House Appropriations Committee Issues Report on Military Construction, VA, Related Agencies Appropriations Bill 2019 (Part 1 of 5)

WASHINGTON, May 18 -- The House Appropriations Committee issued a report (H.Rpt. 115-673) on legislation (H.R. 5786) in explanation of the accompanying bill making appropriations for military construction, the Department of Veterans Affairs and related agencies for the fiscal ending Sept. 30, 2019. The report was advanced by Rep. Charles W. Dent, R-Pennsylvania, on May 11.

Purpose of the Bill

The purpose of the bill is to support our military and their families and provide the benefits and medical care that our veterans have earned because of their service to our Nation. This is accomplished through the programs funded in the bill, which provide the facilities and infrastructure needed to house, treat, train, and equip our military personnel to defend this Nation, both in the United States and abroad; provide the housing and military community infrastructure that supports a good quality of life for them and their families; and allow the military to maintain an efficient and effective base structure. The bill also funds a wide variety of assistance programs for veterans--disability and pension benefits, health care in many different settings, educational assistance, and home loan and insurance programs. Finally, the bill funds four related agencies that provide support to our Nation's heroes: the American Battle Monuments Commission, Cemeterial Expenses, Army (including Arlington National Cemetery), the United States Court of Appeals for Veterans Claims, and the Armed Forces Retirement Home.

Summary of Committee Recommendation

The Committee recommends $206,040,134,000 in budget authority for the fiscal year 2019 programs and activities funded in the bill. The fiscal year 2019 recommendation is an increase of $9,350,699,000 above the fiscal year 2018 enacted level and $130,617,000 below the President's request. Of the increase over the fiscal year 2018 enacted level, $5,171,624,000 is in mandatory programs. Included in the total budget authority is $109,120,059,000 in mandatory budget authority and $96,920,075,000 in discretionary budget authority.

The Committee recommendation highlights the continued commitment to our servicemembers and their families and to our veterans. In discretionary budget authority, the bill is 4.5 percent over the fiscal year 2018 enacted level. The bill includes an increase in military construction, which is 3.8 percent above the fiscal year 2018 level, and an increase in the Department of Veterans Affairs budget, which is 4.8 percent over the fiscal year 2018 level. While the Committee recommendation continues essential support for servicemembers and veterans, it does not provide funds for projects or activities that lacked sufficient justification or were less mission-critical. Where it was prudent, the Committee recommendation rescinds prior year funding that is no longer needed for the purpose for which it was originally appropriated while leaving sufficient resources to close out contracts. Finally, the recommendation rescinds unobligated balances in certain military construction accounts.

The programs funded in the bill for the Department of Defense address the priorities of the Department's Agencies and the Services for numerous facility challenges that they face. The funds provided support readiness improvements with new construction, family housing, continued cleanup of military bases closed during previous Base Realignment and Closure rounds, support Combatant Commanders requirements where appropriate, and ensure that our military personnel and their families' quality of life is preserved.

The total recommended funding level for military construction and family housing, including base and Overseas Contingency Operations funding, including the European Reassurance Initiative, is $11,253,420,000, which is $412,420,000 above the fiscal year 2018 enacted level and $130,617,000 below the budget request. The recommendation includes funding for Family Housing, funding for necessary construction on our bases, including barracks, health facilities and schools, and support for critical overseas investments. The recommendation also includes $837,000,000 for the Services' unfunded priorities. In addition, the recommendation also includes $921,420,000 for European Deterrence Initiative to help ensure the protection of our allies.

The total funding level for fiscal year 2019 for the Department of Veterans Affairs is $194,469,059,000, an increase of $9,045,324,000 over the fiscal year 2018 enacted level. Of the total, $109,120,059,000 is provided for mandatory benefit programs and $85,349,000,000 is allocated to discretionary programs such as medical care, claims processing, and construction. In this bill, discretionary funding for the Department of Veterans Affairs is recommended at 4.8 percent over the fiscal year 2018 enacted level. For fiscal year 2019, $70,699,313,000 for medical care has been appropriated in advance. The recommendation includes $2,922,000,000, an increase of $53,091,000 over the President's budget request for the administrative costs of Veterans Benefits Administration, including funding for scanning claims and staff overtime. The bill also provides $174,748,000 for the Board of Veterans Appeals, a $13,700,000 increase over fiscal year 2018, to target the growing caseload of appeals of initial benefits decisions. In addition, the Committee recommendation includes $75,550,600,000 in advance appropriations for fiscal year 2020 for the four health care accounts of the Department and $121,296,429,000 in advance appropriations for mandatory benefits programs for fiscal year 2020.

Management and Oversight Initiatives

The Committee believes the effective stewardship of taxpayer dollars is of the highest priority. In the interest of eliminating waste, fraud, and abuse in Federal programs, the Committee has and will continue to use public hearings, briefings, information requests, and reviews by the Government Accountability Office and the Inspectors General to promote strong financial and program management, oversight and leadership at the Department of Defense, the Department of Veterans Affairs, and other agencies under the jurisdiction of this bill.

The fiscal year 2019 appropriations Act and the accompanying report address management challenges of the Federal agencies it funds, including directives to strengthen financial and program management, eliminate redundancy, and improve implementation and oversight of initiatives that support the mission of this bill. The Committee will use every means at its disposal to reduce mismanagement that results in waste, fraud, and abuse.

