S. Rept. 112-168 - 112th Congress (2011-2012)
May 22, 2012, As Reported by the Appropriations Committee

Report text available as:

Formatting necessary for an accurate reading of this legislative text may be shown by tags (e.g., <DELETED> or <BOLD>) or may be missing from this TXT display. For complete and accurate display of this text, see the PDF.




Senate Report 112-168 - MILITARY CONSTRUCTION AND VETERANS AFFAIRS, AND RELATED AGENCIES APPROPRIATION BILL, 2013




[Senate Report 112-168]
[From the U.S. Government Printing Office]


                                                       Calendar No. 408
112th Congress                                                   Report
                                 SENATE
 2d Session                                                     112-168

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



 
   MILITARY CONSTRUCTION AND VETERANS AFFAIRS, AND RELATED AGENCIES 
                        APPROPRIATION BILL, 2013
                                _______
                                

                  May 22, 2012.--Ordered to be printed

                                _______
                                

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

                                 REPORT

                         [To accompany S. 3215]

    The Committee on Appropriations reports the bill (S. 3215) 
making appropriations for military construction, the Department 
of Veterans Affairs, and related agencies for the fiscal year 
ending September 30, 2013, and for other purposes, reports 
favorably thereon and recommends that the bill do pass.



Amounts in new budget authority

Total of bill as reported to the Senate.................$148,533,927,000
Amount of 2012 appropriations........................... 137,441,934,000
Amount of 2013 budget estimate.......................... 148,999,829,000
Bill as recommended to Senate compared to--
    Amount of 2012 appropriations....................... +11,091,993,000
    Amount of 2013 budget estimate......................    -465,902,000



                                CONTENTS

                              ----------                              
                                                                   Page
Background:
    Purpose of the Bill..........................................     4
    Committee Recommendation.....................................     4
    Overview and Summary of Bill.................................     4
Title I:
    Military Construction:
        Items of Special Interest:
            Hearings.............................................     6
            Summary of Committee Recommendations.................     6
            Reprogramming Guidelines.............................     6
            Real Property Maintenance............................     6
            Incremental Funding..................................     7
            Future Years Defense Program.........................     7
            Energy Policy........................................     8
            Global Challenges....................................    10
        Military Construction, Army..............................    14
        Military Construction, Navy and Marine Corps.............    17
        Military Construction, Air Force.........................    17
        Military Construction, Defense-Wide......................    19
        Military Construction, Reserve Components................    20
        North Atlantic Treaty Organization.......................    21
        Family Housing Overview..................................    22
        Family Housing Construction, Army........................    22
        Family Housing Operation and Maintenance, Army...........    23
        Family Housing Construction, Navy and Marine Corps.......    23
        Family Housing Operation and Maintenance, Navy and Marine 
          Corps..................................................    24
        Family Housing Construction, Air Force...................    24
        Family Housing Operation and Maintenance, Air Force......    25
        Family Housing Operation and Maintenance, Defense-Wide...    26
        Family Housing Improvement Fund..........................    26
        Homeowners Assistance Fund...............................    26
        Chemical Demilitarization Construction, Defense-Wide.....    27
        Base Closure Account 1990................................    28
        Base Closure Account 2005................................    28
        Administrative Provisions................................    29
Title II:
    Department of Veterans Affairs:
        Items of Special Interest:
            Hearings.............................................    31
            Summary of Committee Recommendations.................    31
            Department Overview..................................    31
        Veterans Benefits Administration.........................    33
            Compensation and Pensions............................    34
            Readjustment Benefits................................    35
            Veterans Insurance and Indemnities...................    36
            Veterans Housing Benefit Program Fund................    37
            Vocational Rehabilitation Loans Program Account......    37
            Native American Veteran Housing Loan Program Account.    38
        Veterans Health Administration...........................    38
            Medical Services.....................................    41
            Medical Support and Compliance.......................    47
            Medical Facilities...................................    48
            Medical and Prosthetic Research......................    49
            Medical Care Cost Recovery Collections...............    50
            Medical Care Collection Fund--Revenues Applied.......    50
        National Cemetery Administration.........................    51
        Departmental Administration..............................    52
            General Administration...............................    52
            General Operating Expenses, Veterans Benefits 
              Administration.....................................    54
            Information Technology Systems.......................    56
            Office of Inspector General..........................    58
            Construction, Major Projects.........................    59
            Construction, Minor Projects.........................    60
            Grants for Construction of State Extended Care 
              Facilities.........................................    60
            Grants for Construction of Veterans Cemeteries.......    61
            Administrative Provisions............................    61
Title III:
    Related Agencies:
        American Battle Monuments Commission:
            Salaries and Expenses................................    64
            Foreign Currency Fluctuations........................    64
        U.S. Court of Appeals for Veterans Claims: Salaries and 
          Expenses...............................................    65
        Department of Defense--Civil: Cemeterial Expenses, Army:
            Salaries and Expenses................................    65
            Construction.........................................    66
        Armed Forces Retirement Home.............................    66
Title IV: General Provisions.....................................    67
Compliance With Paragraph 7, Rule XVI, of the Standing Rules of 
  the 
  Senate.........................................................    68
Compliance With Paragraph 7(c), Rule XXVI of the Standing Rules 
  of the Senate..................................................    69
Compliance With Paragraph 12, Rule XXVI of the Standing Rules of 
  the Senate.....................................................    70
Budgetary Impact of Bill.........................................    73
Military Construction Project Listing by Location................    74
Comparative Statement of Budget Authority........................    91


                               BACKGROUND

                          Purpose of the Bill

    The Military Construction and Veterans Affairs, and Related 
Agencies appropriations bill provides necessary funding for the 
planning, design, construction, alteration, and improvement of 
military facilities worldwide, for both active and reserve 
forces. It also finances the cost of military family housing 
and the U.S. share of the NATO Security Investment Program. In 
addition, the bill provides funding to implement base closures 
and realignments authorized by law. The bill provides resources 
to the Department of Veterans Affairs for veterans benefits and 
healthcare and funding for U.S. cemeteries and battlefield 
monuments both in the United States and abroad, including 
Arlington National Cemetery; the U.S. Court of Appeals for 
Veterans Claims; and the Armed Forces Retirement Homes.

                        Committee Recommendation

    The Committee recommends appropriations totaling 
$148,533,927,000 for fiscal year 2013 military construction, 
family housing, base closure, veterans healthcare and benefits, 
including fiscal year 2014 advance appropriations for veterans 
medical care, and related agencies. This includes 
$74,638,167,000 in mandatory funding and $73,895,760,000 in 
discretionary funding. The table at the end of the report 
displays the Committee recommendation in comparison with the 
current fiscal year, and the President's fiscal year 2013 
request.

                   APPROPRIATIONS FOR FISCAL YEAR 2013
------------------------------------------------------------------------
                                                           Senate
                                 Budget request        recommendation
------------------------------------------------------------------------
New budget authority........      $148,999,829,000      $148,533,927,000
Previous advances provided          52,541,000,000        52,541,000,000
 for fiscal year 2013.......
Less advances provided for         -54,462,000,000       -54,462,000,000
 fiscal year 2014...........
                             -------------------------------------------
      Total appropriations         147,078,829,000       146,612,927,000
       for fiscal year 2013.
------------------------------------------------------------------------

                      Overview and Summary of Bill

    The Military Construction and Veterans Affairs, and Related 
Agencies appropriations bill funds an array of programs that 
are vital to America's military personnel and their families, 
and to the Nations' veterans. For U.S. military forces and 
their families worldwide, the bill funds critical 
infrastructure, ranging from mission essential operational and 
training facilities to key quality of life facilities, 
including barracks, family housing, child care centers, schools 
and hospitals. For America's 22,200,000 veterans, the bill 
provides the necessary funding for veterans benefits and 
healthcare, from prescription drugs and clinical services to 
the construction of hospitals and other medical facilities 
throughout the Nation. The bill also funds veterans cemeteries 
in the United States and provides funding for four independent 
agencies--the American Battle Monuments Commission, the U.S. 
Court of Appeals for Veterans Claims, the Armed Forces 
Retirement Homes, and Arlington National Cemetery.

                                TITLE I

                         MILITARY CONSTRUCTION

                       Items of Special Interest

                                HEARINGS

    The Subcommittee on Military Construction and Veterans 
Affairs, and Related Agencies held two hearings related to the 
fiscal year 2013 military construction budget request. 
Witnesses included representatives of the Office of Secretary 
of Defense and of the active and reserve components of the 
Army, Navy, and Air Force.

                  SUMMARY OF COMMITTEE RECOMMENDATIONS

    The fiscal year 2013 budget request for military 
construction and family housing totals $11,222,710,000. The 
Committee recommends $10,653,808,000, $568,902,000 below the 
budget request for military construction and family housing.

                        REPROGRAMMING GUIDELINES

    The following reprogramming guidelines apply for all 
military construction and family housing projects. A project or 
account (including the sub-elements of an account) which has 
been specifically reduced by the Congress in acting on the 
budget request is considered to be a congressional interest 
item and as such, prior approval is required. Accordingly, no 
reprogrammings to an item specifically reduced below the 
threshold by the Congress are permitted.
    The reprogramming criteria that apply to military 
construction projects (25 percent of the funded amount or 
$2,000,000, whichever is less) continue to apply to new housing 
construction projects and to improvements over $2,000,000. To 
provide the services the flexibility to proceed with 
construction contracts without disruption or delay, the costs 
associated with environmental hazard remediation such as 
asbestos removal, radon abatement, lead-based paint removal or 
abatement, and any other legislated environmental hazard 
remediation may be excluded, provided that such remediation 
requirements could not be reasonably anticipated at the time of 
the budget submission. This exclusion applies to projects 
authorized in this budget year, as well as projects authorized 
in prior years for which construction has not been completed.
    Furthermore, in instances where prior approval to a 
reprogramming request for a project or account has been 
received from the Committee, the adjusted amount approved 
becomes the new base for any future increase or decrease via 
below-threshold reprogrammings (provided that the project or 
account is not a congressional interest item as defined above).
    In addition to these guidelines, the services are directed 
to adhere to the guidance for military construction 
reprogrammings and notifications, including the pertinent 
statutory authorities contained in Department of Defense [DOD] 
Financial Management Regulation 7000.14-R and relevant updates 
and policy memoranda.

                       REAL PROPERTY MAINTENANCE

    The Committee recommends a continuation of the following 
general rules for repairing a facility under ``Operation and 
Maintenance'' account funding:
  --Components of the facility may be repaired by replacement, 
        and such replacement may 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 submit a 21-day 
        notification prior to carrying out any repair project 
        with an estimated cost in excess of $7,500,000.
    The Department is directed to continue to report on the 
real property maintenance 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 continue to show all real property maintenance 
conducted in the past 2 years and all future requirements for 
unaccompanied housing at that installation.

                          INCREMENTAL FUNDING

    In general, the Committee supports full funding for 
military construction projects. However, it continues to be the 
practice of the Committee to provide incremental funding for 
certain large projects, despite administration policy to the 
contrary, to enable the services to more efficiently allocate 
military construction dollars among projects that can be 
executed in the year of appropriation. For fiscal year 2013, 
the Committee recommends incremental funding for the following 
projects: High Performance Computing Center, increment 2, Fort 
Meade, Maryland; U.S. STRATCOM Replacement Facility, Offutt Air 
Force Base, Nebraska; Cadet Barracks, U.S. Military Academy, 
West Point, New York; Hospital Replacement, Fort Bliss, Texas; 
and Explosives Handling Wharf 2, Kitsap, Washington.

                      FUTURE YEARS DEFENSE PROGRAM

    The Future Years Defense Program [FYDP] submitted with the 
fiscal year 2013 budget request represents a 41-percent 
decrease in projected military construction funding from the 
FYDP submitted in fiscal year 2012, with a particularly 
dramatic reduction in projected funding versus the actual 
budget request for fiscal year 2013. Over the span of the new 
FYDP, for both Active and Reserve components, proposed Army 
military construction is reduced by more than $12,000,000,000, 
or 60 percent; proposed Navy and Marine Corps military 
construction is reduced by $2,700,000,000, or 24 percent; and 
proposed Air Force military construction is reduced by 
$1,700,000,000, or 19 percent.
    Neither DOD nor the services have offered a detailed 
explanation of why projects previously programmed in the FYDP 
for 2013 were deferred, how these deferrals will affect mission 
requirements and operational needs, whether the Department 
intends to propose any or all of these projects in immediate 
future years, and how the deferral of military construction 
projects in 2013 will affect the timing of projects previously 
programmed in the FYDP over the next several years
    The Committee recognizes the difficulty in planning for 
future military construction requirements in the face of a 
fiscally constrained budgetary environment, planned end 
strength reductions for the Army and Marine Corps, major 
restructuring initiatives for the Air Force, and global posture 
realignments. However, a hollow FYDP is of little value to 
Congress in evaluating the current military construction 
request in the context of longer-range military construction 
planning and hampers the ability of the Department and the 
Congress to make prudent and forward-looking investments.
    In light of the drastic changes from the fiscal year 2012 
FYDP to the fiscal year 2013 FYDP, the Committee directs the 
services and the defense agencies to provide to the Committee, 
within 90 days of enactment of this act, a detailed listing of 
projects that were included in the fiscal year 2012 FYDP for 
2013 but were dropped from the 2013 budget request, and an 
explanation of why each project was dropped. The Committee 
further expects DOD to provide a comprehensive FYDP with the 
fiscal year 2014 budget request, reflecting reassessed 
strategic needs and force structure realignments.
    Although the Committee recognizes the need for fiscal 
restraint in defense spending in the current budgetary 
environment, it remains concerned that military construction 
funding not be cannibalized to finance other defense programs, 
as critical as they might be. Military construction is the 
foundation of the living and working conditions for military 
personnel and their families. The extreme reduction in the 
fiscal year 2013 military construction budget request when 
compared to recent years, in tandem with the skeletonized 
fiscal year 2013 FYDP, raises a warning flag about DOD's 
commitment to vital military construction requirements that the 
Committee will closely monitor.

                             ENERGY POLICY

    The Department of Defense is the largest consumer of energy 
in the Federal Government, accounting for nearly 80 percent of 
the government's total energy consumption. DOD spends nearly 
$4,000,000,000 annually on facility energy alone, nearly a 
quarter of its total energy costs. However, installation energy 
consumption accounts for nearly 40 percent of the Department's 
greenhouse gas emissions. The Committee commends the Department 
for its aggressive efforts to improve the energy efficiency of 
its buildings and installations, reduce consumption, mitigate 
its carbon footprint, invest in renewable energy projects, and 
enhance energy security on its installations.
    The Committee also supports the efforts of the Department 
to incorporate green building technologies into both new 
construction and renovations of buildings. As noted in the 
past, the Committee believes that the use of these technologies 
should be a fundamental consideration in the design or retrofit 
of all military construction projects.
    In particular, the Committee believes that the Department 
should maximize the use of energy efficient, eco-friendly 
roofing technologies for new construction and renovations, 
including family housing construction and renovation. These 
technologies include, but are not limited to, photovoltaic 
panels, solar thermal roof coatings, rooftop direct use solar 
lighting technology, green roofs, and cool roofs. In an effort 
to capture the most innovative of these technologies, the 
Committee encourages the Department and the services to monitor 
new technologies emerging from government, industry, or 
university research and development programs.
    Although federally mandated sustainable design policies and 
energy efficiency goals are standard elements of military 
construction design, the Committee encourages the Department 
and the services to incorporate additional leading-edge 
technologies into the construction program and to utilize new 
and underutilized, low-cost energy-efficient technologies that 
provide the best value to taxpayers through minimal life-cycle 
costs.
    While strongly supportive of DOD's commitment to green 
buildings, and its goal to promote cost-effective 
sustainability, the Committee is concerned that the 
Department's current approach to sustainable construction could 
result in giving preference to one green building certification 
system to the exclusion of others, particularly wood products. 
The Committee expects DOD to ensure equal acceptance of 
forestry certification systems, and to allow systems designated 
as American National Standards to compete equally for use in 
the Department's building construction and major renovations, 
subject to Buy America requirements.
    Cybersecure Microgrids at Military Installations.--The 
Committee is impressed with the progress the Department has 
made in deploying microgrids to mitigate risk to mission 
critical assets and promote energy independence at military 
installations through the Smart Power Infrastructure 
Demonstration for Energy Reliability and Security [SPIDERS] 
program. However, the Committee remains concerned that most 
installations across the country are dependent on commercial 
grids, which could potentially compromise the security and 
access to reliable supplies of energy necessary to meet mission 
essential requirements. The Committee believes the Department 
should study and evaluate using cybersecure microgrid 
technologies to promote energy security. Therefore, the 
Secretary of Defense shall submit a report to the congressional 
defense committees, no later than 180 days from the enactment 
of this act, regarding: (1) the status of microgrid 
demonstrations currently deployed domestically; (2) the 
Department's plan to secure energy supplied to military 
installations to meet mission essential requirements; and (3) 
the potential benefits of the wide-spread use of secure 
microgrid technology on domestic military installations.

                           GLOBAL CHALLENGES

    At a time of global economic insecurity and shifting 
strategic concerns, the United States military is faced with 
myriad challenges in rebalancing its overseas force posture. In 
Europe, the Department is engaged in a wide-ranging review of 
its force structure in an effort to sustain a strong NATO 
alliance, draw down United States conventional forces, and 
enhance rotational training and engagement opportunities with 
the militaries of both legacy and nascent NATO partners. In 
addition, the Department is building new capabilities on the 
continent to deploy its European missile defense strategy. As 
the largest United States force presence in Europe, the Army is 
facing the most dramatic force structure realignments, with 
many details still to be resolved.
    In both the Africa and Central commands, contingency and 
anti-terrorism related developments are affecting the current 
force structure assumptions. The scheduled withdrawal of United 
States combat troops from Afghanistan by the end of 2014 is 
already impacting contingency construction in Afghanistan, but 
as the United States transitions to a stability presence in the 
Central Command, new military construction requirements are 
emerging in such countries as Bahrain, Qatar, and Oman. 
Political instability in the region is a complicating factor in 
assessing future requirements.
    In the Africa Command, emerging terrorist threats from such 
countries as Somalia and Yemen require an enhanced and flexible 
military construction platform that can support a dynamic and 
frequently changing mission set.
    Perhaps the greatest challenge is in the Pacific Area of 
Responsibility, where the administration's recent pivot to 
enhance the United States military's presence in the region has 
led to a complete re-evaluation of United States basing 
strategy, particularly in negotiations with the Government of 
Japan over plans to relocate United States military forces from 
Okinawa to Guam.
    Following are discussions of some of the key elements of 
these strategic realignment plans as they relate to force 
structure and military construction requirements.
    European Command [EUCOM].--As part of the overall force 
structure realignment in Europe, as well as the proposed 
reduction in Army end-strength, the requirement for future Army 
military construction in Europe is in flux. The Committee notes 
that the Army is currently undergoing significant force 
structure reductions in Europe, including the removal of two of 
four heavy brigades, a corps headquarters, and various combat 
support units. According to DOD, the remaining Army forces in 
Europe would be regularly augmented by rotational forces. 
Previous DOD and Government Accountability Office analyses 
suggest that such force structure reductions could reduce 
overseas posture costs. However, efforts to develop a detailed 
and comprehensive savings estimate are hindered by decisions 
that have not been finalized, including, but not limited to, 
plans for the Army's overall force structure; the permanent 
location of U.S. Africa Command headquarters, which is 
currently located in Stuttgart, Germany; the consolidation of 
U.S. European Command headquarters; the potential increase in 
special operations forces in Europe, and the size, frequency, 
and equipment requirements for the rotation of Army units to 
Europe. Absent these decisions, it is difficult for the 
Committee to determine future Army infrastructure requirements 
in Europe.
    The Committee supports the Department's plans to invest in 
military construction requirements in Europe for the U.S. 
European missile defense program, but cautions that those 
requirements should be fully validated before funding is 
requested. This is particularly important in light of the fact 
that European missile defense-related requests in the fiscal 
year 2013 budget for funding for the Air Force were deemed 
unnecessary subsequent to the submission of the fiscal year 
2013 budget request.
    Central Command [CENTCOM].--The Committee fully supports 
military construction investments required for United States 
combat forces in Afghanistan. Although the fiscal year 2013 
military construction budget request does not include any new 
military construction for Afghanistan, the Committee notes that 
many previously funded military construction projects have been 
cancelled, and that the services have requested new projects in 
their stead. Infrastructure requirements in a rapidly evolving 
combat environment are by their nature fluid, but the Committee 
urges the Department to ensure that scarce defense dollars are 
not spent for non-essential military construction projects at 
temporary bases given that such projects may not be completed 
before the withdrawal of United States troops.
    The Committee is also concerned with proposed military 
construction investments in countries within CENTCOM that are 
experiencing political upheaval. For example, although the 
Committee recommends funding for two Navy projects in Bahrain, 
which is the headquarters for the Navy's 5th Fleet, it remains 
concerned that political dissent in Bahrain could threaten the 
current government and jeopardize the United States investment. 
The Committee urges the Navy to examine alternative basing 
arrangements for the 5th Fleet should the political situation 
in Bahrain become untenable.
    The Committee also believes that all infrastructure 
investments in the Central Command should be considered 
expeditionary, as most troops rotate through these bases on a 
very limited deployment schedule, and therefore should not be 
expected to meet permanent stationing requirements.
    Africa Command [AFRICOM].--AFRICOM's strategic role is 
increasingly important given recent troubling developments in 
the Horn of Africa as well as political and economic 
instability throughout the continent. Somalia's statelessness 
and economic malaise have provided a power vacuum for the 
terrorist group al-Shabaab to operate and coordinate with al 
Qaeda affiliates in Yemen, and widespread piracy in the Gulf of 
Aden threatens global shipping lanes between the Mediterranean 
Sea and the Indian Ocean. In light of these challenges, the 
Committee recognizes the importance of maintaining a United 
States military presence in the Horn of Africa.
    However, the Committee continues to be concerned about the 
long-term mission of AFRICOM at Camp Lemonier in Djibouti, the 
only enduring United States military base in Africa. Camp 
Lemonier is a Navy base with the primary mission of supporting 
the Combined Joint Task Force--Horn of Africa [CJTF-HOA], which 
is an inherently temporary mission, intended to focus on 
antiterrorism and capacity building in Africa.
    As such, the Committee sees a serious disconnect between 
the mission critical requirements of CJTF-HOA and the 
installation management requirements of the Navy. Without full 
coordination with AFRICOM, the Navy is expected to provide a 
master plan for the installation based on fragmented and 
evolving requirements of the AFRICOM mission. This disconnect 
has led to flawed siting decisions for facilities, and 
expensive work-around solutions. Additionally, limited space at 
Camp Lemonier makes it difficult to provide sufficient 
facilities to accommodate the range of missions and 
fluctuations in force structure elements.
    The strategic and operational importance of AFRICOM 
underscores the necessity for DOD to finalize a coordinated 
master plan for Camp Lemonier. Despite repeated requests, the 
Committee notes that, to date, it has not been provided with a 
comprehensive master plan for Camp Lemonier, and directs 
AFRICOM to coordinate with the Navy to provide a master plan 
for the installation that incorporates AFRICOM's dynamic 
requirements, including airfield, housing, and operational 
flexibility.
    Additionally, 5 years after its establishment, AFRICOM has 
not made a decision as to where it will locate its permanent 
headquarters, and the Committee urges DOD to reach a decision.
    The lack of a master plan for Camp Lemonier, its status as 
the host for a temporary task force, and the lack of a 
permanent AFRICOM headquarters location hamper long-range 
planning efforts, and raise concerns about long-term funding 
options. Comprehensive medium- and long-range plans must be 
developed in order for DOD and Congress to develop cost 
estimates and evaluate future infrastructure investments at 
Camp Lemonier.
    Pacific Command [PACOM].--Nowhere is the evolving nature of 
United States force posture overseas more apparent than in the 
Pacific Area of Operation [AOR]. For the past 6 years, the 
Department has been struggling to implement a PACOM strategy 
that called for the relocation of 8,500 U.S. marines from 
Okinawa to Guam, construction of a new U.S. military base in 
Okinawa, and tour normalization in Korea, by which 
unaccompanied tours would be migrated to permanent tours to 
include all military personnel and their families. Today, that 
strategy has been turned on its head.
    In the past year, the administration has decided to limit 
the number of U.S. marines scheduled to relocate from Okinawa 
to Guam, re-negotiate the relocation plan with the Government 
of Japan, de-link Guam relocation from the timing of 
construction of a new U.S. military base in Okinawa, and scrap 
future tour normalization for Korea. Instead, the 
Administration has proposed a new strategic plan for the 
Pacific AOR that provides for U.S. rotational forces in 
Australia, Singapore and the Philippines, a reduced presence of 
U.S. marines permanently based in Guam, and a planned shift of 
2,500 marines from Okinawa to Hawaii.
    These changes have profound implications for military 
construction requirements in the PACOM AOR. As the Department 
continues to refine its military construction requirements to 
adapt to this new strategy, the Committee looks forward to a 
revised and comprehensive basing plan that will encompass these 
changes. In the interim, the Committee has deferred funding 
additional military construction related to the relocation of 
U.S. marines to Guam.
    Landstuhl Regional Medical Center.--The Committee continues 
to support construction of a new Army hospital at 
Kaiserslautern, Germany, to replace the aging and inefficient 
Landstuhl Regional Medical Center [LRMC]. As the military's 
only tertiary care hospital in Europe, LRMC is a key medical 
facility for United States forces in Germany and throughout the 
European Command, as a well as a strategic hub for United 
States troops wounded in Iraq and Afghanistan.
    However, the Committee remains concerned about the fidelity 
of the baseline data and the accuracy of the documentation on 
which the Department determined the cost, size, and scope of 
the new hospital. Further, DOD's January 2012 announcement of 
additional force reductions in Europe raises questions as to 
how those posture changes will impact the projected patient 
workload for the new hospital. The Committee expects DOD to 
address these and other concerns raised by the congressional 
defense committees before finalizing plans for the hospital.
    The fiscal year 2012 Military Construction and Veterans 
Affairs, and Related Agencies Appropriations Act (Public Law 
112-74) provided conditional funding for increment 1, site 
preparation, for the replacement hospital pending certification 
of the final size and scope requirement by the Secretary of 
Defense. Although that certification remains pending, the 
Committee recognizes the need to avoid unnecessary delays in 
moving forward to lay the groundwork for a replacement 
facility, and recommends funding the second increment at the 
fully requested amount of $127,000,000, with the understanding 
that all funding remains conditional on the Secretary's 
certification.
    At a time of severe budgetary pressures throughout the 
Government, it is imperative for DOD to fully document and 
justify the cost and requirement for every military 
construction project. This is particularly important for a 
project of this size and scope to be built overseas in a region 
that is currently undergoing major force posture reductions. As 
such, the Committee will continue to closely monitor this 
project.
    Defense Access Roads.--With the consolidation of military 
facilities through BRAC 2005 realignments and transformation 
initiatives, traffic congestion around growth installations has 
become a major issue, particularly in densely populated urban 
areas. The Defense Access Road [DAR] program is DOD's only 
funding mechanism for building or improving access roads 
outside of military installations. However, the program is 
currently constrained by strict eligibility requirements, such 
as the doubling of existing traffic congestion, which makes it 
extremely difficult for congested urban areas to qualify for 
DAR certification.
    The Committee understands that DOD is developing a plan to 
improve and expand the DAR program, utilizing the findings of 
the Government Accountability Office in its report, GAO-11-165, 
and the Transportation Research Board's 2011 study, ``Federal 
Funding of Transportation Improvements in BRAC Cases.'' The 
Committee directs the Department to provide the congressional 
defense committees a detailed report on the proposed plan and 
recommendations with the submission of the fiscal year 2014 
budget request. The plan should address the concerns and 
directives included in the Senate Appropriations Committee's 
fiscal year 2012 Military Construction, Veterans Affairs and 
Related Agencies Report 112-29.
    Well-planned and maintained transportation infrastructure 
adjacent to military facilities increases mobility, improves 
livability, and enhances relations between the base and the 
local community. In addition to the DAR program, DOD should 
evaluate ways it can work with the Department of 
Transportation, State governments, and local communities to 
seek alternatives to efficiently address critical 
transportation infrastructure shortfalls near military 
installations. The Committee also encourages the Department to 
improve interagency coordination to harness other Federal 
resources and address major traffic needs at military 
installations affected by large population increases.
    General/Flag Officer Quarters [GFOQ].--As noted previously, 
this Committee is concerned that the Department of Defense is 
spending an inordinate amount of taxpayer funds on leases, 
maintenance, and upgrades for GFOQs overseas. The Committee is 
pleased to see a decrease in the number of instances in the 
current request in which operations and maintenance costs for 
individual quarters exceeded the $35,000 statutory limit, but 
the Department has yet to provide Congress with a report, as 
requested last year, on the cost benefit of maintaining high-
cost overseas GFOQs. The Committee is concerned that in many 
instances the expense for these quarters is unreasonable and 
not a prudent use of taxpayer funds. The Committee therefore 
directs the Department to initiate a thorough review of all 
planned expenditures on GFOQ housing and provide a report to 
the congressional defense committees, no later than December 
21, 2012, outlining a business case analysis for all high-cost 
GFOQ overseas housing, including a justification of whether the 
lease or other housing arrangement is advantageous to the 
Government, and an evaluation of any reasonable alternatives.

