To amend the National Defense Authorization Act for Fiscal Year 2010 to extend the authority of the Secretary of the Navy to enter into multiyear contracts for F/A-18E, F/A-18F, and EA-18G aircraft.

Madam Speaker, pursuant to the budget enforcement resolution for fiscal year 2011 passed by the House of Representatives on July 1, 2010, as chairman of the House Armed Services Committee I am submitting for inclusion in the Congressional Record efforts by the committee that will achieve deficit reduction through reduction in waste, fraud, abuse, and mismanagement, promoting efficiency and reform of government, and controlling spending within Government programs authorized by this committee.

As stewards of the public funds, it is imperative that Congress support a commitment to oversight of all aspects of federal spending and to ensure that tax dollars are protected from waste, fraud and abuse and that the Federal Government is efficient in meeting the needs of our country. Members of the Armed Services Committee embrace this obligation and have taken an active role to protect America's tax dollars while ensuring our nation's defense.

Of all our efforts to ensure the best value for every taxpayer dollar, I am particularly proud of the Committee's accomplishments on defense acquisition reform during the 111th Congress. As you know, former ranking member John McHugh and I appointed a Panel on Defense Acquisition Reform in March 2009. Over the course of the subsequent 12 months, the Panel held 14 hearings examining all aspects of the defense acquisition system. The exceptional work of this panel, led by Chairman Rob Andrews and Ranking Member Mike Conaway, led directly to passage of the IMPROVE Acquisition Act of 2010, which will reform much of the defense acquisition system and potentially save taxpayers billions of dollars. This is in addition to the Weapon Systems Acquisition Reform Act of 2009, signed into law by President Obama on May 22, 2009, which has already started to save money for the American taxpayer by reforming the way the Department of Defense acquires weapon systems.

These major efforts to bring much needed reform to the defense acquisition system are in addition to all of the Committee's continual work overseeing defense budgets, programs, and spending. Also, the committee undertakes an annual national defense authorization bill that includes a number of provisions that seek to eliminate waste, fraud and abuse within the Department of Defense, and the Department of Energy for defense matters.

During the first session of the 111st Congress, the National Defense Authorization Act for Fiscal Year 2010, H.R. 2647, was signed into law on October 8, 2009. Public Law 111-84 contains a number of provisions that seek to root out fraud, waste and abuse within the Department of Defense (DOD), and also sought to enhance the effectiveness of our national security programs and policies. Examples of such legislative action include:

Limited low rate production of Future Combat Systems spin-out early- infantry brigade

combat equipment pending a technology readiness assessment, independent cost estimate and the testing of all systems constituting the equipment set in their production configuration (section 111).

Required a joint and common requirement for unmanned cargo-carrying capable unmanned aerial vehicles to avoid costly duplication of multiple service programs (section 142).

Limited the obligation of funds for Net-Enabled Command Capability (NECC) until the Department provided a roadmap for command and control systems. This provision contributed to the program being subsequently cancelled in the fiscal year 2011 budget submission (section 217).

Required the Secretary of Defense to issue policy guidance requiring the establishment of a third-party certification process for private security contractors to allow for greater governmental oversight and prevent fraud and abuse within such contracts (section 324).

Developed a comprehensive plan for improving inventory management practices for spare parts (section 328).

Directed the DOD to implement a new acquisition process to improve the speed and quality of developing or purchasing information technology (IT) goods and services for the Department (section 804).

Established life-cycle management and product support managers for major weapons systems to allow greater visibility of the operation and support costs for a weapon's entire life-cycle (section 805).

Clarified reporting requirements to ensure that cooperative agreements and grants are treated in the same manner as other contracts in Iraq and Afghanistan to improve interagency coordination and reduce waste and duplication of programs among federal agencies (section 813).

Eliminated a loop-hole that allowed contractors to overcharge the Department on certain contracts (section 814).

Extended the Commission on Wartime Contracting in Iraq and Afghanistan by one year to continue its oversight activities (section 822).

Allowed the Department to recoup award fees from companies and contractors who activities jeopardize the health and safety of government employees and service members (section 823).

