Military Construction in Support of Afghanistan and Iraq

Military Construction in Support of Afghanistan and Iraq

Memorandum
April 11, 2005
SUBJECT:
Military Construction in Support of Afghanistan and Iraq
FROM:
Amy Belasco and Daniel Else1
Specialists in National Defense
Foreign Affairs, Defense and Trade Division
This memorandum analyzes funding received or requested for projects to support U.S.
military operations in Afghanistan and Iraq, describes recent changes in the Department of
Defense’s authorities governing military construction projects in response to the wars and
occupations of those countries, and outlines several potential issues for Congress.
In the FY2005 Supplemental, DOD is requesting $1.0 billion for military construction
to support Afghanistan and Iraq either in-country or in surrounding countries. That amount
compares to the $912 million in funding for military construction for those purposes in
previous supplementals since the 9/11 attacks.
Since that time, Congress has also provided DOD with additional flexibility to initiate
military construction projects – without advance authorization – in order for DOD to move
more quickly to meet wartime needs. At the same time, the committees have voiced
concerns about insufficient or lack of information from DOD about the use of funds for
construction projects in Iraq and Afghanistan and the whether all projects rejected qualify as
emergency spending.2
Potential Issues for Congress
With the new request for additional funding for military construction in the FY2005
Supplemental, Congress faces several potential issues:
1 Amy Belasco wrote the legislative history and funding analysis, Dan Else compiled Tables A-1 and
A-2 with the legislative authorities governing military construction, and Kenneth Katzman,
Specialist in Middle Eastern Affairs, provided information on the roles of the facilities mentioned
in this memo.
2 See H.Rept. 109-16, p. 32-33 and S. Rept. 109-52, p.31-36.
Congressional Research Service Washington, D.C. 20540-7000
This memorandum was prepared to enable distribution to more than one congressional client.

CRS-2
!
whether the $2.2 billion in funding in support of military operations in Iraq
and Afghanistan signals a longer-term U.S. presence in the region or is
primarily for short-term improvements to facilities for U.S. troops;
!
whether Congress has received sufficient information to evaluate these
projects;
!
whether current authorities that give DOD additional flexibility to fund
unanticipated needs in military construction give Congress adequate tools
for oversight; and
!
whether DOD’s decisions to rely primarily on supplemental rather then
regular military construction funding and military construction rather than
Operation and Maintenance funding for projects in Iraq and Afghanistan are
appropriate and ensure congressional oversight.
Estimates of Military Construction Funding, FY2001-FY2005
Since the 9/11 attacks, the Defense Department has received supplemental funding of
about $1.1 billion for military construction in or in support of Iraq and Afghanistan and other
projects based on information available to CRS. This total may not capture all funding
because it may not include all transfers of funds from special wartime accounts set up to give
DOD flexibility, because there is no visibility on use of minor construction or planning and
design funds, and because the use of some operation and maintenance funds for military
construction projects in Iraq and Afghanistan was not reported to Congress. This table also
does not include funds appropriated before the first 9/11 supplemental, P.L.107-38, enacted
September 18, 2001.
Of that $1.1 billion total, $912 million was for projects in Iraq and Afghanistan or in
support of operations in those countries with the remainder allocated to unrelated projects
in the United States. By way of comparison, as of the end of FY2003, DOD’s Base Structure
report assessed the plant replacement value – or amount needed to replace existing facilities
– of U.S. bases located in this region at a total of $109.8 million. That total includes funds
for Oman, Kenya, Kuwait and Bahrain; the report shows no funds for United Arab Emirates
(UAE), Qatar, Saudi Arabia, Afghanistan or Iraq.3 Apparently, the Base Structure report
includes some (e.g. Kuwait and Oman) but not all (e.g. Qatar, UAE, Saudi Arabia) countries
where the United States has invested in facilities and has agreements to use those facilities
for U.S. military operations.
DOD is requesting another $1.0 billion in its current FY2005 Supplemental for overseas
military construction projects in or in support of Iraq and Afghanistan.4 Table 1 shows CRS
estimates of previous military construction supplemental funding and the FY2005
3 Department of Defense, Base Structure Report, Fiscal Year 2004 Baseline, 2004, various pages.
4 The $1.0 billion does not include $300 million requested for military construction in the United
States to support Army and Marine Corps unit restructuring; see Department of Defense, FY2005
Supplemental Request for Operation Iraqi Freedom (OIF), Operation Enduring Freedom (OEF),
and Operation Unified Assistance, February 2005, p.11-13.
[http://www.dod.mil/comptroller/defbudget/fy2006/fy2005_supp.pdf]

