Mr. President, why is this amendment needed? Congressional guidance is needed where the Air Force's conduct on its Tanker Lease Program has, to date, been unacceptable. First, the Air Force has provided Congress inaccurate information in…
Mr. President, why is this amendment needed? Congressional guidance is needed where the Air Force's conduct on its Tanker Lease Program has, to date, been unacceptable.
First, the Air Force has provided Congress inaccurate information in an attempt to justify its original proposal to lease 100 Boeing KC- 767As. For example, Air Force Secretary Jim Roche has repeatedly advised Congress that, in the existing KC-135 fleet, ``corrosion is significant, pervasive, and represents an unacceptable risk.'' Secretary Roche has also emphasized to Congress increased operating costs in the current fleet as a basis for entering into the tanker lease. Air Force leadership has indicated that these elements create an ``urgent'' need to recapitalize the fleet. However, a Defense Science Board, DSB, task force found that the Air Force's claims of unmanageable corrosion problems and cost growth were overstated.
Remarkably, the task force recommended that corrosion not be cited as a justification for tanker recapitalization. As such, the task force concluded that ``[t]here is no compelling material or financial reason to initiate a replacement program prior to the completion of the [Analysis of Alternatives (AoA)] and the [Mobility Capabilities Study (MCS)].'' Thus, the task force jettisoned the ``dominant reason'' Secretary Roche first cited in his July 10, 2003, report to Congress as the basis for having taxpayers pay billions of dollars more for leasing tankers than they would for buying them. The Air Force's representations on this issue remains a matter of continuing investigative concern.
In another example, to comply with the original authorizing statute, the Air Force misrepresented to Congress that its proposal to lease 100 Boeing KC-767 tankers was merely an operating lease. This would have obviated the requirement that the White House obtain advance budget authority for the whole lease proposal. But, the DOD-Office of the Inspector General, OIG, and Program Analysis and Evaluation, PA&E, as well as the Congressional Budget Office, CBO, and the General Accounting Office, GAO, found that the procurement of these tankers is, in fact, a lease-purchase. In addition, facts surrounding the original lease proposal made it clear that the transaction was a lease-purchase: under the original proposal, the Air Force conceded that the DOD is ``committed to earmark[ing] an additional $2B in fiscal year 2008 and fiscal year 2009 for the purchase of aircraft covered by the multiyear program under the terms of the proposed contract'' to head off a funding spike over the Future-Years Defense Program.
Second, the DOD-OIG and the National Defense University, NDU, concluded that the Air Force's commercial item procurement strategy ``prevented any visibility into Boeing's costs and required the Air Force to use a fixed-price type contract . . . The strategy also exempted [Boeing] from the requirement to submit cost or pricing data. The strategy places the Department at high risk for paying excessive prices and precludes good fiduciary responsibility for DOD funds.'' The NDU similarly concluded that ``[i]n a sole source, monopoly commercial environment, the government is not served well with limited price data'' and suggested that the Air Force neglected its fiduciary/ stewardship responsibilities.
Third, the DOD-OIG and the NDU also concluded that the operational requirements document, ORD, for tankers was not tailored, as it should have been, to the requirements of the warfighter, but rather to closely correlate to the Boeing KC-767A. The DOD-OIG found that senior Air Force staff directed that the ORD closely correlate to the Boeing KC- 767A that was being developed for a foreign government, in anticipation of the authorizing legislation. This is particularly troubling where, according to an internal Boeing document regarding the ORD, Boeing planned to ``[e]stablish clearly defined requirements in ORD for the USAF Tanker configuration that results in an affordable solution that meets the USAF mission needs and will prevent an AOA from being conducted.'' Under the current proposal, the first 100 tankers produced will not be capable of, among other things, interoperability with Navy, Marine, or coalition assets, or simultaneously refueling more than one receiver aircraft. Rear Adm. Mark P. Fitzgerald recently suggested that in theater, such a limitation restricts the Navy's long-range striking capability and fosters a needlessly risky aerial refueling environment.
Finally, documents suggest that the Air Force allowed Boeing to modify the requirements in the ORD while it was being developed. Documents also reflect that the Air Force induced the Joint Requirements Oversight Council, JROC, into approving and validating the corrupted ORD by falsely representing that it was not tailored to a specific aircraft. This is of continuing investigative interest to the Committee.
