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Military

                                  75 718                                 
                            107 th Congress                             
                                 Report                                 
                                                                             
                        HOUSE OF REPRESENTATIVES                        
                              1st Session                               
                                107 246                                 
              MAKING APPROPRIATIONS FOR MILITARY CONSTRUCTION, FAMILY HOUSING, 
       AND BASE REALIGNMENT AND CLOSURE FOR THE DEPARTMENT OF DEFENSE FOR THE  
       FISCAL YEAR ENDING SEPTEMBER 30, 2002, AND FOR OTHER PURPOSES           
 OCTOBER  16, 2001.--Ordered to be printed                               
 Mr.  Hobson , from the Committee of Conference, submitted the following 
 CONFERENCE REPORT                                                       
 [To accompany H.R. 2904]                                                
       The committee of conference on the disagreeing votes of the two     
   Houses on the amendment of the Senate to the bill (H.R. 2904) ``making  
   appropriations for military construction, family housing, and base      
   realignment and closure for the Department of Defense for the fiscal    
   year ending September 30, 2002, and for other purposes,'' having met,   
   after full and free conference, have agreed to recommend and do         
   recommend to their respective Houses as follows:                        
       That the House recede from its disagreement to the amendment of the 
   Senate, and agree to the same with an amendment, as follows:            
    In lieu of the matter stricken and inserted by said amendment, insert: 
    That the following sums are appropriated, out of any money in the     
  Treasury not otherwise appropriated for military construction, family   
  housing, and base realignment and closure functions administered by the 
  Department of Defense, for the fiscal year ending September 30, 2002,   
  and for other purposes, namely:                                         
                                MILITARY CONSTRUCTION, ARMY                       
                          (including rescission)                         
     For acquisition, construction, installation, and equipment of        
  temporary or permanent public works, military installations, facilities,
  and real property for the Army as currently authorized by law, including
  personnel in the Army Corps of Engineers and other personal services    
  necessary for the purposes of this appropriation, and for construction  
  and operation of facilities in support of the functions of the Commander
  in Chief, $1,778,256,000, to remain available until September 30, 2006: 
  Provided, That of this amount, not to exceed $163,198,000 shall be      
  available for study, planning, design, architect and engineer services, 
  and host nation support, as authorized by law, unless the Secretary of  
  Defense determines that additional obligations are necessary for such   
  purposes and notifies the Committees on Appropriations of both Houses of
  Congress of his determination and the reasons therefor: Provided        
  further, That of the funds appropriated for ``Military Construction,    
  Army'' under Public Law 106 52, $36,400,000 are rescinded.              
                                MILITARY CONSTRUCTION, NAVY                       
                          (including rescission)                         
     For acquisition, construction, installation, and equipment of        
  temporary or permanent public works, naval installations, facilities,   
  and real property for the Navy as currently authorized by law, including
  personnel in the Naval Facilities Engineering Command and other personal
  services necessary for the purposes of this appropriation,              
  $1,144,221,000, to remain available until September 30, 2006: Provided, 
  That of this amount, not to exceed $34,152,000 shall be available for   
  study, planning, design, architect and engineer services, as authorized 
  by law, unless the Secretary of Defense determines that additional      
  obligations are necessary for such purposes and notifies the Committees 
  on Appropriations of both Houses of Congress of his determination and   
  the reasons therefor: Provided further, That of the funds appropriated  
  for ``Military Construction, Navy'' under Public Law 106 246,           
  $19,588,000 are rescinded.                                              
                              MILITARY CONSTRUCTION, AIR FORCE                    
                          (including rescission)                         
     For acquisition, construction, installation, and equipment of        
  temporary or permanent public works, military installations, facilities,
  and real property for the Air Force as currently authorized by law,     
  $1,194,880,000, to remain available until September 30, 2006: Provided, 
  That of this amount, not to exceed $83,210,000 shall be available for   
  study, planning, design, architect and engineer services, as authorized 
  by law, unless the Secretary of Defense determines that additional      
  obligations are necessary for such purposes and notifies the Committees 
  on Appropriations of both Houses of Congress of his determination and   
  the reasons therefor: Provided further, That of the funds appropriated  
  for ``Military Construction, Air Force'' under previous Military        
  Construction Appropriations Acts, $4,000,000 are rescinded.             
                            MILITARY CONSTRUCTION, DEFENSE-WIDE                   
              (including transfer and rescissions of funds)              
     For acquisition, construction, installation, and equipment of        
  temporary or permanent public works, installations, facilities, and real
  property for activities and agencies of the Department of Defense (other
  than the military departments), as currently authorized by law,         
  $840,558,000, to remain available until September 30, 2006: Provided,   
  That such amounts of this appropriation as may be determined by the     
  Secretary of Defense may be transferred to such appropriations of the   
  Department of Defense available for military construction or family     
  housing as he may designate, to be merged with and to be available for  
  the same purposes, and for the same time period, as the appropriation or
  fund to which transferred: Provided further, That of the amount         
  appropriated, not to exceed $66,496,000 shall be available for study,   
  planning, design, architect and engineer services, as authorized by     
                    law, unless the Secretary of Defense determines that          
          additional obligations are necessary for such purposes and notifies the 
          Committees on Appropriations of both Houses of Congress of his          
          determination and the reasons therefor: Provided further, That of the   
          funds appropriated for ``Military Construction, Defense-wide'' under    
          Public Law 106 246, $65,280,000 are rescinded: Provided further, That of
          the funds appropriated for ``Military Construction, Defense-wide'' under
          previous Military Construction Appropriations Acts, $4,000,000 are      
          rescinded.                                                              
                         MILITARY CONSTRUCTION, ARMY NATIONAL GUARD               
     For construction, acquisition, expansion, rehabilitation, and        
  conversion of facilities for the training and administration of the Army
  National Guard, and contributions therefor, as authorized by chapter    
  1803 of title 10, United States Code, and Military Construction         
  Authorization Acts, $405,565,000, to remain available until September   
  30, 2006.                                                               
                         MILITARY CONSTRUCTION, AIR NATIONAL GUARD                
     For construction, acquisition, expansion, rehabilitation, and        
  conversion of facilities for the training and administration of the Air 
  National Guard, and contributions therefor, as authorized by chapter    
  1803 of title 10, United States Code, and Military Construction         
  Authorization Acts, $253,386,000, to remain available until September   
  30, 2006.                                                               
                            MILITARY CONSTRUCTION, ARMY RESERVE                   
     For construction, acquisition, expansion, rehabilitation, and        
  conversion of facilities for the training and administration of the Army
  Reserve as authorized by chapter 1803 of title 10, United States Code,  
  and Military Construction Authorization Acts, $167,019,000, to remain   
  available until September 30, 2006.                                     
