-deployed operations 
leaves the military vulnerable to supply shortages, attacks on 
fuel convoys, and volatile swings in the cost of petroleum. The 
Committee recognizes that investments in clean alternative 
energy sources will make our nation more secure and result in 
significant long term energy savings. Therefore, the Committee 
directs the Department of Defense, as a follow up to the 
Operational Energy Strategy Implementation Plan released on 
March 6, 2012, to report to the congressional defense 
committees on how energy efficient construction on military 
installations will lower operation and maintenance costs. This 
report shall be submitted within 90 days of enactment of this 
Act.
    Military Construction Project Delivery.--The Committee is 
aware that the design-build project delivery method is 
conducted under one guaranteed contract, offers fast track 
aspects, cost savings, and decreased litigation claims. The 
Design-Build method reduces construction costs, speeds up 
construction time and guarantees quality in all measured 
categories. Therefore, the Committee encourages the use of this 
method, when appropriate, in order to provide greater 
efficiency, lower life cycle costs, and expedite construction, 
repairs and alterations of Federal buildings.
    Contract Structures and Management.--The Committee believes 
that structuring contracts and employee compensation with 
incentives to reduce cost by permitting retention of a share of 
savings has the potential to generate substantial economies. 
The Committee directs the Department of Defense to report to 
the Committee on the structure of its contracts for military 
construction, including the portion of contracts awarded on a 
fixed-price basis, those awarded on a cost-plus fixed fee 
basis, and all other contract structures used by the Department 
for its construction programs. For all contracts, the 
Department is directed to report on incentives that are 
included in the contracts to reduce the cost to the government 
and any financial incentives included for completion of 
contracts ahead of schedule or under cost. If such incentives 
do not currently exist, the Department is to report on the 
feasibility of beginning such a program.
    Foreign Materiel Exploitation Labs.--The Committee is 
concerned that Department of Defense intelligence facilities 
that serve multiple agencies and our allies have been neglected 
over the years and funding for military construction has been 
deferred to the out years of budget submissions. Many of the 
labs are deteriorating, in temporary facilities, and lack 
appropriate space. Therefore, the Committee urges the Deputy 
Under Secretary for Installations and Environment to assess 
these aging lab facilities, reassess the funding priorities for 
these facilities and request funding in earlier fiscal years. 
To address the alarming threats faced by the United States, the 
Committee urges the Deputy Under Secretary to prioritize 
funding for these facilities in a much more timely manner. The 
Committee believes that these facilities are valuable national 
security assets that the Department of Defense should maintain 
in a manner that will ensure their vital role in protecting 
U.S. national security interests.

                      Military Construction, Army





Fiscal year 2012 enacted level........................    $3,006,491,000
Fiscal year 2013 budget request.......................     1,923,323,000
Committee recommendation in the bill..................     1,820,323,000
Comparison with:
    Fiscal year 2012 enacted level....................   (1,186,168,000)
    Fiscal year 2013 budget request...................     (103,000,000)


    The Committee recommends an appropriation of $1,820,323,000 
for Military Construction, Army, a decrease of $1,186,168,000 
from the fiscal year 2012 enacted level and a decrease of 
$103,000,000 below the budget request.
    The Committee recommendation does not include $103,000,000 
as requested by the Administration in title I for the cemetery 
expansion Millennium Project. The funds are instead provided in 
title III of this Act under Cemeterial Expenses, Army.

              Military Construction, Navy and Marine Corps





Fiscal year 2012 enacted level........................    $2,112,823,000
Fiscal year 2013 budget request.......................     1,701,985,000
Committee recommendation in the bill..................     1,551,217,000
Comparison with:
    Fiscal year 2012 enacted level....................     (561,606,000)
    Fiscal year 2013 budget request...................     (150,768,000)


    The Committee recommends an appropriation of $1,551,217,000 
for Military Construction, Navy and Marine Corps, a decrease of 
$561,606,000 from the fiscal year 2012 enacted level and a 
decrease of $150,768,000 below the budget request.
    The Committee recommendation transfers six projects 
totaling $150,768,000 from Military Construction, Navy and 
Marine Corps in title I to title IV.

                    Military Construction, Air Force





Fiscal year 2012 enacted level........................    $1,227,058,000
Fiscal year 2013 budget request.......................       388,200,000
Committee recommendation in the bill..................       388,200,000
Comparison with:
    Fiscal year 2012 enacted level....................     (838,858,000)
    Fiscal year 2013 budget request...................             - - -


    The Committee recommends an appropriation of $388,200,000 
for Military Construction, Air Force, a decrease of 
$838,858,000 below the fiscal year 2012 enacted level and the 
same as the budget request.

                  Military Construction, Defense-Wide


              (INCLUDING TRANSFER OF FUNDS AND RESCISSION)




Fiscal year 2012 enacted level........................    $3,431,957,000
Fiscal year 2013 budget request.......................     3,654,623,000
Committee recommendation in the bill..................     3,549,623,000
Comparison with:
    Fiscal year 2012 enacted level....................       117,666,000
    Fiscal year 2013 budget request...................     (105,000,000)


    The Committee recommends an appropriation of $3,569,623,000 
for Military Construction, Defense-Wide, an increase of 
$117,666,000 above the fiscal year 2012 enacted level and a 
decrease of $105,000,000 below the budget request.
    The Committee recommendation includes a reduction to the 
Aegis Ashore Missile Defense System Complex in Romania of 
$75,000,000 and a reduction to contingency construction of 
$10,000,000. The Committee recommendation also includes a 
rescission from prior year unobligated balances in contingency 
construction under Administrative Provisions of title I.
    Transfer of Funds.--The accompanying bill provides transfer 
authority to the Secretary of Defense to allow the transfer of 
funds to such appropriations of the Department of Defense 
available for military construction or family housing as the 
Secretary may designate.
    DODEA School Construction.--The Committee fully supports 
the fiscal year 2013 request for the construction of 10 schools 
in the United States and overseas. The Committee however, is 
concerned that the changes that are occurring across the 
Department of Defense associated with force structure 
reductions may impact whether funding is needed if an 
installation is determined not to be an enduring installation. 
The Committee therefore directs the Director of the Department 
of Defense Education Activity (DODEA) to report on the status 
of DODEA funding and provide by location any funding that has 
been placed on hold for any reason to the congressional defense 
committees 90 days after enactment of this Act.
    Energy Conservation Investment Program.--The Committee 
believes that as new construction and retrofit projects are 
undertaken at facilities to improve building energy efficiency 
and achieve the objectives prescribed in statutes, executive 
orders, and initiatives, the Department of Defense is 
encouraged to utilize new and underutilized, low-cost energy 
efficient technologies that provide the best value to taxpayers 
through minimal lifecycle costs. The Deputy Under Secretary for 
Installations and Environment shall report to the congressional 
defense committees on the Department's plan to implement these 
technologies across the Department of Defense within 60 days of 
enactment of this Act.
    The Committee has been in the forefront of ensuring that 
our military beneficiaries are provided ``world class'' medical 
facilities as a result of the fiscal year 2005 BRAC 
consolidation of Walter Reed Army Medical Center (WRAMC) and 
the National Naval Medical Center (NNMC). The Committee would 
observe that the new community hospital at Fort Belvoir meets 
the expectation of a ``world class'' facility however the 
Committee is disappointed in some of the facilities at Walter 
Reed National Military Medical Center. A most notable 
deficiency is the 3rd floor of Building 19 where the various 
cancer clinics are located as well as the chemotherapy 
treatment area. These facilities are nowhere close to being 
equal to the facilities at the old Walter Reed Army Medical 
Center. The Committee notes that the waiting areas and 
treatment areas are impersonal and not ``patient friendly,'' 
and thus are not conducive to a positive healing environment. 
In addition, there are insufficient facilities for patients 
undergoing chemotherapy treatment. The Committee is aware that 
there are unobligated balances available in the BRAC 2005 
account, and strongly encourages the Department of Defense to 
reprogram sufficient funds to correct these deficiencies.

               Military Construction, Army National Guard





Fiscal year 2012 enacted level........................      $773,592,000
Fiscal year 2013 budget request.......................       613,799,000
Committee recommendation in the bill..................       613,799,000
Comparison with:
    Fiscal year 2012 enacted level....................     (159,793,000)
    Fiscal year 2013 budget request...................             - - -


    The Committee recommends an appropriation of $613,799,000 
for Military Construction, Army National Guard, a decrease of 
$159,793,000 from the fiscal year 2012 enacted level and the 
same as the budget request.
    Enforcement of Border Security.--Recognizing the need to 
bolster resources for the enforcement of border security, the 
Committee encourages the Army National Guard and the Air 
National Guard to consider, design, and construct facilities 
adjacent to our southwestern border that will support National 
Guard activities and house and support defense assets used by 
Customs and Border Protection and other law enforcement 
agencies for the terrestrial, maritime, and aerial surveillance 
of those borders, to include aircraft hangars suitable for 
unmanned aerial systems.

               Military Construction, Air National Guard





Fiscal year 2012 enacted level........................      $116,246,000
Fiscal year 2013 budget request.......................        42,386,000
Committee recommendation in the bill..................        42,386,000
Comparison with:
    Fiscal year 2012 enacted level....................      (73,860,000)
    Fiscal year 2013 budget request...................             - - -


    The Committee recommends an appropriation of $42,386,000 
for Military Construction, Air National Guard, a decrease of 
$73,860,000 below the fiscal year 2012 enacted level and the 
same as the budget request.

                  Military Construction, Army Reserve





Fiscal year 2012 enacted level........................      $280,549,000
Fiscal year 2013 budget request.......................       305,846,000
Committee recommendation in the bill..................       305,846,000
Comparison with:
    Fiscal year 2012 enacted level....................        25,297,000
    Fiscal year 2013 budget request...................             - - -


    The Committee recommends an appropriation of $305,846,000 
for Military Construction, Army Reserve, an increase of 
$25,297,000 above the fiscal year 2012 enacted level and the 
same as the budget request.
    Consolidation of Mission Function.--The Committee supports 
Army Reserve efforts to reduce costs and strengthen command and 
control through consolidated regional reserve facilities such 
as the Army Reserve Center in Worcester, MA, which had been 
identified for a Real Property Exchange by the United States 
government. The Committee supports this consolidation and is 
disappointed that no action has been taken. Since it is the 
Department's intention to consolidate mission function and 
expenditures where appropriate, the Committee remains 
interested in consolidation within this region, given the 
excess mission capacity. The Committee therefore urges the 
Secretary of the Army to identify a suitable and comparable 
site for relocation of all personnel and operations that are 
currently aligned with the existing Army Reserve Center and 
report on any actions taken within 30 days of enactment this 
Act.

                  Military Construction, Navy Reserve





Fiscal year 2012 enacted level........................       $26,299,000
Fiscal year 2013 budget request.......................        49,532,000
Committee recommendation in the bill..................        49,532,000
Comparison with:
    Fiscal year 2012 enacted level....................        23,233,000
    Fiscal year 2013 budget request...................             - - -


    The Committee recommends an appropriation of $49,532,000 
for Military Construction, Navy Reserve, an increase of 
$23,233,000 above the fiscal year 2012 enacted level and the 
same as the budget request.

                Military Construction, Air Force Reserve





Fiscal year 2012 enacted level........................       $33,620,000
Fiscal year 2013 budget request.......................        10,979,000
Committee recommendation in the bill..................        10,979,000
Comparison with:
    Fiscal year 2012 enacted level....................      (22,641,000)
    Fiscal year 2013 budget request...................             - - -


    The Committee recommends an appropriation of $10,979,000 
for Military Construction, Air Force Reserve, a decrease of 
$22,641,000 below the fiscal year 2012 enacted level and the 
same as the budget request.

     North Atlantic Treaty Organization Security Investment Program





Fiscal year 2012 enacted level........................      $247,611,000
Fiscal year 2013 budget request.......................       254,163,000
Committee recommendation in the bill..................       254,163,000
Comparison with:
    Fiscal year 2012 enacted level....................         6,552,000
    Fiscal year 2013 budget request...................             - - -


    The North Atlantic Treaty Organization Security Investment 
Program (NSIP) consists of annual contributions by NATO member 
countries. The program finances the costs of construction 
needed to support the roles of the major NATO commands. The 
investments cover facilities such as airfields, fuel pipelines 
and storage, harbors, communications and information systems, 
radar and navigational aids, and military headquarters, both 
within NATO nations and for ``out of area'' operations such as 
Afghanistan.
    The Committee recommends an appropriation of $254,163,000 
for NSIP, an increase of $6,552,000 above the fiscal year 2012 
enacted level and the same as the budget request.
    The U.S. occasionally has been forced to temporarily delay 
the authorization of projects due to shortfalls in U.S. 
obligation authority. The Committee directs the Secretary of 
Defense to notify the Committee within 14 days of the U.S. 
taking action to temporarily delay the authorization of 
projects, or to temporarily withhold funds from previously 
authorized projects, due to shortfalls in U.S. obligation 
authority.

                        Family Housing Overview





Fiscal year 2012 enacted level........................    $1,682,946,000
Fiscal year 2013 budget request.......................     1,650,781,000
Committee recommendation in the bill..................     1,650,781,000
Comparison with:
    Fiscal year 2012 enacted level....................      (32,165,000)
    Fiscal year 2013 budget request...................             - - -


    Family housing construction accounts provide funds for new 
construction, construction improvements, the Federal government 
costs for family housing privatization projects, and planning 
and design. The operation and maintenance accounts provide 
funds to pay for maintenance and repair, furnishings, 
management, services, utilities, leasing, interest, mortgage 
insurance, and miscellaneous expenses.
    The Committee recommends a total appropriation of 
$1,650,781,000 for family housing construction, family housing 
operation and maintenance, and the homeowners assistance 
program, a decrease of $32,165,000 below the fiscal year 2012 
enacted level and the same as the budget request. The decrease 
below the 2012 enacted level is due partly to the Department of 
Defense's success in implementing the Military Housing 
Privatization Initiative on military installations and the 
reduced requirement for appropriated construction and operating 
costs. The Committee encourages the Department, where feasible, 
to utilize energy efficient, environmentally friendly, and 
easily deployable composite building materials in new family 
housing construction.
    Family housing privatization progress reports.--The 
Committee directs the Department of Defense to continue 
submitting semi-annual progress reports on the family housing 
privatization program, including a breakout of military tenant 
satisfaction rates by project.
    Foreign currency savings and sub-account transfers.--The 
Committee directs that savings in family housing operation and 
maintenance accounts from foreign currency re-estimates be used 
to maintain and repair existing family housing units. The 
Comptroller is directed to report to the Committees on 
Appropriations of both Houses of Congress on how these savings 
are allocated 90 days after enactment of this Act. In addition, 
the Committee directs the services and Defense agencies to 
notify the Committees on Appropriations of both Houses of 
Congress within 30 days of a transfer of funds between sub-
accounts within the family housing construction and family 
housing operation and maintenance accounts, if such transfer is 
in excess of 10 percent of the funds appropriated to the sub-
account to which the funds are being transferred. Notifications 
to the Committees shall indicate the sub-accounts and amounts 
that are being used to source the transfer.
    Leasing reporting requirements.--The Secretary of Defense 
is directed to report to the Committees on Appropriations of 
both Houses of Congress quarterly on the details of all new or 
renewed domestic leases entered into during the previous 
quarter that exceed the cost threshold set by 10 U.S.C. 
2828(b)(2), including certification that less expensive housing 
was not available for lease. For foreign leases, the Department 
is directed to: (1) perform an economic analysis on all new 
leases or lease/contract agreements where more than 25 units 
are involved; (2) report the details of new or renewed lease 
agreements that exceed the cost threshold set by 10 U.S.C. 
2828(e)(1) 21 days prior to entering into such an agreement; 
and (3) base leasing decisions on the economic analysis.

                   Family Housing Construction, Army





Fiscal year 2012 enacted level........................      $176,897,000
Fiscal year 2013 budget request.......................         4,641,000
Committee recommendation in the bill..................         4,641,000
Comparison with:
    Fiscal year 2012 enacted level....................     (172,256,000)
    Fiscal year 2013 budget request...................             - - -


    The Committee recommends an appropriation of $4,641,000 for 
Family Housing Construction, Army, a decrease of $172,256,000 
below the fiscal year 2012 enacted level and the same as the 
budget request. The significant decrease in Army family housing 
construction is due to all scheduled installations having now 
been privatized through the Residential Community Initiative 
and the Army having met its goal to eliminate those houses 
originally identified as inadequate.