Department of Defense (DOD).--In addition to the notification and reporting requirements for military construction programs contained in Title 10, United States Code, the Committee's recommendations include several provisions requiring the Department of Defense to report on various aspects of military construction programs, or to provide notification to the Committee when certain actions are taken. The Committee also retains prior approval authority for any reprogramming of funds exceeding a specific threshold.

Department of Veterans Affairs (VA).--With the $194,469,059,000 provided for VA in this bill and the increase in the number of veterans seeking VA medical services, the Committee believes it is important to strengthen its tools to monitor spending as well as the operating procedures of the VA workforce. The following initiatives demonstrate the Committee's oversight focus:

VA electronic health record.--After at least a decade of Congressional encouragement to DOD and VA to develop a single electronic health record (EHR), VA has completed a contract to acquire the same EHR that DOD is adopting. The bill includes $1,207,000,000 for the EHR contract in 2019, but also includes requirements for strict quarterly reporting of timelines, performance milestones, costs, implementation, and change management. The bill also requires the Government Accountability Office to conduct an ongoing review so that Congress can be informed of any problems at a point where they can be promptly and economically addressed.

Disability claims and appeals.--Thanks to the significant investments Congress has provided over the past seven years, VA has been able to hire the staff, acquire the technology, and change work processes necessary to reduce the disability claims backlog to an "effective" zero. But as the number of claims continues to increase and the number of appeals skyrockets once claims are decided, VA again runs the risk of falling into serious claims and appeals backlogs. The Committee recognizes this threat and provides $53,091,000 above the Veterans Benefits Administration request to support staff overtime and digital claims scanning. The Committee hopes that with this additional investment and the recently passed legislation to reform the appeals process, Congress will have taken the necessary management action to prevent veterans from enduring excessive waits to claim the disability benefits they deserve.

Information technology (IT).--The Committee continues to include bill language prohibiting obligation or expenditure of funds for information technology systems development until VA submits to the Committees a certification of the amounts. The bill limits the amount of funds that can be transferred into the IT account to 10 percent of the total of either the source or destination account. The bill contains language which permits the reprogramming of funds among development projects upon prior notification to, and approval by, the Committees.

Financial management system.--The Committee provides $83,621,000 for the replacement of VA's antiquated financial management system. However, the Committee has concerns that VA may have problems managing the conversion without the planned management by the Department of Agriculture, which developed the system but has subsequently withdrawn its participation. Consequently, the Committee requires quarterly reporting by VA comparing actual performance in implementing the system to the metrics and timelines established in the initial operating plan required by the fiscal year 2018 appropriations bill. The Committee also requires its investigative staff to monitor periodically the system's development and report to the Committee.

Stricter control of construction funding.--In response to the egregious management of the Denver hospital construction project, permanent law blocks funding for major construction projects over $100,000,000 in cost until VA certifies that it has contracted with a non-VA governmental entity to design and manage the project. The Committee receives quarterly briefings on the progress and cost of each facility managed by an outside entity. Several additional bill language provisions are included to enhance the Committee's capacity to conduct oversight on VA's facility construction efforts including: (1) no funding greater than $7,000,000 may be reprogrammed between construction projects unless approved by the Committees on Appropriations of both Houses of Congress; (2) any change to the scope of a construction project is prohibited without the approval of the Committees; and (3) VA must report any bid savings of $5,000,000 or more on projects as soon as they are identified.

High performance and sustainable building requirements.-- The Committee recognizes that innovative technologies, including advanced wood products and recycled aerospace grade carbon fiber composite, have expanded the availability of materials with lower embodied energy for facilities that require exceptional durability and blast resistance. In addition, design techniques such as advanced framing contribute to lower material costs, increased energy efficiency, and reduced waste in facilities. Therefore, the Committee directs the Secretary of Defense to continue to utilize innovative renewable building materials, systems, and design techniques that support the requirements of UFC 1 200 02 and UFGS 06 17 19. Furthermore, the Committee directs the Secretary of Defense to work with universities, public agencies, and experienced non-profit organizations to develop a plan to expand the application of these innovative technologies in future military construction projects and report to the Committee no later than 90 days after enactment of this Act on how the Department will implement the plan.

TITLE I

DEPARTMENT OF DEFENSE

Military Construction Overview

Fiscal year 2018 enacted level (including rescissions) $10,091,000,000

Fiscal year 2019 budget request....................... 10,462,617,000

Committee recommendation in the bill (including rescissions)......................................... 10,332,000,000

Comparison with:

Fiscal year 2018 enacted level.................... 241,000,000

Fiscal year 2018 budget request................... (130,617,000)

Military construction accounts provide funds for new construction, construction improvements, planning and design, and host nation support. Projects funded by these accounts include facilities for operations, training, maintenance, research and development, supply, medical care, and force protection, as well as unaccompanied housing, utilities infrastructure, and land acquisition.

Reprogramming guidelines.--The following reprogramming guidelines apply for all military construction and family housing projects. A project or account (including the sub- elements of an account) which has been specifically reduced by the Congress in acting on the budget request is considered to be a Congressional interest item and as such, prior approval is required. Accordingly, no reprogramming to an item specifically reduced below the threshold by the Congress is permitted, except that the Department of Defense may seek reprogramming for appropriated increments.