                      Military Construction, Army

Appropriations, 2012....................................  $3,006,491,000
Budget estimate, 2013...................................   1,923,323,000
Committee recommendation................................   1,684,323,000

                          PROGRAM DESCRIPTION

    The military construction appropriation for the Army 
provides for acquisition, construction, installation, and 
equipment of temporary or permanent public works, military 
installations, facilities, and real property for the Army. This 
appropriation also provides for facilities required as well as 
funds for infrastructure projects and programs required to 
support bases and installations around the world.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $1,684,323,000 for the Army for 
fiscal year 2013. This amount is $1,322,168,000 below the 
fiscal year 2012 enacted level, and $239,000,000 below the 
budget request. Further detail of the Committee's 
recommendation is provided in the State table at the end of 
this report.
    Arlington National Cemetery Construction.--The Army's 
fiscal year 2013 military construction budget request includes 
$103,000,000 ($84,000,000 in major construction and $19,000,000 
in planning and design) to develop the Millennium site and 
future construction at Arlington National Cemetery [ANC] to 
increase burial space. Although the cemetery is under the 
general authority of the Army, because of ANC's unique nature 
and national importance, it was established as a related agency 
under the jurisdiction of this subcommittee so that it would be 
independent from the regular Army for funding purposes, thus 
insulating it from funding competition with other Army 
programs.
    The Committee strongly believes that the Army's request--
which also included a provision to allow the transfer of Army 
Operation and Maintenance funding to ANC--would undermine 
oversight of Arlington National Cemetery by setting a precedent 
of comingling ANC and Army appropriations.
    The Committee, therefore, has denied the Army's request of 
$84,000,000 in military construction funding for the Millennium 
project at Arlington National Cemetery and $19,000,000 for 
planning and design for future burial space expansion, and 
instead appropriated those sums directly to ANC through the 
``Department of Defense--Civil, Cemeterial Expenses, Army'' 
account in title III, Related Agencies, of this act.
    In addition, the Committee has included an administrative 
provision in title I of this act prohibiting the use of any 
funds appropriated under this title for military construction 
activities at Arlington National Cemetery.
    West Point Cadet Barracks.--The budget request includes 
$192,000,000 for a new 650-bed cadet barracks at the U.S. 
Military Academy at West Point, New York. The Committee has 
certain reservations about this project in the context of 
overall barracks deficiencies at West Point, and recommends 
funding the project in increments to allow design modifications 
as warranted. The Committee recommendation includes $86,000,000 
for the first increment, which is the amount Army officials 
determined fulfills the requirement for fiscal year 2013.
    The Committee recognizes the importance and historical 
significance of West Point, and strongly believes that cadet 
barracks must provide both adequate space and suitable living 
conditions for each resident. The Committee also understands 
that, given the traditions of West Point, it is important to 
maintain the appropriate style and facade of new construction, 
and to ensure that cadet barracks are centrally located to 
allow for daily formations and proximity to classrooms. As a 
result of those constraints, the only apparent suitable site 
for the new barracks presents construction challenges that 
significantly drive up the cost of construction. Seismic and 
antiterrorism/force protection requirements add further to 
construction costs.
    While the Committee understands these constraints, it 
directs the Army to re-evaluate space and design requirements 
for the new barracks to ensure that the Army is not 
overbuilding or overdesigning, and that the barracks will be 
sized appropriately to address only the estimated barracks 
deficit based on the statutory cap of 4,400 cadets at West 
Point, or any pending modification of that requirement. This is 
an extremely important consideration at a time when the Army is 
facing significant reductions in its end-strength, which will 
impact the number of new officers required annually to meet the 
Army's needs.
    Additionally, the Committee urges the Army to develop a 
recapitalization plan for the existing barracks that alleviates 
the current overcrowding of the dorms without waiting for 
completion of the new barracks to address this problem. 
Committee staff traveled to West Point in April 2012 to assess 
the requirement for the new barracks as well as the condition 
of existing barracks. Tours of three of the nine cadet barracks 
revealed substandard and potentially unsafe living conditions, 
including overcrowding, interior water damage, peeling paint, 
electrical deficiencies, and general neglect of the facilities. 
These deficiencies are inexcusable, and the Army's plan to 
defer renovations until 2018, when the new barracks will be 
completed and can be used for swing space, is unacceptable.
    Between fiscal years 2007 and 2010, the most recent years 
for which the Army has comparative data, West Point spent a 
total of $219,233,040 in sustainment, restoration, and 
modernization [SRM] funding, of which only $20,385,714--less 
than 10 percent of the total--was used for cadet barracks 
upkeep and modernization. However, the Army's barracks 
renovation plan for West Point calls for a nine-phase, 
$642,000,000 program beginning in 2018 with renovation 
timelines and funding requirements assumed to be one building 
per year. Given the current level of annual SRM funding for 
West Point, which has averaged about $55,000,000 per year over 
the past 6 years, the Committee is skeptical of the Army's 
ability to adequately fund the renovation plan.
    In sum, the Committee supports the Army's efforts to reduce 
overcrowding and improve living conditions at cadet barracks, 
but it questions the Army's priorities in deferring the start 
of renovations to existing dorms for a minimum of 5 years to 
give precedence to the construction of a new barracks, 
particularly given that West Point has managed to accommodate 
the cadets in the nine existing barracks for the past 40 years 
without requesting additional barracks construction.
    The Committee, therefore, directs the Army to provide a 
report to the congressional defense committees no later than 
March 25, 2013, on the feasibility of renovating existing cadet 
barracks in phases, such as one wing of a building at a time, 
in tandem with construction of the new barracks. The report 
should include cost and timetable estimates, and a plan for 
housing displaced cadets during the renovation process.

              Military Construction, Navy and Marine Corps

Appropriations, 2012....................................  $2,112,823,000
Budget estimate, 2013...................................   1,701,985,000
Committee recommendation................................   1,650,240,000

                          PROGRAM DESCRIPTION

    The Military Construction appropriation for the Navy and 
Marine Corps provides for acquisition, construction, 
installation, and equipment of temporary or permanent public 
works, naval installations, facilities, and real property for 
the Navy and the Marine Corps. This appropriation also provides 
for facilities required as well as funds for infrastructure 
projects and programs required to support bases and 
installations around the world.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $1,650,240,000 for Navy and Marine 
Corps military construction for fiscal year 2013. This amount 
is $462,583,000 below the fiscal year 2012 enacted level, and 
$51,745,000 below the budget request. Further detail of the 
Committee's recommendation is provided in the State table at 
the end of this report.
    Investment in Navy Public Shipyards.--In the Senate 
Committee report accompanying the Military Construction and 
Veterans Affairs, and Related Agencies Appropriations Act for 
Fiscal Year 2012, the Committee urged the Navy to evaluate and 
accelerate military construction projects in the Future Years 
Defense Program that could improve the safety, effectiveness, 
or efficiency of the work performed at the Navy's public 
shipyards. However, the budget request for fiscal year 2013 
includes only one military construction project at a Navy 
shipyard. To ensure the Committee's concerns are sufficiently 
addressed, the Committee directs the Secretary of the Navy to 
report to the Committees on Appropriations of both Houses of 
Congress, within 60 days of enactment of this act, on the 
Department's review and evaluation of military construction 
projects that could be accelerated to improve the safety, 
effectiveness, or efficiency of the work performed at the 
Navy's public shipyards.

                    Military Construction, Air Force

Appropriations, 2012....................................  $1,227,058,000
Budget estimate, 2013...................................     388,200,000
Committee recommendation................................     322,543,000

                          PROGRAM DESCRIPTION

    The military construction appropriation for the Air Force 
provides for acquisition, construction, installation, and 
equipment of temporary or permanent public works, military 
installations, facilities, and real property for the Air Force. 
This appropriation also provides for facilities required as 
well as funds for infrastructure projects and programs required 
to support bases and installations around the world.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $322,543,000 for the Air Force in 
fiscal year 2013. This amount is $904,515,000 below the fiscal 
year 2012 enacted level, and $65,657,000 below the budget 
request. Further detail of the Committee's recommendation is 
provided in the State table at the end of this report.
    STRATCOM Headquarters.--The Committee fully supports the 
construction of a new Strategic Command [STRATCOM] headquarters 
at Offutt Air Force Base, Nebraska, a $564,000,000 project, and 
appropriated the first increment of $120,000,000 in fiscal year 
2012. However, contract award delays have resulted in no 
military construction funding being obligated to date. It is 
the practice of the Committee to provide incremental funding 
for large projects to ensure that only sufficient funds will be 
appropriated annually to ensure execution in the year of 
appropriation. Given the construction award delay, the Air 
Force has indicated that no more than $128,000,000 will be 
required in fiscal year 2013. Therefore, the Committee 
recommends funding for increment 2 of the STRATCOM Headquarters 
at $128,000,000, instead of the requested amount of 
$161,000,000. The Air Force has also assured the Committee that 
incremental funding has not, and will not, delay the completion 
of this project.
    Quality of Life.--Enhancing the quality of life for 
military families is one of the Committee's highest priorities. 
Despite current budgetary pressures on the services, the 
Committee recognizes the need to continue to focus on promoting 
military construction projects that support the quality of life 
of our servicemembers and their families. Given the steep 
reduction in military construction funding for the Air Force, 
the Committee is particularly concerned about the 
prioritization of resources for improving and maintaining the 
quality of life at Air Force installations, including housing, 
support services, and transportation improvements. In light of 
the recent spike in gasoline prices, the Committee believes 
that efforts to improve transportation flow and reduce 
commuting times for military personnel and their families 
should receive special consideration. The Committee strongly 
urges the Air Force to prioritize those projects that will 
improve the quality of life for servicemembers and military 
families on and around Air Force installations, especially 
those installations supporting major commands and numbered Air 
Forces.
    Air Force Infrastructure Consolidation.--The Committee 
recognizes the Air Force's efforts to reduce overhead 
throughout its budget. As the Air Force continues to scrutinize 
its infrastructure for savings, the Committee recommends that 
the Air Force pay special attention to consolidating 
infrastructure and commands on its installations, including, 
but not limited to, communications, civil engineering, and 
administrative facilities.
    Aerospace Control Alert Facilities.--Aerospace Control 
Alert facilities contribute to the safety and security of our 
Nation. The Air Force squadrons that sit alert at these 
facilities spend 24 hours a day, 7 days a week, on standby in 
order to provide that protection to the Nation's critical 
infrastructure, often in substandard temporary facilities. The 
Committee encourages the Air Force to accelerate the planned 
permanent construction of all alert facilities that are 
currently composed of substandard mobile and modular building 
units.

                  Military Construction, Defense-Wide


                     (INCLUDING TRANSFER OF FUNDS)

Appropriations, 2012....................................  $3,431,957,000
Budget estimate, 2013...................................   3,654,623,000
Committee recommendation................................   3,442,123,000

                          PROGRAM DESCRIPTION

    The military construction appropriation for the Department 
of Defense provides for acquisition, construction, 
installation, and equipment of temporary or permanent public 
works, military installations, facilities, and real property 
Defense-Wide. This appropriation also provides for facilities 
required as well as funds for infrastructure projects and 
programs required to support bases and installations around the 
world.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $3,442,123,000 for projects 
considered within the ``Defense-Wide'' account in fiscal year 
2013. This amount is $10,166,000 above the fiscal year 2012 
enacted level and $212,500,000 below the budget request. 
Further detail of the Committee's recommendation is provided in 
the State table at the end of this report.
    Fort Bragg Infrastructure Project.--The Committee 
recommendation includes funding increases totaling $30,000,000 
for three Special Operations Command [SOCOM] projects included 
in the budget request at Fort Bragg, North Carolina: Battalion 
Operations Facility, Civil Affairs Battalion Complex, and 
Sustainment Brigade Complex. The purpose of the additional 
funding is to incorporate related utility and road 
infrastructure improvements into each of the projects instead 
of funding the infrastructure as a $30,000,000 stand-alone Army 
project, as requested in the budget submission. The Committee 
is concerned that the requested stand-alone project does not 
yield a complete and useable facility. Therefore, the Committee 
recommendation does not include funding for the infrastructure 
project as requested in the Army military construction account 
and instead distributes the $30,000,000 among the three SOCOM 
projects in equal amounts of $10,000,000 each in the Defense-
Wide military construction account. The Committee directs SOCOM 
to update the project justification documents to incorporate 
the appropriate infrastructure element, and to submit a revised 
request for each of the SOCOM projects as soon as is 
practicable.
    Medical Centers and Family Pavilions.--The Committee notes 
that health facilities on many installations that have 
experienced rapid growth in recent years, including newly 
aligned joint bases, are inadequate to meet the needs of the 
increased number of servicemembers and their families seeking 
medical resources. The military services' surgeons general 
should work with their Installation Management Commands to 
ensure that the appropriate family, maternal, and infant 
healthcare facilities are incorporated into and prioritized in 
the overall construction budget of growth bases. These 
construction budgets should reflect the need for additional 
capacity to provide medical care for servicemembers, their 
families, and their children.

                        CONTINGENCY CONSTRUCTION

    The Committee has provided $10,000,000 for the Secretary of 
Defense ``Contingency Construction'' account, equal to the 
request. This account provides funds which may be used by the 
Secretary of Defense for unforeseen facility requirements and 
military exercises, including those related to overseas 
contingency operations.

                 ENERGY CONSERVATION INVESTMENT PROGRAM

    The Committee recommends the requested level of 
$150,000,000 for the Energy Conservation Investment Program 
[ECIP]. The Committee also recommends a transfer of $10,000,000 
from unspecified Defense-Wide planning and design into a 
separate line item for ECIP planning and design to ensure that 
adequate funds are available for future ECIP project planning.
    ECIP is the only dedicated stream of funding for energy 
projects within DOD. Historically, ECIP has funded small 
projects with rapid payback. As DOD moves more aggressively to 
develop renewable energy resources and improve energy security, 
ECIP is emerging as a major tool to leverage investment in 
larger projects, such as net-zero energy facilities or smart 
grid technologies, that are intended to produce significant 
improvements in energy consumption, costs, and security at 
single or multiple installations. The Committee encourages the 
Department to continue using ECIP funds to leverage investments 
in game-changing major energy projects, particularly renewable 
energy initiatives.
    The Committee notes that, in addition to ECIP funding, the 
fiscal year 2013 budget request includes two projects in the 
major construction program intended primarily to improve energy 
efficiency and security (an Army-funded ground source heat 
transfer system at Fort Benning, Georgia, and a Navy-funded 
remotely controlled electrical distribution system at Diego 
Garcia). The Committee believes that energy efficiency, energy 
security, and renewable energy investments are mission-critical 
requirements to reduce DOD's dependence on costly and 
potentially unreliable sources of commercial energy, and 
encourages the services and the defense agencies to 
aggressively pursue opportunities to include projects designed 
to improve installation energy efficiency and security in their 
major construction programs as well as through ECIP.

               Military Construction, Reserve Components

Appropriations, 2012....................................  $1,230,306,000
Budget estimate, 2013...................................   1,022,542,000
Committee recommendation................................   1,022,542,000

                          PROGRAM DESCRIPTION

    The military construction appropriation for Reserve 
components provides for acquisition, construction, expansion, 
rehabilitation, and conversion of facilities for the training 
and administration of the Reserve components. This 
appropriation also provides for facilities required as well as 
funds for infrastructure projects and programs required to 
support bases and installations.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $1,022,542,000 for military 
construction projects for the Guard and Reserve components for 
fiscal year 2013. This amount is $207,764,000 below the fiscal 
year 2012 enacted level and equal to the budget request. 
Further detail of the Committee's recommendation is provided in 
the State table at the end of this report.
    The Committee recommends approval of military construction, 
Reserve components, as outlined in the following table:

                           RESERVE COMPONENTS
------------------------------------------------------------------------
                                                            Committee
               Component                 Budget request   recommendation
------------------------------------------------------------------------
Army National Guard...................     $613,799,000     $613,799,000
Air National Guard....................       42,386,000       42,386,000
Army Reserve..........................      305,846,000      305,846,000
Navy Reserve..........................       49,532,000       49,532,000
Air Force Reserve.....................       10,979,000       10,979,000
                                       ---------------------------------
      Total...........................    1,022,542,000    1,022,542,000
------------------------------------------------------------------------

    Army Guard Training Facilities.--The need to reduce the 
Army-wide backlog of soldiers currently on the waiting list in 
the Non-Commissioned Officer Education System [NCOES] is 
crucial. Therefore, the Committee requests the Department of 
the Army to continue expansion and development of National 
Guard training facilities that serve active duty, guard, and 
reserve members. Priority should be given to schools considered 
Centers of Excellence for critical military occupational 
specialties.
    Army Guard Readiness Centers.--The Committee is aware that 
approximately 40 percent of Army National Guard readiness 
centers are more than 50 years old. These facilities require 
renovation or replacement in order to meet the needs of 
training and maintaining a 21st century operational force. 
Unfortunately, DOD investment in Army Guard construction 
projects lags far behind the requirement. The Committee urges 
the Army to re-evaluate its investment plan for Army National 
Guard construction projects to ensure that all projects 
included in the Infrastructure Requirements Plan are maintained 
in the Future Years Defense Program.

                   North Atlantic Treaty Organization


                      SECURITY INVESTMENT PROGRAM

Appropriations, 2012....................................    $247,611,000
Budget estimate, 2013...................................     254,163,000
Committee recommendation................................     254,163,000

                          PROGRAM DESCRIPTION

    The North Atlantic Treaty Organization [NATO] appropriation 
provides for the U.S. cost share of the NATO 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 NATO Treaty area.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $254,163,000 for the North 
Atlantic Treaty Organization Security Investment Program [NSIP] 
for fiscal year 2013 as requested. This amount is $6,552,000 
above the fiscal year 2012 enacted level and equal to the 
budget request.

                        Family Housing Overview

Appropriations, 2012....................................  $1,682,946,000
Budget estimate, 2013...................................   1,650,781,000
Committee recommendation................................   1,650,781,000

                          PROGRAM DESCRIPTION

    The Family Housing appropriation provides funds for 
military family housing construction activities, operation and 
maintenance, the Family Housing Improvement Fund, and the 
Homeowners Assistance Program. Construction accounts provide 
funding for new construction, improvements and the Federal 
Government share of housing privatization. Operation and 
maintenance accounts fund costs associated with the maintenance 
and leasing of military family housing, including utilities, 
services, management, and furnishings.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $1,650,781,000 for Family Housing 
Construction, Operations and Maintenance, and the Department's 
family housing improvement fund for fiscal year 2013. This 
amount is $32,165,000 below the fiscal year 2012 enacted level 
and equal to the budget request.

                   Family Housing Construction, Army

Appropriations, 2012....................................    $176,897,000
Budget estimate, 2013...................................       4,641,000
Committee recommendation................................       4,641,000

                          PROGRAM DESCRIPTION

    The family housing appropriation for the Army provides for 
expenses of family housing for construction, including 
acquisition, replacement, addition, expansion, extension, and 
alteration. This appropriation provides for the financing of 
all costs for construction, improvements, and leasing of all 
Army housing. In addition to quality-of-life enhancements, the 
program contains initiatives to reduce operating costs and 
conserve energy by upgrading or replacing facilities which can 
be made more efficient through relatively modest investments in 
improvements. The Department of Defense is authorized to use 
limited partnerships, make direct and guaranteed loans, and 
convey Department-owned property to stimulate the private 
sector to increase the availability of affordable, quality 
housing for the Army.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $4,641,000 for Army Family Housing 
Construction in fiscal year 2013, an amount equal to the budget 
request and $172,256,000 below the fiscal year 2012 enacted 
level, a decrease of 97.5 percent. This reduction reflects the 
completion of the Army's scheduled housing privatization 
through the Residential Community Initiative [RCI], and the 
elimination of inadequate housing stock. Accordingly, fiscal 
year 2013 funding is for planning and design purposes only. The 
Committee encourages the Army to evaluate the effect that the 
planned reduction in Army force structure will have on the 
occupancy and viability of its privatized family housing 
projects.

             Family Housing Operation and Maintenance, Army

Appropriations, 2012....................................    $493,458,000
Budget estimate, 2013...................................     530,051,000
Committee recommendation................................     530,051,000

                          PROGRAM DESCRIPTION

    The family housing operation and maintenance appropriation 
for the Army provides for the operation and maintenance of 
family housing. This includes debt payment, leasing, minor 
construction, principal and interest charges, and insurance 
premiums of Army family housing.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $530,051,000 for family housing 
operation and maintenance, Army for fiscal year 2013. This 
amount is $36,593,000 above the fiscal year 2012 enacted level 
and equal to the budget request.

           Family Housing Construction, Navy and Marine Corps

Appropriations, 2012....................................    $100,972,000
Budget estimate, 2013...................................     102,182,000
Committee recommendation................................     102,182,000

                          PROGRAM DESCRIPTION

    The family housing appropriation for the Navy and Marine 
Corps provides for expenses of family housing for construction, 
including acquisition, replacement, addition, expansion, 
extension, and alteration. This appropriation provides for the 
financing of all costs for construction, improvements, and 
leasing of all Navy and Marine Corps housing. In addition to 
quality-of-life enhancements, the program contains initiatives 
to reduce operating costs and conserve energy by upgrading or 
replacing facilities which can be made more efficient through 
relatively modest investments in improvements. The Department 
of Defense is authorized to use limited partnerships, make 
direct and guaranteed loans, and convey Department-owned 
property to stimulate the private sector to increase the 
availability of affordable, quality housing for the Navy and 
Marine Corps.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $102,182,000 for Family Housing 
Construction, Navy and Marine Corps, including construction 
improvements, in fiscal year 2013. This amount is $1,210,000 
above the fiscal year 2012 enacted level and equal to the 
budget request.

                              CONSTRUCTION

    The Committee recommends $4,527,000 for planning and design 
for new construction.

                       CONSTRUCTION IMPROVEMENTS

    The following projects are to be accomplished within the 
amounts provided for construction improvements:

                                                     NAVY AND MARINE CORPS CONSTRUCTION IMPROVEMENTS
                                                                [In thousands of dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                             Committee
                Location                          Installation                           Project title                    Budget request  recommendation
--------------------------------------------------------------------------------------------------------------------------------------------------------
Washington..............................  NAVSUBASE, West Sound......  Northwest Region Privatization PH II.............          27,500          27,500
Guam....................................  NAVBASE, Guam..............  Revitalize Family Housing--Enlisted and Officer..          28,831          28,831
Japan...................................  NAF Atsugi.................  Revitalize Family Housing--Enlisted and Officer..          14,025          14,025
Japan...................................  CFA Yokosuka...............  Revitalize Family Housing--Enlisted and Officer..           7,874           7,874
Japan...................................  MCAS Iwakuni...............  Revitalize Family Housing--Enlisted..............          17,510          17,510
Japan...................................  MCAS Iwakuni...............  Family Housing Site Improvements.................           1,915           1,915
                                                                                                                         -------------------------------
      Total.............................  ...........................  .................................................          97,655          97,655
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Family Housing Operation and Maintenance, Navy and Marine Corps

Appropriations, 2012....................................    $367,863,000
Budget estimate, 2013...................................     378,230,000
Committee recommendation................................     378,230,000

                          PROGRAM DESCRIPTION

    The family housing operation and maintenance appropriation 
for the Navy and Marine Corps provides for the operation and 
maintenance of family housing. This includes debt payment, 
leasing, minor construction, principal and interest charges, 
and insurance premiums of Navy and Marine Corps family housing.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $378,230,000 for family housing 
operation and maintenance, Navy and Marine Corps, in fiscal 
year 2013. This amount is $10,367,000 above the fiscal year 
2012 enacted level and equal to the budget request.

                 Family Housing Construction, Air Force

Appropriations, 2012....................................     $60,042,000
Budget estimate, 2013...................................      83,824,000
Committee recommendation................................      83,824,000

                          PROGRAM DESCRIPTION

    The family housing appropriation for the Air Force provides 
for expenses of family housing for construction, including 
acquisition, replacement, addition, expansion, extension, and 
alteration. This appropriation provides for the financing of 
all costs for construction, improvements and leasing of all Air 
Force housing. In addition to quality-of-life enhancements, the 
program contains initiatives to reduce operating costs and 
conserve energy by upgrading or replacing facilities which can 
be made more efficient through relatively modest investments in 
improvements. The Department of Defense is authorized to use 
limited partnerships, make direct and guaranteed loans, and 
convey Department-owned property to stimulate the private 
sector to increase the availability of affordable, quality 
housing for the Air Force.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $83,824,000 for Family Housing 
Construction, Air Force, in fiscal year 2013. This amount is 
$23,782,000 above the fiscal year 2012 enacted level and equal 
to the budget request.

                              CONSTRUCTION

    The Committee recommends $4,253,000 for planning and design 
for new construction.

                       CONSTRUCTION IMPROVEMENTS

    The following projects are to be accomplished within the 
amounts provided for construction improvements:

                                                           AIR FORCE CONSTRUCTION IMPROVEMENTS
                                                                [In thousands of dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                             Committee
                Location                            Installation                            Project title                 Budget request  recommendation
--------------------------------------------------------------------------------------------------------------------------------------------------------
Japan...................................  Kadena AB.......................  Improve Infrastructure, Phase 2.............          32,558          32,558
Japan...................................  Misawa AB.......................  Improve Military Family Housing                       30,090          30,090
                                                                             Infrastructure, Phase 2.
Japan...................................  Misawa AB.......................  Improve Family Housing (416 units)..........          16,923          16,923
                                                                                                                         -------------------------------
      Total.............................  ................................  ............................................          79,571          79,571
--------------------------------------------------------------------------------------------------------------------------------------------------------

          Family Housing Operation and Maintenance, Air Force

Appropriations, 2012....................................    $429,523,000
Budget estimate, 2013...................................     497,829,000
Committee recommendation................................     497,829,000

                          PROGRAM DESCRIPTION

    The family housing operation and maintenance appropriation 
for the Air Force provides for the operation and maintenance of 
family housing. This includes debt payment, leasing, minor 
construction, principal and interest charges, and insurance 
premiums of Air Force family housing.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $497,829,000 for family housing 
operation and maintenance, Air Force, in fiscal year 2013. This 
amount is $68,306,000 above the fiscal year 2012 enacted level 
and equal to the budget request.

         Family Housing Operation and Maintenance, Defense-Wide

Appropriations, 2012....................................     $50,723,000
Budget estimate, 2013...................................      52,238,000
Committee recommendation................................      52,238,000

                          PROGRAM DESCRIPTION

    The Family Housing Operation and Maintenance appropriation 
for Defense-Wide provides for the operation and maintenance of 
family housing. This includes debt payment, leasing, minor 
construction, principal and interest charges, and insurance 
premiums of Defense family housing.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $52,238,000 for family housing 
operation and maintenance, Defense-Wide, for fiscal year 2013. 
This amount is $1,515,000 above the fiscal year 2012 enacted 
level and equal to the budget request.

                    Family Housing Improvement Fund

Appropriations, 2012....................................      $2,184,000
Budget estimate, 2013...................................       1,786,000
Committee recommendation................................       1,786,000

                          PROGRAM DESCRIPTION

    The family housing improvement appropriation provides for 
the Department of Defense to undertake housing initiatives and 
to provide an alternative means of acquiring and improving 
military family housing and supporting facilities. This account 
provides seed money for housing privatization initiatives.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $1,786,000 for the Family Housing 
Improvement Fund for fiscal year 2013. This amount is $398,000 
below the fiscal year 2012 enacted level and equal to the 
budget request.

                       Homeowners Assistance Fund

Appropriations, 2012....................................      $1,284,000
Budget estimate, 2013...................................................
Committee recommendation................................................

                          PROGRAM DESCRIPTION

    The Homeowners Assistance Program [HAP] provides funds to 
assist eligible military personnel and civilian Federal 
employee homeowners who sustain a loss on the sale of their 
primary residence due to a declining residential real estate 
market attributable to the closure or realignment of a military 
installation. In Public Law 111-5, the American Recovery and 
Reinvestment Act of 2009, the HAP was expanded to provide 
mortgage relief to wounded warriors and spouses of fallen 
warriors, and to provide temporary mortgage relief to all 
military and qualified civilian personnel required by the 
Department to relocate who sustained losses on the sale of 
their homes due to the mortgage crisis. Program expenses 
include payments to homeowners for losses on private sales; 
cost of judicial foreclosure; property acquisition by 
liquidating and/or assuming outstanding mortgages; partial 
payment of homeowners' lost equity on Government acquisitions; 
retirement of debt after sale of properties when the Government 
assumes mortgages; and administrative expenses.

