I thank my chairman and mentor and friend for yielding. I want to begin by thanking Chairman Skelton and Mr. McKeon for their guidance and leadership. The two of them have run the Armed Services…
I thank my chairman and mentor and friend for yielding.
I want to begin by thanking Chairman Skelton and Mr. McKeon for their guidance and leadership. The two of them have run the Armed Services Committee as I believe Congress should run, on a factual, nonpartisan basis, and I appreciate very much the leadership they have shown. I also want to specifically thank Congressman Mike Conaway of Texas, who is the senior Republican on the panel, who served
with tremendous diligence and fortitude and made a tremendous contribution to this. I do want to thank some other people later in the debate in detail, and I certainly will.
Here is what this bill is about: The Department of Defense, even after you take away the purchase of aircraft carriers or fighter jets or what have you, is spending almost $1 billion every day of the week, every week of the year. Almost $1 billion. And sometimes the people who run that system of buying everything from software to lawn mowing services do a really good job. They provide value to the taxpayer and great tools for our servicemembers. But that's not always the case.
A few years ago the Air Force went to buy a refrigeration unit to put on a plane, and they paid $13,000 for the refrigeration unit. Less than 24 months later, they bought exactly the same refrigeration unit for the same sort of plane and paid $32,000 for the same thing. I would not want to go home, Mr. Chairman, to my spouse and explain to her I had done that kind of cost overrun buying anything for our household, and I don't want to have to explain that to the American taxpayer either.
A few years ago there was a contract let, or at least discussed, to provide refined petroleum products to truck them from Kuwait up into Iraq, and it was about a $220 million contract, and $201 million was paid for and committed before the contract was even signed. This is a $220 million contract where $201 million was paid out before there was a written contract even signed. None of us, Mr. Chairman, would buy a house that way or an automobile that way or have our kitchen remodeled that way. Neither should the taxpayers here.
When the Department of Defense buys software or hardware, when it buys information technology, from the time they think of what they need to the time they actually start to use the technology, it typically takes 81 months. Now, the way computer technologies work these days is about every 18 months, computer power doubles, which means that every 36 months or so what was a cutting-edge product is now obsolete. This would be the equivalent of using a phone that you used in 2003 as the phone you use today.
The phone that most of us used in 2003 just made phone calls, and we were happy that it did. Today the little machines that our children and others carry around can record video, can upload and download video, they can access the Internet, send text message, e-mails, act as a GPS. Imagine using a 2003 phone in 2010. That's the equivalent of what we're doing when it takes us 81 months to go from the idea of a piece of technology to actually fielding it.
This bill changes that and it has a couple of key ideas. The first key idea is that the people who are running these procurement organizations should be held to very high standards in quality and cost and time, and when they meet these high standards, they should be paid for it. They should be compensated more for doing a good job and saving money for the taxpayer. When they fail to do so, however, there should be significant consequences, and there are.
Another idea in this bill is that if a system would work well for the Marine Corps or the Air Force, then there ought to be one system, not two or three or four. And yet another idea is before we buy services, we ought to think about what we really need before we start spending money.
The second very good idea comes from Mr. Conaway, an issue he has pursued his entire time in the Congress, which is that every part of the Defense Department should be auditable, meaning that auditors and accountants ought to be able to look at the books and see if the money is being spent on things it is supposed to be spent on, the way virtually every business and organization in America is today.
The third idea of this bill is our workforce, that we not only enlarge the number of people working in our purchasing organizations-- --
I thank the chair.
Not only do we want to increase the number of people working on solving this problem, we want to increase the quality of their work. So this bill provides for education and training. It provides for diversification of our workforce. It provides for the use of the best and the brightest to get the job done.
The final aspect of this bill is to induce and provide more competition in the provision of goods and services to our Department of Defense. You know, somewhere in America today, there are probably a couple of people who are scientists on a college campus or who are working in a tool and dye shop somewhere in the country who have a much better solution to some problem than a person working for an immense defense contractor. Now, if the immense defense contractor has the best solution, that's what we ought to buy. But if the three people in the college lab or the five people in the tool and dye shop have a better idea, we need to get them into the competition so they can have their idea heard, have their proposal heard, and if it's the best one for the servicemembers and for the taxpayers, that's the one that ought to be chosen. We refer to that as broadening and diversifying the industrial base.