The reprogramming criteria that apply to military construction projects (25 percent of the funded amount or $2,000,000, whichever is less) continue to apply to new housing construction projects and to improvements over $2,000,000. To provide the services the flexibility to proceed with construction contracts without disruption or delay, the costs associated with environmental hazard remediation such as asbestos removal, radon abatement, lead-based paint removal or abatement, and any other legislated environmental hazard remediation may be excluded, if such remediation requirements could not be reasonably anticipated at the time of the budget submission. This exclusion applies to projects authorized in this budget year, as well as projects authorized in prior years for which construction has not been completed. Planning and design costs associated with military construction and family housing projects may also be excluded from these guidelines. In instances where prior approval for a reprogramming request for a project or account has been received from the Committees on Appropriations of both Houses of Congress, the adjusted amount approved becomes the new base for any future increase or decrease via below-threshold reprogramming (provided that the project or account is not a Congressional interest item as defined above).

In addition to these guidelines, the services are directed to adhere to the guidance for military construction reprogramming actions and notifications, including the pertinent statutory authorities contained in Department of Defense Financial Management Regulation 7000.14-R and relevant updates and policy memoranda. The Committee further encourages the Office of the Director of National Intelligence to use a format similar to that used by the Office of the Secretary of Defense to submit reprogramming requests.

Facilities Sustainment, Restoration and Modernization (FSRM).--The Department of Defense is directed to continue describing on form 1390 the backlog of FSRM requirements at installations with future construction projects. For troop housing requests, form 1391 should describe any FSRM conducted in the past two years. Likewise, future requirements for unaccompanied housing at the corresponding installation should be included. Additionally, the forms should include English equivalent measurements for projects presented in metric measurement. Rules for funding repairs of facilities under the Operation and Maintenance accounts are described below:

(1) components of the facility may be repaired by replacement. Such replacement can be up to current standards or codes;

(2) interior arrangements and restorations may be included as repair;

(3) additions, new facilities, and functional conversions must be performed as military construction projects. Such projects may be done concurrently with repair projects as long as the final conjunctively funded project is a complete and usable facility; and

(4) the appropriate service secretary shall notify the appropriate committees 21 days prior to carrying out any repair project with an estimated cost in excess of $7,500,000. The Committee strongly encourages the services and defense agencies to indicate the plant replacement value of the facility to be repaired on each such notification.

Quarterly summary of notifications.--The Committee directs the services and the Office of the Secretary of Defense (on behalf of itself and defense agencies) to continue to submit a quarterly report listing all notifications that have been submitted to the Committees during the preceding three-month period.

Work in Progress or Planned (WIP) curve.--The Committee directs the services and the Office of the Secretary of Defense (on behalf of itself and defense agencies) to submit a WIP curve for each project requested in a budget submission over $100,000,000 with the 1391 justification to the congressional defense committees.

Transfer of funds to and from the Foreign Currency Fluctuations, Construction, Defense Account.--The Committee directs the Department of Defense to submit a quarterly report to the Committees on Appropriations of both Houses of Congress on the transfer of funds from military construction and family housing accounts to the Foreign Currency Fluctuations, Construction, Defense account. The report shall specify the amount transferred to the Foreign Currency account from each military construction and/or family housing account, and all other accounts for which an appropriation is provided in this Act, during the preceding fiscal quarter, and the amounts transferred from the Foreign Currency account to the above accounts during the same period. This report shall be submitted no later than 30 days after the close of each fiscal quarter. In addition, the Department of Defense shall notify the Committees on Appropriations of both Houses of Congress within 7 days of transferring any amount in excess of $10,000,000 to or from the Foreign Currency account.

Bid savings.--The Committee has ascertained from cost variation notices required by 10 U.S.C. 2853 that the Department of Defense continues to have bid savings, although declining, on previously appropriated military construction projects. The Committee's recommendation therefore includes rescissions to the Air Force, NATO Security Investment Program and HAP accounts. The Committee directs the Secretary of Defense to continue to submit 1002 reports on military construction bid savings at the end of each fiscal quarter to the Subcommittee on Military Construction, Veterans Affairs, and Related Agencies of both Houses of Congress.

Incremental funding of projects.--In general, the Committee supports full funding for military construction projects if they are executable. However, it continues to be the practice of the Committee to provide incremental funding for certain large projects to enable the services to more efficiently allocate military construction dollars among projects that can be executed in the year of appropriation. Therefore, the Committee recommendation includes 12 projects that have been incrementally funded; however the full authorization of the projects will be provided in the fiscal year 2019 National Defense Authorization Act.

Federally Recognized Tribes.--The Committee notes our nation's commitment to honoring treaty and trust obligations to Federally Recognized Tribes. While military operations and facility protection are important, upholding our commitments to Indian Country must be an equal priority. It has been observed that the Department of Defense has struggled to proactively engage with affected Tribes at the start of the planning process to ensure meaningful consultation can occur. Moreover, the Department does not identify sufficient funds to cover mitigation and/or alternatives should they be agreed upon. To understand the scale of this problem, the Committee directs the Secretary of Defense to provide the Committee with a list of military construction projects where mitigation and/or changes to projects within the past five years where consultation with a Federally Recognized Tribe was required, the outcome of each consultation, a list of all project modifications and/or mitigation requests made by the Tribe (or Tribes) in question for each project, the cost of each measure, and which modifications and or mitigations were adopted.