Required a GAO report on the Acquisition Workforce Development Strategic Plan for the federal civilian workforce (outside of the Department of Defense) to improve the quality and training of the civilian workforce to enhance each agency's ability to tackle waste, fraud and abuse in their service contracts (section 834).

Established an entity to oversee the transition of Defense Integrated Military Human Resources System (DIMHRS) from a single Department- developed program to multiple service integrated pay and personnel systems in order to capture the benefits of the significant financial investment that had been made in the unsuccessful development of the DIMHRS system (section 932).

Codified a requirement for the Secretary of Defense to develop an annual plan for shaping and improving DOD's civilian employee workforce to improve the quality and training of DOD civilian workforce, especially in the acquisition and audit fields (section 1108).

During the second session of the 111th Congress, the Committee continued its oversight responsibilities and additional initiatives are contained in the National Defense Authorization Act for Fiscal Year 2011, which builds upon the accomplishments of the previous session. H.R. 5136 contains legislative priorities that will continue efforts to reduce waste, fraud and abuse within the Department.

Allows the Navy to budget for large capital ships over a period not to exceed three quarters of the number of years of planned ship construction. This provision would allow for more efficient use of the limited ship building funds available (section 121).

Limits the obligation of funds for the F-35 program, a $380 billion acquisition program, until specified milestones have been met by the program to help ensure the program produces a viable aircraft within cost limits. (section 141)

Directs the Secretary of Defense to create a comprehensive improvised explosive device project data base to reduce the duplicative projects that are being conducted by DOD (section 143).

Requires the Secretary of Defense to determine better ways to effectively address its research and development and procurement requirements for body armor for the individual services (section 144).

Requires separate program elements for the Joint Light Tactical Vehicle Program to provide Congress better visibility over the costs and acquisition plans for the program (section 214).

Requires the Secretary of the Army to submit a cost benefit analysis of future options for developing tank-fired munitions (section 232).

Establishes a pilot program for micro-grid components and systems for the Department of Defense to achieve economies of scale for bulk purchases of effective systems (section 243).

Requires reports from the Government Accountability Office (GAO), DOD, State Department, and US Agency for International Development on contracting in Iraq and Afghanistan. The reports are intended to strengthen management of contracts, coordination of contracts among the agencies, and oversight (sections 822 and 823).

Establishes a Joint Medical Command to improve medical care and services for service members, families and retirees and could result in significant savings for the Department of Defense's Health Affairs program (section 903).

Reduces budget transfer authority to ensure that budget requests are validated. This will help to ensure that high priority programs are funded and prevent wasteful spending for lower priority programs (section 1001).

Directs the Secretary of Defense to conduct an independent review of each working capital fund within the Department of Defense to ensure better management and oversight of these funds (section 1402)

Amends the Federal Information Security Management Act of 2002 to make it more effective and provide for continuous monitoring of IT systems (section 1701).

Requires the Department of Defense to provide an assessment of facilities that can be retrofitted with insulation to improve energy savings (section 2833).

Report language: ``Matters Relating to the Common Database for Tracking Contracts and Contractor Personnel in Iraq and Afghanistan.'' Highlights that agencies have been slow to implement the database, and that GAO and the Special Inspector General for Afghanistan Reconstruction have both stated that if the database were complete, it would be a helpful tool for performing audits, oversight, and investigations.

In addition, the House yesterday considered H.R. 6102, which amends the National Defense Authorization Act for Fiscal Year 2010, Public Law 111-84, to extend the authority of the Secretary of the Navy to enter into multiyear contracts for F/A-18E, F/A-18F-SF, and EA-18G aircraft. Passage of this bill would save the Department of the Navy an estimated $600 million in contract savings in fiscal year 2010.

Madam Speaker, as Chairman of the House Armed Services Committee I remain committed to ensuring that the committee continues its efforts to eliminate waste, fraud and abuse and advance efforts to ensure cost- effective capabilities and to control spending within the Department of Defense. I appreciate the opportunity to share the actions taken by the Committee during the 111th Congress to achieve deficit reduction through the elimination of waste, fraud, abuse, and mismanagement, promoting efficiency and reform of government, and controlling spending of programs authorized by this committee.