                            MILITARY CONSTRUCTION, NAVAL RESERVE                  
                          (including rescission)                         
     For construction, acquisition, expansion, rehabilitation, and        
  conversion of facilities for the training and administration of the     
  reserve components of the Navy and Marine Corps as authorized by chapter
  1803 of title 10, United States Code, and Military Construction         
  Authorization Acts, $53,201,000, to remain available until September 30,
  2006: Provided, That of the funds appropriated for ``Military           
  Construction, Naval Reserve'' under Public Law 106 246, $925,000 are    
  rescinded.                                                              
                          MILITARY CONSTRUCTION, AIR FORCE RESERVE                
     For construction, acquisition, expansion, rehabilitation, and        
  conversion of facilities for the training and administration of the Air 
  Force Reserve as authorized by chapter 1803 of title 10, United States  
  Code, and Military Construction Authorization Acts, $74,857,000, to     
  remain available until September 30, 2006.                              
               NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT PROGRAM     
     For the United States share of the cost of the North Atlantic Treaty 
  Organization Security Investment Program for the acquisition and        
  construction of military facilities and installations (including        
  international military headquarters) and for related expenses for the   
  collective defense of the North Atlantic Treaty Area as authorized in   
  Military Construction Authorization Acts and section 2806 of title 10,  
  United States Code, $162,600,000, to remain available until expended.   
                             FAMILY HOUSING CONSTRUCTION, ARMY                    
     For expenses of family housing for the Army for construction,        
  including acquisition, replacement, addition, expansion, extension and  
  alteration, as authorized by law, $312,742,000, to remain available     
  until September 30, 2006.                                               
                       FAMILY HOUSING OPERATION AND MAINTENANCE, ARMY             
     For expenses of family housing for the Army for operation and        
  maintenance, including debt payment, leasing, minor construction,       
  principal and interest charges, and insurance premiums, as authorized by
  law, $1,089,573,000.                                                    
                     FAMILY HOUSING CONSTRUCTION, NAVY AND MARINE CORPS           
     For expenses of family housing for the Navy and Marine Corps for     
  construction, including acquisition, replacement, addition, expansion,  
  extension and alteration, as authorized by law, $331,780,000, to remain 
  available until September 30, 2006.                                     
              FAMILY HOUSING OPERATION AND MAINTENANCE, NAVY AND MARINE CORPS     
     For expenses of family housing for the Navy and Marine Corps for     
  operation and maintenance, including debt payment, leasing, minor       
  construction, principal and interest charges, and insurance premiums, as
  authorized by law, $910,095,000.                                        
                           FAMILY HOUSING CONSTRUCTION, AIR FORCE                 
     For expenses of family housing for the Air Force for construction,   
  including acquisition, replacement, addition, expansion, extension and  
  alteration, as authorized by law, $550,703,000, to remain available     
  until September 30, 2006.                                               
                    FAMILY HOUSING OPERATION AND MAINTENANCE, AIR FORCE           
     For expenses of family housing for the Air Force for operation and   
  maintenance, including debt payment, leasing, minor construction,       
  principal and interest charges, and insurance premiums, as authorized by
  law, $844,715,000.                                                      
                                FAMILY HOUSING, DEFENSE-WIDE                      
     For expenses of family housing for the activities and agencies of the
  Department of Defense (other than the military departments) for         
  construction, including acquisition, replacement, addition, expansion,  
  extension and alteration, and for operation and maintenance, leasing,   
  and minor construction, as authorized by law, as follows: for           
  Construction, $250,000 to remain available until September 30, 2006; for
  Operation and Maintenance, $43,762,000; in all $44,012,000.             
                   DEPARTMENT OF DEFENSE FAMILY HOUSING IMPROVEMENT FUND          
     For the Department of Defense Family Housing Improvement Fund,       
  $2,000,000, to remain available until expended, for family housing      
  initiatives undertaken pursuant to section 2883 of title 10, United     
  States Code, providing alternative means of acquiring and improving     
  military family housing, and supporting facilities.                     
                            HOMEOWNERS ASSISTANCE FUND, DEFENSE                   
     For the Homeowners Assistance Fund established by section 1013 of the
  Demonstration Cities and Metropolitan Development Act of 1966, as       
  amended (42 U.S.C. 3374) $10,119,000, to remain available until         
  expended.                                                               
                            BASE REALIGNMENT AND CLOSURE ACCOUNT                  
     For deposit into the Department of Defense Base Closure Account 1990 
  established by section 2906(a)(1) of the Department of Defense          
  Authorization Act, 1991 (Public Law 101 510), $632,713,000, to remain   
  available until expended.                                               
                                     GENERAL PROVISIONS                           
     Sec. 101. None of the funds appropriated in Military Construction    
  Appropriations Acts shall be expended for payments under a              
  cost-plus-a-fixed-fee contract for construction, 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    
  setting forth the reasons therefor.                                     
     Sec. 102. Funds appropriated to the Department of Defense for        
  construction shall be available for hire of passenger motor vehicles.   
     Sec. 103. Funds appropriated to the Department of Defense for        
  construction may be used for advances to the Federal Highway            
  Administration, Department of Transportation, for the construction of   
  access roads as authorized by section 210 of title 23, United States    
  Code, when projects authorized therein are certified as important to the
  national defense by the Secretary of Defense.                           
     Sec. 104. None of the funds appropriated in this Act may be used to  
  begin construction of new bases inside the continental United States for
  which specific appropriations have not been made.                       
     Sec. 105. No part of the funds provided in Military Construction     
  Appropriations Acts shall be used for purchase of land or land easements
  in excess of 100 percent of the value as determined by the Army Corps of
  Engineers or the Naval Facilities Engineering Command, except: (1) where
  there is a determination of value by a Federal court; (2) purchases     
  negotiated by the Attorney General or his designee; (3) where the       
  estimated value is less than $25,000; or (4) as otherwise determined by 
  the Secretary of Defense to be in the public interest.                  
