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    104th Congress                                                   Report
                            HOUSE OF REPRESENTATIVES

     2d Session                                                     104-591
    _______________________________________________________________________

                MILITARY CONSTRUCTION APPROPRIATIONS BILL, 1997

                                    _______

      May 23, 1996.--Committed to the Committee of the Whole House on the
                  State of the Union and ordered to be printed

    _______________________________________________________________________

     Mrs. Vucanovich, from the Committee on Appropriations, submitted the
                                   following

                                  R E P O R T

                            [To accompany H.R. 3517]

        The Committee on Appropriations submits the following
    report in explanation of the accompanying bill making
    appropriations for military construction, family housing, and
    base realignments and closures for the Department of Defense
    for the fiscal year ending September 30, 1997.

                                    CONTENTS

                                                                       Page
    Summary of Committee Recommendation..............................     2
    Conformance with Authorization Bill..............................     3
    Permanent Party Unaccompanied Personnel Housing..................     3
    Child Development Centers........................................     6
    Hospital and Medical Facilities..................................     7
    Environmental Compliance Projects................................     8
    Demolition of Excess Facilities..................................     8
    Crumbling Infrastructure.........................................     9
    European Construction............................................    10
    Real Property Maintenance........................................    10
    Program, Project and Activity....................................    10
    Military Construction:
        Army.........................................................    11
        Navy.........................................................    12
        Air Force....................................................    13
        Defense-wide.................................................    14
        Department of Defense Military Unaccompanied
          Housing Improvement Fund...................................    20
        Reserve Components...........................................    21
    NATO Security Investment Program.................................    24
    Family Housing Overview..........................................    24
    Family Housing:
        Army.........................................................    29
        Navy.........................................................    30
        Air Force....................................................    31
        Defense-wide.................................................    33
    Department of Defense Family Housing Improvement Fund............    33
    Homeowners Assistance Fund, Defense..............................    34
    Base Realignment and Closure:
        Overview.....................................................    34
        Part I.......................................................    43
        Part II......................................................    43
        Part III.....................................................    44
        Part IV......................................................    44
    General Provisions...............................................    44
    Changes in Application of Existing Law...........................    45
    Compliance with Rule XIII--Clause 3..............................    47
    Appropriations Not Authorized by Law.............................    47
    Transfer of Funds................................................    48
    Rescission of Funds..............................................    48
    Inflationary Impact Statement....................................    48
    Comparisons with Budget Resolution...............................    48
    Advance Spending Authority.......................................    48
    Five-Year Projection of Outlays..................................    48
    Financial Assistance.............................................    49
    State List.......................................................    49

                      Summary of Committee Recommendation

        The Administration's fiscal year 1997 budget request of
    $9,132,309,000 represents a decrease of $2,044,700,000, or 18
    percent, from the fiscal year 1996 appropriation of
    $11,177,009,000. While there are aspects of the budget request
    that help to solve the long-term infrastructure problems faced
    by the Department of Defense, the Committee has some concerns
    about the budget request overall. For example, the
    Administration has committed itself to a serious barracks
    revitalization program. Yet, the request for barracks
    construction is $64,492,000 below last year's appropriation.
    And, family housing construction and operation and maintenance
    accounts are reduced by $405,339,000. The budget request would
    provide $714,246,000 for family housing construction, a
    reduction of $228,878,000 from current levels. Of this amount,
    $369,587,000 is requested for construction of new family
    housing units, a reduction of $97,337,000, or 21 percent, from
    current spending. And, the request for improvements to existing
    family housing units is reduced by $131,177,000, or 30 percent
    from the current program. In addition, the budget request would
    reduce maintenance of family housing units a total of
    $112,331,000.
        The lack of funding commitment by the Administration's
    proposal is especially of concern due to the findings of the
    Quality of Life Task Force, chaired by former Secretary of the
    Army Jack Marsh. In its report, the task force noted that 62
    percent of troop housing spaces and 64 percent of family
    housing units are currently unsuitable. The Department of
    Defense estimates the cost of correcting these deficiencies to
    be approximately $40,000,000,000.
        The Committee believes it is imperative to address the
    severe backlog in readiness, revitalization and quality of life
    projects. The Committee has recommended an additional
    $900,000,000 above the Administration's fiscal year 1997 budget
    request to fund the planning and construction of several
    barracks, family housing and operational facilities. Included
    in this additional funding is:

      --$214,116,000 for 21 additional unaccompanied housing
            projects;
      --$303,152,000 for new construction and improvements to
            family housing units, benefitting approximately 3,700
            military families;
      --$100,000,000 to bring family housing maintenance of real
            property in line with current spending;
      --$28,260,000 for nine child development centers;
      --$25,000,000 to support the privatization of family housing
            and unaccompanied personnel housing;
      --$155,990,000 for operational and training facilities for
            the active components; and,
      --$84,066,000 for operational, training, environmental
            compliance and safety related activities for the
            reserve components.

        The total recommended appropriation for fiscal year 1997 is
    $10,032,309,000, a reduction of $1,144,700,000, or ten percent,
    from fiscal year 1996 funding and an increase of $900,000,000
    above the fiscal year 1997 budget request.

                      Conformance with Authorization Bill

        The House passed H.R. 3230, the National Defense
    Authorization Act for fiscal year 1997, on May 15, 1996, which
    contains the authorization for the military construction,
    family housing and base realignment and closure accounts
    included in this bill. Because action on the authorization had
    not been completed at the time this bill was prepared, the
    Committee is considering only projects recommended for
    authorization in H.R. 3230. All projects included in this bill
    are approved subject to authorization.

                Permanent Party Unaccompanied Personnel Housing

        The Department of Defense estimates that 44 percent of the
    enlisted force and 27 percent of the officers are single or
    unaccompanied personnel. Although 18 percent live in private
    off-base housing, the Department has over 612,000 men and women
    living in permanent party unaccompanied personnel housing.
    Approximately one-half of the barracks were built 30 or more
    years ago, with an average age of over 40 years. And, 116,000
    spaces are still serviced by gang latrines. Of the total
    inventory over 62% are considered substandard and continuous
    maintenance is necessary to deal with such problems as
    asbestos, corroded pipes, inadequate ventilation, faulty
    heating and cooling systems, and peeling lead-based paint.
        The following chart, compiled by the Department of Defense,
    provides a breakout by Service of the deficit of new
    construction, replacement and renovation:

    ----------------------------------------------------------------------------------------------------------------
                                                                        New
                                                                   construction  Replacement   Renovation    Total
                                                                      deficit      deficit      deficit
    ----------------------------------------------------------------------------------------------------------------
    Army.........................................................           800       50,000       78,000    128,800
    Navy.........................................................        30,000        7,000       35,600     72,600
    Air Force....................................................        29,000        3,000          700     32,700
    Marine Corps.................................................        11,005       14,270       33,016     58,291
                                                                  --------------------------------------------------
          Total..................................................        70,805       74,270      147,316    292,391
    ----------------------------------------------------------------------------------------------------------------

        The Department estimates with approximately 238,000
    unaccompanied permanent party personnel housed in barracks with
    open bay, gang latrine, or three-per-room configurations, and
    with the cost to construct a ``1 plus 1'' living space under
    the new standard estimated at $52,000, approximately
    $12,400,000,000 is necessary to buy out this deficit. It will
    take over twenty years to implement the ``1 plus 1'' standard
    and achieve desired end states.
        The Committee understands that improving troop housing does
    not lie solely in new construction and renovations. Retiring
    the backlog of maintenance and repair, which is under the
    jurisdiction of the National Security Subcommittee, and an
    adequate funding commitment to prevent future backlogs plays an
    important role in this process. It is necessary to use many
    different approaches to help meet the unaccompanied housing
    need. The challenge is for a sustained overall commitment, at
    funding levels that will reduce the backlog of substandard
    spaces, reduce the housing deficits, and increase the quality
    of living conditions in a reasonable period of time.
        In addition to construction funding, the Committee has also
    recommended $10,000,000 for start-up costs to the Military
    Unaccompanied Housing Improvement Fund which is discussed in
    detail later in this report. It is the Committee's intention
    that the Department aggressively apply these new authorities to
    obtain and use private capital to improve bachelor living
    conditions in a more reasonable time frame.

              defense science board task force on quality of life

        The Defense Science Board Task Force on Quality of Life,
    chaired by the Honorable John O. Marsh, Jr. cited five major
    issues affecting the standard of living for single and
    unaccompanied service members. These issues include broad
    policies for bachelor housing; policy governing required and
    allowed residents in barracks; suitability criteria for
    bachelor housing; funding for bachelor housing; and management
    and operation of barracks. The Committee agrees that these
    issues are inter-related and must be addressed as a package.
    Many options presented by the Task Force can be accomplished
    within the Department and do not require legislative action.
    The Department is to submit to the Committee a thorough
    implementation plan for these recommendations by January 15,
    1997.

                         ``1 plus 1'' barracks standard

        In November 1995, the Secretary of Defense approved the new
    barracks construction standard, referred to as ``1 plus 1''.
    This standard would provide a module consisting of two 118 net
    square feet (NSF) rooms, a bath and a kitchenette. Two E1's
    through E4's would be assigned to the module (each having a
    private 118 NSF room) and share a bath and a kitchenette. One
    E5 through E9 would be assigned to a module which would provide
    a private bath, kitchenette and a living room. The estimated
    cost for this standard is $52,000 per space.
        The Committee notes that while the Services strongly
    endorse the ``1 plus 1'' concept, concrete funding goals need
    to be established and maintained to meet the standard in a
    timely manner. The Navy and Air Force have adequately
    programmed for fiscal year 1997, yet the Army has only
    programmed 85% of its requirement. While there are many
    competing factors, such as failing infrastructure, there is a
    necessity to reduce the troop housing deficits and the
    Committee expects the Services to program properly to eliminate
    this deficit, even if it means granting a waiver to the ``1
    plus 1'' concept.
        The Committee strongly believes that the development of
    barracks standard implementation master plans, installation-by-
    installation, is necessary. The Air Force has already embarked
    on such an effort and, therefore, the Committee directs the
    Army, Navy and Marine Corps to initiate such master plans. The
    Deputy Assistant Secretary of Defense for Installations is to
    monitor this action and report to the Committee by December 16,
    1996 of the individual Service's progress.
        In addition, the Committee encourages the individual
    Services to seek to establish site adaptable design for the new
    barrack standard whenever possible. This should result in
    significant savings in planning and design for barracks
    projects. The Department is to report to the Committee by
    February 1, 1997 on its efforts to standardize design.

                       fiscal year 1997 barracks request

        The Department of Defense has requested $561,638,000 to
    construct or modernize 41 barracks in fiscal year 1997. This is
    a reduction of $64,492,000 from the enacted fiscal year 1996
    appropriation. The Committee strongly supports a steady flow of
    funding to rectify the housing situation and directs the
    Department to maintain current funding levels in its fiscal
    year 1998 budget request.
        The Committee has approved the request of $561,638,000 in
    full. In order to maintain current funding levels and to help
    alleviate the deficit, an additional $214,116,000 is
    recommended. The locations were determined by service
    priorities and all projects are capable of construction during
    fiscal year 1997. The total appropriation for unaccompanied
    housing recommended in this bill is $775,754,000.
        The following troop housing construction projects are
    recommended for fiscal year 1997:

    ------------------------------------------------------------------------
                 Location                    Request          Recommended
    ------------------------------------------------------------------------
    Army:
        Fort Huachuca, Arizona........                  0        $21,000,000
        Fort Carson, Colorado.........        $13,000,000         13,000,000
        Fort Benning, Georgia.........         44,000,000         44,000,000
        Fort McPherson, Georgia.......                  0          9,100,000
        Fort Riley, Kansas............         26,000,000         26,000,000
        Fort Campbell, Kentucky.......         35,000,000         35,000,000
        Fort Knox, Kentucky...........                  0         20,500,000
        Fort Hood, Texas..............         35,000,000         35,000,000
        Fort Lewis, Washington........         49,000,000         49,000,000
        Taylor Barracks, Mannheim,
         Germany......................                  0          9,300,000
        Spinelli Barracks, Mannheim,
         Germany......................                  0          8,100,000
        Camp Casey, Korea.............         16,000,000         16,000,000
        Camp Red Cloud, Korea.........         14,000,000         14,000,000
                                       -------------------------------------
          Subtotal, Army..............        232,000,000        300,000,000
                                       =====================================
    Navy/Naval Reserve:
        Yuma MCAS, Arizona............                  0         14,600,000
        Camp Pendleton, California....         10,100,000         10,100,000
        Camp Pendleton, California....         11,800,000         11,800,000
        Camp Pendleton, California....         12,500,000         12,500,000
        Port Hueneme, California......                  0          7,700,000
        San Clemente, California......         17,000,000         17,000,000
        New London, Connecticut.......         10,600,000         10,600,000
        Washington Naval District,
         District of Columbia.........         19,300,000         19,300,000
        Kaneohe Bay MCAS, Hawaii......                  0         20,080,000
        Pearl Harbor, Hawaii..........         19,600,000         19,600,000
        Pearl Harbor, Hawaii..........         30,500,000         30,500,000
        Pearl Harbor, Hawaii..........          5,390,000          5,390,000
        Great Lakes, Illinois.........         22,900,000         22,900,000
        Great Lakes NH, Illinois......                  0         15,200,000
        Crane NSWC, Indiana...........                  0          5,000,000
        New Orleans NSA, Louisiana....                  0          8,956,000
        Fallon NAS, Nevada............                  0         14,800,000
        Camp Lejeune, North Carolina..          5,190,000          5,190,000
        Ingleside, Texas..............          9,600,000          9,600,000
        Dahlgren NSWC, Virginia.......                  0          8,030,000
        Dam Neck FCTC, Virginia.......                  0          7,000,000
        Everett, Washington...........         10,940,000         10,940,000
        Souda Bay (Crete), Greece.....          7,050,000          7,050,000
        Souda Bay (Crete), Greece.....                  0          4,000,000
        Sigonella, Italy..............         15,700,000         15,700,000
                                       -------------------------------------
          Subtotal, Navy..............        208,170,000        313,536,000
                                       =====================================
    Air Force:
        Luke AFB, Arizona.............                  0          6,700,000
        Travis AFB, California........          7,980,000          7,980,000
        Travis AFB, California........                  0          8,250,000
        Peterson AFB, Colorado........          8,350,000          8,350,000
        Eglin AFB Aux 9, Florida......          6,825,000          6,825,000
        Robins AFB, Georgia...........                  0          4,000,000
        Mountain Home AFB, Idaho......                  0          9,300,000
        McConnell AFB, Kansas.........          8,480,000          8,480,000
        McConnell AFB, Kansas.........                  0          7,100,000
        Andrews AFB, Maryland.........          5,990,000          5,990,000
        Keesler AFB, Mississippi......         14,465,000         14,465,000
        McGuire AFB, New Jersey.......          8,080,000          8,080,000
        Seymour Johnson AFB, North
         Carolina.....................          1,925,000          1,925,000
        Charleston AFB, South Carolina          8,180,000          8,180,000
        Brooks AFB, Texas.............                  0          5,400,000
        Dyess AFB, Texas..............          5,895,000          5,895,000
        Lackland AFB, Texas...........          4,613,000          4,613,000
        McChord AFB, Washington.......          5,390,000          5,390,000
        Ramstein AB, Germany..........          5,370,000          5,370,000
        Osan AB, Korea................          9,780,000          9,780,000
        Incirlik AB, Turkey...........          1,740,000          1,740,000
        RAF Lakenheath, UK............          7,950,000          7,950,000
        RAF Lakenheath, UK............          4,260,000          4,260,000
        RAF Mildenhall, UK............          6,195,000          6,195,000
                                       -------------------------------------
          Subtotal, Air Force.........        121,468,000        162,218,000
                                       =====================================
          Total.......................        561,638,000        775,754,000
    ------------------------------------------------------------------------