I'm especially gratified, Mr. Chairman, that, by my count, 43 Members of this body will have written a part of this legislation by the time it reaches final vote later this afternoon. That includes the seven members of the panel; it includes a number of members of the full committee who offered amendments in the committee voting process; and it will include a number of amendments that we will consider here today. So just as we're trying to get the best and the brightest to contribute to the process of buying a billion dollars a day worth of items, we try to get the very best ideas of the Members of this body, Democrat and Republican, on the committee and not on the committee.
So I'd like to conclude by again thanking Chairman Skelton, Ranking Member McKeon, and Congressman Conaway for their work in making this process work. I believe we have come up with a product that will do very well by our servicemembers and do very well by our taxpayers as well. I would urge careful consideration of the amendments as we go through the afternoon, and I would obviously urge a ``yes'' vote from both parties for final passage of the bill.
Mr. Chair, this bill has the potential to save $135 billion over 5 years. I'm pleased to yield 1 minute to my friend and colleague, someone who has made a career-long commitment to fiscal discipline, the majority leader of the House of Representatives, the gentleman from Maryland (Mr. Hoyer).
At this time I am pleased to yield 1 minute to a new member of the committee who clearly understands the balance Mr. Hoyer just spoke of between a strong national defense and fiscal responsibility, my friend, the gentleman from New Mexico (Mr. Heinrich).
Mr. Chairman, I am pleased now to yield 2 minutes to the gentleman from Indiana (Mr. Ellsworth), the author of a key provision in this bill regarding tax cheats and defense contracts.
Mr. Chair, at this time I yield 2 minutes to the gentlelady from New Hampshire (Ms. Shea-Porter), the gentlelady who built on the work Mr. Ellsworth just talked about to make sure that same standard applies to subcontractors.
Mr. Chairman, I am pleased to yield 2 minutes to my friend and colleague, the gentlelady from Massachusetts (Ms. Tsongas), who brought the expertise of a technical base in her district to the deliberations on this bill.
Mr. Chairman, the only thing I would like to do in general debate is thank the staff and other Members and read their names into the Record. With that, we would close general debate.
Mr. Chairman, again, I want to begin by thanking Chairman Skelton and Ranking Member McKeon for their extraordinary efforts. I want to associate myself with the remarks of Mr. Conaway in thanking the other panel members--Mr. Cooper, Mr. Ellsworth, Mr. Sestak on our side, and Mr. Coffman and Mr. Hunter on the Republican side. The panel members all worked very hard on this, and we appreciate that.
We obviously want to extend our appreciation to the incredible members of the staff of the committee and the panel. I want to thank Andrew Hunter, who did a tremendous job on this; Cathy Garman, who particularly worked very hard on the issues regarding labor relations; Jenness Simler, who was an all-star on last year's bill and once again proved her impeccable credentials; Zach Steacy; Jennifer Kohl; Paul Arcangeli, who is our brand-new staff director; Bob Simmons; Kevin Gates; Mary Kate Cunningham; Debra Wada; Megan Howard; Matt Bell, who worked very tirelessly on this in my office, and I appreciate his excellent efforts; Phil MacNaughton; and Lara Battles. And if there are any others, I apologize for that, but there was extraordinary work.
Mr. Chairman, did you want to add anything during general debate?
Mr. Chairman, again, I would like to thank the Members for their cooperation and for your stewardship of this debate.
I yield back the balance of my time.
Mr. Chairman, I rise to claim the time in opposition to the amendment, although I will not oppose the amendment.
We find it completely acceptable to yield to the minority if they have any comments. Otherwise, we support the amendment.
I yield back the balance of my time.
Mr. Chairman, I rise to claim the time in opposition to the amendment, although I do not oppose the amendment.
Mr. Chairman, I would like to thank my friend from Texas for offering this amendment. I think it makes a very significant contribution to this legislation.
What it effectively says is that competition should always be the general rule. Only when there is a compelling reason for an exception should there be one. So, for example, if there is a national emergency or there truly is only one entity that could provide a good or service, then in those exceptional circumstances, but only in those exceptional circumstances, should there be no competition before rewarding of a contract.
