[Congressional Record Volume 142, Number 138 (Monday, September 30, 1996)]
[Senate]
[Pages S12001-S12003]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                          AMENDMENTS SUBMITTED

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              THE PENSION CHOICE AND SECURITY ACT OF 1996

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                       McCAIN AMENDMENT NO. 5420

  (Ordered to lie on the table.)
  Mr. McCAIN submitted an amendment intended to be proposed by him to 
the bill (H.R. 4000) to amend title I of the Employee Retirement Income 
Security Act of 1974 and the Internal Revenue Code of 1986 to promote 
availability of private pensions upon retirement; as follows:

       At the end, add the following:
                    TITLE II--DEPOT-LEVEL ACTIVITIES

     SEC. 201. DEPARTMENT OF DEFENSE PERFORMANCE OF CORE LOGISTICS 
                   FUNCTIONS.

       Section 2464(a) of title 10, United States Code is amended 
     by striking out paragraph (2) and inserting in lieu thereof 
     the following:
       ``(2) The Secretary of Defense shall maintain within the 
     Department of Defense those logistics activities and 
     capabilities that are necessary to provide the logistics 
     capability described in paragraph (1). The logistics 
     activities and capabilities maintained under this paragraph 
     shall include all personnel, equipment, and facilities that 
     are necessary to maintain and repair the weapon systems and 
     other military equipment identified under paragraph (3).
       ``(3) The Secretary of Defense, in consultation with the 
     Joint Chiefs of Staff, shall identify the weapon systems and 
     other military equipment that it is necessary to maintain and 
     repair within the Department of Defense in order to maintain 
     within the department the capability described in paragraph 
     (1).
       ``(4) The Secretary shall require that the core logistics 
     functions identified pursuant to paragraph (3) be performed 
     in Government-owned, Government-operated facilities of the 
     Department of Defense by Department of Defense personnel 
     using Department of Defense equipment.''.

     SEC. 202. INCREASE IN PERCENTAGE LIMITATION ON CONTRACTOR 
                   PERFORMANCE OF DEPOT-LEVEL MAINTENANCE AND 
                   REPAIR WORKLOADS.

       (a) Fifty Percent Limitation.--Section 2466(a) of title 10, 
     United States Code, is amended by striking out ``40 percent'' 
     in the first sentence and inserting in lieu thereof ``50 
     percent''.
       (b) Increase Delayed Pending Receipt of Strategic Plan for 
     the Performance of Depot-Level Maintenance and Repair.--(1) 
     Notwithstanding the first sentence of section 2466(a) of 
     title 10, United States Code (as amended by subsection (a)), 
     until the strategic plan for the performance of depot-level 
     maintenance and repair is submitted under section 205, not 
     more than 40 percent of the funds made available in a fiscal 
     year to a military department or a Defense Agency for depot-
     level maintenance and repair workload may be used to contract 
     for the performance by non-Federal Government personnel of 
     such workload for the military department or the Defense 
     Agency.
       (2) In paragraph (1), the term ``depot-level maintenance 
     and repair workload'' has the meaning given such term in 
     section 2466(f) of title 10, United States Code.

     SEC. 203. REPORT ON DEPOT-LEVEL MAINTENANCE AND REPAIR.

       Subsection (e) of section 2466 of title 10, United States 
     Code, is amended to read as follows:
       ``(e) Report.--(1) Not later than February 1 of each year, 
     the Secretary of Defense shall submit to Congress a report 
     identifying, for each military department and Defense 
     Agency--
       ``(A) the percentage of the funds referred to in subsection 
     (a) that were used during the preceding fiscal year for 
     performance of depot-level maintenance and repair workloads 
     by Federal Government personnel; and
       ``(B) the percentage of the funds referred to in subsection 
     (a) that were used during the preceding fiscal year to 
     contract for the performance of depot-level maintenance and 
     repair workloads by non-Federal Government personnel.
       ``(2) Not later than 90 days after the date on which the 
     Secretary submits the annual report under paragraph (1), the 
     Comptroller General shall submit to the Committees on Armed 
     Services and on Appropriations of the Senate and the 
     Committees on National Security and on Appropriations of the 
     House of Representatives the Comptroller's views on whether 
     the Department of Defense has complied with the requirements 
     of subsection (a) for the fiscal year covered by the 
     report.''.

     SEC. 204. DEPOT-LEVEL MAINTENANCE AND REPAIR WORKLOAD 
                   DEFINED.