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Supplemental request by mission.5 If Congress enacts the amount in the FY2005 Request,
about $2.2 billion would have been allocated to military construction projects in support of
the war and occupation of Iraq and Afghanistan. Of that total, 44% would be for Iraq, 14%
for Afghanistan, another 34% in support of both missions either overseas or in the United
States and another 7% would be unspecified (see Table 1).
Funding in the FY2005 Supplemental would roughly double the amount previously
provided to support operations in Iraq and Afghanistan, which may reflect the fact that the
United States is now in its third and fourth year of occupation, respectively. Funding in the
United States in support of Iraq in the FY2005 request also includes about $250 million in
funding for the Army and Marine Corp restructuring efforts, intended to make forces better
able to meet unit rotations. Some observers have raised concerns about the lack of specificity
in DOD’s requests and whether the funding portends a more permanent U.S. presence in
those countries.
Table 1. Supplemental Funds for Military Construction By Mission,
FY2001-FY2005 Request
(in millions of dollars and percent of total)
Mission
FY01-
FY05
Total
FY01-
FY05
Total
FY04
Request
FY04
Request
In or in spt of Afghanistan
120.5
231.1
351.6
13%
17%
16%
In or in support of Iraq
304.6
672.6
977.2
33%
51%
44%
In support of both overseas
284.5
67.4
351.9
31%
5%
16%
In support of both in the
104.1
289.4
393.5
11%
22%
18%
United States
Other unspecified
98.6
68.6
167.2
11%
5%
7%
Total: Afghan. & Iraq
912.3
1,329.0
2,241.3
100%
100%
100%
Other - United States
176.5
70.0
246.5
NA
NA
NA
TOTAL
1,088.8
1,399.0
2,487.8
NA
NA
NA
Sources: CRS estimates from Congressional reports and Department of Defense, FY2005
Supplemental Request for Operation Iraqi Freedom (OIF), Operation Enduring Freedom (OEF),
a n d O p e r a t i o n U n i f i e d A s s i s t a n c e , F e b r u a r y 2 0 0 5 , p . 5 9 - 7 4 .
[http://www.dod.mil/comptroller/defbudget/fy2006/fy2005_supp.pdf]. List of individual projects
available upon request.
Of the funds received for Afghanistan and Iraq, about two-thirds are for bases in
country and one-third for those in surrounding areas. For Afghanistan, $86 million is for
projects in-country and $34 million for projects in surrounding areas. Similarly, for Iraq,
some $209 million is in-country and another $95 million in neighboring countries. Funds
for bases that serve both missions include bases like Al Udeid in Qatar, the new U.S.
regional headquarters. Almost $100 million was for projects with unspecified locations.
In the FY2005 Supplemental, DOD is requesting $1.0 billion for projects overseas
with the following distribution:
5 The table is based on a CRS compilation and classification of 121 military construction projects
listed in congressional reports, transfers from the Defense Emergency Response Fund (DERF), a
special account set up to provide flexibility to allocate wartime funds, congressional reports on use
of FY2004 Operation and Maintenance funds for military construction, and DOD’s FY2005 Request
for Emergency Supplemental Funds, February 2005; List of projects available on request.

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!
$673 million including $597 million for Iraq and $75 million in neighboring
areas;
!
$231 million including $142 million for Afghanistan and $89 million in
supporting bases;
!
$67 million for overseas projects and $289 million for projects in the United
States that support both; and
!
$69 million in unspecified locations (see Table 1 above)
Much of the funding requested for Iraq did not specify location (see Table 2 below).
Bases Receiving or Targeted for Largest Amounts of Funding
Table 2 shows the distribution of funding by location and country for the current
request and previous supplementals.
Iraq Bases. Of the funding received or requested, the bases within Iraq which have
received or are slated to receive the largest amounts are:
!
Balad Air Base, Baghdad and Anaconda, (co-located) – $169 million ($57.1
million requested in the FY2005 supp) and $45 million ($39 million
requested) respectively;
!
Taji Military Complex and Camp Cooke (co-located), – $41 million ($25
million requested) and $8 million respectively;
!
Camp Speicher, Tikrit, – $24 million received; and
!
Aspen, Iraq – $36 million requested in FY2005 supp.
Some $388 million or 27% of the requested funding in the FY2005 Emergency
Supplemental currently under consideration is for unspecified locations, including $300
million to provide hardened overhead protection from mortar and rocket attacks at facilities
where service-members gather, a request in response to the December 2004 attack on the
dining facility in Mosul. The remainder is to replace temporary tents and trailers in Iraq with
concrete maintenance facilities, barracks, and repair facilities.6 By way of comparison, this
unspecified share is more than double the 12% that was unspecified in DOD’s regular
FY2005 military construction appropriations for minor construction and planning and
design.7
Bases in surrounding countries that support Iraq that have or are slated to receive
substantial funding are:
!
Ali Al Salem Air Base in Kuwait – $76 million (requested);
!
Al Sayliyah, Qatar – $37 million received.
Bases in or Supporting Afghanistan. In Afghanistan, the base receiving the most
funds is Bagram Airfield, which is slated for $228 million ($142 million requested). DOD
6 Department of Defense, FY2005 Supplemental Request for Operation Iraqi Freedom (OIF),
Operation Enduring Freedom (OEF), and Operation Unified Assistance, February 2005, p.59-74.
[http://www.dod.mil/comptroller/defbudget/fy2006/fy2005_supp.pdf]
7 CRS calculations based on tables in H.Rept.108-773, p.69-90; unspecified funds in regular military
construction appropriations bills are for minor construction and planning and design.