             Family Housing Operation and Maintenance, Army





Fiscal year 2012 enacted level........................      $493,458,000
Fiscal year 2013 budget request.......................       530,051,000
Committee recommendation in the bill..................       530,051,000
Comparison with:
    Fiscal year 2012 enacted level....................        36,593,000
    Fiscal year 2013 budget request...................             - - -


    The Committee recommends an appropriation of $530,051,000 
for Family Housing Operation and Maintenance, Army, an increase 
of $36,593,000 above the fiscal year 2012 enacted level and the 
same as the budget request.

           Family Housing Construction, Navy and Marine Corps





Fiscal year 2012 enacted level........................      $100,972,000
Fiscal year 2013 budget request.......................       102,182,000
Committee recommendation in the bill..................       102,182,000
Comparison with:
    Fiscal year 2012 enacted level....................         1,210,000
    Fiscal year 2013 budget request...................             - - -


    The Committee recommends an appropriation of $102,182,000 
for Family Housing Construction, Navy and Marine Corps, an 
increase of $1,210,000 above the fiscal year 2012 enacted level 
and the same as the budget request.

    Family Housing Operation and Maintenance, Navy and Marine Corps





Fiscal year 2012 enacted level........................      $367,863,000
Fiscal year 2013 budget request.......................       378,230,000
Committee recommendation in the bill..................       378,230,000
Comparison with:
    Fiscal year 2012 enacted level....................        10,367,000
    Fiscal year 2013 budget request...................             - - -


    The Committee recommends an appropriation of $378,230,000 
for Family Housing Operation and Maintenance, Navy and Marine 
Corps, an increase of $10,367,000 above the fiscal year 2012 
enacted level and the same as the budget request.

                 Family Housing Construction, Air Force





Fiscal year 2012 enacted level........................       $60,042,000
Fiscal year 2013 budget request.......................        83,824,000
Committee recommendation in the bill..................        83,824,000
Comparison with:
    Fiscal year 2012 enacted level....................        23,782,000
    Fiscal year 2013 budget request...................             - - -


    The Committee recommends an appropriation of $83,824,000 
for Family Housing Construction, Air Force, an increase of 
$23,782,000 above the fiscal year 2012 enacted level and the 
same as the budget request. The increase in fiscal year 2013 is 
due to a funding adjustment, requested by the Air Force in 
fiscal year 2012 to cover an anticipated shortfall in family 
housing operation and maintenance funding.

          Family Housing Operation and Maintenance, Air Force





Fiscal year 2012 enacted level........................      $429,523,000
Fiscal year 2013 budget request.......................       497,829,000
Committee recommendation in the bill..................       497,829,000
Comparison with:
    Fiscal year 2012 enacted level....................        68,306,000
    Fiscal year 2013 budget request...................             - - -


    The Committee recommends an appropriation of $497,829,000 
for Family Housing Operation and Maintenance, Air Force, an 
increase of $68,309,000 above the fiscal year 2012 enacted 
level and the same as the budget request.

         Family Housing Operation and Maintenance, Defense-Wide





Fiscal year 2012 enacted level........................       $50,723,000
Fiscal year 2013 budget request.......................        52,238,000
Committee recommendation in the bill..................        52,238,000
Comparison with:
    Fiscal year 2012 enacted level....................         1,515,000
    Fiscal year 2013 budget request...................             - - -


    The Committee recommends an appropriation of $52,238,000 
for Family Housing Operation and Maintenance, Defense-Wide, an 
increase of $1,515,000 above the fiscal year 2012 enacted level 
and the same as the budget request.

         Department of Defense Family Housing Improvement Fund





Fiscal year 2012 enacted level........................        $2,184,000
Fiscal year 2013 budget request.......................         1,786,000
Committee recommendation in the bill..................         1,786,000
Comparison with:
    Fiscal year 2012 enacted level....................         (398,000)
    Fiscal year 2013 budget request...................             - - -


    The Family Housing Improvement Fund (FHIF) is authorized by 
section 2883, title 10, United States Code, and provides the 
Department of Defense with authority to finance joint ventures 
with the private sector to revitalize and to manage the 
Department's housing inventory. The statute authorizes the 
Department to use limited partnerships, make direct and 
guaranteed loans, and convey Department-owned property to 
stimulate the private sector to increase the availability of 
affordable, quality housing for military personnel.
    The FHIF is used to build or renovate family housing by 
using various legal authorities, and by utilizing private 
capital and expertise to the maximum extent possible. The fund 
is administered as a single account without fiscal year 
limitations and contains directly appropriated and transferred 
funds from family housing construction accounts.
    The Committee recommends an appropriation of $1,786,000 for 
the Department of Defense Family Housing Improvement Fund, a 
decrease of $398,000 below the fiscal year 2012 enacted level 
and the same as the budget request.
    Family Housing Improvement Fund.--The Committee was made 
aware during budget briefings that the Navy's fiscal year 2013 
budget submission for Family housing contained a request to 
privatize 870 units however the budget submission only included 
funding for 614 units. The Navy requested language allowing the 
transfer of credited funds from Navy land conveyances in the 
Family Housing Improvement Fund to eliminate the shortfall. 
Therefore, the recommendation includes an Administrative 
Provision (Section 130) in title I allowing the transfer of 
$10,500,000 by the Secretary of Defense to the Secretary of the 
Navy to alleviate this requirement as requested by the Navy.

                       Homeowners Assistance Fund





Fiscal year 2012 enacted level........................        $1,284,000
Fiscal year 2013 budget request.......................             - - -
Committee recommendation in the bill..................             - - -
Comparison with:
    Fiscal year 2012 enacted level....................       (1,284,000)
    Fiscal year 2012 budget request...................             - - -


    The Homeowners Assistance Fund account finances the 
Homeowners Assistance Program (HAP), which provides assistance 
to individual military and Federal civilian homeowners who 
sustain losses on the sales of their primary residences due to 
declining real estate markets attributable to the closure or 
realignment of military installations, as well as the temporary 
expansion of the program to include military homeowners 
adversely affected by the housing crisis and the permanent 
extension of benefits to wounded warriors and surviving 
spouses. This non-expiring revolving fund receives funding from 
several sources, including appropriations, borrowing authority, 
reimbursable authority, prior fiscal year unobligated balances, 
appropriation transfers, revenue from the sale of acquired 
properties, and recovery of prior year obligations.
    The Committee recommends no appropriation for the 
Department of Defense Homeowners Assistance Fund in fiscal year 
2013, the same as the budget request.

          Chemical Demilitarization Construction, Defense-Wide





Fiscal year 2012 enacted level........................       $75,312,000
Fiscal year 2013 budget request.......................       151,000,000
Committee recommendation in the bill..................       151,000,000
Comparison with:
    Fiscal year 2012 enacted level....................        75,688,000
    Fiscal year 2013 budget request...................             - - -


    The Chemical Demilitarization Construction, Defense-Wide 
account provides funds for the design and construction of full-
scale chemical disposal facilities and associated projects to 
upgrade installation support facilities and infrastructures 
required to support the Chemical Demilitarization program.
    The Committee recommends an appropriation of $151,000,000 
for Chemical Demilitarization Construction, Defense-Wide, an 
increase of $75,688,000 above the fiscal year 2012 enacted 
level and the same as the budget request.

               Base Realignment and Closure Account 1990





Fiscal year 2012 enacted level........................      $323,543,000
Fiscal year 2013 budget request.......................       349,396,000
Committee recommendation in the bill..................       349,396,000
Comparison with:
    Fiscal year 2012 enacted level....................        25,853,000
    Fiscal year 2013 budget request...................             - - -


    The Committee recommends an appropriation of $349,396,000 
for the Base Realignment and Closure Account 1990, the same as 
the fiscal year 2013 budget request.

               Base Realignment and Closure Account 2005





Fiscal year 2012 enacted level........................      $258,776,000
Fiscal year 2013 budget request.......................       126,697,000
Committee recommendation in the bill..................       126,697,000
Comparison with:
    Fiscal year 2012 enacted level....................     (132,079,000)
    Fiscal year 2013 budget request...................  ................


    The Committee recommends an appropriation of $126,697,000 
for the Base Realignment and Closure Account 2005, a decrease 
of $132,079,000 below the fiscal year 2012 enacted level and 
the same as the fiscal year 2012 budget request. This funding 
supports the most recent base realignment and closure round 
which affected over 800 installations and locations through 24 
major closures, 24 major realignments, and 765 other actions. 
This funding is requested for non-constructed related actions.
    Base Realignment and Closure 2005.--The committee 
recommendation continues to carry a parking limitation for Base 
Closure and Realignment (BRAC) recommendation #133 (Mark 
Center). The Committee believes that carrying this provision 
will continue to mitigate traffic congestion surrounding the 
Mark Center site. Specifically, the Committee recommendation 
includes a limitation on the number of parking spaces the 
Department may utilize at the Mark Center to no more than 
2,000, with the exception of disabled parking spaces. The 
limitation may be waived in part, but not in whole, if the 
Secretary of Defense certifies that none of the intersections 
surrounding the Mark Center reach failing levels of service 
``e'' or ``f,'' as defined by the Transportation Research Board 
Highway Capacity Manual, during a consecutive 90-day period or 
the Department of Defense and the Virginia Department of 
Transportation agree on the number of additional parking spaces 
that may be made available to employees of the facility subject 
to continued 90-day traffic monitoring. The Committee continues 
to strongly encourage the Department of Defense to examine 
mandatory commuting alternatives such as telework, flexible 
work schedules, satellite parking facilities with dedicated 
shuttle service to the Mark Center, parking capacity at the 
Pentagon, additional ridesharing and public transit incentives 
and all other means to ensure that Mark Center employees can 
commute to and from work without undue burden.
    Base Realignment and Closure 2005 Remediation Agreements.--
The Committee commends the Deputy Under Secretary of Defense 
for Installations and Environment and the Department of the 
Army for their willingness to work with other governmental 
agencies to facilitate private sector growth and government 
efficiency. The Committee understands from reports by the 
Department of the Army that additional requirements are being 
imposed on some of the cleanup efforts in States. The 
Department of the Army has indicated that additional 
requirements in the remediation of land in closures threaten to 
delay land transfer and therefore increase expenses beyond the 
original project scope.
    Therefore, the Committee believes the Deputy Under 
Secretary of Defense for Installations and Environment and the 
Environmental Protection Agency should continue to work to 
reach remediation agreements with standards allowed under 
current BRAC law. The Committee directs the Department of 
Defense's Inspector General to review BRAC 2005 closures and 
report to the congressional defense committees on additional 
issues that delayed land transfer and increased costs to the 
Department of Defense 180 days after enactment of this Act.

                       Administrative Provisions

    The bill includes section 101 prohibiting the use of funds 
for payments under a cost-plus-a-fixed-fee contract for 
construction where cost estimates exceed $25,000. An exception 
for Alaska is provided.
    The bill includes section 102 permitting the use of 
construction funds for the hire of passenger motor vehicles.
    The bill includes section 103 permitting funds to be 
expended on the construction of defense access roads under 
certain circumstances.
    The bill includes section 104 prohibiting construction of 
new bases in the United States without a specific 
appropriation.
    The bill includes section 105 limiting the use of funds for 
the purchase of land or land easements that exceed 100 percent 
of value except under certain conditions.
    The bill includes section 106 prohibiting the use of funds 
to acquire land, prepare sites, or install utilities for family 
housing except housing for which funds have been appropriated.
    The bill includes section 107 limiting the use of minor 
construction funds to relocate any activity from one 
installation to another without prior notification.
    The bill includes section 108 prohibiting the procurement 
of steel unless American producers, fabricators, and 
manufacturers have been allowed to compete.
    The bill includes section 109 prohibiting the use of funds 
to pay real property taxes in foreign nations.
    The bill includes section 110 prohibiting the use of funds 
to initiate a new installation overseas without prior 
notification.
    The bill includes section 111 establishing a preference for 
United States architectural and engineering services where the 
services are in Japan, NATO member countries, or countries 
bordering the Arabian Sea within the Central Command area of 
responsibility.
    The bill includes section 112 establishing a preference for 
United States contractors for military construction in the 
United States territories and possessions in the Pacific and on 
Kwajalein Atoll, or countries within the Central Command area 
of responsibility, except bids by Marshallese contractors for 
military construction on Kwajalein Atoll.
    The bill includes section 113 requiring the Secretary of 
Defense to give prior notice to Congress of military exercises 
where construction costs exceed $100,000.
    The bill includes section 114 allowing funds appropriated 
in prior years to be used for new projects authorized during 
the current session of Congress.
    The bill includes section 115 allowing the use of expired 
or lapsed funds to pay the cost of supervision for any project 
being completed with lapsed funds.
    The bill includes section 116 providing that funds for 
military construction projects are available until the end of 
the fourth fiscal year following the fiscal year in which funds 
are appropriated, subject to certain conditions.

                     (INCLUDING TRANSFER OF FUNDS)

    The bill includes section 117 allowing for the transfer of 
proceeds from ``Base Realignment and Closure Account, Part I'' 
to the continuing Base Realignment and Closure accounts.

                     (INCLUDING TRANSFER OF FUNDS)

    The bill includes section 118 allowing for the transfer of 
funds from Family Housing Construction accounts to the 
Department of Defense Family Housing Improvement Fund and funds 
from Military Construction accounts to the Department of 
Defense Military Unaccompanied Housing Improvement Fund.

                     (INCLUDING TRANSFER OF FUNDS)

    The bill includes section 119 providing transfer authority 
to the Homeowners Assistance Program.
    The bill includes section 120 requiring that funds in this 
title be the sole source of all operation and maintenance for 
flag and general officer quarter houses, and limits the repair 
on these quarters to $35,000 per year without notification.
    The bill includes section 121 making funds in the Ford 
Island Improvement Fund available until expended.
    The bill includes section 122 prohibiting the use of funds 
for military construction, family housing, or land acquisition 
projects at installations closed or realigned under BRAC, 
except under certain conditions.

                     (INCLUDING TRANSFER OF FUNDS)

    The bill includes section 123 allowing the transfer of 
expired funds to the ``Foreign Currency Fluctuations, 
Construction, Defense'' account.
    The bill includes section 124 prohibiting the number of 
parking spaces available for use.
    The bill includes section 125 prohibiting the use of funds 
for any action related to the expansion of Pinon Canyon 
Maneuver Site, Colorado.
    The bill includes section 126 prohibiting the use of funds 
to relocate a unit of the Army that would impact more than 200 
personnel.

                              (RESCISSION)

    The bill includes section 127 rescinding funds from prior 
appropriations Acts.

                              (RESCISSION)

    The bill includes section 128 rescinding funds from prior 
appropriations for the BRAC 2005 account.
    The bill includes section 129 reducing the civilian pay 
raise.

                     (INCLUDING TRANSFER OF FUNDS)

    The bill includes section 130 allowing the transfer of 
funds to the Secretary of the Navy from the Family Housing 
Improvement Fund as requested by the Navy.
    The bill does not include section 121 as requested to 
provide authority to obligate funds provided in military 
construction Army for Arlington Cemetery.
    The bill does not include section 122 as requested to 
provide authority under a continuing resolution when an 
authorization bill has been enacted to obligate funds that have 
not been appropriated.

                                TITLE II


                     DEPARTMENT OF VETERANS AFFAIRS





Fiscal year 2012 enacted level\1\.................      $122,226,272,000
Fiscal year 2013 budget request\1\................       135,636,648,000
Committee recommendation in the bill\1\...........       135,377,850,000
Comparison with:
    Fiscal year 2012 enacted level................        13,151,578,000
    Fiscal year 2013 budget request...............         (258,798,000)
Fiscal year 2014 advance budget request\1\........        54,462,000,000
Fiscal year 2014 Committee recommendation in the         54,462,000,000
 bill\1\..........................................

\1\All funding cited excludes amounts in the Medical Care Collections
  Fund.

    The Department of Veterans Affairs (VA) serves nearly 
58,000,000 people: 22,200,000 veterans and 35,500,000 family 
members of living veterans or survivors of deceased veterans. 
This group constitutes 18 percent of the United States 
population. To serve adequately the nation's veterans, the VA 
employs 302,000 people, making it one of the largest Federal 
agencies in terms of employment.
    The Committee recommends a total of $135,377,850,000 in 
budget authority for programs in fiscal year 2013, an increase 
of $13,151,578,000 or 10.8 percent above the fiscal year 2012 
enacted level and $258,798,000 below the budget request. In 
addition, advance appropriations of $54,462,000,000 are 
provided for fiscal year 2014. Consistent with H. Con. Res. 
112, the House-passed fiscal year 2013 budget resolution, the 
Committee does not provide funding for the 0.5 percent Federal 
employee pay raise assumed in the VA budget request, as 
implemented in sections 231 and 232 of the bill.