                        COMMITTEE RECOMMENDATION

    The Department of Defense requested no funding for the 
Homeowners Assistance Program for fiscal year 2013. The 
Committee recommendation, therefore, does not include any 
funding for this account for fiscal year 2013. According to 
justification data provided by the Department, sufficient 
balances from previous appropriations and revenue generated 
from the sale of Government-owned homes remain available in the 
HAP account to fund current year program expenses, which 
include payments-in-progress and pending claims.

          Chemical Demilitarization Construction, Defense-Wide

Appropriations, 2012....................................     $75,312,000
Budget estimate, 2013...................................     151,000,000
Committee recommendation................................     151,000,000

                          PROGRAM DESCRIPTION

    This account provides funding for design and construction 
of full-scale chemical disposal facilities and associated 
projects to upgrade installation support facilities and 
infrastructure required to support the Chemical 
Demilitarization Program. This account was established starting 
in fiscal year 2005 to comply with section 141(b) of the fiscal 
year 2003 National Defense Authorization Act.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $151,000,000 for chemical 
demilitarization construction projects for fiscal year 2013, an 
increase of $75,688,000 above the fiscal year 2012 enacted 
level and equal to the budget request.
    The Committee continues to urge the Department to take all 
necessary and appropriate steps to dispose of the U.S. chemical 
weapons stockpile by the 2012 Chemical Weapons Convention 
deadline and, under no circumstances, later than 2017 
consistent with section 8119 of Public Law 110-116. In light of 
the need for the Department to carry out its mission promptly 
and safely, it will need to provide close oversight over the 
execution of contracts at the chemical demilitarization sites 
to ensure funds are spent prudently and efficiently. The 
Committee will continue to monitor closely the Department's 
compliance with both deadlines.

                       Base Closure Account 1990

Appropriations, 2012....................................    $323,543,000
Budget estimate, 2013...................................     349,396,000
Committee recommendation................................     349,396,000

                          PROGRAM DESCRIPTION

    The base closure appropriation (1990) provides for cleanup 
and disposal of property consistent with the four closure 
rounds required by the base closure acts of 1988 and 1990.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a total of $349,396,000 for the 
Base Closure Account 1990 for fiscal year 2013. This amount is 
$25,853,000 above the fiscal year 2012 enacted level and equal 
to the budget request.

            BASE CLOSURE ACCOUNT 1990 ENVIRONMENTAL OVERVIEW

    From fiscal year 1990 through fiscal year 2012, a total of 
$25,654,383,000 has been appropriated for the environmental 
cleanup of military installations closed or realigned under 
prior BRAC rounds. The cumulative amount appropriated for BRAC 
1990, combined with the Committee recommendation for fiscal 
year 2013, is $26,003,779,000.
    In appropriating these funds, the Committee continues to 
provide the Department with broad flexibility to allocate funds 
by service, function, and installation. The following table 
displays the total amount appropriated for each round of prior 
base closures, including amounts recommended for fiscal year 
2013 for BRAC 1990.

                                            BASE CLOSURE ACCOUNT 1990
                           [Total funding, fiscal year 1990 through fiscal year 2013]
----------------------------------------------------------------------------------------------------------------
                                                                      Fiscal year
                                                        --------------------------------------
                                          1990-2011                           2013 Committee         Total
                                                            2012 enacted      recommendation
----------------------------------------------------------------------------------------------------------------
Part I..............................     $2,684,577,000              (\1\)              (\1\)     $2,684,577,000
Part II.............................      4,915,636,000              (\1\)              (\1\)      4,915,636,000
Part III............................      7,269,267,000              (\1\)              (\1\)      7,269,267,000
Part IV.............................     10,461,360,000       $323,543,000       $349,396,000     11,134,299,000
                                     ---------------------------------------------------------------------------
      Total.........................     25,330,840,000        323,543,000        349,396,000    26,003,779,000
----------------------------------------------------------------------------------------------------------------
\1\Not applicable.

                       Base Closure Account 2005

Appropriations, 2012....................................    $258,776,000
Budget estimate, 2013...................................     126,697,000
Committee recommendation................................     126,697,000

                          PROGRAM DESCRIPTION

    The base realignment and closure appropriation for 2005 
provides for cleanup and disposal of property consistent with 
the 2005 closure round required by the Defense Base Closure and 
Realignment Act of 1990 (10 U.S.C. 2687 note).

                        COMMITTEE RECOMMENDATION

    The Committee recommends a total of $126,697,000 for the 
Department of Defense Base Closure Account 2005 for fiscal year 
2013. This amount is $132,079,000 below the fiscal year 2012 
enacted level and equal to the budget request. Funds provided 
for fiscal year 2013 are for environmental cleanup and ongoing 
operations and maintenance.

                       Administrative Provisions

    Sec. 101. The Committee includes a provision that restricts 
payments under a cost-plus-a-fixed-fee contract for work, 
except in cases of contracts for environmental restoration at 
base closure sites.
    Sec. 102. The Committee includes a provision that permits 
use of funds for hire of passenger motor vehicles.
    Sec. 103. The Committee includes a provision that permits 
use of funds for defense access roads.
    Sec. 104. The Committee includes a provision that prohibits 
construction of new bases inside the continental United States 
for which specific appropriations have not been made.
    Sec. 105. The Committee includes a provision that limits 
the use of funds for purchase of land or land easements.
    Sec. 106. The Committee includes a provision that 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.
    Sec. 107. The Committee includes a provision that limits 
the use of minor construction funds to transfer or relocate 
activities among installations.
    Sec. 108. The Committee includes a provision that prohibits 
the procurement of steel unless American producers, 
fabricators, and manufacturers have been allowed to compete.
    Sec. 109. The Committee includes a provision that prohibits 
payments of real property taxes in foreign nations.
    Sec. 110. The Committee includes a provision that prohibits 
construction of new bases overseas without prior notification.
    Sec. 111. The Committee includes a provision that 
establishes a threshold for American preference of $500,000 
relating to architect and engineering services for overseas 
projects.
    Sec. 112. The Committee includes a provision that 
establishes preference for American contractors for military 
construction in the United States territories and possessions 
in the Pacific, and on Kwajalein Atoll, or in countries 
bordering the Arabian Sea.
    Sec. 113. The Committee includes a provision that requires 
notification of military exercises involving construction in 
excess of $100,000.
    Sec. 114. The Committee includes a provision that limits 
obligations during the last 2 months of the fiscal year.
    Sec. 115. The Committee includes a provision that permits 
funds appropriated in prior years to be available for 
construction authorized during the current session of Congress.
    Sec. 116. The Committee includes a provision that permits 
the use of expired or lapsed funds to pay the cost of 
supervision for any project being completed with lapsed funds.
    Sec. 117. The Committee includes a provision that permits 
obligation of funds from more than 1 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.
    Sec. 118. The Committee includes a provision that allows 
transfer of proceeds from earlier base closure accounts to the 
continuing base closure account (1990, parts I-IV).
    Sec. 119. The Committee includes a provision that permits 
the transfer of funds from Family Housing Construction accounts 
to the DOD Family Housing Improvement Fund and from Military 
Construction accounts to the DOD Military Unaccompanied Housing 
Improvement Fund.
    Sec. 120. The Committee includes a provision that provides 
transfer authority to the Homeowners Assistance Fund.
    Sec. 121. The Committee includes a provision that requires 
that all acts making appropriations for military construction 
be the sole funding source of all operation and maintenance for 
family housing, including flag and general officer quarters, 
and limits the repair on flag and general officer quarters to 
$35,000 per unit per year without prior notification to the 
congressional defense committees.
    Sec. 122. The Committee includes a provision that provides 
authority to expend funds from the ``Ford Island Improvement'' 
account.
    Sec. 123. The Committee includes a provision that prohibits 
the expenditure of funds at installations or for projects no 
longer necessary as a result of BRAC 2005.
    Sec. 124. The Committee includes a provision that allows 
the transfer of expired funds to the Foreign Currency 
Fluctuation, Construction, Defense Account.
    Sec. 125. The Committee includes a provision that allows 
the reprogramming of military construction and family housing 
construction funds among projects and activities within the 
account in which they are funded.
    Sec. 126. The Committee includes a provision that prohibits 
the obligation or expenditure of funds under this title for 
planning and design and construction projects at Arlington 
National Cemetery.

                                TITLE II

                     DEPARTMENT OF VETERANS AFFAIRS

                       Items of Special Interest

                                HEARINGS

    The Subcommittee on Military Construction and Veterans 
Affairs, and Related Agencies held one hearing related to the 
fiscal year 2013 Department of Veterans Affairs [VA] budget 
request on March 15, 2012. The subcommittee heard testimony 
from the Honorable Eric Shinseki, Secretary of the Department 
of Veterans Affairs.

                  SUMMARY OF COMMITTEE RECOMMENDATIONS

    The Committee recommendation includes $135,636,648,000 for 
the Department of Veterans Affairs for fiscal year 2013, 
including $74,638,167,000 in mandatory spending and 
$60,998,481,000 in discretionary spending. The Committee also 
recommends $54,462,000,000 in advance appropriations for 
veterans medical care for fiscal year 2014.

                          DEPARTMENT OVERVIEW

    The Veterans Administration was established on July 21, 
1930, as an independent agency by Executive Order 5398, in 
accordance with the Act of July 3, 1930 (46 Stat. 1016). This 
act authorized the President to consolidate and coordinate 
Federal agencies specially created for or concerned with the 
administration of laws providing benefits to veterans, 
including the Veterans' Bureau, the Bureau of Pensions, and the 
National Home for Disabled Volunteer Soldiers. On March 15, 
1989, the Veterans Administration was elevated to Cabinet-level 
status as the Department of Veterans Affairs.
    The VA's mission is to serve America's veterans and their 
families as their principal advocate in ensuring they receive 
the care, support, and recognition they have earned in service 
to the Nation. As of September 30, 2011, there were an 
estimated 22.2 million living veterans, with 22.1 million of 
them residing in the United States and Puerto Rico. There were 
an estimated 34 million dependents (spouses and dependent 
children) of living veterans in the United States and Puerto 
Rico, and there were 540,000 survivors of deceased veterans 
receiving VA survivor benefits in the United States and Puerto 
Rico. Thus, more than 56.6 million people, or 18 percent of the 
total estimated resident population of the United States and 
Puerto Rico, were recipients or potential recipients of 
veterans benefits from the Federal Government. The VA's 
operating units include the Veterans Benefits Administration, 
Veterans Health Administration, National Cemetery 
Administration, and staff support offices.
    The Veterans Benefits Administration [VBA] provides an 
integrated program of nonmedical veterans benefits. The VBA 
administers a broad range of benefits to veterans and other 
eligible beneficiaries through 57 regional offices and a 
records processing center in St. Louis, Missouri. The benefits 
provided include: compensation for service-connected 
disabilities; pensions for wartime, needy, and totally disabled 
veterans; vocational rehabilitation assistance; educational and 
training assistance; home buying assistance; estate protection 
services for veterans under legal disability; information and 
assistance through personalized contacts; and six life 
insurance programs.
    The Veterans Health Administration [VHA] develops, 
maintains, and operates a national healthcare delivery system 
for eligible veterans; carries out a program of education and 
training of healthcare personnel; conducts medical research and 
development; and furnishes health services to members of the 
Armed Forces during periods of war or national emergency. A 
system of 153 hospitals, 1,102 outpatient clinics and Vet 
Centers, 133 nursing homes, and 107 VA residential 
rehabilitation treatment programs is maintained to meet the 
VA's medical mission.
    The National Cemetery Administration [NCA] provides for the 
interment of the remains of eligible deceased servicemembers 
and discharged veterans in any national cemetery with available 
grave space; permanently maintains these graves; provides 
headstones and markers for the graves of eligible persons in 
national and private cemeteries; administers the grant program 
for aid to States in establishing, expanding, or improving 
State veterans cemeteries; and provides certificates to 
families of deceased veterans recognizing their contributions 
and service to the Nation. The National Cemetery Administration 
operates 131 national cemeteries and 33 soldiers' lots and 
monument sites.
    Staff support offices include the Office of Inspector 
General, Boards of Contract Appeals and Veterans Appeals, and 
General Administration offices, which support the Secretary, 
Deputy Secretary, Under Secretary for Benefits, Under Secretary 
for Health, Under Secretary for Memorial Affairs, and General 
Counsel.
    Budget Justifications.--Congressional budget justifications 
are developed each year by the Department to provide a more 
detailed explanation and supplemental information on the budget 
submission for a given fiscal year. The Committee utilizes this 
information to effectively and efficiently evaluate resource 
requirements and proposals requested by the administration. The 
Committee is concerned the justifications continue to lack 
specificity and the degree of detail needed to ensure informed 
and timely evaluation of requested funds and proper oversight 
of a Department the size of the VA. The Committee has included 
specific directions in the appropriate place within this report 
outlining the type of details future justifications should 
include.
    Multiple and Uncoordinated Veteran Employment Web Sites.--
In 2011, the unemployment rate among Operation Iraqi Freedom, 
Operation Enduring Freedom, and Operation New Dawn veterans was 
12 percent, four points higher than the average civilian 
unemployment rate. The unemployment rate of male veterans 
between ages 18-24 was 29 percent, almost double that of their 
civilian peers. There are currently over 847,000 unemployed 
veterans. While these numbers are declining, they remain 
staggering. Multiple Government agencies, including the 
Department of Veterans Affairs, Department of Defense, and 
Department of Labor possess resources aimed at enhancing 
veterans' transition into the civilian workforce.
    The Committee is concerned about multiple and uncoordinated 
job Web sites across the Government as well as the absence of a 
single coordinating actor or agency for leading this effort. 
The Committee recommends the establishment of a single, 
coordinated portal that serves as a one-stop shop for veterans' 
job opportunities. This Web site should leverage existing 
technology developed by the private sector and Government 
agencies, be interoperable with existing private sector job 
resources, and provide servicemembers and veterans with skill 
and military occupational specialty translation services.
    The Committee directs the VA to submit to the Committees on 
Appropriations of both Houses of Congress, within 90 days of 
enactment of this act, a report outlining the feasibility and 
cost of developing and deploying a single Web site to serve as 
a central portal for military servicemembers and veterans' 
employment. This report should also identify all Government-
owned and operated or Government-owned and contractor-operated 
job listing Web sites. The report should assess the potential 
cost savings for eliminating duplicative veterans' employment 
Web sites across the Federal Government, including any within 
the Department of Labor, Department of Defense, Office of 
Personnel Management, and any other Federal agencies.
    Military and Civilian Skills Translation.--Currently, most 
servicemembers do not transition to civilian life with 
certifications for the job functions they completed in the 
military. The Department of Defense has traditionally viewed 
this as a retention issue, but in the face of looming force 
reductions, this is an immediate problem. The VOW to Hire 
Heroes Act took the first step in addressing this shortfall by 
requiring the Department of Veterans Affairs, in partnership 
with the Department of Defense and Department of Labor, to 
examine the issue.
    The Committee strongly urges the Department of Veterans 
Affairs to accelerate these efforts and ensure that as 
servicemembers separate, they possess either the credentials or 
precertification exam credit for the job functions for which 
they are qualified.

                    Veterans Benefits Administration

Appropriations, 2012.................................... $63,921,095,000
Budget estimate, 2013...................................  74,797,435,000
Committee recommendation................................  74,797,435,000

                        ADMINISTRATION OVERVIEW

    The Veterans Benefits Administration [VBA] is responsible 
for the payment of compensation and pension benefits to 
eligible service-connected disabled veterans, as well as 
education benefits and housing loan guarantees.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $74,797,435,000 for the Veterans 
Benefits Administration. This amount is composed of 
$61,741,232,000 for Compensation and pensions; $12,607,476,000 
for Readjustment benefits; $104,600,000 for Veterans insurance 
and indemnities; $184,859,000 for the Veterans housing benefit 
program fund, with $157,814,000 for administrative expenses; 
$19,000 for the Vocational rehabilitation loans program 
account, with $346,000 for administrative expenses; and 
$1,089,000 for the Native American veteran housing loan program 
account.

                       COMPENSATION AND PENSIONS

                     (INCLUDING TRANSFER OF FUNDS)

Appropriations, 2012.................................... $51,237,567,000
Budget estimate, 2013...................................  61,741,232,000
Committee recommendation................................  61,741,232,000

                          PROGRAM DESCRIPTION

    Compensation is payable to living veterans who have 
suffered impairment of earning power from service-connected 
disabilities. The amount of compensation is based upon the 
impact of disabilities on a veteran's earning capacity. Death 
compensation or dependency and indemnity compensation is 
payable to the surviving spouses and dependents of veterans 
whose deaths occur while on active duty or result from service-
connected disabilities. A clothing allowance may also be 
provided for service-connected veterans who use a prosthetic or 
orthopedic device. In fiscal year 2013, the Department 
estimates it will obligate $59,591,390,000 for payments to 
3,626,468 veterans, 356,796 survivors, and 1,151 dependents 
receiving special benefits.
    Pensions are an income security benefit payable to needy 
wartime veterans who are precluded from gainful employment due 
to nonservice-connected disabilities which render them 
permanently and totally disabled. Public Law 107-103, the 
Veterans Education and Benefits Expansion Act of 2001, restored 
the automatic presumption of permanent and total nonservice 
connected disability for purposes of awarding a pension to 
veterans age 65 and older, subject to the income limitations 
that apply to all pensioners. Death pensions are payable to 
needy surviving spouses and children of deceased wartime 
veterans. The rate payable for both disability and death 
pensions is determined on the basis of the annual income of the 
veteran or their survivors. In fiscal year 2013, the Department 
estimates that the Pensions program will provide benefits to 
314,154 veterans and 205,797 survivors totaling $4,931,133,000.
    The Compensation and Pensions program funds certain burial 
benefits on behalf of eligible deceased veterans. These 
benefits provide the purchase and transportation costs for 
headstones and markers, graveliners, and pre-placed crypts; and 
provides partial reimbursement for privately purchased outer 
burial receptacles. In fiscal year 2013, the Department 
estimates the Compensation and Pensions program will obligate 
$220,871,000 providing burial benefits. This funding will 
provide 47,605 burial allowances, 34,254 burial plot 
allowances, 17,680 service-connected death awards, 500,002 
burial flags, 350,027 headstones or markers, and 91,314 
graveliners or reimbursement for privately purchased outer 
burial receptacles.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $61,741,232,000 for Compensation 
and pensions. This is an increase of $10,503,665,000 above the 
fiscal year 2012 enacted level and equal to the budget request. 
In addition to the amounts provided to the VBA's Compensation 
and pensions account, the Department estimates it will carry 
forward into fiscal year 2013 $3,002,162,000 in unobligated 
balances. The Committee recommendation together with the 
anticipated unobligated balances will provide total resources 
of $64,743,394,000 for Compensation and pensions.
    The appropriation includes $9,204,000 in payments to the 
General operating expenses, veterans benefits administration; 
Medical support and compliance; and Information technology 
systems accounts for expenses related to implementing 
provisions of the Omnibus Budget Reconciliation Act of 1990, 
the Veterans' Benefits Act of 1992, the Veterans' Benefits 
Improvements Act of 1994, and the Veterans' Benefits 
Improvements Act of 1996.

                         READJUSTMENT BENEFITS

Appropriations, 2012.................................... $12,108,488,000
Budget estimate, 2013...................................  12,607,476,000
Committee recommendation................................  12,607,476,000

                          PROGRAM DESCRIPTION

    The Readjustment benefits appropriation finances the 
education and training of veterans and servicemembers under 
chapters 30, 31, 32, 33, 34, 35, 36, 37, 39, 41, 42 and 43 of 
title 38, United States Code. These benefits include the All-
Volunteer Force Educational Assistance Program (Montgomery GI 
bill) and the Post 9/11 Educational Assistance Program. Basic 
benefits are funded through appropriations made to the 
readjustment benefits appropriation and by transfers from the 
Department of Defense. This account also finances vocational 
rehabilitation, specially adapted housing grants, specially 
adapted automobile grants for certain disabled veterans, and 
educational assistance allowances for eligible dependents of 
those veterans who died from service-connected causes or who 
have a total permanent service-connected disability, as well as 
dependents of servicemembers who were captured or missing in 
action.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $12,607,476,000 for Readjustment 
benefits. This is an increase of $498,988,000 above the fiscal 
year 2012 enacted level and equal to the budget request.
    Veterans Retraining Assistance Program.--The Committee 
recommendation for Readjustment benefits includes full funding 
for the Veterans Retraining Assistance Program [VRAP]. VRAP, a 
joint effort between the Department of Veterans Affairs and the 
Department of Labor, was established in title II of Public Law 
112-56, the VOW to Hire Heroes Act of 2011. Beginning on July 
1, 2012, VRAP will provide up to 12 months of retraining 
assistance to veterans who are unemployed and received anything 
other than a dishonorable discharge. Veterans must be at least 
35 years of age, but not more than 60 years of age and have no 
eligibility remaining for other education benefits. Veterans 
participating in this program will receive monthly payments 
equal to the 3-year payment rate under the Montgomery GI Bill 
(currently $1,473 per month). VA estimates it will obligate 
$1,100,662,000 in fiscal year 2013 on the VRAP program.
    Education Counseling Services.--The Committee is concerned 
that a majority of veterans receiving education benefits 
provided by the Department are not requesting education 
counseling services available to them pursuant to section 3697A 
of title 38. The Committee directs the Department to perform 
outreach activities to better inform veterans about this 
benefit in order to achieve higher rates of utilization. In 
addition, the Committee directs the Secretary to submit a 
report to the Committees on Appropriations of both Houses of 
Congress no later than 90 days after enactment of this act 
detailing the Department's education counseling services 
provided to veterans pursuant to section 3697A of title 38. 
This report should include: (1) the number of veterans 
requesting this counseling in fiscal years 2010, 2011 and 2012; 
(2) the specific information that is provided to veterans in a 
counseling session including any data provided on educational 
institutions; and (3) an outreach plan to better inform 
veterans about the availability of education counseling.

                   VETERANS INSURANCE AND INDEMNITIES

Appropriations, 2012....................................    $100,252,000
Budget estimate, 2013...................................     104,600,000
Committee recommendation................................     104,600,000

                          PROGRAM DESCRIPTION

    The Veterans insurance and indemnities appropriation 
consists of the former appropriations for military and naval 
insurance, applicable to World War I veterans; National Service 
Life Insurance, applicable to certain World War II veterans; 
servicemen's indemnities, applicable to Korean conflict 
veterans; and veterans mortgage life insurance to individuals 
who have received a grant for specially adapted housing.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $104,600,000 for Veterans 
insurance and indemnities. This is an increase of $4,348,000 
above the fiscal year 2012 enacted level and equal to the 
budget request. The Department estimates there will be 
7,028,751 policies in force in fiscal year 2013 with a value of 
$1,350,990,000,000.

                 VETERANS HOUSING BENEFIT PROGRAM FUND

------------------------------------------------------------------------
                                                         Administrative
                                       Program account      expenses
------------------------------------------------------------------------
Appropriations, 2012................      $318,612,000      $154,698,000
Budget estimate, 2013...............       184,859,000       157,814,000
Committee recommendation............       184,859,000       157,814,000
------------------------------------------------------------------------

                          PROGRAM DESCRIPTION

    The Veterans housing benefit program fund provides for all 
costs associated with the VA's direct and guaranteed housing 
loan programs, with the exception of the Native American 
veteran housing loan program.
    VA loan guaranties are made to servicemembers, veterans, 
reservists, and unremarried surviving spouses for the purchase 
of homes, condominiums, and manufactured homes, and for 
refinancing loans. VA guarantees part of the total loan, 
permitting the purchaser to obtain a mortgage with a 
competitive interest rate, even without a downpayment, if the 
lender agrees. The VA requires that a downpayment be made for a 
manufactured home. With a VA guaranty, the lender is protected 
against loss up to the amount of the guaranty if the borrower 
fails to repay the loan.

                        COMMITTEE RECOMMENDATION

    The Committee recommends such sums as may be necessary for 
funding subsidy payments, estimated to total $184,859,000; and 
$157,814,000 for administrative expenses for fiscal year 2013. 
Bill language limits gross obligations for direct loans for 
specially adapted housing to $500,000.

            VOCATIONAL REHABILITATION LOANS PROGRAM ACCOUNT

------------------------------------------------------------------------
                                                         Administrative
                                       Program account      expenses
------------------------------------------------------------------------
Appropriations, 2012................           $19,000          $343,000
Budget estimate, 2013...............            19,000           346,000
Committee recommendation............            19,000           346,000
------------------------------------------------------------------------

                          PROGRAM DESCRIPTION

    The Vocational rehabilitation loans program account covers 
the cost of direct loans for vocational rehabilitation of 
eligible veterans and, in addition, includes administrative 
expenses necessary to carry out the direct loan program. Loans 
of up to $1,108 (based on the indexed chapter 31 subsistence 
allowance rate) are currently available to service-connected 
disabled veterans enrolled in vocational rehabilitation 
programs, as provided under 38 U.S.C. chapter 31, when the 
veteran is temporarily in need of additional assistance. 
Repayment is made in 10 monthly installments, without interest, 
through deductions from future payments of compensation, 
pension, subsistence allowance, educational assistance 
allowance, or retirement pay. Virtually all loans are repaid in 
full and most in less than 1 year.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $19,000 for program costs and 
$346,000 for administrative expenses for the Vocational 
rehabilitation loans program account. The administrative 
expenses may be paid to the General operating expenses, 
veterans benefits administration account. Bill language is 
included limiting program direct loans to $2,729,000. It is 
estimated that the VA will make 2,857 loans in fiscal year 
2013, with an average amount of $955.

          NATIVE AMERICAN VETERAN HOUSING LOAN PROGRAM ACCOUNT

Appropriations, 2012....................................      $1,116,000
Budget estimate, 2013...................................       1,089,000
Committee recommendation................................       1,089,000

                          PROGRAM DESCRIPTION

    The Native American veteran housing loan program is 
authorized by 38 U.S.C. chapter 37, section 3761 to provide 
direct loans to Native American veterans living on trust lands. 
The loans are available to purchase, construct, or improve 
homes to be occupied as veteran residences, or to refinance a 
loan previously made under this program in order to lower the 
interest rate. The potential maximum loan amount under this 
authority ranges from $417,000 in standard areas up to $625,500 
in high-cost areas. Veterans pay a funding fee of 1.25 percent 
of the loan amount, although veterans with a service-connected 
disability are exempt from paying the fee. Before a direct loan 
can be made, the veteran's tribal organization must sign a 
memorandum of understanding with the VA regarding the terms and 
conditions of the loan. The Native American Veteran Housing 
Loan Program began as a pilot program in 1993 and was made 
permanent by Public Law 109-233, the Veterans Housing 
Opportunity and Benefits Act of 2006.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $1,089,000 for administrative 
expenses associated with this program. This is $27,000 below 
the fiscal year 2012 enacted level and equal to the budget 
request.

                     Veterans Health Administration

Appropriations, 2012.................................... $51,191,985,000
Advance appropriations, 2013............................  52,541,000,000
Budget estimate, 2013...................................     747,674,000
Committee recommendation, 2013..........................     737,674,000
Budget estimate, advance appropriation, 2014............  54,462,000,000
Committee recommendation, advance appropriation, 2014...  54,462,000,000

                        ADMINISTRATION OVERVIEW

    The Veterans Health Administration [VHA] operates the 
largest Federal medical care delivery system in the country, 
with 153 hospitals, 1,102 outpatient clinics and Vet Centers, 
133 nursing homes, and 107 VA residential rehabilitation 
treatment programs.
    The Department of Veterans Affairs Medical Care Collections 
Fund [MCCF] was established by the Balanced Budget Act of 1997 
(Public Law 105-33). In fiscal year 2004, Public Law 108-199 
allowed the Department to deposit first-party and 
pharmaceutical co-payments; third-party insurance payments and 
enhanced-use collections; long-term care co-payments; 
Compensated Work Therapy Program collections; Compensation and 
Pension Living Expenses Program collections; and Parking 
Program fees into the MCCF.
    The Parking Program provides funds for the construction, 
alteration, and acquisition (by purchase or lease) of parking 
garages at VA medical facilities authorized by 38 U.S.C. 8109. 
The Secretary is required under certain circumstances to 
establish and collect fees for the use of such garages and 
parking facilities. Receipts from the parking fees are to be 
deposited into the MCCF and are used for medical services 
activities.