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is also requesting $43 million for Karshi-Khanabad Air Base in neighboring Uzbekistan that
would support operations in Afghanistan.
Of bases that support both Afghanistan and Iraq, the following amounts have been
received or are requested:
!
Al Udeid Air Base in Qatar – has received $200 million as headquarters
operations formerly in Saudi Arabia were relocated to Qatar in response to
concerns of the Saudi government; and
!
Al Dhafra, the United Arab Emirates – $147 million ($67 million
requested).
Limited Information on Military Construction Requests
Very little information is available publicly on DOD’s plans for bases in or around
Iraq or Afghanistan. Congress recently received DOD’s Master Plans for overseas bases but
the plans are classified and reportedly do not address military construction in Iraq. DOD’s
justification materials for its FY2005 Supplemental characterize most projects as either
replacements of temporary facilities in order to avoid replacement costs and improve quality
of life for troops, or construction to improve safety or force protection. Some projects appear
to have relatively narrow purposes while others suggest substantial U.S. investment to
improve facilities that could be used for the longer-term. DOD has requested its military
construction funds for five years, the standard length of time, which could be perceived as
indicating a more extended U.S. presence.
Requests to, for example, replace tents and trailers with concrete barracks at Camp
Hope, Camp Taji, Camp Warrior, Marez and other unspecified locations in Iraq are intended
to avoid replacement costs and improve force protection.8 Some observers would
characterize these projects as fairly narrow in scope though they could be perceived locally
as signals that U.S. troops are likely to remain in-country for some time.

Other projects that suggest a longer-term U.S. presence include $57 million for Balad
Air Base, designated as a strategic aerial port, to expand aircraft ramps, construct roads and
storage areas for equipment, and replace airfield lighting. Other projects also suggest that
DOD is undertaking a series of investments to build up facilities for the longer-term. For
example, DOD is requesting:
!
$32 million to replace diesel generators with a gas turbine plant at Bagram
Air Base in Afghanistan;
!
$75.5 million for a new aerial port and utilities and infrastructure at Ali Al
Salem in Kuwait;
!
$66 million to consolidate flight facilities at Al Dhafra Air Base in the
United Arab Emirates;
!
$43 million to build a 12,000 foot runway in Karshi-Khanabad Air Base in
Uzbekistan to resupply U.S. forces in Afghanistan; and
!
$36 million to construct a road used for transporting supplies to Iraq from
Kuwait that avoids urban areas.
8 See DOD, FY2005 Supplemental Request, February 2005, p. 59-74.

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Congressional Action on DOD’s FY2005 Emergency Supplemental Request

Recent congressional action on H.R.1268, the FY2005 Supplemental, suggests that
DOD’s plans for military construction in and around Iraq and Afghanistan are of
considerable concern. The House version of H.R. 1268 cuts funding for one overseas
project, the $57 million requested for the fuel tank farm at Bagram Airfield in Afghanistan
stating that the cost of constructing a permanent facility rather than storing fuel in bladders
would not pay off until 2012. The House report also voices concern about the lack of
information on “how the construction projects requested in the supplemental are integrated
with the Department’s long-term strategy for the basing of U.S. forces in the Central
Command Area of Responsibility”9 The report also questions the emergency nature and lack
of information for Congress about plans to commit the United States to substantial military
construction in Kuwait, including two projects – $36 million for a road in Iraq to link up with
a new Kuwaiti road and $75 million in construction at the Ali Al Salem Air Base in Kuwait
– both intended to provide alternatives so U.S. forces would not use the commercial highway
or airport.10
In the Senate report on H.R.1268, the appropriators voice considerable concern about
whether all projects requested meet the emergency test of a supplemental. The Senate
Appropriations Committee also questions “whether the construction of permanent facilities
(where proposed), rather than those of a more expeditionary nature, is appropriate,” adding
that in light of the “expeditionary nature of our Nation’s efforts in Southwest Asia,” the
Senate panel expects that temporary facilities would be the rule rather than the exception.”11
Emergency funding would not seem appropriate for projects requiring long-term planning
according to the panel. Reflecting these concerns, the Senate Appropriations Committee cut
funds for four overseas projects – the fuel tank farm ($57 million) and prime power
generation plant ($32 million), at Bagram Airfield in Afghanistan and the aerial port at Ali
Al Salem Air Base in Kuwait ($76 million) and the launch, recovery and maintenance facility
for surveillance at Al Dhafra Air Base in UAE ($66 million). Another sign that the
committees believe military construction funds should be limited to emergencies is the
decision by both House and Senate appropriators to approve military construction monies
for two years rather than the 5-year life that is standard for military construction and that
DOD requested.