Impacts of weather and security for Military Installations.--The Department of Defense must pay close attention to potential adverse impacts of the weather as a driver of instability. From sea level rise to increased drought and flooding across the country and the world, proper defense planning must include considerations related to weather impacts. The Committee urges the Secretary of Defense to plan infrastructure and other projects using the best available data and to mitigate risks to our armed forces serving domestically and abroad.

Joint Military Bases.--The Committee is concerned that Joint Bases lack a full complement of training facilities such as aquatic facilities for complete education. This often results in burdening local communities to attempt to accommodate training at insufficient facilities. The Department is encouraged to prioritize construction of training facilities that will diminish impacts on surrounding communities and increase readiness.

Defense Access Roads.--The Committee is concerned about the lack of future planning for Defense Access Roads (DAR) and transportation infrastructure needs as continued flooding of vital access roads occurs more frequently. The Committee directs the Secretary of Defense to work with the Secretary of Transportation to prioritize DAR roads and projects specifically examining bases in communities that have experienced flooding by both non-storm surge flooding and flooding due to storm surge and report to the Committee no later than 30 days after enactment of this Act on its findings. Further, the Committee is concerned about the increasingly harmful impact of flooding on facilities at DOD's coastal military installations and on the roads and infrastructure to access these installations. In January 2018, the Office of the Assistant Secretary of Defense for Energy, Installations and Environment, initiated a preliminary Screening Level Vulnerability Assessment Survey of DOD installations worldwide. With this report and other similar reports by GAO, the Committee directs the Secretary of Defense to incorporate efforts from the reports to mitigate the effects of flooding on roads and infrastructure on domestic installations that are vital to military operations.

Enhancing force protection and security on military installations.--The Committee, in collaboration with the House Armed Services Committee, includes section 130 that provides $50,000,000 to each of the military construction accounts for Army, Navy and Marine Corps and the Air Force to alleviate deficiencies in access control points, air traffic control towers, fire stations, and AT/FP deficiencies across the enterprise. There has been much concern on both sides of the aisle that these types of military construction projects continually fall short of securing funding in a fiscal year due to higher priorities within the Services. Each Service Secretary is directed to provide a spend plan for these additional funds no later than 30 days after enactment of this Act to the congressional defense committees.

Military Construction, Army

Fiscal year 2018 enacted level........................ $923,994,000

Fiscal year 2019 budget request....................... 1,011,768,000

Committee recommendation in the bill.................. 1,001,768,000

Comparison with:

Fiscal year 2018 enacted level.................... 77,774,000

Fiscal year 2019 budget request................... (10,000,000)

The recommendation includes additional funding for the Army in section 125 under Administrative Provisions for projects on the Services Unfunded Priority lists as provided by the Office of the Secretary of Defense and submitted to Congress in priority order.

Aircraft maintenance hangars.--The Committee is concerned that many of our aircraft maintenance hangar facilities are unsafe, antiquated, and do not provide adequate space for storage and maintenance of our aircraft. For example, the current Combat Aviation Brigade, at Hunter Army Airfield, utilizes hangars that are outdated and require millions of dollars in funding for maintenance yearly. Therefore, the Secretary of the Army is directed to conduct a cost analysis on a review of Aircraft Hangars throughout the Army enterprise and a plan to update these facilities. This analysis shall be submitted to the congressional defense committees no later than 60 days after enactment of this Act.

Rapid deployment requirements.--The Committee is concerned that the Army is not adequately prioritizing logistics infrastructure on bases with rapid deployment requirements. Therefore, the Secretary of the Army is directed to report to the congressional defense committees no later than 60 days after enactment of this Act on the backlog of infrastructure and the plan to eliminate the backlog by fiscal year.

Army Futures Command.--The Committee is aware that the Army is in the process of standing up a new Army Futures Command which is the most significant Army reorganization effort since 1973. This will be the fourth Army Command, and its mission is to drive the Army into the future to achieve clear overmatch in future conflicts. The Army has identified 15 locations where Army Futures Command could be located. The Committee is concerned that the Army is failing to consider existing locations that could be suitable for this new Command. The Committee directs the Secretary of the Army to provide a report on how the 15 locations were selected and identify current Army locations where Futures Command could be established no later than 30 days after enactment of this Act.

Access Control Points.--Since September 11, 2001, the Department has made significant safety improvements at base entry points across many installations, but more needs to be done. The Committee is concerned that many of the Army's access control points do not provide adequate controls for traffic flow on and off the installation. For example, the current access control points at Picatinny Arsenal need modernization to maintain its security and to enhance commercial and personnel traffic movement. The Committee is aware that the Office of the Secretary of Defense is conducting a risk assessment of certain access control points and developing a plan to update these facilities, including a cost estimate for each facility. The Committee looks forward to reviewing the report and the plan in coming weeks.

Military Construction, Navy and Marine Corps

Fiscal year 2018 enacted level........................ $1,553,275,000

Fiscal year 2019 budget request....................... 2,543,189,000

Committee recommendation in the bill.................. 2,100,298,000

Comparison with:

Fiscal year 2018 enacted level.................... 547,023,000

Fiscal year 2019 budget request................... (442,891,000)

The recommendation includes additional funding for the Navy and Marine Corps in section 125 under Administrative Provisions for projects on the Services Unfunded Priority lists as provided by the Office of Secretary of Defense and submitted to Congress in priority order.