                        COMMITTEE RECOMMENDATION

    In fiscal year 2012, the Committee provided $52,541,000,000 
in advance appropriations for the VA's medical care accounts 
for fiscal year 2013. This included $41,354,000,000 for Medical 
services; $5,746,000,000 for Medical support and compliance; 
and $5,441,000,000 for Medical facilities. For fiscal year 
2013, the Committee recommends an additional $155,000,000 for 
Medical services. Additionally, the Committee recommendation 
includes $582,674,000 for Medical and prosthetic research. 
Medical care collections are expected to be $2,527,000,000. The 
recommendation also includes an advance appropriation of 
$54,462,000,000 for veterans medical care for fiscal year 2014.
    Advance Appropriations Budgeting.--The Committee remains 
supportive of providing advance appropriations for the three 
veterans medical care accounts. The intent of advance 
appropriations is to provide timely and predictable funding for 
veterans medical care and provide hospitals in the field 
certainty as clinical hiring decisions are made. The medical 
care budget is formed primarily by an actuarial analysis which 
factors in numerous data points including current and projected 
veteran population, enrollment projections, and case mix 
changes associated with current veteran patients. Due to the 
fact that medical care funding is provided a year in advance 
and that healthcare is dynamic in nature, the Department 
updates the actuarial model after the advance is provided, thus 
enabling the Department to make necessary changes in the 
following budget submission. The Committee appreciates this 
process and understands that the intention is to provide a 
clearer picture of medical needs. However, in the future, the 
Department must do a better job providing more detailed 
explanations within its justifications so that the Committee 
has an accurate and full view of how funding requests were 
determined. At a minimum, these explanations should include 
what data has been modified for the updated actuarial and how 
these changes have either produced savings or increased 
resource requirements. Additionally, the Department is directed 
to include in its budget justifications actual operational 
savings achieved in the previous 2 fiscal years so that a 
comparison can be made between actual and estimated savings.

                           AREAS OF INTEREST

    VA Nursing Academy.--The Committee commends the VA for 
addressing the nursing shortage through the Veterans Affairs 
Nursing Academy. This pilot program established partnerships 
with competitively selected nursing schools to expand the 
number of teaching faculty in VA facilities and affiliated 
nursing schools in order to increase student enrollment in 
baccalaureate nursing programs. The Committee notes the VA's 
realization of a net-positive value for the pilot overall and 
urges the VA to continue its collaboration with the Department 
of Defense through the Uniformed Services University of the 
Health Services [USUHS] by providing nurse faculty and nursing 
students in the graduate nursing education programs through the 
external evaluation period.
    Advanced Nursing Education.--The Committee urges the VA, in 
conjunction with accredited schools of nursing, to explore the 
development of a fast-track doctoral training program which 
would facilitate completion of a doctorate in nursing by 
qualified nurses employed within the VA network who possess a 
bachelor of science in nursing.
    Licensing Requirements at DOD/VA Collocated Facilities.--In 
fiscal year 2012, the Committee directed the Department of 
Veterans Affairs and the Department of Defense to examine ways 
in which duplicative licensing requirements at collocated 
medical facilities might be eliminated. The findings of this 
examination were required to be reported to the Committees on 
Appropriations of both Houses of Congress. The Committee 
reiterates the expectation and importance that the VA submit 
this report. Upon receipt of the report, the Department is 
directed to provide regular reports on progress made in 
implementing any recommendations to streamline duplicative 
licensing requirements.
    Women Veterans.--The percentage of women veterans is 
expected to rise significantly over the next 2 decades. As 
these female veterans enter the VA system, there is an urgent 
need for the Department to adapt older facilities to meet these 
changing demographics. The Committee urges VA to continue to 
upgrade facilities to address the needs of women veterans and 
veterans with children.
    Office of Health Information/Office of Informatics and 
Analytics.--It is incumbent upon the Department to continually 
look for ways to streamline and improve upon its operations, 
ensuring that taxpayer money is used to veterans' greatest 
benefits. The Committee understands that the Department is 
undertaking a review of the Office of Health Information [OHI] 
and the Office of Informatics and Analytics [OIA]. If the 
review identifies duplication of functions with other offices 
within the Department, the Secretary should make modifications, 
as necessary, to eliminate such duplication. The Committee 
further directs that savings realized from any increased 
efficiencies resulting from realignment of functions of OHI and 
OIA be reprogrammed to critical needs in direct patient care, 
or to other areas of need as identified in the report. No later 
than October 1, 2012, the Department is directed to provide to 
the Committees on Appropriations of both Houses of Congress a 
report detailing the findings of this review, any savings 
realized, and how those savings were reprogrammed.
    Prosthetics.--The VA supports a wide array of research in 
engineering and technology to improve the lives of veterans 
with disabilities, and it has long been a leader in the 
development of new prosthetic technologies. The Committee notes 
the diligence with which the VA works to align the prosthetics 
research portfolio with the needs of the veteran community to 
ensure new and innovative products are available to veterans. 
The Committee is particularly interested in understanding the 
full spectrum of prosthetic research programs and projects, 
including research on ``mechanical prosthetics,'' to replace an 
amputated limb, to ``neural prostheses,'' which deliver small 
amounts of electrical stimulation to the nervous system. The 
Committee directs the Department to report to the Committees on 
Appropriations of both Houses of Congress by January 6, 2013, 
on all ongoing prosthetic programs and projects including, but 
not limited to, mechanical prosthetics and neural prostheses. 
The report should include information pertaining to the 
prosthetic needs of the veteran community and how ongoing 
research is contributing to the health and wellbeing of 
disabled veterans.
    Battery Life Testing.--According to the VA, the Department 
does not consider service life comparisons in its evaluation 
criteria for battery purchases. The Committee is concerned that 
the VA may be spending more than necessary for batteries due to 
increased replacement costs. According to a May 2012 VA report 
to Congress on Life-Cycle Costs in VA Purchasing, the VA 
believes that ``evaluation of life-cycle cost associated with 
low-cost, readily available commercial items would not be 
appropriate when competing vendors are bidding firm fixed 
prices for `brand name or equal' products.''
    Without test results, the VA has no way to know whether 
commercially available batteries have equivalent life-cycle 
costs. The Committee understands that the VA has recently 
issued a Request for Information on third-party capacity 
testing for zinc air batteries (VA79112I0031). These tests 
results should enable the VA to make more informed purchasing 
decisions. Therefore, the Committee directs the VA to submit a 
report to the Committees on Appropriations of both Houses of 
Congress no later than December 31, 2012, which includes the 
results of capacity tests by a third-party entity measuring 
service life for each type of battery purchased by the VA, and 
a comparison of batteries currently purchased by the VA with 
alternatives in the commercial market for the same type of 
battery. For each type of battery tested, this report should 
also include the quantity purchased by the VA in the most 
recently completed fiscal year and the unit price paid per 
battery.

                            MEDICAL SERVICES

                     (INCLUDING TRANSFER OF FUNDS)

Appropriations, 2012.................................... $39,649,985,000
Advance appropriations, 2013............................  41,354,000,000
Budget estimate, 2013...................................     165,000,000
Committee recommendation, 2013..........................     155,000,000
Budget estimate, advance appropriation, 2014............  43,557,000,000
Committee recommendation, advance appropriation, 2014...  43,557,000,000

                          PROGRAM DESCRIPTION

    The Medical services account provides for medical services 
of enrolled eligible veterans and certain dependent 
beneficiaries in VA medical centers, VA outpatient clinics, 
contract hospitals, State homes, and outpatient programs on a 
fee basis. Hospital and outpatient care is also provided by the 
private sector for certain dependents and survivors of veterans 
under the civilian health and medical programs for the VA.

                        COMMITTEE RECOMMENDATION

    In fiscal year 2012, the Committee provided an advance 
appropriation of $41,354,000,000 for fiscal year 2013. The 
recommendation for fiscal year 2013 includes an additional 
$155,000,000 instead of $165,000,000 requested by the 
administration for the Medical services account. The additional 
funds provided will allow the VA to continue essential 
initiatives, assist in offsetting a projected decline in 
revenues, and provide additional resources for the Department 
to hire additional mental health providers. In addition, the VA 
has the authority to retain co-payments and third-party 
collections, estimated to total $2,527,000,000 in fiscal year 
2013.
    The Committee recommendation also includes an advance 
appropriation of $43,557,000,000 for medical services for 
fiscal year 2014. This is $2,048,000,000 above the level for 
fiscal year 2013 and equal to the fiscal year 2014 budget 
request.
    The fiscal year 2013 appropriation includes $6,184,098,000 
for mental healthcare; $72,812,000 for suicide prevention; 
$3,279,147 to provide medical care to Afghanistan and Iraq war 
veterans; $222,000,000 for readjustment counseling services at 
Vet Centers; $2,586,000,000 for prosthetics; and $1,351,851,000 
for specific homeless veterans programs.
    Homeless Veterans.--The Committee commends the Department 
of Veterans Affairs on its continued efforts to both prevent 
and end homelessness among the veteran population. However, the 
Committee is concerned about the substantial number of wounded 
veterans suffering from post-traumatic stress disorder and 
traumatic brain injury who are at high risk for becoming 
homeless. The need for innovative, cost-effective strategies to 
prevent these particularly vulnerable veterans from becoming 
homeless is significant. Engaging older veterans to provide 
mentoring and social support in a residential setting for 
wounded veterans at risk of homelessness has potential as a 
preventive strategy that can also increase the efficiency of VA 
healthcare services while reducing demand and associated costs 
for both disabled and nondisabled veterans. The Committee 
strongly encourages the Department to work with community-based 
and intermediary organizations to develop pilot programs that 
will utilize such an intergenerational approach.
    Rural Healthcare.--According to the Department of Veterans 
Affairs, veterans living in rural or highly rural areas account 
for 41 percent of all veterans enrolled in the VA system. 
Moreover, a disproportionately large number of Iraq and 
Afghanistan war veterans are from rural areas, many returning 
home with complicated physical and mental health conditions 
that require specialized or chronic healthcare not readily 
available in rural areas. As a result of these evolving 
demographics, the VA has ramped up its efforts to improve 
access and quality of care to rural veterans. The Committee 
welcomes this focus on rural veterans, and fully supports the 
$250,000,000 for rural healthcare in the fiscal year 2013 
budget request.
    However, the Committee recognizes that the demand for VA 
services in rural areas will only increase and believes that 
the VA must do more to plan for and provide quality healthcare 
to veterans living in rural and highly rural areas. Travel 
barriers, including long distances to VA medical facilities and 
lack of public transportation, make it difficult for the VA to 
serve rural veterans. Also, lack of specialized care in rural 
areas, including mental healthcare, make it difficult for 
veterans to obtain quality care at home.
    The VA is working to address these problems through a 
number of initiatives, including expanding the use and variety 
of telemedicine techniques, such as video consultations with 
practitioners, telephone healthcare monitoring and management, 
and audio-visual telemedicine diagnostic techniques. The 
Committee encourages the VA to pursue leading-edge telemedicine 
technology and innovative rural health demonstration projects, 
and to incorporate promising advances into its rural health 
delivery system.
    The Committee recognizes the ongoing challenges of the 
Department of Veterans Affairs to recruit and retain highly 
qualified healthcare professionals, particularly mental health 
professionals, in rural areas. Further, the Committee believes 
that subsequent staffing shortages ultimately lead to higher 
out-of-pocket costs for veterans as well as decreased quality 
of care. To address these issues, the Committee directs the 
Veterans Health Administration to more thoroughly and 
aggressively evaluate and deploy innovative approaches to 
recruiting and retaining quality physicians, surgeons, mental 
health professionals, and other healthcare professionals in 
rural areas. These potential approaches should include 
additional flexibility for rural facilities to enhance salary 
offers and to offer contract incentives to qualified 
applicants. Additionally, the Committee urges the VA to 
investigate the feasibility of using innovative ways to rotate 
practitioners through rural areas, including Native American 
reservations, such as medical ``circuit riders'', fully staffed 
mobile clinics that could be deployed to rural locations on 
extended schedules, and cooperative ventures using community 
hospitals or clinics as platforms for providing VA healthcare 
services.
    Mental Health.--Access to VA's mental health services is 
imperative given the number of Iraq and Afghanistan war 
veterans suffering from combat related mental health problems. 
The Committee remains very concerned about the ability of 
veterans suffering from combat related mental health conditions 
to access clinical care in a timely manner. Veterans Health 
Administration policy requires all first-time patients referred 
to or requesting mental health services to receive an initial 
evaluation within 24 hours and a more comprehensive diagnostic 
and treatment planning evaluation within 14 days. The 24-hour 
evaluation is key in identifying those patients who require 
immediate clinical care. On April 23, 2012, the Office of the 
Inspector General [IG] issued a report that reviewed veterans' 
access to mental healthcare. The report highlighted that VHA 
lacks a reliable way of determining whether veterans have 
timely access to mental health services. Additionally, the IG 
review found that first-time patients have not uniformly been 
provided timely mental health evaluations and existing patients 
often waited more than 14 days past their desired date for 
their appointment. The VA's Undersecretary for Health concurred 
with the IG's findings and stated the VHA would act rapidly on 
implementing changes that would improve access to mental 
healthcare. Moreover, the Department recently announced that it 
would add an additional 1,600 mental health clinicians and 300 
support staff as part of an ongoing review of mental health 
operations. The Committee supports this effort and directs the 
VA to provide the Committees on Appropriations of both Houses 
of Congress, no later than 60 days after enactment of this act, 
a detailed staffing plan and timeline to add these additional 
personnel.
    National Center for Post-Traumatic Stress Disorder.--One of 
the most pressing concerns facing our country's community of 
veterans is the increasing prevalence and severity of post-
traumatic stress disorder [PTSD]. Not only does PTSD continue 
to adversely affect our Vietnam veterans, but a new generation 
of veterans who have served in Iraq and Afghanistan are now 
returning home to suffer from what some have called ``the 
invisible wounds of war''. Given the immense and immediate 
nature of this problem and the great strides in PTSD research 
made by the VA's National Center for PTSD, last year the 
Committee noted with concern the $7,363,000, or almost 33-
percent decrease, in the President's budget request for this 
essential program in fiscal year 2012 as compared to the fiscal 
year 2011 request. This year, the administration has requested 
a minor increase of $164,000 over fiscal year 2012. In the 
coming fiscal years, the Committee strongly encourages the 
Department to accelerate funding for PTSD programs.
    Access to Care.--Hawaii and Alaska present unique 
challenges for the VA in delivering timely healthcare. For 
instance, if the VA does not provide a particular healthcare 
service within the VHA system, Hawaii and Alaska veterans are 
often directed to fly thousands of miles to a VA hospital 
within the continental United States, regardless of whether 
adequate healthcare may exist within the State through a local 
provider. The Committee remains concerned that the extensive 
travel requirements, coupled with lengthy delays scheduling 
this travel, create unusual hardships on Hawaii and Alaska 
veterans. The VA has reported that it is making progress in 
addressing these unique problems through the ``Care Closer to 
Home Program''. The Committee encourages the VA to continue 
these efforts and will continue to monitor its progress. 
Therefore, no later than February 1, 2013, the Department is 
directed to provide to the Committees on Appropriations of both 
Houses of Congress a report on the number of Hawaii and Alaska 
veterans who were directed to travel to a VA facility in 
another State for medical care in fiscal year and calendar year 
2012; the number of veterans who actually traveled to that 
facility during the fiscal and calendar years; and the 
Department's plans and goals for reducing the number of Hawaii 
and Alaska veterans directed to travel to another State for 
medical care in fiscal years 2013 and 2014. In addition, the 
report should describe the criteria used in determining whether 
to purchase medical care for a Hawaii or Alaska veteran within 
their respective States or require the veteran to travel to a 
VA facility in another State to receive that care; a 
description of the medical conditions for which these veterans 
were required to travel out of Hawaii and Alaska; and an 
explanation for why care was not purchased in State.
    The Committee is also concerned about the distances that 
veterans have to travel within the State of Alaska to obtain VA 
care. In its report on the ``Care Closer to Home Program'', the 
VA is requested to provide data on the number of Alaska 
veterans who have traveled by air within the State of Alaska 
during fiscal year 2012 to obtain care at a VA facility, the 
communities from which they traveled and the facility at which 
the care was provided. The VA is requested to assess whether 
this care could have been provided closer to home through 
partnerships with Community Health Centers, tribal health 
facilities, or other available community providers.
    Veterans Affairs/Indian Health Service Collaboration.--On 
March 5, 2012, the VA and the Indian Health Service [IHS] began 
soliciting input from tribal leaders on a draft reimbursement 
agreement between VA and IHS. The draft agreement sets forth 
the underlying terms and conditions for reimbursement between 
VA and IHS facilities, as well as between VA and tribal health 
facilities, should tribes elect to enter into an agreement with 
VA. The Committee is encouraged by these recent achievements 
and commends the VA for seeking input from Native American 
tribes and Alaska Natives. Many American Indian and Alaska 
Native veterans live in some of the most remote places in the 
country and often lack access to VA health facilities due to 
sheer distance between their homes and the nearest facility. 
Stronger partnerships among VA, IHS, and tribal health 
facilities is essential to ensuring Native American and Alaska 
Native veterans have access to the services to which they are 
entitled. The Committee intends to closely monitor progress in 
establishing these partnerships. Therefore, the Department is 
directed to submit to the Committees on Appropriations of both 
Houses of Congress no later than November 1, 2012, a report 
outlining the progress made in working with IHS and tribal 
health facilities to establish new partnerships and 
reimbursement agreements.
    End Stage Renal Disease.--The Committee is very concerned 
with the growing number of cases of End Stage Renal Disease 
[ESRD]. According to VA estimates for fiscal year 2011, over 
27,000 veterans have ESRD. Of these veterans, approximately 
16,500 received dialysis from the VA on an outpatient basis at 
a VA facility or through contract care. Studies have suggested 
that home-based dialysis therapies, including peritoneal 
dialysis and home hemodialysis, can be less costly than in-
center hemodialysis. The Department is directed to submit to 
the Committees on Appropriations of both Houses of Congress no 
later than 90 days after enactment of this act, a report 
outlining current utilization of home-based dialysis therapies 
and what plans the VA has to expand these services across the 
veterans health system.
    Veteran Transportation System.--The Committee recognizes 
that Public Law 111-163 took a number of meaningful steps to 
enhance care for veterans. Among the provisions included in 
this law is a grant program that will allow State veterans 
service agencies and veterans service organizations to provide 
better transportation options for rural veterans seeking care 
at a Department of Veterans Affairs facility. The Committee has 
concerns that further delays in the implementation of this 
grant program will impede the critical services provided by the 
program from reaching rural veterans in a timely manner. The 
Committee urges the Department of Veterans Affairs to move 
expeditiously in the enactment of this grant program, and to 
make additional longer-term investments that improve 
transportation options for rural veterans.
    Regenerative Medicine.--Prosthetic devices currently remain 
the primary rehabilitative option for servicemembers and 
veterans with upper limb loss. However, the Committee 
recognizes emerging regenerative medical treatments such as 
upper extremity transplantation could be viable alternatives 
for eligible patients. Therefore, the Committee directs the 
Secretary of Veterans Affairs to provide to the Committees on 
Appropriations of both Houses of Congress no later than January 
18, 2013, a report detailing the efforts the Veterans Health 
Administration has undertaken to facilitate the translation of 
new regenerative medical procedures into preventive and 
therapeutic strategies. The report should identify any critical 
knowledge gaps that constrain the rapid progress and clinical 
translation of novel therapies for veterans.
    Further, the Committee urges the Secretary of Veterans 
Affairs to consider establishing a Regenerative Medicine 
Coordinator within the Department of Veterans Affairs to 
develop a referral pathway that provides more veterans the 
opportunity to take advantage of the advances in regenerative 
medicine, including upper extremity transplantations. The 
Regenerative Medicine Coordinator should coordinate with the 
Department of Defense's Armed Forces Institute of Regenerative 
Medicine Office and establish a set of protocols for 
regenerative medicine inpatient and outpatient care.
    Prescription Drugs.--The Committee has encouraged the 
Department of Veterans Affairs and the Department of Defense 
[DOD] to increase collaboration in areas where appropriate, 
such as collocated health facilities and integrated information 
technology systems. These collaborative efforts not only 
improve efficiency but also can lead to significant cost 
savings. The Committee believes that the two Departments should 
pursue joint efforts in the purchasing of prescription drugs. 
According to the Government Accountability Office [GAO], from 
fiscal year 2002 through 2005, VA and DOD increased joint 
procurement of brand name and generic drugs. Joint national 
contracts increased from $183,000,000 on 76 contracts in 2002 
to $560,000,000 on 84 contracts in fiscal year 2005. However, 
the GAO found that by 2009, joint national contracts had 
decreased to $214,000,000 on 67 contracts. Additionally, by 
2009 all joint contracts were for generic drugs. GAO noted that 
VA and DOD officials attributed the decline of joint 
contracting to the elimination of joint contracting for brand 
name drugs. The Committee believes that the Departments could 
achieve greater cost savings by jointly procuring brand name 
drugs. Therefore, VA is directed to provide to the Committees 
on Appropriations of both Houses of Congress a report no later 
than January 25, 2013, detailing the impediments to joint 
procurement of both generic and brand name drugs, and potential 
solutions to increase joint contracting.

                     MEDICAL SUPPORT AND COMPLIANCE

Appropriations, 2012....................................  $5,535,000,000
Advance appropriations, 2013............................   5,746,000,000
Budget estimate, advance appropriation, 2014............   6,033,000,000
Committee recommendation, advance appropriation, 2014...   6,033,000,000

    The Medical support and compliance account provides funds 
for management, security, and administrative expenses within 
the VA healthcare system, in addition to providing costs 
associated with the operation of VA medical centers and 
clinics, VISN offices, and the VHA Central Office in 
Washington, DC. This appropriation also covers Chief of Staff 
and Facility Director operations, quality of care oversight, 
legal services, billing and coding activities, procurement, 
financial management, security, and human resource management.
    The President's 2013 and 2014 submission for Medical 
Support and Compliance is based on an actuarial analysis 
founded on the current and projected veteran population, 
enrollment projections of demand, and case mix changes 
associated with current veteran patients.

                        COMMITTEE RECOMMENDATION

    In fiscal year 2012, the Committee provided an advance 
appropriation of $5,746,000,000 for fiscal year 2013 for the 
Medical support and compliance account. This is $211,000,000 
above the fiscal year 2012 enacted level and equal to the 
budget request. Additionally, the Committee recommendation 
includes an advance appropriation of $6,033,000,000 for Medical 
support and compliance for fiscal year 2014, which is 
$287,000,000 above the level for fiscal year 2013 and equal to 
the budget request.
    Budget Justification.--The Medical support and compliance 
appropriation provides funds for the expenses of management, 
security, and administration of the VA's healthcare system. 
Included in this appropriation are the costs associated with 
the management, operation, and oversight of the Veterans Health 
Administration's headquarters and program offices, VISN and 
medical facilities, and other support organizations and 
functions. There are four major category groups funded by this 
appropriation: medical center support, which receives 72 
percent of the appropriation; centralized field support 
functions, which receives 13 percent; VHA central office 
support, which receives 12 percent; and VISN support, which 
receives 3 percent. The Committee understands healthcare 
systems require strong management to ensure healthcare is 
provided in a timely and efficient manner. Additionally, the 
Committee appreciates that most of VHA's funding decisions are 
driven by an actuarial model designed to capture the best data 
and provide a realistic view of funding needs in the field. 
However, the justification accompanying the budget request 
lacks details on how several components within Medical support 
and compliance are developed. For instance, while VHA central 
office and VISN staff offices play key roles in oversight, 
policy guidance, and the delivery of healthcare, the 
justification contains little insight on how their respective 
budgets were developed. Therefore, the Committee directs the 
Department to provide greater detail, including a detailed 
budget build-out for these functions in future budget 
submissions.

                           MEDICAL FACILITIES

Appropriations, 2012....................................  $5,426,000,000
Advance appropriations, 2013............................   5,441,000,000
Budget estimate, advance appropriation, 2014............   4,872,000,000
Committee recommendation, advance appropriation, 2014...   4,872,000,000

                          PROGRAM DESCRIPTION

    The Medical facilities account provides funds for the 
operation and maintenance of the VA healthcare system's vast 
capital infrastructure. This appropriation provides for costs 
associated with utilities, engineering, capital planning, 
leases, laundry, groundskeeping, housekeeping, facility repair, 
and property disposition and acquisition.

                        COMMITTEE RECOMMENDATION

    In fiscal year 2012, the Committee provided an advance 
appropriation of $5,441,000,000 for fiscal year 2013 for the 
Medical facilities account. The Committee recommendation 
includes an advance appropriation of $4,872,000,000 for Medical 
facilities for fiscal year 2014. This is $569,000,000 below the 
level for fiscal year 2013 and equal to the budget request.
    Nonrecurring Maintenance.--In fiscal year 2014, the 
Department will transfer 1,080 full-time personnel currently 
budgeted for in the Medical facilities account to the Medical 
services account. The advance appropriation budget request and 
corresponding Committee recommendation reflects this transfer. 
While this transfer accounts for a reduction of $320,000,000 in 
the Medical facilities account and a respective increase in the 
Medical services account, it does not fully explain the decline 
in the Medical facilities account. According to the budget 
justifications which accompanied the budget request, the VA 
estimates the Department will spend $868,800,000 in fiscal year 
2012; $710,450,000 in fiscal year 2013; and $464,660,000 in 
fiscal year 2014 on critical infrastructure repairs at existing 
hospitals and clinics. This is a $404,140,000 reduction in 
estimated expenditures from 2012 to 2014 on reducing 
infrastructure deficiencies at current VHA facilities. The 
Committee notes that the VA has flexibility within the Medical 
facilities account to shift money during the fiscal year as 
circumstances and estimates change. For instance, the 
Department's original fiscal year 2011 budget request for 
nonrecurring maintenance was $1,110,129,000. However, actual 
expenditures for fiscal year 2011 were $1,977,168,000. This 
large variance in estimations and actual obligations reflects 
the need for VA to more accurately budget for infrastructure 
needs. The Committee strongly supports the nonrecurring 
maintenance program and urges the Department to review the 
advance appropriation for this account in the next budget cycle 
to ensure that budget estimates for needed infrastructure 
repairs adhere to the deficiencies outlined in the 10-year 
Strategic Capital Investment Plan.
    Southwest Louisiana Outpatient Clinics.--In March of 2012, 
the Committee was notified that contracting errors were made in 
the Solicitation for Offers to build the Community Based 
Outpatient Clinics [CBOCs] in Southwest Louisiana. These 
contracting errors will result in delays to the Lake Charles 
CBOC opening and Lafayette CBOC expansion. The Department is 
directed to provide the Committee on Appropriations regular 
updates on the progress being made to correct the contracting 
errors in order to move forward to complete the clinics in 
Lafayette and Lake Charles, Louisiana.

                    MEDICAL AND PROSTHETIC RESEARCH

Appropriations, 2012....................................    $581,000,000
Budget estimate, 2013...................................     582,674,000
Committee recommendation................................     582,674,000

                          PROGRAM DESCRIPTION

    The Medical and prosthetic research account provides funds 
for medical, rehabilitative, and health services research. 
Medical research supports basic and clinical studies that 
advance knowledge leading to improvements in the prevention, 
diagnosis, and treatment of diseases and disabilities. 
Rehabilitation research focuses on rehabilitation engineering 
problems in the fields of prosthetics, orthotics, adaptive 
equipment for vehicles, sensory aids and related areas. Health 
services research focuses on improving the effectiveness and 
economy of the delivery of health services.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $582,674,000 for Medical and 
prosthetic research. This is $1,674,000 above the fiscal year 
2012 enacted level and equal to the budget request.
    The Committee remains highly supportive of this program, 
and recognizes its importance both in improving healthcare 
services to veterans and recruiting and retaining high-quality 
medical professionals in the Veterans Health Administration.
    Through the Department's research and development program, 
the VA has implemented a comprehensive research agenda to 
develop new treatments and tools for clinicians to ease the 
physical and psychological pain of men and women returning from 
war zones, to improve access to VA healthcare services, and to 
accelerate discoveries and applications, especially for 
neurotrauma, sensory loss, amputation, polytrauma, and related 
prosthetic needs.
    Nursing Research Program.--The Committee supports the 
Veterans Affairs Nursing Research Program, which facilitates 
research on the specific nursing needs of combat veterans and 
aging veterans. The Committee strongly supports continuation of 
this program. The Committee also encourages collaboration 
between VA nurses and recipients of Tri-Service Nursing 
Research Program awards in the exploration of research 
proposals that improve the health and well-being of their 
shared beneficiary population.
    Chronic Obstructive Pulmonary Disease.--The Committee is 
concerned by the incidence of Chronic Obstructive Pulmonary 
Disease [COPD] in the veteran population. COPD, the third 
leading cause of death in the United States, can be caused by 
smoking, exposure to air pollution, or genetic conditions. The 
Committee is aware that several Veterans Affairs Medical 
Centers [VAMC] are studying COPD and its effects on the veteran 
population. The Committee notes the positive results of a pilot 
testing program conducted by the Miami VAMC that utilized 
electronic medical records to help detect and properly treat 
veterans with COPD. The Department is directed to provide a 
report to the Committees on Appropriations of both Houses of 
Congress no later than 90 days after enactment of this act, 
detailing the various COPD-related research projects currently 
underway and those projects recently completed. The report 
should include how research is being applied in clinical 
settings to combat COPD and its effects, including the 
utilization of electronic medical records to help detect and 
properly treat veterans for COPD.
    Preventing Pressure Ulcers.--In spite of advances in 
nursing care, surgery, medical procedures, and education, 
pressure ulcers--also known as bed sores--remain to this day a 
major cause of healthcare cost, morbidity, and mortality. A 
large segment of veterans receiving care through VHA are 
particularly susceptible to pressure ulcers. While pressure 
ulcers continue to be a serious problem, there are treatments 
and medical devices in the early stages of development that can 
prevent and heal these ulcers. Therefore, the Committee 
encourages the Department to expand its research, development, 
and clinical trials of medical devices and treatments designed 
to prevent and heal pressure ulcers.
    Gastrointestinal Disorders.--The Committee acknowledges the 
association between Gulf War service and the development of 
functional gastrointestinal disorders, as described in the 2010 
Institute of Medicine report ``Gulf War and Health, Volume 8: 
Health Effects of Serving in the Gulf War Update 2009.'' These 
disorders can be painful and debilitating for our Nation's 
veterans and the Committee urges the Department of Veterans 
Affairs to prioritize this important research area.