                    Veterans Benefits Administration


                       COMPENSATION AND PENSIONS

                     (INCLUDING TRANSFER OF FUNDS)




Fiscal year 2012 enacted level........................   $51,237,567,000
Fiscal year 2013 budget request.......................    61,741,232,000
Committee recommendation in the bill..................    61,741,232,000
Comparison with:
    Fiscal year 2012 enacted level....................    10,503,665,000
    Fiscal year 2013 budget request...................             - - -


    This appropriation provides funds for service-connected 
compensation payments to an estimated 4,000,000 veterans, 
survivors, and dependents. In addition, pension payments are 
funded for 520,000 veterans and their survivors. The average 
cost per compensation case for veterans in 2013 is estimated at 
$14,862, and pension payments are projected at a unit cost of 
$9,465.
    The Committee recommends an appropriation of 
$61,741,232,000 for compensation, pension, and burial benefits, 
an increase of $10,503,665,000 above the fiscal year 2012 
enacted level and the same as the budget request.
    The appropriation includes authority to transfer funding 
not to exceed $9,204,000, of which $9,059,000 is for the 
General Operating Expenses, Veterans Benefit Administration 
account and $145,000 is for the Information Technology Systems 
account. These funds are for the administrative expenses of 
implementing cost-saving provisions required by the Omnibus 
Budget Reconciliation Act of 1990, Public Law 101-508, the 
Veterans' Benefits Act of 1992, Public Law 102-568, and the 
Veterans' Benefits Improvements Act of 1994, Public Law 103-
446. These cost-saving provisions include verifying pension 
income against Internal Revenue Service (IRS) and Social 
Security Administration (SSA) data; establishing a match with 
the SSA to obtain verification of Social Security numbers; and 
applying the VA pension cap for Medicaid-eligible single 
veterans and surviving spouses alone in Medicaid-covered 
nursing homes. The bill also continues to include language 
permitting this appropriation to reimburse such sums as may be 
earned to the Medical Care Collections Fund to help defray the 
operating expenses of individual medical facilities for nursing 
home care provided to pensioners.

                         READJUSTMENT BENEFITS

Fiscal year 2012 enacted level........................   $12,108,488,000
Fiscal year 2013 budget request.......................    12,607,476,000
Committee recommendation in the bill..................    12,607,476,000
Comparison with:
    Fiscal year 2012 enacted level....................       498,988,000
    Fiscal year 2013 budget request...................             - - -


    This appropriation finances the education and training of 
veterans and servicemembers through the Post 9-11 GI Bill and 
the All-Volunteer Force Educational Assistance Program. 
Supplemental education benefits are also provided to certain 
veteran members of the Selected Reserve and are funded through 
transfers from the Department of Defense. In addition, certain 
disabled veterans are provided with vocational rehabilitation, 
specially adapted housing grants, and grants for automobiles 
with approved adaptive equipment. This account also finances 
educational assistance allowances for eligible dependents of 
veterans who died from service-connected causes or have a total 
and permanent service-connected disability, as well as 
dependents of servicemembers who were captured or are missing 
in action. Almost 75 percent of the funds in the account 
support the Post 9-11 GI Bill.
    The Committee recommends an appropriation of 
$12,607,476,000 for Readjustment Benefits, an increase of 
$498,988,000 above the fiscal year 2012 enacted level and the 
same as the budget request.

                   VETERANS INSURANCE AND INDEMNITIES




Fiscal year 2012 enacted level........................      $100,252,000
Fiscal year 2013 budget request.......................       104,600,000
Committee recommendation in the bill..................       104,600,000
Comparison with:
    Fiscal year 2012 enacted level....................         4,348,000
    Fiscal year 2013 budget request...................             - - -


    The Veterans Insurance and Indemnities appropriation is 
made up of the former appropriations for military and naval 
insurance, applicable to World War I veterans; national service 
life insurance (NSLI), applicable to certain World War II 
veterans; servicemen's indemnities, applicable to Korean 
conflict veterans; and the veterans mortgage life insurance, 
applicable to individuals who have received a grant for 
specially adapted housing.
    The Committee recommends an appropriation of $104,600,000 
for Veterans Insurance and Indemnities, an increase of 
$4,348,000 above the fiscal year 2012 enacted level and the 
same as the budget request. The amount provided will enable the 
Department to transfer funding to the service-disabled veterans 
insurance fund and transfer additional amounts for payments for 
policies under the veterans mortgage life insurance program. 
These policies are identified under the Veterans Insurance and 
Indemnity appropriation since they provide insurance to 
service-disabled veterans unable to qualify under basic NSLI.

         VETERANS HOUSING BENEFIT PROGRAM FUND PROGRAM ACCOUNT

----------------------------------------------------------------------------------------------------------------
                                                                      Limitation on
                                                                       direct loans
                                                   Program account    for specially    Administrative
                                                                     adapted housing      expenses
                                                                          loans
----------------------------------------------------------------------------------------------------- -------------
Fiscal year 2012 enacted level..................       $318,612,000         $500,000     $154,698,000
Fiscal year 2013 budget request.................        184,859,000          500,000      157,814,000
Committee recommendation in the bill............        184,859,000          500,000      157,814,000
Comparison with:
    Fiscal year 2012 enacted level..............      (133,753,000)            - - -        3,116,000
    Fiscal year 2013 budget request.............              - - -            - - -            - - -
----------------------------------------------------------------------------------------------------------------

    The purpose of the home loan guaranty program is to 
facilitate the extension of mortgage credit on favorable terms 
by private lenders to eligible veterans. This appropriation 
provides for all costs, with the exception of the Native 
American veterans housing loan program, of the Department's 
direct and guaranteed loans programs. The Federal Credit Reform 
Act of 1990 requires budgetary resources to be available prior 
to incurring a direct loan obligation or a loan guaranty 
commitment. In addition, the bill requires all administrative 
expenses of a direct or guaranteed loan program to be funded 
through a program account. Loan guaranties are made to 
servicemembers, veterans, reservists, and single surviving 
spouses for the purchase of homes, condominiums, and 
manufactured homes and for refinancing loans. The Department 
guarantees part of the total loan, permitting the purchaser to 
obtain a mortgage with a competitive interest rate, even 
without a down payment if the lender agrees. The Department 
requires that a down payment be made for a manufactured home. 
With a Department guaranty, the lender is protected against 
loss, up to the amount of the guaranty, if the borrower fails 
to repay the loan.
    The Committee recommends such sums as may be necessary 
(currently estimated to total $184,859,000) for funding subsidy 
payments, $500,000 for the limitation on direct loans for 
specially adapted housing loans, and $157,814,000 for 
administrative expenses.

            VOCATIONAL REHABILITATION LOANS PROGRAM ACCOUNT

----------------------------------------------------------------------------------------------------------------
                                                                      Limitation on    Administrative
                                                   Program account     direct loans       expenses
----------------------------------------------------------------------------------------------------- -------------
Fiscal year 2012 enacted level..................            $19,000       $3,019,000         $343,000
Fiscal year 2013 budget request.................             19,000        2,729,000          346,000
Committee recommendation in the bill............             19,000        2,729,000          346,000
Comparison with:
    Fiscal year 2012 enacted level..............              - - -        (290,000)            3,000
    Fiscal year 2013 budget request.............              - - -            - - -            - - -
----------------------------------------------------------------------------------------------------------------

    This appropriation covers the subsidy cost of direct loans 
for vocational rehabilitation of eligible veterans and includes 
administrative expenses necessary to carry out the direct loan 
program. Loans of up to $1,108 (based on indexed chapter 31 
subsistence allowance rate) are available to service-connected 
disabled veterans enrolled in vocational rehabilitation 
programs when the veteran is temporarily in need of additional 
assistance. Repayment is made in monthly installments, without 
interest, through deductions from future payments of 
compensation, pension, subsistence allowance, educational 
assistance allowance, or retirement pay. Most loans are repaid 
in full in less than one year. The Federal Credit Reform Act of 
1990 requires budgetary resources to be available prior to 
incurring a direct loan obligation.
    The Committee recommends $19,000 for funding subsidy 
program costs and $346,000 for administrative expenses. The 
administrative expenses may be paid to the General Operating 
Expenses, Veterans Benefit Administration account.
    In addition, the Committee includes language limiting 
direct loans to $2,729,000. It is estimated that the Department 
will make 2,857 loans in fiscal year 2013, with an average 
amount of $955.

              NATIVE AMERICAN VETERAN HOUSING LOAN PROGRAM




Administrative expenses:
Fiscal year 2012 enacted level........................        $1,116,000
Fiscal year 2013 budget request.......................         1,089,000
Committee recommendation in the bill..................         1,089,000
Comparison with:
    Fiscal year 2012 enacted level....................          (27,000)
    Fiscal year 2013 budget request...................             - - -


    The Native American Veteran Housing Loan Program, as 
authorized by title 38 United States Code, chapter 37, 
subchapter V, provides the Secretary with authority to make 
direct housing loans to Native American veterans for the 
purpose of purchasing, constructing, or improving dwellings on 
trust lands. The Committee recommends the budget request of 
$1,089,000 for administrative expenses of the Native American 
Veteran Housing Loan Program.

                     Veterans Health Administration

    The Department operates the largest Federal medical care 
delivery system in the country, with 152 hospitals, 107 
domiciliary residential rehabilitation treatment programs, 133 
nursing homes, 300 Vet Centers, 70 mobile Vet Centers, and 809 
outpatient clinics which include independent, satellite, 
community-based, and rural outreach clinics. Approximately 
6,300,000 patients will be treated in 2013.
    The Veterans Health Administration (VHA) is comprised of 
four accounts: Medical Services, Medical Support and 
Compliance, Medical Facilities, and Medical and Prosthetic 
Research. For these accounts, the Administration has requested 
total resources for fiscal year 2014 of $54,462,000,000 in 
direct appropriations to fund the three advance appropriations 
of the VHA. This is an increase of $1,921,000,000 above the 
fiscal year 2013 enacted level of $52,541,000,000 and the same 
as the budget request. In addition, VA will receive an 
estimated $2,527,000,000 in Medical Care Collections Fund in 
fiscal year 2013. The Committee also provides the 2013 budget 
request of $582,674,000 for medical and prosthetic research.
    The Committee is very disturbed by the dramatic changes in 
VA estimates for the Medical Care accounts for fiscal years 
2012 and 2013 and the lack of timely notification to Congress. 
The Committee did not learn of decreased resource requirements 
totaling nearly $3,000,000,000 in 2012 and nearly 
$2,000,000,000 in 2013 until the 2013 budget was delivered in 
February. Since the funding for both these years had already 
been appropriated in advance, Congress lost the opportunity to 
consider adjusting funding levels for these accounts. If the 
Committee had been informed of the changes last year as the 
2012 appropriations bill was being finalized, such changes 
could have been considered. To address this notification lapse, 
the Committee includes bill language requiring the VA to notify 
the Congress of any changes in funding requirements exceeding 
$250,000,000 identified when the Enrollee Healthcare Projection 
Model is re-calculated in the spring of each year. This 
notification shall be transmitted as part of the sufficiency 
letter due to Congress no later than July 31 of each year, as 
required in section 117(d) of title 38, United States Code.
    In addition to the lack of notification about excess 
funding, the Committee was not informed until the budget 
submission about the VA's planned allocation of these funds. 
While the Committee does not challenge the allocation of the 
funding to special initiatives such as homeless assistance and 
hospital activations, it is concerned by the lack of 
opportunity for oversight. As one example, an initiative 
labeled ``new models of patient-centered care'', which was 
funded for the first time in fiscal year 2012, was increased by 
$610,000,000 from the budget estimate to the enacted level. 
That same initiative was increased from being zero-funded to 
$448,000,000 as the fiscal year 2013 budget progressed. To 
regain an opportunity for oversight, the Committee includes 
bill language requiring the VA to submit a reprogramming 
request when it proposes a change in funding for initiatives 
listed on the ``VA Medical Care Obligations by Program'' page 
in the Congressional Budget Submission. This reprogramming 
requirement applies to re-estimates of ten percent or more in 
the current year or advance year.

                            MEDICAL SERVICES




Fiscal year 2012 enacted level........................   $39,649,985,000
Fiscal year 2013 enacted level........................    41,354,000,000
Fiscal year 2013 additional request...................       165,000,000
Fiscal year 2014 advance budget request...............    43,557,000,000
Committee 2014 recommendation in the bill.............    43,557,000,000
Comparison with:
    Fiscal year 2013 enacted level....................     2,203,000,000
    Fiscal year 2014 budget request...................             - - -


    This appropriation provides for medical services of 
eligible veterans and beneficiaries in Department medical 
centers, outpatient clinic facilities, contract hospitals, 
State homes, and outpatient programs on a fee basis. Hospital 
and outpatient care is also provided by the private sector for 
certain dependents and survivors of veterans under the civilian 
health and medical programs for the VA.
    The Committee provides an advance appropriation of 
$43,557,000,000 for Medical Services for fiscal year 2014, an 
increase of $2,203,000,000, or 5.3 percent, above the fiscal 
year 2013 enacted level and the same as the budget request. The 
Committee has not included requested bill language to make 
available through September 30, 2015, $1,400,000,000 of the 
Medical Services appropriation for fiscal year 2014, instead 
maintaining current policy of providing extended availability 
on a current year rather than advance funding basis.
    The fiscal year 2013 budget includes a request for an 
additional $165,000,000 for Medical Services in fiscal year 
2013. The Committee does not provide this additional fiscal 
year 2013 funding. Since the VA has significantly overestimated 
Medical Care funding needs for both 2012 and 2013, the 
Committee is reluctant to provide any additional 2013 funding 
at this time. Should any shortfall occur, the Department should 
utilize funding from administrative expenses for VHA 
headquarters and the veterans integrated service networks 
(VISNs).
    Operational improvements.--The budget request is built on 
the assumption of substantial savings from what are called 
``operational improvements''. These savings are estimated at 
$1,300,000,000 in fiscal years 2013 and 2014. The operational 
improvements vary from fee care payment savings to clinical 
staff and resource ``realignment'' to real property cost 
savings. The Committee is concerned that these savings 
estimates are uncertain at best and depend in part on 
regulatory changes and hiring policies that may not 
materialize. In fact, the Committee notes that the Government 
Accountability Office (GAO) found in a February, 2012 report 
that VA's estimated savings from two of its six operational 
improvements lacked analytic support, and estimated savings 
from another were flawed. In addition, GAO found that VA lacks 
a process for tracking actual savings for one operational 
improvement and its processes may overstate results for two 
others. Given this uncertainty, coupled with the unfortunate 
record the VA has had in the past with budgets based on similar 
``savings'', the Committee requests that the VA continue to 
provide an operating plan identifying the timeframe and 
benchmarks used in generating the estimates and the metrics to 
be used to validate the savings, as requested in the 2012 House 
report.
    Allocation of health funding.--The Committee is concerned 
that the process the VA uses to allocate the health services 
appropriation through the VISNs and from them to the medical 
centers may shortchange the ultimate users because of excessive 
funding retained at headquarters or at the VISNs. The Committee 
continues to request a report each year no later than thirty 
days after VA allocates the medical services appropriation to 
the VISNs that identifies: (1) the amount of general purpose 
funding that is allocated to each VISN; (2) the amount of 
funding that is retained by central headquarters for specific 
purposes, with amounts identified for each purpose; and (3) the 
amount of funding that is retained by each VISN before 
allocating it to the medical centers, identifying separately 
the amounts retained for purposes such as network operations, 
network initiatives, and emergencies.
    Homeless assistance.--The Committee provides the full 
fiscal year 2014 budget request of $1,351,851,000 for VA 
homeless assistance programs, in addition to $4,816,132,000 for 
homeless veterans treatment costs. These programs include the 
Homeless Providers Grant and Per Diem, the Domiciliary Care for 
Homeless Veterans, and the Department of Housing and Urban 
Development--Department of Veterans Affairs Supported Housing 
programs.