                           Child Development Centers

        The Committee has recommended an additional $28,260,000
    above the budget estimate of $6,165,000 for a total
    appropriation of $34,425,000 for new construction, or
    improvements, for child development centers. The Committee
    recognizes the increased importance of these centers due to the
    rising number of single military parents, dual military couples
    and military personnel with a civilian employed spouse.
        The following child development center projects are
    provided for fiscal year 1997:

    ------------------------------------------------------------------------
                 Location                    Request          Recommended
    ------------------------------------------------------------------------
    Army:
        Fort Carson, Colorado.........                  0         $4,550,000
        Fort Eustis, Virginia.........                  0          3,550,000
        Darmstadt (Lincoln Village),
         Germany......................                  0          7,300,000
                                       -------------------------------------
          Subtotal....................                  0         15,400,000
                                       =====================================
    Navy/Naval Reserve:
        Twentynine Palms MarCorp Air-
         Grnd Comb Ctr, California....         $4,020,000          4,020,000
        Albany MCLB, Georgia..........                  0          1,630,000
        Kings Bay NSB, Georgia........                  0          1,550,000
        New Orleans NSA, Louisiana....                  0          1,330,000
        Fallon NAS, Nevada............                  0          1,400,000
        New River MCAS, North Carolina                  0          3,250,000
                                       -------------------------------------
          Subtotal....................          4,020,000         13,180,000
                                       =====================================
    --Air Force:
        F.E. Warren AFB, Wyoming......                  0          3,700,000
        Robins AFB, Georgia...........          2,145,000          2,145,000
                                       -------------------------------------
          Subtotal....................          2,145,000          5,845,000
                                       =====================================
          Total.......................          6,165,000         34,425,000
    ------------------------------------------------------------------------

                        Hospital and Medical Facilities

        The budget request includes $332,642,000 for 14 projects
    and for unspecified minor construction to provide hospital and
    medical facilities, including both treatment facilities and
    medical research and development facilities. The Committee
    recommends a total of $312,642,000 for the requested items. The
    reduction of $20,000,000 from the budget request is the result
    of limiting funds for the Walter Reed Army Institute of
    Research to the amount of construction that can be executed
    during fiscal year 1997. The following hospital and medical
    projects are provided for fiscal year 1997:

    ------------------------------------------------------------------------
                Location                  Project title         Recommended
    ------------------------------------------------------------------------
    Alabama-Maxwell AFB............  Ambulatory Health Care      $25,000,000
                                      Center, Phase II.
    California-Camp Pendleton MCB..  Branch Medical Clinic         3,300,000
                                      (Edson Range)-.
    California-NAS Lemoore.........  Hospital Replacement----     38,000,000
                                      .
    Florida-Key West NAS...........  Medical/Dental Clinic        13,600,000
                                      Replacement--.
    Maryland-Andrews AFB...........  Life Safety/Emergency        15,500,000
                                      Room Upgrade--.
    Maryland-Forest Glen (Walter
     Reed Army Institute of
      Research)....................  Army Institute of            72,000,000
                                      Research, Phase IV.
    North Carolina-Fort Bragg......  Cons Troop Med Clinic        11,400,000
                                      (Smoke Bomb Hill)----.
                                     Hospital Replacement,        89,000,000
                                      Phase IV-----.
    South Carolina-Charleston AFB..  WRM/BEE Facility---....       1,300,000
    Texas-Fort Bliss...............  Life Safety Upgrade-----      6,600,000
                                      .
    Texas-Fort Hood................  Social Work Services          1,950,000
                                      Clinic----.
    Virginia-Norfolk NAS...........  Environmental                 1,250,000
                                      Preventive Med Unit
                                      Addition-.
    Virginia-Portsmouth Naval        Hospital Replacement,        24,000,000
     Hospital.                        Phase VIII-.
    Bahrain Island-ASU Bahrain.....  Medical/Dental Clinic---      4,600,000
                                      -.
    Worldwide-Various Locations....  Unspecified Minor             5,142,000
                                      Construction--.
                                                             ---------------
          Total....................  .......................     312,642,000
    ------------------------------------------------------------------------

                       Environmental Compliance Projects

        The total budget request and appropriation for 31 projects
    needed to meet environmental compliance is $88,298,000. The
    Federal Facilities Compliance Act requires all federal
    facilities to meet both federal and State standards. These
    projects are considered Class I violations and are out of
    compliance; have received an enforcement action from the
    Environmental Protection Agency, the State, or local authority;
    and/or a compliance agreement has been signed or consent order
    received. Environmental projects that are Class I violations
    are required to be funded, and therefore are placed at the top
    of the priority list.
        Following is a listing of all environmental compliance
    projects funded in this bill:

    ------------------------------------------------------------------------
              Installation                Project title         Recommended
    ------------------------------------------------------------------------
    Army:
        Fort Lewis, WA.............  Tank Trail Erosion           $2,000,000
                                      Mitigation.
    Navy:
        NSB New London, CT.........  Hazardous Materials           3,230,000
                                      Warehouse.
        MCB Camp Lejeune, NC.......  Wastewater Treatment          3,230,000
                                      Plant (Phase III).
        NS Norfolk, VA.............  Oily Waste Collection        10,200,000
                                      System.
        NAWC Patuxent River, MD....  Wastewater Treatment          1,270,000
                                      Plant Upgrade.
        NS San Diego, CA...........  Oily Waste Collection         7,050,000
                                      Facility.
        MCCOMBDEV Quantico,VA......  Sanitary Landfill......       8,930,000
    Air Force:
        Arnold AFB, TN.............  Upgrade Engine Test           3,790,000
                                      Facility Refrig System.
        Barksdale AFB, LA..........  Upgrade Sanitary Sewer        2,390,000
                                      System.
        Beale AFB, CA..............  Landfill Closure.......       6,735,000
        Edwards AFB, CA............  Convert Boilers........       3,120,000
        Elmendorf AFB, AK..........  Upgrade Storm Drainage        2,095,000
                                      System.
        Langley AFB, VA............  Upgrade Sanitary Sewer        2,845,000
                                      System.
        Little Rock AFB, AR........  Upgrade Sanitary Sewer        2,535,000
                                      System.
        Minot AFB, ND..............  Underground Fuel              3,940,000
                                      Storage Tanks, Missile
                                      Facility.
        Pope AFB, NC...............  Upgrade Sanitary Sewer        2,065,000
                                      System.
        Shaw AFB, SC...............  Upgrade Sanitary Sewer        2,365,000
                                      System.
    Army National Guard:
        Camp Atterbury, IN.........  Central Vehicle Wash          4,747,000
                                      Facility.
    Air National Guard:
        Jacksonville IAP, FL.......  Upgrade Heating Plants          680,000
                                      and Chillers.
        Fort Wayne IAP, IN.........  Upgrade Drainage System         480,000
        Barnes Municipal Apt, MA...  Upgrade Heating                 500,000
                                      Distribution System.
        Selfridge ANGB, MI.........  Upgrade Heating Systems       3,000,000
        Francis S. Gabreski Apt, NY- Aircraft Washing and            659,000
         .                            Deicing Facility---.
        Fort Worth JRB, TX.........  Fuel Cell and Corrosion       3,450,000
                                      Control Facility---.
        Volk Field ANGB, WI........  Upgrade Sanitary Sewer          850,000
                                      System.
        Puerto Rico IAP, PR........  Refueling Vehicle Shop          450,000
                                      and Paint Bay- --.
    Air Force Reserve:
        Homestead ARB, FL..........  Fire Training Facility.       1,300,000
        Niagara Falls ARS, NY......  Fire Training Facility.       1,600,000
                                     Deicing Facility.......         342,000
        Youngstown ARS, OH.........  Fire Training Facility.       1,500,000
        Billy Mitchell Field, WI...  Improve Storm Drainage          950,000
                                      System.
                                                             ---------------
          Total....................  .......................      88,298,000
    ------------------------------------------------------------------------

                        Demolition of Excess Facilities

        The Committee has recommended a total of $30,000,000 for
    the purpose of demolishing excess facilities. The authority for
    such demolition is contained in H.R. 3230, as passed the House
    on May 15, 1996. Such funds may only be used when the Service
    Secretary has determined that the facility is excess to the
    needs of the military department or agency concerned and not
    suitable for reuse.
        Any demolition project exceeding $500,000 may not be
    carried out under this appropriation unless approved in advance
    by the Service Secretary and a 21-day notification is submitted
    to the Appropriations Committees.
        The Committee notes that demolition projects involving
    military family housing, those as a result of a base closure
    and realignment action and as a result of environmental
    contamination may not be executed with funds appropriated under
    this category. In addition, this appropriation is in no way
    meant to preclude the inclusion of demolition of facilities as
    an integral part of a specific military construction project
    when the demolition is required for accomplishment of the
    intent of that construction project.
        These funds are to be used solely for demolition purposes
    and it is the Committee's intention they will not be used as a
    source for reprogrammings. However, savings from specific
    projects may be reprogrammed for this purpose, not to exceed
    125% of the original appropriation as contained in the enabling
    legislation.
        The individual Service Secretaries are to report to the
    Committee on Appropriations the overall strategy for use of
    these funds within thirty days of enactment of this Act.
        The Committee recommends a total of $30,000,000 for
    demolition distributed as follows:

            Component                                         Recommendation
    Army....................................................     $10,000,000
    Navy....................................................      10,000,000
    Air Force...............................................      10,000,000
                        --------------------------------------------------------
                        ____________________________________________________
        Total...............................................      30,000,000

                            Crumbling Infrastructure

        At their core, military installations are very similar to
    cities. They rely upon transportation networks such as
    railroads, vehicular roads, air operations, and seaport
    facilities. They cannot function without communications
    systems--telephone lines (both open and secure), satellite
    uplinks and downlinks. They require more mundane but essential
    day-to-day support--water and sewer systems, electrical
    generation and distribution systems, and climate control.
        The Committee is concerned over indications that military
    construction projects to provide such infrastructure support do
    not receive sufficient priority. It appears that there is great
    interest in improving the physical plant of the Department of
    Defense, with too little attention paid to the supporting
    infrastructure.
        Reports are beginning to surface regarding aging
    installations with crumbling supporting facilities. This
    deteriorating base infrastructure has serious implications for
    the ability of the military to meet mission requirements.
        The Department has recognized this need in the case of the
    Pentagon building itself, and has embarked on a multi-year
    effort to renovate the facility and its infrastructure. The
    Committee supports this initiative, but notes that most
    military installations pre-date the Pentagon building, and
    suffer similar deficiencies or worse.
        The Committee encourages the Department and the Services to
    assess the need for installation-wide infrastructure projects
    and to program and budget for this work.

                             European Construction

        The Committee has recommended the requested $127,071,000
    and an additional $48,800,000, for a total of $175,871,000 for
    construction in Europe. This includes 25 quality of life and 10
    operational projects.
        Since fiscal year 1990, U.S. troops stationed in Europe
    have drawn-down from 314,200 personnel to 109,000 and the
    number of installations has been significantly reduced from
    1,387 to 582. The reshaping of U.S. force structure and
    installations is complete. While overall infrastructure have
    been reduced, the European Command is faced with increased
    demands on quality of life facilities and the need for
    changing, modernizing, or increasing operational facility
    requirements. Obsolete WWII-era utilities do not match modern
    loads and require frequent and costly repair and maintenance.
    Outdated electrical, heating, sanitary and water distribution
    systems are endemic throughout the European Command. And,
    safety and environmental concerns exist at older facilities
    that are in need of revitalization and modernization.
        Deplorable family housing conditions exist and require
    immediate attention. The majority of these units have never
    been renovated since they were built in the 1950s. Of the
    35,885 family housing units in the inventory, 29,764 or 83% of
    the total inventory is in need of renovation at an estimated
    cost of over $3,000,000,000. The Command's unaccompanied
    personnel housing inventory is 37,624 spaces with 15,540, or
    41%, classified as substandard and still serviced by gang
    latrines, and 21,390, or 58%, in need of renovation.
        Now that a stable European force structure is in place, and
    facing frequent deployments, it is imperative to reinvest in
    quality of life and operational facilities, both essential
    components of readiness, in Europe. While the Committee
    realizes the benefits of the Payment-in-Kind and residual value
    programs, it strongly believes these must be supplemented with
    traditional military construction and family housing funds.
    Funding for improvements in Europe must be made in order not to
    deprive our service members and their families of decent living
    and working conditions.

                           Real Property Maintenance

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

                         Program, Project and Activity

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

                          Military Construction, Army

    Fiscal year 1996:-
        Appropriation.......................................   $633,814,000-
        Rescission..........................................    -6,385,000--
            Net.............................................     627,429,000
    Fiscal year 1997 estimate...............................     434,723,000
    Committee recommendation in the bill....................     603,584,000
    Comparison with:-
        Fiscal year 1996 net appropriation..................    -23,845,000-
        Fiscal year 1997 estimate...........................    +168,861,000

        The Committee recommends a total of $603,584,000 for
    Military Construction, Army for fiscal year 1997. This is an
    increase of $168,861,000 above the budget request for fiscal
    year 1997, and a decrease of $23,845,000 below the net
    appropriation for 1996.

                     California--Barstow-Daggett: Heliport

        The Committee recommends $7,000,000 to complete funding of
    a heliport for the National Training Center at Fort Irwin,
    California, to be located at Barstow-Daggett, California.
    Additional funds for this project are available from prior year
    unobligated appropriations. The Committee notes that section
    2105 of the Defense Authorization Act of 1997 (H.R. 3230, as
    passed the House on May 15, 1996) corrects the authorized uses
    of funds appropriated for fiscal years 1995 and 1996 for
    construction of an air field at Barstow-Daggett, in order to
    permit the use of such amounts for the construction of a
    heliport facility at the same location for maintenance and
    repair of equipment assigned to the National Training Center
    and Fort Irwin. The Committee concurs with this correction, and
    directs that fiscal year 1994 planning and design funds in the
    amount of $2,400,000, as well as fiscal year 1995 funds in the
    amount of $10,000,000 and fiscal year 1996 funds in the amount
    of $10,000,000 shall be available for construction of this
    heliport in lieu of the air field. No reprogramming request is
    required to accomplish the execution of this project.

