Hearing of the Readiness Subcommittee of the House Armed Services Committee - Implementation of the 2005 Base Realignment and Closure (BRAC) Decisions

Interview

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REP. JOHN MCHUGH (R-NY): Thank you, Mr. Chairman.

Let me begin by adding my words of congratulations to our new ranking member. And I know, Mr. Chairman, you will -- you and he will work very well together and I certainly look forward to working with our new leader.

Also, to Secretary Grone -- Phil, best wishes to you in the future. You still have many, many friends here, many that most (sic) of us have on this panel. So I wish you all the best and we appreciate all the great service that you provided this committee and, of course, in recent years to the department and to the men and women in uniform.

Having said that, I want to make sure -- I've heard your dialogue with Ms. Boyda; I just heard the exchange with the chairman, and that was really going to be the one area of inquiry that I had.

More generically, we've got a pattern through non-appropriated fund projects that is conserting (sic) -- disconcerting to me, and concerning as well.

And as you look at years '05 through '08, when you've got commissary and NAF construction requests that total about $2.2 billion, 929 million of those dollars -- or over 40 percent -- resulted because DOD requested waivers to allow NAF funding, non- appropriated funding, to be used to pay for projects that by stated DOD policy ought to be built with appropriated funds.

We all understand there comes a time when waivers are required, when you have projects that are unable to be accounted for in an appropriate way. In fact, that's the quote from the DOD policy from time to time. But over 40 percent is pretty big number through a three-year period.

And as we look at '08, of the total funds that you have requested, we're really concerned again about this use of waiver -- particularly in the BRAC and in the re-stationing accounts, because those are projects that by policy -- and I heard you say that your personnel folks are looking at it -- but we've looked at it and by policy certainly should not be NAF funding. I guess we can talk about other possible ways, but shouldn't be NAF funding except on time-to- time basis.

So I wanted to weigh in my two cents worth. I don't know if you want to respond to my comments any differently than you did in the dialogue that you had with my two colleagues, but this is a concern.

And I don't need to lecture you, or even discuss with you, because I know you fully understand when we divert those NAF funds, those are dollars that are unable to go to very important projects that benefit quality-of-life of every soldier, sailor, airman and Marine out there.

So that's an unpaid editorial comment on my part. If you'd like to comment, I'd be appreciative.

MR. GRONE: Mr. McHugh, I thank you for your kind remarks.

I will take the concerns expressed by Ms. Boyda, the chairman and yourself back to Mr. Dominguez and raise them with him and we'll see where that sort of process goes.

I understand and appreciate the dynamic that you played out. I understand it -- I'll make sure I will raise it with the appropriate folks -- Dr. Chu and Mr. Dominguez and see how that will be addressed in the coming weeks and months.

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