Mental health issues

    The Committee provides the full fiscal year 2014 budget 
request of $6,453,027,000 for mental health programs, which is 
a $268,929,000, or 4.3 percent, increase over 2013 levels. 
Included within this total are $443,332,000 for post-traumatic 
stress disorder (PTSD) and $75,605,000 for suicide prevention.
    Delays in mental health treatment.--The Committee has been 
pleased that VA policy requires that all first-time patients 
referred to or requesting mental health services receive an 
initial evaluation within 24 hours and a more comprehensive 
diagnostic and treatment planning evaluation within 14 days. 
However, the Committee is alarmed by the recent Office of 
Inspector General (OIG) report finding that: (1) the VA's 
reported 95 percent success rate in meeting this requirement is 
based on an unreliable and inaccurate method of measurement; 
and (2) the VA did not provide first-time patients with timely 
mental health evaluations, and existing patients often waited 
more than 14 days past their desired date of care for their 
treatment appointment. With the mental health needs of veterans 
increasing, particularly among veterans returning from 
conflicts in Iraq and Afghanistan, the VA must redouble its 
efforts to provide timely access to mental health care 
services. The Committee instructs the VA to implement the four 
recommendations made by the OIG: (1) the Under Secretary for 
Health shall revise the current full mental health evaluation 
measurement to ensure the measurement is calculated to reflect 
the veteran's wait time experience upon contact with the mental 
health clinic or the veteran's referral to the mental health 
service from another provider to the completion of the 
evaluation; (2) the Under Secretary for Health shall reevaluate 
alternative measures or combinations of measures that could 
effectively and accurately reflect the patient experience of 
access to mental health appointments; (3) the Under Secretary 
for Health shall conduct a staffing analysis to determine if 
mental health staff vacancies represent a systemic issue 
impeding the VHA's ability to meet mental health timeliness 
goals, and if so, develop an action plan to correct the 
impediments; and (4) the Under Secretary for Health shall 
ensure that data collection efforts related to mental health 
access are aligned with the operational needs of relevant 
decision makers throughout the organization. The Committee 
further instructs the VA to report to the Committee on its 
progress in meeting these recommendations 90 days and 180 days 
after enactment of this Act.
    Suicide rates.--With the withdrawal of troops in 
Afghanistan and Iraq, there has been a troubling increase in 
mental illnesses and suicide rates among our veterans. The 
Committee is concerned about the current mental health and 
suicide prevention services that are readily available to our 
growing number of veterans and requests that the Department of 
Veterans Affairs report to the Committee how the VA is 
improving these services and impacting suicide rates. The 
Committee requests that the VA also describe in this report 
VA's coordination with the Department of Defense (DOD) in 
ensuring these services are provided to active service members.
    Collaboration on suicide data.--The Committee fully 
supports the developing data sharing between the Department and 
public health agencies to improve the nation's capacity to 
prevent veteran suicides. By linking VA claims data and systems 
with other public health surveillance data, less lag time, more 
complete tracking and a richer set of data will help inform 
targeted prevention strategies. The Committee encourages VHA 
collaborations to share data with Federal public health 
agencies for the purpose of expediting surveillance 
initiatives.
    Affiliations with university-based medical centers.--The 
Committee encourages the VA to establish collaborations with 
research universities and teaching hospitals for the treatment 
and research of mental health disorders, such as post-traumatic 
stress disorder and traumatic brain injury, to improve the 
psychological health of veterans and train mental health 
professionals so they will understand the unique needs of 
veterans. The Committee requests a report on current VA-
university partnerships on mental health research and training 
no later than 90 days after enactment of this Act.
    Community-based programs.--The Committee is concerned about 
increasing numbers of veterans facing substance abuse problems, 
homelessness, incarceration, mental illness, and family 
domestic violence. The Committee encourages VA to coordinate 
with community-based programs for prevention and intervention, 
particularly when service members transition from active duty 
service. Partnerships with existing, scalable, and proven 
programs in the community which are able to integrate 
supportive housing, individual case management, treatment, job 
training, and job placement will expand the ability of the VA 
to address veterans' mental health and other health related 
issues.

Rural health issues

    The Committee provides the full fiscal year 2014 budget 
request of $250,000,000 to improve access and quality of care 
for the 3,300,000 veterans residing in rural and highly rural 
areas. The Committee directs the Office of Rural Health to 
submit to the Committee within 30 days of enactment of this Act 
an operating plan for this funding, as well as any changes to 
that operating plan at the start of the fiscal year for which 
the funds are provided.
    Access for underserved populations.--The Committee is 
concerned about the health care needs of elderly veteran 
populations in rural areas. These veterans often have 
difficulty obtaining access to quality health care and 
disability services, due to long distances to healthcare 
facilities and the lack of specialty providers working in rural 
areas. While the VA has made strides in expanding access to 
rural veterans, it is clear that the VA continues to struggle 
to find an adequate and effective strategy to reach these 
veterans. The Committee requests a detailed report by March 31, 
2013, on the feasibility of offering mobile health services, 
home-based primary care, telemedicine, and other enhanced home-
based services in these underserved areas.
    Non-VA care.--The Committee encourages the VA to evaluate 
using local private sector health care assets and facilities 
when feasible and cost-effective. The increased use of private 
providers can reduce the cost of per diem and mileage expended 
by the VA and prevents veterans from traveling long distances 
from home to get quality health care. When using non-VA 
facilities, VA should establish performance criteria and 
certify health care facilities to ensure quality control. The 
Committee found compelling the hearing testimony on Project 
ARCH, a demonstration in five rural sites using non-VA health 
care facilities, and requests a quarterly report on the 
findings of the demonstration as it progresses.
    Assignment to health care centers.--The Committee has heard 
complaints that some veterans travel long distances because of 
the locations VA directs them for care even though there are 
closer, more easily accessible health center locations. The 
Committee requests the VA to report to the Committee about the 
method used to assign veterans to VA health care centers. The 
report should include a description of how often service areas 
change, what notification is made to veterans of such changes, 
and what appeal rights veterans have to use a different 
facility than the one they were assigned.
    Nursing shortages.--The Committee is concerned about a 
severe shortage of nurses and nursing education programs in 
rural areas. The Committee encourages the VA to establish 
strategic partnerships with higher education institutions such 
as historically black colleges and universities to expand the 
accessibility of health care in rural areas by developing 
nursing education programs located in those areas. The 
Committee directs the Department to provide a report to the 
Committee on its progress on this initiative not later than 180 
days following the enactment of this Act.

Other health issues

    Dialysis.--The Committee is very concerned about the 
growing number of cases of end stage renal disease (ESRD). 
According to VA estimates for fiscal year 2011, over 27,000 
veterans have ESRD, of whom approximately 16,500 received 
dialysis from the VA on contract with providers or on an 
outpatient basis from a VA facility. Studies have demonstrated 
that home-based dialysis therapies, including peritoneal 
dialysis and home hemodialysis, are less costly than in-center 
hemodialysis, while providing equal, if not potentially better, 
patient outcomes. The Committee directs the Department to 
report to the Committee the number of VA patients currently 
using home-based dialysis therapies and actions VA is taking to 
encourage increased use of home dialysis, as well as barriers 
to expanding the provision of home options. This report shall 
be submitted not later than 90 days after enactment of this 
Act.
    COPD and Alpha-1.--The Committee is concerned by the 
incidence of chronic obstructive pulmonary disease (COPD) in 
the veteran population. COPD is caused by smoking, exposure to 
air pollution and a genetic condition known as Alpha-1 
Antitrypsin Deficiency (AATD). The Committee notes the positive 
results of a pilot testing program conducted by the Miami, FL 
Veterans Administration Medical Center that utilized electronic 
medical records to help detect and properly treat veterans for 
COPD and AATD. The Committee encourages the VA to broaden COPD 
and AATD testing among at-risk veterans and requests a report 
on progress made by February 1, 2013.
    HIV/AIDS among veterans.--The Committee recognizes the 
actions the VA has taken to implement routine HIV testing among 
veterans and urges the VA to expand on initiatives that have 
demonstrated success, such as the use of the Computerized 
Patient Record System HIV testing clinical reminder. In 
addition, the Committee encourages the VA to incorporate rapid 
HIV testing in order to increase access to testing as well as 
patient receipt of results.
    Prescription drug abuse.--The Committee is pleased that the 
2012 appropriations bill gave the Secretary the authority to 
disclose veterans' controlled substance prescriptions to State 
controlled substance monitoring programs. The epidemic of 
prescription pain killer abuse is overwhelming local 
communities, and law enforcement officials need every tool 
available to contain the problem. VA participation in the State 
monitoring boards is an important step. The Committee directs 
the agency to jumpstart its regulatory process so that the VA 
can begin to share information with the States before the end 
of fiscal year 2012. The VA is directed to provide the 
Committee with a timeline for implementing the regulations and 
a monthly update on their status, as well as any procedural 
obstacles that could jeopardize the schedule.
    Health professions school affiliations with VA health care 
facilities.--The Committee continues to support a closer 
collaboration between VA health care facilities and the 
historically black health professions schools. The Committee is 
pleased with recent efforts to improve the working relationship 
and requests a report no later than 90 days after enactment of 
this Act on the symposium requested in the fiscal year 2011 
report, in which VA health leaders and leaders of historically 
black health professions schools came together to pursue next 
steps of collaboration.
    Prostate cancer.--The Committee is concerned by the 
incidence of prostate cancer in the veteran population. The 
Committee requests that VA provide information about the number 
of veterans currently diagnosed with prostate cancer and 
treated in VA facilities and the range and frequency of 
specific treatments provided. The report should include a 
description of prostate cancer research conducted by the VA and 
any changes in VA treatment protocols that resulted.
    Ophthalmology services.--The Committee notes the steady 
increase in ocular injuries seen in veterans from both 
Operation Enduring Freedom and Operation Iraqi Freedom, as well 
as the rapidly increasing demand for eye care within the aging 
veterans population. In light of this growing need, the 
Committee urges the VA to help ensure veterans have access to 
high quality care by moving quickly with its plans to expand 
its national ophthalmology services.
    Medical equipment purchases.--The Committee understands 
that the number of veterans who require healthcare services is 
increasing due to both advances in medical care that are 
increasing longevity and the continued length of active war 
engagement. As the cost for providing medical services for 
veterans continues to rise, the VA should explore new options 
for cost savings without reducing the quality of medical care 
for veterans. The Committee encourages the VA to develop a 
pilot program using competitive bidding for parts replacement 
for various types of medical equipment, similar to what is used 
by private sector hospitals and health systems. Currently, 
replacement parts are purchased by the VA via long term 
contracts which may not reflect prices on the open market. This 
pilot would help the VA analyze if savings can be realized by 
purchasing replacement equipment parts from alternative sources 
through competitive bidding. The pilot should be evaluated two 
years after the start date by comparing the costs of equipment 
parts purchased in geographic areas selected for the pilot 
versus costs in an equivalent number of geographic areas using 
standard acquisition methods. The VA should include estimates 
of potential savings nationwide if competitive bidding were 
used to acquire replacement parts.

                     Medical Support and Compliance





Fiscal year 2012 enacted level........................    $5,535,000,000
Fiscal year 2013 enacted level........................     5,746,000,000
Fiscal year 2014 advance budget request...............     6,033,000,000
Committee 2014 recommendation in the bill.............     6,033,000,000
Comparison with:
    Fiscal year 2013 enacted level....................       287,000,000
    Fiscal year 2014 advance budget request...........             - - -


    The Medical Support and Compliance appropriation funds the 
expenses of management and administration of the Department's 
health care system, including financial management, public 
health and environmental hazard, quality and performance 
management, medical inspection, human research oversight, 
training programs and continuing education, security, volunteer 
operations, and human resources.
    The Committee recommends an advance appropriation of 
$6,033,000,000 for Medical Support and Compliance for fiscal 
year 2014, an increase of $287,000,000 above the fiscal year 
2013 enacted level and the same as the budget request. The 
Committee has not included requested bill language to make 
available through September 30, 2015, $100,000,000 of the 
Medical Support and Compliance appropriation for fiscal year 
2014, instead maintaining current policy of providing extended 
availability on a current year rather than advance funding 
basis.

                           Medical Facilities





Fiscal year 2012 enacted level........................    $5,426,000,000
Fiscal year 2013 enacted level........................     5,441,000,000
Fiscal year 2014 advance budget request...............     4,872,000,000
Committee 2014 recommendation in the bill.............     4,872,000,000
Comparison with:
    Fiscal year 2013 enacted level....................     (569,000,000)
    Fiscal year 2013 advance budget request...........             - - -


    The Medical Facilities appropriation provides funds for the 
operation and maintenance of the Department's health care 
system's capital infrastructure. Included under this heading 
are provisions for costs associated with utilities, 
engineering, capital planning, leases, laundry, groundskeeping, 
garbage, housekeeping, facility repair, and property 
disposition and acquisition.
    The Committee recommends an advance appropriation of 
$4,872,000,000 for Medical Facilities for fiscal year 2014, a 
decrease of $569,000,000 below the fiscal year 2013 enacted 
level and the same as the budget request. The Committee has not 
included requested bill language to make available through 
September 30, 2015, $250,000,000 of the advance Medical 
Facilities appropriation for fiscal year 2014, instead 
maintaining current policy of providing extended availability 
on a current year rather than advance funding basis.
    The Committee supports VA plans for the construction of a 
new joint VA-DOD Community Based Outpatient Clinic (CBOC) on 
the Monterey, CA peninsula as part of the Health Care Center 
Facility pilot program. The Committee is aware that this CBOC 
will meet the health care needs of over 50,000 veterans and 
over 31,000 active duty army personnel and their families who 
reside in the greater Monterey, CA region. The Committee 
understands that the VA has selected a preferred site, and the 
Committee urges the VA to move quickly to break ground for this 
much needed facility.

                    Medical and Prosthetic Research





Fiscal year 2012 enacted level........................      $581,000,000
Fiscal year 2013 budget request.......................       582,674,000
Committee recommendation in the bill..................       582,674,000
Comparison with:
    Fiscal year 2012 enacted level....................         1,674,000
    Fiscal year 2013 budget request...................             - - -


    This appropriation provides for medical, rehabilitative, 
and health services research. Medical research is an important 
aspect of the Department's programs, providing complete medical 
and hospital services for veterans. The prosthetic research 
program is also essential in the development and testing of 
prosthetic, orthopedic, and sensory aids for the purpose of 
improving the care and rehabilitation of eligible disabled 
veterans, including amputees, paraplegics, and the blind. The 
health services research program provides unique opportunities 
to improve the effectiveness and efficiency of the health care 
delivery system. Budgetary resources from a number of areas 
including appropriations from the medical care accounts, 
reimbursements from DOD, grants from the National Institutes of 
Health, private proprietary sources, and voluntary 
organizations provide support for the Department's researchers. 
Estimated total research resources from all sources in 2013 are 
$1,876,000,000. The VA will support about 2,200 research 
projects during fiscal year 2013.
    The Committee recommends $582,674,000 for Medical and 
Prosthetic Research, an increase of $1,674,000 above the fiscal 
year 2012 enacted level and the same as the budget request. 
Funds are available through September 30, 2014.
    Gastrointestinal disorders and Gulf War syndrome.--The 
Institute of Medicine (IOM) identified a link between Gulf War 
service and the development of functional gastrointestinal 
disorders in its 2010 report on Gulf War service and health. 
These disorders can be painful and debilitating for veterans, 
and the Committee urges VA to prioritize this important 
research area.
    Respiratory exposures/burn pits.--There is a reported 
increase in respiratory conditions such as atypical pneumonias, 
asthma and bronchiolitis among military personnel who were 
exposed to burn pits, increased particulate matter and other 
potential hazards while serving in Iraq, Kuwait, and 
Afghanistan. The Committee notes the research recommendations 
in the IOM report entitled ``Long-Term Health Consequences of 
Exposure to Burn Pits in Iraq and Afghanistan'' and encourages 
the Department to allocate the resources needed to address the 
key research questions identified by the IOM report.
    Outcomes-based prosthetics research.--The Committee is 
aware of the need for comparative outcomes research to 
establish which orthotic and prosthetic services, supports and 
devices generate the best outcomes for which types of veterans. 
The Committee encourages the VA to increase its outcomes-based 
research to guide VA orthotics and prosthetics care. To 
generate a baseline for this research effort, the Committee 
expects a report within 60 days of enactment of this Act 
identifying the individual VA comparative outcomes studies that 
have been completed or are underway for orthotics and 
prosthetics. This report should also include a description of 
the key research questions that need to be addressed in fiscal 
year 2013 and beyond.
    Intelligent prostheses.--The committee encourages the 
Department of Veterans Affairs to increase its research 
supporting advances in the interface between the nervous system 
and intelligent prostheses to give sensation back to amputees.
    Prosthetics for women.--Approximately 6 percent of wounded 
veterans returning from Iraq and Afghanistan are amputees, and 
the number of veterans accessing VA health care for prosthetics 
and sensory aids continues to increase. The Committee remains 
concerned about the lack of resources available for prosthetics 
for women in the military, since most prostheses are designed 
to fit male veterans. The Committee applauds the Prosthetic 
Women's Workgroup and directs the VA, in collaboration with the 
Workgroup, to issue a comprehensive report on female veteran 
amputees and access to prosthetics. This report should be 
submitted to the Committee within 90 days of final passage of 
this legislation.
    Polytrauma rehabilitation technology.--The Committee 
encourages the VA to increase its research in polytrauma 
rehabilitation technology, especially through affiliations with 
universities and non-profit research institutions which are 
developing technologies to support rehabilitation requirements.
    Neurological research.--The Committee is aware that the 
Department is conducting innovative research in new neuro-
diagnostic techniques, the relationship of traumatic brain 
injury (TBI) to PTSD, and clinical strategies to enhance neuro-
rehabilitation of TBI and PTSD that will lead to maximum 
recovery of function and community reintegration. The Committee 
encourages efforts to demonstrate the effectiveness of new 
bench-to-bedside programs to detect and treat cognitive loss 
that accompanies TBI and PTSD in affected veterans.
    Federal neuroscience working group.--The Committee is aware 
that the Office of Science and Technology Policy, within the 
Executive Office of the President, is establishing an 
interagency working group under the auspices of the National 
Science and Technology Council (NSTC) to coordinate investments 
in neuroscience research across the Federal government and 
leverage the potential for significant, transformative advances 
in our fundamental understanding of learning, brain 
development, and brain health and recovery. The goal of the 
working group is to help coordinate, focus and enhance Federal 
efforts related to neuroscience, including efforts to develop 
future clinical treatments for traumatic and acquired brain 
injuries; increase our understanding of cognition and apply 
that knowledge to the improvement of education and learning; 
and improve our understanding of, and develop better therapies 
for neurodegenerative diseases, childhood developmental 
disorders, and other neurological conditions. The Committee 
supports the activities of the NSTC neuroscience working group 
and urges the Department of Veterans Affairs to play an active 
role in it.