     Sec. 106. None of the funds appropriated in Military Construction    
  Appropriations Acts shall be used to: (1) acquire land; (2) provide for 
  site preparation; or (3) install utilities for any family housing,      
  except housing for which funds have been made available in annual       
  Military Construction Appropriations Acts.                              
     Sec. 107. None of the funds appropriated in Military Construction    
  Appropriations Acts for minor construction may be used to transfer or   
  relocate any activity from one base or installation to another, without 
  prior notification to the Committees on Appropriations.                 
     Sec. 108. No part of the funds appropriated in Military Construction 
  Appropriations Acts may be used for the procurement of steel for any    
  construction project or activity for which American steel producers,    
  fabricators, and manufacturers have been denied the opportunity to      
  compete for such steel procurement.                                     
     Sec. 109. None of the funds available to the Department of Defense   
  for military construction or family housing during the current fiscal   
  year may be used to pay real property taxes in any foreign nation.      
     Sec. 110. None of the funds appropriated in Military Construction    
  Appropriations Acts may be used to initiate a new installation overseas 
  without prior notification to the Committees on Appropriations.         
     Sec. 111. None of the funds appropriated in Military Construction    
  Appropriations Acts may be obligated for architect and engineer         
  contracts estimated by the Government to exceed $500,000 for projects to
  be accomplished in Japan, in any NATO member country, or in countries   
  bordering the Arabian Sea, unless such contracts are awarded to United  
  States firms or United States firms in joint venture with host nation   
  firms.                                                                  
     Sec. 112. None of the funds appropriated in Military Construction    
  Appropriations Acts for military construction in the United States      
  territories and possessions in the Pacific and on Kwajalein Atoll, or in
  countries bordering the Arabian Sea, may be used to award any contract  
  estimated by the Government to exceed $1,000,000 to a foreign           
  contractor: Provided, That this section shall not be applicable to      
  contract awards for which the lowest responsive and responsible bid of a
  United States contractor exceeds the lowest responsive and responsible  
  bid of a foreign contractor by greater than 20 percent: Provided        
  further, That this section shall not apply to contract awards for       
  military construction on Kwajalein Atoll for which the lowest responsive
  and responsible bid is submitted by a Marshallese contractor.           
     Sec. 113. The Secretary of Defense is to inform the appropriate      
  committees of Congress, including the Committees on Appropriations, of  
  the plans and scope of any proposed military exercise involving United  
  States personnel 30 days prior to its occurring, if amounts expended for
  construction, either temporary or permanent, are anticipated to exceed  
  $100,000.                                                               
     Sec. 114. Not more than 20 percent of the appropriations in Military 
  Construction Appropriations Acts which are limited for obligation during
  the current fiscal year shall be obligated during the last 2 months of  
  the fiscal year.                                                        
                           (transfer of funds)                           
     Sec. 115. Funds appropriated to the Department of Defense for        
  construction in prior years shall be available for construction         
  authorized for each such military department by the authorizations      
  enacted into law during the current session of Congress.                
     Sec. 116. For military construction or family housing projects that  
  are being completed with funds otherwise expired or lapsed for          
  obligation, expired or lapsed funds may be used to pay the cost of      
  associated supervision, inspection, overhead, engineering and design on 
  those projects and on subsequent claims, if any.                        
     Sec. 117. Notwithstanding any other provision of law, any funds      
  appropriated to a military department or defense agency for the         
  construction of military projects may be obligated for a military       
  construction project or contract, or for any portion of such a project  
  or contract, at any time before the end of the fourth fiscal year after 
  the fiscal year for which funds for such project were appropriated if   
  the funds obligated for such project: (1) are obligated from funds      
  available for military construction projects; and (2) do not exceed the 
  amount appropriated for such project, plus any amount by which the cost 
  of such project is increased pursuant to law.                           
                           (transfer of funds)                           
     Sec. 118. During the 5-year period after appropriations available to 
  the Department of Defense for military construction and family housing  
  operation and maintenance and construction have expired for obligation, 
  upon a determination that such appropriations will not be necessary for 
  the liquidation of obligations or for making authorized adjustments to  
  such appropriations for obligations incurred during the period of       
  availability of such appropriations, unobligated balances of such       
  appropriations may be transferred into the appropriation ``Foreign      
  Currency Fluctuations, Construction, Defense'' to be merged with and to 
  be available for the same time period and for the same purposes as the  
  appropriation to which transferred.                                     
     Sec. 119. The Secretary of Defense is to provide the Committees on   
  Appropriations of the Senate and the House of Representatives with an   
  annual report by February 15, containing details of the specific actions
  proposed to be taken by the Department of Defense during the current    
  fiscal year to encourage other member nations of the North Atlantic     
  Treaty Organization, Japan, Korea, and United States allies bordering   
  the Arabian Sea to assume a greater share of the common defense burden  
  of such nations and the United States.                                  
                           (transfer of funds)                           
     Sec. 120. During the current fiscal year, in addition to any other   
  transfer authority available to the Department of Defense, proceeds     
  deposited to the Department of Defense Base Closure Account established 
  by section 207(a)(1) of the Defense Authorization Amendments and Base   
  Closure and Realignment Act (Public Law 100 526) pursuant to section    
  207(a)(2)(C) of such Act, may be transferred to the account established 
  by section 2906(a)(1) of the Department of Defense Authorization Act,   
  1991, to be merged with, and to be available for the same purposes and  
  the same time period as that account.                                   
     Sec. 121. (a) No funds appropriated pursuant to this Act may be      
  expended by an entity unless the entity agrees that in expending the    
  assistance the entity will comply with sections 2 through 4 of the Act  
  of March 3, 1933 (41 U.S.C. 10a 10c, popularly known as the ``Buy       
  American Act'').                                                        
     (b) No funds made available under this Act shall be made available to
  any person or entity who has been convicted of violating the Act of     
  March 3, 1933 (41 U.S.C. 10a 10c, popularly known as the ``Buy American 
  Act'').                                                                 
     Sec. 122. (a) In the case of any equipment or products that may be   
  authorized to be purchased with financial assistance provided under this
  Act, it is the sense of the Congress that entities receiving such       
  assistance should, in expending the assistance, purchase only           
  American-made equipment and products.                                   
     (b) In providing financial assistance under this Act, the Secretary  
  of the Treasury shall provide to each recipient of the assistance a     
  notice describing the statement made in subsection (a) by the Congress. 
