Madam President, I ask unanimous consent to call up my amendment No. 1767. Madam President, I ask unanimous consent that the reading of the amendment be dispensed with. Madam President, I wish to begin by thanking my colleague from…
Madam President, I ask unanimous consent to call up my amendment No. 1767.
Madam President, I ask unanimous consent that the reading of the amendment be dispensed with.
Madam President, I wish to begin by thanking my colleague from Connecticut and my friend, Joe Lieberman. We have worked together on so many issues and so well that I find this to be an odd set of circumstances today where we have a difference of opinion on this issue. But even here, we have worked collegially to call up our respective amendments in a timely manner.
I regret the order of offering the amendments was changed because I know the Senator had speakers on his approach to this issue, as I had. I wish their voices could be heard. I am grateful Senator Levin will be speaking shortly in support of my approach. I think the fact he is chairman of the Armed Services Committee lends some credence to our approach. I thank the Senator for his cooperation and courtesy. I so much enjoy, as with Senator McCain as well, our working together on so many different issues. I thank Senator McCain for his courtesy in trying to respect the time of the various Members who planned their schedules and planned to speak here. I thank Senator Lieberman for all that. We do, however, have a difference of opinion on this important issue.
This amendment will restore funding for Marine Corps helicopters and the Joint Strike Fighter management service reserves. Let me repeat for my colleagues who are concerned about funding for the Marine Corps helicopters or the number of Joint Strike Fighters which will be purchased, my amendment deals with those concerns. So many of the very appropriate comments Senator Lieberman was making about the Marine Corps, about the helicopters, about the testimony of the services in favor of those helicopters, those are no longer relevant. Under my amendment, the helicopters are provided for, so many of his comments about the need for Joint Strike Fighters and the number of tails, the number of planes, those comments are no longer relevant. We have full funding for the number of Joint Strike Fighters.
I know this debate has proceeded rapidly, it has changed rapidly, but all of that commentary about helicopters and the number of Joint Strike Fighters has been taken care of by my amendment and is no longer relevant to the consideration of the underlying issue, which is the importance of competition and how best to go about saving money and procuring engines for this vitally important program.
I should also say that a number of statements were read about the President and his points of view. I think it is important for my colleagues who care about the comments from the President's staff about a recommendation of a veto to point out that in those comments, they were speaking directly to the number of planes, which has now been taken care of. That has now been addressed. They were not referring to the underlying opinion of the GAO and the whole fiscal aspect of this, which is a legitimate debate, but those comments and concerns were not raised as legitimate grounds for a veto threat by the President of the United States. So that has been taken care of as well.
What is on the table is preserving competition in the Joint Strike Fighter Engine Program. My friend and colleague's amendment No. 1627 strikes funding for this commonsense program. I wish to set the record straight by preserving this competition.
The Joint strike Fighter is a massive acquisition program. By 2030, this fighter will make up the vast majority of our tactical air fleet. Investing now to ensure competition over the life of the JSF is good government and sound management practice. Understanding
this, my colleagues in the Armed Services Committee prudently included $439 million to continue development of the competitive engine.
As most of our colleagues know, I am very concerned with our Nation's growing deficit. I have consistently opposed bills that spend too much, including the omnibus spending bill and the recent budget. I have supported amendments to strike wasteful spending.
I understand the importance of restraint, and I would not be here today if I did not truly believe this competitive engine strategy will save the taxpayers money.
I am not alone in this view. In 1996, Congress initiated the F-136 competitive engine program because we knew then, as we still know now, competition results in lower cost, improved performance, increased reliability, and greater contractor responsiveness. Since then, Congress has maintained unwavering support for this program for 13 consecutive years.
I want to be clear that there was never a competition for the GSF engine development. I heard the word ``competition'' used repeatedly by my friend and colleague. I hold in my hand copies of the contracts, the contracts for the engine that has just been alleged to have been let competitively. The first contract was on January 23, 1997, to Pratt & Whitney, in the sum of $804 million. It sets in bold print ``this contract was not competitively procured.''
Let me repeat that in plain English. This contract for the engine program about which it was just stated repeatedly that there was a competition, was, in fact, not competitively let. It is in plain English. A Federal Government document refutes that contention.
The second contract, dated October 26, 2001, once again to Pratt & Whitney, in the sum of $4,830,000--this contract was not competitively procured. There was no competition for the engine program. It is a matter of public record in plain black and white. If you care about competition, you will support my approach to dealing with this issue.
This is an engine program whose total cost will top $100 billion. There is simply no justification for awarding a sole-source noncompetitive contract in this area. The General Accounting Office has consistently supported funding a second engine as a fiscally responsible approach that would yield long-term cost savings for taxpayers.
On May 20 of this year, the GAO reaffirmed this view when discussing the cost to complete the second engine and stated:
A competitive strategy has the potential for savings equal
to or exceeding the amount across the life cycle of the
engine. Prior experience indicates it is reasonable to assume
that competition on the GSF engine program could yield
savings of at least as much. As a result, we remain confident
the competitive pressures could yield enough savings to
offset the costs for competition over the GFS program's life.
