Someone installed VL copies of Windows 7 on several non-domain PCs in our organization before I started here. They sat there, not activated, for a very long time until I manually pointed them to the KMS host since they were set up in their own workgroup outside the domain. After that, they just call the assigned address instead of checking with the DNS server, and it works just fine.
Chances are, this particular army base's IT guru isn't really knowledgeable enough to get it done correctly.