                 MEDICAL CARE COST RECOVERY COLLECTIONS

                      MEDICAL CARE COLLECTION FUND

Appropriations, 2012....................................  $3,326,000,000
Budget estimate, 2013...................................   2,527,000,000
Committee recommendation................................   2,527,000,000

             MEDICAL CARE COLLECTION FUND--REVENUES APPLIED

Appropriations, 2012.................................... -$3,326,000,000
Budget estimate, 2013...................................  -2,527,000,000
Committee recommendation................................  -2,527,000,000

                          PROGRAM DESCRIPTION

    The Medical Care Collection Fund [MCCF] was established by 
the Balanced Budget Act of 1997 (Public Law 105-33). In fiscal 
year 2004, Public Law 108-199 allowed the Department of 
Veterans Affairs to deposit first-party and pharmacy co-
payments; third-party insurance payments and enhanced-use 
collections; long-term care co-payments; Compensated Work 
Therapy Program collections; and Parking Program fees into the 
MCCF. The Secretary of Veterans Affairs has the authority to 
transfer funds from the MCCF to the Medical services account.

                        COMMITTEE RECOMMENDATION

    The Committee recommendation includes the authority to 
retain co-payments and third-party collections, estimated to 
total $2,527,000,000 in fiscal year 2013.
    The Committee is very concerned about overly optimistic 
estimates of revenues collected through the Medical Care 
Collection Fund [MCCF]. In fiscal year 2011, the VA estimated 
it would collect $3,355,000,000 through MCCF. However, actual 
collection in fiscal year 2011 totaled $2,772,546,000. 
Similarly, the Department has had to revise its estimates 
downward for fiscal years 2012 and 2013. While a number of 
factors could be the cause of these variances, no detailed 
explanation was provided with the budget submission. Therefore, 
the Committee directs the Department to submit a report to the 
Committees on Appropriations of both Houses of Congress no 
later than December 3, 2012, outlining the causes for these 
downward projections and what contingency plans are in place 
should actual revenues continue to drop.

                    National Cemetery Administration

Appropriations, 2012....................................    $250,934,000
Budget estimate, 2013...................................     258,284,000
Committee recommendation................................     258,284,000

                        ADMINISTRATION OVERVIEW

    The National Cemetery Administration [NCA] was established 
in accordance with Public Law 93-94, the National Cemeteries 
Act of 1973. It has a four-fold mission: to provide for the 
interment in any national cemetery of the remains of eligible 
deceased servicemembers and discharged veterans, together with 
their spouses and certain dependents, and permanently maintain 
their graves; to provide headstones for, and to mark graves of, 
eligible persons in national, State, and private cemeteries; to 
administer the grant program for aid to States in establishing, 
expanding, or improving State veterans cemeteries; and to 
administer the Presidential Memorial Certificate Program.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $258,284,000 for the National 
Cemetery Administration. This is an increase of $7,350,000 
above the fiscal year 2012 enacted level and equal to the 
budget request.
    The Committee has included bill language to make available 
through September 30, 2014, up to $25,828,000 of the National 
Cemetery Administration appropriation.
    Rural Cemetery Initiative.--The National Cemetery 
Administration's fiscal year 2013 budget submission includes a 
new initiative designed to improve burial access to veterans 
residing in rural areas. NCA is proposing to establish a 
national cemetery presence in rural areas where the veteran 
population is less than 25,000 within a 75-mile service area. 
NCA plans to achieve this by purchasing small parcels of land 
within existing local cemeteries and establish and manage a 
national cemetery presence in previously underserved rural 
areas. The proposal will target those States in which there is 
no national cemetery or State Veterans Cemetery. The Committee 
supports this new initiative and believes it will help provide 
many veterans and their families with the honor of a final 
resting place in a veterans cemetery. However, it should be 
noted that States with a single national cemetery that 
encompass a large land area still face challenges to burial 
access and would not be eligible under the guidelines of the 
new initiative. The Committee encourages the Department to 
consider expanding this initiative in the future to ensure that 
its strategic goal of serving 94 percent of veterans with a 
burial option within 75 miles of their home is met.

                      Departmental Administration

Appropriations, 2012....................................  $6,862,258,000
Budget estimate, 2013...................................   7,292,255,000
Committee recommendation................................   7,302,255,000

                        ADMINISTRATION OVERVIEW

    Departmental Administration provides for the administration 
of veterans benefits through the Veterans Benefits 
Administration [VBA], the executive direction of the 
Department, several top level supporting offices, the Board of 
Contract Appeals, and the Board of Veterans' Appeals.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $7,302,255,000 for Departmental 
Administration. The amount is composed of $424,737,000 for 
General administration; $2,164,074,000 for General operating 
expenses, veterans benefits administration; $3,327,444,000 for 
Information technology systems; $115,000,000 for the Office of 
the Inspector General; $532,470,000 for Construction, major 
projects; $607,530,000 for Construction, minor projects; 
$85,000,000 for Grants for construction of State extended care 
facilities; and $46,000,000 for Grants for the construction of 
State veterans cemeteries.

                         GENERAL ADMINISTRATION

                     (INCLUDING TRANSFER OF FUNDS)

Appropriations, 2012....................................    $416,737,000
Budget estimate, 2013...................................     416,737,000
Committee recommendation................................     424,737,000

                          PROGRAM DESCRIPTION

    The General administration account provides funding for the 
Office of the Secretary, six assistant secretaries, and three 
independent staff offices.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $424,737,000 for General 
administration. This amount is $8,000,000 above the fiscal year 
2012 enacted level as well as the budget request. The 
recommendation freezes all line offices at the fiscal year 2012 
enacted level, except for the Board of Veterans Appeals [BVA]. 
The Board is responsible for making final decisions on behalf 
of the Department for appealed veterans benefits claims. The 
projected average time to resolve these appeals is 650 days. 
Moreover, the VA projects the appeals backlog to grow to 65,611 
claims in 2013 from the current projected level of 39,283. Wait 
times are the number one complaint of most veterans, whether 
during the initial claims process, the appeals process, or when 
scheduling a medical appointment. The Department has made 
efforts to address wait times at both the Veterans Benefits 
Administration and Veterans Health Administration through 
increased staffing and resources. However, staffing at BVA has 
been steadily declining. The Committee strongly believes the 
wait time and backlog at the appellate level are unacceptable 
and that the budget request is clearly insufficient to address 
the number of benefits claims on appeal. Therefore, the 
Committee has included an additional $8,000,000 for the Board 
to hire additional personnel. Further, the Committee directs 
the Department to provide to the Committees on Appropriations 
of both Houses of Congress no later than November 30, 2012, a 
fiscal year 2013 staffing plan and detailed strategic plan to 
address this issue. The strategic plan should also include an 
explanation as to why the backlog in appeals is growing at an 
alarmingly rapid pace.
    The Committee has included bill language to make available 
through September 30, 2014, up to $20,837,000 for General 
administration. The funding recommendation for each line office 
is provided in the table below.

                                             GENERAL ADMINISTRATION
                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                    Fiscal year     Fiscal year
                           Department                              2012 enacted     2013 budget      Committee
                                                                       level          request     recommendation
----------------------------------------------------------------------------------------------------------------
Office of the Secretary.........................................          10,085          10,085          10,085
Board of Veterans Appeals.......................................          78,006          78,006          86,006
Office of General Counsel.......................................          83,099          83,099          83,099
Office of Management............................................          45,598          45,598          45,598
Office of Human Resources.......................................          70,379          70,379          70,379
Office of Policy and Planning...................................          26,015          26,015          26,015
Office of Operations Security and Preparedness..................          18,510          18,510          18,510
Office of Public and Intergovernmental Affairs..................          23,286          23,037          23,037
Office of Congressional Affairs and Legislative Affairs.........           6,053           6,302           6,302
Office of Acquisition, Logistics and Construction...............          55,706          55,706          55,706
                                                                 -----------------------------------------------
      Total.....................................................         416,737         416,737         424,737
----------------------------------------------------------------------------------------------------------------

    Franchise Fund.--The Franchise Fund was established in 1997 
as a pilot program and made permanent in fiscal year 2006 under 
Public Law 109-114. The Committee directs the Department to 
provide a report on the Franchise Fund's business plan for 
fiscal year 2013. This plan should include a list of services, 
customers, overhead expenses, funds collected for services, and 
the unobligated balance from the previous fiscal year. The VA 
shall submit this report to the Committees on Appropriations of 
both Houses of Congress no later than 60 days following 
enactment of this act.
    Tribal Government Outreach.--The Committee recognizes that 
Native Americans have served in the Armed Forces in large 
numbers, but often are hindered in receiving benefits by 
cultural and geographic barriers. To address this, the 
Department established a Tribal Veterans Representative program 
that provides outreach to Native American Tribes and Alaska 
Natives. These representatives help facilitate communication 
and paperwork, and explain benefits to Native American and 
Alaska Native veterans, to ensure that they are informed and 
have access to benefits and services provided by the VA. The 
Committee supports these outreach efforts and directs the 
Department to provide annual reports to the Committees on 
Appropriations of both Houses of Congress detailing outreach 
initiatives provided to Native American and Alaska Native 
veterans.
    Oversight of Construction Activities.--The Committee 
believes that VA Central Office needs to strengthen its 
oversight of all construction activities in the field. 
Therefore, no later than 60 days after enactment of this act, 
the Office of the Secretary is directed to provide to the 
Committees on Appropriations of both Houses of Congress a 
report outlining processes that are in place to ensure proper 
oversight of construction. This report should identify which 
components of central oversight are performed outside of the 
various VA administrations and whether spot audits are 
performed in the field.

      GENERAL OPERATING EXPENSES, VETERANS BENEFITS ADMINISTRATION

Appropriations, 2012....................................  $2,018,764,000
Budget estimate, 2013...................................   2,164,074,000
Committee recommendation................................   2,164,074,000

                          PROGRAM DESCRIPTION

    The General operating expenses, veterans benefits 
administration account provides funding for the Veterans 
Benefits Administration to administer entitlement programs such 
as service-connected disability compensation, education 
benefits, and vocational rehabilitation services.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $2,164,074,000 for General 
operating expenses, veterans benefits administration, which is 
$145,310,000 above fiscal year 2012 enacted level and equal to 
the budget request. The Committee has included bill language to 
make available through September 30, 2014, up to $113,000,000 
for General operating expenses, veterans benefits 
administration.
    Claims Processing.--The lengthy wait time and persistent 
backlog of claims at the Veterans Benefits Administration 
continue to impose an unacceptable burden on disabled veterans. 
The Committee understands the Department has set 2015 as the 
date by which it plans to achieve a significant reduction in 
the backlog of claims and to increase the accuracy rate at all 
regional offices to 98 percent.
    As noted by the Committee last year, the Department made a 
policy decision to hire fewer permanent employees to handle 
claims processing, and instead utilize external vendors in 
specific elements of collecting materials for claims 
processing, thus allowing VA employees to focus on 
decisionmaking. This change was expected to improve efficiency 
and reduce operating expenses related to claims processing. The 
Committee directs the Department to submit, no later than 90 
days after the enactment of this act, a report detailing the 
metrics developed for evaluating the success of this effort in 
reducing the backlog of claims and the average adjudication 
time.
    The Committee remains concerned that some parts of the 
country continue to experience much longer wait times than 
others, and the accuracy of claims decisions in one area of the 
country versus another varies dramatically. The Committee notes 
the Department's own goal is to have a 98-percent accuracy 
rate, yet currently, nationwide accuracy is about 84 percent. 
As of December 2011, the accuracy rate at regional offices 
around the country varied from 94 to 64 percent. Because of 
this, the Committee directs the Department to submit, no later 
than 90 days after the enactment of this act, a report 
detailing the wait times and accuracy rates of disability 
claims decisions at all 57 regional offices. This report should 
include information on how the quality-review teams and the 
quality initiatives at each regional office have affected the 
performance, wait times, and rates at each location. 
Additionally, the report should include the specific metrics 
the VBA uses in determining personnel performance.
    Inspector General Report on Claims Processing Errors.--The 
Committee is concerned about the recent findings by the 
Department of Veterans Affairs Office of Inspector General that 
the Oakland, Los Angeles and San Diego VA Regional Offices have 
high error rates and claims processing times compared to other 
regional offices across the Nation. For example, the Inspector 
General found that 80 percent of claims reviewed in the Los 
Angeles office were unnecessarily delayed and that in one case 
a claim in Oakland had been pending for 8 years. The Inspector 
General also determined that 97 percent of temporary 100 
percent disability evaluations reviewed were processed 
incorrectly at the Los Angeles Regional Office.
    Delays and errors of this frequency and magnitude are not 
acceptable, and steps must be taken to improve service to our 
veterans at these regional offices. Therefore the Secretary is 
directed to provide the Committees on Appropriations of both 
Houses of Congress a report detailing how the Inspector 
General's recommendations are being implemented. The report 
shall also include an explanation about why the Los Angeles 
office is currently operating in what is referred to as ``safe 
mode,'' which means that staff is not held accountable to VA 
standards.
    Administration of the GI Bill.--Education Liaison 
Representatives are VA employees who act as conduits between 
school officials and the VA. The Committee is concerned about 
how communication and assistance is provided to States which do 
not currently have an Education Liaison Representative assigned 
to work exclusively with their schools. Compounding this issue 
is the lack of resources provided by the Department to ensure 
that Education Liaison Representatives have adequate technology 
to effectively communicate with schools to which they are 
assigned. A failure to improve communication among the VA, 
schools, and veterans across the country will continue to have 
a negative impact on the timely delivery of education benefits 
to our veterans and their families. The Committee strongly 
encourages the Department to ensure Education Liaison 
Representatives have adequate technology to make certain they 
are able to effectively communicate while outside of their 
offices with the schools to which they are assigned.

                     INFORMATION TECHNOLOGY SYSTEMS

Appropriations, 2012....................................  $3,111,376,000
Budget estimate, 2013...................................   3,327,444,000
Committee recommendation................................   3,327,444,000

                          PROGRAM DESCRIPTION

    The Information Technology [IT] appropriation, along with 
reimbursements, funds the costs of all IT staff salaries and 
expenses, the operations and maintenance of all existing 
information technology systems, and the development of new 
projects and programs designed to improve the delivery of 
service to veterans. This appropriation also funds the costs 
associated with the Office of Information and Technology, which 
oversees the functions highlighted above.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $3,327,444,000 for the Information 
technology systems account. This amount is $216,068,000 above 
the fiscal year 2012 enacted level and equal to the budget 
request. The Committee recommendation includes $1,021,000,000 
for staff salaries and expenses, $1,812,045,000 for operation 
and maintenance of existing programs, and $494,399,000 for 
program development, all according to the Department's fiscal 
year 2013 budget submission.
    The Committee has appropriated the Information technology 
systems account as three subaccounts, with funding levels 
consistent with the Department's budget submission. This 
funding structure will enhance the Committee's ability to 
ensure that funds are executed in a manner consistent with the 
Department's budget submission. The Committee has provided 
sufficient flexibility within the subaccounts by way of 
authorized carryover amounts and reprogramming authority to 
give the Office of Information Technology as much flexibility 
as possible to accomplish its mission and goals, while ensuring 
proper accountability and oversight. The Committee will 
continue to work with the Department to ensure that the IT 
projects currently underway, as well as the projects planned 
for the future, have the resources the VA needs to make them 
successful.
    The Committee has included bill language that restricts the 
obligation of development funds until the Secretary of Veterans 
Affairs or the Chief Information Officer submits to the 
Committees on Appropriations of both Houses of Congress a 
certification of the amounts, in parts or in full, that will be 
obligated and expended for each development project. Further, 
the Office of Information Technology is directed to provide an 
IT expenditure report, by project, to the Committees on 
Appropriations of both Houses of Congress on a monthly basis.
    The chart below reflects the administration's budget 
request for development projects and includes the Committee 
recommendation for each. This chart will serve as the 
Department's approved list of development projects, and all 
requested changes are subject to the reprogramming guidelines 
as outlined in the accompanying act.

               INFORMATION TECHNOLOGY DEVELOPMENT PROJECTS
                        [In thousands of dollars]
------------------------------------------------------------------------
                                      Fiscal year 2013      Committee
               Project                  budget request   recommendation
------------------------------------------------------------------------
Access to Healthcare IT Development.            40,313            40,313
Surgical Quality and Workflow                   27,503            27,503
 Management Development.............
Healthcare Efficiency IT Development             4,659             4,659
Homelessness IT Development.........             3,075             3,075
Integrated Electronic Health Record            104,000           104,000
 [iEHR].............................
Mental Health IT Development........             8,818             8,818
New Models of Care IT Development...            35,724            35,724
Veterans Benefits Management System             38,525            38,525
 [VBMS].............................
Virtual Lifetime Electronic Record              49,939            49,939
 [VLER].............................
Veterans Relationship Management                96,218            96,218
 [VRM]..............................
Health Management Platform                       7,500             7,500
 Development........................
International Classification of                 11,500            11,500
 Diseases--10 Development...........
VHA Research IT Support Development.            18,521            18,521
Human Capital Development...........             9,100             9,100
Integrated Operating Model..........            14,100            14,100
VA Learning Management Systems                   5,540             5,540
 Development........................
Other IT Development................            19,364            19,364
                                     -----------------------------------
      Total, All Development........           494,399           494,399
------------------------------------------------------------------------

    Integrated Electronic Health Record [iEHR].--The Committee 
commends the Department of Veterans Affairs for the consistent 
and strong leadership displayed over the past year while 
working with the Department of Defense [DOD] to develop an 
integrated electronic health record [iEHR]. The Committee is 
committed to the development of a unified health record system 
which should produce major benefits in cost-savings and patient 
safety. While the Committee remains supportive of this effort, 
it is concerned that a detailed plan, including a timeline, 
benchmarks, and total cost has not been transmitted to 
Congress.
    A comprehensive governance structure including these 
critical components is essential to the successful development 
of iEHR. Further, a development model similar to the Project 
Management Accountability System [PMAS] focused on incremental 
development with deliverable milestones should be utilized in 
the development of this system. Therefore, no later than 30 
days after the enactment of this act, the Committee directs the 
VA, in conjunction with DOD, to report to the Committees on 
Appropriations of both Houses of Congress an identified 
timeframe for completion of iEHR, detailed benchmarks against 
which to track its progress, and a detailed spend plan which 
will show the total project cost. The Committee also directs 
the VA, through the Interagency Program Office, to provide 
quarterly updates on the progress of this project to the 
Committees on Appropriations of both Houses of Congress.
    The Committee continues to encourage the Departments to use 
proven commercial off-the-shelf technology when developing 
iEHR. The Committee remains convinced an open source approach 
is the best way to develop iEHR so that the system does not 
become overly reliant upon a single vendor and the Department 
is able to take advantage of private sector technology. Such an 
approach will encourage competition as vendors bid on iEHR 
contracts, ensuring our servicemembers and veterans have access 
to the best electronic health record technology available.
    Veterans Benefits Management System.--The Veterans Benefits 
Management System [VBMS] is the Department's key information 
technology initiative designed to transform its paper-centric 
claims environment into one that processes claims 
electronically. National deployment of this system begins in 
the summer of 2012 and continues through 2013. The VA has made 
deployment of this system a linchpin in its strategy to reduce 
the backlog and average wait time for claims to be adjudicated. 
The Committee supports the efforts to transform the VBA 
disability claims process and is hopeful this strategy proves 
to be successful. The Committee directs the Department to 
provide quarterly updates on the implementation of VBMS and to 
provide details of how this implementation has increased the 
efficiency and timeliness of the VBA claims process.
    Innovation Initiative.--Last year, the Committee encouraged 
the Department to use funding from the Information Technology 
Systems account for the Innovation Initiative program for an 
open competition to utilize commercial off-the-shelf technology 
to develop a decision support system and automate VBA's 
Veterans Schedule for Rating Disabilities. The Committee 
directs the VA to report to the Committees on Appropriations of 
both Houses of Congress within 120 days of enactment of this 
act how the VA is utilizing commercial off-the-shelf technology 
to develop a decision support system and automate the VBA's 
Veterans Schedule for Rating Disabilities.

                      OFFICE OF INSPECTOR GENERAL

Appropriations, 2012....................................    $112,391,000
Budget estimate, 2013...................................     113,000,000
Committee recommendation................................     115,000,000

                          PROGRAM DESCRIPTION

    The Office of Inspector General [OIG] was established by 
the Inspector General Act of 1978 and is responsible for the 
audit, investigation, and inspection of all Department of 
Veterans Affairs programs and operations.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $115,000,000 for the Office of 
Inspector General. This is $2,609,000 above the fiscal year 
2012 enacted level and $2,000,000 above the budget request. The 
OIG recently issued a report outlining problems veterans face 
in receiving timely access to mental health services. In light 
of the OIG's findings, the Committee has provided an increase 
for the Inspector General to increase audits of the Veterans 
Health Administration and field activities. The Committee has 
included bill language to make available through September 30, 
2014, up to $6,000,000 for the Office of the Inspector General.

                      CONSTRUCTION, MAJOR PROJECTS

Appropriations, 2012....................................    $589,604,000
Budget estimate, 2013...................................     532,470,000
Committee recommendation................................     532,470,000

                          PROGRAM DESCRIPTION

    The Construction, major projects account provides for 
constructing, altering, extending, and improving any of the 
facilities (including parking projects) under the jurisdiction 
or for the use of the VA, including planning, architectural and 
engineering services, needs assessment, and site acquisition 
where the estimated cost of a project is more than the amount 
set forth in 38 U.S.C. 8104(a)(3)(A). Proceeds realized from 
Enhanced Use Lease activities may be deposited into the 
Construction, major projects and Construction, minor projects 
accounts.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $532,470,000 
for the construction of major projects. This is $57,134,000 
below the fiscal year 2012 enacted level and equal to the 
budget request.
    The following table reflects the President's budget request 
for major construction projects and activities, and the 
corresponding Committee recommendations.

                      CONSTRUCTION, MAJOR PROJECTS
                        [In thousands of dollars]
------------------------------------------------------------------------
                                      Fiscal year 2013      Committee
      Location and description         budget request    recommendation
------------------------------------------------------------------------
Veterans Health Administration
 [VHA]:
    St. Louis, Missouri--Jefferson             130,300           130,300
     Barracks, Medical Facility
     Improvements and Cemetery
     Expansion......................
    Palo Alto, California--Centers             177,823           177,823
     for Ambulatory Care,
     Polytrauma, Blind
     Rehabilitation, and Research...
    Seattle, Washington--New Mental             55,000            55,000
     Health Building................
    Dallas, Texas--Spinal Cord                  33,500            33,500
     Injury Center..................
    Advance Planning Fund...........            70,000            70,000
    Asbestos........................             8,000             8,000
    Construction and Facilities                 24,000            24,000
     Management Resident Engineers
     and Staff......................
    Claims Analyses.................             2,000             2,000
    Facility Security Projects......             7,200             7,200
    Hazardous Waste Abatement.......             5,000             5,000
    Judgment Fund...................             5,000             5,000
                                     -----------------------------------
      Total, VHA....................           517,823           517,823
                                     ===================================
National Cemetery Administration
 [NCA]:
    Advance Planning Fund...........             2,647             2,647
    NCA Land Acquisition Fund.......             7,000             7,000
                                     -----------------------------------
      Total, NCA....................             9,647             9,647
                                     ===================================
General Administration--Staff                    5,000             5,000
 Offices, Advance Planning Fund.....
                                     ===================================
      Total Construction, Major                532,470           532,470
       Projects.....................
------------------------------------------------------------------------

                      CONSTRUCTION, MINOR PROJECTS

Appropriations, 2012....................................    $482,386,000
Budget estimate, 2013...................................     607,530,000
Committee recommendation................................     607,530,000

                          PROGRAM DESCRIPTION

    The Construction, minor projects account provides for 
constructing, altering, extending, and improving any of the 
facilities (including parking) under the jurisdiction or for 
the use of the VA, including planning, assessment of needs, 
architectural and engineering services, and site acquisition, 
where the estimated cost of a project is equal to or less than 
$10,000,000. Public Law 106-117, the Veterans Millennium Health 
Care and Benefits Act of 1999, gave the VA the authority to 
make capital contributions from minor construction in enhanced-
use leases. Proceeds realized from enhanced-use lease 
activities may be deposited into the Construction, major 
projects and Construction, minor projects accounts.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $607,530,000 for minor 
construction. This is $125,144,000 above the fiscal year 2012 
enacted level and equal to the budget request.
    The recommendation includes $506,332,000 for the Veterans 
Health Administration, $58,100,000 for the National Cemetery 
Administration, $13,405,000 for General Administration--Staff 
Offices, and $29,693,000 for the Veterans Benefits 
Administration. The Committee directs the Department to provide 
an expenditure plan within 30 days of enactment of this act for 
the amount appropriated for minor construction.

       GRANTS FOR CONSTRUCTION OF STATE EXTENDED CARE FACILITIES

Appropriations, 2012....................................     $85,000,000
Budget estimate, 2013...................................      85,000,000
Committee recommendation................................      85,000,000

                          PROGRAM DESCRIPTION

    This account is used to provide grants to assist States in 
acquiring or constructing State home facilities for furnishing 
domiciliary or nursing home care to veterans, and to expand, 
remodel, or alter existing buildings for furnishing 
domiciliary, nursing home, or hospital care to veterans in 
State homes. The grant may not exceed 65 percent of the total 
cost of the project. Public Law 102-585 granted permanent 
authority for this program, and Public Law 106-117 provided 
greater specificity in directing VA to prescribe regulations 
for the number of beds for which grant assistance may be 
furnished. This program has been a successful partnership 
between the States and the VA in meeting the long-term care 
needs of elderly veterans for decades.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $85,000,000 for grants for the 
construction of State extended care facilities. This is equal 
to the fiscal year 2012 enacted level and equal to the budget 
request.

             GRANTS FOR CONSTRUCTION OF VETERANS CEMETERIES

Appropriations, 2012....................................     $46,000,000
Budget estimate, 2013...................................      46,000,000
Committee recommendation................................      46,000,000

                          PROGRAM DESCRIPTION

    Public Law 105-368 amended title 38 U.S.C. 2408 and 
established authority to provide aid to States for 
establishment, expansion, and improvement of State veterans 
cemeteries, which are operated and permanently maintained by 
the States. This statutory change increased the maximum Federal 
share from 50 percent to 100 percent in order to fund 
construction costs and the initial equipment expenses when the 
cemetery is established. The States remain responsible for 
providing the land and for paying all costs related to the 
operation and maintenance of the State cemeteries, including 
the costs for subsequent equipment purchases.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $46,000,000 for grants for the 
construction of State veterans cemeteries. This is equal to the 
fiscal year 2012 enacted level and equal to the budget request.