                      Military Traffic Management Command

                                  Relocations

        The 1995 Base Closure and Realignment Commission (BRAC IV)
    recommended closing the Bayonne, New Jersey Military Ocean
    Terminal and relocating the Military Traffic Management Command
    Eastern Area Command Headquarters and the traffic management
    portion of the 1301st Major Port Command ``to a location to be
    determined''. The Commission's report also recommended closing
    the Oakland, California Army Base and relocating the Military
    Traffic Management Command Western Area Command Headquarters
    and the 1302nd Major Port Command ``to locations to be
    determined''. No notification has been submitted to Congress
    regarding the plans for these relocations. Therefore the Army
    is directed to report to the Committee on the current status of
    these relocations, options considered for receiving locations,
    the approximate number of civilian and military personnel to be
    transferred, the military construction requirement (if any),
    and the timetable for relocation and closure. This report is to
    be submitted not later than January 1, 1997.

                             european construction

        The Secretary of the Army is directed to report to the
    Committee on Appropriations by January 1, 1997 on the overall
    condition of Army facilities and family housing in Europe. This
    report is to contain a thorough review of the needs, along with
    what construction is necessary to rectify the deplorable
    existing conditions. The Committee has recommended $44,800,000
    for two barracks projects, three family housing improvement
    projects and one child development center. It is imperative
    that the Army begin to program and budget for the necessary
    projects in fiscal year 1998 to begin to address this
    deficiency.

                                Southern Command

        The Panama Canal Treaty of 1977 requires the withdrawal of
    United States military forces from Panama by December 31, 1999,
    including the relocation of the Southern Command (SOUTHCOM).
    The Army plans to relocate SOUTHCOM headquarters to the Miami,
    Florida area with personnel movements occurring from March to
    October 1997, and the main body of the headquarters personnel
    moving in September of 1997. This entire SOUTHCOM headquarters
    relocation will be accomplished by lease, with no military
    construction appropriations requirement.
        The Committee directs the Army to report by January 1,
    1997, on the book value of all facilities returned to the
    Government of Panama through September 30, 1996.
        In addition, the Committee directs the Army to report on
    the status of negotiations toward a base rights agreement and a
    Status of Forces Agreement that will take effect on January 1,
    2000. This report is to be submitted by January 1, 1997, and
    semi-annually thereafter.

                                     Korea

        The Army's ``Headquarters, Real Property Planning and
    Analysis'' system shows a total facilities deficit of
    $5,600,000,000 in Korea, of which $721,700,000 is for barracks.
    The Committee directs the Army to report on this finding in
    some detail, together with the plan for correcting this
    deficiency through a combination of military construction
    funding, host nation funding via the Combined Defense
    Improvement Program (CDIP) and the Republic of Korea Funded
    Construction (ROKFC) program, and other approaches. This report
    is to be submitted by January 1, 1997.

                          Military Construction, Navy

                            (including rescissions)

    Fiscal year 1996:
        Appropriation.......................................    $554,636,000
        Rescission..........................................      -6,385,000
            Net.............................................     548,251,000
    Fiscal year 1997 estimate...............................     525,346,000
    Committee recommendation in the bill:
        Appropriation.......................................     724,476,000
        Rescissions.........................................     -12,000,000
            Net.............................................     712,476,000
    Comparison with:
        Fiscal year 1996 net appropriation..................    +164,225,000
        Fiscal year 1997 estimate...........................    +187,130,000

        The Committee recommends a net total of $712,476,000 for
    Military Construction, Navy for fiscal year 1997. This is an
    increase of $187,130,000 above the budget request for fiscal
    year 1997, and an increase of $164,225,000 above the net
    appropriation for fiscal year 1996.

                                  rescissions

        The budget request included a general reduction to the
    fiscal year 1997 Navy Military Construction account of
    $12,000,000. The Committee has denied this general reduction
    and has recommended rescissions totaling $12,000,000 resulting
    from contract savings or previously approved projects which are
    no longer required. The following projects are the sources for
    the rescissions:

    Fiscal Year 1992:
        Iceland-NAS Keflavik: Fuel Facilities (Phase VII)...      $6,900,000
    Fiscal Year 1993:
        Virginia-Naval Supply Center, Norfolk: Cold Storage
          Warehouse.........................................       2,800,000
    Fiscal Year 1994:
        Pennsylvania-Naval Shipyard Philadelphia: Asbestos
          Removal Facility..................................       2,300,000

                          Pollution Abatement Projects

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

        New Jersey--NWS Earle: Explosive Truck Holding Yard and Pier 4
                                   Extension

        The Committee approves the reprogramming request dated
    March 28, 1996 in the amount of $2,300,000 for the Explosive
    Truck Holding Yard at Earle NWS, New Jersey. This project
    provides a safe, well-lit, consolidated controlled access
    facility for 60 ordnance loaded trucks, the minimum essential
    for loading a U.S. AOE or AE during normal peace time
    operations. Funding of $1,290,000 was originally included in
    the fiscal year 1994 appropriations bill.
        The Committee understands that an extension to pier 4 is
    necessary at the Naval Weapons Station, Earle, New Jersey. The
    Navy is to report to the Committee on the need for this
    extension and its plans, including possible NATO funding, for
    construction by September 16, 1996.

                        Military Construction, Air Force

    Fiscal year 1996:
        Appropriation.......................................    $587,234,000
        Rescissions.........................................     -15,150,000
            Net.............................................     572,084,000
    Fiscal year 1997 estimate...............................     603,059,000
    Committee recommendation in the bill....................     678,914,000
    Comparison with:
        Fiscal year 1996 net appropriation..................    +106,830,000
        Fiscal year 1997 estimate...........................     +75,855,000

        The Committee recommends a total of $678,914,000 for
    Military Construction, Air Force for fiscal year 1997. This is
    an increase of $75,855,000 above the budget request for fiscal
    year 1997, and an increase of $106,830,000 above the net
    appropriation for fiscal year 1996.

               california--mcclellan afb: flood control measures

        The budget request includes $8,795,000 for flood control
    measures at McClellan AFB, California. The Committee notes that
    both the House National Security Committee and the Senate Armed
    Services Committee have denied authorization for this project.
    Therefore, appropriations for this purpose are not recommended
    in this bill.

                         oklahoma--vance air force base

        The Committee is aware of several needs at Vance Air Force
    Base, Oklahoma, including a Base Engineering Complex,
    alterations to the Physical Fitness Center and alterations to
    the Consolidated Logistics Complex. The Air Force is to report
    to the Committee on the need for these projects and its plans
    for construction by September 16, 1996.

                      Military Construction, Defense-wide

    Fiscal year 1996:
        Appropriation.......................................    $640,357,000
        Rescissions.........................................     -41,866,000
            Net.............................................     598,491,000
    Fiscal year 1997 estimate...............................     812,945,000
    Committee recommendation in the bill....................     772,345,000
    Comparison with:
        Fiscal year 1996 net appropriation..................    +173,854,000
        Fiscal year 1997 estimate...........................     -40,600,000

        The Committee recommends a total of $772,345,000 for
    Military Construction, Defense-wide for fiscal year 1997. This
    is a decrease of $40,600,000 below the budget request for
    fiscal year 1997 and an increase of $173,854,000 above the net
    appropriation for fiscal year 1996.

                              Phase-Funded Project

      Maryland--Forest Glen (WRAIR): Army Institute of Research, Phase IV

        The budget request includes $92,000,000 as the full and
    final phase of funding for the Walter Reed Army Institute of
    Research (WRAIR) at Forest Glen, Maryland. However, the amount
    of construction that can be executed during fiscal year 1997
    totals $72,000,000. It is the Committee's long standing policy
    to limit annual appropriations for military construction
    projects to the amount of construction that can be executed
    during a single fiscal year. Therefore, the Committee
    recommends $72,000,000 for this on-going work for fiscal year
    1997, which is a reduction of $20,000,000 from the budget
    request. This reduction will have no effect on the pace of
    construction and will not delay the completion date for this
    project. The Department of Defense is directed to include the
    appropriate amount for this project in the fiscal year 1998
    budget request.

              Maryland--Fort Meade: Friendship Annex III Purchase

        The Friendship Annex III building (FANX III) was built to
    suit the National Security Agency's special purpose needs. The
    building contains approximately 420,000 square feet and has
    been under lease since 1970. The current terms of the lease,
    which was renegotiated in 1991, contain the option to purchase
    the building at a fixed price of $25,200,000 during the period
    of September 1, 1997 through March 1, 1998, and this amount is
    included in the budget request.
        The Committee is concerned that the National Security
    Agency expended $32,971,000 to renovate FANX III in advance of
    the purchase of the building. This renovation was included in
    the cost of the lease, which is funded as an operation and
    maintenance expense, rather than as a military construction
    expense. Had the Agency undertaken the renovation and
    acquisition of FANX III as a lease-purchase arrangement, or as
    a straightforward purchase of an existing building, regular
    procedure would have required prior notice to (and approval of)
    Congress. As structured by the Agency, the transaction avoided
    all Congressional approval and virtually all Congressional
    notification requirements. An acquisition report covering the
    lease renegotiation was submitted to Congress on August 30,
    1991, but it did not identify the cost of renovation, nor did
    it reflect that the improvements were to be paid for as they
    were made, as opposed to being amortized over the expected 25-
    year life of the lease.
        No specific statutory authority existed for the renovation
    of FANX III. The lease renegotiation was executed in 1991,
    during a period of historically significant Department of
    Defense downsizing, with two rounds of base closures yet to be
    conducted in 1993 and 1995. Excess facilities were being
    disposed of throughout the country, and this process continues.
        The Committee is in the process of conducting a thorough
    investigation of the National Security Agency's facilities
    requirements. Pending the results of this investigation, the
    Committee recommends denying funds in the amount of $25,200,000
    for the purchase of FANX III.

    Ohio--Defense Construction Supply Center (Columbus): Construct Entrance
                                 Roadway (DBOF)

        The budget request includes $600,000 to construct an
    entrance roadway at the Defense Construction Supply Center in
    Columbus, Ohio. This project is required due to a substantial
    increase in the number and concentration of personnel at the
    Center. It is the Committee's view that this work should have
    been included in the cost of either the Columbus Operations
    Center project or the DFAS Operations Facility project, because
    these personnel create the requirement. The Committee
    reluctantly recommends providing for this work to be
    accomplished as a separate military construction project, as
    requested.

                            Contingency Construction

        The budget request includes $9,500,000 for the contingency
    construction account, which provides for urgent unforeseen
    military facilities requirements as authorized by 10 USC 2804.
    This account funded a single project in fiscal year 1992, no
    projects in fiscal years 1993 through 1995, and a single
    project to date in fiscal year 1996. Unobligated balances of
    prior years' appropriations totaling $9,741,000 remain
    available for contingency construction. Therefore, the
    Committee recommends $4,500,000 for this account for fiscal
    year 1997, which is a reduction of $5,000,000 from the budget
    request.

              Domestic Dependent Elementary and Secondary Schools

        The budget request does not include funds for projects in
    support of the Domestic Dependent Elementary and Secondary
    Schools (formerly known as ``Section 6'' schools), despite
    requirements totaling $125,501,000. The Committee directs the
    Department of Defense to report by January 1, 1997 on this
    construction requirement, including a prioritized list of
    projects (by location) to correct deficiencies, and encourages
    inclusion of such projects in the budget request for fiscal
    year 1998.

               Overseas Elementary, Junior High, and High Schools

        The budget request does not include funds for projects in
    support of the 172 overseas schools operated by the Department
    of Defense Education Activity. The Committee directs the
    Department of Defense to report by January 1, 1997 on
    construction requirements in support of these schools,
    including a prioritized list of projects (by location) to
    correct deficiencies, and encourages inclusion of such projects
    in the budget request for fiscal year 1998.

                     Defense Finance and Accounting Service

        The Defense Finance and Accounting Service (DFAS) is in the
    process of consolidating its activities into five regional
    centers and 21 operating locations. This effort includes a
    major construction project to provide office and support space
    for the Columbus, Ohio Center and the Financial Systems
    Activity, Columbus, Ohio. This project is being phase funded in
    three increments, as follows:

            Fiscal Year                               In millions of dollars
    1996.............................................................. $37.4
    1997..............................................................  20.8
    1998..............................................................  14.2
                            -----------------------------------------------------------------
                            ________________________________________________
        Total.........................................................  72.4

        In addition, DFAS has programmed the following military
    construction projects at operating locations:

            Fiscal year and location                  In millions of dollars
    1997--Norton AFB/San Bernardino, CA............................... $13.8
    1997--Orlando, FL.................................................   2.6
    1997--Rock Island, IL.............................................  14.4
    1997--Loring AFB/Limestone, ME....................................   6.9
    1997--Offutt AFB/Omaha, NE........................................   7.0
    1997--Griffiss AFB/Rome, NY.......................................  10.2
    1997--Gentile AFB/Dayton, OH......................................  11.4
    1997--Charleston, SC..............................................   6.2
                            -----------------------------------------------------------------
                            ________________________________________________
        Subtotal (including Columbus, OH).............................  93.3
                            =================================================================
                            ________________________________________________
    1998--Honolulu, HI................................................  11.2
    1998--Columbus, OH................................................  14.2
    1998--Memphis, TN.................................................   5.8
    1998--Norfolk, VA.................................................  13.1
                            -----------------------------------------------------------------
                            ________________________________________________
        Subtotal......................................................  44.3
                            =================================================================
                            ________________________________________________
    1999--Fort Ord, CA................................................  20.0
    1999--Chanute AFB, IL.............................................  10.6
    1999--Lexington, KY...............................................   8.6
    1999--Fort Sill, OK...............................................  12.8
                            -----------------------------------------------------------------
                            ________________________________________________
        Subtotal......................................................  52.0
                            =================================================================
                            ________________________________________________
            Total..................................................... 189.6

        The Committee notes that a number of these projects are
    located at closing military installations, and constitute
    renovations of old facilities for new purposes, reutilizing
    federally owned assets without impacting the spirit and letter
    of base closure requirements.
        The Committee also notes that upon completion of this
    three-year program, all military construction requirements of
    the Defense Finance and Accounting Service will have been met.
    The Committee recommends approval of the requested projects for
    fiscal year 1997.

                          Defense Fuels Supply Center

        The Defense Logistics Agency (DLA) has been assigned the
    responsibility for programming the military construction
    requirements related to serving as the designated bulk
    petroleum manager for the Department of Defense. In fiscal year
    1997, such projects consume 84 percent of DLA's project, and
    only two non-fuels projects are requested by DLA. The Committee
    is concerned that no budgetary resources were transferred from
    the other components of the Department to DLA at the time of
    the assignment of this responsibility, and that other
    components realized a windfall at DLA's expense. The Department
    is urged to review this situation in order to assure that
    depot/storage facilities and operational facilities of DLA are
    not neglected.