GAO went on to elaborate on the nonfinancial benefits of procuring a second amendment:
Our prior work, along with studies by the Department of
Defense and others, indicate there are a number of
nonfinancial benefits that may result from competition,
including better performance, increased reliability, and
improved contractor responsiveness.
The long history in the Department of Defense is that when you award sole-sourced, noncompetitive contracts to a single provider, costs go up, responsiveness goes down, the taxpayers suffer. That is what my amendment will avoid.
Further, in light of the increased investment Secretary Gates and the administration have chosen to make in the GSF program, limiting the Department of Defense to a single source has implications for our readiness and strategic posture. If we have problems with the primary engine, we will have no alternative. There will be no second supplier with any ability to produce a comparable engine. Production delays or engine failures could prove catastrophic for an already thin tactical air fleet.
Anybody who thinks that a large contract to a single vendor without competition--again I reiterate, as the contracts specifically indicate, they were not competitively bid--anyone who thinks that is a good way for the government to do business should support the Lieberman amendment.
Some may very well argue that my amendment constitutes business as usual or is, in fact, wasteful, but many of these individuals have, in fact, supported this approach as good public policy in the past. They were right then. I am right today.
We need to keep the primary contractors honest and the only way to do that is through competition. There was no competition in the award of these contracts. We now maintain that competition through the adoption of this amendment.
There were several other Senators who were intending to speak on behalf of this amendment. Because of the change in schedule, they may not be able to be with us. We will have to wait and see about that, but again I thank Senator McCain for his courtesy in attempting to ensure that they could speak. I know there were some in opposition to my approach who wanted to speak as well. Senator Kennedy cosponsors my amendment and is fully supportive. Because of health care concerns he could not be here today. I do wish to share with our colleagues and for the record a statement he issued on June 24, as a part of the Armed Services Committee markup on this issue, in support of my approach.
Senator Kennedy, a longstanding member of the Armed Services Committee:
For the fourth year in a row, the Department of Defense
continues to ignore the will of the Congress on the
production of an alternate Joint Strike Fighter engine in
order to reduce risk to our forces, protect against any cost
overruns, preserve the U.S. industrial base and support our
international partners.
That is what our amendment is designed to accomplish and that is why Senator Kennedy supports it. He goes on to say:
I remember well the ``Great Engine Wars'' of the 1980s, and
the development of an acquisition strategy, considered
controversial at the time, that ultimately delivered stronger
and more cost-effective fighter aircraft to the nation. That
issue began a decade earlier, when the decision to sole-
source the F-15's F100 engine resulted in rushed development
to meet program timelines, inadequate responses to program
shortfalls, and mounting frustration over our inability to
address these discrepancies without additional resources.
Ultimately, the Air Force, the Navy and Congress agreed that
the short-term and long-term benefits of industrial
competition would meet these challenges and deliver results.
That experience is as relevant today as it was then,
because we face a similar challenge. The Joint Strike Fighter
is one of the largest military aircraft programs in history,
with $100 billion allocated for engines alone. In light of
recent defense acquisition challenges and the growing
``fighter gap'' in our air forces, these decisions could not
be more important, or their results more far-reaching.
Critics emphasize the short-term cost savings of the sole-
source procurement strategy and cite reports showing
different timelines to re-coup program costs. But dramatic
long-term opportunity costs are missing from this debate, and
are conspicuous in their absence.
That is what the GAO was referring to in the study I cited before.
Competition for the Joint Strike Fighter engine has
compelling advantages and avoids past pitfalls. Dual-sourcing
will build vital operational redundancy into the fleet,
avoiding a single point of failure for the engine
malfunctions and spare parts shortages experienced in the
past with other fleet-wide groundings. Competition delivers
an inherent incentive for manufacturers to absorb and contain
cost growth, even as it encourages responsiveness by
contractors, continuous product improvement, and innovation.
All of these factors are less evident in sole-source
contracts.
The alternate engine program appropriately diversifies
capability and capacity across the U.S. industrial base and
ensures that sustained production, maintenance, and
availability of critical components are not concentrated in a
single provider. In addition, the F136 alternate engine
program considers the sustained participation of key
international partners and stakeholders, especially the
United Kingdom, and Australia, Canada, Denmark, Italy, the
Netherlands, Norway, and Turkey as well. Their commitment is
important to the future of the Joint Strike Fighter program
and our basic security relationships.
For these reasons, I strongly support the addition of $438
million in the FY 2010 National Defense Authorization Act to
sustain the F136 alternate Joint Strike Fighter engine
program.
Those are the words of Senator Kennedy.
In conclusion and by way of summary, the Marine Corps helicopter issue has been taken care of. That is no longer an issue. We fully provide for that.