                       Administrative Provisions


                     (INCLUDING TRANSFER OF FUNDS)

    Sec. 201. The Committee includes a provision which outlines 
reprogramming authority and responsibilities for the Veterans 
Benefits Administration.
    Sec. 202. The Committee includes a provision which outlines 
reprogramming authority and responsibilities for the Veterans 
Health Administration.
    Sec. 203. The Committee includes a provision which outlines 
the use of the Salaries and expenses account.
    Sec. 204. The Committee includes a provision mandating that 
only construction funds may be used for land procurement.
    Sec. 205. The Committee includes a provision allowing for 
reimbursements to the Medical services account.
    Sec. 206. The Committee includes a provision allowing for 
payments of prior year obligations.
    Sec. 207. The Committee includes a provision which allows 
for the use of fiscal year 2013 funds for prior year 
obligations.
    Sec. 208. The Committee includes a provision which allows 
for payments from the National Service Life Insurance Fund.
    Sec. 209. The Committee includes a provision which outlines 
the use of funds from enhanced-use lease proceeds.
    Sec. 210. The Committee includes a provision which provides 
for funds for the Office of Resolution Management and the 
Office of Employment Discrimination Complaint Adjudication.
    Sec. 211. The Committee includes a provision which sets a 
limit on new leases without congressional approval.
    Sec. 212. The Committee includes a provision which requires 
disclosure of third-party reimbursement information.
    Sec. 213. The Committee includes a provision which allows 
for the transfer of revenue derived from enhanced-use leases 
into the construction accounts.
    Sec. 214. The Committee includes a provision which outlines 
authorized uses for medical services funds.
    Sec. 215. The Committee includes a provision which allows 
funds in the Medical Care Collection Fund to be transferred 
into the Medical services account.
    Sec. 216. The Committee includes a provision which allows 
eligible veterans in the State of Alaska to obtain medical care 
services.
    Sec. 217. The Committee includes a provision which allows 
for the transfer of funds into the construction accounts.
    Sec. 218. The Committee includes a provision which allows 
for outreach and marketing to enroll new veterans.
    Sec. 219. The Committee includes a provision requiring the 
Secretary of Veterans Affairs to submit quarterly financial 
reports on the Veterans Health Administration.
    Sec. 220. The Committee includes a provision outlining 
transfer authority for the Information technology systems 
account.
    Sec. 221. The Committee includes a provision outlining 
limits on transfers within the Information technology systems 
account.
    Sec. 222. The Committee includes a provision prohibiting 
any funds to be used to contract out any functions performed by 
more than 10 employees without a fair competition process.
    Sec. 223. The Committee includes a provision limiting the 
amount of nonrecurring maintenance funds that can be obligated 
during the last 2 months of the fiscal year.
    Sec. 224. The Committee includes a provision allowing for 
the transfer of funds from certain accounts to the Joint 
Department of Defense/Department of Veterans Affairs Medical 
Facility Demonstration Fund, as authorized by Public Law 111-
84.
    Sec. 225. The Committee includes a provision allowing for 
the transfer of certain funds deposited in the Medical Care 
Collections Fund to the Joint Department of Defense/Department 
of Veterans Affairs Medical Facility Demonstration Fund, as 
authorized by Public Law 111-84.
    Sec. 226. The Committee includes a provision directing a 
minimum of $15,000,000 be transferred from Medical services, 
Medical support and compliance, and Medical facilities to the 
Department of Defense/Department of Veterans Affairs Health 
Care Sharing Incentive Fund, as authorized by section 8111 of 
title 38, United States Code.
    Sec. 227. The Committee includes a provision rescinding 
funds from certain accounts and appropriating additional 
amounts with 2-year authority.
    Sec. 228. The Committee includes a provision requiring 
notification of all bid savings for major construction 
projects.
    Sec. 229. The Committee includes a provision restricting 
scope increases for major construction projects above that 
specified in the original project justification.
    Sec. 230. The Committee includes a provision prohibiting 
the use of funds in the act for any contract using procedures 
that do not give to small business concerns owned and 
controlled by veterans any preference with respect to such 
contract, except for a preference given to small business 
concerns owned and controlled by service-disabled veterans.
    Sec. 231. The Committee includes a provision extending the 
authorization for the VA office in the Philippines through 
December 31, 2013.
    Sec. 232. The Committee includes a provision regarding 
reimbursement rates to State Veterans Homes.

                               TITLE III

                            RELATED AGENCIES

                  American Battle Monuments Commission

                          PROGRAM DESCRIPTION

    The American Battle Monuments Commission [ABMC] is 
responsible for the following: the maintenance and construction 
of U.S. monuments and memorials commemorating the achievements 
in battle of our Armed Forces since April 1917 (the date of the 
United States entry into World War I); the erection of 
monuments and markers by U.S. citizens and organizations in 
foreign countries; and the design, construction, and 
maintenance of permanent military cemetery memorials in foreign 
countries. The Commission maintains 24 military memorial 
cemeteries and 31 monuments, memorials, and markers in 15 
countries around the world, including three memorials on U.S. 
soil.

                         SALARIES AND EXPENSES

Appropriations, 2012....................................     $61,100,000
Budget estimate, 2013...................................      58,400,000
Committee recommendation................................      58,400,000

                        COMMITTEE RECOMMENDATION

    The Committee recommends $58,400,000 for the Salaries and 
expenses account. This amount is $2,700,000 below the fiscal 
year 2012 enacted level and equal to the budget request.

                     FOREIGN CURRENCY FLUCTUATIONS

Appropriations, 2012....................................     $16,000,000
Budget estimate, 2013...................................      15,200,000
Committee recommendation................................      15,200,000

                        COMMITTEE RECOMMENDATION

    The Committee recommends an estimated $15,200,000 for the 
Foreign currency fluctuation account. This amount is $800,000 
below the fiscal year 2012 enacted level and equal to the 
budget request.
    The Committee has again included language in the 
accompanying act, as proposed by the administration, that would 
allow funding for this account on a ``such sums as necessary'' 
basis. Funding the account in this manner allows the Commission 
to maintain cemeteries regardless of the volatility of foreign 
currency fluctuations.

               U.S. Court of Appeals for Veterans Claims


                                OVERVIEW

    The U.S. Court of Appeals for Veterans Claims was 
established by the Veterans' Judicial Review Act of 1988. The 
Court is an independent judicial tribunal with exclusive 
jurisdiction to review decisions of the Board of Veterans' 
Appeals. It has the authority to decide all relevant questions 
of law; interpret constitutional, statutory, and regulatory 
provisions; and determine the meaning or applicability of the 
terms of an action by the Secretary of Veterans Affairs. It is 
authorized to compel action by the Secretary. It is authorized 
to hold unconstitutional or otherwise unlawful and set aside 
decisions, findings, conclusions, rules, and regulations issued 
or adopted by the Secretary of Veterans Affairs, the Board of 
Veterans' Appeals, or the Chairman of the Board that are found 
to be arbitrary or capricious. The Court's principal office 
location is Washington, DC; however, it is a national court, 
empowered to sit anywhere in the United States.

                         SALARIES AND EXPENSES

Appropriations, 2012....................................     $30,770,000
Budget estimate, 2013...................................      32,481,000
Committee recommendation................................      32,481,000

                        COMMITTEE RECOMMENDATION

    The Committee recommends $32,481,000 for the U.S. Court of 
Appeals for Veterans Claims.

                      Department of Defense--Civil


                       Cemeterial Expenses, Army


                                OVERVIEW

    The Secretary of the Army is responsible for the 
administration, operation and maintenance of Arlington National 
Cemetery and the Soldiers' and Airmen's Home National Cemetery. 
In addition to its principal function as a national cemetery, 
Arlington is the site of approximately 3,000 nonfuneral 
ceremonies each year and has approximately 4 million visitors 
annually.

                         SALARIES AND EXPENSES

Appropriations, 2012....................................     $45,800,000
Budget estimate, 2013...................................      45,800,000
Committee recommendation\1\.............................      41,000,000

\1\The fiscal year 2013 budget request for Cemeterial Expenses, Army 
included $4,800,000 for construction. The Committee has provided all 
construction funding within the construction account.
---------------------------------------------------------------------------

                        COMMITTEE RECOMMENDATION

    The Committee recommends $41,000,000 for Salaries and 
expenses. This amount is $4,800,000 below the fiscal year 2012 
enacted level and budget request. To increase oversight of the 
expenditure of funds, the Committee has created a separate 
Construction account and funded all construction activities 
requested within the new account, including the $4,800,000 
requested through the Salaries and expenses account.
    The Committee directs the Executive Director of Arlington 
National Cemetery to continue the office's audits of past 
contracts and outstanding financial obligations, and update the 
Committee on its findings along with quarterly reports on 
unexpended prior year funding, status updates on the upgrading 
of the information technology systems, and reports on ANC's 
expansion plans. The Committee encourages cemetery officials 
and the Department of the Army to work with the Department of 
Veterans Affairs in the development of a common architecture 
software for the information technology system for Arlington 
National Cemetery.

                              CONSTRUCTION

Appropriations, 2012....................................................
Budget estimate, 2013\1\................................................
Committee recommendation................................    $107,800,000

\1\The fiscal year 2013 budget submission for Military Construction, 
Army included a request of $103,000,000 for construction at Arlington 
National Cemetery.
---------------------------------------------------------------------------

                        COMMITTEE RECOMMENDATION

    The Committee recommends $107,800,000 for construction. The 
recommendation includes $103,000,000 for planning, design, and 
construction associated with the Millennium Project and future 
expansion of burial capacity at Arlington National Cemetery 
[ANC]. The Committee recognizes that burial and interment space 
at ANC will run out in approximately 2025 and that capacity 
expansion must be planned and executed well in advance to allow 
for the proper preparation of land for the expansion. ANC plans 
to develop additional burial space through construction of the 
Millennium Project and development of the Navy Annex. The 
administration's submission included this request in title I, 
within the Military Construction, Army account. ANC is funded 
in the Related Agencies title of this act. Therefore, the 
Committee denied funding for these projects in title I and 
instead appropriated the funds directly to the title III 
account that funds Arlington National Cemetery.

                      Armed Forces Retirement Home


                               TRUST FUND

Appropriations, 2012....................................     $65,700,000
Budget estimate, 2013...................................      65,590,000
Committee recommendation................................      65,590,000

                        COMMITTEE RECOMMENDATION

    The Committee recommends authority to expend $65,590,000 
from the Armed Forces Retirement Home [AFRH] Trust Fund to 
operate and maintain the Armed Forces Retirement Home--
Washington, DC, and the Armed Forces Retirement Home--Gulfport, 
Mississippi.

                                TITLE IV

                           GENERAL PROVISIONS

    Sec. 401. The Committee includes a provision that prohibits 
the obligation of funds beyond the current fiscal year unless 
expressly so provided.
    Sec. 402. The Committee includes a provision that prohibits 
the use of funds for programs, projects, or activities not in 
compliance with Federal law relating to risk assessment, the 
protection of private property rights, or unfunded mandates.
    Sec. 403. The Committee includes a provision that requires 
pay raises to be absorbed within the levels appropriated.
    Sec. 404. The Committee includes a provision that prohibits 
the use of funds to support or defeat legislation pending 
before Congress.
    Sec. 405. The Committee includes a provision that 
encourages the expansion of E-commerce technologies and 
procedures.
    Sec. 406. The Committee includes a provision that specifies 
the congressional committees that are to receive all reports 
and notifications.
    Sec. 407. The Committee includes a provision that limits 
funds from being transferred from this appropriations measure 
to any instrumentality of the United States Government without 
authority from an appropriations act.
    Sec. 408. The Committee includes a provision regarding the 
posting of congressional reports on agency Web sites.
    Sec. 409. The Committee includes a provision prohibiting 
the use of funds to establish or maintain a computer network 
unless such network blocks the viewing, downloading, and 
exchanging of pornography, except for law enforcement 
investigation, prosecution, or adjudication activities.
    Sec. 410. The Committee includes a provision limiting the 
construction of facilities for the purposes of housing 
individuals detained at Guantanamo Bay, Cuba.
    Sec. 411. The Committee includes a provision prohibiting 
the use of funds to pay for attendance of more than 50 
employees at any single conference outside the United States.
    Sec. 412. The Committee includes a provision requiring 
agencies to report conference spending to the Inspectors 
General and prohibiting the use of funds made available in this 
act for travel and conference expenses not in compliance with 
Office of Management and Budget memorandum M-12-12 dated May 
11, 2012.

                     PROGRAM, PROJECT, AND ACTIVITY

    In fiscal year 2013, for purposes of the Balanced Budget 
and Emergency Deficit Control Act of 1985 (Public Law 99-177) 
or the Balanced Budget and Emergency Deficit Control 
Reaffirmation Act of 1987 (Public Law 100-119), the following 
information provides the definition of the term ``program, 
project, and activity'' for departments, agencies and programs 
under the jurisdiction of the Military Construction and 
Veterans Affairs, and Related Agencies subcommittee. The term 
``program, project, and activity'' shall include the most 
specific level of budget items identified in the Military 
Construction and Veterans Affairs, and Related Agencies 
Appropriations Act, 2013, the House and Senate Committee 
reports, and the conference report and accompanying joint 
explanatory statement of managers of the committee of 
conference.
    If a sequestration order is necessary, in implementing the 
Presidential order, departments, and agencies shall apply any 
percentage reduction required for fiscal year 2013 pursuant to 
the provisions of Public Law 99-177 or Public Law 100-119 to 
all items specified in the justifications submitted to the 
Committees on Appropriations of the Senate and House of 
Representatives in support of the fiscal year 2013 budget 
estimates, as amended, for such departments and agencies, as 
modified by congressional action, and in addition, for the 
Department of Defense, Military Construction the definition 
shall include specific construction locations as identified in 
the explanatory notes.

  COMPLIANCE WITH PARAGRAPH 7, RULE XVI, OF THE STANDING RULES OF THE 
                                 SENATE

    Paragraph 7 of rule XVI requires that Committee reports 
accompanying general appropriations bills identify each 
recommended amendment which proposes an item of appropriation 
which is not made to carry out the provisions of an existing 
law, a treaty stipulation, or an act or resolution previously 
passed by the Senate during that session.
    The Committee is filing an original bill, which is not 
covered under this rule, but reports this information in the 
spirit of full disclosure.
    The Committee recommends funding for the following programs 
which currently lack authorization:
Title I: Department of Defense
    Military Construction, Army
    Military Construction, Navy and Marine Corps
    Military Construction, Air Force
    Military Construction, Defense-Wide
    Military Construction, Army National Guard
    Military Construction, Air National Guard
    Military Construction, Army Reserve
    Military Construction, Navy 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 Operation and Maintenance, Defense-Wide
    Department of Defense, Family Housing Improvement Fund
    Chemical Demilitarization Construction, Defense-Wide
    Base Realignment and Closure Account, 1990
    Base Realignment and Closure Account, 2005
Title II: Department of Veterans Affairs
    Veterans Benefits Administration
    Veterans Health Administration
    National Cemetery Administration
    Departmental Administration
Title III: Related Agencies
    American Battle Monuments Commission
    U.S. Court of Appeals for Veterans Claims
    Cemeterial Expenses, Army
    Armed Forces Retirement Home

COMPLIANCE WITH PARAGRAPH 7(c), RULE XXVI OF THE STANDING RULES OF THE 
                                 SENATE

    Pursuant to paragraph 7(c) of rule XXVI, on May 22, 2012, 
the Committee ordered favorably reported the bill (S. 3215), 
making appropriations for military construction, the Department 
of Veterans Affairs, and related agencies for the fiscal year 
ending September 30, 2013, and for other purposes, subject to 
amendment, by a recorded vote of 30-0, a quorum being present. 
The vote was as follows:
        Yeas                          Nays
Chairman Inouye
Mr. Leahy
Mr. Harkin
Ms. Mikulski
Mr. Kohl
Mrs. Murray
Mrs. Feinstein
Mr. Durbin
Mr. Johnson
Ms. Landrieu
Mr. Reed
Mr. Lautenberg
Mr. Nelson
Mr. Pryor
Mr. Tester
Mr. Brown
Mr. Cochran
Mr. McConnell
Mr. Shelby
Mrs. Hutchison
Mr. Alexander
Ms. Collins
Ms. Murkowski
Mr. Graham
Mr. Kirk
Mr. Coats
Mr. Blunt
Mr. Moran
Mr. Hoeven
Mr. Johnson

 COMPLIANCE WITH PARAGRAPH 12, RULE XXVI OF THE STANDING RULES OF THE 
                                 SENATE

    Paragraph 12 of rule XXVI requires that Committee reports 
on a bill or joint resolution repealing or amending any statute 
or part of any statute include ``(a) the text of the statute or 
part thereof which is proposed to be repealed; and (b) a 
comparative print of that part of the bill or joint resolution 
making the amendment and of the statute or part thereof 
proposed to be amended, showing by stricken-through type and 
italics, parallel columns, or other appropriate typographical 
devices the omissions and insertions which would be made by the 
bill or joint resolution if enacted in the form recommended by 
the committee.''
    In compliance with this rule, changes in existing law 
proposed to be made by the bill are shown as follows: existing 
law to be omitted is enclosed in black brackets; new matter is 
printed in italic; and existing law in which no change is 
proposed is shown in roman.

                      TITLE 38--VETERANS' BENEFITS


               CHAPTER 3--DEPARTMENT OF VETERANS AFFAIRS


Sec. 315. Regional offices

    (a) * * *
    (b) The Secretary may maintain a regional office in the 
Republic of the Philippines until [December 31, 2012] December 
31, 2013.

                       PART II--GENERAL BENEFITS


   CHAPTER 17--HOSPITAL, NURSING HOME, DOMICILIARY, AND MEDICAL CARE


SUBCHAPTER II--HOSPITAL, NURSING HOME, OR DOMICILIARY CARE AND MEDICAL 
                               TREATMENT


Sec. 1720. Transfers for nursing home care; adult day health care

(a)(1) * * *

           *       *       *       *       *       *       *

    (c)(1)(A) In furnishing nursing home care, adult day health 
care, or other extended care services under this section, the 
Secretary may enter into agreements for furnishing such care or 
services with--
        (i) in the case of the medicare program, a provider of 
        services that has entered into a provider agreement 
        under section 1866(a) of the Social Security Act (42 
        U.S.C. 1395cc(a))[; and];
        (ii) in the case of the medicaid program, a provider 
        participating under a State plan under title XIX of 
        such Act (42 U.S.C. 1396 et seq.)[.]; and
        (iii) a provider of services eligible to enter into a 
        contract pursuant to section 1745(a) of this title who 
        is not otherwise described in clause (i) or (ii).

           *       *       *       *       *       *       *


                 SUBCHAPTER V--PAYMENTS TO STATE HOMES


Sec. 1745. Nursing home care and medications for veterans with service-
                    connected disabilities

(a)(1) [The Secretary shall pay each State home for nursing 
home care at the rate determined under paragraph (2)] The 
Secretary shall enter into a contract (or agreement under 
section 1720(c)(1)of this title) with each State home for 
payment by the Secretary for nursing home care provided in the 
home, in any case in which such care is provided to any veteran 
as follows:

           *       *       *       *       *       *       *

[(2) The rate determined under this paragraph with respect to a 
State home is the lesser of--
        [(A) the applicable or prevailing rate payable in the 
        geographic area in which the State home is located, as 
        determined by the Secretary, for nursing home care 
        furnished in a non-Department nursing home (as that 
        term is defined in section 1720(e)(2) of this title); 
        or
        [(B) a rate not to exceed the daily cost of care, as 
        determined by the Secretary, following a report to the 
        Secretary by the director of the State home.]
    (2) Payment under each contract (or agreement) between the 
Secretary and a State home under paragraph (1) shall be based 
on a methodology, developed by the Secretary in consultation 
with the State home, to adequately reimburse the State home for 
the care provided by the State home under the contract (or 
agreement).

                        BUDGETARY IMPACT OF BILL


  PREPARED IN CONSULTATION WITH THE CONGRESSIONAL BUDGET OFFICE PURSUANT TO SEC. 308(a), PUBLIC LAW 93-344, AS
                                                     AMENDED
                                            [In millions of dollars]
----------------------------------------------------------------------------------------------------------------
                                                              Budget authority                 Outlays
                                                       ---------------------------------------------------------
                                                           Committee     Amount  in     Committee     Amount  in
                                                         allocation\1\      bill      allocation\1\      bill
----------------------------------------------------------------------------------------------------------------
Comparison of amounts in the bill with Committee
 allocations to its subcommittees of amounts in the
 Budget Resolution for 2013: Subcommittee on Military
 Construction and Veterans Affairs, and Related
 Agencies:
    Mandatory.........................................         72,319        72,319         72,017     \1\71,992
    Discretionary.....................................         72,241        71,975         52,731     \1\79,348
        Security......................................         10,920        10,654             NA            NA
        Nonsecurity...................................         61,321        61,321             NA            NA
Projection of outlays associated with the
 recommendation:
    2013..............................................  ..............  ...........  ..............    \2\79,558
    2014..............................................  ..............  ...........  ..............        5,872
    2015..............................................  ..............  ...........  ..............        4,431
    2016..............................................  ..............  ...........  ..............        1,685
    2017 and future years.............................  ..............  ...........  ..............        1,317
Financial assistance to State and local governments                NA           147             NA            7
 for  2013............................................
----------------------------------------------------------------------------------------------------------------
\1\Includes outlays from prior-year budget authority.
\2\Excludes outlays from prior-year budget authority.

NA: Not applicable.


                                MILITARY CONSTRUCTION PROJECT LISTING BY LOCATION
                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                                                     Committee
                                                                                                  recommendation
                                                                      Budget         Committee     compared with
                    Installation and project                         estimate     recommendation     (+ or -)
                                                                                                      budget
                                                                                                     estimate
----------------------------------------------------------------------------------------------------------------
                             ALABAMA

ARMY NATIONAL GUARD:
    FORT MC CLELLAN:
        LIVE FIRE SHOOT HOUSE...................................           5,400           5,400  ..............
                                                                 -----------------------------------------------
          TOTAL, ALABAMA........................................           5,400           5,400  ..............

                             ALASKA

ARMY:
    FORT WAINWRIGHT:
        MODIFIED RECORD FIRE RANGE..............................          10,400          10,400  ..............
    JOINT BASE ELMENDORF-RICHARDSON:
        MODIFIED RECORD FIRE RANGE..............................           7,900           7,900  ..............
                                                                 -----------------------------------------------
          TOTAL, ALASKA.........................................          18,300          18,300  ..............

                             ARIZONA

NAVY:
    YUMA:
        COMBAT AIRCRAFT LOADING APRON...........................          15,985          15,985  ..............
        SECURITY OPERATIONS COMPLEX.............................          13,300          13,300  ..............
DEFENSE-WIDE:
    MARANA:
        SOF PARACHUTE TRAINING FACILITY.........................           6,477           6,477  ..............
    YUMA:
        TRUCK UNLOAD FACILITY...................................           1,300           1,300  ..............
NAVY RESERVE:
    YUMA:
        RESERVE TRAINING FACILITY--YUMA, ARIZONA................           5,379           5,379  ..............
                                                                 -----------------------------------------------
          TOTAL, ARIZONA........................................          42,441          42,441  ..............

                            ARKANSAS

AIR FORCE:
    LITTLE ROCK AFB:
        C-130J FLIGHT SIMULATOR ADDITION........................           4,178           4,178  ..............
        C-130J FUEL SYSTEMS MAINTENANCE HANGAR..................          26,000          26,000  ..............
ARMY NATIONAL GUARD:
    SEARCY:
        FIELD MAINTENANCE SHOP..................................           6,800           6,800  ..............
                                                                 -----------------------------------------------
          TOTAL, ARKANSAS.......................................          36,978          36,978  ..............

                           CALIFORNIA

ARMY:
    CONCORD:
        ENGINEERING/HOUSING MAINTENANCE SHOP....................           3,100           3,100  ..............
        LIGHTNING PROTECTION SYSTEM.............................           5,800           5,800  ..............
NAVY:
    CAMP PENDLETON:
        COMMUNICATION INFORMATION SYSTEMS OPERATIONS COMPLEX....          78,897          78,897  ..............
        MV-22 AVIATION SIMULATOR BUILDING.......................           4,139           4,139  ..............
        SAN JACINTO ROAD EXTENSION..............................           5,074           5,074  ..............
    CORONADO:
        BACHELOR QUARTERS.......................................          76,063          76,063  ..............
        H-60S SIMULATOR TRAINING FACILITY.......................           2,478           2,478  ..............
    LEMOORE:
        BAMS MAINTENANCE TRAINING FACILITY......................          14,843          14,843  ..............
    MIRAMAR:
        HANGAR 5 RENOVATIONS AND ADDITION.......................          27,897          27,897  ..............
    SAN DIEGO:
        ENTRY CONTROL POINT (GATE FIVE).........................          11,752          11,752  ..............
        LCS TRAINING FACILITY...................................          59,436          59,436  ..............
    SEAL BEACH:
        STRATEGIC SYSTEMS WEAPONS EVALUATION TEST LABORATORY....          30,594          30,594  ..............
    TWENTYNINE PALMS:
        LAND EXPANSION PHASE 2..................................          47,270          47,270  ..............
DEFENSE-WIDE:
    CORONADO:
        SOF CLOSE QUARTERS COMBAT/DYNAMIC SHOOT FACILITY........          13,969          13,969  ..............
        SOF INDOOR DYNAMIC SHOOTING FACILITY....................          31,170          31,170  ..............
        SOF MOBILE COMM DETACHMENT SUPPORT FACILITY.............          10,120          10,120  ..............
    DEF FUEL SUPPORT POINT--SAN DIEGO:
        REPLACE FUEL PIER.......................................          91,563          91,563  ..............
    EDWARDS AIR FORCE BASE:
        REPLACE FUEL STORAGE....................................          27,500          27,500  ..............
    TWENTYNINE PALMS:
        MEDICAL CLINIC REPLACEMENT..............................          27,400          27,400  ..............
ARMY NATIONAL GUARD:
    FORT IRWIN:
        MANEUVER AREA TRAINING AND EQUIPMENT SITE PH3...........          25,000          25,000  ..............
AIR NATIONAL GUARD:
    FRESNO YOSEMITE IAP ANG:
        F-15 CONVERSION.........................................          11,000          11,000  ..............
ARMY RESERVE:
    FORT HUNTER LIGGETT:
        ORTC....................................................          64,000          64,000  ..............
        UPH BARRACKS............................................           4,300           4,300  ..............
    TUSTIN:
        ARMY RESERVE CENTER.....................................          27,000          27,000  ..............
                                                                 -----------------------------------------------
          TOTAL, CALIFORNIA.....................................         700,365         700,365  ..............

                            COLORADO

ARMY:
    FORT CARSON:
        DIGITAL MULTIPURPOSE TRAINING RANGE.....................          18,000          18,000  ..............
DEFENSE-WIDE:
    BUCKLEY AIR FORCE BASE:
        DENVER POWER HOUSE......................................          30,000          30,000  ..............
    FORT CARSON:
        SOF BATTALION OPERATIONS COMPLEX........................          56,673          56,673  ..............
    PIKES PEAK:
        HIGH ALTITUDE MEDICAL RESEARCH LABORATORY...............           3,600           3,600  ..............
    PUEBLO DEPOT:
        AMMUNITION DEMILITARIZATION FACILITY, PH XIV............          36,000          36,000  ..............
                                                                 -----------------------------------------------
          TOTAL, COLORADO.......................................         144,273         144,273  ..............

                           CONNECTICUT

ARMY NATIONAL GUARD:
    CAMP HARTELL:
        COMBINED SUPPORT MAINTENANCE SHOP.......................          32,000          32,000  ..............
                                                                 -----------------------------------------------
          TOTAL, CONNECTICUT....................................          32,000          32,000  ..............

                            DELAWARE

DEFENSE-WIDE:
    DOVER AFB:
        REPLACE TRUCK OFF-LOAD FACILITY.........................           2,000           2,000  ..............
ARMY NATIONAL GUARD:
    BETHANY BEACH:
        REGIONAL TRAINING INSTITUTE PH1.........................           5,500           5,500  ..............
                                                                 -----------------------------------------------
          TOTAL, DELAWARE.......................................           7,500           7,500  ..............

                      DISTRICT OF COLUMBIA

ARMY:
    FORT MCNAIR:
        VEHICLE STORAGE BUILDING, INSTALLATION..................           7,200           7,200  ..............
                                                                 -----------------------------------------------
          TOTAL, DISTRICT OF COLUMBIA...........................           7,200           7,200  ..............

                             FLORIDA

NAVY:
    JACKSONVILLE:
        BAMS MISSION CONTROL COMPLEX............................          21,980          21,980  ..............
AIR FORCE:
    TYNDALL AFB:
        F-22 ADAL HANGAR FOR LOW OBSERVABLE/COMPOSITE...........          14,750          14,750  ..............
DEFENSE-WIDE:
    EGLIN AFB:
        SOF AVFID OPS AND MAINTENANCE FACILITIES................          41,695          41,695  ..............
    HURLBURT FIELD:
        CONSTRUCT FUEL STORAGE FACILITY.........................          16,000          16,000  ..............
    MACDILL AFB:
        SOF JOINT SPECIAL OPS UNIVERSITY FACILITY [JSOU]........          34,409          34,409  ..............
ARMY NATIONAL GUARD:
    CAMP BLANDING:
        COMBINED ARMS COLLECTIVE TRAINING FACILITY..............           9,000           9,000  ..............
    MIRAMAR:
        READINESS CENTER........................................          20,000          20,000  ..............
                                                                 -----------------------------------------------
          TOTAL, FLORIDA........................................         157,834         157,834  ..............