                Italy--Sigonella NAS: Extend Hydrant Fuel System
                  Spain--Moron AB: Replace Hydrant Fuel System

        The budget request includes $6,100,000 for a fuels project
    at Sigonella Naval Air Station, Italy, and $12,958,000 for a
    fuels project at Moron Air Base, Spain. The Committee
    recommends approving these projects, contingent upon the
    submission of precautionary prefinancing statements to NATO for
    reimbursement of these expenses. The Committee strongly
    supports the development of a NATO capabilities package for
    Strategic Refueling in order to secure routine NATO financing
    of such projects.

                 Energy Conservation Improvement Program (ECIP)

        The Energy Conservation Improvement Program (ECIP) provides
    financing for individual projects that are evaluated,
    prioritized on the basis of technical merit and return on
    investment, and presented individually to Congress for
    approval. The budget request includes $47,765,000 as the level
    of effort for this program for fiscal year 1997. The primary
    benefits of the program include improved facility conditions,
    reduced environmental pollution, and utility and maintenance
    cost reduction.
        The Department is governed by two directives, the Energy
    Policy Act of 1992 (Public Law 102-486) and Executive Order
    12902. These directives require the Department to identify and
    accomplish all energy conservation measures that pay back in
    ten years or less. The Department has surveyed its physical
    plant and has identified approximately $4 billion of needed
    investment to accomplish all identified conservation measures.
    There are several means available for performing this work.
    Some is done in conjunction with on-going repair and
    replacement programs, some through utility company investments,
    some through energy performance contracts, some through
    operations and maintenance projects and individual Service
    energy programs, and some through the Energy Conservation
    Improvement Program (ECIP). Generally, ECIP is reserved for
    larger projects which deserve closer Departmental scrutiny.
    Such items have high savings-to-investment ratios, and also
    include a small number of projects that support other goals of
    the Energy Policy Act such as renewable energy and water
    conservation.
        The Committee notes that the Department currently uses 12.4
    percent less energy per square foot of occupied buildings than
    it did in 1985, saving over $380 million in utility bills in
    1995. The Committee believes that this is a sound return on
    investment, and recommends full funding of the requested level
    of $47,765,000 for this program. The Committee will expect that
    each individual project will continue to be supported with an
    economic analysis to show the savings-to-investment ratio and
    the simple payback, and that life-cycle cost analyses will
    continue to be performed as projects are modified by additional
    information and design detail. Most importantly, the Committee
    will expect the Department to give great consideration to
    further reduction in the payback period, especially in such
    difficult to quantify areas as renewable energy, water
    conservation, emerging technologies, and contribution to
    environmental pollution prevention.
        The Committee is aware of the Department's efforts to
    develop a multi-media energy manager's training program in
    partnership with a larger private consortium. The Committee
    supports the use of appropriated funds to improve the level of
    technical and programmatic knowledge of Defense energy
    managers, as well as design engineers and architects, and the
    leveraging of Federal funds through participation in public/
    private partnerships such as this. Therefore, the Committee
    will expect the Department to continue to contribute such sums
    as may be required for the on-going computer-based energy
    manager training software package in order to complete this
    work.

                   Chemical Weapons Demilitarization Program

        The budget request includes a total of $131,621,000 for the
    following funding increments for the chemical weapons
    demilitarization program for fiscal year 1997:

    Arkansas:
        Pine Bluff Arsenal
            Ammunition demilitarization facility, Phase II..     $46,000,000
    Colorado:
        Pueblo Depot Activity
            Ammunition demilitarization facility, Phase I...      17,497,000
    Oregon:
        Umatilla Depot Activity
            Ammunition demilitarization facility, Phase II..      64,000,000
    Unspecified Worldwide Location:
        Planning and Design.................................   \1\ 4,124,000
                        --------------------------------------------------------
                        ____________________________________________________
            Total...........................................     131,621,000

    \1\ In addition to this amount, prior year unobligated funds totaling
    $6,876,000 will be used to fund fiscal year 1997 planning and design
    requirements.

        The Committee takes note that this budget request is
    limited to the amount of construction that can be put in place
    during fiscal year 1997, and therefore recommends fully funding
    the request.
        The following chart displays the scope of the military
    construction investment in the overall chemical
    demilitarization program:

                              CHEMICAL DEMILITARIZATION PROGRAM MILITARY CONSTRUCTION COSTS
                                          [In millions of dollars, fiscal year]
    ----------------------------------------------------------------------------------------------------------------
                                               1995 &
                    Location                   Prior     1996     1997     1998     1999     2000     2001    Total
    ----------------------------------------------------------------------------------------------------------------
    Johnston Atoll..........................    $50.0  .......  .......  .......  .......  .......  .......    $50.0
    Chemical Demil Training Facility,
     Aberdeen, MD...........................     16.1  .......  .......  .......  .......  .......  .......     16.1
    Tooele Facilities, UT...................    198.0  .......  .......  .......  .......  .......  .......    198.0
    Anniston Facilities, AL.................    164.3  .......  .......  .......  .......  .......  .......    164.3
    Umatilla Facility, OR...................     12.0  .......    $64.0    $92.0    $20.0  .......  .......    188.0
    Umatilla Depot Support, OR..............     11.1  .......  .......  .......  .......  .......  .......     11.1
    Pine Bluff Facility, AR.................      3.0  .......     46.0     61.0      8.0  .......  .......    118.0
    Pine Bluff Depot Support, AR............     15.0  .......  .......  .......  .......  .......  .......     15.0
    Pueblo Facility, CO.....................  .......  .......     17.5     60.0     97.5  .......  .......    175.0
    Pueblo Depot Support, CO................      6.3  .......  .......  .......  .......  .......  .......      6.3
    Blue Grass Facility, KY.................  .......  .......  .......     48.7    100.0    $33.3  .......    182.0
    Blue Grass Depot Support, KY............  .......  .......  .......      7.8  .......  .......  .......      7.8
    Aberdeen Facility, MD...................  .......  .......  .......  .......     45.5     50.0    $23.5    119.0
    Aberdeen Depot Support, MD..............  .......  .......  .......      9.0  .......  .......  .......      9.0
    Newport Facility, IN....................  .......  .......  .......  .......  .......     30.1     43.5     73.6
    Newport Depot Support, IN...............  .......  .......  .......  .......      2.1  .......  .......      2.1
    Planning and Design.....................  .......    $13.0      4.1      9.7      4.7      2.0  .......     33.5
                                             -----------------------------------------------------------------------
          Total.............................    475.8     13.0    131.6    288.2    277.8    115.4     67.0  1,368.8
    ----------------------------------------------------------------------------------------------------------------

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

                               CHEMICAL DEMILITARIZATION PROGRAM TIMETABLE AND MILESTONES
                                                 [In fiscal years]-----
    ----------------------------------------------------------------------------------------------------------------
                                                            Start of        Start of
                          Location                        Construction    Systemization           Operations
    ----------------------------------------------------------------------------------------------------------------
    Johnson Atoll......................................  ..............  ..............        3rd Qtr 90-1st Qtr 00
    Tooele, UT.........................................      4th Qtr 89      4th Qtr 93        3rd Qtr 96-3rd Qtr 03
    Anniston, AL.......................................      4th Qtr 96      3rd Qtr 99        2nd Qtr 01-1st Qtr 05
    Umatilla, OR.......................................      4th Qtr 96      4th Qtr 99        3rd Qtr 01-4th Qtr 04
    Pine Bluff, AR.....................................      4th Qtr 96      3rd Qtr 99        2nd Qtr 01-3rd Qtr 04
    Pueblo, CO.........................................      3rd Qtr 97      2nd Qtr 00        1st Qtr 02-3rd Qtr 04
    Blue Grass, KY.....................................      2nd Qtr 98      1st Qtr 01        4th Qtr 02-3rd Qtr 04
    Aberdeen, MD.......................................      2nd Qtr 99      3rd Qtr 01        1st Qtr 03-3rd Qtr 03
    Newport, IN........................................      2nd Qtr 00      3rd Qtr 02        1st Qtr 04-3rd Qtr 04
    ----------------------------------------------------------------------------------------------------------------

         military construction, defense-wide: administrative provision

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

     Department of Defense Military Unaccompanied Housing Improvement Fund

    Fiscal year 1996 appropriation..........................               0
    Fiscal year 1997 estimate...............................               0
    Committee recommendation in the bill....................     $10,000,000
    Comparison with:
        Fiscal year 1996 appropriation......................     +10,000,000
        Fiscal year 1997 estimate...........................     +10,000,000

        The Committee recommends a total of $10,000,000 for the
    Department of Defense Military Unaccompanied Housing
    Improvement Fund for fiscal year 1997. This is an increase of
    $10,000,000 above the budget request for fiscal year 1997, and
    an increase of $10,000,000 above the appropriation for fiscal
    year 1996.
        The Committee has not approved the request for a new
    general provision allowing transfer of funds into this account,
    and in lieu thereof has provided an initial appropriation of
    $10,000,000 and transfer authority within the appropriation
    paragraph.

                                    Overview

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

                             Reporting Requirements

        The Committee reiterates the reporting requirements
    contained in the enabling legislation. The Service Secretary
    concerned may not enter into any contract until after the end
    of the 21-day period beginning on the date the Secretary
    concerned submits written notice of the nature and terms of the
    contract to the appropriate Committees of Congress.
        In the future, budget justification documents are to
    display project and administrative costs. No transfer of
    appropriated funds into the account may take place until after
    the end of the 30-day period beginning on the date the
    Secretary of Defense submits written notice and justification
    for the transfer to the appropriate Committees of Congress. The
    Appropriations Committee expects to receive prior notification
    of all such transfers of funds.
        In addition, the Department is to report to the Committee
    on Appropriations, within sixty days after enactment of this
    Act, it's framework for leveraging these resources.

                   Military Construction, Reserve Components

    Fiscal year 1996:
        Appropriation.......................................    $436,647,000
        Rescission..........................................      -6,700,000
            Net.............................................     429,947,000
    Fiscal year 1997 estimate...............................     194,091,000
    Committee recommendation in the bill....................     294,693,000
    Comparison with:
        Fiscal year 1996 net appropriation..................    -135,254,000
        Fiscal year 1997 estimate...........................    +100,602,000

        The Committee recommends a total of $294,693,000 for
    Military Construction, Reserve Components for fiscal year 1997.
    This is an increase of $100,602,000 above the budget request
    for fiscal year 1997, and a decrease of $135,254,000 below the
    net appropriation for 1996.
        The Committee's recommended action on each Reserve
    Component is reflected in the State list at the end of this
    report.
        The Committee recommends approval of Military Construction,
    as follows:

    ------------------------------------------------------------------------
                 Component                   Request          Recommended
    ------------------------------------------------------------------------
    Army National Guard...............       $7,600,000 -        $41,316,000
    Air National Guard-...............       75,394,000 -        118,394,000
    Army Reserve......................         48,459,000         50,159,000
    Naval Reserve.....................         10,983,000         33,169,000
    Air Force Reserve-................         51,655,000         51,655,000
                                       -------------------------------------

        Total.........................        194,091,000        294,693,000
    ------------------------------------------------------------------------

            connecticut--groton: building codes and fire suppression

        Funds were authorized and appropriated in fiscal year 1995
    for additions and alterations to the aviation repair depot at
    Groton, Connecticut. The Committee understands that this
    project requires an additional $5,647,000 due to changes in
    building codes and fire suppression requirements. The Committee
    directs the Army National Guard to submit the appropriate scope
    and cost variation reports to the appropriate committees in
    order to carry out the necessary changes to this project.

            illinois--decatur: helicopter landing pads and taxilanes

        The Committee directs the Army National Guard to execute a
    project to provide helicopter landing pads and taxilanes at the
    Decatur, Illinois Army Aviation Support Facility using funds
    available for unspecified minor construction. The estimated
    cost of this project is $575,000.

      mississippi--various locations, south mississippi: beddown avenger
                                     system

        The National Guard Bureau directed a reorganization of
    units in South Mississippi from Field Artillery to Air Defense
    Artillery (the Avenger air defense system). This reorganization
    created the need for additions, alterations, and new
    construction at several locations. The fiscal year 1994
    appropriations act included $5,204,000 for a project to
    accomplish this work. An unfavorable bidding climate and
    changes in scope requirements would necessitate overruns at the
    full scope of work. Contracts have been awarded at reduced
    scope, with additives totaling $5,464,000. The Committee
    directs the Secretary of the Army to submit the appropriate
    scope and cost variation reports to the appropriate committees
    in order to accomplish the full scope of work expeditiously.

              virginia--richlands: organizational maintenance shop

        The Committee is aware that additional funds will be
    required to complete the construction of the Organizational
    Maintenance Shop at Richlands, Virginia. The Army National
    Guard is encouraged to submit a reprogramming request to
    complete work on this project.

                               regional education

        The Committee directs the Army National Guard to review the
    facilities needs for the Combat Arms Training Brigade for
    Region C to carry out its assigned regional educational
    missions, and to report by January 1, 1997 on a cost-effective
    proposal for meeting these mission requirements.