Madam Speaker, I move to suspend the rules and pass the bill (H.R. 6102) to amend the National Defense Authorization Act for Fiscal Year 2010 to extend the authority of the Secretary of the Navy to enter into multiyear contracts for F/A-18E, F/A-18F, and EA-18G aircraft.

I ask unanimous consent that all Members have 5 legislative days within which to revise and extend their remarks on the bill under consideration.

Madam Speaker, I yield myself such time as I may consume.

Madam Speaker, I rise today in support of H.R. 6102, a necessary amendment to section 128 of the Fiscal Year 2010 National Defense Authorization Act which granted permission for the Secretary of the Navy to enter into a multiyear procurement contract for F/A-18 series aircraft.

Madam Speaker, I mention this is a necessary amendment, and I ask the patience of the House as I briefly explain the technical issue in law which will prevent the Navy from entering into this cost-saving contract unless the House passes this bill and it is taken up in the Senate and passed before the end of this month.

In the 2010 National Defense Authorization Act, Congress granted permission to the Navy for a multiyear contract if they could meet the intent of the requirements contained in title 10 of the United States Code for projected cost savings. The authority granted the Navy one- time permission to miss the title 10 reporting timelines as long as they submitted the required reports by March of this year. The Navy subsequently reported the significant cost savings this type of contract would achieve but missed the reporting requirement by a month, due to a variety of factors.

As a result of the missing of this reporting requirement, the letter of the law prevents them from entering into this cost-savings contract. To fix this new problem, this House subsequently agreed to the exact language contained in this bill when H.R. 5136, the Fiscal Year 2011 National Defense Authorization Act, passed the House in May.

This stand-alone bill is necessary because the Senate has yet to take up the Fiscal Year 2011 National Defense Authorization Act, which means we may not have an authorization act signed into law by the end of this fiscal year.

Madam Speaker, this is not an argument about the number of strike fighters the Navy needs. That is a debate for another day. This is an argument that we know that we can save hundreds of millions of dollars by using a multiyear contract to purchase the remaining 84 aircraft that are scheduled to be built.

The majority of economic savings in a multiyear contract come from savings in the cost of materiel and equipment. As any businessman or - woman who has been successful will tell you, the more of any item you order, the lower the per-unit cost will be. In this case, a multiyear contract will allow the prime vendor, in this case the Boeing Company, to contract with their vendor supply base for the materiel and equipment for the remaining 84 aircraft all at once instead of contracting for 25 to 30 per year. They will get a much better price with the larger order and save our Nation $590 million. Madam Speaker, with just the savings on this contract alone the Navy will be able to purchase an additional Littoral Combat Ship.

Madam Speaker, an almost $600 million savings is too large a figure just to sweep under the rug. The bill that I offer today along with my cosponsor, the gentleman from Missouri (Mr. Akin), and, I must add, strongly supported by the Chief of Naval Operations, Admiral Gary Roughead, and the Secretary of the Navy, Ray Mabus, will allow the Navy to enter into this contract by the end of this month. I am assured by Assistant Secretary of the Navy Stackley that all the contracting negotiations are complete, and, as soon as this bill is passed by the House and Senate and signed into law by the President, the Navy and the Boeing Company will complete the contract.

Madam Speaker, to use a phrase popular today, this is a ``no- brainer.'' I urge my colleagues to support this bill which will result in an almost $600 million savings to the taxpayers.

I reserve the balance of my time.

Madam Speaker, I have no further requests for time, and I yield back the balance of my time.

Madam Speaker, I yield myself such time as I may consume.

I appreciate the good comments from the chairman of the Navy and Marine Corps Subcommittee, Chairman Taylor, and he has got it absolutely right. This is pretty straightforward. This is whether you want a good deal on buying something. There is a little more to it. And I would join with the many members of the Armed Services Committee, including Gene Taylor from Mississippi, and rise in support of H.R. 6102.