                           (transfer of funds)                           
     Sec. 123. Subject to 30 days prior notification to the Committees on 
  Appropriations, such additional amounts as may be determined by the     
  Secretary of Defense may be transferred to the Department of Defense    
  Family Housing Improvement Fund from amounts appropriated for           
  construction in ``Family Housing'' accounts, to be merged with and to be
  available for the same purposes and for the same period of time as      
  amounts appropriated directly to the Fund: Provided, That appropriations
  made available to the Fund shall be available to cover the costs, as    
  defined in section 502(5) of the Congressional Budget Act of 1974, of   
  direct loans or loan guarantees issued by the Department of Defense     
  pursuant to the provisions of subchapter IV of chapter 169, title 10,   
  United States Code, pertaining to alternative means of acquiring and    
  improving military family housing and supporting facilities.            
     Sec. 124. None of the funds appropriated or made available by this   
  Act may be obligated for Partnership for Peace Programs in the New      
  Independent States of the former Soviet Union.                          
     Sec. 125. (a) Not later than 60 days before issuing any solicitation 
  for a contract with the private sector for military family housing the  
  Secretary of the military department concerned shall submit to the      
  congressional defense committees the notice described in subsection (b).
     (b)(1) A notice referred to in subsection (a) is a notice of any     
  guarantee (including the making of mortgage or rental payments) proposed
  to be made by the Secretary to the private party under the contract     
  involved in the event of--                                              
       (A) the closure or realignment of the installation for which housing
   is provided under the contract;                                         
     (B) a reduction in force of units stationed at such installation; or  
       (C) the extended deployment overseas of units stationed at such     
   installation.                                                           
     (2) Each notice under this subsection shall specify the nature of the
  guarantee involved and assess the extent and likelihood, if any, of the 
  liability of the Federal Government with respect to the guarantee.      
     (c) In this section, the term ``congressional defense committees''   
  means the following:                                                    
       (1) The Committee on Armed Services and the Military Construction   
   Subcommittee, Committee on Appropriations of the Senate.                
       (2) The Committee on Armed Services and the Military Construction   
   Subcommittee, Committee on Appropriations of the House of               
   Representatives.                                                        
                           (transfer of funds)                           
     Sec. 126. During the current fiscal year, in addition to any other   
  transfer authority available to the Department of Defense, amounts may  
  be transferred from the account established by section 2906(a)(1) of the
  Department of Defense Authorization Act, 1991, to the fund established  
  by section 1013(d) of the Demonstration Cities and Metropolitan         
  Development Act of 1966 (42 U.S.C. 3374) to pay for expenses associated 
  with the Homeowners Assistance Program. Any amounts transferred shall be
  merged with and be available for the same purposes and for the same time
  period as the fund to which transferred.                                
     Sec. 127. Notwithstanding this or any other provision of law, funds  
  appropriated in Military Construction Appropriations Acts for operations
  and maintenance of family housing shall be the exclusive source of funds
  for repair and maintenance of all family housing units, including       
  general or flag officer quarters: Provided, That not more than $35,000  
  per unit may be spent annually for the maintenance and repair of any    
  general or flag officer quarters without 30 days advance prior          
  notification to the appropriate committees of Congress: Provided        
  further, That the Under Secretary of Defense (Comptroller) is to report 
  annually to the Committees on Appropriations all operations and         
  maintenance expenditures for each individual general or flag officer    
  quarters for the prior fiscal year.                                     
     Sec. 128. In addition to the amounts provided in Public Law 107 20,  
  of the funds appropriated under the heading ``Military Construction, Air
  Force'' in this Act, $8,000,000 is to remain available until September  
  30, 2005: Provided, That notwithstanding any other provision of law,    
  such funds may be obligated or expended to carry out planning and design
  and military construction activities at the Masirah Island Airfield in  
  Oman, not otherwise authorized by law.                                  
     Sec. 129. Not later than 90 days after the enactment of this Act, the
  Secretary of Defense shall submit to the congressional defense          
  committees a master plan for the environmental remediation of Hunters   
  Point Naval Shipyard, California. The plan shall identify an aggregate  
  cost estimate for the entire project as well as cost estimates for      
  individual parcels. The plan shall also include a detailed cleanup      
  schedule and an analysis of whether the Department is meeting legal     
  requirements and community commitments. Following submission of the     
  initial report, the Department shall submit semi-annual progress reports
  to the congressional defense committees.                                
                          (rescission of funds)                          
     Sec. 130. Of the funds available to the Secretary of Defense in the  
  ``Foreign Currency Fluctuations, Construction, Defense'' account,       
  $60,000,000 are rescinded.                                              
     Sec. 131. (a) Requests for Funds for Environmental Restoration at    
  BRAC Sites in Future Fiscal Years.--In the budget justification         
  materials submitted to Congress in support of the Department of Defense 
  budget for any fiscal year after fiscal year 2002, the amount requested 
  for environmental restoration, waste management, and environmental      
  compliance activities in such fiscal year with respect to military      
  installations approved for closure or realignment under the base closure
  laws shall accurately reflect the anticipated cost of such activities in
  such fiscal year.                                                       
     (b) Base Closure Laws Defined.--In this section, the term ``base     
  closure laws'' means the following:                                     
     (1) Section 2687 of title 10, United States Code.                     
       (2) The Defense Base Closure and Realignment Act of 1990 (part A of 
   title XXIX of Public Law 101 510; 10 U.S.C. 2687 note).                 
       (3) Title II of the Defense Authorization Amendments and Base       
   Closure and Realignment Act (Public Law 100 526; 10 U.S.C. 2687 note).  
     Sec. 132. (a) The total of the amounts appropriated by the other     
  provisions of this Act, other than the amounts appropriated for the     
  accounts specified in subsection (c), is hereby reduced by 1.127        
  percent.                                                                
     (b) The total amount of the reduction computed under subsection (a)  
  shall be allocated proportionally among all of the budget activities,   
  activity groups, and subactivity groups and among all of the accounts   
  and all of the programs, projects, and activities within each account,  
  except for the accounts specified in subsection (c).                    
     (c) No reduction shall be allocated under this section to the Base   
  Realignment and Closure Account, or to the North Atlantic Treaty        
  Organization Security Investment Program.                               