                              unobligated balances

        The Committee is very concerned over the continuing poor
    execution rates for the military construction programs of the
    Reserve Components. According to the appendices to the budget
    requests for fiscal years 1996 and 1997, the following amounts
    will remain unobligated at the end of each fiscal year:

    ----------------------------------------------------------------------------------------------------------------
                                                                  1994 actual- 1995 actual-     1996         1997
                              Component                                                      estimate-     estimate
    ----------------------------------------------------------------------------------------------------------------
    Army National Guard-........................................        $366-        $277-        $232-         $100
    Air National Guard-.........................................         238-         218-         221-          168
    Army Reserve-...............................................         121-          85-          50-           28
    Naval Reserve-..............................................          60-          28-          17-            7
    Air Force Reserve-..........................................          43-          33-          28-           31
                                                                 ---------------------------------------------------
          Total-................................................         828-         641-         548-          334
    ----------------------------------------------------------------------------------------------------------------

        The Committee understands that these amounts remain
    available for completion of prior year approved budget plans,
    that funds remain available for five years, and that the
    Reserve Components face a number of difficult challenges in
    program execution. However, the Committee will expect to see
    increased attention given to assure that contracts are awarded
    during the fiscal year in which funds are provided. The
    Committee intends to follow closely the Annual Report on Design
    and Construction Progress and the reinstated semi-annual
    submission of Audit Trail Documents in order to track
    improvement in program execution.--

                           Unawarded Armory Projects

        The Army National Guard has not yet awarded twenty-three
    armory projects (or armory projects combined with other
    facilities, such as organizational maintenance shops or reserve
    centers) for which funds were appropriated for fiscal years
    1992 through 1995. Due to this backlog of unawarded projects,
    the Committee recommended no new armory construction in fiscal
    year 1996, and again recommends no such projects for fiscal
    year 1997. The unawarded projects are at the following
    locations and in the following amounts, according to
    information available in Department of Defense accounting
    reports as of April, 1996 (the most recent information
    available):

    ------------------------------------------------------------------------
                                                                  Current
         Fiscal year, State and location          Amount          working
                                               appropriated      estimate
    ------------------------------------------------------------------------
    1992, OH, Toledo........................      $3,183,000      $3,820,000
    1993, PA, Indiana.......................       1,700,000       1,391,000
    1993, OR, Le Grande.....................       3,049,000       3,049,000
    1993, FL, Craig Field (Jacksonville)....       1,480,000       1,192,000
    1993, AL, Union Springs.................         800,000         800,000
    1993, AL, Tuscaloosa....................       2,273,000       2,273,000
    1994, TN, Sevierville...................       1,352,000       1,103,000
    1994, PA, Johnstown.....................       3,309,000       3,143,000
    1994, IN, Evansville....................       6,050,000       6,050,000
    1994, CA, Van Nuys......................       6,518,000       6,518,000
    1995, WY, Torrington....................       5,300,000       5,300,000
    1995, TN, Rogersville...................       1,820,000       1,820,000
    1995, TN, Springfield...................       1,115,000       1,102,000
    1995, TN, Chattanooga...................       1,604,000       1,602,000
    1995, TN, Johnson City..................       6,019,000       6,019,000
    1995, TN, Linden........................       1,097,000       1,097,000
    1995, PA, Westmoreland County...........       3,594,000       3,548,000
    1995, OH, Ravenna.......................       4,500,000       4,500,000
    1995, PA, Armstrong County..............       1,982,000       1,982,000
    1995, NV, Washoe County.................       5,520,000       5,520,000
    1995, ME, Augusta.......................       3,900,000       3,900,000
    1995, MA, Taunton.......................       2,900,000       2,900,000
    1995, CO, Denver........................       5,000,000       4,772,000
                                             -------------------------------
          Total.............................      74,065,000      73,401,000
    ------------------------------------------------------------------------

         North Atlantic Treaty Organization Security Investment Program

    Fiscal year 1996:
        Appropriation.......................................    $161,000,000
        Supplemental Appropriation..........................     +37,500,000
            Net.............................................     198,500,000
    Fiscal year 1997 estimate...............................     197,000,000
    Committee recommendation in the bill....................     177,000,000
    Comparison with:
        Fiscal year 1996 net appropriation..................     -21,500,000
        Fiscal year 1997 estimate...........................     -20,000,000

        The Committee recommends a total of $177,000,000 for the
    North Atlantic Treaty Organization Security Investment Program.
    This is a decrease of $20,000,000 below the budget request for
    fiscal year 1997 and a decrease of $21,500,000 below the net
    appropriation for fiscal year 1996.
        For 1997, the NATO nations have agreed on a funding level
    of approximately $890,700,000. Of this amount, the U.S.
    requirement is based on a cost share which averages about 26%.
    In addition to the recommended appropriation of $177,000,000,
    approximately $11,000,000 is expected to be available from
    recoupments from prior year U.S. funded work, and from
    deobligation of NATO funds for previously obligated projects
    that were reduced in scope or canceled.
        The Committee reiterates the directive contained in House
    Report 104-137. The Department of Defense is directed to report
    to the Committees on Appropriations, on a quarterly basis, the
    following information:
              (1) NATO nations share of construction costs based on
            fund authorizations;
              (2) NATO nations shares of procurement costs based on
            fund authorizations; and
              (3) A listing of all obligations incurred that
            quarter broken out by infrastructure category and
            procurement category. This listing should show the
            total project costs, the U.S. cost share and all other
            NATO nations cost shares.

                                 Family Housing

                                    Overview

        The need for military family housing has changed with the
    all-volunteer structure of the force. In the mid-1950s forty-
    two percent of the force was married, compared to sixty-one
    percent today. The percentage of service members with families
    will continue to grow, and the nature of an all-volunteer force
    implies greater expectations for the availability, size and
    amenities of family housing. At the same time, the Department
    is faced with a changing military environment due to overseas
    reductions, domestic base closures, major force reductions, and
    increased deployments.
        Today, the family housing program is even more important
    because it provides a quality of life incentive which attracts
    and retains dedicated individuals to serve in the military.
    However, the housing deficiencies are a severe disincentive to
    reenlistment. Testimony before the Committee states that it
    costs over $26,000 to recruit and train an enlisted soldier for
    the first assignment. This investment is lost each time a
    soldier must be replaced. The Committee has no question that
    housing is directly linked to readiness, morale and retention.
        While this Committee has focused on the need for adequate
    family housing over the years, resources have been scarce. This
    problem has recently been brought to the forefront with several
    articles in the press and an increased focus by the Department
    of Defense. The family housing crisis exists today due to the
    majority of housing in the Department's inventory being
    substandard; high cost areas where housing deficits exist; and
    problems young families are facing who cannot afford to live in
    local communities.
        DOD policy is that married couples will live off-base when
    the economy can support them, and about two-thirds, or 614,928
    families, reside off-base. Where there is sufficient affordable
    housing in the community and commuting distances are not over
    one hour, most of these families are doing well. However, 12
    percent of military families living in civilian communities are
    in substandard housing. This is often the case when rents are
    excessive or a family can only afford to live in distant,
    isolated, and sometimes unsafe neighborhoods. This is occurring
    more often because housing allowances are covering only 75
    percent of the cost of civilian housing, on average. Many
    younger families only have one car and are faced with driving
    distances of over an hour to the installation. In some
    instances, families are choosing to remain separated simply
    because suitable, affordable housing is not available at a new
    assignment.
        The Department of Defense has a total of 350,799 on-base
    housing units in its inventory, with an average age of 33
    years. Two-thirds of the inventory is over 30 years old and
    requires a substantial annual investment to meet maintenance
    requirements. Over the years, the majority of these homes have
    gone without adequate maintenance and repair. And over fifty
    percent of the inventory, or 184,295 units, is in need of major
    improvements or replacement at a total cost of $16,591,388,000.
        Unsuitable units require a major investment in maintenance
    and repair to correct deteriorated infrastructure, provide
    basic living standards and meet contemporary code requirements
    for electrical and mechanical systems, and for energy
    efficiency. Examples provided to the Committee of a typical
    scenario military families face include: severe health and
    safety deficiencies such as electrical systems and water pipes
    needing replacement; non-working or inefficient heating and
    cooling systems; nails coming through the ceilings and floors;
    kitchen cabinets water-logged and sinking; ceiling and wall
    paint chipped and peeling; screens with holes in them; doors
    coming apart; malfunctioning smoke detectors; light fixtures
    broken, and stoves and ovens with elements not working. The
    current backlog of deferred maintenance and repair totals in
    excess of $4,565,000,000. When housing units are not adequately
    maintained, eventually they must be closed and abandoned or
    demolished. Families who could have been housed in these units
    must then live off-base. In turn, this creates an additional
    expense for payment of housing allowances.
        Aside from the problems confronting the current inventory,
    the Department estimates a new construction deficit of 48,428
    units at a cost of $6,126,032,000. The Secretary of Defense
    proposed, and Congress has approved, a plan for a private
    sector initiative which is discussed later in this report. The
    Committee is hopeful this initiative will be successful and
    help to resolve the new construction deficit in a timely
    manner.
        It will be necessary to use many different approaches to
    help meet the current family housing need. The challenge is for
    a sustained overall commitment, at funding levels that will
    reduce the backlog of inadequate houses, reduce the housing
    deficits, and increase the quality of living conditions in a
    reasonable period of time. The Department estimates it will
    take over $27,000,000,000 to correct the existing problem.
        The following chart provides a Service breakout of the
    current family housing deficit, both in units and in cost of
    new construction, replacement, improvements and deferred
    maintenance and repair:

                                             DEFICITS (CURRENT PROJECTIONS)
                                                [In thousand of dollars]
    ----------------------------------------------------------------------------------------------------------------
                                                                                          Deferre
                                            New                                         maintenance
             ----------------          construction       Replace         Improve     and repair end    Grand total
                                                                                           FY 96
    ----------------------------------------------------------------------------------------------------------------
    Army:
        Number of Units.............           4,415          31,200          46,800  ..............          82,415
        Costs-......................      $596,602--     $4,212,000-    $3,042,000--       $621,000-      $8,471,602
    Navy:
        Number of Units-............         14,700-         6,400--         26,400-              --          47,500
        Costs.......................     $1,930,000-       $953,200-     $1,812,400-    $2,400,000--      $7,095,000
    Air Force:
        Number of Units-............         18,000-         20,600-         44,000-  ..............          82,600
        Costs--.....................     $2,160,000-     $2,472,000-    $3,520,000--      $944,000--     $9,096,000-
    Marine Corps:
        Number of Units-............         11,313-           697--         8,198--              --          20,208
        Costs--.....................     $1,439,430-       $164,821-      $414,967--      $600,000--      $2,619,218
    Total:
        Number of Units-............         48,428-         58,897-       125,398--              --         232,723
        Costs-......................     $6,126,032-     $7,802,021-     $8,789,367-     $4,565,000-     $27,282,420
    ----------------------------------------------------------------------------------------------------------------

                             construction overview

        The Committee is concerned over the fiscal year 1997 budget
    request for family housing new construction, construction
    improvements and planning of $714,346,000. The Secretary of
    Defense has made housing one of his main priorities, yet the
    Department's budget represents a reduction of $228,878,000, or
    24%, from the fiscal year 1996 appropriation for new
    construction and construction improvements. The Committee
    strongly believes it is imperative that construction funding
    levels must be maintained, along with any privatization
    efforts, to help resolve the serious family housing deficits.
    Therefore, the Committee recommends total funding of
    $1,017,498,000 for family housing construction for fiscal year
    1997. This represents an increase of $74,274,000 over the
    fiscal year 1996 appropriation and an increase of $303,152,000
    over the budget request.

                            new housing construction

        The fiscal year 1997 request is $369,087,000 to build 2,297
    units of new family housing for all Services. This is
    $97,927,000 or 21 percent, under the fiscal year 1996 enacted
    level. The Committee has approved all requested projects for
    new housing construction. In addition, the Committee has
    recommended an additional $159,702,000 to build 1,426 units of
    new family housing. The total appropriation for new
    construction is $528,789,000 and will provide 3,723 new units.
    Details of the Committee's recommendations for new construction
    are provided in this report under the individual component
    accounts. The Committee expects that none of the approved
    projects will be reduced in scope.
        It is the understanding of the Committee, that upon a 30-
    day notification from the Secretary of Defense, and approval of
    the Committee, funds appropriated for a new construction
    project may be transferred to the Defense Family Housing
    Improvement Fund for the purpose of a private sector pilot
    project at the same location.
        The Committee will consider reprogramming requests for any
    authorized new construction project for which funds have not
    been appropriated in prior years.

                           construction improvements

        A total of $309,654,000 has been requested for post-
    acquisition construction for all services to improve 4,075
    housing units. This is a decrease of $131,177,000, or 30
    percent, from the fiscal year 1996 enacted level. Post-
    acquisition construction is focused on modernizing existing
    units that are uneconomical to repair. The Committee recommends
    full funding of the request. In addition, the Committee has
    provided an additional $143,450,000 for construction
    improvement projects which are listed in this report under the
    individual component accounts, to improve an additional 2,251
    units. The total appropriation for post-acquisition
    construction is $453,104,000 and will improve 6,326 units of
    family housing.
        It is the understanding of the Committee, that upon a 30-
    day notification from the Secretary of Defense, and approval of
    the Committee, funds appropriated for a construction
    improvement project may be transferred to the Defense Family
    Housing Improvement Fund for the purpose of a private sector
    pilot project at the same location.
        The Committee continues the restriction on the amount
    invested in improving foreign source housing units. The three-
    year limitation on overseas units is $35,000. If the components
    intend to program improvements to specific units which exceed
    $35,000 over a period of three years, total funding should be
    requested in one year. The justification for each unit should
    identify all improvements and major maintenance work done in
    the past three years, and all improvements and major
    maintenance planned in the following three years.

                           operation and maintenance

        The fiscal year 1997 request for operation and maintenance
    expenses totals $3,087,144,000, a decrease of $176,461,000,
    from the fiscal year 1996 appropriation. These accounts provide
    for annual expenditures for maintenance and repair,
    furnishings, management, services, utilities, leasing,
    interest, mortgage insurance and miscellaneous expenses. Of the
    total request for operation and maintenance, $1,463,752,000 is
    for maintenance and repair of existing housing, a reduction of
    $112,331,000 from fiscal year 1996 levels.
        While the Committee agrees with the reduction of
    $64,130,000 to the majority of the accounts, it has serious
    reservations over the requested reduction of $112,331,000 to
    the maintenance of real property accounts. Testimony from
    representatives of the Department verifies that this request is
    driven by budget constraints, not by actual need. Therefore,
    the Committee has recommended an additional $100,000,000 for
    the maintenance real property accounts, distributed as follows:
    Army: $45,000,000; Navy $44,000,000; and Air Force $11,000,000.
        The total recommended appropriation for operation and
    maintenance is $3,187,144,000. This represents an increase of
    $100,000,000 above the budget request and a reduction of
    $76,461,000 from the fiscal year 1996 enacted level.
        Expenditures from this account for general and flag officer
    quarters are to be reported in accordance with the guidelines
    previously established and reiterated later in this report. The
    Committee also continues the direction that the details of all
    other expenditures from this account which exceed $15,000 per
    unit, per year for major maintenance and repair of non-general
    and flag officer quarters be included as part of the
    justification material. The general provision limiting
    obligations from this account to no more than 20 percent of the
    total in the last two months of the fiscal year is included in
    this year's bill.
        The Committee continues the restriction on the transfer of
    funds between the operation and maintenance accounts. The
    limitation is ten percent to all primary accounts and
    subaccounts. Such transfers are to be reported to the Committee
    within thirty days of such action.

                       general and flag officer quarters

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

                         leasing reporting requirement

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

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

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

                             reprogramming criteria

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

                              Family Housing, Army

    Fiscal year 1996 appropriation..........................  $1,452,252,000
    Fiscal year 1997 estimate...............................   1,287,479,000
    Committee recommendation in the bill....................   1,434,069,000
    Comparison with:
        Fiscal year 1996 appropriation......................     -18,183,000
        Fiscal year 1997 estimate...........................    +146,590,000

        The Committee recommends a total of $1,434,069,000 for
    Family Housing, Army for fiscal year 1997. This is an increase
    of $146,590,000 above the budget request for fiscal year 1997,
    and a decrease of $18,183,000 below the appropriation for
    fiscal year 1996.