Again, I think the amendment is very much consistent with the purpose, spirit and letter of the bill, and I would urge my colleagues to support it.
I reserve the balance of my time.
I urge support of the amendment, and I yield back the balance of my time.
I have an amendment at the desk as the designee of the author, Mr. Hastings.
Mr. Chairman, Mr. Hastings makes a very valid amendment to this bill that acknowledges that when we want to build the best workforce and brightest workforce, we should reach for diversity of the workforce. Mr. Hastings' amendment acknowledges the fact that we are living in a global economy, and one of the principal assets of our country is the diversity of our population in understanding literally every corner of the world because our people come from every corner of the world.
Mr. Hastings's amendment directs that the Department of Defense, in its efforts under Title II of this bill, to improve the quality of our workforce, take into account the diversity of life experiences and backgrounds of those who apply for those positions. It is a very worthy amendment, entirely consistent with the purposes of the bill. I urge its adoption.
Mr. Chairman, I rise to claim the time in opposition to the amendment, although we do not oppose the amendment.
We support Mr. Hall's amendment. He has been an advocate for government transparency since his first day in this institution. This amendment is a significant stride forward for transparency.
Last year's major weapons system bill and this bill vests significant authority in the PARCA office, which is the review office or the auditing office of the Secretary of Defense. This office, under this bill, will compile annual reports judging the quality of the work by procurement organizations throughout the Department of Defense.
Mr. Hall's amendment ensures that those reports become public documents so the taxpayer can understand with great specificity the quality or lack thereof by which their tax dollars are being spent. Mr. Hall is providing a valuable tool for oversight. Future Congresses will be able to understand those reports and act efficiently in terms of their oversight responsibilities.
I think even more importantly what Mr. Hall has done is given the public an opportunity for that oversight. Some of the very best work on ferreting out wasteful government spending has come as a result of the First Amendment, from the press and from the public.
So Mr. Hall's amendment will give the press and the public, as well as the Members of this body, an opportunity to understand the quality or lack thereof of procurement activities. I commend him for that, and urge support of his amendment.
I reserve the balance of my time.
Mr. Chairman, I yield back the time in opposition and urge a ``yes'' vote.
Mr. Chairman, I claim time in opposition, although I do not oppose the amendment. Again, I would yield to the minority at any time it wishes.
I want to strongly support the gentlelady's amendment. I think there is scarcely a Member of this body who has not encountered a situation where a strong, viable business just outside the gate of a military establishment finds frustration that it cannot fairly compete for business opportunities, and the gentlelady has well described the situation.
I have never heard a constituent say they want a special deal or they want to have special rules under the competition. What I've heard them say, Mr. Chairman, is that they want a fair and even chance to compete, but they want to be able to show there is some benefit to shopping locally. I think this is true in each of the districts that we all represent.
I think the gentlelady has struck exactly the right balance between the need for true competition, so if the best deal is further away, you take it; but where there is careful and deliberate consideration of the companies and vendors that already exist in the community in which the military base is located, not only does this have the benefit of offering better value for the tax dollar, it also, I think, will build better community relations for our bases throughout the country.
So I think she has done a great service by offering this amendment.
I would urge a ``yes'' vote on it and reserve the balance of my time in opposition.
Mr. Chairman, I urge a ``yes'' vote and yield back the balance of my time.
Mr. Chairman, I rise to claim time in opposition, although I do not oppose the amendment.
Mr. Chairman, I would like to thank the gentlelady for offering this amendment and for her fierce advocacy for the people not only of the Milwaukee area, but small businesses across the country.
The gentlelady is correct that one of the underlying ideas in this bill is that defense procurement organizations within the Department of Defense will be evaluated by measurements of how well they are doing their job. They in turn will measure contractors, prime contractors, on how well they are doing their job for the servicemember and for the taxpayer.
One of the criteria by which the procurement organization should be measured and by which the prime contractors should be measured is their compliance with the law with respect to inclusion of small businesses. That is what the gentlelady's amendment does. We strive to include small businesses not only because we acknowledge on both sides of the aisle that small businesses are the economic generator of three- quarters of the private sector jobs created in our country, but also because we understand that competition that is engendered by the inclusion of more small businesses improves the quality and value of the contracting process, it improves the quality of what we're buying for the servicemembers and their families, and value for the taxpayer as well.