As I've described, the history of the Air Force's attempt to recapitalize its tanker fleet has been riddled with corporate scandal, public corruption and political controversy.
This amendment attempts to make sure that any effort by the Air Force to replace its fleet of tankers is done responsibly. The amendment achieves this by doing six things.
First, the amendment seeks to have the Secretary of Defense ensure that the Air Force Secretary not acquire any aerial refueling aircraft for the Air Force, by lease or contract, either with full or open competition, until at least 60 days after the Secretary of Defense has reviewed all documentation for the acquisition, including the completed AoA, the completed aerial refueling portion of the MCS, a new, validated capabilities document and the approval of a Defense Acquisition Board. And until the Secretary of Defense has submitted to the congressional defense committees a written determination that the acquisition is in compliance with all currently applicable laws and regulations.
Among the authorities with which the acquisition decision must comply is OMB Circular A-11, revised for 2003. In other words, without substantial private-party participation, any third-party financing arrangement, particularly those structured around a ``special purpose entity,'' will be deemed to be a transaction of the government. So, under OMB Circular A-11, the transaction must be reflected in the President's budget the year that obligations arising from it are incurred. The DOD-OIG, the Congressional Budget Office, the Congressional Research Service, and others have concluded that the proposed lease of tankers is a lease-purchase--for which renegotiation of the current contract or independent authorization may be required. Therefore, under OMB Circular A-11, budget authority would be needed for the entire obligation in the first year of the lease term.
Second, not less than 45 days after the Secretary of Defense submits this
determination, the Comptroller General and the DOD-OIG shall submit to the congressional defense committees a report on whether the acquisition complies with all currently applicable laws and regulations, as well as the requirements of the amendment itself, and is consistent with the AoA and the other documentation referred to in this amendment.
Third, the acquisition by lease or contract of any aerial refueling aircraft for the Air Force beyond low-rate initial production shall be subject to (and the Secretary of Defense will comply with) the requirements of sections 2366 and 2399 of title 10, United States Code.
Fourth, before selecting the provider of integrated support for the tanker fleet, the Secretary of Defense shall perform all analysis required by law of the costs and benefits of the alternative of using Federal Government personnel and contractor personnel to provide such support. The amendment also requires the Secretary to conduct all analysis required by law of the core logistics requirements, the use of performance-based logistics and the length of the contract period. The Secretary of Defense shall then select the provider on the basis of fair, full and open competition as defined by the Office of Federal Procurement Policy Act.
Fifth, before the Secretary of Defense commits to any acquisition of aerial refueling aircraft, the Secretary shall require the manufacturer to provide, with respect to commercial items covered by the lease or contract, information on the prices at which the same or similar items have been sold that is adequate for evaluating the reasonableness of the price for those, and other commercial, items.
Finally, the Secretary of the Air Force shall contact the DOD-OIG for the review and approval of any Air Force use of non-Federal audit services for any acquisition of aerial refueling aircraft.
A few notes about the amendment.
First, this amendment opens the process to oversight by getting the DOD-OIG, the DOD-Comptroller General, and the Defense Acquisition Board, DAB, actively involved in the process. Indeed, everyone who has independently looked into how the original proposal went through had major problems with the lack of transparency. For example, DAB was completely cut out of the process. As the NDU noted, if allowed to participate, the DAB would have exercised responsibility over the selection of a preferred system alternative, acceptance of the overall acquisition strategy, and compliance with applicable policies and statutes. This amendment deals the DAB back in the process to discharge its vital function in providing comprehensive senior management review.
As another example, under this amendment, the DOD-OIG will determine, among other things, whether the data provided by the aircraft and engine manufacturer is sufficient to determine the reasonableness of the price of those items. Coupled with the amendment's requirement that the DOD-OIG approve the Air Force's use of an outside auditor, the taxpayers' interests will be protected. Furthermore, I believe that the DOD-OIG's, the NDU's, and Institute for Defense Analyses' recommendations that the Air Force Secretary negotiate the price of the engines for the tankers with the engine manufacturers need to be implemented.
The bottom line here is this. The amendment does much to inject much needed sunlight in a program whose development has been largely insulated from public scrutiny. In so doing, the amendment allows us to discharge our oversight obligations the next time around on this multi- billion dollar procurement proposal, responsibly and effectively.