                             GEORGIA

ARMY:
    FORT BENNING:
        GROUND SOURCE HEAT TRANSFER SYSTEM......................          16,000          16,000  ..............
    FORT GORDON:
        GROUND SOURCE HEAT TRANSFER SYSTEM......................          12,200          12,200  ..............
        MODIFIED RECORD FIRE RANGE..............................           4,000           4,000  ..............
        MULTIPURPOSE MACHINE GUN RANGE..........................           7,100           7,100  ..............
    FORT STEWART:
        AUTOMATED COMBAT PISTOL QUAL CRSE.......................           3,650           3,650  ..............
        DIGITAL MULTIPURPOSE TRAINING RANGE.....................          22,000          22,000  ..............
        UNMANNED AERIAL VEHICLE COMPLEX.........................          24,000          24,000  ..............
AIR FORCE:
    FORT STEWART:
        AIR SUPPORT OPERATIONS CENTER [SOC].....................           7,250           7,250  ..............
    MOODY AFB:
        HC-130J SIMULATOR FACILITY..............................           8,500           8,500  ..............
                                                                 -----------------------------------------------
          TOTAL, GEORGIA........................................         104,700         104,700  ..............

                             HAWAII

ARMY:
    POHAKULOA TRAINING AREA:
        AUTOMATED INFANTRY PLATOON BATTLE COURSE................          29,000          29,000  ..............
    SCHOFIELD BARRACKS:
        BARRACKS................................................          41,000          41,000  ..............
        BARRACKS................................................          55,000          55,000  ..............
    WHEELER ARMY AIR FIELD:
        COMBAT AVIATION BRIGADE BARRACKS........................          85,000          85,000  ..............
NAVY:
    KANEOHE BAY:
        AIRCRAFT STAGING AREA...................................          14,680          14,680  ..............
        MV-22 HANGAR AND INFRASTRUCTURE.........................          82,630          82,630  ..............
DEFENSE-WIDE:
    JOINT BASE PEARL HARBOR-HICKAM:
        SOF SDVT-1 WATERFRONT OPERATIONS FACILITY...............          24,289          24,289  ..............
ARMY NATIONAL GUARD:
    KAPOLEI:
        ARMY AVIATION SUPPORT FACILITY PH1......................          28,000          28,000  ..............
AIR NATIONAL GUARD:
    JOINT BASE PEARL HARBOR-HICKAM:
        TFI--F-22 COMBAT APRON ADDITION.........................           6,500           6,500  ..............
                                                                 -----------------------------------------------
          TOTAL, HAWAII.........................................         366,099         366,099  ..............

                              IDAHO

ARMY NATIONAL GUARD:
    ORCHARD TRAINIG AREA:
        ORTC (BARRACKS) PH2.....................................          40,000          40,000  ..............
                                                                 -----------------------------------------------
          TOTAL, IDAHO..........................................          40,000          40,000  ..............

                            ILLINOIS

DEFENSE-WIDE:
    GREAT LAKES:
        DRUG LABORATORY REPLACEMENT.............................          28,700          28,700  ..............
    SCOTT AFB:
        DISA FACILITY UPGRADES..................................          84,111          84,111  ..............
        MEDICAL LOGISTICS WAREHOUSE.............................           2,600           2,600  ..............
ARMY RESERVE:
    FORT SHERIDAN:
        ARMY RESERVE CENTER.....................................          28,000          28,000  ..............
                                                                 -----------------------------------------------
          TOTAL, ILLINOIS.......................................         143,411         143,411  ..............

                             INDIANA

DEFENSE-WIDE:
    GRISSOM ARB:
        REPLACE HYDRANT FUEL SYSTEM.............................          26,800          26,800  ..............
ARMY NATIONAL GUARD:
    SOUTH BEND:
        ARMED FORCES RESERVE CENTER ADD/ALT.....................          21,000          21,000  ..............
    TERRE HAUTE:
        FIELD MAINTENANCE SHOP..................................           9,000           9,000  ..............
                                                                 -----------------------------------------------
          TOTAL, INDIANA........................................          56,800          56,800  ..............

                              IOWA

ARMY NATIONAL GUARD:
    CAMP DODGE:
        URBAN ASSAULT COURSE....................................           3,000           3,000  ..............
NAVY RESERVE:
    FORT DES MOINES:
        JOINT RESERVE CENTER--DES MOINES IA.....................          19,162          19,162  ..............
                                                                 -----------------------------------------------
          TOTAL, IOWA...........................................          22,162          22,162  ..............

                             KANSAS

ARMY:
    FORT RILEY:
        UNMANNED AERIAL VEHICLE COMPLEX.........................          12,200          12,200  ..............
ARMY NATIONAL GUARD:
    TOPEKA:
        TAXIWAY, RAMP, AND HANGAR ALTERATIONS...................           9,500           9,500  ..............
                                                                 -----------------------------------------------
          TOTAL, KANSAS.........................................          21,700          21,700  ..............

                            KENTUCKY

ARMY:
    FORT CAMPBELL:
        BATTALION HEADQUARTERS COMPLEX..........................          55,000          55,000  ..............
        LIVE FIRE EXERCISE SHOOTHOUSE...........................           3,800           3,800  ..............
        UNMANNED AERIAL VEHICLE COMPLEX.........................          23,000          23,000  ..............
    FORT KNOX:
        AUTOMATED INFANTRY SQUAD BATTLE COURSE..................           6,000           6,000  ..............
DEFENSE-WIDE:
    BLUE GRASS ARMY DEPOT:
        AMMUNITION DEMILITARIZATION PH XIII.....................         115,000         115,000  ..............
    FORT CAMPBELL:
        REPLACE BARKLEY ELEMENTARY SCHOOL.......................          41,767          41,767  ..............
        SOF GROUND SUPPORT BATTALION............................          26,313          26,313  ..............
        SOF LANDGRAF HANGAR EXTENSION...........................           3,559           3,559  ..............
ARMY NATIONAL GUARD:
    FRANKFORT:
        ARMY AVIATION SUPPORT FACILITY..........................          32,000          32,000  ..............
                                                                 -----------------------------------------------
          TOTAL, KENTUCKY.......................................         306,439         306,439  ..............

                            LOUISIANA

DEFENSE-WIDE:
    BARKSDALE AFB:
        UPGRADE PUMPHOUSE.......................................          11,700          11,700  ..............
NAVY RESERVE:
    NEW ORLEANS:
        TRANSIENT QUARTERS......................................           7,187           7,187  ..............
                                                                 -----------------------------------------------
          TOTAL, LOUISIANA......................................          18,887          18,887  ..............

                            MARYLAND

DEFENSE-WIDE:
    ANNAPOLIS:
        HEALTH CLINIC REPLACEMENT...............................          66,500          66,500  ..............
    BETHESDA NAVAL HOSPITAL:
        BASE INSTALLATION ACCESS/APPEARANCE PLAN................           7,000           7,000  ..............
        ELECTRICAL CAPACITY AND COOLING TOWERS..................          35,600          35,600  ..............
        TEMPORARY MEDICAL FACILITIES............................          26,600          26,600  ..............
    FORT DETRICK:
        USAMRIID STAGE I, INCR 7................................          19,000          19,000  ..............
    FORT MEADE:
        HIGH PERFORMANCE COMPUTING CENTER INC 2.................         300,521         225,521         -75,000
        NSAW RECAPITALIZE BUILDING #1/SITE M INC 1..............          25,000          25,000  ..............
ARMY RESERVE:
    ABERDEEN PROVING GROUND:
        ARMY RESERVE CENTER.....................................          21,000          21,000  ..............
    BALTIMORE:
        ADD/ALT ARMY RESERVE CENTER.............................          10,000          10,000  ..............
                                                                 -----------------------------------------------
          TOTAL, MARYLAND.......................................         511,221         436,221         -75,000

                          MASSACHUSETTS

ARMY NATIONAL GUARD:
    CAMP EDWARDS:
        UNIT TRAINING EQUIPMENT SITE............................          22,000          22,000  ..............
ARMY RESERVE:
    DEVENS RESERVE FORCES TRAINING AREA:
        AUTOMATIC RECORD FIRE RANGE.............................           4,800           4,800  ..............
        COMBAT PISTOL/MP FIREARMS QUALIFICATION.................           3,700           3,700  ..............
                                                                 -----------------------------------------------
          TOTAL, MASSACHUSETTS..................................          30,500          30,500  ..............

                            MINNESOTA

ARMY NATIONAL GUARD:
    CAMP RIPLEY:
        SCOUT RECONNAISANCE RANGE...............................          17,000          17,000  ..............
    ST. PAUL:
        READINESS CENTER........................................          17,000          17,000  ..............
                                                                 -----------------------------------------------
          TOTAL, MINNESOTA......................................          34,000          34,000  ..............

                           MISSISSIPPI

NAVY:
    MERIDIAN:
        DINING FACILITY.........................................          10,926          10,926  ..............
                                                                 -----------------------------------------------
          TOTAL, MISSISSIPPI....................................          10,926          10,926  ..............

                            MISSOURI

ARMY:
    FORT LEONARD WOOD:
        BATTALION COMPLEX FACILITIES............................          26,000          26,000  ..............
        TRAINEE BARRACKS COMPLEX 3, PH 2........................          58,000          58,000  ..............
        VEHICLE MAINTENANCE SHOP................................          39,000          39,000  ..............
DEFENSE-WIDE:
    FORT LEONARD WOOD:
        DENTAL CLINIC...........................................          18,100          18,100  ..............
ARMY NATIONAL GUARD:
    FORT LEONARD WOOD:
        REGIONAL TRAINING INSTITUTE.............................          18,000          18,000  ..............
    KANSAS CITY:
        READINESS CENTER ADD/ALT................................           1,900           1,900  ..............
    MONETT:
        READINESS CENTER ADD/ALT................................             820             820  ..............
    PERRYVILLE:
        READINESS CENTER ADD/ALT................................             700             700  ..............
                                                                 -----------------------------------------------
          TOTAL, MISSOURI.......................................         162,520         162,520  ..............

                             MONTANA

ARMY NATIONAL GUARD:
    MILES CITY:
        READINESS CENTER........................................          11,000          11,000  ..............
                                                                 -----------------------------------------------
          TOTAL, MONTANA........................................          11,000          11,000  ..............

                            NEBRASKA

AIR FORCE:
    OFFUTT AFB:
        US STRATCOM REPLACEMENT FACILITY, INCR 2................         161,000         128,000         -33,000
                                                                 -----------------------------------------------
          TOTAL, NEBRASKA.......................................         161,000         128,000         -33,000

                             NEVADA

ARMY RESERVE:
    LAS VEGAS:
        ARMY RESERVE CENTER/AMSA................................          21,000          21,000  ..............
                                                                 -----------------------------------------------
          TOTAL, NEVADA.........................................          21,000          21,000  ..............

                           NEW JERSEY

ARMY:
    JOINT BASE MCGUIRE-DIX-LAKEHURST:
        FLIGHT EQUIPMENT COMPLEX................................          47,000          47,000  ..............
    PICATINNY ARSENAL:
        BALLISTIC EVALUATION CENTER.............................          10,200          10,200  ..............
NAVY:
    EARLE:
        COMBAT SYSTEM ENGINEERING BUILDING ADDITION.............          33,498          33,498  ..............
ARMY NATIONAL GUARD:
    SEA GIRT:
        REGIONAL TRAINING INSTITUTE.............................          34,000          34,000  ..............
ARMY RESERVE:
    JOINT BASE MCGUIRE-DIX-LAKEHURST:
        AUTOMATED INFANTRY SQUAD BATTLE COURSE..................           7,400           7,400  ..............
                                                                 -----------------------------------------------
          TOTAL, NEW JERSEY.....................................         132,098         132,098  ..............

                           NEW MEXICO

AIR FORCE:
    HOLLOMAN AFB:
        MQ-9 MAINTENANCE HANGAR.................................          25,000          25,000  ..............
DEFENSE-WIDE:
    CANNON AFB:
        MEDICAL/DENTAL CLINIC REPALCEMENT.......................          71,023          71,023  ..............
        SOF AC-130J COMBAT PARKING APRON........................          22,062          22,062  ..............
AIR NATIONAL GUARD:
    KIRTLAND AFB:
        ALTER TARGET INTELLIGENCE FACILITY......................           8,500           8,500  ..............
                                                                 -----------------------------------------------
          TOTAL, NEW MEXICO.....................................         126,585         126,585  ..............

                            NEW YORK

ARMY:
    FORT DRUM:
        AIRCRAFT MAINTENANCE HANGAR.............................          95,000          95,000  ..............
    U.S. MILITARY ACADEMY:
        CADET BARRACKS..........................................         192,000          86,000        -106,000
DEFENSE-WIDE:
    FORT DRUM:
        IDT COMPLEX.............................................          25,900          25,900  ..............
        SOLDIER SPECIALTY CARE CLINIC...........................          17,300          17,300  ..............
ARMY NATIONAL GUARD:
    STORMVILLE:
        COMBINED SUPPORT MAINT SHOP PH1.........................          24,000          24,000  ..............
NAVY RESERVE:
    BROOKLYN:
        VEHICLE MAINTENANACE FACILITY--BROOKLYN, NEW YORK.......           4,430           4,430  ..............
AIR FORCE RESERVE:
    NIAGARA FALLS IAP:
        FLIGHT SIMULATOR FACILITY...............................           6,100           6,100  ..............
                                                                 -----------------------------------------------
          TOTAL, NEW YORK.......................................         364,730         258,730        -106,000

                         NORTH CAROLINA

ARMY:
    FORT BRAGG:
        AERIAL GUNNERY RANGE....................................          42,000          42,000  ..............
        INFRASTRUCTURE..........................................          30,000  ..............         -30,000
        UNMANNED AERIAL VEHICLE COMPLEX.........................          26,000          26,000  ..............
NAVY:
    CAMP LEJEUNE:
        BASE ACCESS AND ROAD--PHASE 3...........................          40,904          40,904  ..............
        STAFF NCO ACADEMY FACILITIES............................          28,986          28,986  ..............
    CHERRY POINT MARINE CORPS AIR STATION:
        ARMORY..................................................          11,581          11,581  ..............
        MARINE AIR SUPPORT SQUADRON COMPOUND....................          34,310          34,310  ..............
    NEW RIVER:
        PERSONNEL ADMINISTRATION CENTER.........................           8,525           8,525  ..............
DEFENSE-WIDE:
    CAMP LEJEUNE:
        MEDICAL CLINIC REPLACEMENT..............................          21,200          21,200  ..............
        SOF MARINE BATTALION COMPANY/TEAM FACILITIES............          53,399          53,399  ..............
        SOF SURVIVAL EVASION RESISTANCE ESCAPE TRAINING FACILITY           5,465           5,465  ..............
    FORT BRAGG:
        SOF BATTALION OPERATIONS FACILITY.......................          40,481          50,481         +10,000
        SOF CIVIL AFFAIRS BATTALION COMPLEX.....................          31,373          41,373         +10,000
        SOF SUPPORT ADDITION....................................           3,875           3,875  ..............
        SOF SUSTAINMENT BRIGADE COMPLEX.........................          24,693          34,693         +10,000
    SEYMOUR JOHNSON AFB:
        MEDICAL CLINIC REPLACEMENT..............................          53,600          53,600  ..............
        REPLACE PIPELINE........................................           1,850           1,850  ..............
                                                                 -----------------------------------------------
          TOTAL, NORTH CAROLINA.................................         458,242         458,242  ..............

                          NORTH DAKOTA

AIR FORCE:
    MINOT AFB:
        B-52 ADD/ALTER MUNITIONS AGE FACILITY...................           4,600           4,600  ..............
                                                                 -----------------------------------------------
          TOTAL, NORTH DAKOTA...................................           4,600           4,600  ..............

                              OHIO

ARMY NATIONAL GUARD:
    CHILLICOTHE:
        FIELD MAINTENANCE SHOP ADD/ALT..........................           3,100           3,100  ..............
    DELAWARE:
        READINESS CENTER........................................          12,000          12,000  ..............
                                                                 -----------------------------------------------
          TOTAL, OHIO...........................................          15,100          15,100  ..............

                            OKLAHOMA

ARMY:
    FORT SILL:
        MODIFIED RECORD FIRE RANGE..............................           4,900           4,900  ..............
ARMY NATIONAL GUARD:
    CAMP GRUBER:
        OPERATIONS READINESS TRAINING COMPLEX...................          25,000          25,000  ..............
                                                                 -----------------------------------------------
          TOTAL, OKLAHOMA.......................................          29,900          29,900  ..............

                          PENNSYLVANIA

DEFENSE-WIDE:
    DEF DISTRIBUTION DEPOT NEW CUMBERLAND:
        REPLACE COMMUNICATIONS BUILDING.........................           6,800           6,800  ..............
        REPLACE RESERVOIR.......................................           4,300           4,300  ..............
        REPLACE SEWAGE TREATMENT PLANT..........................           6,300           6,300  ..............
                                                                 -----------------------------------------------
          TOTAL, PENNSYLVANIA...................................          17,400          17,400  ..............

                         SOUTH CAROLINA

ARMY:
    FORT JACKSON:
        TRAINEE BARRACKS COMPLEX 2, PH 2........................          24,000          24,000  ..............
NAVY:
    BEAUFORT:
        AIRCRAFT MAINTENANCE HANGAR.............................          42,010          42,010  ..............
        AIRFIELD SECURITY UPGRADES..............................          13,675          13,675  ..............
        GROUND SUPPORT EQUIPMENT SHOP...........................           9,465           9,465  ..............
        RECYCLING/HAZARDOUS WASTE FACILITY......................           3,743           3,743  ..............
        SIMULATED LHD FLIGHT DECK...............................          12,887          12,887  ..............
    PARRIS ISLAND:
        FRONT GATE ATFP IMPROVEMENTS............................          10,135          10,135  ..............
DEFENSE-WIDE:
    SHAW AFB:
        MEDICAL CLINIC REPLACEMENT..............................          57,200          57,200  ..............
                                                                 -----------------------------------------------
          TOTAL, SOUTH CAROLINA.................................         173,115         173,115  ..............

                              TEXAS

ARMY:
    CORPUS CHRISTI:
        AIRCRAFT COMPONENT MAINTENANCE SHOP.....................          13,200          13,200  ..............
        AIRCRAFT PAINT SHOP.....................................          24,000          24,000  ..............
    FORT BLISS:
        MULTIPURPOSE MACHINE GUN RANGE..........................           7,200           7,200  ..............
    FORT HOOD:
        MODIFIED RECORD FIRE RANGE..............................           4,200           4,200  ..............
        TRAINING AIDS CENTER....................................          25,000          25,000  ..............
        UNMANNED AERIAL VEHICLE COMPLEX.........................          22,000          22,000  ..............
    JOINT BASE SAN ANTONIO:
        BARRACKS................................................          21,000          21,000  ..............
AIR FORCE:
    JOINT BASE SAN ANTONIO:
        DORMITORY (144 RM)......................................          18,000          18,000  ..............
DEFENSE-WIDE:
    FORT BLISS:
        HOSPITAL REPLACEMENT INCR 4.............................         207,400         107,400        -100,000
    JOINT BASE SAN ANTONIO:
        AMBULATORY CARE CENTER PHASE 3 INCR.....................          80,700          80,700  ..............
    RED RIVER ARMY DEPOT:
        DFAS FACILITY...........................................          16,715          16,715  ..............
NAVY RESERVE:
    FORT WORTH:
        COMMERCIAL VEHICLE INSPECTION SITE......................          11,256          11,256  ..............
                                                                 -----------------------------------------------
          TOTAL, TEXAS..........................................         450,671         350,671        -100,000

                              UTAH

AIR FORCE:
    HILL AFB:
        F-35 ADAL BUILDING 118 FOR FLIGHT SIMULATOR.............           4,000           4,000  ..............
        F-35 ADAL HANGAR 45W/AMU................................           7,250           7,250  ..............
        F-35 MODULAR STORAGE MAGAZINES..........................           2,280           2,280  ..............
DEFENSE-WIDE:
    CAMP WILLIAMS:
        IC CNCI DATA CENTER 1 INC 4.............................         191,414         191,414  ..............
ARMY NATIONAL GUARD:
    CAMP WILLIAMS:
        BEQ FACILITY (REGIONAL TRAINING INSTITUTE)..............          15,000          15,000  ..............
        REGIONAL TRAINING INSTITUTE PH2.........................          21,000          21,000  ..............
                                                                 -----------------------------------------------
          TOTAL, UTAH...........................................         240,944         240,944  ..............

                            VIRGINIA

ARMY:
    ARLINGTON:
        CEMETERY EXPANSION MILLENNIUM SITE......................          84,000  ..............         -84,000
    FORT BELVOIR:
        SECURE ADMIN/OPERATIONS FACILITY........................          94,000          94,000  ..............
    FORT LEE:
        ADV INDIVIDUAL TRAINING BARRACKS COMPLEX, PH2...........          81,000          81,000  ..............
NAVY:
    DAHLGREN:
        CRUISER/DESTROYER UPGRADE TRAINING FACILITY.............          16,494          16,494  ..............
        PHYSICAL FITNESS CENTER.................................          11,734          11,734  ..............
    OCEANA NAVAL AIR STATION:
        A SCHOOL BARRACKS.......................................          39,086          39,086  ..............
    PORTSMOUTH:
        DRYDOCK 8 ELECTRICAL DISTRIBUTION UPGRADE...............          32,706          32,706  ..............
    QUANTICO:
        INFRASTRUTURE--WIDEN RUSSELL ROAD.......................          14,826          14,826  ..............
        THE BASIC SCHOOL STUDENT QUARTERS--PHASE 7..............          31,012          31,012  ..............
        WEAPONS TRAINING BATTALION MESS HALL....................          12,876          12,876  ..............
    YORKTOWN:
        ARMORY..................................................           4,259           4,259  ..............
        BACHELOR ENLISTED QUARTERS..............................          18,422          18,422  ..............
        MOTOR TRANSPORTATION FACILITY...........................           6,188           6,188  ..............
        REGIMENTAL HEADQUARTERS.................................          11,015          11,015  ..............
        SUPPLY WAREHOUSE FACILITY...............................           8,939           8,939  ..............
DEFENSE-WIDE:
    JOINT EXPEDITIONARY BASE LITTLE CREEK--STORY:
        SOF COMBAT SERVICES SUPPORT FACILITY--EAST..............          11,132          11,132  ..............
    NORFOLK:
        VETERINARY FACILITY REPLACEMENT.........................           8,500           8,500  ..............
                                                                 -----------------------------------------------
          TOTAL, VIRGINIA.......................................         486,189         402,189         -84,000

                           WASHINGTON

ARMY:
    JOINT BASE LEWIS-MCCHORD:
        BATTALION COMPLEX.......................................          73,000          73,000  ..............
        WASTE WATER TREATMENT PLANT.............................          91,000          91,000  ..............
    YAKIMA:
        CONVOY LIVE FIRE RANGE..................................           5,100           5,100  ..............
NAVY:
    KITSAP:
        EXPLOSIVES HANDLING WHARF #2 (INC)......................         280,041         254,200         -25,841
    WHIDBEY ISLAND:
        EA-18G FLIGHT SIMULATOR FACILITY........................           6,272           6,272  ..............
DEFENSE-WIDE:
    FORT LEWIS:
        SOF BATTALION OPERATIONS FACILITY.......................          46,553          46,553  ..............
        SOF MILITARY WORKING DOG KENNEL.........................           3,967           3,967  ..............
ARMY NATIONAL GUARD:
    FORT LEWIS:
        READINESS CENTER........................................          35,000          35,000  ..............
ARMY RESERVE:
    JOINT BASE LEWIS-MCCHORD:
        ARMY RESERVE CENTER.....................................          40,000          40,000  ..............
                                                                 -----------------------------------------------
          TOTAL, WASHINGTON.....................................         580,933         555,092         -25,841

                          WEST VIRGINIA

ARMY NATIONAL GUARD:
    LOGAN:
        READINESS CENTER........................................          14,200          14,200  ..............
                                                                 -----------------------------------------------
          TOTAL, WEST VIRGINIA..................................          14,200          14,200  ..............

                            WISCONSIN

ARMY NATIONAL GUARD:
    WAUSAU:
        FIELD MAINTENANCE SHOP..................................          10,000          10,000  ..............
ARMY RESERVE:
    FORT MCCOY:
        CENTRAL ISSUE FACILITY..................................          12,200          12,200  ..............
        DINING FACILITY.........................................           8,600           8,600  ..............
        ECS TACTICAL EQUIPMENT MAINTENANCE FACILTY [TEMF].......          27,000          27,000  ..............
                                                                 -----------------------------------------------
          TOTAL, WISCONSIN......................................          57,800          57,800  ..............

                             WYOMING

AIR NATIONAL GUARD:
    CHEYENNE MAP:
        C-130 FLIGHT SIMULATOR TRAINING FACILITY................           6,486           6,486  ..............
                                                                 -----------------------------------------------
          TOTAL, WYOMING........................................           6,486           6,486  ..............

                         BAHRAIN ISLAND

NAVY:
    SW ASIA:
        COMBINED DINING FACILITY................................           9,819           9,819  ..............
        TRANSIENT QUARTERS......................................          41,529          41,529  ..............
                                                                 -----------------------------------------------
          TOTAL, BAHRAIN ISLAND.................................          51,348          51,348  ..............

                             BELGIUM

DEFENSE-WIDE:
    BRUSSELS:
        NATO HEADQUARTERS FACILITY..............................          26,969          26,969  ..............
                                                                 -----------------------------------------------
          TOTAL, BELGIUM........................................          26,969          26,969  ..............

                          DIEGO GARCIA

NAVY:
    DIEGO GARCIA:
        COMMUNICATIONS INFRASTRUCTURE...........................           1,691           1,691  ..............
                                                                 -----------------------------------------------
          TOTAL, DIEGO GARCIA...................................           1,691           1,691  ..............

                            DJIBOUTI

NAVY:
    CAMP LEMONIER:
        CONTAINERIZED LIVING AND WORK UNITS.....................           7,510           7,510  ..............
        FITNESS CENTER..........................................          26,960          26,960  ..............
        GALLEY ADDITION AND WAREHOUSE...........................          22,220          22,220  ..............
        JOINT HQ/JOINT OPERATIONS CENTER FACILITY...............          42,730          42,730  ..............
                                                                 -----------------------------------------------
          TOTAL, DJIBOUTI.......................................          99,420          99,420  ..............

                             GERMANY

DEFENSE-WIDE:
    RHINE ORDNANCE BARRACKS:
        MEDICAL CENTER REPLACEMENT INCR 2.......................         127,000         127,000  ..............
    STUTTGART-PATCH BARRACKS:
        DISA EUROPE FACILITY UPGRADES...........................           2,413           2,413  ..............
    VOGELWEH:
        REPLACE VOGELWEH ELEMENTARY SCHOOL......................          61,415          61,415  ..............
    WEISBADEN:
        WEISBADEN HIGH SCHOOL ADDITION..........................          52,178          52,178  ..............
                                                                 -----------------------------------------------
          TOTAL, GERMANY........................................         243,006         243,006  ..............

                             GREECE

NAVY:
    SOUDA BAY:
        AIRCRAFT PARKING APRON EXPANSION........................          20,493          20,493  ..............
        INTERMODAL ACCESS ROAD..................................           4,630           4,630  ..............
                                                                 -----------------------------------------------
          TOTAL, GREECE.........................................          25,123          25,123  ..............

                            GREENLAND

AIR FORCE:
    THULE AB:
        DORMITORY (48 PN).......................................          24,500          24,500  ..............
                                                                 -----------------------------------------------
          TOTAL, GREENLAND......................................          24,500          24,500  ..............

                              GUAM

NAVY:
    JOINT REGION MARIANAS:
        NORTH RAMP PARKING (ANDERSEN AFB)--INC 2................          25,904  ..............         -25,904
DEFENSE-WIDE:
    ANDERSEN AFB:
        UPGRADE FUEL PIPELINE...................................          67,500  ..............         -67,500
ARMY NATIONAL GUARD:
    BARRIGADA:
        JFHQ PH4................................................           8,500           8,500  ..............
                                                                 -----------------------------------------------
          TOTAL, GUAM...........................................         101,904           8,500         -93,404

                      GUANTANAMO BAY, CUBA

DEFENSE-WIDE:
    GUANTANAMO BAY:
        REPLACE FUEL PIER.......................................          37,600          37,600  ..............
        REPLACE TRUCK LOAD FACILITY.............................           2,600           2,600  ..............
                                                                 -----------------------------------------------
          TOTAL, GUANTANAMO BAY, CUBA...........................          40,200          40,200  ..............