So the gentlelady's amendment, I believe, institutionalizes the practice of evaluating inclusion of small business competition, not in lieu of a better deal, but to create a better deal for the servicemembers and for the taxpayer. So I thank her very much for her contribution to this bill.
I would urge a ``yes'' vote in favor of her amendment, and I reserve the balance of my time in opposition.
I yield back the balance of my time in opposition and urge a ``yes'' vote.
Mr. Chairman, I rise to claim time in opposition, although I am not opposed to the amendment.
Mr. Chairman, I would like to thank my friend from Connecticut for offering this very important amendment which clarifies the legislation and which, I think, drives home a very important point.
He has been very focused, as many of us have, on protecting and on expanding the industrial base of our country to create jobs and national security. He tells the story of his visit to the firm in Connecticut that has six or seven employees. That is precisely the firm that title IV of this bill wants the Department of Defense to reach out to, not simply because we understand the job creation benefits of it but because we understand the ingenuity and the creativity of small firms like the ones that Mr. Murphy just mentioned. Some of the very best solutions--engineering solutions, software solutions, logistical solutions--have come from very small organizations that are agile enough and creative enough to solve very big problems.
In his careful reading of this bill, Mr. Murphy realized that there was some question as to whether or not that outreach would occur to firms based in the United States or in Canada under the terms of the statute to which he referred, and I think he has made a very important contribution in making sure that that outreach is targeted to those firms as this is not only a mechanism for creating jobs in our country and for assisting the national security of our country but for inviting ingenuity and competition into the defense procurement process, therefore, saving the taxpayers money.
So I very much appreciate his efforts in bringing forth this amendment, and I would urge its adoption.
I reserve the balance of my time.
I urge a ``yes'' vote on the amendment, and I yield back the balance of my time in opposition.
I yield myself such time as I may consume.
(Mr. ANDREWS asked and was given permission to revise and extend his remarks.)
Mr. Chairman, I would like to thank Mr. Quigley for offering this amendment, as well as Ms. Giffords and Mr. Bartlett for their joint authorship of this amendment.
As I stated earlier, the basic mechanism in this bill is to provide performance criteria for the purchasing organizations within the Department of Defense. This amendment says that one criterion may be energy-efficiency standards in the purchasing.
Now, what does this mean?
It means that the procurement organization should get the very best deal from the point of view of the servicemember as well as of the taxpayer and that one of the factors that should be taken into account is energy efficiency. For example, if under this bill the procurement organization is purchasing landscaping services and if, all other things being equal for the quality of the landscaping services and the price, one of the organizations uses more energy-efficient lawnmowers or other gardening machines, that purchase would be favored under this mechanism to encourage but not to require energy efficiency.
This goes to a much broader question in our country that obviously involves the fact that we are buying nearly $300 billion a year worth of imported oil from countries around the world which may or may not be friendly to us.
The largest consumer of energy in the United States' economy is the Department of Defense. Commendably, the Department under Republican and Democratic administrations has adopted, as a matter of policy, a methodical increase in the amount of renewable energy the Department is using. One of the ways it can reduce consumption toward that goal is by implementing energy efficiency.
The amendment the gentleman from Illinois is offering is entirely consistent with that purpose because what it does is integrates into the procurement decisionmaking process a set of ideas which says that the procurement organization will look at the energy-efficiency ideas of a given competitor for a given contract.
We support this amendment because we believe it will save the taxpayers money, that it will add value to our efforts to protect the environment, and that it will provide inducements to the ability to promote renewable energy, so we would urge a ``yes'' vote.
Mr. Chairman, I yield the balance of my time to one of the coauthors of the amendment, the gentleman from Maryland (Mr. Bartlett).
Mr. Chairman, I rise in opposition, although I do not intend to oppose the amendment.
Mr. Chairman, I, in fact, support this amendment. I think it not only adds important tools to the bill before the body today but to the law that was enacted last year.
Both today's bill and last year's law require the Department of Defense to make early decisions about whether a product or service it is buying or a system that it is buying is on track or not. If it is not on track, the idea is to either get it on track or to not buy it. This is how we can eliminate some of the $296 billion in cost overruns in weapons systems that the Government Accountability Office found in its report of 2 years ago.
