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Please send questions in email to kerberos@mit.edu instead of submitting 
them as bug reports.

Your problem is a broken gcc wrapper script on your system, as seen here:

gcc [...] -DCMD_PATH='"/bin /local/bin"' [...] -c authorization.c
gcc.orig: /local/bin": No such file or directory
[...]

Your gcc wrapper is not correctly quoting arguments when invoking 
gcc.orig, so the CMD_PATH definition is being separated into two 
arguments.  If you wrote the wrapper yourself and it's a shell script, 
use "$@" (with quotes) to pass the arguments on to gcc.orig instead of 
$*.