Second, the amendment gives the Secretary of Defense sufficient flexibility to pursue a lease only after, among other things, an AoA is completed. The Secretary has already committed to not going forward on replacing the current fleet until an AoA (and a MCS) are completed. While giving the Secretary appropriate flexibility, the amendment requires that the Air Force go through certain hoops to make sure that any acquisition of tankers in the future, is done the right way. These hoops were loosely drawn from the recommendations of the DOD-OIG, the DSB, and the NDU, whose input the Secretary specifically asked for. I will have printed a list of findings, conclusions, and recommendations by each at the end of this statement. They must all be fully considered before any decision to recapitalize the tanker fleet is made.
Third, it generally requires the DOD and the Air Force to do nothing more than comply with currently applicable statutes, regulations and OMB Circulars. Those who looked into the Air Force's conduct regarding the original proposal agreed that the Air Force did not comply extant statutory requirements. This amendment forces the Air Force to do that.
I ask unanimous consent that the list to which I referred be printed in the Record.
Mr. President, I strongly support the passage of S. 2400, the National Defense Authorization Act for Fiscal Year 2005. This legislation funds $422.2 billion for defense programs, which is a 3.4 percent increase or $20.9 billion above the amount approved by Congress last year. I commend the bill managers, Senators Warner and Levin, for their leadership both in the Committee and on the floor these past weeks. This is a very important bill, and I am pleased we are about to proceed to final passage.
Yesterday, I had a lengthy statement on the Boeing 767 Tanker Lease Program so I will not take up more of the Senate's time now, except to say that the amendment that was included in this bill is critical because congressional guidance is needed where the Air force's conduct on its Tanker Lease Program has, to date, been unacceptable. With regard to the Boeing 767 Tanker Lease Program, the Department of Defense and the Air Force leadership have obfuscated, delayed, and withheld information from Congress and the taxpayers. Therefore, the tanker amendment attempts to make sure that any effort by the Air Force to replace its fleet of tankers is done responsibly. We should expect no less from the Air Force.
The adopted amendment does much to inject needed sunlight on a program whose development has been largely insulated from public scrutiny. It will allow us to discharge responsibly and effectively our oversight obligations the next time around on this multi-billion dollar procurement proposal.
The men and women of our nation's Armed Forces put their lives on the line every day to protect the very freedoms we as Americans hold dear. It is our obligation to provide key quality of life benefits to the members of our military. Great strides will be made by this bill towards accomplishing that goal. For example, this bill authorizes a 3.5 percent across-the-board pay raise for all military personnel. It also repeals the requirement for military members to pay subsistence charges while hospitalized, and adds $7.8 million for expanded care and services at the Walter Reed Amputee Patient Care Center. Also included in the legislation is a permanent increase in the rate of family separation allowance from $100 per month to $250 per month as well as a permanent increase in the rate of special pay for duty subject to hostile fire or imminent danger from $150 per month to $225 per month.
We continue to be increasingly reliant on the men and women of our Reserve forces and National Guard. In fact, 40 percent of all the ground troops in Iraq and Afghanistan are composed of National Guard and Reserve forces as well as nearly all of the ground forces in Kosovo, Bosnia, and the Sinai. Many of these soldiers and sailors leave behind friends, families, and careers to defend our Nation. Accordingly, it is the responsibility of policy makers to ensure that we look after the needs of these patriots. Included in the legislation is the authorization for full medical and dental examinations and requisite inoculations when reservists mobilize and demobilize as well as a new requirement for pre-separation physical examinations for members of the reserve component. This provision is critical to maintain, and in some circumstances, will help to increase the readiness of the Total Force.
The Senate also adopted an important amendment to authorize an increase in the size of our Army by 20,000. This increase is absolutely vital in our Army's ability to carry out its mission in the Global War on Terror. There is no shortage of evidence supporting an increase in Army end strength. Recently, the Army pulled 3,600 troops out of South Korea to fill critical needs in Iraq. The Army is also looking to deploy to Iraq the 11th Armored Calvary Regiment. This is an elite unit that serves in desert training exercises. In addition, for the first time in over 10 years, the Army is pulling people out of the Individual Ready Reserve to fill critical needs. The Department of Defense should be able to move troops around as needed to address critical needs, however, in this instance, we are sacrificing our readiness on the Korean
peninsula because we do not have enough soldiers serving in the Army.