What Mr. Quigley has done is to say that the cost estimators on whom we are relying need to be truly independent and competent. If that estimator has a vested interest in buying the product or building the system, then he or she is not going to give us an accurate or honest judgment about whether to go forward. So this amendment assures that there will be both independence and competence in those cost estimators. I think it's an excellent addition to the bill.
I reserve the balance of my time.
Mr. Chairman, I urge a ``yes'' vote, and I yield back the balance of my time.
Will the gentleman yield?
I support the amendment. I also share my friend the ranking member's concerns. I think the amendment addresses them in two ways. One is that the language of the amendment is quite flexible, that as long as there is transparency and adherence to high quality, the department is not restricted from these relationships. It simply has to be more careful about them. And secondly, obviously the committee has continuing oversight over this issue. The gentleman has my assurances that if we see an undue restriction on access to talent, then we are in a position to take appropriate action to correct that problem.
I thank my friend for yielding.
I would like to thank our friend from Tennessee for his comments, which we embrace. I think one of the purposes of Mr. Schrader's amendment, which we just adopted, was to try to address that concern, and we thank him for his support.
I want to commend and thank my friend from Virginia for his excellent amendment. We have tried to establish in this bill the idea that the Defense Department should coordinate the industrial base and broaden it so the servicemembers and taxpayers get a better deal and we invite ingenuity and innovation. Mr. Connolly has made sure that our good intentions in this bill will become a good reality. By the establishment of the council that Mr. Connolly establishes, there will be a group that oversees the implementation of the ideas that we have.
So I think it strengthens the bill considerably. I commend Mr. Connolly for being a fierce advocate for his district and his area, which is so intimately involved in solving this problem. I thank him for his contribution and urge a ``yes'' vote.
Mr. Chairman, I rise to claim the time in opposition to the amendment, although I am not opposed to the amendment.
I thank my friend from Mississippi for offering this very well-thought-out amendment.
One of the key ideas of this bill is that we have a high-quality, well-trained acquisition workforce. Mr. Childers's amendment makes sure that that workforce is well trained in a key area, which is understanding that a contract does not simply affect the firm that wins the contract and the employees that work for that firm. It affects the entire region for which a contract is awarded.
Now, again, nothing in Mr. Childers's amendment would divert the procurement organizations away from best value for the taxpayer dollar. But what he does suggest is that when one defines the concept of value, it's broader than just the four corners of the contract being considered. The area he represents so ably is one where the economy really pivots on the presence or absence of military contracts, and in his efforts to try to make sure that his region prospers, I know that he wants to be sure, as each of us does, that there is fair consideration of the regional and community economic impact of a contracting decision.
I think the amendment that he has offered, which goes to the training of decision-makers, is entirely appropriate in that regard. We appreciate his contribution to the bill, and I would encourage the Members to vote ``yes.''
Mr. Chairman, I reserve the balance of my time.
Mr. Chairman, I rise to claim the time in opposition to the amendment, although I do not oppose it.
Mr. Chairman, I rise in strong support of this amendment, which is almost as striking in its common sense as it is striking that there is any legal issue as to whether a canon should be done. There is such a legal issue, unfortunately, and the gentlewoman's amendment clears that legal issue up.
Here is the situation her amendment contemplates: The Defense Department lets a contract to a vendor. The vendor is performing the contract. Because of a new efficiency or a drop in the price of a material, let's say that the price of food or gasoline that the vendor is using drops dramatically, the vendor offers to continue the contract at a lower price. There are rules which today would preclude the Defense Department from taking advantage of that offer.
What Mrs. Dahlkemper's amendment says is that so long as the quality is preserved and so long as there at least is a 15 percent savings at a minimum and all other rules are complied with that the Defense Department can take advantage of that offer. Any business in this country would jump at that opportunity. And the gentlewoman has offered an amendment which makes an awful lot of sense, which will let the Department of Defense operate on those sound business principles.
Again, her amendment does not provide for any deviation from the rules of conflict of interest or legal procedure, but it says if there is an opportunity to achieve at least a 15-percent reduction and all other things are appropriate, then we should achieve that reduction. This makes eminent common sense.