This legislation was included in section 122 of the Fiscal Year 2011 National Defense Authorization Act, which was passed unanimously by the subcommittee, the full committee, and by a majority of this House in May. Unfortunately, the Senate has not yet passed its version of the Fiscal Year 2011 Defense bill. It's essential we pass the authorities contained in H.R. 6102 prior to the end of fiscal year 2010, which is why the chairman and I have co-authored this stand-alone bill today.

Simply put, the legislation would ensure that the Navy can enter into a

multiyear procurement contract for F/A-18E/F/G aircraft, which would save the Navy and taxpayers almost $600 million. The Navy plans to buy 124 of these aircraft between now and 2013.

This bill would make no changes to the quantity to be procured. Rather, the Navy has a choice between buying these aircraft in four 1- year increments or spend nearly $600 million less by using one 4-year contract.

Basically you are just getting a volume discount. The Congress already gave the Navy the authority to use the multiyear contract in the fiscal year 2010 National Authorization Act. But the Department of Defense was late in submitting a required report to Congress regarding the terms of the contract. It was due in March, and the Navy submitted the report in May. Due to the Department's delay, unless we provide a one-time fix or extension of this due date, the authority to sign the multiyear contract will expire by the end of the month. This is the correction that was made by the 2011 defense authorization bill passed by the House, also captured by H.R. 6102.

It is true that the Department of Defense was slow to embrace the F/ A-18 multiyear contract, but it eventually saw the wisdom in entering into this 4-year contract for 124 of the Navy fighter planes. The House Armed Services Committee has been pushing the Navy to consider this contracting strategy for nearly 3 years. In 2008, I inserted language into the 2009 Defense Authorization Act requiring the Department of Defense to report to Congress on the potential cost savings of a multiyear contract for F/A-18s. Last year, I successfully added an amendment to the Defense Authorization Act giving the Navy the authority to enter into a multiyear contract for F/A-18s. This year, I added an amendment to the House-passed Defense Authorization Act adding eight additional F/A-18s to help address the Navy's looming fighter shortfall.

Although this bill would not have been necessary had Secretary Gates embraced this cost-savings measure from the outset, I am nonetheless pleased to see that his eleventh hour efforts to secure approval for the multiyear contract are in keeping with his well-publicized position on reducing wasteful defense spending. Likewise, I am hopeful that the Secretary will remain consistent with his new and positive stance on savings and competition as the Armed Services Committee considers additional ways in which to maximize taxpayer dollars.

In conclusion, Madam Speaker, this bill will save over half a billion dollars in taxpayer money while providing vital stability to the fine Americans who build these planes in St. Louis and across the country. I want to thank Congressman Taylor for his leadership and support on this issue, and I urge the Senate to pass this bill quickly.

I yield back the balance of my time.

Madam President, the bill H.R. 6102 is an important bill. Based on authority provided in two acts, the National Defense Authorization Act for Fiscal Year 2010 and the Department of Defense Appropriations Act for Fiscal Year 2010, the Navy and contractor team negotiated a multiyear contract for purchasing F/A-18E/F and E-18G aircraft.

The Secretary of Defense approved the Navy's request to sign such a contract. The Secretary also provided the necessary certifications required by title 10, United States Code. The independent cost estimators within the Department of Defense, the office of Cost Analysis and Program Evaluation, or CAPE, agreed with the Navy's estimate that the multiyear contract would save an estimated $590 million. Unfortunately, the Navy and the contractor team were unable to conclude negotiations by the deadlines set forth in the two acts authorizing and appropriating funds for the multiyear contract.

We should not let these savings slip through our fingers just because the Navy and contractors were not as prompt as the Congress envisioned when we passed the two acts last year. This bill would allow the Navy and the taxpayer to achieve those savings by authorizing the Navy to sign a multiyear contract for the F/A-18E/F and E-18G program despite having missed those deadlines.

I urge that the Senate pass this bill immediately.

Madam President, I ask unanimous consent that the Senate proceed to the immediate consideration of H.R. 6102, which was received from the House and is at the desk.

Madam President, I ask unanimous consent that the bill be read the third time, passed, and the motion to reconsider be laid upon the table; that any statements relating thereto be printed in the Record.