1. Short title This Act may be cited as the Military Facilities Upgrades Act . 2. Modification of authority to replace damaged or destroyed facilities to include certain facilities in failing condition (a) In general Section 2854 of title 10, United States Code, is amended— (1) by striking subsection (a) and inserting the following new subsection (a): (a) (1) Subject to subsection (b), the Secretary concerned may replace a facility under the jurisdiction of the Secretary concerned, including a family housing facility— (A) that has been damaged or destroyed; or (B) that is a facility described in paragraph (2) in failing condition, if— (i) replacement is more cost-effective than repair; (ii) the replacement facility supports an existing mission of the Department of Defense; and (iii) the replacement facility does not exceed the total square footage of the replaced facility. (2) A facility described in this paragraph is any of the following facilities of the Department of Defense or an armed force: (A) Any barracks, housing, or dormitory facility. (B) A child development center. (C) Any other quality of life facility, including a fitness center, recreation facility, dining facility, or commissary facility. ; (2) in subsection (b), by striking repair, restoration, or ; (3) in subsection (c)— (A) in paragraph (1), in the matter preceding subparagraph (A), by striking subsection (a) and inserting subsection (a)(1)(A) ; and (B) in paragraph (2)— (i) by striking this subsection and inserting paragraph (1) ; and (ii) by striking described in paragraph (1) and inserting described in paragraph (1)(B) ; (4) by redesignating paragraph (3) as paragraph (4); (5) by inserting after paragraph (2) the following new paragraph (3): (3) In using the authority described in subsection (a)(1)(B) to carry out a military construction project to replace a facility, including a family housing facility, that is in failing condition, the Secretary concerned may use appropriations available for operation and maintenance.