Allegations about the number of procurements for the Joint Strike Fighters has been taken care of. That is no longer an issue.
Statements by the President's staff with regard to a possible Presidential
veto related to the potential reduction in the number of fighters, that issue has been taken care of.
As I mentioned, the contracts for the engines themselves, in black and white, given to Pratt & Whitney on the dates in these legal documents, say very clearly, and I quote once again: ``This contract was not competitively procured.''
That is a matter of public record. This debate is about competition, the benefits of competition. I support them. That is why I urge my colleagues to support our amendment.
I yield the floor.
How much time remains on our side, Madam President?
Madam President, perhaps I should quit while I am ahead following those very generous remarks by my friend and colleague from Arizona. I am compelled, however, to save a few minutes of my time for Senator Levin, who is the chairman of the Armed Services Committee and is supportive of our amendment, for him to offer a few additional observations. I do want to close with a few closing remarks.
First, I thank Senator Kennedy, who could not be with us today but who is a strong supporter of our amendment, and Senators Kerry, Voinovich, Brown, and Senator Levin I have mentioned, who spoke in support of this amendment. I thank them.
I do want to address a couple of points that have been raised, first with regard to the issue of the Marine Corps helicopters. Again, for those who care about the helicopters, for those who care about supporting the Marine Corps, we have taken care of that issue. The Marine helicopters will be fully funded. So that is off the table. For the assertions made in the reduction of the number of Joint Strike Fighters to be procured, we fully funded the administration's request, and there will be no reduction because of my amendment. We have taken care of that issue. That is no longer relevant.
The President's staff recommending a veto was premised on the presumption that there would be a reduction in the number of planes purchased. Since that has been taken care of, the veto threat is no longer relevant. It has been taken care of.
There have been comments made about the C-130 procurement. I, too, support the C-130 procurement. We have fully funded--fully funded--the administration's request. It was passed in the supplemental. The money is there, in recognition of that. That is why the House of Representatives fully eliminated the account we are using to fund the second engine.
For those who care about the C-130, as do I--and I thought Senator McCain's comments were very appropriate about the need for that important plane--that has been fully funded. In fact, what has been proposed in our authorization is a duplicate funding, a double funding. So for those of us who care about duplication, this, in fact, would save the taxpayers money, which I understand is one of the premises underlying the Lieberman amendment. Accepting their premise, this is a fully appropriate funding source.
Finally, I would like to address this issue of competition once again. It has been asserted and alleged over and over that there was a competition, that the competition was run by Pratt & Whitney, that there was competition, competition, competition. I hold in my hands copies of the contracts given to Pratt & Whitney. I hold them right here. Cover page, January 23, 1997, Pratt & Whitney, $804 million, et cetera, in bold type:
This contract was not competitively procured.
Let me repeat that:
This contract was not competitively procured.
The second contract is for the engine dated October 26, 2001, Pratt & Whitney, in this case $4.8 billion. Once again, in bold type--bold type--so people can read it and understand:
This contract was not competitively procured.
It could not be any plainer than that for those of us who can read these documents. There was not a competition with regard to this engine. It is a sole-source contract.
Therein lies the issue. It is not about helicopters. It is not about the number of planes that are procured. It is not about the C-130. All of those things have been taken care of. It is about your belief that competition is in the best interest of the taxpayers--and quality. If you believe that, you support this amendment. If you believe single- source, noncompetitively bid contracts, such as these, are in the best interests of quality and protecting the taxpayers, then you will support Senator Lieberman's amendment. That is what this is all about.
Since I don't have much time--how much time do I have, Madam President?
Madam President, I don't want to exhaust it all. I quoted at length in my previous comments from the General Accounting Office, and there are a variety of studies. It is asserted that GAO did not offer much reasoning for their comments. I point out once again that they state very clearly the savings from this competition; the second engine has the potential to be equal to or exceeding its cost. Prior experience, they indicate, points to this and that they are confident competitive pressures could yield these kinds of savings. The GAO is well on record. I understand there is a dispute from other entities and other studies, but that is the GAO's opinion.
This all comes down to competition, whether my colleagues embrace it, in which case they support our amendment, or if they do not--and I suppose there may be legitimate arguments in favor of noncompetitive bidding--they will support the other amendment.
I yield the floor.
Absolutely.
Madam President, unless my friend and colleague from Arizona has something new and shocking to say, I am going to yield back the remainder of my time.
First, I thank both of my colleagues for the tenor of the debate. We have some honest differences of opinion. I find myself much more comfortable working with my colleague, Senator Lieberman, in a variety of capacities. Senator McCain and I are one of a hearty band of a few who come to the floor in agreement to oppose wasteful measures. I look forward to resuming that partnership in the future even though we have a respectful difference of opinion today. I only wish all our debates could be as focused and collegial as this has been.
Having said that, I thank my colleagues. Unless Chairman Levin has anything additional to say, I yield back the remainder of my time.