     This Act may be cited as the ``Military Construction Appropriations  
  Act, 2002''.                                                            
    And the Senate agree to the same.                                     
     David L. Hobson,                                                       
     James T. Walsh,                                                        
     Dan Miller,                                                            
     Robert B. Aderholt,                                                    
     Kay Granger,                                                           
     Virgil Goode,  Jr.,                                                    
     Joe Skeen,                                                             
     David Vitter,                                                          
     Bill Young,                                                            
     John W. Olver,                                                         
     Chet Edwards,                                                          
     Sam Farr,                                                              
     Allen Boyd,                                                            
     Norman Dicks,                                                          
     David Obey,                                                            
        Managers on the Part of the House.                                      
     Dianne Feinstein,                                                      
     Daniel K. Inouye,                                                      
     Tim Johnson,                                                           
     Mary Landrieu,                                                         
     Harry Reid,                                                            
     Robert C. Byrd,                                                        
     Kay Bailey Hutchison,                                                  
     Conrad Burns,                                                          
     Larry E. Craig                                                         
     Mike DeWine,                                                           
     Ted Stevens,                                                           
        Managers on the Part of the Senate.                                     
                 JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE       
       The managers on the part of the House and the Senate at the         
   conference on the disagreeing votes of the two Houses on the amendment  
   of the Senate to the bill (H.R. 2904) making appropriations for the     
   Department of Defense for the fiscal year ending September 30, 2002, and
   for other purposes, submit the following joint statement to the House of
   Representatives and the Senate in explanation of the effect of the      
   action agreed upon by the managers and recommended in the accompanying  
   conference report.                                                      
       The Senate deleted the entire House bill after the enacting clause  
   and inserted the Senate bill (S. 1460). The conference agreement        
   includes a revised bill.                                                
                                 ITEMS OF GENERAL INTEREST                        
       Matters Addressed by Only One Committee. --The language and         
   allocations set forth in House Report 107 207 and Senate Report 107 68  
   should be complied with unless specifically addressed to the contrary in
   the conference report and statement of the managers. Report language    
   included by the House which is not changed by the report of the Senate  
   or the conference, and Senate report language which is not changed by   
   the conference is approved by the committee of conference. The statement
   of the managers, while repeating some report language for emphasis, does
   not intend to negate the language referred to above unless expressly    
   provided herein. In cases in which the House or the Senate have directed
   the submission of a report from the Department of Defense, such report  
   is to be submitted to both House and Senate Committees on               
   Appropriations.                                                         
       Financial Management. --The conferees agree that the rescission of  
   funds and general reductions included in the conference agreement are   
   based on prior year unobligated balances and such factors as savings    
   through favorable bids, reduced overhead costs, downsizing or           
   cancellation due to force structure changes (if any), other             
   administrative cost reduction initiatives, revised economic assumptions,
   and inflation re-estimates. The conferees direct that no project for    
   which funds were previously appropriated, or for which funds are        
   appropriated in this bill, may be canceled as a result of the reductions
   included in the conference agreement.                                   
       Foreign Currency Fluctuations, Construction, Defense. --The amounts 
   available in the ``Foreign Currency Fluctuations, Construction,         
   Defense'' account exceed those necessary to eliminate losses due to     
   unfavorable fluctuations in foreign currency exchange rates.            
   Accordingly, the conferees include a provision (Section 130) which      
   rescinds $60,000,000 from this account.                                 
       Sustainment, Restoration, and Modernization: Reporting Requirement. 
   --The conferees agree to the following general rules for repairing a    
   facility under operation and maintenance funding:                       
       Components of the facility may be repaired by replacement, and such 
   replacement can be up to current standards or code.                     
       Interior arrangements and restorations may be included as repair,   
   but additions, new facilities, and functional conversions must be       
   performed as military construction projects.                            
       Such projects may be done concurrent with repair projects, as long  
   as the final conjunctively funded project is a complete and usable      
   facility.                                                               
       The appropriate Service Secretary shall notify the appropriate      
   Committees 21 days prior to carrying out any repair project with an     
   estimated cost in excess of $7,500,000.                                 
       The Department is directed to provide sustainment, restoration, and 
   modernization backlog at all installations for which there is a         
   requested construction project in future budget requests. This          
   information is to be provided on the form 1390. In addition, for all    
   troop housing requests, the form 1391 is to show all sustainment,       
   restoration, and modernization conducted in the past two years and      
   future requirements for unaccompanied housing at the installation.      
       Family Housing Operation and Maintenance: Financial Management.     
   --The conferees agree to continue the restriction on the transfer of    
   funds between the family housing operation and maintenance accounts. The
   limitation is ten percent to all primary accounts and subaccounts. Such 
   transfers are to be reported to the appropriate Committees within thirty
   days of such action.                                                    
       Overseas Basing Master Plan. --The conferees support the Senate     
   direction for an overseas basing master plan, to be submitted no later  
   than April 1, 2002.                                                     
       Pennsylvania: Joint-use Facility. --The conferees are aware of the  
   need to renovate four Guard and Reserve facilities in Northeastern      
   Pennsylvania and the benefits of consolidating them into a joint-use    
   facility. Therefore, the conferees encourage the Department to make this
   project a priority and program the requirement in the Future Years      
   Defense Plan.                                                           
                       MILITARY CONSTRUCTION, ARMY                       
                          (including rescission)                         
       The conference agreement appropriates $1,778,256,000 for Military   
   Construction, Army, instead of $1,739,334,000 as proposed by the House, 
   and $1,668,957,000 as proposed by the Senate. Within this amount, the   
   conference agreement earmarks $163,198,000 for study, planning, design, 
   architect and engineer services, and host nation support instead of     
   $163,141,000 as proposed by the House and $176,184,000 as proposed by   
   the Senate. The conference agreement rescinds $36,400,000 from funds    
   appropriated for Military Construction, Army under Public Law 106 52, as
   proposed by the House, instead of $26,400,000 as proposed by the Senate.