                     Medical Care Collections Fund

    The Department of Veterans Affairs Medical Care Collections 
Fund (MCCF) was established by the Balanced Budget Act of 1997 
(Public Law 105-33). The Department deposits first-party and 
pharmacy co-payments, third-party insurance payments and 
enhanced-use collections, long-term care co-payments, 
Compensated Work Therapy Program collections, Compensation and 
Pension Living Expenses Program collections, and Parking 
Program fees into the MCCF. The Department uses these funds for 
medical care and services to veterans. The Congressional Budget 
Office estimate of fees that will be collected in fiscal year 
2013 is $2,527,000,000.

                    National Cemetery Administration





Fiscal year 2012 enacted level........................      $250,934,000
Fiscal year 2013 budget request.......................       258,284,000
Committee recommendation in the bill..................       258,284,000
Comparison with:
    Fiscal year 2012 enacted level....................         7,350,000
    Fiscal year 2013 budget request...................             - - -


    The National Cemetery Administration (NCA) was established 
in accordance with Public Law 93-43, the National Cemeteries 
Act of 1973. It has a fourfold mission: to provide for the 
interment of, in any national cemetery with available grave 
space, the remains of eligible deceased servicemembers and 
discharged veterans, together with their spouses and certain 
dependents, and to permanently maintain their graves; to 
provide headstones for, and to mark graves of eligible persons 
in national, State and tribal, and private cemeteries; to 
administer the grant program for aid to States and tribal 
governments in establishing, expanding, or improving State and 
tribal government veterans' cemeteries; and to administer the 
Presidential Memorial Certificate Program. This appropriation 
will provide for the operation and maintenance of 131 
operational national cemeteries and 33 other cemeterial 
installations.
    The Committee recommends an appropriation of $258,284,000 
for the National Cemetery Administration, an increase of 
$7,350,000 above the fiscal year 2012 enacted level and the 
same as the budget request. The bill includes language making 
$25,828,000 available until September 30, 2014.
    Rural access.--The Committee believes the NCA is not 
adequately serving the nation's veterans in rural areas. While 
the strategy to serve rural veterans outlined in the fiscal 
year 2013 budget request is a partial step, it fails to offer a 
long-term strategy for addressing this unserved veteran 
population. The Committee is concerned that NCA effort and 
funding go primarily toward major urban areas already being 
served, whereas NCA effort towards rural areas appears to be a 
lower priority. In addition, the projects for major urban areas 
tend to be expensive, while serving rural veterans can be done 
at a lower cost.
    In addition to NCA's failure to address the 10 percent of 
veterans who are unserved, it has come to the Committee's 
attention that the NCA projection that 90 percent of all 
veterans are currently being served because they reside within 
a 75-mile radius with a veteran population of 80,000 is 
significantly overstated for several reasons: (1) the NCA 
counts all veterans as served if the 75-mile radius circle 
includes a ``major population center''; by using this 
criterion, the NCA counts as served veterans who are in fact 
outside the 75-mile radius; (2) the NCA's 75-mile radius fails 
to include driving distance, so while veterans may be within 
the 75-mile radius, actual driving distance is in fact far 
greater than 75 miles; (3) the NCA includes 18 national 
cemeteries that are open for cremation only, which limits 
veterans to one burial option; (4) the NCA counts as served all 
veterans in a county, if the majority of the county land is 
within the 75-mile radius; and (5) the NCA counts veterans who 
reside within 75 miles of a State cemetery as served; however, 
some veterans may not qualify for burial in that cemetery 
because of State residency restrictions.
    As a result, the Committee includes bill language requiring 
the Secretary of Veterans Affairs to provide a report to the 
Committee within six months of enactment of this Act. This 
report shall outline a strategy addressing the shortcomings 
identified above, with proposed policies and an implementation 
timeframe. However, prior to the submission of this report, the 
bill requires the GAO to confirm that the criteria listed in 
the bill language have been satisfied. After the GAO makes this 
certification, the report shall be submitted to the Committees 
on Appropriations of the House of Representative and Senate for 
final approval.
    Right of privacy in VA cemeteries.--The Committee reaffirms 
the inviolable individual zone of privacy and individual 
liberty that each American possesses, including the deeply 
private act of choosing the content and creed of an 
individual's funeral, memorial service, or ceremony. In light 
of such an inviolable individual zone of privacy, the Committee 
believes that no official of the Federal government, including 
the Secretary of Veterans Affairs, can believe they have the 
authority to interfere with the content and creed of the 
funeral, memorial service, or ceremony of a deceased 
individual, as expressed by the last will and testament of the 
individual or as determined by the family or agent of the 
individual. When family members of deceased veterans are 
struggling with their grief and sorrow at the cemetery, the 
VA's responsibility is only to provide a setting of 
contemplation and respect so that family and friends can honor 
the veteran with a ceremony chosen only by them, without 
intervention or restriction from the VA. The Committee directs 
the NCA to put forward guidance to ensure that this policy is 
adhered to without exception at every NCA national cemetery in 
this country.

                      Departmental Administration


                         GENERAL ADMINISTRATION

                     (INCLUDING TRANSFER OF FUNDS)




Fiscal year 2012 enacted level........................      $416,737,000
Fiscal year 2013 budget request.......................       416,737,000
Committee recommendation in the bill..................       416,737,000
Comparison with:
    Fiscal year 2012 enacted level....................             - - -
    Fiscal year 2013 budget request...................             - - -


    The general administration account provides funds for the 
Office of the Secretary, six Assistant Secretaries, and three 
independent staff offices. The Committee recommends 
$416,737,000, the same as the fiscal year 2012 enacted level 
and the budget request. The Committee has included bill 
language to make available through September 30, 2014, up to 
$20,837,000 of these funds and to permit the transfer of funds 
in this account to the General operating expenses, Veterans 
Benefits Administration account.
    VA budget office communication.--The Committee has 
traditionally channeled most of its inquiries and requests for 
information and assistance through the VA budget office. The 
Committee reiterates its longstanding position that while the 
Committee reserves the right to call upon all VA offices, the 
primary communication between the Committee and the VA should 
normally be through the budget office. Responses to Committee 
inquiries, regardless of whether they concern funding or 
policy, are to be transmitted without delay by other offices 
within the VA, unless otherwise requested by the Committee. In 
addition, to facilitate the work of the Committee, it expects 
that the Department will make available to all personal and 
committee staff of Members of the Committee the same direct 
contact with the budget office. The Committee also expects that 
a staff member of the VA budget office will be present at every 
meeting held between the Chairman of the Subcommittee and the 
Secretary or other senior VA officials. Resources have been 
provided to the budget office for these communication purposes.
    Quarterly full-time equivalents (FTE) reports.--The 
Committee continues to request that the VA provide, on a 
quarterly basis, the total current FTE by appropriation account 
and, in the case of General operating expenses, Veterans 
Benefits Administration, by program. The Committee feels it 
needs to have current staffing information throughout the year 
in order to monitor the use of salaries and expenses resources.
    Additional budgetary information.--The Committee 
appreciates the changes the VA has made to its budget 
justifications in response to Committee requests for fiscal 
year 2012, but believes that the budget justifications 
submitted each year with the Administration's budget should be 
further expanded to include the following information which 
would help inform Congressional decisions:
          
 a brief explanation of any proposed change 
        in each account's appropriation bill language;
          
 a consolidated administrative expenses chart 
        for the entire Department;
          
 a section identifying each piece of 
        directive report language from the previous year's 
        House, Senate and conference reports and the VA 
        response/action taken for each item;
          
 a table breaking out the funding within the 
        ``administration'' object classification for Medical 
        Services by headquarters, VISN, and medical center 
        categories;
          
 the number of FTE financed in the 
        ``administration'' object classification for Medical 
        Services, broken out by the three categories above;
          
 a table breaking out the funding within the 
        ``administrative contract services'' object 
        classification for Medical Services into headquarters, 
        VISN, and medical center categories;
          
 a table breaking out the number of FTE in 
        the ``all other'' category in the `FTE by Type' Medical 
        Services chart in the Program Resource Data section of 
        the Congressional Submission, by headquarters, VISN, 
        and medical center categories; a listing of the major 
        occupational series supported in the ``all other'' 
        category with the number of FTE in these major 
        categories;
          
 a table identifying the number and 
        percentage of total FTE by occupational series listed 
        in the `FTE by Type' chart who spend 50 percent of more 
        of their time on medical care; and
          
 a detailed summary of the VA marketing 
        campaign budget, including the amounts expended on VA 
        advertising campaigns and a detailed list of outreach 
        methods.
    Transparency of agency contacts.--The Committee is 
concerned that the public has no way to identify staff contacts 
within the Department, either through telephone or e-mail. 
Other major executive branch agencies make available on their 
web sites a directory of staff e-mail addresses and phone 
numbers. While the Committee understands that it is not 
practical to produce a hard copy version of such a directory 
for VA, given the Department's size and mobility, it does not 
understand why an electronic version of a directory is not 
posted on the VA web site. The Committee requests a report not 
later than 60 days following enactment of this Act describing 
how the VA could adapt its internal intranet staff directory to 
a web directory appropriate for the public.
    VA contracting issues.--The Committee continues to be 
concerned about the contracting practices of the Department of 
Veteran Affairs. The Committee believes that the VA should work 
to ensure it is contracting with reputable contractors that 
fulfill their contracts on time, within scope and with full 
payment to subcontractors. The Committee requests a report not 
later than 30 days after enactment of this Act that describes 
the number of active, ongoing contracts with contractors who 
are currently involved in litigation or legal disputes 
regarding nonpayment of their obligations related to VA 
contracts.

      GENERAL OPERATING EXPENSES, VETERANS BENEFITS ADMINISTRATION




Fiscal year 2012 enacted level........................    $2,018,764,000
Fiscal year 2013 budget request.......................     2,164,074,000
Committee recommendation in the bill..................     2,164,074,000
Comparison with:
    Fiscal year 2012 enacted level....................       145,310,000
    Fiscal year 2013 budget request...................             - - -


    The General Operating Expenses, Veterans Benefits 
Administration account provides funding for the Veterans 
Benefits Administration to administer entitlement programs such 
as service-connected disability compensation, education 
benefits, and vocational rehabilitation services.
    The Committee recommends $2,164,074,000 for General 
operating expenses, Veterans Benefits Administration, which is 
$145,310,000 above the fiscal year 2012 enacted level and the 
same as the budget request. The Committee has included bill 
language to make available through September 30, 2014, up to 
$113,000,000 of these funds. Language relating to a limitation 
on purchase of vehicles for the Manila, Philippines regional 
office is no longer necessary and is not included in the bill.
    Claims processing delays.--The Committee believes VA should 
have no higher priority than to reach its ultimate goal by 2015 
of no disability claim being more than 125 days old. However, 
given that the number of claims is increasing each year, that 
60 percent of claims are currently more than 125 days old, and 
that the VA goal for 2013 is to lower that rate to 40 percent 
in 2013, the Committee is somewhat skeptical that the 2015 goal 
will be accomplished. Since the VA believes that the Veterans 
Benefits Management System and improved business processes are 
the keys to overcoming the claims backlog, the Committee 
requests that the VA provide quarterly reports indicating the 
number and location of regional offices that have adopted the 
new paperless claims processing system, as well as the periodic 
enhancement of the paperless system and the rollout of the 
individual improved business processes.
    Backlog at the Oakland, CA and other VA regional offices.--
The Committee remains very concerned about the backlog of 
claims and accuracy of processing at Veterans Affairs Regional 
Offices (VAROs). For example, in May, 2012, the Office of 
Inspector General (OIG) submitted a report on the Oakland, CA 
VARO and found that it lacked effective controls and accuracy 
in processing some disability claims. In addition, the OIG 
report found that the Oakland VARO management did not certify 
that the staff completed all elements of the Systematic 
Technical Accuracy Review (STAR), which is the VBA's multi-
faceted quality assurance program to ensure that veterans and 
other beneficiaries receive accurate and consistent 
compensation and pension benefits. The Committee encourages the 
VA to follow the recommendations outlined in the May, 2012, OIG 
report for the Oakland VARO. The Committee also encourages the 
VA to direct necessary resources to address the backlog and 
provide a report to the Committee, within 30 days following 
enactment of this Act, detailing the efforts to eliminate the 
backlog and improve the accuracy of claims processing within 
six months.
    Furthermore, the Committee is concerned that these problems 
are not limited to the Oakland VARO. The Committee is also 
aware of long delays in claims processing at the Houston and 
Waco, TX and Seattle, WA VAROs. Recognizing that the paperless 
claims system is designed to address the severe backlogs in 
regional offices like these, the Committee directs the VA OIG 
to conduct an analysis of the VA paperless initiative, 
including whether the paperless system has been tested with 
enough claims (original and supplemental) for the VA to be 
confident it is accurate and whether the VA's goals of 
eliminating the disability claims backlog and increasing the 
accuracy rate of processing claims to 98 percent by 2015 are 
still attainable. This report shall be submitted no later than 
90 days after enactment of this Act.
    Claims transformation initiatives.--The Committee is also 
concerned that several regional offices with the highest levels 
of backlogs failed to be included in the initial rollout of the 
``Claims Transformation Initiatives'' and directs the VA to 
ensure that consideration of the size of each regional office's 
backlog is a primary factor in deciding which regional offices 
are slated for a ``Claims Transformation Initiative''.
    Education transition programs.--The Committee is encouraged 
by the budget request's expansion of the VetSuccess on Campus 
initiative that provides outreach and transition services to 
veterans during their transition from the military to college. 
The program provides on-campus vocational rehabilitation 
counselors and Vet Center outreach coordinators to ensure the 
coordinated delivery of health, education and benefit services 
to veteran-students.
    Access in remote areas.--The Committee encourages the 
Veteran Benefits Administration to work to increase the 
presence of staff in remote or underserved areas such as the 
Commonwealth of the Northern Mariana Islands. Making sure that 
veterans in remote and underserved areas receive access to 
veterans services is essential to honoring their sacrifices.
    Crowdsourcing.--The Committee is pleased with VA's efforts 
through the Veterans Relationship Management Program to expand 
its automated tools to communicate with veterans and to create 
user-centric access to VA information. The Committee urges the 
VA to move to the next level with this user-centric approach by 
testing the crowdsourcing method of obtaining customer opinions 
on quality of care or benefits determinations. With the use of 
customer kiosks or applications on hand-held devices, VA could 
obtain nearly real-time feedback from veterans on the 
timeliness and quality of their medical visits or disability 
reviews. A pilot program designed around a specific aspect of 
the service would provide VA with the opportunity to test the 
concept, gauge the level of customer interest, and assess the 
quality of the data. The data could then be aggregated to 
produce trend analysis to support decision-making around 
operational improvements resulting in cost efficiencies and/or 
increased quality of service. An important component to the 
overall success of the pilot would be managing and effectively 
moderating the site and data collected. The Committee requests 
a report not later than 60 days after enactment of this Act 
describing how such a crowdsourcing demonstration project would 
be conducted.

