[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 1710 Referred in House (RFH)]

  2d Session
                                S. 1710


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                    IN THE HOUSE OF REPRESENTATIVES

                              May 20, 1996

             Referred to the Committee on National Security

_______________________________________________________________________

                                 AN ACT


 
 To authorize multiyear contracting for the C-17 aircraft program, and 
                          for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. MULTIYEAR CONTRACTING AUTHORITY FOR THE C-17 AIRCRAFT 
              PROGRAM.

    (a) Multiyear Contracts Authorized.--The Secretary of the Air Force 
may, pursuant to section 2306b of title 10, United States Code (except 
as provided in subsection (b)(1)), enter into one or more multiyear 
contracts for the procurement of not more than a total of 80 C-17 
aircraft.
    (b) Contract Period.--(1) Notwithstanding section 2306b(k) of title 
10, United States Code, the period covered by a contract entered into 
on a multiyear basis under the authority of subsection (a) may exceed 
five years, but may not exceed seven years.
    (2) Paragraph (1) shall not be construed as prohibiting the 
Secretary of the Air Force from entering into a multiyear contract for 
a period of less than seven years. In determining to do so, the 
Secretary shall consider whether--
            (A) sufficient funding is provided for in the future-years 
        defense program for procurement, within the shorter period, of 
        the total number of aircraft to be procured (within the number 
        set forth in subsection (a)); and
            (B) the contractor is capable of delivering that total 
        number of aircraft within the shorter period.
    (c) Option To Convert to One-Year Procurements.--Each multiyear 
contract for the procurement of C-17 aircraft authorized by subsection 
(a) shall include a clause that permits the Secretary of the Air 
Force--
            (1) to terminate the contract as of September 30, 1998, 
        without a modification in the price of each aircraft and 
        without incurring any obligation to pay the contractor 
        termination costs; and
            (2) to then enter into follow-on one-year contracts with 
        the contractor for the procurement of C-17 aircraft (within the 
        total number of aircraft authorized under subsection (a)) at a 
        negotiated price that is not to exceed the price that is 
        negotiated before September 30, 1998, for the annual production 
        contract for the C-17 aircraft in lot VIII and subsequent lots.

            Passed the Senate May 17, 1996.

            Attest:

                                             KELLY J. JOHNSTON,

                                                             Secretary.