                       MILITARY CONSTRUCTION, NAVY                       
                          (including rescission)                         
       The conference agreement appropriates $1,144,221,000 for Military   
   Construction, Navy, instead of $1,154,248,000 as proposed by the House, 
   and $1,148,633,000 as proposed by the Senate. Within this amount, the   
   conference agreement earmarks $34,152,000 for study, planning, design,  
   architect and engineer services instead of $30,972,000 as proposed by   
   the House and $37,332,000 as proposed by the Senate. The conference     
   agreement rescinds $19,588,000 from funds appropriated for Military     
   Construction, Navy under Public Law 106 246, as proposed by the House   
   and Senate.                                                             
       Texas: Kingsville Naval Air Station: Airfield Lighting. --The       
   conferees direct the Navy to accelerate design of this project and to   
   include the required construction funding in the budget request for     
   fiscal year 2003.                                                       
                     MILITARY CONSTRUCTION, AIR FORCE                    
                          (including rescission)                         
       The conference agreement appropriates $1,194,880,000 for Military   
   Construction, Air Force, instead of $1,185,220,000 as proposed by the   
   House, and $1,148,269,000 as proposed by the Senate. Within this amount,
   the conference agreement earmarks $83,210,000 for study, planning,      
   design, architect and engineer services instead of $83,000,000 as       
   proposed by the House and $83,420,000 as proposed by the Senate. The    
   conference agreement rescinds $4,000,000 from funds appropriated for    
   Military Construction, Air Force under previous Military Construction   
   Appropriations Acts, as proposed by the Senate.                         
       Nebraska--Offutt Air Force Base: Fire/Crash Rescue Station. --The   
   conferees direct the Air Force to accelerate design of this project and 
   to include the required construction funding in the budget request for  
   fiscal year 2003.                                                       
       Wyoming--F.E. Warren Air Force Base: Storm Water Drainage System.   
   --The fiscal year 2001 Senate Report 106 290 included funding of        
   $10,300,000 for a Storm Water Drainage System Project at F.E. Warren Air
   Force Base in Wyoming. Unfortunately, funding constraints prohibited    
   final action. Storm water flooding remains a major problem at F.E.      
   Warren Air Force Base. The project will better manage and divert flood  
   waters on the installation. In addition, the project will greatly       
   decrease the amount of storm water leaving the base which significantly 
   impacts on the surrounding community. The conferees agree that this     
   project addresses an urgent, mission critical, and safety requirement,  
   and the Air Force is strongly encouraged to include this project in the 
   budget request for fiscal year 2003.                                    
       Korea--Osan Air Base: Base Civil Engineer Complex. --The conferees  
   are concerned about the significant cost of replacing current civil     
   engineer facilities at Osan Air Base as proposed in the fiscal year 2002
   budget request. Although the conferees support follow-on family housing 
   projects envisioned for Osan Air Base, they do not support funding for a
   robust civil engineering complex without significant host nation        
   contribution. The conferees understand that the civil engineers         
   currently occupy land that will ultimately be used to build family      
   housing. Family housing is a direct quality of life issue that will have
   a significant impact on the airmen and the families assigned to the     
   base. The conferees agree to provide the Air Force $12,000,000 for the  
   base civil engineer project for site preparation and preliminary        
   utilities requirements. The conferees direct that any further funding   
   requirements related to this project be funded through host nation      
   support.                                                                
                   military construction, defense-wide                   
              (including transfer and rescissions of funds)              
       The conference agreement appropriates $840,558,000 for Military     
   Construction, Defense-wide, instead of $863,058,000 as proposed by the  
   House, and $881,058,000 as proposed by the Senate. Within this amount,  
   the conference agreement earmarks $66,496,000 for study, planning,      
   design, architect and engineer services instead of $74,496,000 as       
   proposed by the House and $88,496,000 as proposed by the Senate. The    
   conference agreement rescinds $69,280,000 from funds appropriated for   
   Military Construction, Defense-wide under Public Law 106 246 and        
   previous Military Construction Appropriations Acts, as proposed by the  
   Senate, instead of $10,250,000 as proposed by the House.                
       Chemical Demilitarization: Defense Road Requirements. --The         
   conferees are concerned about the emergency preparedness planning as    
   part of the Chemical Demilitarization Program. Of the funds made        
   available in the ``Military Construction, Defense-wide'' account, the   
   Department may spend up to $300,000 to conduct a feasibility study on   
   the requirements for defense roads at the chemical demilitarization     
   sites in the United States to support emergency preparedness            
   requirements.                                                           
       Energy Conservation and Improvement Program. --The conferees agree  
   to provide a total of $27,000,000 for this program. Of these funds, the 
   conferees direct that $6,000,000 be used to conduct a service-wide      
   assessment of renewable energy alternatives at or near Department of    
   Defense installations, as described in detail in Senate Report 107 68.  
       Measurement and Signature Intelligence Facilities. --The conferees  
   have agreed to drop Senate report language which allocated $10,000,000  
   for the planning and design of two Measurement and Signature            
   Intelligence (MASINT) facilities.                                       
                Military Construction, Army National Guard               
       The conference agreement appropriates $405,565,000 for Military     
   Construction, Army National Guard, instead of $313,348,000 as proposed  
   by the House, and $378,549,000 as proposed by the Senate.               
       Arizona--Papago Park Military Reservation: Add/Alter Readiness      
   Center. --Although the conferees were unable to fund this project due to
   funding constraints, the conferees strongly urge the Army National Guard
   to include this project in its fiscal year 2003 budget submission.      
       Weapons of Mass Destruction--Civil Support Teams. --Of the funds    
   provided for unspecified minor construction within the ``Military       
   Construction, Army National Guard'' account, the conferees direct that  
   not less than $6,000,000 be made available to directly support the      
   completion of facilities for WMD/CST locations.                         
                Military Construction, Air National Guard                
       The conference agreement appropriates $253,386,000 for Military     
   Construction, Air National Guard, instead of $198,803,000 as proposed by
   the House, and $222,767,000 as proposed by the Senate.                  
       Ohio--Mansfield Lahm Airport: Replace Vehicle Maintenance Facility. 
   --Although the conferees were unable to fund this project due to funding
   constraints, the conferees strongly urge the Air National Guard to      
   include this project in its fiscal year 2003 budget submission.         
                   Military Construction, Army Reserve                   
       The conference agreement appropriates $167,019,000 for Military     
   Construction, Army Reserve, instead of $167,769,000 as proposed by the  
   House, and $111,404,000 as proposed by the Senate.                      
                   Military Construction, Naval Reserve                  
                          (Including Rescission)                         
       The conference agreement appropriates $53,201,000 for Military      
   Construction, Naval Reserve, instead of $62,351,000 as proposed by the  
   House, and $33,641,000 as proposed by the Senate. The conference        
   agreement rescinds $925,000 from funds appropriated for Military        
   Construction, Naval Reserve under Public Law 106 246, as proposed by the
   House and Senate.                                                       
       Texas--Fort Worth Joint Reserve Base: Compartmented Intelligence    
   Facility. --In Senate Report 107 68, the compartmented intelligence     
   facility at Fort Worth Joint Reserve Base was incorrectly identified as 
   a Navy project. This project should be executed with funds made         
   available for unspecified minor construction in the ``Military          
   Construction, Naval Reserve'' account.                                  
                 Military Construction, Air Force Reserve                
       The conference agreement appropriates $74,857,000 for Military      
   Construction, Air Force Reserve, instead of $81,882,000 as proposed by  
   the House, and $53,732,000 as proposed by the Senate.                   
       Michigan--Selfridge Air National Guard Base: Alter Command          
   Post/Logistics Base. --In Senate Report 107 68, the alter command       
   post/logistics base project at Selfridge Air National Guard Base was    
   incorrectly identified as an Air National Guard project. This project   
   should be executed with funds made available for unspecified minor      
   construction in the ``Military Construction, Air Force Reserve''        
   account.                                                                
      North Atlantic Treaty Organization Security Investment Program     
       The conference agreement appropriates $162,600,000 for the North    
   Atlantic Treaty Organization Security Investment Program (NSIP), as     
   proposed by the House and Senate.                                       
                    FAMILY HOUSING CONSTRUCTION, ARMY                    
       The conference agreement appropriates $312,742,000 for Family       
   Housing Construction, Army, as proposed by the Senate, instead of       
   $294,042,000 as proposed by the House.                                  
              Family Housing Operation and Maintenance, Army             
       The conference agreement appropriates $1,089,573,000 for Family     
   Housing Operation and Maintenance, Army, instead of $1,096,431,000 as   
   proposed by the House and $1,108,991,000 as proposed by the Senate.     
       District of Columbia-Fort McNair: General Officer Quarters. --The   
   Army has requested it be allowed to substitute the renovation of        
   Quarters 7 at Fort McNair, at a cost of $700,000, in place of Quarters  
   3, as submitted in its budget request for $1,200,000. The conferees     
   agree with this substitution. The conferees are encouraged by the Army's
   study being performed by the National Association of Homebuilders to    
   refine and reduce the original cost projections for Fort McNair's       
   quarters, which appear too high. The conferees expect the Army to use   
   the most economical and cost-effective approach toward renovating these 
   historic quarters.                                                      
            Family Housing Construction, Navy and Marine Corps           
       The conference agreement appropriates $331,780,000 for Family       
   Housing Construction, Navy and Marine Corps, instead of $334,780,000 as 
   proposed by the House and $312,600,000 as proposed by the Senate.       
       The conferees direct that the following projects are to be          
   accomplished within the increased amount provided for construction      
   improvements:                                                           
          District of Columbia: 8th and I Marine Barracks (2 units)                $1,600,000
          Hawaii: Barking Sands (69 units)                11,840,000
          Massachusetts: Westover Air Reserve Base (124 units)                6,940,000
     Family Housing Operation and Maintenance, Navy and Marine Corps     
       The conference agreement appropriates $910,095,000 for Family       
   Housing Operation and Maintenance, Navy and Marine Corps, as proposed by
   the House, instead of $918,095,000 as proposed by the Senate.           
                  Family Housing Construction, Air Force                 
       The conference agreement appropriates $550,703,000 for Family       
   Housing Construction, Air Force, as proposed by the Senate, instead of  
   $536,237,000 as proposed by the House.                                  
       The conferees direct that the following projects are to be          
   accomplished within the increased amount provided for construction      
   improvements:                                                           
          Missouri: Whiteman AFB (164 units)                $17,966,000
          South Carolina: Charleston AFB (32 units)                4,500,000
           Family Housing Operation and Maintenance, Air Force           
       The conference agreement appropriates $844,715,000 for Family       
   Housing Operation and Maintenance, Air Force, instead of $858,121,000 as
   proposed by the House and $869,121,000 as proposed by the Senate.       
                       Family Housing, Defense-wide                      
       The conference agreement appropriates $44,012,000 for Family        
   Housing, Defense-wide, as proposed by the House and Senate.             
          Department of Defense Family Housing Improvement Fund          
       The conference agreement provides $2,000,000 for the Department of  
   Defense Family Housing Improvement Fund, as proposed by the House and   
   Senate. Transfer authority is provided for the execution of any         
   qualifying project under privatization authority, which resides in the  
   Fund.                                                                   
       Housing Privatization Support Costs. --The conferees are extremely  
   concerned about the costs of consultants hired to assist the services   
   with the housing privatization initiative. For example, the Army        
   requested $27,918,000 and the Air Force requested $35,402,000 to pay for
   consultants. Costs of this magnitude are exorbitant, especially as      
   neither the Army nor Air Force has made sufficient progress in          
   privatizing its housing inventory. Therefore, the conferees agree to    
   reduce $7,918,000 from the ``Family Housing Operation and Maintenance,  
   Army'' account, and $13,402,000 from the ``Family Housing Operation and 
   Maintenance, Air Force'' account. Furthermore, the conferees remind the 
   services that these funds should be spent on creating, analyzing and    
   negotiating complex real estate transactions--not on public relations or
   work that can be done by the services' staff.                           
                   Homeowners Assistance Fund, Defense                   
       The conference agreement appropriates $10,119,000 for the Homeowners
   Assistance Fund, Defense, as proposed by the House and Senate.          
                   Base Realignment and Closure Account                  
       The conference agreement appropriates $632,713,000 for the Base     
   Realignment and Closure Account, instead of $552,713,000 as proposed by 
   the House and $682,200,000 as proposed by the Senate.                   
       Environmental Remediation Shortfalls. --The conferees have included 
   a general provision (Section 131) directing the Department of Defense to
   accurately reflect the cost of environmental remediation activities in  
   its future budget submissions for Base Realignment and Closure (BRAC)   
   funding. The conferees note that the Navy and Air Force BRAC budget     
   requests for fiscal year 2002 were far below the level of funding needed
   to meet urgent obligations.                                             
       The conferees have agreed to provide and fully offset $100,513,000  
   over the budget request to fund environmental remediation funding       
   shortfalls in the Navy and Air                                          
                    Force BRAC accounts. The conference provision includes        
          $80,513,000 for the Navy and $20,000,000 for the Air Force. The         
          conferees note that the funding shortfalls are the result of inadequate 
          programming and budgeting decisions on the part of the Navy and Air     
          Force.                                                                  
       The conferees strongly believe that the Navy and Air Force should   
   bear the burden of making up these shortfalls. Therefore, the funding to
   cover the BRAC environmental remediation shortfalls is derived from the 
   following sources: a rescission of $19,588,000 from previously          
   appropriated Navy planning and design funds, a rescission of $925,000   
   from previously appropriated Naval Reserve planning and design funds, a 
   $60,000,000 general reduction in the fiscal year 2002 ``Military        
   Construction, Navy'' account, and a $20,000,000 general reduction in the
   fiscal year 2002 ``Military Construction, Air Force'' account. The      
   conferees direct that no item of congressional interest may be canceled 
   or delayed as a result of these general reductions.                     
       In addition to the funds provided in this Act, the Navy and Air     
   Force are directed to allocate all unobligated balances from previously 
   appropriated BRAC funds to address their fiscal year 2002 BRAC          
   environmental remediation funding shortfall. The conferees direct the   
   services to program and budget for the entire amount of their annual    
   BRAC environmental remediation obligations in future years, beginning   
   with fiscal year 2003. Failure to do so will force the congressional    
   committees to take proportionate reductions in specific military        
   construction projects or programs requested by the services.            
                            General Provisions                           
       The conference agreement includes general provisions (Sections 101  
   120) that were not amended by either the House or Senate in their       
   versions of the bill.                                                   
       The conference agreement includes a provision, Section 121, as      
   proposed by the House, which prohibits the expenditure of funds except  
   in compliance with the Buy American Act. The Senate bill contained no   
   similar provision.                                                      
       The conference agreement includes a provision, Section 122, as      
   proposed by the House, which states the Sense of the Congress that      
   recipients of equipment or products authorized to be purchased with     
   financial assistance provided in this Act are to be notified that they  
   must purchase American-made equipment and products. The Senate bill     
   contained no similar provision.                                         
       The conference agreement includes a provision, Section 123, as      
   proposed by the House and Senate, permitting the transfer of funds from 
   Family Housing, Construction accounts to the DOD Family Housing         
   Improvement Fund.                                                       
       The conference agreement includes a provision renumbered Section    
   124, as proposed by the House and the Senate, to prohibit the use of    
   funds in this Act to be obligated for Partnership for Peace programs in 
   the New Independent States of the former Soviet Union.                  
       The conference agreement includes a provision renumbered Section    
   125, as proposed by the House and the Senate, which requires the        
   Secretary of Defense to notify Congressional Committees sixty days prior
   to issuing a solicitation for a contract with the private sector for    
   military family housing.                                                
       The conference agreement includes a provision renumbered Section    
   126, as proposed by the House and the Senate, which provides transfer   
   authority to the Homeowners Assistance Program.                         
       The conference agreement includes a provision renumbered Section    
   127, as proposed by the Senate, regarding funding for operation and     
   maintenance of general officer quarters.                                
       The conference agreement includes a provision renumbered Section    
   128, as proposed by the Senate, which authorizes $8,000,000 for a       
   military construction project at Masirah Island Airfield, Oman. The     
   House bill contained a similar provision.                               
       The conference agreement includes a provision, Section 129, as      
   proposed by the Senate, which requires the Secretary of Defense to      
   submit a master plan for the environmental remediation of Hunters Point 
   Naval Shipyard, California. The House bill contained no similar         
   provision.                                                              
       The conference agreement includes a provision, Section 130, which   
   rescinds $60,000,000 from the ``Foreign Currency Fluctuations,          
   Construction, Defense'' account.                                        
       The conference agreement includes a provision, Section 131, which   
   directs the Department of Defense to accurately reflect the cost of     
   environmental restoration activities in its future budget submissions   
   for the Base Realignment and Closure (BRAC) account.                    
       The conference agreement includes a provision, Section 132, which   
   reduces all accounts in the bill with the exception of the ``NATO       
   Security Investment Program''                                           
                    account and the ``Base Realignment and Closure'' account by   
          1.127 percent.                                                          
       Those general provisions not included in the conference agreement   
   are as follows:                                                         
       The conference agreement deletes the House provision regarding      
   family housing master plans.                                            
       The conference agreement deletes the Senate provision regarding a   
   defense road feasibility study at Pine Bluff Arsenal, Arkansas.         
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                             CONFERENCE TOTAL--WITH COMPARISONS                   
       The total new budget (obligational) authority for the fiscal year   
   2002 recommended by the Committee of Conference, with comparisons to the
   fiscal year 2001 amount, the 2002 budget estimates, and the House and   
   Senate bills for 2002 follows:                                          
          [In thousands of dollars]                                               
          New budget (obligational) authority, fiscal year 2001                $8,936,498
          Budget estimates of new (obligational) authority, fiscal year 2002                9,971,312
          House bill, fiscal year 2002                10,500,000
          Senate bill, fiscal year 2002                10,500,000
          Conference agreement, fiscal year 2002                10,500,000
    Conference agreement compared with:                                     
                                         +1,563,502
                                         +528,688
    David L. Hobson,                                                        
    James T. Walsh,                                                         
    Dan Miller,                                                             
    Robert B. Aderholt,                                                     
    Kay Granger,                                                            
    Virgil Goode,  Jr.,                                                     
    Joe Skeen,                                                              
    David Vitter,                                                           
    Bill Young,                                                             
    John W. Olver,                                                          
    Chet Edwards,                                                           
    Sam Farr,                                                               
    Allen Boyd,                                                             
    Norman Dicks,                                                           
    David Obey,                                                             
        Managers on the Part of the House.                                      
    Dianne Feinstein,                                                       
    Daniel K. Inouye,                                                       
    Tim Johnson,                                                            
    Mary Landrieu,                                                          
    Harry Reid,                                                             
    Robert C. Byrd,                                                         
    Kay Bailey Hutchison,                                                   
    Conrad Burns,                                                           
    Larry E. Craig,                                                         
    Mike DeWine,                                                            
    Ted Stevens,                                                            
        Managers on the Part of the Senate.                                     
                                                                        



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