Public Law 115-141 provided funding for the TBS Fire Station at Quantico, Virginia therefore, the recommendation does not include funding for the project in fiscal year 2019 recommendation.

F-35 beddown.--The Committee is concerned that there is little coordination among the Navy and Marine Corps for the construction of aircraft and support facilities associated with the beddown of F-35s. The Committee believes that it would not be prudent to have 5th generation air assets like the F-35 housed in inappropriate hangars that fail to protect the aircraft from the elements. Therefore, the Committee directs the Navy and Marine Corps to provide a detailed timeline by fiscal year and cost of F-35 facilities to the congressional defense committees no later than 60 days after enactment of this Act.

Shipyard Infrastructure.--The Committee recognizes the strategic and critical role our public shipyards play in the national security of our nation. However, our shipyards are in direct need of maintenance and upgrade. The Fiscal Year 2018 National Defense Authorization Act included language directing the Department of Defense to create a Shipyard Infrastructure Optimization Plan. This plan, included recommendations and future year projects that would help to restore our public shipyards in order to help support our fleet around the world. The Committee directs that the Secretary of Defense expedite or accelerate the funding of projects listed in the Future Years Defense Plan and Shipyard Infrastructure Optimization Plan necessary for national security requirements.

Military Construction, Air Force

Fiscal year 2018 enacted level........................ $1,543,558,000

Fiscal year 2019 budget request....................... 1,725,707,000

Committee recommendation in the bill.................. 1,454,723,000

Comparison with:

Fiscal year 2018 enacted level.................... (88,835,000)

Fiscal year 2019 budget request................... (270,984,000)

The recommendation includes additional funding for the Air Force in section 125 under Administrative Provisions for projects on the Services Unfunded Priority lists as provided by the Office of the Secretary of Defense and submitted to Congress in priority order.

The recommendation includes a rescission of $31,158,000 from unobligated balances in section 126 under Administrative Provisions.

Public Law 115-141 provided additional funding for increment I of the Presidential Aircraft Recap Complex. Therefore, the recommendation does not fully fund the Presidential Aircraft Recap Complex, Increment II as requested.

Air traffic control towers.--The Committee is concerned that the Department of the Air Force's Air Traffic Control Towers have been neglected over the years and funding for military construction has been deferred to the out years of budget submissions. Many of the air towers are deteriorating and antiquated, creating significant life, safety, and health concerns. In some cases, towers have developed extensive mold issues and contain health risks related to the use of asbestos and lead-based paint. Additionally, obstructed views in some cases prevent 100 percent positive visual control of aircraft landing and taxiing on the airfield. The Committee urges the Department of the Air Force to prioritize funding for these towers in a much timelier manner. The Committee believes that these towers are valuable national security assets that the Department of the Air Force should maintain in a manner that will ensure their vital role in protecting U.S. national security interests.

MIT/Lincoln Labs.--As previously stated, at times, the Committee incrementally funds projects. The Committee has incrementally funded the Air Force MIT/Lincoln Lab project commensurate with the outlay rate of funds reflected in budget documents. While the Committee does not provide full funding for this project, it strongly supports its completion and fully expects the Air Force to continue to prioritize funding for this project in executable increments.

Military Construction, Defense-Wide

(INCLUDING TRANSFER OF FUNDS)

Fiscal year 2018 enacted level........................ $2,811,513,000

Fiscal year 2019 budget request....................... 2,693,324,000

Committee recommendation in the bill.................. 2,465,738,000

Comparison with:

Fiscal year 2018 enacted level.................... (345,775,000)

Fiscal year 2019 budget request................... (227,586,000)

Transfer of funds.--The accompanying bill provides transfer authority to the Secretary of Defense to allow the transfer of funds to such appropriations of the Department of Defense available for military construction or family housing as the Secretary may designate.

The recommendation includes a reduction of $10,000,000 from contingency construction account.

The recommendation does not include $10,000,000 for the Ambulatory Care Center Addition/Alteration at RAF Croughton due to the construction pause on other projects at the installation by the Secretary of Defense and the EUCOM Commander.

Inadequate roads infrastructure.--The Committee is concerned that inadequate local, state, and federal roads and insufficient parking accommodations and structures are unable to accommodate the volume of cars and are causing delays for civilians and service members working at critical national security mission locations, such as the National Security Agency and United States Cyber Command. The Department of Defense is therefore directed to submit to the Committee a report detailing the locations in which traffic congestion and insufficient parking facilities potentially impact the performance of national security missions, and their detailed plans to mitigate these detrimental impacts no later than 60 days after enactment of this Act.

Information Technology Infrastructure for Military Construction Projects.--The Committee recognizes that information technology is an essential component in constructing modern facilities for military missions as well as planning for future requirements. Technology advancements can lead to increased productivity as well as efficiencies on energy and space, which impact military construction and modernization projects. It is essential that military planning keep up with advancements in technology in order to take advantage of these efficiencies and benefits. The mission-sets behind numerous military construction projects include requirements for access to multiple classified networks. The Committee is aware of technology that can streamline historically compartmented classified networks through cross domain solutions. Not only does this drastically impact future productivity for the workforce but it could also yield substantial savings and efficiencies on space, energy, and HVAC requirements. In an effort to ensure these technology advancements are incorporated at the early stages of planning for military construction, the Secretary of Defense shall report to the Committee no later than 60 days after enactment of this Act on how each department is staying apprised of technology advancements, working with industry partners on ways to gain efficiencies and savings on military construction projects, and how they plan to utilize cross domain solutions early in the planning stages for construction projects.

