[Congressional Record Volume 142, Number 70 (Friday, May 17, 1996)]
[Senate]
[Pages S5298-S5299]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




  AUTHORIZATION OF MULTIYEAR CONTRACTING FOR THE C-17 AIRCRAFT PROGRAM

  Mr. LOTT. Mr. President, I now ask unanimous consent that the Senate 
proceed to the immediate consideration of Calendar No. 400, S. 1710.
  The PRESIDING OFFICER. The clerk will report.
  The bill clerk read as follows:

       A bill (S. 1710) to authorize multiyear contracting for the 
     C-17 aircraft program, and for other purposes.

  The PRESIDING OFFICER. Is there objection to the immediate 
consideration of the bill?
  There being no objection, the Senate proceeded to consider the bill.
  Mr. DOLE. Mr. President, I am pleased to bring before the Senate 
today legislation which authorizes the Air Force to enter into a 
multiyear contract for the procurement of the C-17 globemaster III, the 
world's newest and finest strategic air lifter.
  While the legislation before us is simple--authorizing a multiyear 
contract, it is critically important. In short, it will allow the Air 
Force to more rapidly improve its ability to project U.S. power 
anywhere in the world. In this time of shrinking budgets and growing 
demands, we must set priorities for modernization of our military 
forces--C-17 is for me a top priority.
  As my colleagues recall, earlier this year, President Clinton 
attempted to ram through the Congress a 7-year multiyear contract 
authority. At the time, Senator Thurmond and I supported the idea of a 
multiyear procurement authorization, but we thought the proposal could 
be improved in ways which would benefit the taxpayer, the Air Force, 
and the skilled workers who build the aircraft. That is exactly what 
the committee has done. Under the legislation before us, the 
procurement of the C-17 will be expedited, resulting in greater savings 
for the American taxpayer, increased capabilities for the Air Force, 
and greater efficiency and stability for the industrial base.
  The Armed Services Committee recently completed markup of its fiscal 
year 1997 defense authorization bill. To take immediate advantage of 
the opportunities created by the multiyear procurement legislation 
before us, the committee was able to add $249 million in the fiscal 
year 1997 bill to procure an additional aircraft this year and to 
provide long-lead funding for two more aircraft in fiscal year 1998. As 
a result, the Air Force will be on a path which will move the last five 
aircraft of the contract up to the first 3 years, saving the taxpayer 
an additional $300 million and creating a more efficient production 
schedule.

  Mr. President, Army missions are up 300 percent since the end of the 
cold war, yet the number of troops forward-deployed is significantly 
down. Our force is smaller and is Conus based. Now, more than ever, 
sufficient strategic air lift is absolutely essential for the success 
of our military. However, even with the Pentagon's planned buy of 120 
C-17's, the Department of Defense will be unable to meet its minimum 
strategic airlift requirement of 49.4 million-ton-miles-per-day between 
fiscal 1997 and fiscal 2004. By expediting the procurement of the C-17, 
we are helping to fill that void. In my view, it is clear that America 
will need more than 120 C-17's to meet our needs.
  Mr. President, clearly the legislation before us is both critical to 
the needs of the Department of Defense and good for the American 
taxpayer. I commend the Armed Services Committee for their efforts in 
crafting this legislation and look forward to its passage.
  Mr. LOTT. Mr. President, I ask unanimous consent that the bill be 
deemed read a third time, passed, the motion to reconsider be laid upon 
the table, and that any statements related to the bill be placed at the 
appropriate place in the Record.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The bill (S. 1710) was deemed read the third time and passed, as 
follows:

                                S. 1710

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

[[Page S5299]]

     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 
     2306(b)(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.

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