                                  construction

        The Committee recommends $59,190,000 for new construction,
    instead of $38,300,000, as requested, as shown below:

    ------------------------------------------------------------------------
            Location/Project---             Requested-        Recommended
    ------------------------------------------------------------------------
    Alabama: Redstone Arsenal (70
     units)...........................                  0         $8,000,000
    Hawaii: Schofield Barracks (54
     units)...........................        $10,000,000         10,000,000
    North Carolina: Fort Bragg (88
     units)...........................          9,800,000          9,800,000
    Pennsylvania: Tobyhanna AD (200
     units)...........................                  0            890,000
    Texas:
        Fort Bliss, Phase I (70 units)                  0         12,000,000
        Fort Hood (140 units).........         18,500,000         18,500,000
                                       -------------------------------------
          Total.......................         38,300,000         59,190,000
    ------------------------------------------------------------------------

                           Construction Improvements

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

    ------------------------------------------------------------------------
                                                Number of
                 Location/Project                 units-      Recommended
    ------------------------------------------------------------------------
    Alabama--Fort Rucker......................       256-        $18,000,000
    Kentucky--Fort Campbell...................        200         18,700,000
    Louisiana--Fort Polk......................      250--          7,200,000
    Oklahoma--Fort Sill.......................        328         14,400,000
    Pennsylvania--Tobyhanna AD................       42--          2,300,000
    Germany--Kefurt and Craig, Stuttgart......       120-          7,300,000
    Germany--Baumholder Family Village........       64--          4,600,000
    Germany--Ben Franklin Village, Mannheim...      136--          8,200,000
                                               -----------------------------
          Total...............................      1,396         80,700,000
    ------------------------------------------------------------------------

                          Maintenance of real property

        The budget request includes $525,893,000 for maintenance of
    real property, a reduction of $106,399,000 from the fiscal year
    1996 appropriation. The Committee recommends an increase of
    $45,000,000 providing a total of $579,893,000.

                     Family Housing, Navy and Marine Corps

    Fiscal year 1996 appropriation..........................  $1,573,387,000
    Fiscal Year 1997 estimate...............................   1,417,967,000
    Committee recommendation in the bill....................   1,590,697,000
    Comparison with:
        Fiscal year 1996 appropriation......................     +17,310,000
        Fiscal year 1997 estimate...........................    +172,730,000

        The Committee recommends a total of $1,590,697,000 for
    Family Housing, Navy and Marine Corps for fiscal year 1997.
    This is an increase of $172,730,000 above the budget request
    for fiscal year 1997, and an increase of $17,310,000 above the
    amount appropriated for fiscal year 1996.

                                  Construction

        The Committee recommends $300,730,000 for new construction,
    instead of $197,700,000, as requested, as shown below:

    ------------------------------------------------------------------------
             Location/Project               Requested-        Recommended
    ------------------------------------------------------------------------
    Arizona: MCAS Yuma (Community
     Center)..........................          $709,000-           $709,000
    California:
        Camp Pendleton (202 units)....         19,483,000         29,483,000
        Lemoore NAS (276 units).......         39,837,000         39,837,000
        San Diego PWC (466 units).....         48,719,000         63,429,000
        Twenty-Nine Palms (Community
         Center)......................          1,982,000          1,982,000
        Twenty-Nine Palms (Housing
         Office)......................            956,000            956,000
    Florida: Mayport NS (100 units)...                  0         10,000,000
    Hawaii:
        Kaneohe Bay (54 units)........         11,676,000         11,676,000
        PWC Pearl Harbor (264 units)..         52,586,000         52,586,000
    Maine; Brunswick NAS Phase I (72
     units)...........................                  0         10,925,000
    Maryland: Patuxent River
     (Community Center)...............          1,233,000          1,233,000
    North Carolina:
        Camp Lejeune (Community
         Center)......................            845,000            845,000
        Camp Lejeune MCB (125 units)..                  0         13,360,000
    South Carolina: Beaufort MCAS (200
     units)...........................                  0         19,110,000
    Texas:
        Corpus Christi Naval Complex
         (156 units)..................                  0         17,425,000
        Kingsville NAS Phase I (32
         units).......................                  0          7,550,000
    Virginia:
        Wallops Island (20 units).....          2,975,000          2,975,000
        Northwest (Community Center)..            741,000            741,000
    Washington: Puget Sound (100
     units)...........................         15,015,000         15,015,000
    Washington: Bangor (Housing
     Office)..........................            934,000            934,000
                                       -------------------------------------
          Total.......................        197,691,000        300,771,000
    ------------------------------------------------------------------------

                           Construction Improvements

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

    ------------------------------------------------------------------------
                                                Number of
                Location/Project--                units-      Recommended
    ------------------------------------------------------------------------
    Hawaii--Pearl Harbor PWC..................         54         $6,650,000
    Mississippi--Meridian NAS.................       160-          6,600,000
    Texas--Fort Worth JRB.....................         55          2,400,000
    Washington--Whidbey Island NAS............        150         10,000,000
                                               -----------------------------
          Total...............................        419         25,650,000
    ------------------------------------------------------------------------

                          Maintenance of real property

        The budget request includes $508,632,000 for maintenance of
    real property, a reduction of $25,391,000 from the fiscal year
    1996 appropriation. The Committee recommends an increase of
    $44,000,000, providing a total of $552,632,000.

                           Family Housing, Air Force

    Fiscal year 1996 appropriation..........................  $1,146,951,000
    Fiscal year 1997 estimate...............................   1,060,710,000
    Committee recommendation in the bill....................   1,144,542,000
    Comparison with:
        Fiscal year 1996 appropriation......................      -2,409,000
        Fiscal year 1997 estimate...........................     +83,832,000

        The Committee recommends a total of $1,144,542,000 for
    Family Housing, Air Force for fiscal year 1997. This is an
    increase of $83,832,000 above the budget request for fiscal
    year 1997, and a decrease of $2,409,000 below the appropriation
    for fiscal year 1996.

                                  Construction

        The Committee recommends $168,828,000 for new construction,
    instead of $133,096,000, as requested, as shown below:

    ------------------------------------------------------------------------
            Location/Project---             Requested-        Recommended
    ------------------------------------------------------------------------
    Alaska:
        Eielson AFB (Fire Station)....         $2,950,000         $2,950,000
        Eielson AFB (72 units)........         21,127,000         21,127,000
    California:
        Beale AFB (56 units)..........         8,893,000-          8,893,000
        Los Angeles AFB (25 units)....                 0-          6,425,000
        Travis AFB (70 units).........         8,631,000-          8,631,000
        Vandenberg AFB (112 units)....         20,891,000         20,891,000
    District of Columbia: Bolling AFB
     (40 units).......................         5,000,000-          5,000,000
    Florida:
        Eglin AFB (Hurlbert Field)....            249,000            249,000
        MacDill AFB (56 units)........          8,822,000          8,822,000
        Patrick AFB (Housing
         Maintenance Facility)........           853,000-            853,000
        Patrick AFB (Housing
         Warehouse)...................            756,000            756,000
        Patrick AFB (Replace Housing
         Office)......................           821,000-            821,000
        Tyndall AFB (42 units)........                 0-          6,000,000
    Georgia: Robins AFB (46 units)....                0 -          5,252,000
    Louisiana: Barksdale AFB (80
     Units)...........................         9,570,000-          9,570,000
    Massachusetts: Hanscom AFB Phase
     III (32 units)...................                 0-          5,100,000
    Missouri: Whiteman AFB (68 units).         9,600,000-          9,600,000
    Nevada: Nellis AFB Phase III (50
     units)...........................                 0-          7,955,000
    New Mexico: Kirtland AFB (50
     units)...........................         5,450,000-          5,450,000
    North Dakota:
        Grand Forks AFB (66 units)....         7,784,000-          7,784,000
        Minot AFB (46 units)..........         8,740,000-          8,740,000
    Texas:
        Lackland AFB (82 units).......         6,500,000-         11,500,000
        Lackland AFB (Replace Housing
         Office)......................           450,000-            450,000
        Lackland AFB (Replace
         Maintenance Facility)........           350,000-            350,000
    Washington: McChord AFB (40 units)         5,659,000-          5,659,000
                                       -------------------------------------
          Total.......................        133,096,000        168,828,000
    ------------------------------------------------------------------------

                           Construction Improvements

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

    ------------------------------------------------------------------------
                                                Number of
                     Location                     units       Recommended
    ------------------------------------------------------------------------
    Florida--Eglin AFB........................        112         $8,600,000
    Ohio--Wright-Patterson AFB................        52-          6,000,000
    Texas--Laughlin AFB.......................       180-         15,000,000
    Utah--Hill AFB............................        92-          7,500,000
                                               -----------------------------
          Total...............................        436         37,100,000
    ------------------------------------------------------------------------

                          Maintenance of real property

        The budget request includes $428,087,000 for maintenance of
    real property, an increase of $19,116,000 from the fiscal year
    1996 appropriation. The Committee recommends an increase of
    $11,000,000, providing a total of $439,087,000.

                          Family Housing, Defense-wide

    Fiscal year 1996 appropriation..........................     $34,239,000
    Fiscal year 1997 estimate...............................      35,334,000
    Committee recommendation in the bill....................      35,334,000
    Comparison with:
        Fiscal year 1996 appropriation......................      +1,095,000
        Fiscal year 1997 estimate...........................               0

        The Committee recommends a total of $35,334,000 for Family
    Housing, Defense-wide for fiscal year 1997. This is equal to
    the budget request for fiscal year 1997, and an increase of
    $1,095,000 above the appropriation for fiscal year 1996.

             Department of Defense Family Housing Improvement Fund

    Fiscal year 1996 appropriation..........................     $22,000,000
    Fiscal year 1997 estimate...............................      20,000,000
    Committee recommendation in the bill....................      35,000,000
    Comparison with:
        Fiscal year 1996 appropriation......................     +13,000,000
        Fiscal year 1997 estimate...........................     +15,000,000

        The Committee recommends a total of $35,000,000 for the
    Department of Defense Family Housing Improvement Fund for
    fiscal year 1997. This is an increase of $15,000,000 above the
    budget request for fiscal year 1997, and an increase of
    $13,000,000 above the appropriation for fiscal year 1996.

                                    Overview

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

                             Reporting Requirements

        In the future, budget justification documents are to
    display project and administrative costs.
        The Committee reiterates the reporting requirements
    contained in the enabling legislation. The Service Secretary
    concerned may not enter into any contract until after the end
    of the 21-day period beginning on the date the Secretary
    concerned submits written notice of the nature and terms of the
    contract to the appropriate committees of Congress.
        In addition, no transfer of appropriated funds into the
    account may take place until after the end of the 30-day period
    beginning on the date the Secretary of Defense submits written
    notice and justification for the transfer to the appropriate
    committees of Congress. The Appropriations Committee expects to
    receive prior notification of all such transfers of funds.

                      Homeowners Assistance Fund, Defense

    Fiscal year 1996 appropriation..........................     $75,586,000
    Fiscal year 1997 estimate...............................      36,181,000
    Committee recommendation in the bill....................      36,181,000
    Comparison with:
        Fiscal year 1996 appropriation......................     -39,405,000
        Fiscal year 1997 estimate...........................               0

        The Committee recommends the budget request of $36,181,000
    for the Homeowners Assistance Fund, Defense, a decrease of
    $39,405,000 from the fiscal year 1996 appropriation.
        The Homeowners Assistance Fund is a non-expiring revolving
    fund which finances a program for providing assistance to
    homeowners by reducing their losses incident to the disposal of
    their homes when military installations at or near where they
    are serving or employed are ordered to be closed or the scope
    of operations is reduced. The Fund was established in
    recognition of the fact that base closure and reduction actions
    can have serious economic effects on local communities. The
    Fund receives funding from several sources: appropriations,
    borrowing authority, reimbursable authority, prior fiscal year
    unobligated balances, revenue from sale of acquired properties,
    and recovery of prior year obligations.
        Recent base closure and realignment actions have had a
    significant impact on this account. The total estimated
    requirements for fiscal year 1997 are $163,400,000. Funding for
    this requirement will come from the following sources:
    appropriations in the amount of $36,181,000; estimated revenue
    of $127,219,000; and prior year carryover of $21,060,000.

                          Base Realignment and Closure

                                    Overview

        The Congress has appropriated, to date, $13,373,198,000 for
    the Base Realignment and Closure program since fiscal year
    1990. In the bill for fiscal year 1997, the Committee is
    recommending total funding of $2,507,474,000 under three
    accounts, as requested. These funds are necessary to ensure
    closure schedules can be met and anticipated savings will be
    realized. In addition, funding is essential for accelerated
    cleanup which is necessary for reuse of surplus properties and
    future job creation.
        The Committee, in appropriating such funds, has provided
    the Department with the flexibility to allocate funds by
    Service, by function and by base. The Committee, in recognizing
    the complexities of realigning and closing bases and providing
    for environmental restoration, has provided such flexibility to
    allow the Office of the Secretary of Defense to monitor the
    program execution of the Services and to redistribute
    unobligated balances as appropriate to avoid delays and to
    effect timely execution of realignment and closures along with
    environmental restoration.
        The following table displays the total amount appropriated
    for each round of base closure including amounts recommended
    for fiscal year 1997:

                                              BASE REALIGNMENT AND CLOSURE
                               [Total funding, fiscal year 1990 through fiscal year 1997]
    ----------------------------------------------------------------------------------------------------------------
                                           Fiscal year 1990
                                            through fiscal    Fiscal year 1996   Fiscal year 1997        Total
                                              year 1995            enacted         recommended
    ----------------------------------------------------------------------------------------------------------------
    Part I-.............................     $2,672,830,000                 NA                 NA     $2,672,830,000
    Part II \1\.........................     3,875,310,000-      $964,843,000-       $352,800,000      5,192,953,000
    Part III \2\........................      2,927,166,000      2,148,480,000        971,925,000      6,047,571,000
    Part IV.............................                 NA       784,569,000-     1,182,749,000-      1,967,318,000
                                         ---------------------------------------------------------------------------
          Total.........................      9,475,306,000      3,897,892,000      2,507,474,000     15,880,672,000
    ----------------------------------------------------------------------------------------------------------------
    \1\ Includes transfer of $133,000,000 from ``Homeowners Assistance Fund, Defense.''
    \2\ Includes: Rescission of $507,692,000 (P.L. 103-211); rescission of $32,000,000 (P.L. 104-6).

                           environmental restoration

        Since the start of the current process for Base Realignment
    and Closure, Military Construction Appropriations Acts have
    appropriated a total of $13,373,198,000 for the entire program
    for fiscal years 1990 through 1996. Within this total, the
    Department has allocated $3,307,800,000 for activities
    associated with environmental restoration.
        The Committee is concerned that the design and cost of
    environmental restoration efforts should be tailored to match
    the proposed re-use of an installation in order to assure that
    costs are reasonable and affordable. Therefore, the Committee
    continues to recommend statutory language to establish a
    ceiling on the level of funding for environmental restoration,
    unless the Secretary of Defense determines additional
    obligations are necessary and notifies the Committees on
    Appropriations of his determination and the necessary reasons
    for the increase.
        The following table displays the statutory ceiling
    established by the Committee and is equal to the Department's
    execution plan for fiscal year 1997.