                     INFORMATION TECHNOLOGY SYSTEMS

                     (INCLUDING TRANSFER OF FUNDS)




Fiscal year 2012 enacted level........................    $3,111,376,000
Fiscal year 2013 budget request.......................     3,327,444,000
Committee recommendation in the bill..................     3,327,444,000
Comparison with:
    Fiscal year 2012 enacted level....................       216,068,000
    Fiscal year 2013 budget request...................             - - -


    The Information Technology Systems account supports 
information technology (IT) services such as systems 
development and performance, operations and maintenance, 
information protection, and customer support. The program 
permits the effective and efficient delivery of veterans' 
healthcare services and benefits programs.
    The Committee recommends an appropriation of $3,327,444,000 
for Information Technology Systems, which is $216,068,000 above 
the fiscal year 2012 appropriation and the same as the budget 
request. Within the account total, the Committee allocates in 
bill language $1,021,000,000 for pay and associated costs; 
$1,812,045,000 for operations and maintenance; and $494,399,000 
for development, modernization, and enhancement. Three percent 
of pay and associated costs funds and seven percent of 
operations and maintenance funds are available until September 
30, 2014. All development, modernization, and enhancement funds 
are available until September 30, 2014.
    The Committee continues to include bill language 
prohibiting obligation or expenditure of funds for information 
technology systems development, modernization and enhancement 
until the VA submits to the Committee a certification of the 
amounts. In addition, the Committee continues bill language 
permitting the transfer of funding among the three subaccounts 
upon approval of the Committees. The bill contains language in 
this account that was formerly in an administrative provision 
which allows for the reprogramming of funds among development, 
modernization and enhancement projects upon prior notification 
to, and approval by, the Committee. The bill continues to 
include language indicating that funds for development, 
modernization and enhancement are available only for the 
projects and in the amounts specified in the report 
accompanying the bill.
    The chart below reflects the Administration's budget 
request for development projects and includes the Committee 
recommendation for each. This chart will serve as the 
Department's approved list of development projects, and all 
requested changes are subject to the reprogramming guidelines 
as outlined in the accompanying Act.
<GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT>

    Lastly, the bill includes language that restricts the 
availability of more than 25 percent of the funds provided to 
develop an integrated DOD-VA electronic health record until the 
DOD-VA Interagency Program Office submits a fiscal year 2013 
execution and spending plan, as well as a long-term roadmap for 
the life of the project that includes elements such as annual 
and total spending for each Department and a quarterly schedule 
and milestones for each Department. The House DOD 
appropriations bill includes comparable language. The Committee 
is encouraged by the long-awaited agreement by both Departments 
to commit to one integrated electronic health record, but wants 
to be certain that the agreement is accompanied by a strategic 
plan that directs the development plans of both agencies.
    Obligations report.--The Committee expects the Office of 
Information Technology to continue to provide an IT expenditure 
report to the Committees on Appropriations on a monthly basis. 
This report shall include a comparison to the project costs 
included in the development, modernization, and enhancement 
project funding chart included in the House report, and provide 
an explanation for any differences in excess of $1,000,000.
    Integrated electronic health records.--For years, the 
Committee has been encouraging and funding efforts by VA and 
DOD to develop interoperable technology to facilitate the rapid 
exchange of patient and beneficiary information that will yield 
consolidated, coherent and consistent access to electronic 
records between VA and DOD. Integrated electronic health 
records would significantly improve the delivery of care to 
servicemembers transitioning from military to civilian life. 
The Committee is encouraged by recent agreements between the 
Secretaries of VA and DOD to develop an integrated electronic 
health record, which will require both departments to integrate 
business requirements, acquisitions and technical approaches. 
The Committee provides a total of $169,000,000--$104,000,000 
for development and $65,000,000 for operations and 
maintenance--as requested in the budget for the continued 
implementation of an integrated electronic health record.
    Project monitoring.--The Committee is concerned by the 
findings of an August 2011 report by the VA Office of Inspector 
General (OIG) that raised questions about the lack of 
management controls over self-reported data in the Project 
Management Accountability System (PMAS). The VA uses PMAS to 
track its IT projects on cost and schedule milestones. The OIG 
found that revised data simply replaced existing data so that 
PMAS cannot be used to provide reliable project status. The 
Committee urges the VA to adopt stricter controls in the future 
for the PMAS system.

                      OFFICE OF INSPECTOR GENERAL




Fiscal year 2012 enacted level........................      $112,391,000
Fiscal year 2013 budget request.......................       113,000,000
Committee recommendation in the bill..................       113,000,000
Comparison with:
    Fiscal year 2012 enacted level....................           609,000
    Fiscal year 2013 budget request...................             - - -


    The Office of Inspector General (OIG) was established by 
the Inspector General Act of 1978 and is responsible for the 
audit, investigation, and inspection of all Department of 
Veterans Affairs programs and operations. The overall 
operational objective is to focus available resources on areas 
which would help improve services to veterans and their 
beneficiaries, assist managers of Department programs to 
operate economically in accomplishing program goals, and to 
prevent and deter recurring and potential fraud, waste, and 
inefficiencies.
    The Committee recommends an appropriation of $113,000,000 
for the Office of Inspector General, an increase of $609,000 
above the fiscal year 2012 enacted level and the same as the 
budget request. The bill makes $6,000,000 of the total funding 
available until September 30, 2014.
    Conference costs.--The Committee is concerned by recent 
reports of inappropriate, lavish spending by an executive 
branch agency on off-site conferences. The Committee requests 
that the OIG conduct a review of the policies and controls 
instituted by the Department to manage costs associated with 
conference-related activities and identify any vulnerabilities 
in such policies. The review should describe any independent 
examination of the size, location, and criticality of proposed 
meetings. The report from the OIG should also include 
descriptions of any recent OIG findings about questionable VA 
expenses for conferences and conference-associated travel. This 
report is requested no later than 180 days after enactment of 
this Act.

                      CONSTRUCTION, MAJOR PROJECTS




Fiscal year 2012 enacted level........................      $589,604,000
Fiscal year 2013 budget request.......................       532,470,000
Committee recommendation in the bill..................       532,470,000
Comparison with:
    Fiscal year 2012 enacted level....................      (57,134,000)
    Fiscal year 2013 budget request...................             - - -


    The Construction, Major Projects appropriation provides for 
constructing, altering, extending, and improving any of the 
facilities under the jurisdiction or for the use of the 
Department of Veterans Affairs, including planning, 
architectural and engineering services, assessments, and site 
acquisition where the estimated cost of a project is 
$10,000,000 or more.
    The Committee recommends an appropriation of $532,470,000 
for Construction, Major Projects, a decrease of $57,134,000 
from the fiscal year 2012 enacted level and the same as the 
budget request. The Committee recommendation makes these funds 
available for a five-year period rather than until expended, 
reflecting concern about the lengthy period that VA has taken 
to design and build major construction projects. The Committee 
hopes that limiting the time period during which these funds 
may be used will motivate the VA to better plan and design 
projects before funding is requested.
    The Committee recommendation provides funding for 4 
continuing major construction projects, which would require an 
additional $630,430,000 to complete in future years. This is in 
addition to an unfunded obligation of $5,287,709,000 for 17 
projects that were started in previous years, but not supported 
in the fiscal year 2013 budget request.
    The Committee recommendation includes language in 
administrative provisions which requires the Department to 
notify the Committee of all bid savings on contracts for 
construction projects that total at least $5,000,000 or 5 
percent of the programmed amount of the project and prohibits 
any changes from the original scope of work identified in the 
justification material submitted with the budget for each 
project.
    The Committee requests that the VA submit a report no later 
than 90 days after enactment of this Act describing the 
contract audit program that VA uses to review the progress and 
budgeting on-site of major construction projects, the number of 
times and at what stages of construction the teams conduct the 
reviews, the critical path method used to track the components 
of each project, and the periodic reporting done by the 
building contractors.
    The specific amounts recommended by the Committee are as 
follows:

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                                                     Committee
                    Location                                Description             2013 request  recommendation
----------------------------------------------------------------------------------------------------------------
Veterans Health Administration (VHA):
    St. Louis, MO..............................  Med Facility Improvements........  $130,300,000   $130,300,000
    Palo Alto, CA..............................  Polytrauma/Ambulatory Care.......   177,823,000    177,823,000
    Seattle, WA................................  Mental Health Bldg...............    55,000,000     55,000,000
    Dallas, TX.................................  Spinal Cord Injury...............    33,500,000     33,500,000
    Advance Planning Fund......................  .................................    70,000,000     70,000,000
    Asbestos...................................  .................................     8,000,000      8,000,000
    Major Construction Staff...................  .................................    24,000,000     24,000,000
    Claims Analysis............................  .................................     2,000,000      2,000,000
    Facility Security..........................  .................................     7,200,000      7,200,000
    Hazardous Waste............................  .................................     5,000,000      5,000,000
    Judgment Fund..............................  .................................     5,000,000      5,000,000
                                                                                   -----------------------------
      Total VHA................................  .................................   517,823,000    517,823,000
National Cemetery Administration (NCA):
    Advance Planning Fund......................  .................................     2,647,000      2,647,000
    NCA Land Acquisition Fund..................  .................................     7,000,000      7,000,000
                                                                                   -----------------------------
      Total NCA................................  .................................     9,647,000      9,647,000
    General Administration--Staff Offices        .................................     5,000,000      5,000,000
     Advance Planning Fund.
                                                                                   -----------------------------
      Major construction total.................  .................................   532,470,000    532,470,000
----------------------------------------------------------------------------------------------------------------

                      CONSTRUCTION, MINOR PROJECTS




Fiscal year 2012 enacted level........................      $482,386,000
Fiscal year 2013 budget request.......................       607,530,000
Committee recommendation in the bill..................       607,530,000
Comparison with:
    Fiscal year 2012 enacted level....................       125,144,000
    Fiscal year 2013 budget request...................             - - -


    The Construction, Minor Projects appropriation provides for 
constructing, altering, extending, and improving any of the 
facilities under the jurisdiction or for the use of the 
Department, including planning, assessment of needs, 
architectural and engineering services, and site acquisition, 
where the estimated cost of a project is less than $10,000,000.
    The Committee recommends an appropriation of $607,530,000 
for Construction, Minor Projects, an increase of $125,144,000 
above the fiscal year 2012 enacted level and the same as the 
budget request. As with the major construction account, the 
Committee recommendation makes these funds available for a 
five-year period rather than until expended, reflecting concern 
about the long period that VA has taken to design and build 
construction projects.
    Inadequate controls on projects.--The Committee was 
disturbed to learn of rogue spending on a minor construction 
project at the Miami, FL medical center. Apparently, local and 
headquarters controls were either inadequate or ignored to 
permit the consolidation of two minor construction projects 
into one major construction project, along with the 
supplementation of that budget with substantial funding from 
the medical facilities account. These actions were taken 
completely without legislative authorization. Work on the 
project was 85 percent complete when headquarters finally 
issued a stop work order. VA is now in the process of 
investigating this disturbing breach. But the Committee has 
lost confidence in the ability of VA to manage its facility 
construction and directs the VA OIG to conduct its own 
investigation. The Committee requests the OIG to provide a 
report by September 30, 2012, describing the procedures, 
financial controls and the chain of command used by VA to: 
allocate appropriations for individual minor construction 
projects; determine the use of medical facilities funding at 
the VISN and medical center level; periodically review the 
obligations and construction progress on individual projects; 
provide independent verification and review of project 
budgeting, quality, and timeliness; and report to regional and 
headquarter offices on individual project design, construction 
and spending. The Committee is particularly concerned that VA 
may be inappropriately using medical facilities funding to 
supplement construction projects rather than incorporating 
those elements into the projects themselves and requests the 
OIG to investigate whether this has occurred in other 
construction projects. The Committee looks forward to 
recommendations from the OIG regarding any necessary internal 
VA procedural changes and/or Congressional action.
    BURR Initiative.--The Committee continues to be concerned 
that every effort be made to address housing needs of veterans, 
including the homeless and other special needs populations. The 
Building Utilization Review and Repurposing (BURR) Initiative, 
through its use of the Enhanced Use Lease authorities, was 
implemented to provide a vehicle for expanding the number of 
units available to the veteran community through the leverage 
of private sector funding. The Committee requests VA to provide 
not later than 90 days after the enactment of this Act an 
update on the current status of the program, including in its 
analysis current veteran participation and recommendations to 
advance its implementation.
    Health care center expansions.--Recognizing the lack of 
accessible VA services in many regions of the country, the 
Committee requested in the fiscal year 2012 report that VA 
include in the VA Strategic Capital Improvement Plan (SCIP) the 
expansion of existing VA health care centers to include 
inpatient accommodations, urgent care services, and the full 
range of services required by women veterans when the absence 
of such services locally requires veterans to make round trips 
of more than five hours to access such services at a VA 
facility. The Committee directs the VA to report whether any 
health care center facilities currently in the SCIP include 
inpatient accommodations and urgent care. If such facilities 
are not currently included in the SCIP, the report should 
provide an explanation of why this is not VA's preferred 
mechanism to address veterans' access problems. Such a report 
shall be due February 1, 2013.
    Joint facilities.--The Committee continues to support the 
development of ``joint'' DOD/VA medical facilities, where 
feasible. Where either DOD or VA plans to construct new medical 
facilities, such as the hospitals at Fort Benning and Fort 
Bliss, the clinic at Fort Ord, etc., the Committee urges the 
Departments to consider a joint medical facility that can serve 
both active duty servicemembers and veterans. Additionally, 
House Report 112-94 directed the GAO to conduct a review of the 
effectiveness and cost-efficiency of joint facilities. The 
Committee looks forward to learning the results of this review 
and urges both the DOD and the VA to consider incorporating GAO 
recommendations in future budget requests.
    Historical artifacts.--The VA maintains historic buildings 
nationwide which house documents, photographs, and artifacts 
that are not stored at the National Archives and which are 
stored under conditions that do not meet Federal curation 
requirements. The Committee supports efforts by the Veterans 
Health Administration to take steps to improve storage and 
access by scholars and the public to historic artifacts that 
demonstrate the proud tradition of health care for veterans. 
The Committee also encourages VA to establish training for its 
personnel for the maintenance of these artifacts.

       GRANTS FOR CONSTRUCTION OF STATE EXTENDED CARE FACILITIES




Fiscal year 2012 enacted level........................       $85,000,000
Fiscal year 2013 budget request.......................        85,000,000
Committee recommendation in the bill..................        85,000,000
Comparison with:
    Fiscal year 2012 enacted level....................             - - -
    Fiscal year 2013 budget request...................             - - -


    This appropriation provides grants to assist States to 
construct State home facilities, for furnishing domiciliary or 
nursing home care to veterans, and to expand, remodel, or alter 
existing buildings for furnishing domiciliary, nursing home, or 
hospital care to veterans in State homes. A grant may not 
exceed 65 percent of the total cost of the project.
    The Committee recommends an appropriation of $85,000,000 
for Grants for Construction of State Extended Care Facilities, 
available until expended, which is the same as the fiscal year 
2012 enacted level and the budget request.

             GRANTS FOR CONSTRUCTION OF VETERANS CEMETERIES




Fiscal year 2012 enacted level........................       $46,000,000
Fiscal year 2013 budget request.......................        46,000,000
Committee recommendation in the bill..................        46,000,000
Comparison with:
    Fiscal year 2012 enacted level....................             - - -
    Fiscal year 2013 brequest...................             - - -


    This program provides grants to assist States and tribal 
governments with the establishment, expansion, and improvement 
of veterans cemeteries which are operated and permanently 
maintained by the States and tribal governments. Grants under 
this program fund up to 100 percent of construction costs and 
the initial equipment expenses when the cemetery is 
established. The States and tribal governments remain 
responsible for providing the land and for paying all costs 
related to the operation and maintenance of the State 
cemeteries, including the costs for subsequent equipment 
purchases.
    The Committee recommends an appropriation of $46,000,000 
for Grants for Construction of Veterans Cemeteries to be 
available until expended, which is the same as the fiscal year 
2012 enacted level and the budget request.

                       Administrative Provisions

    The bill includes 28 provisions that were in effect in 
fiscal year 2012 and 4 new provisions. The administrative 
provisions included in the bill are as follows:

                     (INCLUDING TRANSFER OF FUNDS)

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

                     (INCLUDING TRANSFER OF FUNDS)

    Section 202 allows the Department to transfer funding among 
the three medical appropriations accounts in fiscal year 2013. 
The Administration proposal to modify this provision is not 
adopted.
    Section 203 allows for salaries and expenses funds to be 
used for hire of passenger vehicles, lease of facilities or 
land, and purchase of uniforms.
    Section 204 provides that only funding in the 
``Construction, major projects'' and ``Construction, minor 
projects'' accounts can be used for the purchase of any site 
for any new hospital or home or to construct any new hospital 
or home.
    Section 205 requires the Department to be reimbursed for 
medical services it provides to any person not defined as a 
beneficiary to ensure the Department is receiving payment for 
all medical services provided.
    Section 206 allows for the use of funds appropriated in 
fiscal year 2013 for ``Compensation and pensions'', 
``Readjustment benefits'', and ``Veterans insurance and 
indemnities'' for payment of accrued obligations recorded in 
the last quarter of fiscal year 2012.
    Section 207 allows for the use of fiscal year 2013 funds to 
pay prior year obligations resulting from implementation of 
sections 3328(a), 3334, and 3712(a) of title 31, United States 
Code.