National Maritime Intelligence Center.--The National Maritime Intelligence Center (NMIC) is located on the Suitland Federal Center in Suitland, Maryland. The NMIC is an Intelligence Facility designed and built with NFIP funds completed in 1993. The Office of Naval Intelligence (ONI) is the host command of the NMIC. The NMIC facility is required to provide safe and adequate parking for all tenet commands, which include 3,700 employees. Since 2008, parking at the NMIC has been inadequate due to significant facility expansion for 700 new FTEs and the discovery of structural and safety deficiencies of the NMIC garage. NAVFAC engineers have assessed that useful life of the garage will expire in 2021-2023. Therefore, the Secretary of Defense is directed to provide a way forward to correct these deficiencies no later than 60 days after enactment of this Act.

Rhine Ordnance Barracks Medical Center Replacement.--In Public Law 115-141 the Committee directed the Director of the Defense Health Agency to report to the congressional defense committees: (1) specific changes in German energy law that affected the energy study; (2) what U.S. sources of energy the new German energy laws incorporate; (3) what U.S. sources are no longer able to be used in Germany; (4) what effect the changes in law have on other military construction projects, construction costs and current utilities contracts in the region; and (5) what effect this delay may have on other aspects of the Rhine Ordnance Barracks Medical Center Replacement Project. In addition to this requirement, the Committee directs the Director of the Defense Health Agency to provide to the congressional defense committees no later than 60 days after enactment of this Act: (1) an updated 1391 to include a WIP curve; (2) the total amount of funding for the utility plant that is within the military construction program; and (3) a list of other of appropriations, if any, that are being used for utility costs.

Installation resourcing.--The Committee is concerned that some DOD installations' access control points and roads do not provide adequate means on and off the installation. For example, the current access control points and roads at Fort Meade, Maryland need significant improvements to mitigate traffic congestion and accommodate the installation's growing population. Unfortunately, current installation management criteria only recognize Fort Meade as an Army installation, and limit its resourcing to an inappropriate, Army-only level. This Army-only funding level has continued despite an expanding joint-DOD and Federal tenant population that includes the National Security Agency, U.S. Cyber Command, DOD Consolidated Adjudications Facility, Defense Information Systems Agency, National Background Investigations Bureau, Environmental Research Laboratories, Architect of the Capitol, and the Defense Security Service. In fact, only 22 percent of the Fort Meade-installation's supported population is constituted by Army-affiliated personnel. With a growing population currently in excess of 55,000 personnel, Fort Meade, Maryland is now the Army's second largest installation. However, despite this large population, Fort Meade is only resourced at a level consistent with an installation supporting 12,000 Army personnel. Therefore, the Secretary of Defense is directed to submit a plan to the congressional defense committees no later than 180 days after enactment of this Act on the plan to resource installations hampered by inappropriate, service-only funding, at an installation support-level consistent with the missions performed.

DOD Installation Energy Policy.--DOD must ramp up its efforts to enhance energy security on its installations through a range of actions, including investing in renewable energy and smart technology that can shield mission-critical operations from disruptions to the power grid. According to a January 2017 report commissioned by the Pew Charitable Trusts (Power Begins at Home: Assured Energy for U.S. Military Bases), DOD could enhance energy security on installations and save hundreds of millions of dollars annually by investing in microgrids and renewable energy systems, and by increasing energy efficiency on military bases. The report found that microgrid power systems are more reliable than the stand-alone diesel generators typically used for backup power and could save $8,000,000 to $20,000,000 over a 20 year period. The report also found that DOD could save as much as $1,000,000,000 a year simply by increasing the use of commercially available energy efficiency measures in its facilities. The Committee notes that military installations in Hawaii are among those at the forefront of DOD's efforts to increase energy efficiency and security, including projects to develop net-zero energy military housing and installation facilities, upgrade and retrofit systems to improve energy and water efficiency, and demonstrate microgrid technology. The Committee supports DOD's investments in energy efficiency, renewable energy systems, and energy security, including projects through the Energy Resilience and Conservation Investment Program [ERCIP]. The Committee encourages the Department to prioritize funding for energy-related projects, including renewable energy projects, to mitigate risk to mission-critical assets and promote energy security and efficiency at military installations.

Guard and Reserve Item of Interest

Fiscal Year 2018 National Guard Reporting Requirement.-- Since fiscal year 2012 the Committee has noted the need to bolster National Guard resources and explore public-private partnerships with state and local governments. Due to the late passage of the fiscal year 2018 bill, the reporting requirement regarding this issue remains outstanding. Therefore, the Committee reiterates its interest in this report and looks forward to its submission.

Military Construction, Army National Guard

Fiscal year 2018 enacted level........................ $220,652,000

Fiscal year 2019 budget request....................... 180,122,000

Committee recommendation in the bill.................. 180,122,000

Comparison with:

Fiscal year 2018 enacted level.................... (40,530,000)

Fiscal year 2019 budget request................... - - -

The recommendation includes additional funding for the Army National Guard in section 125 under Administrative Provisions for projects on the Services Unfunded Priority lists as provided by the Office of the Secretary of Defense and submitted to Congress in priority order.