After returning home for a short period of time, soldiers and Marines are already making preparations for their second tour in Iraq or Afghanistan in as many years. This is not good for morale, this is not good for retention, this is not good for readiness, and this is not good for the soldier's families. Eventually, recruitment will be seriously affected by these trends.
Additionally, the Army recently announced a new stop-loss policy. While I certainly recognize the Army's authority and necessity to issue stop loss orders, their issuance in this instance is yet another reason why we need to increase the size of the Army. For all the benefits in group cohesion that results from extended tours, the Army will be facing a serious crisis when it comes time for these soldiers to reenlist on their own accord. I am concerned about the effect that these stop-loss orders will have on the morale of our Army. While I still do not believe that we need a draft, we do need to increase the size of the Army to carry out important defense missions.
These are some aspects of this legislation that I do not support. For example, once again, this bill lent the opportunity for protectionist Buy America amendments. In a similar fashion as last year, the Senate had to beat back an amendment that sought to protect parochial interests at the cost of our defense industry and American jobs. It seems as if every year, we fight the same fight on the Senate floor.
A sound policy which the Senate has adopted in the past is that we need to provide American servicemen and women with the best equipment at the best price for the American taxpayer. This is the policy we need to continue to follow.
The international considerations of this amendment are immense. such an isolationist, go-it-alone approach would have serious consequences on our relationship with our allies. Furthermore, our country is threatened when we ignore our trade agreements. Currently, the U.S. enjoys a trade balance in defense exports of 6-to-1 in its favor with respect to Europe, and about 12-to-1 with respect to the rest of the world. We don't need protectionist measures to insulate our defense or aerospace industries. If we stumble down the road of protectionist policies, our allies will retaliate and the ability to sell U.S. equipment as a means to greater interoperability with NATO and non-NATO allies would be seriously undercut. Critical international programs, such as the Joint Strike Fighter and missile defense, would likely be terminated as our allies reassess our defense cooperative trading relationship.
On another important policy consideration, the Senate also successfully defeated an amendment aimed at canceling the upcoming BRAC round. BRAC has taken on a new significance in the War against Terror. Never has there been a time in recent memory when it has been more important not to waste money on non-essential expenditures. To continue to sustain an infrastructure that exceeds our strategic and tactical needs will make less funding available to the forces that we are relying on to destroy the international network of terrorism.
The Department of Defense has come out with very fair and reasonable criteria used to select what bases are chosen for BRAC. I have every confidence the Secretary of Defense will carry out this round of BRAC in a just and consistent manner. Sooner or later, surplus bases must be closed. Delaying or canceling BRAC would only make the process more difficult and painful than need be. The sooner the issue is addressed, the greater will be the savings that will ultimately go toward defense modernization and better pay and benefits for our hard-working service members.
I understand some of my colleagues may be concerned about the potential negative effects a base closure may have on their local economy. Previous base closure rounds have had many success stories. For example, after England Air Force Base closed in 1992, Alexandria, LA, benefited from the creation of over 1,400 jobs--nearly double the number of jobs lost. Across the U.S., about 60,000 new jobs have been created at closing military bases. At bases closed more than 2 years, nearly 75 percent of the civilian jobs have been replaced. This is not to say that base closures are easy for any community, but it does suggest that communities can and will continue to thrive.
Americans are blessed with nearly limitless freedoms and liberties. In exchange for all our country gives to us, it does not demand much in return. Yet throughout our history, millions of people have volunteered to give back to their nation through military service. The selfless acts of courage and sacrifice made by the men and women in our armed services have elevated our Nation to the greatness we enjoy today.
America is defined not by its power but by its ideals. One of the great strengths of the American public is the desire to serve a cause greater than our own self interest. All too often, our younger generations are accused of selfishness and an unwillingness to sacrifice. I disagree. I see generations of people yearning to serve and help their fellow citizens. Each year, thousands of our young Americans decide to dedicate a few years or even a full career to protecting the rights and liberties of others. They often do this with very real risks to their lives. They volunteer to do this not for profit, nor for self-promotion, but out of a sense of duty, service, and patriotism.
I urge my colleagues to support this important legislation.