                     (INCLUDING TRANSFER OF FUNDS)

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

                     (INCLUDING TRANSFER OF FUNDS)

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

                     (INCLUDING TRANSFER OF FUNDS)

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

                     (INCLUDING TRANSFER OF FUNDS)

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

                     (INCLUDING TRANSFER OF FUNDS)

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

                     (INCLUDING TRANSFER OF FUNDS)

    Section 220 requires the Department to notify and receive 
approval from the Committees on Appropriations of any proposed 
transfer of funding to or from the ``Information technology 
systems'' account. The Administration proposal to modify this 
provision is not adopted.
    Section 221 limits the amount of funding made available 
under the ``Medical facilities'' account for non-recurring 
maintenance that may be obligated during the last two months of 
the fiscal year. The Administration proposal to delete this 
provision is not adopted.

                     (INCLUDING TRANSFER OF FUNDS)

    Section 222 permits the transfer of $247,356,000 
appropriated for medical accounts, minor construction, and 
information technology systems to the Joint Department of 
Defense-Department of Veterans Affairs Medical Facility 
Demonstration Fund for the operation of facilities designated 
as combined Federal medical facilities.

                     (INCLUDING TRANSFER OF FUNDS)

    Section 223 permits the transfer of funds deposited in the 
Medical Care Collections Fund to the Joint Medical Facility 
Demonstration Fund for facilities designated as combined 
Federal medical facilities.

                     (INCLUDING TRANSFER OF FUNDS)

    Section 224 directs that a minimum of $15,000,000 shall be 
transferred from three medical appropriations to the Department 
of Defense/Department of Veterans Affairs Health Care Sharing 
Incentive Fund, to be available until expended.

                    (INCLUDING RESCISSIONS OF FUNDS)

    Section 225 rescinds fiscal year 2013 funds from three 
medical accounts and re-appropriates them for fiscal year 2013 
with two-year availability. The amounts provided with two-year 
availability are $650,000,000 higher than in the fiscal year 
2012 appropriation.
    Section 226 requires the Secretary to notify the Committees 
on Appropriations of both Houses of Congress of all bid savings 
in Major Construction projects that total at least $5,000,000, 
or five percent of the programmed amount, whichever is less. 
Such notification must occur within 14 days of a contract. The 
Secretary is required to notify the Committees 14 days prior to 
the obligation of such bid savings and shall describe the 
anticipated use of such savings. The budget request proposed to 
delete this provision.
    Section 227 prohibits the original scope of work for a 
Major Construction project from being increased above the scope 
specified for that project in the original justification data 
provided to the Congress as part of the request for 
appropriations. The budget request proposed to delete this 
provision.
    Section 228 requires the VA to provide a quarterly report 
on any single national outreach and awareness marketing 
campaign exceeding $2,000,000. The budget request proposed to 
delete this provision.
    Section 229 requires Congressional notification of 
significant funding requirements identified in updates to the 
enrollee projection model.
    Section 230 requires reprogramming if the Department wishes 
to change the spending on Health Services initiatives 
identified in the budget by ten percent or more.

                    (INCLUDING RESCISSIONS OF FUNDS)

    Section 231 rescinds funding already appropriated in 
Medical Care advance appropriations for the 0.5 percent cost of 
living adjustment for Federal employees that is proposed in the 
budget request.
    Section 232 reduces fiscal year 2013 current year funded 
accounts by the amount of the 0.5 percent cost of living 
adjustment for Federal employees that is proposed in the budget 
request.

                               TITLE III


                            RELATED AGENCIES


                  American Battle Monuments Commission


                         SALARIES AND EXPENSES




Fiscal year 2012 enacted level........................       $61,100,000
Fiscal year 2013 budget request.......................        58,400,000
Committee recommendation in the bill..................        59,290,000
Comparison with:
    Fiscal year 2012 enacted level....................       (1,810,000)
    Fiscal year 2013 budget request...................           890,000


    The American Battle Monuments Commission is responsible for 
the administration, operation and maintenance of cemetery and 
war memorials to commemorate the achievements and sacrifices of 
the American Armed Forces where they have served since April 6, 
1917. In performing these functions, the Commission maintains 
24 permanent American military cemetery memorials and 25 
monuments, memorials, and markers.
    The Committee recommends an appropriation of $59,290,000 
for the American Battle Monuments Commission's salaries and 
expenses account, which is $890,000 more than the budget 
request. The Committee recommendation includes $5,000,000 for 
the interpretation program and does not include the requested 
pay raise.
    Language is included allowing up to $7,500 to be used for 
official reception and representation expenses.
    Manila American Cemetery.--The Committee strongly supports 
the American Battle Monuments Commission's (ABMC) commitment to 
the promise made by the first ABMC Chairman, General Pershing--
that ``time will not dim the glory of their deeds''. The 
Committee believes that the ABMC is doing an outstanding job of 
telling the stories of service and sacrifice in the European 
theater through interpretive center projects at the Cambridge 
American Cemetery in England, Sicily-Rome American Cemetery in 
Italy, and at the Pointe du Hoc Ranger Monument in Normandy, 
France. The Committee believes that the story of the Pacific 
Theater is just as significant and is pleased to see that the 
ABMC recognizes this as well. The Committee has included 
funding, as proposed in the budget request, for a perimeter 
wall and building improvements at the Manila American Cemetery. 
The Committee also understands that the ABMC is in the process 
of developing a master plan for the Manila American Cemetery 
that will improve the infrastructure of the cemetery and 
establish an enhanced interpretation program. The Committee is 
committed to telling the story of the Pacific theater and looks 
forward to the completion of the Manila master plan.

                 FOREIGN CURRENCY FLUCTUATIONS ACCOUNT




Fiscal year 2012 enacted level........................       $16,000,000
Fiscal year 2013 budget request est...................        15,200,000
Committee recommendation in the bill est..............        15,200,000
Comparison with:
    Fiscal year 2012 enacted level....................         (800,000)
    Fiscal year 2013 budget request...................             - - -


    The Commission's Foreign Currency Fluctuations Account is 
authorized pursuant to 36 U.S.C. 2109 to pay the costs of 
salaries and expenses that exceed the amount appropriated 
because of fluctuations in currency exchange rates of foreign 
countries occurring after a budget request for the Commission 
is submitted to Congress. The account may not be used for any 
other purpose.
    The Committee recommendation includes bill language as 
proposed which makes ``such sums as may be necessary'' 
available to the Commission to cover unanticipated foreign 
currency fluctuations, currently estimated at $15,2000,000.

           United States Court of Appeals for Veterans Claims


                         SALARIES AND EXPENSES




Fiscal year 2012 enacted level........................       $30,770,000
Fiscal year 2013 budget request.......................        32,481,000
Committee recommendation in the bill..................        31,187,000
Comparison with:
    Fiscal year 2012 enacted level....................           417,000
    Fiscal year 2013 budget request...................       (1,294,000)


    The Veterans' Judicial Review Act established the U.S. 
Court of Appeals for Veterans Claims. The Court reviews appeals 
from claimants seeking review of a benefit denial. The Court 
has the authority to overturn findings of fact, regulations, 
and interpretations of law.
    The Committee recommends an appropriation of $31,187,000 
for the U.S. Court of Appeals for Veterans Claims, an increase 
of $417,000 above the fiscal year 2012 enacted level and 
$1,294,000 below the budget request. The recommendation does 
not include the requested pay raise and reduces the amount 
available for rent. Of the amount provided, $2,726,000 is to be 
used for the pro bono representation program.

         Department of Defense--Civil Cemeterial Expenses, Army


                         SALARIES AND EXPENSES




Fiscal year 2012 enacted level........................       $45,800,000
Fiscal year 2013 budget request.......................        45,800,000
Committee recommendation in the bill..................       173,733,000
Comparison with:
    Fiscal year 2012 enacted level....................       127,933,000
    Fiscal year 2012 budget request...................       127,933,000


    The Secretary of the Army is responsible for the 
administration, operation and maintenance of Arlington National 
Cemetery and the Soldiers' and Airmen's Home National Cemetery. 
In addition to its principal function as a national cemetery, 
Arlington is the site of approximately 3,000 non-funeral 
ceremonies each year and has approximately 4,000,000 visitors 
annually.
    The Committee does not support the budget request proposal 
to fund Arlington National Cemetery through three separate 
accounts contained in two different appropriations bills. The 
budget request proposed $25,000,000 to be provided through 
Operation and Maintenance, Army, $103,000,000 to be provided 
through Military Construction, Army, and $45,800,000 to be 
provided through Cemeterial Expenses, Army for a total of 
$173,800,000. The Committee recommends an appropriation of 
$173,733,000 for Cemeterial Expenses, Army. The Committee 
recommendation does not include funds requested for a pay 
increase.
    The Committee directs future budget requests for Cemeterial 
Expenses, Army to include additional programmatic information 
on information technology (IT) beginning in fiscal year 2014. 
The budget request shall include a description of the IT 
activities funded, the total cost and FTEs for these 
activities, and the activities, cost, and FTEs included in the 
budget request. Further, the Committee directs that the budget 
request indicate whether the activities are for IT development 
or operations and maintenance.
    The Committee recommendation includes bill language that 
designates not less than $84,000,000 for the Millennium 
Project.

                      Armed Forces Retirement Home


                       OPERATION AND MAINTENANCE




Fiscal year 2012 enacted level........................       $65,700,000
Fiscal year 2013 budget request.......................        65,590,000
Committee recommendation in the bill..................        65,590,000
Comparison with:
    Fiscal year 2012 enacted level....................         (110,000)
    Fiscal year 2013 budget request...................             - - -


    The Armed Forces Retirement Home (AFRH) consists of two 
retirement communities, one in Washington, D.C. and the other 
in Gulfport, Mississippi. The Washington, D.C. facility was 
established in 1851 as a soldiers' home for elderly and 
disabled veterans. The original home for Navy officers, 
sailors, and Marines was established in Philadelphia, 
Pennsylvania in 1811, and was relocated to Gulfport, 
Mississippi almost a century and a half later.
    The Committee recommendation provides authority to expend 
$65,590,000 from the Armed Forces Retirement Home Trust Fund to 
operate and maintain the Armed Forces Retirement Home--
Washington, District of Columbia, and the Armed Forces 
Retirement Home--Gulfport, Mississippi. The amount recommended 
is $110,000 below the fiscal year 2012 enacted level and equal 
to the budget request.

                            CAPITAL PROGRAM




Fiscal year 2012 enacted level........................        $2,000,000
Fiscal year 2013 budget request.......................         2,000,000
Committee recommendation in the bill..................         2,000,000
Comparison with:
    Fiscal year 2012 enacted level....................             - - -
    Fiscal year 2013 budget request...................             - - -


    The Committee recommendation provides authority to expend 
$2,000,000 from the Armed Forces Retirement Home Trust Fund for 
construction and renovations. The amount recommended is the 
same as the fiscal year 2012 enacted level and equal to the 
budget request.

           GENERAL FUND PAYMENT, ARMED FORCES RETIREMENT HOME




Fiscal year 2012 enacted level........................       $14,630,000
Fiscal year 2013 budget request.......................             - - -
Committee recommendation in the bill..................             - - -
Comparison with:
    Fiscal year 2012 enacted level....................     ($14,630,000)
    Fiscal year 2013 budget request...................             - - -


    The Committee recommendation does not include a general 
funds payment for the Armed Forces Retirement Home. Funds were 
provided in fiscal year 2012 to mitigate structural damage 
sustained to buildings as a result of the earthquake in 
Washington, D.C. The budget request did not propose any 
additional funds for this purpose for fiscal year 2013, and the 
Committee anticipates that funding provided in fiscal year 2012 
will be sufficient to accomplish necessary repairs.

                                TITLE IV


                    OVERSEAS CONTINGENCY OPERATIONS


                         Department of Defense





Fiscal year 2012 enacted level (title IV).............      $269,703,000
Fiscal year 2013 budget request (title IV)............             - - -
Committee recommendation in the bill (title IV).......       150,768,000
Comparison with:
    Fiscal year 2012 enacted level (title IV).........     (118,935,000)
    Fiscal year 2013 budget request (title IV)........       150,768,000


              Military Construction, Navy and Marine Corps

    The Committee recommendation includes a new title IV, 
Overseas Contingency Operations. Title IV provides $150,768,000 
for Navy and Marine Corps military construction projects in the 
Central Command and Africa Command Areas of Responsibility that 
were requested in title I, Military Construction, in the budget 
submission for fiscal year 2013. The Committee agrees that the 
projects transferred to title IV are necessary to support the 
war on terrorism and should be designated as overseas 
contingency operations functions.

                       Administrative Provisions


                    (INCLUDING RESCISSION OF FUNDS)

    The bill includes section 401 rescinding unobligated 
balances from section 2005 in title X, of Public Law 112-10 and 
division H in title IV, of Public Law 112-74 in the specific 
amount of $150,768,000.
    The bill includes section 402 that amounts designated in 
this Act by the Congress for Overseas Contingency Operations/
Global War on Terrorism pursuant to section 251(b)(2)(A)(ii) of 
the Balanced Budget and Emergency Deficit Control Act of 1985 
shall be available (or rescinded, if applicable) only if the 
President subsequently so designates all such amounts and 
transmits such designations to the Congress.

                                TITLE V


                           GENERAL PROVISIONS

    The bill includes 13 provisions that are effective in 
fiscal year 2012 and five new provisions as follows:
    Section 501 prohibits the obligation of funds beyond the 
current fiscal year unless expressly so provided.
    Section 502 prohibits the use of funds for programs, 
projects or activities not in compliance with Federal law 
relating to risk assessment, the protection of private property 
rights, or unfunded mandates.
    Section 503 prohibits the use of funds to support or defeat 
legislation pending before Congress.
    Section 504 encourages all departments and agencies funded 
in this Act to expand the use of ``E-Commerce'' technologies 
and procedures.
    Section 505 specifies the Congressional committees that are 
to receive all reports and notifications.
    Section 506 is made permanent and prohibits the transfer of 
funds to any instrumentality of the United States Government 
without authority from an appropriations Act.
    Section 507 prohibits any funds in this Act to be used for 
a project or program named for an individual serving as a 
Member, Delegate, or Resident Commissioner of the United States 
House of Representatives.
    Section 508 requires all reports submitted to the Congress 
to be posted on official websites of the submitting agency.
    Section 509 prohibits the use of funds to establish or 
maintain a computer network unless such network blocks the 
viewing, downloading, and exchanging of pornography, except for 
law enforcement investigation, prosecution or adjudication 
activities.
    Section 510 prohibits funds in this Act for the Association 
of Community Organizations for Reform Now.
    Section 511 prohibits the use of funds made available in 
this Act to exercise the power of eminent domain without just 
compensation.
    Section 512 prohibits the use of funds in this Act for the 
renovation, expansion, or construction of any facility in the 
continental United States for the purpose of housing any 
individual who has been detained at the United States Naval 
Station, Guantanamo Bay, Cuba.
    Section 513 prohibits the use of funds for payment of 
first-class travel by an employee of the executive branch.
    Section 514 prohibits the use of funds in this Act for any 
contract where the contractor has not complied with E-Verify 
requirements.
    Section 515 prohibits the use of funds in this Act for any 
contract, memorandum of understanding, or cooperative agreement 
with any corporation convicted of a felony criminal violation 
within the preceding 24 months.
    Section 516 prohibits the use of funds in this Act for any 
contract, memorandum of understanding, or cooperative agreement 
with any corporation with an unpaid tax liability.
    Section 517 prohibits the use of funds for construction bid 
solicitations that require or prohibit project labor 
agreements.
    Section 518 establishes a ``Spending Reduction Account'' in 
the bill.