Army National Guard Readiness Centers Investment.--The Committee remains concerned by the failure of the Army to prioritize investment in Army National Guard Readiness Centers. These facilities are critical infrastructure in the protection of the homeland and in the responding to domestic emergencies. Their deteriorating conditions are detrimental to the readiness of the Army Guard and present significant safety concerns. The Committee encourages the Army to accelerate investments in Readiness Centers within the fiscal year 2020 future years defense program to include the $1,200,000,000 for the Army National Guard transformation Plan.

Military Construction, Air National Guard

Fiscal year 2018 enacted level........................ $171,491,000

Fiscal year 2019 budget request....................... 129,126,000

Committee recommendation in the bill.................. 129,126,000

Comparison with:

Fiscal year 2018 enacted level.................... (42,365,000)

Fiscal year 2019 budget request................... - - -

The recommendation includes additional funding for the Air National Guard in section 125 under Administrative Provisions for projects on the Services Unfunded Priority lists as provided by the Office of the Secretary of Defense and submitted to Congress in priority order.

Military Construction, Army Reserve

Fiscal year 2018 enacted level........................ $83,712,000

Fiscal year 2019 budget request....................... 64,919,000

Committee recommendation in the bill.................. 64,919,000

Comparison with:

Fiscal year 2018 enacted level.................... (18,793,000)

Fiscal year 2019 budget request................... - - -

The recommendation includes additional funding for the Army Reserve in section 125 under Administrative Provisions for projects on the Services Unfunded Priority lists as provided by the Office of the Secretary of Defense and submitted to Congress in priority order.

Military Construction, Navy Reserve

Fiscal year 2018 enacted level........................ $95,271,000

Fiscal year 2019 budget request....................... 43,065,000

Committee recommendation in the bill.................. 43,065,000

Comparison with:

Fiscal year 2018 enacted level.................... (52,206,000)

Fiscal year 2019 budget request................... - - -

Military Construction, Air Force Reserve

Fiscal year 2018 enacted level........................ $73,535,000

Fiscal year 2019 budget request....................... 50,163,000

Committee recommendation in the bill.................. 50,163,000

Comparison with:

Fiscal year 2018 enacted level.................... (23,372,000)

Fiscal year 2019 budget request................... - - -

The Committee recommendation includes additional funding for the Air Force Reserve in section 125 under Administrative Provisions for projects on the Services Unfunded Priority lists as provided by the Office of the Secretary of Defense and submitted to Congress in priority order.

Air Force Reserve Hangars.--The Committee is concerned that many of the Air Force Reserve Hangars that have been damaged during the record breaking 2017 hurricane season are unsafe, antiquated, and do not provide adequate protection of Air Force Reserve air assets. For example, hangers located at Homestead Air Reserve Base have become wholly inadequate due to constrained military construction budgets and devastating storm damage and are putting equipment and air assets at risk. The Committee is concerned that this could be a problem throughout the Air Force Reserve enterprise with the recent reductions to the Department of Defense's Construction accounts. Therefore, the Secretary of the Air Force is directed to conduct a risk assessment on Air Force Reserve Hangars damaged by natural events throughout the Air Force Reserve enterprise and develop a plan to update these facilities in the fiscal years 2020-2024 future years defense plan. This assessment shall be submitted to the congressional defense committees no later than 30 days after this report is filed.

North Atlantic Treaty Organization Security Investment Program

Fiscal year 2018 enacted level........................ $177,932,000

Fiscal year 2019 budget request....................... 171,064,000

Committee recommendation in the bill.................. 171,064,000

Comparison with:

Fiscal year 2018 enacted level.................... (6,868,000)

Fiscal year 2019 budget request................... - - -

The recommendation includes a rescission of $25,000,000 from unobligated balances under Administrative Provisions.

The North Atlantic Treaty Organization Security Investment Program (NSIP) consists of annual contributions by NATO member countries. The program finances the costs of construction needed to support the roles of the major NATO commands. The investments cover facilities such as airfields, fuel pipelines and storage, harbors, communications and information systems, radar and navigational aids, and military headquarters, both within NATO nations and for "out of area" operations such as Afghanistan.

The U.S. occasionally has been forced to temporarily delay the authorization of projects due to shortfalls in U.S. obligation authority. The Committee directs the Secretary of Defense to notify the Committee within 14 days of the U.S. taking action to temporarily delay the authorization of projects, or to temporarily withhold funds from previously authorized projects, due to shortfalls in U.S. obligation authority.

Family Housing Overview

Fiscal year 2018 enacted level........................ $1,409,437,000

Fiscal year 2019 budget request....................... 1,582,632,000

Committee recommendation in the bill.................. 1,582,632,000

Comparison with:

Fiscal year 2018 enacted level.................... 173,195,000

Fiscal year 2019 budget request................... - - -

Family housing construction accounts provide funds for new construction, construction improvements, the Federal government costs for family housing privatization projects, and planning and design. The operation and maintenance accounts provide funds to pay for maintenance and repair, furnishings, management, services, utilities, leasing, interest, mortgage insurance, and miscellaneous expenses.