We thank her for offering the amendment. I urge a ``yes'' vote.
I yield back the balance of my time.
Mr. Chairman, I rise to claim time in opposition to the amendment, although I do not oppose the amendment.
Mr. Chairman, I commend the gentlemen from North Carolina and from Maine for offering the amendment and support it.
The general rule under the law is that the Defense Department must buy goods and services made in the United States. There's an exception to that rule which deals with vouchers, essentially, where if there's a voucher given to a servicemember to buy certain goods, there's an exception to that.
The gentlemen who are offering this amendment are interested in finding out whether that exception could be accomplished in a way that would protect the choice and quality for the servicemembers while promoting the purchase of American goods and services. I think that inquiring into that is entirely appropriate.
At this time I would like to yield to my friend, the ranking member, the gentleman from Texas (Mr. Conaway), for his comments on this.
Mr. Chairman, we look forward to reviewing the results of the GAO study so we can work with all the gentlemen to achieve the objective they have set forth.
I reserve the balance of my time.
Mr. Chairman, we would urge a ``yes'' vote, and I yield back the balance of my time in opposition.
Mr. Chairman, I'd like to thank my friends from Florida, Mr. Grayson and Mr. Hastings, for offering this amendment. It makes eminently good sense. It says this: if a procurement officer decides to buy the
product that isn't the least expensive, a couple of rules apply. First of all, price has to be at least equal to the greatest factor that's being used. It can't be any less than equal. And if it is less than equal, the procurement officer has to explain why.
Now this makes pretty good sense. I think most people would agree that it's not always true that the least expensive item is the best. But if you think a more expensive item is the best, then you ought to explain why. I think most of us would want that in the way we manage our household budgets, our businesses, our towns, our local school districts.
Mr. Grayson, based upon his years of experience in this field, has written an amendment that carries that idea forward. I think it's very worthy. Again, I think it strikes the right balance between flexibility for the procurement officer to make a decision that he or she thinks is the right one, but justification to the public as to why we're not spending the least amount of money on something that we're buying. I think most of our constituents would want us to presume that we should get the best price available; and only if it can be demonstrated that the best price available is not the best value available, should we make a different decision. So I think this amendment makes very, very good sense. I would urge its adoption.
I would now like to yield such time as he may consume to my friend from Pennsylvania (Mr. Platts).
Mr. Chairman, I would urge a ``yes'' vote on the amendment. I do share the concerns of my friend from Pennsylvania. I believe that the amendment that's in front of us here, I think the language of the amendment addresses the concerns the gentleman raises. I think it provides sufficient flexibility. I commend the gentleman for offering it.
I urge a ``yes'' vote and yield back the balance of my time.
Mr. Speaker, I would urge Members to vote ``yes'' on this motion to recommit because the language of the recommit does what the gentleman's argument doesn't do.
The language of this argument says we should have full, accurate transparency about the cost of the new health care bill as it applies to defense contracts. In other words, we ought to know the facts. We agree with that. With all of the respect of the gentleman's argument, the facts were kind of missing. Here is what the facts are:
As to the report that he references from CMS, I would take due note of the fact that the ``M'' in CMS means ``Medicare.'' Here is what the report said:
Before the President signed the health care law, the Medicare Trust Fund was due to run out of money in 2017. Because the President signed the health care law, the Medicare Trust Fund will live for at least 12 more years.
The fact is that the report said that future forecasts of health care costs are, to quote the report: only a prediction, difficult to ascertain, subject to interpretation.
Well, here are some interpretations that the American public are beginning to see: When sons and daughters under the age of 26 years old can be covered on their parents' policies, the American people support that. When people cannot be turned away from buying insurance or cannot have their premiums raised because they had breast cancer or asthma, the American people support that. When an insurance company cannot cancel people's policies when they're on the way to the operating rooms after they've paid premiums for years, the American people support that.
We embrace and support the idea of learning the facts about the health care bill. That's what the amendment says. We support the idea of speaking the truth about the health care bill. That's what all Members of the House should do. That's what the American people are entitled to do.
Vote ``yes'' on the motion to recommit, and vote ``yes'' on the underlying bipartisan bill.