    ------------------------------------------------------------------------
                                                               Ceiling on
                 Account-                 Total program      environmental
                                                           restoration costs
    ------------------------------------------------------------------------
    BRAC II-..........................      $352,800,000-      $223,789,000-
    BRAC III-.........................       971,925,000-        351,967,000
    BRAC IV-..........................     1,182,749,000-        200,841,000
                                       -------------------------------------
          Total.......................      2,507,474,000        776,597,000
    ------------------------------------------------------------------------

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

                             construction projects

        The Department of Defense has requested a total of
    $861,956,000 within the fiscal year 1997 budget request for
    base realignment and closure for construction projects funded
    under the Base Realignment and Closure Accounts, Parts II, III,
    and IV. The Committee recommends full funding for these
    important projects. The Committee finds it important that the
    Congress be advised of any programmatic changes and therefore
    continues the requirement that any change in a project shall be
    considered a change in a specifically authorized and
    appropriated project and all limitations and notification
    procedures shall apply to these construction projects in the
    same manner as within the ``Active and Reserve Component''
    accounts. The Committee provides approval and appropriated
    funds for the following construction projects as contained in
    Executive Summary of Justification Data submitted to Congress
    March 1996:

    ------------------------------------------------------------------------
                                                          BRAC      Amount
            Component/State/project description          round   (thousands)
    ------------------------------------------------------------------------
    Army BRAC III construction, fiscal year 1997:
        Texas:
            Fort Bliss:
                Unmanned Aerial Vehicle Hangar (46592)      III       $4,700
                                                                ------------
                    Subtotal Army Texas...............  .......        4,700
                                                                ============
                      Total for Army BRAC III
                       construction, fiscal year 1997:  .......        4,700
                                                                ============
    Army BRAC IV construction, fiscal year 1997:
        Alabama:
            Anniston Army Depot:
                EOD Operations Facility (34665).......       IV        1,700
                                                                ------------
                    Subtotal Army Alabama.............  .......        1,700
                                                                ============
        Arizona:
            Fort Huachuca:
                Building 61801 Renovation (46212).....       IV          400
                Warehouse (46235).....................       IV          800
                                                                ------------
                    Subtotal Army Arizona.............  .......        1,200
                                                                ============
        District of Columbia:
            Walter Reed Army Medical Center:
                Nurse Training Facility (46342).......       IV        1,500
                                                                ------------
                    Subtotal Army District of Columbia  .......        1,500
                                                                ============
        Maryland:
            Fort Detrick:
                Administrative Facility (46197).......       IV        6,800
                General Purpose Storage (46204).......       IV        1,150
                                                                ============
                    Subtotal Army Maryland............  .......        7,950
        Missouri:
            Fort Leonard Wood:
                Chemical Defense Training Facility
                 (45893)..............................       IV       28,000
                General Instruction Facility (46090)..       IV       58,000
                Applied Instruction Facility (46091)..       IV       32,000
                Unaccompanied Enlisted Housing (46092)       IV       58,000
                                                                ------------
                    Subtotal Army Missouri............  .......      176,000
                                                                ============
        New Jersey:
            Fort Monmouth:
                Administrative Facility (45981).......       IV        2,200
                                                                ------------
                    Subtotal Army New Jersey..........  .......        2,200
                                                                ============
        New York:
            Fort Totten:
                Storage Facility (46258)..............       IV        1,900
                                                                ------------
                    Subtotal Army New York............  .......        1,900
                                                                ============
        Oklahoma:
            McAlester Army Ammunition Plant:
                Universal Functional Test Range
                 (45911)..............................       IV        1,950
                General and Applied Instruction
                 Facility (45956).....................       IV        6,100
                Administrative Facility (45955).......       IV       14,200
                                                                ------------
                    Subtotal Army Oklahoma............  .......       22,250
                                                                ============
        South Carolina:
            Fort Jackson:
                DOD Polygraph Institute (45839).......       IV        4,600
                                                                ------------
                    Subtotal Army South Carolina......  .......        4,600
                                                                ============
        Virginia:
            Fort Belvoir:
                Administrative Facility (45858).......       IV        7,500
                                                                ------------
                    Subtotal Army Virginia............  .......        7,500
                                                                ============
        Washington:
            Fort Lewis:
                Center for Health Promotion (46056)...       IV        3,050
                                                                ------------
                    Subtotal Army Washington..........  .......        3,050
                                                                ============
        Various Locations:
            Planning and Design.......................       IV        9,790
                                                                ============
                Total for Army BRAC IV construction,
                 fiscal year 1997.....................  .......      239,640
                                                                ============
    Army BRAC IV family housing, fiscal year 1997:
        Missouri:
            Fort Leonard Wood:
                General Officer Quarters (38174)......  .......          430
                                                                ------------
                    Total for Army BRAC IV family
                     housing, fiscal year 1997........  .......          430
                                                                ============
    Navy BRAC III construction, fiscal year 1997:
        California:
            Fleet ASW Training Center, San Diego:
                Gymnasium (387T)......................      III        3,400
            Marine Corps Air Station, Camp Pendleton:
                Warehouse and Special Storage
                 Facilities (029T)....................      III        6,080
            Marine Corps Air Station, Miramar:
                Storage Facilities (007T).............      III        9,820
                Tactical Van Pad Facility (012T)......      III       15,500
                Bachelor Enlisted Quarters (013T).....      III       59,883
            Naval Air Station Lemoore:
                Administrative Office (186T)..........      III        1,500
                                                                ------------
                    Subtotal Navy California..........  .......       96,183
                                                                ============
        District of Columbia:
            Commandant Naval District, Washington:
                Headquarters Building Renovation
                 (001T)...............................      III        2,000
            Strategic Systems Programs Office,
             Washington:
                Building Renovation (001T)............      III       14,580
                                                                ------------
                    Subtotal Navy District of Columbia  .......       16,580
                                                                ============
        Florida:
            Army Reserve Center, Orlando:
                Facility Modifications (001T).........      III        2,683
            Naval Air Station, Jacksonville:
                Aviation Physiology Training (831T)...      III        2,270
                                                                ------------
                    Subtotal Navy Florida.............  .......        4,953
                                                                ============
        Georgia:
            Naval Air Station, Atlanta:
                Marine Reserve Training Facility
                 (906T)...............................      III        9,100
                                                                ------------
                    Subtotal Navy Georgia.............  .......        9,100
                                                                ============
        Hawaii:
            Marine Corps Air Station, Kaneohe Bay:
                Aircraft Parking Apron (268T).........      III       14,562
                Maintenance Hangar Alterations (270T).      III       31,400
                Building Renovations (271T)...........      III        2,500
                Building Additions and Renovations
                 (272T)...............................      III        1,300
                Aviation Supply Facilities (274T).....      III        2,700
                Training Facility (276T)..............      III        8,600
                Bachelor Quarters (286T)..............      III       26,900
                Helicopter Landing Pad (287T).........      III          400
                Hazardous Storehouse and Waste
                 Transfer Facility (288T).............      III        5,100
                Ordnance Facilities (297T)............      III        1,400
                Tactical Support Facility (297T)......      III       10,500
                Utilities Upgrade (504T)..............      III        5,100
                Ordnance Facilities (508T)............      III        2,100
                                                                ------------
                    Subtotal Navy Hawaii..............  .......      112,562
        Nevada:
            Naval Air Station, Fallon:
                Bachelor Enlisted Quarters (Phase II)
                 (308T)...............................      III        9,830
                                                                ------------
                    Subtotal Navy Nevada..............  .......        9,830
                                                                ============
        South Carolina:
            Marine Corps Air Station, Beaufort:
                Hangar Renovation (396T)..............      III        1,900
                                                                ------------
                    Subtotal Navy South Carolina......  .......        1,900
                                                                ============
        Tennessee:
            Naval Air Station, Memphis:
                Building Alterations (326T)...........      III       17,510
                Building Alterations (325T)...........      III        7,100
                                                                ------------
                    Subtotal Navy Tennessee...........  .......       24,610
                                                                ============
        Texas:
            Naval Air Station, Fort Worth:
                Child Development Center (121T).......      III        2,010
                                                                ------------
                    Subtotal Navy Texas...............  .......        2,010
                                                                ============
        Virginia:
            Naval Station, Norfolk:
                Administrative Facility (360T)........      III        1,000
            Naval Air Station, Oceana:
                Engine Maintenance Shop Addition
                 (457T)...............................      III          480
                                                                ------------
                    Subtotal Navy Virginia............  .......        1,480
                                                                ============
        Washington:
            Naval Air Station, Whidbey Island:
                Ground Support Equipment Shop (600T)..      III        2,700
                Sonobuoy Storage Facility (615T)......      III          600
                                                                ------------
                    Subtotal Navy Washington..........  .......        3,300
                                                                ============
        Midway Island:
            Naval Air Facility:
                Demolition (402T).....................      III        3,000
                                                                ------------
                    Subtotal Navy Midway Island.......  .......        3,000
                                                                ============
                    Total for Navy BRAC III
                     construction, fiscal year 1997...  .......      285,508
                                                                ============
    Navy BRAC III family housing, fiscal year 1997:
        Florida:
            Naval Air Station, Pensacola:
                Family Housing (406T).................      III        9,845
                                                                ------------
                    Subtotal Navy Florida.............  .......        9,845
                                                                ============
        Washington:
            Naval Submarine Base, Bangor:
                Family Housing (404T).................      III        4,672
                Family Housing (405T).................      III        6,454
                                                                ------------
                    Subtotal Navy Washington..........  .......       11,126
                                                                ============
                    Total for Navy BRAC III family
                     housing, fiscal year 1997........  .......       20,971
                                                                ============
    Navy BRAC IV Construction, fiscal year 1997:
        California:
            Naval Air Station, North Island:
                Maintenance Training Facility (829U)..       IV        3,780
            Naval Aviation Depot, North Island:
                Engineering Support Office
                 Modifications (832U).................       IV          844
                Engineering Support Offices (830U)....       IV          721
            Naval Weapon Station, Concord:
                Secure Warehouse (999U)...............       IV       15,400
                                                                ------------
                    Subtotal Navy California..........  .......       20,745
                                                                ============
        District of Columbia:
            Commandant, Naval District Washington:
                Parking Garage (104U).................       IV        8,900
                Logistics Support Facility (101U).....       IV        2,400
                Public Works Facility (102U)..........       IV        1,900
                                                                ------------
                    Subtotal Navy District of Columbia  .......       13,200
                                                                ============
        Florida:
            Naval Explosive Diving Unit, Panama City:
                Manned Diving Physiology (366U).......       IV        1,870
                                                                ------------
                    Subtotal Navy Florida.............  .......        1,870
                                                                ============
        Maryland:
            Naval Surface Warfare Center, Carderock:
                Materials Processing Facility (181U)..       IV        1,450
                Magnetic Fields Facility (182U).......       IV        6,400
                                                                ------------
                    Subtotal Navy Maryland............  .......        7,850
                                                                ============
        Pennsylvania:
            Naval Surface Warfare Center,
             Philadelphia:
                Advance Machine R&D Facility (184U)...       IV        5,400
                                                                ------------
                    Subtotal Navy Pennsylvania........  .......        5,400
                                                                ============
        South Carolina:
            Naval Weapon Station, Charleston:
                Medical/Dental Clinic Expansion (019U)       IV        3,464
                                                                ------------
                    Subtotal Navy South Carolina......  .......        3,464
                                                                ============
        Tennessee:
            Naval Air Station, Memphis:
                Building Modifications (328U).........       IV        4,744
                                                                ------------
                    Subtotal Navy Tennessee...........  .......        4,744
                                                                ============
        Virginia:
            Naval Air Station, Oceana:
                Flight Simulator Building Addition
                 (160U)...............................       IV        9,044
                Corrosion Control Hangar (576U).......       IV        4,800
                F/A 18 Aviation Maintenance Additions
                 (164U)...............................       IV        2,700
                Renovate/Addition Training Facility
                 (161U)...............................       IV        5,700
                                                                ------------
                    Subtotal Navy Virginia............  .......       22,244
                                                                ============
        Washington:
            Naval Shipyard, Puget Sound:
                Ship Maintenance Facilities (334U)....       IV        1,840
                                                                ------------
                    Subtotal Navy Washington..........  .......        1,840
                                                                ============
        Various Locations:
            Planning and design.......................  .......        9,700
                                                                ============
                    Total for Navy BRAC IV
                     construction, fiscal year 1997...  .......       91,057
                                                                ============
    Air Force BRAC II construction, fiscal year 1997:
        California:
            Beale AFB:
                Add/Alter Civil Engineering Facilities
                 (BAEY950204R1).......................       II          900
                Add/Alter Operations Facility
                 (BAEY950200R1).......................       II          460
                Alter Logistics Facilities
                 (BAEY950201R1).......................       II          520
                Add/Alter Support Facility
                 (BAEY939108).........................       II          300
            Vandenberg AFB:
                Campus Utilities (XUMU963007).........       II        2,900
                                                                ------------
                    Subtotal Air Force California.....  .......        5,080
                                                                ============
        Colorado:
            Buckley Air National Guard Base:
                Enlisted Dormitory (CRWU953050).......       II        8,150
                                                                ------------
                    Subtotal Air Force Colorado.......       II        8,150
                                                                ============
        Indiana:
            Grissom ARB:
                Munitions Storage (CTGC959019)........       II        1,500
                                                                ------------
                    Subtotal Air Force Indiana........  .......        1,500
                                                                ============
        Mississippi:
            Keesler AFB:
                Physical Fitness Center (MAHG913034)..       II          690
                                                                ------------
                    Subtotal Air Force Mississippi....       II          690
                                                                ============
        Ohio:
            Rickenbacker Air National Guard Base:
                Alter Base Maintenance Shops
                 (NLZG939686).........................       II        1,950
                Alter Support Shops (NLZG939687)......       II        2,000
                Alter Fuel System Maintenance Dock
                 (NLZG939700).........................       II        1,200
                Jet Fuel Storage/Distribution
                 (NLZG939729).........................       II        9,000
            Wright-Patterson AFB:
                National Airborne Operations Center
                 Complex (ZHTV943204).................       II        5,100
                                                                ------------
                    Subtotal Air Force Ohio...........  .......       19,250
                                                                ============
        Texas:
            Lackland AFB:
                Add/Alter Physical Fitness Center
                 (MPLS913337).........................       II        1,600
                Alter Technical Training Facility
                 (MPYJ953260).........................       II        2,250
            Sheppard AFB:
                Add to Chapel (VNVP933025)............       II          700
                                                                ------------
                    Subtotal Air Force Texas..........  .......        4,550
                                                                ============
        Various Locations:
            Planning and Design (BCL97RD4)............  .......          580
                                                                ============
                    Total for Air Force BRAC II
                     construction, fiscal year 1997...  .......       39,800
                                                                ============
    Air Force BRAC II family housing, fiscal year
     1997:
        Oklahoma:
            Altus AFB:
                Family Housing (AGGN954015)...........       II       22,973
                                                                ------------
                    Total for Air Force BRAC II family
                     housing, fiscal year 1997........  .......       22,973
                                                                ============
    Air Force BRAC III construction, fiscal year 1997:
        California:
            March AFB:
                Alter Combat Camera (PCZP960606)......      III        1,200
            Travis AFB:
                Upgrade Roads (XDAT953320)............      III        2,400
                                                                ------------
                    Subtotal Air Force California.....  .......        3,600
                                                                ============
        Idaho:
            Mountain Home AFB:
                Air Control Squad Complex (QYZH973020)      III        3,500
                                                                ------------
                    Subtotal Air Force Idaho..........  .......        3,500
                                                                ============
        New Jersey:
            McGuire AFB:
                Public Health Facility (PTFL943174)...      III        4,000
                Upgrade Roads (PTFL943167)............      III        3,000
                                                                ------------
                    Subtotal Air Force New Jersey.....  .......        7,000
                                                                ============
        New York:
            Griffiss AFB:
                Alter Support Facilities (JREZ940056).      III          750
                Alter Consolidated Logistics Facility
                 (JREZ940055).........................      III        2,550
                                                                ------------
                    Subtotal Air Force New York.......  .......        3,300
                                                                ============
                    Total for Air Force BRAC III
                     construction, fiscal year 1997...  .......       17,400
                                                                ============
    Air Force BRAC III family housing, fiscal year
     1997:
        New Jersey:
            McGuire AFB:
                Improve Family Housing (PTFL954000X)..      III       15,884
                                                                ------------
                    Total for Air Force BRAC III
                     Family Housing, fiscal year 1997.  .......       15,884
                                                                ============
    Air Force BRAC IV construction, fiscal year 1997:
        California:
            Edwards AFB:
                Add/Alter Avionics Research Laboratory
                 (FSPM973506).........................       IV          890
            March AFB:
                Add/Alter Communication/Electronic
                 Training Complex (PCZP959603)........       IV          640
                                                                ------------
                    Subtotal Air Force California.....  .......        1,530
                                                                ============
        Florida:
            MacDill AFB:
                Add/Alter Fuel Maintenance Facility
                 (NVZR973722).........................       IV        2,900
                Alter Squadron Operations Facility
                 (NVZR973718).........................       IV        2,500
                Alter Corrosion Control (NVZR973721)..       IV        5,000
                Alter Maintenance Facilities
                 (NVZR973723).........................       IV          800
            Patrick AFB:
                Pararescue Training Facility
                 (SXHT959002).........................       IV        2,650
                Maintenance Facilities (SXHT959011)...       IV          500
                Add/Alter Corrosion Control Facility
                 (SXHT959004).........................       IV        2,750
                                                                ------------
                    Subtotal Air Force Florida........  .......       17,100
                                                                ============
        Mississippi:
            Columbus AFB:
                 T-37 Aircraft Maintenance Hangar
                 (EEPZ973006).........................       IV        1,100
                                                                ------------
                    Subtotal Air Force Mississippi....  .......        1,100
                                                                ============
        New York:
            Fort Drum:
                Runway/Apron/Instrument Landing System
                 (WOXG959609).........................       IV       46,000
                                                                ------------
                    Subtotal Air Force New York.......  .......       46,000
                                                                ============
        Texas:
            Carswell Naval Air Station/Fort Worth
             Joint Reserve Base:
                Numbered Air Force Headquarters
                 (DDPF959004).........................       IV        4,300
                Security Police Training Facility
                 (DDPF959006).........................       IV          720
            Laughlin AFB:
                Add to Child Development Center
                 (MXDP973003R1).......................       IV          350
                                                                ------------
                    Subtotal Air Force Texas..........  .......        5,370
                                                                ============
        Various Locations:
            Planning and Design (BCL97RD4)............  .......        5,543
                                                                ============
                    Total for Air Force BRAC IV
                     construction, fiscal year 1997...  .......       76,643
                                                                ============
    Defense Logistics Agency BRAC III construction,
     fiscal year 1997:
        California:
            Defense Contract Management District West,
             El Segundo:
                Administrative Building...............      III        5,200
                                                                ------------
                    Subtotal DLA California...........  .......        5,200
                                                                ============
        Pennsylvania:
            Aviation Supply Office, Philadelphia:
                Convert Facilities for Defense
                 Personnel Support Center.............      III       31,950
                                                                ------------
                    Subtotal DLA Pennsylvania.........  .......       31,950
                                                                ============
        Various Locations:
            Planning and Design.......................  .......          500
                                                                ============
                    Total for DLA BRAC III
                     construction, fiscal year 1997...  .......       37,650
                                                                ============
    Defense Logistics Agency BRAC IV Construction,
     fiscal year 1997:
        California:
            Defense Distribution Region West, Tracy:
                Hazardous Material Storage Addition to
                 Warehouse 28.........................       IV        9,300
                                                                ------------
                    Total for DLA BRAC IV
                     construction, fiscal year 1997...  .......        9,300
    ------------------------------------------------------------------------