                              ITALY

ARMY:
    CAMP EDERLE:
        BARRACKS................................................          36,000          36,000  ..............
    VICENZA:
        SIMULATIONS CENTER......................................          32,000          32,000  ..............
AIR FORCE:
    AVIANO AB:
        F-16 MISSION TRAINING CENTER............................           9,400           9,400  ..............
                                                                 -----------------------------------------------
          TOTAL, ITALY..........................................          77,400          77,400  ..............

                              JAPAN

ARMY:
    OKINAWA:
        SATELLITE COMMUNICATIONS FACILITY.......................          78,000          78,000  ..............
    SAGAMI:
        VEHICLE MAINTENANCE SHOP................................          18,000          18,000  ..............
NAVY:
    IWAKUNI:
        MAINTENANCE HANGAR IMPROVEMENTS.........................           5,722           5,722  ..............
        VERTICAL TAKE-OFF AND LANDING PAD NORTH.................           7,416           7,416  ..............
    OKINAWA:
        BACHELOR QUARTERS.......................................           8,206           8,206  ..............
DEFENSE-WIDE:
    CAMP ZAMA:
        RENOVATE ZAMA HIGH SCHOOL...............................          13,273          13,273  ..............
    KADENA AB:
        REPLACE ELEMENTARY SCHOOL...............................          71,772          71,772  ..............
        REPLACE STEARLEY HEIGHTS ELEMENTARY SCHOOL..............          71,773          71,773  ..............
    SASEBO:
        REPLACE SASEBO ELEMENTARY SCHOOL........................          35,733          35,733  ..............
    ZUKERAN:
        REPLACE ZUKERAN ELEMENTARY SCHOOL.......................          79,036          79,036  ..............
                                                                 -----------------------------------------------
          TOTAL, JAPAN..........................................         388,931         388,931  ..............

                              KOREA

ARMY:
    CAMP HUMPHREYS:
        BATTALION HEADQUARTERS COMPLEX..........................          45,000          45,000  ..............
DEFENSE-WIDE:
    KUNSAN AIR BASE:
        MEDICAL/DENTAL CLINIC ADDITION..........................          13,000          13,000  ..............
    OSAN AFB:
        HOSPITAL ADDITION/ALTERATION............................          34,600          34,600  ..............
        REPLACE OSAN ELEMENTARY SCHOOL..........................          42,692          42,692  ..............
                                                                 -----------------------------------------------
          TOTAL, KOREA..........................................         135,292         135,292  ..............

                           PUERTO RICO

ARMY NATIONAL GUARD:
    CAMP SANTIAGO:
        READINESS CENTER........................................           3,800           3,800  ..............
    CEIBA:
        REFILL STATION BUILDING.................................           2,200           2,200  ..............
    GUAYNABO:
        READINESS CENTER [JFHQ].................................          15,000          15,000  ..............
    GURABO:
        READINESS CENTER........................................          14,700          14,700  ..............
                                                                 -----------------------------------------------
          TOTAL, PUERTO RICO....................................          35,700          35,700  ..............

                             ROMANIA

NAVY:
    DEVESELU, ROMANIA:
        AEGIS ASHORE MISSILE DEFENSE COMPLEX....................          45,205          45,205  ..............
DEFENSE-WIDE:
    DEVESELU, ROMANIA:
        AEGIS ASHORE MISSILE DEFENSE SYSTEM COMPLEX.............         157,900         157,900  ..............
                                                                 -----------------------------------------------
          TOTAL, ROMANIA........................................         203,105         203,105  ..............

                              SPAIN

NAVY:
    ROTA:
        GENERAL PURPOSE WAREHOUSE...............................           3,378           3,378  ..............
        HIGH EXPLOSIVE MAGAZINE.................................          13,837          13,837  ..............
                                                                 -----------------------------------------------
          TOTAL, SPAIN..........................................          17,215          17,215  ..............

                         UNITED KINGDOM

DEFENSE-WIDE:
    MENWITH HILL STATION:
        MHS UTILITIES AND ROADS.................................           3,795           3,795  ..............
        REPLACE MENWITH HILL ELEMENTARY/HIGH SCHOOL.............          46,488          46,488  ..............
    RAF FELTWELL:
        FELTWELL ELEMENTARY SCHOOL ADDITION.....................          30,811          30,811  ..............
    RAF MILDENHALL:
        SOF CV-22 SIMULATOR FACILITY............................           6,490           6,490  ..............
                                                                 -----------------------------------------------
          TOTAL, UNITED KINGDOM.................................          87,584          87,584  ..............

NATO SECURITY INVESTMENT PROGRAM................................         254,163         254,163  ..............

                      WORLDWIDE UNSPECIFIED

ARMY:
    HOST NATION SUPPORT.........................................          34,000          34,000  ..............
    MINOR CONSTRUCTION..........................................          25,000          25,000  ..............
    PLANNING AND DESIGN.........................................          65,173          46,173         -19,000
NAVY:
    PLANNING AND DESIGN.........................................         102,619         102,619  ..............
    MINOR CONSTRUCTION..........................................          16,535          16,535  ..............
    BAMS OPERATIONAL FACILITIES.................................          34,048          34,048  ..............
AIR FORCE:
    PLANNING AND DESIGN.........................................          18,635          18,635  ..............
    MINOR CONSTRUCTION..........................................          18,200          18,200  ..............
    SANITARY SEWER LIFT/PUMP STATION............................           2,000           2,000  ..............
    TRANSIENT CONTINGENCY DORMITORY.............................          17,625  ..............         -17,625
    TRANSIENT AIRCRAFT HANGARS..................................          15,032  ..............         -15,032
DEFENSE-WIDE:
    CONTINGENCY CONSTRUCTION....................................          10,000          10,000  ..............
    ENERGY CONSERVATION INVESTMENT PROGRAM......................         150,000         150,000  ..............
    PLANNING AND DESIGN:
        DEFENSE LEVEL ACTIVITIES................................          47,978          37,978         -10,000
        DEPARTMENT OF DEFENSE DEPENDENT EDUCATION...............         105,569         105,569  ..............
        ENERGY CONSERVATION INVESTMENT PROGRAM..................  ..............          10,000         +10,000
        NATIONAL SECURITY AGENCY................................           8,300           8,300  ..............
        SPECIAL OPERATIONS COMMAND..............................          27,620          27,620  ..............
        TRICARE MANAGEMENT ACTIVITY.............................         105,700         105,700  ..............
        WASHINGTON HEADQUARTERS SERVICE.........................           7,928           7,928  ..............
        MISSILE DEFENSE AGENCY..................................           4,548           4,548  ..............
        DEFENSE INTELLIGENCE AGENCY.............................           2,919           2,919  ..............
        DEFENSE LOGISTICS AGENCY................................           5,000           5,000  ..............
                                                                 -----------------------------------------------
          SUBTOTAL, PLANNING AND DESIGN.........................         315,562         315,562  ..............

    UNSPECIFIED MINOR CONSTRUCTION:
        DEFENSE LOGISTICS AGENCY................................           7,254           7,254  ..............
        DEPARTMENT OF DEFENSE DEPENDENT EDUCATION...............           4,091           4,091  ..............
        NATIONAL SECURITY AGENCY................................           3,000           3,000  ..............
        JOINT CHIEFS OF STAFF...................................           6,440           6,440  ..............
        SPECIAL OPERATIONS COMMAND..............................          10,000          10,000  ..............
        TRICARE MANAGEMENT ACTIVITY.............................           5,000           5,000  ..............
        DEFENSE LEVEL ACTIVITIES................................           3,000           3,000  ..............
                                                                 -----------------------------------------------
          SUBTOTAL, UNSPECIFIED MINOR CONSTRUCTION..............          38,785          38,785  ..............

ARMY NATIONAL GUARD:
    PLANNING AND DESIGN.........................................          26,622          26,622  ..............
    MINOR CONSTRUCTION..........................................          15,057          15,057  ..............
AIR NATIONAL GUARD:
    PLANNING AND DESIGN.........................................           4,000           4,000  ..............
    MINOR CONSTRUCTION..........................................           5,900           5,900  ..............
ARMY RESERVE:
    PLANNING AND DESIGN.........................................          15,951          15,951  ..............
    MINOR CONSTRUCTION..........................................          10,895          10,895  ..............
NAVY RESERVE:
    PLANNING AND DESIGN.........................................           2,118           2,118  ..............
    MINOR CONSTRUCTION..........................................  ..............  ..............  ..............
AIR FORCE RESERVE:
    PLANNING AND DESIGN.........................................           2,879           2,879  ..............
    MINOR CONSTRUCTION..........................................           2,000           2,000  ..............

                      FAMILY HOUSING, ARMY

PLANNING AND DESIGN.............................................           4,641           4,641  ..............
                                                                 -----------------------------------------------
      SUBTOTAL, CONSTRUCTION....................................           4,641           4,641  ..............

OPERATION AND MAINTENANCE:
    UTILITIES ACCOUNT...........................................          88,112          88,112  ..............
    SERVICES ACCOUNT............................................          13,487          13,487  ..............
    MANAGEMENT ACCOUNT..........................................          56,970          56,970  ..............
    MISCELLANEOUS ACCOUNT.......................................             620             620  ..............
    FURNISHINGS ACCOUNT.........................................          31,785          31,785  ..............
    LEASING.....................................................         203,533         203,533  ..............
    MAINTENANCE OF REAL PROPERTY................................         109,534         109,534  ..............
    PRIVATIZATION SUPPORT COSTS.................................          26,010          26,010  ..............
                                                                 -----------------------------------------------
      SUBTOTAL, OPERATION AND MAINTENANCE.......................         530,051         530,051  ..............

              FAMILY HOUSING, NAVY AND MARINE CORPS

CONSTRUCTION IMPROVEMENTS.......................................          97,655          97,655  ..............
PLANNING AND DESIGN.............................................           4,527           4,527  ..............
                                                                 -----------------------------------------------
      SUBTOTAL, CONSTRUCTION....................................         102,182         102,182  ..............

OPERATION AND MAINTENANCE:
    UTILITIES ACCOUNT...........................................          80,860          80,860  ..............
    SERVICES ACCOUNT............................................          19,615          19,615  ..............
    MANAGEMENT ACCOUNT..........................................          62,741          62,741  ..............
    MISCELLANEOUS ACCOUNT.......................................             491             491  ..............
    FURNISHINGS ACCOUNT.........................................          17,697          17,697  ..............
    LEASING.....................................................          83,774          83,774  ..............
    MAINTENANCE OF REAL PROPERTY................................          85,254          85,254  ..............
    PRIVATIZATION SUPPORT COSTS.................................          27,798          27,798  ..............
                                                                 -----------------------------------------------
      SUBTOTAL, OPERATION AND MAINTENANCE.......................         378,230         378,230  ..............

                    FAMILY HOUSING, AIR FORCE

CONSTRUCTION IMPROVEMENTS.......................................          79,571          79,571  ..............
PLANNING AND DESIGN.............................................           4,253           4,253  ..............
                                                                 -----------------------------------------------
      SUBTOTAL, CONSTRUCTION....................................          83,824          83,824  ..............

OPERATION AND MAINTENANCE:
    UTILITIES ACCOUNT...........................................          75,662          75,662  ..............
    MANAGEMENT ACCOUNT..........................................          55,002          55,002  ..............
    SERVICES ACCOUNT............................................          16,550          16,550  ..............
    FURNISHINGS ACCOUNT.........................................          37,878          37,878  ..............
    MISCELLANEOUS ACCOUNT.......................................           1,943           1,943  ..............
    LEASING.....................................................          62,730          62,730  ..............
    MAINTENANCE.................................................         201,937         201,937  ..............
    PRIVATIZATION SUPPORT COSTS.................................          46,127          46,127  ..............
                                                                 -----------------------------------------------
      SUBTOTAL, OPERATION AND MAINTENANCE.......................         497,829         497,829  ..............

                  FAMILY HOUSING, DEFENSE-WIDE

OPERATION AND MAINTENANCE:
    NATIONAL SECURITY AGENCY:
        UTILITIES...............................................              12              12  ..............
        FURNISHING..............................................              66              66  ..............
        LEASING.................................................          10,822          10,822  ..............
        MAINTENANCE OF REAL PROPERTY............................              73              73  ..............
    DEFENSE INTELLIGENCE AGENCY:
        FURNISHINGS.............................................           4,660           4,660  ..............
        LEASING.................................................          35,333          35,333  ..............
    DEFENSE LOGISTICS AGENCY:
        UTILITIES...............................................             283             283  ..............
        FURNISHINGS.............................................             422             422  ..............
        MAINTENANCE OF REAL PROPERTY............................             567             567  ..............
                                                                 -----------------------------------------------
          SUBTOTAL, OPERATION AND MAINTENANCE...................          52,238          52,238  ..............

DOD FAMILY HOUSING IMPROVEMENT FUND.............................           1,786           1,786  ..............
HOMEOWNERS ASSISTANCE PROGRAM...................................  ..............  ..............  ..............

                  BASE REALIGNMENT AND CLOSURE

BASE REALIGNMENT AND CLOSURE ACCOUNT, 1990......................         349,396         349,396  ..............
BASE REALIGNMENT AND CLOSURE ACCOUNT, 2005......................         126,697         126,697  ..............
                                                                 -----------------------------------------------
      SUBTOTAL, BRAC............................................         476,093         476,093  ..............

                              RECAP

ARMY............................................................       1,923,323       1,684,323        -239,000
NAVY AND MARINE CORPS...........................................       1,701,985       1,650,240         -51,745
AIR FORCE.......................................................         388,200         322,543         -65,657
DEFENSE-WIDE....................................................       3,654,623       3,442,123        -212,500
ARMY NATIONAL GUARD.............................................         613,799         613,799  ..............
AIR NATIONAL GUARD..............................................          42,386          42,386  ..............
ARMY RESERVE....................................................         305,846         305,846  ..............
NAVY RESERVE....................................................          49,532          49,532  ..............
AIR FORCE RESERVE...............................................          10,979          10,979  ..............
NATO............................................................         254,163         254,163  ..............
CHEMICAL DEMILITARIZATION CONSTRUCTION, DEFENSE-WIDE............         151,000         151,000  ..............
DOD FAMILY HOUSING IMPROVEMENT FUND.............................           1,786           1,786  ..............
FAMILY HOUSING, ARMY............................................         534,692         534,692  ..............
FAMILY HOUSING, NAVY AND MARINE CORPS...........................         480,412         480,412  ..............
FAMILY HOUSING, AIR FORCE.......................................         581,653         581,653  ..............
FAMILY HOUSING, DEFENSE-WIDE....................................          52,238          52,238  ..............
BRAC............................................................         476,093         476,093  ..............
                                                                 -----------------------------------------------
      GRAND TOTAL...............................................      11,222,710      10,653,808        -568,902
----------------------------------------------------------------------------------------------------------------


  COMPARATIVE STATEMENT OF NEW BUDGET (OBLIGATIONAL) AUTHORITY FOR FISCAL YEAR 2012 AND BUDGET ESTIMATES AND AMOUNTS RECOMMENDED IN THE BILL FOR FISCAL
                                                                        YEAR 2013
                                                                [In thousands of dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                         Senate Committee recommendation
                                                                                                                             compared with (+ or -)
                                Item                                       2012       Budget estimate     Committee    ---------------------------------
                                                                      appropriation                     recommendation        2012
                                                                                                                         appropriation   Budget estimate
--------------------------------------------------------------------------------------------------------------------------------------------------------

                   TITLE I--DEPARTMENT OF DEFENSE

Military construction, Army........................................       3,006,491        1,923,323        1,684,323       -1,322,168         -239,000
Military construction, Navy and Marine Corps.......................       2,112,823        1,701,985        1,650,240         -462,583          -51,745
Military construction, Air Force...................................       1,227,058          388,200          322,543         -904,515          -65,657
Military construction, Defense-Wide................................       3,431,957        3,654,623        3,442,123          +10,166         -212,500
                                                                    ------------------------------------------------------------------------------------
      Total, Active components.....................................       9,778,329        7,668,131        7,099,229       -2,679,100         -568,902
                                                                    ====================================================================================
Military construction, Army National Guard.........................         773,592          613,799          613,799         -159,793   ...............
Military construction, Air National Guard..........................         116,246           42,386           42,386          -73,860   ...............
Military construction, Army Reserve................................         280,549          305,846          305,846          +25,297   ...............
Military construction, Navy Reserve................................          26,299           49,532           49,532          +23,233   ...............
Military construction, Air Force Reserve...........................          33,620           10,979           10,979          -22,641   ...............
                                                                    ------------------------------------------------------------------------------------
      Total, Reserve components....................................       1,230,306        1,022,542        1,022,542         -207,764   ...............
                                                                    ====================================================================================
      Total, Military construction.................................      11,008,635        8,690,673        8,121,771       -2,886,864         -568,902

North Atlantic Treaty Organization Security Investment Program.....         247,611          254,163          254,163           +6,552   ...............
Family housing construction, Army..................................         176,897            4,641            4,641         -172,256   ...............
Family housing operation and maintenance, Army.....................         493,458          530,051          530,051          +36,593   ...............
Family housing construction, Navy and Marine Corps.................         100,972          102,182          102,182           +1,210   ...............
Family housing operation and maintenance, Navy and Marine Corps....         367,863          378,230          378,230          +10,367   ...............
Family housing construction, Air Force.............................          60,042           83,824           83,824          +23,782   ...............
Family housing operation and maintenance, Air Force................         429,523          497,829          497,829          +68,306   ...............
Family housing operation and maintenance, Defense-Wide.............          50,723           52,238           52,238           +1,515   ...............
Department of Defense Family Housing Improvement Fund..............           2,184            1,786            1,786             -398   ...............
Homeowners assistance fund.........................................           1,284   ...............  ...............          -1,284   ...............
                                                                    ------------------------------------------------------------------------------------
      Total, Family housing........................................       1,682,946        1,650,781        1,650,781          -32,165   ...............
                                                                    ====================================================================================
Chemical demilitarization construction, Defense-Wide...............          75,312          151,000          151,000          +75,688   ...............

Base realignment and closure:
    Base realignment and closure account, 1990.....................         323,543          349,396          349,396          +25,853   ...............
    Base realignment and closure account, 2005.....................         258,776          126,697          126,697         -132,079   ...............
                                                                    ------------------------------------------------------------------------------------
      Total, Base realignment and closure..........................         582,319          476,093          476,093         -106,226   ...............

Rescissions (Sec. 131):
    Military Construction, Army....................................        -100,000   ...............  ...............        +100,000   ...............
    Military Construction, Navy and Marine Corps...................         -25,000   ...............  ...............         +25,000   ...............
    Military Construction, Air Force...............................         -32,000   ...............  ...............         +32,000   ...............
    Military Construction, Defense-Wide............................        -131,400   ...............  ...............        +131,400   ...............

Rescission (Sec. 132):
    Base Realignment and Closure, 2005.............................        -258,776   ...............  ...............        +258,776   ...............
                                                                    ------------------------------------------------------------------------------------
      Total, title I, Department of Defense........................      13,049,647       11,222,710       10,653,808       -2,395,839         -568,902
          Appropriations...........................................     (13,596,823)     (11,222,710)     (10,653,808)     (-2,943,015)       (-568,902)
          Rescissions..............................................       (-547,176)  ...............  ...............       (+547,176)  ...............
                                                                    ====================================================================================
              TITLE II--DEPARTMENT OF VETERANS AFFAIRS

                  Veterans Benefits Administration

Compensation and pensions..........................................      51,237,567       61,741,232       61,741,232      +10,503,665   ...............
Readjustment benefits..............................................      12,108,488       12,607,476       12,607,476         +498,988   ...............
Veterans insurance and indemnities.................................         100,252          104,600          104,600           +4,348   ...............

Veterans housing benefit program fund:.............................
    (indefinite)...................................................         318,612          184,859          184,859         -133,753   ...............
        (Limitation on direct loans)...............................            (500)            (500)            (500)  ...............  ...............
        Administrative expenses....................................         154,698          157,814          157,814           +3,116   ...............

Vocational rehabilitation loans program account....................              19               19               19   ...............  ...............
    (Limitation on direct loans)...................................          (3,019)          (2,729)          (2,729)           (-290)  ...............
    Administrative expenses........................................             343              346              346               +3   ...............
Native American veteran housing loan program account...............           1,116            1,089            1,089              -27   ...............
                                                                    ------------------------------------------------------------------------------------
      Total, Veterans Benefits Administration......................      63,921,095       74,797,435       74,797,435      +10,876,340   ...............

                   Veterans Health Administration

Medical services:
    Advance from prior year........................................     (39,649,985)     (41,354,000)     (41,354,000)     (+1,704,015)  ...............
    Current year request...........................................  ...............         165,000          155,000         +155,000          -10,000
    Advance appropriation, fiscal year 2014........................      41,354,000       43,557,000       43,557,000       +2,203,000   ...............
                                                                    ------------------------------------------------------------------------------------
      Subtotal.....................................................      41,354,000       43,722,000       43,712,000       +2,358,000          -10,000

Medical support and compliance:
    Advance from prior year........................................      (5,535,000)      (5,746,000)      (5,746,000)       (+211,000)  ...............
    Advance appropriation, fiscal year 2014........................       5,746,000        6,033,000        6,033,000         +287,000   ...............
                                                                    ------------------------------------------------------------------------------------
      Subtotal.....................................................       5,746,000        6,033,000        6,033,000         +287,000   ...............

Medical facilities:
    Advance from prior year........................................      (5,426,000)      (5,441,000)      (5,441,000)        (+15,000)  ...............
    Advance appropriation, fiscal year 2014........................       5,441,000        4,872,000        4,872,000         -569,000   ...............
                                                                    ------------------------------------------------------------------------------------
      Subtotal.....................................................       5,441,000        4,872,000        4,872,000         -569,000   ...............

Medical and prosthetic research....................................         581,000          582,674          582,674           +1,674   ...............

Medical care cost recovery collections:
    Offsetting collections.........................................      -3,326,000       -2,527,000       -2,527,000         +799,000   ...............
    Appropriations (indefinite)....................................       3,326,000        2,527,000        2,527,000         -799,000   ...............

DoD-VA Joint Medical Funds (transfers out).........................  ...............       (-280,000)       (-280,000)       (-280,000)  ...............
DoD-VA Joint Medical Funds (by transfer)...........................  ...............        (280,000)        (280,000)       (+280,000)  ...............
                                                                    ------------------------------------------------------------------------------------
      Total, Veterans Health Administration........................      53,122,000       55,209,674       55,199,674       +2,077,674          -10,000
          Appropriations...........................................        (581,000)        (747,674)        (737,674)       (+156,674)        (-10,000)
          Advance from prior year..................................     (50,610,985)     (52,541,000)     (52,541,000)     (+1,930,015)  ...............
          Advance appropriations, fiscal year 2014.................     (52,541,000)     (54,462,000)     (54,462,000)     (+1,921,000)  ...............

                  National Cemetery Administration

National Cemetery Administration...................................         250,934          258,284          258,284           +7,350   ...............

                    Departmental Administration

General administration.............................................         416,737          416,737          424,737           +8,000           +8,000
General operating expenses, VBA....................................       2,018,764        2,164,074        2,164,074         +145,310   ...............
Information technology systems.....................................       3,111,376        3,327,444        3,327,444         +216,068   ...............
Office of Inspector General........................................         112,391          113,000          115,000           +2,609           +2,000
Construction, major projects.......................................         589,604          532,470          532,470          -57,134   ...............
Construction, minor projects.......................................         482,386          607,530          607,530         +125,144   ...............
Grants for construction of State extended care facilities..........          85,000           85,000           85,000   ...............  ...............
Grants for the construction of veterans cemeteries.................          46,000           46,000           46,000   ...............  ...............
                                                                    ------------------------------------------------------------------------------------
      Total, Departmental Administration...........................       6,862,258        7,292,255        7,302,255         +439,997          +10,000

                         GENERAL PROVISIONS

Medical services (Sec. 227)........................................       1,400,000        1,400,000        1,500,000         +100,000         +100,000
    (Rescission)...................................................      -1,400,000       -1,400,000       -1,500,000         -100,000         -100,000
Medical support and compliance (Sec. 227)..........................         100,000          100,000          250,000         +150,000         +150,000
    (Rescission)...................................................        -100,000         -100,000         -250,000         -150,000         -150,000
Medical facilities (Sec. 227)......................................         250,000          250,000          250,000   ...............  ...............
    (Rescission)...................................................        -250,000         -250,000         -250,000   ...............  ...............
                                                                    ------------------------------------------------------------------------------------
      Total, General Provisions....................................  ...............  ...............  ...............  ...............  ...............
          Appropriations...........................................      (1,750,000)      (1,750,000)      (2,000,000)       (+250,000)       (+250,000)
          Rescissions..............................................     (-1,750,000)     (-1,750,000)     (-2,000,000)       (-250,000)       (-250,000)
                                                                    ------------------------------------------------------------------------------------
      Total, title II..............................................     124,156,287      137,557,648      137,557,648      +13,401,361   ...............
          Appropriations...........................................     (73,365,287)     (84,845,648)     (85,095,648)    (+11,730,361)       (+250,000)
          Rescissions..............................................     (-1,750,000)     (-1,750,000)     (-2,000,000)       (-250,000)       (-250,000)
          Advance from prior year..................................     (50,610,985)     (52,541,000)     (52,541,000)     (+1,930,015)  ...............
          Advance appropriations, fiscal year 2014.................     (52,541,000)     (54,462,000)     (54,462,000)     (+1,921,000)  ...............
          (Limitation on direct loans).............................          (3,519)          (3,229)          (3,229)           (-290)  ...............
                                                                    ====================================================================================
                    TITLE III--RELATED AGENCIES

                American Battle Monuments Commission

Salaries and expenses..............................................          61,100           58,400           58,400           -2,700   ...............
Foreign currency fluctuations account..............................          16,000           15,200           15,200             -800   ...............
                                                                    ------------------------------------------------------------------------------------
      Total, American Battle Monuments Commission..................          77,100           73,600           73,600           -3,500   ...............

             U.S. Court of Appeals for Veterans Claims

Salaries and expenses..............................................          30,770           32,481           32,481           +1,711   ...............

                    Department of Defense--Civil

                     Cemeterial Expenses, Army

Salaries and expenses..............................................          45,800           45,800           41,000           -4,800           -4,800
Consturction program...............................................  ...............  ...............         107,800         +107,800         +107,800
                                                                    ------------------------------------------------------------------------------------
      Total, Cemeterial Expenses, Army.............................          45,800           45,800          148,800         +103,000         +103,000

              Armed Forces Retirement Home--Trust Fund

Operation and maintenance..........................................          65,700           65,590           65,590             -110   ...............
Capital program....................................................           2,000            2,000            2,000   ...............  ...............

             Armed Forces Retirement Home--General Fund

Capital program....................................................          14,630   ...............  ...............         -14,630   ...............
                                                                    ------------------------------------------------------------------------------------
      Total, Armed Forces Retirement Home..........................          82,330           67,590           67,590          -14,740   ...............
                                                                    ------------------------------------------------------------------------------------
      Total, title III.............................................         236,000          219,471          322,471          +86,471         +103,000
                                                                    ====================================================================================
             TITLE IV--OVERSEAS CONTINGENCY OPERATIONS

Military Construction, Army........................................          80,000   ...............  ...............         -80,000   ...............
Military Construction, Navy and Marine Corps.......................         189,703   ...............  ...............        -189,703   ...............
Rescission from Title IV, Division E of Public Law 111-117.........        -269,703   ...............  ...............        +269,703   ...............
                                                                    ------------------------------------------------------------------------------------
      Total, title IV..............................................  ...............  ...............  ...............  ...............  ...............
                                                                    ====================================================================================
      Grand total..................................................     137,441,934      148,999,829      148,533,927      +11,091,993         -465,902
          Appropriations...........................................     (87,198,110)     (96,287,829)     (96,071,927)     (+8,873,817)       (-215,902)
          Rescissions..............................................     (-2,297,176)     (-1,750,000)     (-2,000,000)       (+297,176)       (-250,000)
          Advances from prior year.................................     (50,610,985)     (52,541,000)     (52,541,000)     (+1,930,015)  ...............
          Advance appropriations, fiscal year 2014.................     (52,541,000)     (54,462,000)     (54,462,000)     (+1,921,000)  ...............
          Overseas contingency operations..........................  ...............  ...............  ...............  ...............  ...............
          (By transfer)............................................  ...............        (280,000)        (280,000)       (+280,000)  ...............
          (Transfer out)...........................................  ...............       (-280,000)       (-280,000)       (-280,000)  ...............
          (Limitation on direct loans).............................          (3,519)          (3,229)          (3,229)           (-290)  ...............
--------------------------------------------------------------------------------------------------------------------------------------------------------