9 H.Rept. 109-16,p. 32.
10 H.Rept.109-16, p.33
11 S.Rept.109-52, p.31.

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Table 2. Supplemental Funds for Military Construction By Location:
FY2001-FY2005 Request

(in millions of dollars)
By country and location FY2001-
FY2005
Total with
asterisks (*) designate co-located facilities
FY2004
Request
Request
Afghanistan
86.1
158.1
244.2
Bagram Airfield
86.1
142.1
228.2
Kandahar Airfield
0.0
16.0
16.0
In support of Afghanistan
34.4
73.0
107.3
Diego Garcia
13.4
0.0
13.4
Ganci Air Base, Kyrgyzstan
21.0
0.0
21.0
Camp Lemonier, Djibouti
0.0
30.5
30.5
Karshi-Khanabad Air Base, Uzbekistan
0.0
42.5
42.5
Iraq
208.8
597.1
805.8
Al Fallujuh, Iraq
8.0
0.0
8.0
Anaconda, Iraq*
5.9
39.0
44.9
Aspen, Iraq
0.0
36.0
36.0
Baghdad - Radwaniya Palace complex
11.7
0.0
11.7
Baghdad forward operating base Falcon
7.0
0.0
7.0
Baghdad, Victory Base
15.5
0.0
15.5
Balad Air Base, Baghdad, Iraq*
111.8
57.1
168.8
Camp Cooke, Iraq**
8.5
0.0
8.5
Camp Hope, Iraq
0.0
2.5
2.5
Camp Speicher, Tikrit, Iraq
23.9
0.0
23.9
Camp Warrior, Iraq
0.0
6.1
6.1
Muthanna Bunkers, Iraq
0.0
11.3
11.3
Marez, Iraq
0.0
12.2
12.2
Northern area, Iraq
0.0
9.9
9.9
Taji Military Complex**
16.5
24.6
41.1
Tallil Air Base, Iraq
0.0
10.8
10.8
Iraq unspecified
0.0
387.6
387.6
In support of Iraq
95.8
75.5
171.3
Al Jaber, & Ali Al Salem Air Base, Kuwait
2.9
0.0
2.9
Ali Al Salem Air Base, Kuwait
0.0
75.5
75.5
Al Sayliyah, Qatar
36.5
0.0
36.5
Kuwait unspecified
49.4
0.0
49.4
N. Arabian Gulf unspecified
3.5
0.0
3.5
Supporting both Afghanistan & Iraq
285.7
67.4
351.9
Al Udeid Air Base, Qatar
199.6
0.0
199.6
Al Dhafra, United Arab Emirates
79.9
67.4
147.3
Camp Darby, Italy
5.0
0.0
5.0
Sptg Afghanistan and Iraq in the United States
104.1
289.4
393.5
Dover, Delaware
56.0
56.0
Guantanamo Naval Station, Cuba
48.1
40.4
88.5
Modularity and Restructuring
0.0
249.0
249.0
Other, Unspecified, Classified
98.6
68.6
167.2
Planning and design, unspecified
6.7
68.6
75.3
Unspecified 69.8
0.0
69.8
Classified
22.1
0.0
22.1
Other - US
176.5
70.0
246.5
TOTAL
1,088.8
1,399.0
2,487.8
Notes and Sources: CRS calculations based on congressional reports and DOD, FY2005 Supplemental
Request for Operation Iraqi Freedom (OIF), Operation Enduring F reedom (OEF), and Operation Unified
Assistance, Feb. 2005, p.59-74. [http://www.dod.mil/comptroller/defbudget/fy2006/fy2005_supp.pdf]

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Standard Authorities Governing Military Construction
The Department of Defense (DOD) has certain longstanding permanent authorities
that govern military construction in the United States and overseas.12 Under these
authorities, the Department of Defense can undertake military construction projects for
“building, structure, or other improvement to real property” on both military installations in
the United States and those under the “operational control” of the U.S. military in foreign
countries as long as funding is included to “produce a complete and usable facility” – a
provision intended to ensure that funding was provided to complete buildings.13
In FY2004, Congress added language stating that funding for military construction
projects could be used “whether to satisfy temporary or permanent requirements,” and
“without regard to the duration of operational control”[italics added].14 This change was
made in response to congressional concerns that DOD had used some $750 million in
Operation and Maintenance (O&M) funds for temporary military construction in Iraq and
Afghanistan without informing Congress in advance.15 (CRS estimates above do not include
these funds.) Before this change, it was generally assumed that military construction funding
would be confined to permanent facilities, and that O&M funding would be used for repairs
to facilities.
Except in certain limited circumstances and for certain types of spending, military
construction funding is provided for individual projects at specified locations which are
authorized in advance and where funding is designated by project. The armed services
committees generally specify funding by state, installation, and project in statutory language
and the appropriations subcommittees handling construction include the same information
in conference report language.16 Both subcommittees generally receive detailed information
from the Defense Department that include cost, schedule, location, and other information for
individual projects using DOD’s Form 1391. Some funding is provided in lump sums for
minor construction, planning and design funds, construction improvements, maintenance of
real property, and furnishings.17
Emergency Authorities
To meet unanticipated and urgent needs, the Secretary of Defense is also allowed to
carry out military construction projects without advance authorization if certain criteria are
met and Congress is notified. Prior to the 9/11 attacks, Title 10 included three permanent
authorities to meet unanticipated military construction needs:
12 See Table A1 for complete listing of authorities.
13 Table A1 and Title 10, Section 2801(b) and (c).
14 Title 10, Section 2801 (a) and 2801(c)(2); see also H. Rept.108-354,p.330-331 and p. 814.
15 See H.Rept. 108-76, conference report on the FY2003 Emergency Supplemental, p. 89-90.
16 As of the 109th Congress, the Military Quality of Life and Veterans Affairs and Related Agencies
Subcommittee in the House and the Military Construction and Veterans Affairs Subcommittee in
the Senate handle military construction appropriations.
17 See for example, Ronald W. Reagan National Defense Authorization Act for Fiscal Year 2005,
H. Rept.108-767, p. 809-825, and H. Rept.108-773, p. 69-90.

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!
Section 2803 permits the Secretary of Defense to initiate projects that are
not authorized if they are “vital to the national security, or to the protection
of health, safety or the quality of the environment,” or where deferral would
be inconsistent with meeting those needs. The Secretary must, however,
notify the defense committees 21 days in advance in writing, and an annual
cap of $45 million is placed on use of this authority;18
!
Section 2804 permits the Secretary to use “contingency construction” funds
in those cases in which deferral of the project would be “inconsistent with
national security or national interest,” and requires advance notification of
21 days; in recent years, the authorization committees have placed caps of
$10 million on contingency construction.19
!
Section 2808 permits the Secretary of Defense to undertake military
construction projects “without regard to any other provision of law,” in case
of a declaration of war or national emergency requiring the use of armed
force; Congress is to be notified of the project and cost (see Table A1 for
more details on these sections).
Additional Flexibility Provided for Military Construction Since 9/11 attacks
In the four war-related supplemental appropriations acts enacted since 9/11, Congress
has provided DOD with new authorities that allow the department additional flexibility to
initiate projects where funding has not been authorized and appropriated in advance. DOD
was allowed to tap two special accounts that were set up to provide flexibility to allocate
wartime funds where needed – the Defense Emergency Response Fund (DERF) and the Iraqi
Freedom Fund (IFF). In addition, Congress gave DOD temporary authority in FY2004 and
FY2005 to use Operation and Maintenance Funds (O&M), which are generally used for
maintenance of equipment and facilities and to provide support services, for temporary
military construction projects. Congress also raised the cap on contingency construction
funds.
In the case of transfers from the DERF, the IFF, or contingency construction,
Congress required advance notification although the length of time has shrunk from 15 days
to 5 days. In the FY2003 and FY2004 emergency appropriations acts, Congress gave DOD
temporary authority to tap O&M funds for unanticipated, temporary, military construction
projects and required notification 15 days after funds are obligated. Congress has also
generally required quarterly reporting after the fact as well (see below).
These new authorities are described below as well as in Table A-2:
!
P.L.107-117, the FY2002 DOD and Emergency Supplemental
Appropriations Act. DOD was authorized to use the Defense Emergency
Response Fund (DERF), for projects that are not authorized but “are
necessary to respond to or protect against acts or threatened acts of
18 Title 10, Section 2808, Section 2802, Section 2803.
19 Title 10, Section 2804; Sec. 2403 in P.L.107-107; for caps, see Sec. 2404 in P.L.107-314; Sec.
2405 in P.L. 108-106; and Sec. 2404 in P.L.108-376.

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terrorism” as long as the defense committees were notified 15 days in
advance;20
!
P.L.107-206, the FY2002 Supplemental. DOD could again tap DERF
funds with 15-day advance notification;21
!
P.L.108-11, the FY2003 Emergency Supplemental. DOD could tap Iraqi
Freedom Fund (IFF) appropriations with 5-day advance notifications of
transfers to the Congressional defense committees;22
!
P.L.108-11, the FY2003 Emergency Supplemental. DOD could
transfer up to $150 million to contingency construction accounts for
temporary or longer-term projects with a 7-day advance certification that the
projects were necessary to “respond to, or protect against, acts or threatened
acts of terrorism, or to support Department of Defense operations in Iraq,”
and notification of the specific amounts and purposes of the projects;
estimated costs were also required for individual projects 15 days after funds
are obligated;23
!
P.L.108-106, the FY2004 Emergency Supplemental. DOD could tap Iraq
Freedom Fund appropriations for military construction projects with 5-day
advance notifications of transfers, and quarterly reporting;24
!
P.L. 108-106, the FY2004 Emergency Supplemental. DOD could use
Operation and Maintenance funds for construction projects if the project was
for “urgent military requirements of a temporary nature, “ involving Iraq or
the ‘Global War on Terrorism,’” on a base where the United States did not
intend to stay, and the project was the “minimum necessary to meet
operational requirements;” the authorizers placed a cap of $200 million on
this authority.25
Congressional Concerns
At the same time as Congress provided this additional flexibility to DOD to meet
wartime requirements and acknowledged the cumbersome nature of the regular process,
Committee reports also criticized DOD for initiating military construction projects without
informing Congress and using inappropriate justifications to expand DOD’s authority. In
the report on the FY2002 DOD appropriations act, conferees were concerned about DOD’s
20 See Section 1001(a) of P.L.107-117, and H. Report 107-350, p. 441-442.
21 Section 1001, P.L.107-206, and H. Rept.107-593, p. 164.
22 See section “Iraq Freedom Fund”, P.L.108-11.
23 P.L.108-11, Section 1901.
24 Iraq Freedom Fund, P.L.108-106.
25 Section 1301, P.L108-106; the authorizers raised the cap of $150 million set in P.L.108-106 to
$200 million in Sec. 2808, P.L.108-136.

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decision to invoke its emergency authority to transfer $68.9 million from previously
authorized projects to terrorist-related projects.26
There was also considerable controversy in 2004 with the publication of Bob
Woodward’s book, Plan of Attack, that alleged that DOD had spent $700 million in funds
appropriated for Afghanistan on facilities that would later be used in the war on Iraq without
informing Congress in advance.27 DOD acknowledged that it had drawn $178.4 million from
the Defense Emergency Response Fund, a fund used for the Afghan war and crisis response
to the 9/11 attacks, to improve communications, store fuel, and upgrade facilities in the
Central Command area of operations. That total included about $62 million to improve the
Al Sayliyah headquarters in Qatar, set up facilities to unload and store munitions, store
aircraft and support deployment of Army forces.28
In the report on the FY2003 Supplemental, the conferees stated that DOD had spent
$750 million in O&M funds for military construction to support the global war on terrorism
without providing advance notice to Congress despite repeated requests, which was justified
on the basis of an internal DOD memo that argued that O&M funds could be used for
temporary operations requirements.29
The following year, in response to this action, the armed services committees changed
the definition of military construction to include temporary as well as permanent facilities.
Some observers argue that this change “closed a loophole” by putting temporary construction
under the standard budgetary rules applying to military construction . Others would argue
that this change blurred the distinctive nature of military construction, generally perceived
as a permanent action signaling enduring presence.
To give commanders operational flexibility, in the same year, Congress provided
DOD with temporary authority to use up to $150 million in O&M funds for military
construction where the Secretary of Defense determines that the project was:
!
urgent;
!
not “at an installation where the United States is reasonably expected to
have a long-term presence”;
!
where the United States “has no intention of using the construction after the
operational requirements have been satisfied;” and
!
the minimum necessary to meet the need [italics added].30
The FY2004 authorization adopted the same criteria for a temporary one-year ‘pilot
program’ that gave DOD authority to use up to $200 million annually in O&M funds for
military construction overseas. DOD was required to notify Congress 7 days after funds
were obligated for projects, and also permitted the Secretary of Defense to waive the funding
26 See H.Rept.107-350, p. 442.
27 Bob Woodward, Plan of Attack, New York: Simon and Shuster, 2004, p. 136-137
28 CRS has included these projects in Tables 1 and Table 2.
29 See H.Rept.108-76, p. 89-90.
30 Sec. 1301, P.L.107-106.

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cap with 5-day after the fact notice.31 By adopting after-the-fact notification rather than
advance notification, Congress no longer required Congressional approval of these projects.
These two changes appear to give DOD the option to fund temporary military
construction projects using either regular military construction funding or tap O&M funding
for additional funding later in the year. Although Congress renewed the authority to use
O&M funds for military construction in the FY2005 DOD Authorization, DOD could not use
the authority until it submitted reports for the previous fiscal year.32 This action was another
signal of congressional dissatisfaction with DOD’s performance in meeting reporting
requirements. In FY2005, Congress prohibited DOD from using any of its funds to “initiate
a new installation overseas” without advance notification in the FY2005 DOD
Appropriations Act, which again, may signal concern that funds have flowed into military
construction without congressional notification.33
Most recently, the House Appropriations Committee placed a hold on obligations of
much of the $1.0 billion in overseas military construction funding requested in the FY2005
Supplemental until DOD submits “comprehensive master plans for overseas military
installations” required with the FY2006 budget.34 That plan was submitted to the
congressional defense committees in mid-March but is classified and reportedly does not
address facilities in Iraq.
Tables A-1 and A-2 in the Appendix provide additional details on these military
construction authorities.
31 Sec.2808, P.L. 108-136, H. Rept. 108-354, p. 816.
32 Section 2810, H.Rept 108-767, p. 318.
33 See H.Rept. 108-622, p. 19-20, and 22.
34 See Sec. Chapter 2, H.R.1268 as engrossed by the House and sent to the Senate, 3-16-05.

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Appendix. Statutory Authorities Governing Military Construction
Table A1. Permanent Military Construction Authorities
Type of
Funding Limits
Requirements
Statute
Construction
Definition of
Not applicable.
10 USC 2801 defines a military construction project as all work
10 USC 2801;
Military
“necessary to produce a complete and usable facility or . . .
amended by
Construction
improvement,” “whether to satisfy temporary or permanent
P.L.108-136,
requirements . . . “ of facilities in the United States or “under the
FY2004 DOD
operational control” of the U.S. military “without regard to the
Authorization
duration of operational control.” (Language in italics added by
Act.
P.L. 108-136 in FY2004)
Military
Not applicable.
Projects must be authorized by law.
10 USC 2802
construction
authorization
Emergency
Limited to $45 million per Secretary per
May initiate unauthorized projects that are:
10 USC 2803
construction
fiscal year within remaining unobligated
(1) Vital to the national security or to the protection of health,
military construction funds.
safety, or the quality of the environment, and
(2) So urgent that deferral until the next Military Construction
Authorization Act is inconsistent with national security or the
protection of health, safety, or environmental quality.
Secretary must wait 21 days after reporting in writing to appropriate
committees:
(a) justification for the project and current cost estimate;
(b) justification for project under this subsection, and;
(c) funding source for project.

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Table A1. Permanent Military Construction Authorities
Type of
Funding Limits
Requirements
Statute
Construction
Contingency
Within existing funds.
Secretary of Defense may initiate unauthorized projects where
10 USC 2804
construction
deferral to next authorization would be “inconsistent with national
Cap of $10 million included in FY2002,
security or national interest.” Requires 21 day wait after notification
FY2003, and FY2005 DOD Authorization
in writing to appropriate committees with:
Acts; cap of $9 million in FY2004 DOD
(1) justification and current cost estimate;
Authorization Act.
(2) justification for project under this subsection; and
(3) funding source for project
Unspecified minor
Within a total equal to 125 percent of the
Secretary of Defense must wait 21 days after notifying appropriate
10 USC 2805
construction
amount authorized by law for unspecified
committees for projects costing over $1.5 million providing
minor construction, DOD may initiate
information on
unauthorized military construction projects
(1) decision;
of up to $1.5 million or up to $3.0 million to
(2) justification for the project ; and
correct threats to life, health, or safety; $5
(3) estimated cost.
million limit applies to exercise-related
projects of the Joint Chiefs of Staff outside
the United States. Projects over $750,000
must be authorized by military secretary.
DOD may use operation and maintenance
funding for minor construction costing $1.5
million or less or $3.0 million or less for
projects to protect health and safety.
Limitation do not apply to projects to
enhance deployment and mobility of
military forces and supplies.

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Table A1. Permanent Military Construction Authorities
Type of
Funding Limits
Requirements
Statute
Construction
Declaration of War
No cap or limits.
In the event of the declaration of war or national emergency
10 USC 2808
or National
requiring the use of armed force, the Secretary of Defense, without
Emergency
regard to any other provision of law, DOD may undertake
unauthorized military construction projects to support such use of
the armed forces [italics added]. The Secretary of Defense shall
notify the appropriate committees of Congress of the decision and
of the estimated cost of the construction projects, including the cost
of real estate required.
The President made the necessary declaration in Executive Order
No. 13235 of Nov. 16, 2001, and the authority was extended in
2002 and 2004. The authority ends with the termination of war or
national emergency.
Sources: Table compiled by Daniel Else and Amy Belasco, CRS, Foreign Affairs, Defense and Trade from the statutes and reports cited above.

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Table A2. Temporary Military Construction Authorities, FY2002-FY2005
Act
Authority
Reporting Requirement
Citation
Fiscal Year 2002
Within amounts made
DOD may obligate funds for projects 15 days after notifying the appropriate
Division B,
Department of
available to the Department of
committees of Congress of:
Chapter 10, Sec
Defense
Defense from funds
(1) The determination to use such amounts for the project.
1001 (a) and (b)
Appropriations (P.L.
appropriated in Public Law
(2) The estimated cost of the project and the accompanying Form 1391.
and Joint
107-117, H. Rept.
107-38 in Defense Emergency
Explanatory
107-350, Division B
Response Fund, (DERF) and
Removes legal barrier to use of funds deposited into DERF account for military
Statement
this Act, Secretary of Defense
construction
may carry out unauthorized
military construction projects
Conferees directed DOD to use unobligated balances from fiscal years prior to
determined to be necessary to
FY 2002 for terrorism-related military construction, and if insufficient, then
respond to or protect against
unobligated funds from FY 2002 authorized projects.
acts or threatened acts of
terrorism.
Fiscal Year 2002
Amounts made available to
DOD may obligate funds for projects 15 days after notifying the appropriate
Sec 1001 (a) and
Supplemental
the Department of Defense
committees of Congress of
(b) and Joint
Appropriations (P.L.
from funds appropriated in
(1) The determination to use such amounts for the project.
Explanatory
107-206, H. Rept.
this Act may be used to carry
(2) The estimated cost of the project and the accompanying Form 1391.
Statement
107-593)
out unauthorized military
construction projects that the
Secretary of Defense
determines are necessary to
respond to or protect against
acts or threatened acts of
terrorism.