Foreign currency savings and sub-account transfers.--The Committee directs that savings in family housing operation and maintenance accounts from foreign currency re-estimates be used to maintain and repair existing family housing units. The Comptroller is directed to report to the Committees on Appropriations of both Houses of Congress on how these savings are allocated 90 days after enactment of this Act. In addition, the Committee directs the services and Defense agencies to notify the Committees on Appropriations of both Houses of Congress within 30 days of a transfer of funds between sub- accounts within the family housing construction and family housing operation and maintenance accounts, if such transfer is in excess of 10 percent of the funds appropriated to the sub- account to which the funds are being transferred. Notifications to the Committees shall indicate the sub-accounts and amounts that are being used to source the transfer.

Leasing reporting requirements.--The Secretary of Defense is directed to report to the Committees on Appropriations of both Houses of Congress quarterly on the details of all new or renewed domestic leases entered into during the previous quarter that exceed the cost threshold set by 10 U.S.C. 2828(b)(2), including certification that less expensive housing was not available for lease. For foreign leases, the Department is directed to: (1) perform an economic analysis on all new leases or lease/contract agreements where more than 25 units are involved; (2) report the details of new or renewed lease agreements that exceed the cost threshold set by 10 U.S.C. 2828(e)(1) 21 days prior to entering into such an agreement; and (3) base leasing decisions on the economic analysis.

Family Housing Construction, Army

Fiscal year 2018 enacted level........................ $182,662,000

Fiscal year 2019 budget request....................... 330,660,000

Committee recommendation in the bill.................. 330,660,000

Comparison with:

Fiscal year 2018 enacted level.................... 147,998,000

Fiscal year 2019 budget request................... - - -

Family Housing Operation and Maintenance, Army

Fiscal year 2018 enacted level........................ $348,907,000

Fiscal year 2019 budget request....................... 376,509,000

Committee recommendation in the bill.................. 376,509,000

Comparison with:

Fiscal year 2018 enacted level.................... 27,602,000

Fiscal year 2019 budget request................... - - -

Family Housing Construction, Navy and Marine Corps

Fiscal year 2018 enacted level........................ $83,682,000

Fiscal year 2019 budget request....................... 104,581,000

Committee recommendation in the bill.................. 104,581,000

Comparison with:

Fiscal year 2018 enacted level.................... 20,899,000

Fiscal year 2019 budget request................... - - -

Family Housing Operation and Maintenance, Navy and Marine Corps

Fiscal year 2018 enacted level........................ $328,282,000

Fiscal year 2019 budget request....................... 314,536,000

Committee recommendation in the bill.................. 314,536,000

Comparison with:

Fiscal year 2018 enacted level.................... (13,746,000)

Fiscal year 2019 budget request................... - - -

Family Housing Construction, Air Force

Fiscal year 2018 enacted level........................ $85,062,000

Fiscal year 2019 budget request....................... 78,446,000

Committee recommendation in the bill.................. 78,446,000

Comparison with:

Fiscal year 2018 enacted level.................... (6,616,000)

Fiscal year 2019 budget request................... - - -

Family Housing Operation and Maintenance, Air Force

Fiscal year 2018 enacted level........................ $318,324,000

Fiscal year 2019 budget request....................... 317,274,000

Committee recommendation in the bill.................. 317,274,000

Comparison with:

Fiscal year 2018 enacted level.................... (1,050,000)

Fiscal year 2019 budget request................... - - -

Family Housing Operation and Maintenance, Defense-Wide

Fiscal year 2018 enacted level........................ $59,169,000

Fiscal year 2019 budget request....................... 58,373,000

Committee recommendation in the bill.................. 58,373,000

Comparison with:

Fiscal year 2018 enacted level.................... (796,000)

Fiscal year 2019 budget request................... - - -

Department of Defense Family Housing Improvement Fund

Fiscal year 2018 enacted level........................ $2,726,000

Fiscal year 2019 budget request....................... 1,653,000

Committee recommendation in the bill.................. 1,653,000

Comparison with:

Fiscal year 2018 enacted level.................... (1,073,000)

Fiscal year 2019 budget request................... - - -

Department of Defense Military Unaccompanied Housing Improvement Fund

Fiscal year 2018 enacted level........................ $623,000

Fiscal year 2019 budget request....................... 600,000

Committee recommendation in the bill.................. 600,000

Comparison with:

Fiscal year 2018 enacted level.................... (23,000)

Fiscal year 2019 budget request................... - - -

Department of Defense Base Closure Account

Fiscal year 2018 enacted level........................ $310,000,000

Fiscal year 2019 budget request....................... 267,538,000

Committee recommendation in the bill.................. 322,390,000

Comparison with:

Fiscal year 2018 enacted level.................... 12,390,000

Fiscal year 2019 budget request................... 54,852,000

The recommendation provides additional funding for the Navy to accelerate environmental remediation at installations closed under previous Base Closure and Realignment rounds. Furthermore, the Navy shall provide to the Committee a spend plan for these additional funds not later than 60 days after enactment of this Act.

Perfluorooctane Sulfonate (PFOS) and Perfluorooctanoic Acid (PFOA).--The Committee has provided additional funds for the continued review of contaminations across the Department of Defense from PFOS and PFOA. This issue not limited to one Service nor is to be funded solely out of a single account. DOD has inspected 524 DOD-wide installations and is directed to keep the Committee apprised of what contaminated locations are to be funded with the BRAC account only, as that is solely the jurisdiction of this bill.

Continues with Part 2 of 5

TARGETED NEWS SERVICE: Myron Struck, editor; 703/304-1897; editor@targetednews.com; https://targetednews.com