                      Base Realignment and Closure, Part I

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

                     Base Realignment and Closure, Part II

    Fiscal year 1996 appropriation..........................    $964,843,000
    Fiscal year 1997 estimate...............................     352,800,000
    Committee recommendation in the bill....................     352,800,000
    Comparison with:
        Fiscal year 1996 appropriation......................    -612,043,000
        Fiscal year 1997 estimate...........................               0

        The Committee recommends a total of $352,800,000 for Base
    Realignment and Closure, Part II for fiscal year 1997. This is
    equal to the budget request for fiscal year 1997 and a decrease
    of $612,043,000 below the amount appropriated for fiscal year
    1996. Below is the recommended distribution of funds as
    requested:

            Activity                                                  Amount
    Military Construction...................................     $39,800,000
    Family Housing..........................................      22,973,000
    Environmental...........................................     223,789,000
    Operations and Maintenance..............................      65,684,000
    Military Personnel (PCS)................................               0
    Other...................................................         554,000
    Revenues................................................               0
                        --------------------------------------------------------
                        ____________________________________________________
        Total...............................................     352,800,000

                     Base Realignment and Closure, Part III

    Fiscal year 1996 appropriation..........................  $2,148,480,000
    Fiscal year 1997 estimate...............................     971,925,000
    Committee recommendation in the bill....................     971,925,000
    Comparison with:
        Fiscal year 1996 appropriation......................  -1,176,555,000
        Fiscal year 1997 estimate...........................               0

        The Committee recommends a total of $971,925,000 for Base
    Realignment and Closure, Part III for fiscal year 1997. This is
    equal to the budget request for fiscal year 1997 and a decrease
    of $1,176,555,000 below the amount appropriated for fiscal year
    1996. Below is the recommended distribution of funds as
    requested:

            Activity                                                  Amount
    Military Construction...................................   $345,258,000
    Family Housing..........................................     36,855,000
    Environmental...........................................    351,967,000
    Operations and Maintenance..............................    425,350,000
    Military Personnel (PCS)................................     27,524,000
    Other...................................................     28,918,000
    Revenues................................................   (243,947,000)
                        --------------------------------------------------------
                        ____________________________________________________
        Total...............................................    971,925,000

                     Base Realignment and Closure, Part IV

    Fiscal year 1996 appropriation..........................    $784,569,000
    Fiscal year 1997 estimate...............................   1,182,749,000
    Committee recommendation in the bill....................   1,182,749,000
    Comparison with:
        Fiscal year 1996 appropriation......................    +398,180,000
        Fiscal year 1997 estimate...........................               0

        The Committee recommends a total of $1,182,749,000 for Base
    Realignment and Closure, Part IV for fiscal year 1997. This is
    equal to the budget request for fiscal year 1997 and an
    increase of $398,180,000 above the amount appropriated for
    fiscal year 1996. Below is the recommended distribution of
    funds as requested:

            Activity                                                  Amount
    Military Construction...................................    $416,640,000
    Family Housing..........................................       1,624,000
    Environmental...........................................     200,841,000
    Operations and Maintenance..............................     541,079,000
    Military Personnel (PCS)................................       3,581,000
    Other...................................................      18,984,000
    Revenues................................................               0
                        --------------------------------------------------------
                        ____________________________________________________
        Total...............................................   1,182,749,000

                               General Provisions

        The bill carries a number of routine General Provisions
    that have been included for several years.

                     Changes in Application of Existing Law

        Pursuant to clause 3 of rule XXI of the House of
    Representatives, the following statements are submitted
    describing the effect of provisions in the accompanying bill
    which directly or indirectly change the application of existing
    law.
        Language is included in various parts of the bill to
    continue on-going activities which require annual authorization
    or additional legislation, which to date has not been enacted.
        The bill includes a number of provisions which place
    limitations on the use of funds in the bill or change existing
    limitations and which might, under some circumstances, be
    construed as changing the application of existing law.
        The bill provides that appropriations shall remain
    available for more than one year for some programs for which
    the basic authority legislation does not presently authorize
    such extended availability.
        A provision of the ``Military Construction, Defense-wide''
    account which permits the Secretary of Defense to transfer
    funds to other accounts for military construction or family
    housing.
        A new account has been established, ``Department of Defense
    Military Unaccompanied Housing Improvement Fund'', for
    arrangements with private developers to provide affordable,
    timely housing for unaccompanied service members. A provision
    is included which permits the Secretary of Defense to transfer
    funds from other construction accounts.
        A provision of the ``Department of Defense Family Housing
    Improvement Fund'', which permits the Secretary of Defense to
    transfer funds from other family housing accounts.
        A provision of the ``Base Realignment and Closure Account,
    Part II'' states that not more than $223,789,000 of the funds
    appropriated shall be available solely for environmental
    restoration.
        A provision of the ``Base Realignment and Closure Account,
    Part III'' states that not more than $351,967,000 of the funds
    appropriated shall be available solely for environmental
    restoration.
        A provision of the ``Base Realignment and Closure Account,
    Part IV'' states that not more than $200,841,000 of the funds
    appropriated shall be available solely for environmental
    restoration.
        Section 101 of the General Provisions states that none of
    the funds appropriated in Military Construction Appropriations
    Acts shall be expended for payments under a cost-plus-a-fixed-
    fee contract for work, where cost estimates exceed $25,000, to
    be performed within the United States, except Alaska, without
    the specific approval in writing of the Secretary of Defense,
    except in the case of contracts for environmental restoration
    at base closure sites.
        Section 102 of the General Provisions permits use of funds
    for hire of passenger motor vehicles.
        Section 103 of the General Provisions permits use of funds
    for Defense Access Roads.
        Section 104 of the General Provisions prohibits
    construction of new bases inside the continental United States
    for which specific appropriations have not been made.
        Section 105 of the General Provisions limits the use of
    funds for purchase of land or land easements.
        Section 106 of the General Provisions prohibits the use of
    funds to acquire land, prepare a site, or install utilities for
    any family housing except housing for which funds have been
    made available.
        Section 107 of the General Provisions limits the use of
    minor construction funds to transfer or relocate activities
    among installations.
        Section 108 of the General Provisions prohibits the
    procurement of steel unless American producers, fabricators,
    and manufacturers have been allowed to compete.
        Section 109 of the General Provisions prohibits payment of
    real property taxes in foreign nations.
        Section 110 of the General Provisions prohibits
    construction of new bases overseas without prior notification.
        Section 111 of the General Provisions establishes a
    threshold for American preference of $500,000 relating to
    architect and engineer services in Japan, in any NATO member
    country, and in the Arabian Gulf.
        Section 112 of the General Provisions establishes
    preference for American contractors for military construction
    in the United States territories and possessions in the Pacific
    and on Kwajalein Atoll, or in the Arabian Gulf.
        Section 113 of the General Provisions requires the
    Secretary of Defense to give prior notice to Congress of
    military exercises involving construction in excess of
    $100,000.
        Section 114 of the General Provisions limits obligations
    during the last two months of the fiscal year.
        Section 115 of the General Provisions permits funds
    appropriated in prior years to be available for construction
    authorized during the current session of Congress.
        Section 116 of the General Provisions permits the use of
    expired or lapsed funds to pay the cost of supervision for any
    project being completed with lapsed funds.
        Section 117 of the General Provisions permits obligation of
    funds from more than one fiscal year to execute a construction
    project, provided that the total obligation for such project is
    consistent with the total amount appropriated for the project.
        Section 118 of the General Provisions allows expired funds
    to be transferred to the ``Foreign Currency Fluctuations,
    Construction, Defense'' account.
        Section 119 of the General Provisions directs the Secretary
    of Defense to report annually regarding the specific actions to
    be taken during the current fiscal year to encourage other
    member nations of the North Atlantic Treaty Organization,
    Japan, Korea, and United States allies in the Arabian Gulf to
    assume a greater share of the common defense burden.
        Section 120 of the General Provisions allows transfer of
    proceeds from ``Base Realignment and Closure Account, Part I''
    to the continuing Base Realignment and Closure accounts.
        Section 121 of the General Provisions prohibits expenditure
    of funds except in compliance with the Buy American Act.
        Section 122 of the General Provisions states the Sense of
    the Congress notifying recipients of equipment or products
    authorized to be purchased with financial assistance provided
    in this Act to purchase American-made equipment and products.
        Section 123 of the General Provisions permits the transfer
    of funds from the Base Realignment and Closure accounts to the
    ``Homeowners Assistance Fund, Defense.''
        The Committee recommends deleting the following General
    Provisions which were included in the fiscal year 1996 Military
    Construction Appropriations Act (P.L. 104-32):
        Section 124, regarding the Army's use of George AFB as the
    interim airhead for the National Training Center at Fort Irwin
    until Barstow-Daggett reaches Initial Operational Capability as
    the permanent airhead.
        Section 125, regarding the Army's conveyance of remaining
    surplus property at the former Fort Sheridan to the Fort
    Sheridan Joint Planning Committee or its successor, for fair
    market value.

                      Compliance With Rule XIII--Clause 3

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

                      Appropriations Not Authorized by Law

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

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

        The Committee notes that authorization for appropriations
    in this bill is contained in H.R. 3230, which passed the House
    on May 15, 1996. It is anticipated the authorization will be
    enacted into law later this year.

                               Transfer of Funds

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

                              Rescission of Funds

        In compliance with clause 1(b) of rule X of the House of
    Representatives, the Committee reports that it recommends
    rescissions in the amount of $12,000,000 under ``Military
    Construction, Navy.''

                         Inflationary Impact Statement

        Pursuant to clause 2(l)(4) of rule XI of the House of
    Representatives, the Committee estimates that enactment of this
    bill would have no overall inflationary impact on prices and
    costs in the operation of the national economy.

                       Comparisons with Budget Resolution

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

    ----------------------------------------------------------------------------------------------------------------
                                                    602(b) Allocation                         This bill
                                         ---------------------------------------------------------------------------
                                           Budget authority       Outlays        Budget authority       Outlays
    ----------------------------------------------------------------------------------------------------------------
    Discretionary.......................            $10,033            $10,430            $10,032            $10,429
    Mandatory...........................                  0                  0                  0                  0
    ----------------------------------------------------------------------------------------------------------------

                           Advance Spending Authority

        This bill provides no advance spending authority.

                        Five-Year Projection of Outlays

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

                            [In thousands of dollars]

    Budget authority, fiscal year 1997......................     $10,032,000
    Outlays:
        1997................................................       3,225,000
        1998................................................       3,209,000
        1999................................................       1,933,000
        2000................................................         980,000
        2001 and beyond.....................................         685,000

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

              Financial Assistance to State and Local Governments

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

                            [In millions of dollars]

    New budget authority....................................               0
    Fiscal year 1997 outlays resulting therefrom............               0

                                   State List

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

        <GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT>