H.R. 5931House110th Congress (2007-2009)In Committee

Joint Guam Projects Oversight Act

To ensure appropriate implementation and oversight of the realignment of military installations and the relocation of military personnel on Guam, and for other purposes.

Legislative Activity

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HouseCommittee Latest Action

Referred to the Subcommittee on Readiness.

Readiness Subcommittee

May 23, 2008

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HouseIntro Referral

Introduced in House

April 30, 2008

HouseIntro Referral

Referred to the Committee on Armed Services, and in addition to the Committee on Small Business, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

Armed Services Committee

April 30, 2008

HouseIntro Referral

Sponsor introductory remarks on measure. (CR E852-853)

May 7, 2008

HouseCommittee

Referred to the Subcommittee on Readiness.

Readiness Subcommittee

May 23, 2008

Floor Debate

1 member

What members said about H.R. 5931 on the floor

1 Democrat

Rep. Madeleine Z. BordalloD-GU · May 7, 2008

Madam Speaker, today I have introduced H.R. 5931, the Joint Guam Projects Oversight Act, to ensure appropriate implementation and oversight of the realignment of military installations and the…

Madam Speaker, today I have introduced H.R. 5931, the Joint Guam Projects Oversight Act, to ensure appropriate implementation and oversight of the realignment of military installations and the relocation of military personnel on Guam. I am joined by my colleague from Hawaii, Mr. Abercrombie, in introducing this legislation.

The rebasing of military forces from Okinawa, Japan to Guam is a component of the United States-Japan Alliance Transformation and Realignment Agreement signed in May 2006. Additionally, planned for Guam is the reassignment of a significant number of airmen from Korea, the standing-up of a U.S. Army air defense battalion and improvements to Naval Base Guam. These major realignments present significant challenges and opportunities for the community on Guam.

Over the next 6 years the Department of Defense and the Government of Japan plan to spend over $10 billion to support the realignment of units of the III Marine Expeditionary Force from Okinawa to Guam and an additional $3 billion on upgrades and improvements at Andersen Air Force Base. The Government of Japan has pledged to contribute over $6 billion to support the rebasing of units from Okinawa to Guam through direct contributions to the United States Treasury and through Special Purpose Entities (SPEs). Funding of some projects by a foreign government poses significant challenges to Congress's right and responsibility to oversee this realignment. H.R. 5931 creates a new account for the realignment to Guam. The account entitled the ``Guam Defense Policy Review Initiative Account'' would help the Department of Defense manage its expenditures on projects associated with the realignment of military forces on Guam.

This legislation also addresses the unique nature of the SPEs. Department of Defense officials indicate that SPEs are intended to operate in a manner similar to other public-private ventures that currently exist with respect to other projects in the United States. Our legislation expresses a Sense of Congress that the SPEs should operate as publicprivate ventures. It also encourages the Department of Defense to ensure that all construction projects on Guam, operated and maintained by SPEs, should meet U.S. standards. It also encourages the Department of Defense along with the Government of Japan to consider utilizing the SPEs for projects other than military housing and utility infrastructure improvements. Moreover, if the SPEs are utilized to improve utilities on Guam the improvements must be made to the overall grid operated by the Government of Guam and not solely for the benefit of military installations. Improvements to the overall utility infrastructure on Guam will be more cost-effective.

The $13 billion investment by the Department of Defense and the Government of Japan is intended primarily for military infrastructure. However, the Government of Guam estimates that additional funds will be needed to improve civilian infrastructure, including schools, public safety, water, wastewater, utility, and road improvements to accommodate the additional population on the island. As we near the end of the Bush Administration's term it is important that the Federal Government work closely with the Government of Guam to develop Memoranda of Understanding, MOU, to ensure Federal commitments that Guam can rely on. The MOUs can be facilitated by utilizing the Interagency Group on the Insular Areas, IGIA, established by executive order of the President. The legislation includes a Sense of Congress that these MOUs must be developed to ensure that the build-up is a success. In reference to planning, the legislation also authorizes the Office of Economic Adjustment, OEA, within the Department of Defense to provide planning funds to the Commonwealth of the Northern Mariana, Islands, CNMI. This will support appropriate planning by the Government of the CNMI for increases in population and military activity resultant from the establishment and utilization of training ranges in the CNMI. Currently, the OEA lacks the authority in law to provide planning funds to the CNMI and this provision would correct this omission in law.

It is important that military construction projects on Guam be energy friendly and meet strong environmental design standards. The legislation requires the Department of Defense to meet Leadership in Energy and Environmental Design, LEED, silver rating standards. LEED standards have been developed and

are approved by the U.S. Green Building Council. The legislation also requires the Secretary of Defense to report back to Congress on establishing a goal for energy renewability on Guam. The major construction effort supporting the build-up should be conducted in the most environmentally friendly and energy efficient manner as possible.

The legislation also prioritizes the small business community in this military build-up. The bill contains a provision that would limit the Historically Underutilized Business Zone, HUB Zone, preference for work performed in excess of 150 miles from the primary office location of a HUBZone firm. This provision would ensure that construction projects benefit the local businesses and economy. Moreover, the legislation would authorize the establishment of a Procurement Technical Assistance Center, PTAC, on Guam to help local small businesses navigate the complexities and bureaucracy of Department of Defense contracting.

Finally, the legislation will require all contractors to certify their compliance with local tax and licensing requirements. The provision grants the contracting agent within the Department of Defense the ability to withhold final payments on contracts if the contractor is found to be delinquent in paying their local tax obligations. This provision is important to ensuring the Government of Guam will be able to collect revenue from this build-up and apply such revenue to make needed improvements to civilian infrastructure.

The military build-up on Guam presents many opportunities and many challenges. I firmly believe that the legislation I have introduced today with Mr. Abercrombie will help facilitate congressional oversight and accountability of build-up activities as well as provide additional tools for the local government and businesses to make this build-up a success. This legislation addresses issues important to the people of Guam and would help to ensure the success of the military build-up both for the Department of Defense and for the people of Guam.

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Introduced in HouseIssued April 30, 2008

110th CONGRESS

2d Session

H. R. 5931

IN THE HOUSE OF REPRESENTATIVES

April 30, 2008

Ms. Bordallo (for herself and Mr. Abercrombie) introduced the following bill; which was referred to the Committee on Armed Services, and in addition to the Committee on Small Business, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

A BILL

To ensure appropriate implementation and oversight of the realignment of military installations and the relocation of military personnel on Guam, and for other purposes.

Short title; table of contents

(a)

Short title

This Act may be cited as the Joint Guam Projects Oversight Act.

(b)

Table of contents

The table of contents for this Act is as follows:

Sec. 1. Short title; table of contents.

Sec. 2. Guam Defense Policy Review Initiative Account.

Sec. 3. Sense of Congress regarding use of Special Purpose Entities for military housing related to Guam realignment.

Sec. 4. Sense of Congress regarding Federal assistance to Guam.

Sec. 5. Comptroller General report regarding interagency requirements related to Guam realignment.

Sec. 6. Energy and environmental design initiatives in Guam military construction and installations.

Sec. 7. Department of Defense Inspector General report regarding Guam realignment.

Sec. 8. Eligibility of the Commonwealth of the Northern Mariana Islands for military base reuse studies and community planning assistance.

Sec. 9. Support for small businesses and local employment opportunities in Guam realignment.

Sec. 10. HUBZone program limitation on construction contracts for small business concerns.

Sec. 11. Procurement Technical Assistance Center on Guam.

Sec. 12. Enhancement of Guam enforcement of tax, employment, and licensing laws against construction contractors of the military departments.

Guam Defense Policy Review Initiative Account

(a)

Establishment of Account

There is established on the books of the Treasury an account to be known as the Guam Defense Policy Review Initiative Account (in this section referred to as the account).

(b)

Credits to account

(1)

Amounts in fund

There shall be credited to the account the following amounts:

(A)

Amounts authorized for and appropriated to the account.

(B)

Contributions received under section 2350k of title 10, United States Code, for the realignment of military installations and the relocation of military personnel on Guam.

(C)

Amounts transferred to the account to support the realignment of military installations and the relocation of military personnel on Guam.

(2)

Notice of receipt of contributions

The Secretary of Defense shall submit to Congress written notice of the receipt of contributions referred to in paragraph (1)(B), including the amount of the contributions, not later than 30 days after receiving the contributions.

(c)

Use of Account

(1)

Authorized uses

Subject to paragraph (2), in such amounts as may be provided in advance in appropriations Acts, amounts in the account may be used as follows:

(A)

To carry out or facilitate the carrying out of a transaction in connection with the realignment of military installations and the relocation of military personnel on Guam, including military construction, military family housing, unaccompanied housing, general facilities constructions for military forces, and utilities improvements.

(B)

To carry out improvements of property or facilities on Guam as part of such a transaction.

(C)

To obtain property support services for property or facilities on Guam resulting from such a transaction.

(D)

To develop military facilities or training ranges in the Commonwealth of the Northern Mariana Islands.

(2)

Compliance with guam master plan

Transactions authorized by paragraph (1) shall be consistent with the Guam Master Plan, as incorporated in decisions made in the manner provided in section 102 of the National Environmental Policy Act of 1969 (42 U.S.C. 4332).

(3)

Limitation regarding military housing

To extent that the authorities provided under subchapter IV of chapter 169 of title 10, United States Code, are available to the Secretary of Defense, the Secretary shall use such authorities to acquire, construct, or improve family housing units, military unaccompanied housing units, or ancillary supporting facilities in connection with the relocation of military personnel on Guam.

(4)

Compliance with wage rate requirements

Subchapter IV of chapter 31 of title 40, United States Code, shall apply to the use of all amounts in the account.

(5)

Special requirements regarding use of contributions

(A)

Treatment of contributions

Except as provided in subparagraphs (C) and (D), the use of contributions referred to in subsection (b)(1)(B) shall not be subject to conditions imposed on the use of appropriated funds by chapter 169 of title 10, United States Code, or contained in annual military construction appropriations Acts.

(B)

Notice of obligation

Contributions referred to in subsection (b)(1)(B) may not be obligated for a transaction authorized by paragraph (1) until the Secretary of Defense submits to Congress notice of the transaction, including a detailed cost estimate, and a period of 21 days has elapsed after the date on which the notification is received by Congress or, if over sooner, a period of 14 days has elapsed after the date on which a copy of the notification is provided in an electronic medium.

(C)

Cost and scope of work variations

Section 2853 of title 10, United States Code, shall apply to the use of contributions referred to in subsection (b)(1)(B).

(D)

Preference for United States contractors

The general provision contained in annual military construction appropriations Acts that provides a limited preference for military construction in the United States territories and possessions in the Pacific shall apply to the use of contributions referred to in subsection (b)(1)(B).

(d)

Transfer authority

(1)

Transfer to housing funds

The Secretary of Defense may transfer funds from the Guam Defense Policy Review Initiative Account to the following funds:

(A)

The Department of Defense Family Housing Improvement Fund established by section 2883(a)(1) of title 10, United States Code.

(B)

The Department of Defense Military Unaccompanied Housing Improvement Fund established by section 2883(a)(2) of such title.

(2)

Treatment of transferred amounts

Amounts transferred under paragraph (1) to a fund referred to in that paragraph shall be available in accordance with the provisions of section 2883 of title 10, United States Code, for activities on Guam authorized under subchapter IV of chapter 169 of such title.

Sense of Congress regarding use of Special Purpose Entities for military housing related to Guam realignment

(a)

Nature of special purpose entities

It is the sense of Congress that any Special Purpose Entity established to assist in the provision of military family housing in connection with the realignment of military installations and the relocation of military personnel on Guam should—

(1)

be operated, to the extent practicable, in the manner provided for public-private ventures under subchapter IV of chapter 169 of title 10, United States Code; and

(2)

be conducted as joint ventures between Japanese and United States private firms, except that any military family housing venture carried out by such a joint venture should be primarily managed by a United States private firm.

(b)

Scope of activities

It is the sense of Congress that funding for such a Special Purpose Entity should not be limited to only utility improvements and the construction of military family housing in connection with the realignment of military installations and the relocation of military personnel on Guam.

(c)

Utility infrastructure improvements

It is the sense of Congress that funding for such a Special Purpose Entity should support proposed utility infrastructure improvements on Guam that incorporate the civilian and military infrastructure into a single grid to realize and maximize the effectiveness of the overall utility system.

(d)

Military family housing

It is the sense of Congress that the building requirements imposed for any military family housing constructed by such a Special Purpose Entity in connection with the realignment of military installations and the relocation of military personnel on Guam should be established by the Department of Defense in accordance with current building standards that are used with other projects.

Sense of Congress regarding Federal assistance to Guam

(a)

Sense of Congress

It is the sense of Congress that the Secretary of Defense, in coordination with the Interagency Group on Insular Areas, should enter into a memorandum of understanding with the Government of Guam to identify, before the realignment of military installations and the relocation of military personnel on Guam, local funding requirements for civilian infrastructure development and other needs related to the realignment and relocation. The memorandum of understanding would stipulate the commitment of Federal agencies to assist the Government of Guam in carrying out the Guam realignment in a responsible and consistent manner.

(b)

Interagency Group on Insular Areas defined

In this section, the term Interagency Group on Insular Areas means the interagency group established by Executive Order No. 13299 of May 12, 2003 (68 Fed. Reg. 25477; 48 U.S.C. note prec. 1451). The term includes any sub-group or working group of that interagency group.

Comptroller General report regarding interagency requirements related to Guam realignment

(a)

Report required

Not later than 180 days after the date of the enactment of this Act, the Comptroller General shall submit to Congress a report on the status of interagency coordination through the Interagency Group on Insular Areas of budgetary requests to assist the Government of Guam with its budgetary requirements related to the realignment of military forces on Guam. The report shall address to what extent and how the Interagency Group on Insular Areas will be able to coordinate interagency budgets so the realignment of military forces on Guam will meet the 2014 completion date as stipulated in the May 2006 security agreement between the United States and Japan.

(b)

Interagency Group on Insular Areas defined

Energy and environmental design initiatives in Guam military construction and installations

(a)

Leadership in Energy and Environmental Design principles

With respect to all new military construction projects on Guam and military housing to be constructed on Guam related to the realignment of military forces on Guam, the Secretary of Defense shall require the incorporation, into the design criteria for the projects, of principles developed by the Leadership in Energy and Environmental Design to achieve not less than the silver standard, as determined by the appropriate Leadership in Energy and Environmental Design committee. This requirement shall apply regardless of the source of funds for the project.

(b)

Renewable energy goal

The Secretary of Defense shall establish a goal for the use of renewable energy sources on all military installations on Guam. Not later than one year after the date of the enactment of this Act, the Secretary shall submit to Congress a report containing the plan of the Secretary to achieve the renewable energy goal. The report shall identify the renewable sources of energy that will be utilized and describe how the renewable sources will be utilized and installed at military installations on Guam.

Department of Defense Inspector General report regarding Guam realignment

Not later than 180 days after the date of the enactment of this Act, the Inspector General of the Department of Defense shall submit to Congress a report on the efforts of the Inspector General to address potential waste and fraud associated with the realignment of military forces on Guam.

Eligibility of the Commonwealth of the Northern Mariana Islands for military base reuse studies and community planning assistance

(a)

Inclusion in definition of military installation

Section 2687(e)(1) of title 10, United States Code, is amended by inserting after Virgin Islands, the following: the Commonwealth of the Northern Mariana Islands,.

(b)

Inclusion of facilities owned and operated by commonwealth

Section 2391(d)(1) of title 10, United States Code, is amended by inserting after Guam, the following: the Commonwealth of the Northern Mariana Islands,.

Support for small businesses and local employment opportunities in Guam realignment

(a)

Sense of Congress

In connection with contracts to be entered into by the Secretary of Defense related to the realignment of military installations and the relocation of military personnel on Guam, it is the sense of Congress that the Secretary should grant a preference, to the maximum extent practicable—

(1)

to small business concerns domiciled on Guam or in the Commonwealth of the Northern Mariana Islands in awarding the contracts; and

(2)

to the local workforce for employment under such contracts.

(b)

Training programs

The Secretary of Defense, in coordination with other Federal agencies comprising the Interagency Group on Insular Areas, should develop and support programs for training of the local workforce to acquire the job skills needed for employment opportunities arising as a result of the realignment of military installations and the relocation of military personnel on Guam.

(c)

Interagency Group on Insular Areas defined

10.

HUBZone program limitation on construction contracts for small business concerns

Section 31(b) of the Small Business Act (15 U.S.C. 657a(b)) is amended by adding at the end the following:

(6)

Limit HUBZone program construction contracts in or near a HUBZone

A small business concern may not obtain a construction contract by reason of the HUBZone program unless the construction project is located in or near the HUBZone in which the small business concern has its principal place of business. The Administrator shall prescribe standards for determining when a project is located near a HUBZone for purposes of this paragraph, except that under no circumstances can a project located more than 150 miles from a HUBZone be located near that HUBZone.

11.

Procurement Technical Assistance Center on Guam

(a)

Cooperative agreement

Using funds appropriated pursuant to the authorization of appropriations in subsection (b), the Secretary of Defense shall enter into a cooperative agreement under section 2413 of title 10, United States Code, for the purpose of establishing a Procurement Technical Assistance Center on Guam.

(b)

Authorization of Appropriations

There is authorized to be appropriated to the Secretary of Defense for fiscal year 2009 $600,000 to establish the Procurement Technical Assistance Center on Guam.

12.

Enhancement of Guam enforcement of tax, employment, and licensing laws against construction contractors of the military departments

(a)

Requirement for Tax-Related Clearance From Potential Construction Contractors

For purposes of section 2305 of title 10, United States Code, in order to be considered a responsible bidder or offeror for a contract for the construction of a public building, facility, or work on Guam, a bidder or offeror shall submit with the bid or offer a tax clearance from the Government of Guam indicating that the bidder or offeror is in compliance with all the tax laws of Guam.

(b)

Requirement To Withhold Final Contract Payment Until Receipt of Tax-Related Clearance and Certification of Compliance With Employment Laws From Contractor

The Secretary of a military department shall withhold final payment under any contract for the construction of a public building, facility, or work on Guam until the contractor submits to the Secretary both of the following:

(1)

A tax clearance required by subsection (a).

(2)

A certification stating that the contractor is in compliance (or was in compliance during the performance of the contract) with all applicable laws of Guam that require employers to make payments to or for the benefit of employees, including laws relating to unemployment insurance, workers compensation, health insurance, and disability insurance.

(c)

Authority To Withhold Payment to Contractor of Amounts Necessary To Meet Guam Tax Obligations

The Secretary of a military department may withhold, from any payment due to a contractor under a contract made by the Secretary for the construction of a public building, facility, or work on Guam, an amount considered necessary by the Secretary to pay to the Government of Guam the amount of the contractor’s tax liability to Guam that is attributable to the contract. The Secretary may, upon request of the Government of Guam, and with such documentation as the Secretary considers necessary, pay such tax liability amount directly to the Government of Guam from the withheld payment. Any amount of a withheld payment that exceeds the actual tax liability amount shall be paid to the contractor.

(d)

Requirement for Construction Contractors To Obtain Applicable Licenses

In any contract entered into by the Secretary of a military department for the construction of a public building, facility, or work on Guam, the Secretary shall require that the contractor performing the type of work to be performed under the contract be licensed to perform such work.

(e)

Effective Date

This section shall apply with respect to contracts entered into after the date of the enactment of this Act.