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Table A2. Temporary Military Construction Authorities, FY2002-FY2005
Act
Authority
Reporting Requirement
Citation
Fiscal Year 2003
Permits DOD to transfer funds
Secretary of Defense may not make transfers until 5 days after notifying
Title I, Chapter 3
Emergency Wartime
from newly-established Iraq
congressional defense committees in writing of details of transfer.
Supplemental
Freedom Fund (IFF) to
Appropriations
military construction
Requires DOD to submit a report no later than July 1, 2003, and then 30 days
(P.L. 108-11, H.
accounts.
after the end of each fiscal quarter to congressional defense committees
Rept. 108-76)
summarizing details of transfers of funds from this appropriation.
Permits obligation of military
Requires DOD notification of congressional defense committees no later than 15
Sec. 1312
construction or minor
days after the obligation of funds for military construction activities or minor
construction funds.
construction in excess of $7.5 million.
The Secretary of Defense may
Transfer cannot be made until 7 days after Secretary of Defense submits written
Sec. 1901
transfer not more than $150
notification to appropriate committees of Congress certifying the transfer is
million of funds in this
necessary to respond to, or protect against, acts or threatened acts of terrorism or
appropriation, in addition to
to support Department of Defense operations in Iraq, and specifying the amounts
any other DOD transfer
and purposes of the transfer, including a list of proposed project and their
authority, to the contingency
estimated costs.
construction account (10 USC
2804) to carry out
Requires that the Secretary of Defense shall submit written notice to the
unauthorized military
appropriate committees of Congress no later than 15 days after the obligation of
construction projects.
the funds for the project, specifying the estimated cost of the project and
including Form 1391. Defines "military installation" to include not only
buildings, structures, and other improvements to real property under the
operational control of the Secretary of a military department or the Secretary of
Defense, but also those used by the Armed Forces, regardless of whether such
uses anticipated to be temporary or of longer duration [italics added]. Waives
requirement for 21-day advance notification in 10 USC 2804.

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Table A2. Temporary Military Construction Authorities, FY2002-FY2005
Act
Authority
Reporting Requirement
Citation
Fiscal Year 2004
Permits transfer of funds from
Requires 5-day advance written notification by the Secretary of Defense to
Title I, Chapter
Emergency
Iraq Freedom Fund to military
congressional defense committees of details of transfers.
1, Iraq Freedom
Supplemental for
construction.
Requires quarterly reports no later than 30 days after the end of each fiscal
Fund
Defense and
quarter to congressional defense committees summarizing details of transfers.
Reconstruction,
P.L.108-106
The conferees direct the Central Command to submit its master plan for facilities
Chapter 3 Joint
in the Central Command area of responsibility, including the operational
Explanatory
requirements and the planned disposition of equipment, aircraft and personnel, no
Statement, and
later than December 1, 2003 in both classified and unclassified form. Deadline
H. Rept. 108-
moved to FY2006 budget in H.Rept 108-372, conference report on FY2004
372, p.17.
Military Construction Appropriations.
FY2004 Department
Permits DOD to use up to
Secretary of Defense must certify that projects meet the following criteria
Sec. 2808, P.L.
of Defense
$200 million in O&M funds
(1) urgent military requirements during a declared state of emergency or
108-136
Authorization Act,
for temporary military
contingency operation;
(P.L.108-136)
construction projects outside
(2) not at an installation where the United States is “reasonably expected to have
the United States for one year.
a long-term presence;”
Cap may be waived by
(3) United States has no intention of using construction after military requirement
Secretary of Defense if
is satisfied;
projects are “vital to national
(4) construction is minimum necessary.
security” with notification to
Secretary must notify congressional defense committees within 7 days of
Congress 5-days after waiver.
obligating funds, including description of purpose, documentation, and estimated
funding.
Requires quarterly reports 30 days after end of quarter on worldwide obligation
and expenditure of funds.

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Table A2. Temporary Military Construction Authorities, FY2002-FY2005
Act
Authority
Reporting Requirement
Citation
FY2004 DOD
One-year extension of
Authority not available until DOD submits the quarterly reports required in
Sec. 2810,
Authorization Act
authority to use up to $200
FY2004.
P.L.108-136
(P.L.108-106)
million of O&M for military
construction projects
authorized.
Fiscal Year 2005
No funding provisions.
The President shall report to Congress by January 1, 2005 detailing estimated
P.L. 108-287,
Department of
costs from FY2006 to FY2011 of Operation Iraqi Freedom and Operation
Sec. 9012
Defense
Enduring Freedom, or any related military operations in and around Iraq and
Appropriations (P.L.
Afghanistan, and the estimated costs of reconstruction, internal security, and
108-287, H. Rept.
related economic support to Iraq and Afghanistan.
108-622)
President may waive the requirement only if he certifies in writing to the
Congress that estimates of these future military and economic support costs
cannot be provided for purposes of national security.
FY2005 DOD
Prohibits using any funds in act to initiate new installations overseas without 30-
Sec. 8011,
Appropriations Act
day advance notification to congressional defense committees.
P.L.108-287
(P.L.108-287)
Sources: Table compiled by Daniel Else and Amy Belasco, CRS, Foreign Affairs, Defense and Trade from the statutes and reports cited above.

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