              House of Representatives Report Requirements

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

                 Changes in Application of Existing Law

    Pursuant to clause 3(f)(1)(A) of rule XIII of the Rules of 
the House of Representatives, the following statements are 
submitted describing the effect of provisions in the 
accompanying bill that directly or indirectly change the 
application of existing law.
    Language is included in various parts of the bill to 
continue on-going activities that require annual authorization 
or additional legislation, which to date have not been enacted.
    Language is included in various parts of the bill to place 
limitations on the use of funds in the bill or change existing 
limitations and which might, under some circumstances, be 
construed as changing the application of existing law.
    Language is included in various parts of the bill to allow 
the Secretary of Defense to exceed certain limitations upon 
notification to the Committee.
    Language is included in various parts of the bill to allow 
funding to be used for official reception and representation 
expenses.
    Language is included in various parts of the bill to enable 
various appropriations to remain available for more than one 
year for some programs for which the basic authority 
legislation does not presently authorize such extended 
availability.
    Language is included in various parts of the bill to permit 
the transfer of funds to other accounts.
    Language is included under Title I to prohibit payments for 
cost-plus-a-fixed-fee contracts under certain circumstances.
    Language is included in various parts of the bill to allow 
funds to be used for the hire of passenger motor vehicles.
    Language is included under Title I to allow advances to the 
Federal Highway Administration, Department of Transportation 
under certain circumstances.
    Language is included under Title I to prohibit the use of 
funds to begin construction of new bases without specific 
appropriations.
    Language is included under Title I to prohibit the use of 
funds for purchase of land or land easements under certain 
circumstances.
    Language is included under Title I to prohibit the use of 
funds for land acquisition, site preparation, and utility 
installation for family housing unless funds have been made 
available in annual appropriations Acts.
    Language is included under Title I to prohibit the use of 
minor construction funds to transfer an activity between 
installations without prior notification.
    Language is included under Title I to prohibit the use of 
funds for the procurement of steel for any activity if American 
steel producers have been denied the opportunity to compete for 
such steel procurements.
    Language is included under Title I to prohibit the use of 
funds to pay real property taxes in any foreign nation.
    Language is included under Title I to prohibit the use of 
funds to initiate a new installation overseas without prior 
notification.
    Language is included under Title I to limit the use of 
funds for architect and engineer contracts under certain 
circumstances.
    Language is included under Title I to limit the use of 
funds for awarding contracts to foreign contractors under 
certain circumstances.
    Language is included under Title I to require the 
Department of Defense to notify the appropriate committees of 
Congress of any proposed military exercises under certain 
circumstances.
    Language is included under Title I to allow prior year 
construction funding to be available for currently authorized 
projects.
    Language is included under Title I to allow payment for the 
cost associated with supervision, inspection, overhead, 
engineering and design on family housing or military 
construction projects that are being completed with expired or 
lapsed funds.
    Language is included under Title I to allow funds to be 
expended on military construction projects for four fiscal 
years after enactment under certain circumstances.
    Language is included under Title I to allow for the 
transfer of BRAC proceeds to the BRAC account.
    Language is included under Title I to allow construction 
funds to be transferred to Housing Improvement Funds.
    Language is included under Title I to allow for the 
transfer of BRAC funds to the Homeowners Assistance Program.
    Language is included under Title I to limit funds for the 
operation and maintenance of family housing to those provided 
in this appropriation and to limit amounts expended on repairs 
of general and flag officer quarters under certain 
circumstances.
    Language is included under Title I to allow funds in the 
Ford Island Improvement Account to be available until expended 
for certain purposes.
    Language is included under Title I to limit funds for 
projects at closed or realigned installations under certain 
circumstances.
    Language is included under Title I to allow for the 
transfer of expired funding to the Foreign Currency Fluctuation 
Account under certain circumstances.
    Language is included under Title I limiting the number of 
parking spaces that may be occupied at the BRAC office complex 
in Alexandria, Virginia.
    Language is included under Title I limiting funds available 
for expansion of Pinon Canyon Maneuver Site, Colorado.
    Language is included under Title I limiting movement of an 
Army unit with a testing mission.
    Language is included under Title I that rescinds funds from 
prior year appropriations Acts.
    Language is included under Title I that rescinds 
unobligated funds from BRAC 2005 account.
    Language is included under Title I reducing the amount 
available for civilian pay raise.
    Language is included under Title I to allow for the 
transfer of funds from the Family Housing Improvement Fund to 
the Secretary of the Navy as the request of the Navy.
    Language is included under Title II to require that the 
Secretary of Veterans Affairs establish a priority for 
treatment of veterans who are service-connected disabled, lower 
income, or have special needs.
    Language is included under Title II to require that the 
Secretary of Veterans Affairs give priority funding of basic 
medical benefits to priority groups 1 through 6.
    Language is included under Title II to allow the Secretary 
of Veterans Affairs to dispense prescription drugs from VHA 
facilities to enrolled veterans with privately written 
prescriptions.
    Language is included under Title II providing for the 
reimbursement to the Department of Defense for the costs of 
overseas employee mail.
    Language is included under Title II to require approval of 
a transfer between development, modernization, and enhancement 
projects in the information technology systems account.
    Language is included under Title II establishing time 
limitations and reporting requirements concerning the 
obligation of major construction funds, limiting the use of 
funds, and allowing the use of funds for program costs.
    Language is included under Title II to allow minor 
construction funds to be used to repair non-medical facilities 
damaged by natural disaster or catastrophe.
    Language is included under Title II permitting transfers 
between mandatory and discretionary accounts, limiting and 
providing for the use of certain funds, funding administrative 
expenses associated with life insurance programs from excess 
program revenues, allowing reimbursement from enhanced-use 
leases and for certain services, requiring notification of new 
lease agreements, requiring disclosure of insurance and income 
information, allowing a recovery audit collection program, 
allowing veterans in the State of Alaska to use Indian Health 
Service facilities under certain conditions, allowing medical 
services funds for recreational and funeral expenses, limiting 
the obligation of non-recurring maintenance funds during the 
last two months of the fiscal year, requiring notification of 
changed funding needs because of enrollee health projection 
model changes, and requiring approval of a reprogramming prior 
to any major reallocation of medical services initiatives 
funding.
    Language is included under the Court of Appeals for 
Veterans Claims, Salaries and Expenses, to permit the use of 
funds for a pro bono program.
    Language is included under Cemeterial Expenses, Army, 
Salaries and Expenses, to permit the use of funds for parking 
maintenance and repairs.
    Language is included under Cemeterial Expenses, Army, 
Salaries and Expenses, to permit the use of funds to relocate a 
water main.
    Language is included under Title IV that rescinds funds 
from overseas contingency operations in prior year 
appropriations Acts.
    Language is included under Title IV to designate funds for 
overseas contingency operations.
    Language is included under Title V to limit the use of 
funds for Federal entities when they are not in compliance with 
Federal law relating to risk assessment, the protection of 
private property rights, or unfunded mandates.
    Language is included under Title V to limit the use of 
funds for publicity or propaganda designed to support or defeat 
legislation pending before Congress.
    Language is included under Title V to prohibit the use of 
funds for a project or program named for a serving Member of 
the United States Congress.
    Language is included under Title V prohibiting funds from 
being used to maintain or establish a computer network unless 
such network blocks the viewing, downloading, and exchanging of 
pornography.
    Language is included under Title V to prohibit funding 
being distributed to the Association of Community Organizations 
for Reform Now or its subsidiaries.
    Language is included under Title V prohibiting funds from 
being used to exercise the power of eminent domain without just 
compensation.
    Language is included under Title V prohibiting funds from 
being used to pay for first class travel in violation of 
federal regulations.
    Language is included under Title V prohibiting funds from 
being used to execute a contract for goods or services where a 
contractor has not complied with Executive Order 12989.
    Language is included under Title V prohibiting funds from 
being provided to any corporation that was convicted of a 
felony criminal violation.
    Language is included under Title V prohibiting funds from 
being provided to a corporation with an unpaid Federal tax 
liability.

                  Appropriations Not Authorized by Law

    Pursuant to clause 3(f)(1)(B) of rule XIII of the Rules of 
the House of Representatives, the following table lists the 
appropriations in the accompanying bill which are not 
authorized by law for the period concerned:
<GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT>

                           Transfer of Funds

    Pursuant to clause 3(f)(2) of rule XIII of the Rules of the 
House of Representatives, the following statements are 
submitted describing the transfer of funds provided in the 
accompanying bill.
    Language is included to allow Military Construction, 
Defense-Wide funds to be transferred to other military 
construction and family housing appropriations to be merged 
with and available for the same purpose and same time period.
    Language is included to allow BRAC proceeds to be 
transferred to the BRAC account to be merged with and available 
for the same purpose and same time period.
    Language is included to allow for the transfer of funds 
from Family Housing, Construction accounts to the Department of 
Defense Family Housing Improvement Fund and funds from Military 
Construction accounts to the Department of Defense Military 
Unaccompanied Housing Improvement Fund.
    Language is included to provide transfer authority from the 
BRAC account to the Homeowners Assistance Program.
    Language is included to allow the transfer of expired funds 
to the ``Foreign Currency Fluctuations, Construction, Defense'' 
account.
    Language is included to allow the transfer of Family 
Housing Improvement Funds to the Secretary of the Navy for 
execution as the request of the Navy.
    Language is included to transfer not to exceed $9,204,000 
from Compensation and Pensions to General Operating Expenses, 
Veterans Benefits Administration, Medical Support and 
Compliance, and Information Technology Systems. These funds are 
for the administrative costs of implementing cost-savings 
proposals required by the Omnibus Budget Reconciliation Act of 
1990 and the Veterans' Benefits Act of 1992. Language is also 
included transferring funds to the medical care collections 
fund to augment funding of medical facilities for nursing home 
care provided to pensioners.
    Language is included to permit the transfer of funds from 
General Administration to General Operating Expenses, Veterans 
Benefits Administration.
    Language is included to provide authority for the 
Department of Veterans Affairs for any funds appropriated in 
2013 for Compensation and Pensions, Readjustment Benefits, and 
Veterans Insurance and Indemnities to be transferred among 
those three accounts.
    Language is included to transfer funds among the Medical 
Services, Medical Support and Compliance, and Medical 
Facilities accounts.
    Language is included to permit the funds from three life 
insurance funds to be transferred to General Operating 
Expenses, Veterans Benefits Administration and Information 
Technology Systems for the costs of administering such 
programs.
    Language is included to permit up to $46,264,000 to be 
transferred to General Administration and Information 
Technology Systems from any funds appropriated in fiscal year 
2012 to reimburse the Office of Resolution Management and the 
Office of Employment and Discrimination Complaint Adjudication 
for services provided.
    Language is included to transfer certain funds derived from 
enhanced-use leasing activities to the Construction, Major 
Projects and Construction, Minor Projects accounts.
    Language is included to transfer funds from the Medical 
Care Collections Fund to the Medical Services account.
    Language is included to allow the transfer of funds from 
the Capital Asset Fund to the Construction, Major Projects and 
Construction, Minor Projects accounts.
    Language is included to allow the transfer of funds from 
various accounts to the Information Technology Systems account 
subject to approval by the Committee.
    Language is included to allow the transfer of development, 
modernization, and enhancement funds within Information 
Technology Systems between projects subject to approval by the 
Committee.
    Language is included to allow the transfer of funds 
provided for the Department of Veterans Affairs to the Joint 
Department of Defense-Department of Veterans Affairs Medical 
Facility Demonstration Fund.
    Language is included permitting funds deposited to the 
Medical Care Collections Fund for health care provided at a 
combined Federal medical facility to be transferred to the 
Joint Department of Defense-Department of Veterans Affairs 
Medical Facility Demonstration Fund.
    Language is included under the Department of Veterans 
Affairs that would transfer no less than $15,000,000 for the 
DoD/VA Health Care Sharing Incentive Fund as authorized by 
section 8111(d) of title 38, United States Code.

                              RESCISSIONS

    Pursuant to clause 3(f)(2) of rule XIII of the Rules of the 
House of Representatives, the following table lists the 
rescissions in the accompanying bill:

                          Department/Activity


                   AMOUNTS RECOMMENDED FOR RESCISSION




Department of Defense, Military Construction, Defense-       $20,000,000
 Wide.................................................
Department of Defense, BRAC 2005......................       212,291,000
Department of Defense, Overseas Contingency Operations       150,768,000
Department of Veterans Affairs, Medical services......        62,924,000
Department of Veterans Affairs, Medical support and           12,737,000
 compliance...........................................
Department of Veterans Affairs, Medical facilities....         5,593,000


                        Constitutional Authority

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

                 Comparison With the Budget Resolution

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


                                            [In millions of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                  302(b) Allocation             This bill
                                                             ---------------------------------------------------
                                                                 Budget                    Budget
                                                               authority     Outlays     authority     Outlays
----------------------------------------------------------------------------------------------------------------
Mandatory...................................................       71,576       71,331       71,576    \1\71,331
Discretionary...............................................       71,747       79,071       71,747       79,071
    General Purpose.........................................       71,747       79,069       71,747       79,069
    Overseas Contingency....................................            0            2            0           2
----------------------------------------------------------------------------------------------------------------
\1\Includes outlays from prior-year budget authority.


                    Five-Year Projection of Outlays

    Pursuant to clause 3(c)(2) of rule XIII of the Rules of the 
House of Representatives and section 308(a)(1)(B) of the 
Congressional Budget Act of 1974, the following table contains 
five-year projections prepared by the Congressional Budget 
Office of outlays associated with the budget authority provided 
in the accompanying bill:
          
Outlays:

2013....................................................       \2\79,281
2014....................................................           6,001
2015....................................................           4,582
2016....................................................           1,746
2017 and future years...................................           1,354

\2\Excludes outlays from prior-year budget authority.
---------------------------------------------------------------------------

               Assistance to State and Local Governments

    Pursuant to clause 3(c)(2) of rule XIII of the Rules of the 
House of Representatives and section 308(a)(1)(C) of the 
Congressional Budget Act of 1974, the amount of financial 
assistance to State and local governments is as follows:
                                                                Millions
Budget Authority........................................            $142
Fiscal Year 2013 outlays resulting therefrom............               2

         Statement of General Performance Goals and Objectives

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

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

    In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, the Committee notes that the 
accompanying bill does not propose to repeal or amend a statute 
or part thereof.

                          Full Committee Votes

    Pursuant to the provisions of clause 3(b) of rule XIII of 
the House of Representatives, the results of each roll call 
vote on an amendment or on the motion to report, together with 
the names of those voting for and those voting against, are 
printed below:
    There were no roll call votes.

   Disclosure of Earmarks and Congressionally Directed Spending Items

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

                               State List

    The following is a complete listing, by title, State and 
country, of the Committee's recommendations for military 
construction and family housing projects:
<GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT>


                             MINORITY VIEWS

    The fiscal year 2013 Military Construction, Veterans' 
Administration and Related Agencies appropriations bill 
sufficiently funds critical military construction, family 
housing and quality of life improvements and enhancements for 
our brave men and women in uniform and their families. In 
addition, this bill provides adequate funding for VA programs, 
and it provides a satisfactory amount of funding for our heroes 
who have made the ultimate sacrifice and are honored in the 
battle monuments and cemeteries that are funded in this bill.
    While the allocation for the fiscal year 2013 Military 
Construction, Veterans' Administration and Related Agencies 
appropriations bill is adequate, we are very disappointed that 
House Republicans walked away from the hard fought bipartisan 
agreement reached to establish a discretionary spending cap of 
$1.047 trillion for fiscal year 2013 and instead opted to 
create a new number, $19 billion below what we agreed to. This 
puts House Republicans at odds with the President, Democrats 
and Republicans in the Senate, and House Democrats who have all 
maintained that we must stick to the Budget Control Act 
allocation which is defined in statute. The lower allocation, 
if it stays in effect, will vastly slow down economic growth, 
impede job creation, and cause more uncertainty.
    We believe that the position of House Republicans is 
unsustainable and that by the end of the process we will be 
back to the agreed upon allocation of $1.047 trillion with 
their breach of trust having only served to slow the process 
down.
    During Full Committee consideration, the Committee adopted 
by voice vote an amendment to prohibit the use of Project Labor 
Agreements (PLA). The amendment nullifies the decision-making 
ability of the Department of Defense, Department of Veterans 
Affairs, American Battle Monuments Commission, Court of Appeals 
for Veterans Claims, and Arlington National Cemetery, to use a 
PLA business model. All of these agencies currently have two 
choices: either ``yes'' we want to use a PLA or ``no'' we don't 
want to use PLA. The new language does not allow them to make a 
``yes'' or ``no'' choice. PLAs ensure that construction 
projects are built correctly the first time, on time, and as a 
result, on budget for the end user. In addition, PLAs prevent 
costly delays that usually result from an unskilled workforce's 
lack of knowledge regarding the use of building materials or 
tools as well as job site safety measures. By including the ban 
on PLAs, the bill will delay new construction and add to the 
end cost.
    In conclusion, we commend the Chairman for his efforts in 
setting the funding levels in the bill and being receptive to 
Democratic Members' concerns; however, we are extremely 
disappointed that Republicans chose to include an ideological, 
divisive policy rider in a bill that is known for strong 
bipartisan support.

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