       Section 2466 of title 10, United States Code, is amended by 
     adding at the end the following:
       ``(f) Depot-Level Maintenance and Repair Workload 
     Defined.--In this section, the term `depot-level maintenance 
     and repair workload'--
       ``(1) means material maintenance requiring major overhaul 
     or complete rebuilding of parts, assemblies, or 
     subassemblies, and testing and reclamation of equipment as 
     necessary, including all aspects of software maintenance;
       ``(2) includes those portions of interim contractor 
     support, contractor logistics support, or any similar 
     contractor support for the performance of services described 
     in paragraph (1); and
       ``(3) does not include ship modernization and other repair 
     activities that--
       ``(A) are funded out of appropriations available to the 
     Department of Defense for procurement; and
       ``(B) were not considered to be depot-level maintenance and 
     repair workload activities under regulations of the 
     Department of Defense in effect on February 10, 1996.''.

     SEC. 205. STRATEGIC PLAN RELATING TO DEPOT-LEVEL MAINTENANCE 
                   AND REPAIR.

       (a) Strategic Plan Required.--(1) As soon as possible after 
     the enactment of this Act, the Secretary of Defense shall 
     submit to the Committee on Armed Services of the Senate and 
     the Committee on National Security of the House of 
     Representatives a strategic plan for the performance of 
     depot-level maintenance and repair.
       (2) The strategic plan shall cover the performance of 
     depot-level maintenance and repair for the Department of 
     Defense in fiscal years 1998 through 2007. The plan shall 
     provide for maintaining the capability described in section 
     2464 of title 10, United States Code.
       (b) Additional Matters Covered.--The Secretary of Defense 
     shall include in the strategic plan submitted under 
     subsection (a) a detailed discussion of the following 
     matters:
       (1) For each military department, as determined after 
     consultation with the Secretary of that military department 
     and the Chairman of the Joint Chiefs of Staff, the depot-
     level maintenance and repair activities and workloads that 
     are necessary to perform within the Department of Defense in 
     order to maintain the core logistics capability required by 
     section 2464 of title 10, United States Code.
       (2) For each military department, as determined after 
     consultation with the Secretary of that military department 
     and the Chairman of the Joint Chiefs of Staff, the depot-
     level maintenance and repair activities and workloads that 
     the Secretary of Defense plans to perform within the 
     Department of Defense in order to satisfy the requirements of 
     section 2466 of title 10, United States Code.
       (3) For the activities identified pursuant to paragraphs 
     (1) and (2), a discussion of which specific existing weapon 
     systems or other existing equipment, and which specific 
     planned weapon systems or other planned equipment, are weapon 
     systems or equipment for which it is necessary to maintain a 
     core depot-level maintenance and repair capability within the 
     Department of Defense.
       (4) The core capabilities, including sufficient skilled 
     personnel, equipment, and facilities, that--
       (A) are of sufficient size--

[[Page S12002]]

       (i) to ensure a ready and controlled source of the 
     technical competencies, and the maintenance and repair 
     capabilities, that are necessary to meet the requirements of 
     the national military strategy and other requirements for 
     responding to mobilizations and military contingencies; and
       (ii) to provide for rapid augmentation in time of 
     emergency; and
       (B) are assigned a sufficient workload to ensure cost 
     efficiency and technical proficiency in peacetime.
       (5) The environmental liability issues associated with any 
     projected privatization of the performance of depot-level 
     maintenance and repair, together with detailed projections of 
     the cost to the United States of satisfying environmental 
     liabilities associated with such privatized performance.
       (6) Any significant issues and risks concerning exchange of 
     technical data on depot-level maintenance and repair between 
     the Federal Government and the private sector.
       (7) Any deficiencies in Department of Defense financial 
     systems that hinder effective evaluation of competitions 
     (whether among private-sector sources or among depot-level 
     activities owned and operated by the Department of Defense 
     and private-sector sources), and merit-based selections 
     (among depot-level activities owned and operated by the 
     Department of Defense), for a depot-level maintenance and 
     repair workload, together with plans to correct such 
     deficiencies.
       (9) The type of facility (whether a private sector facility 
     or a Government owned and operated facility) in which depot-
     level maintenance and repair of any new weapon systems that 
     will reach full scale development is to be performed.
       (10) The workloads necessary to maintain Government owned 
     and operated depots at 50 percent, 70 percent, and 85 percent 
     of operating capacity.
       (11) A plan for improving the productivity of the 
     Government owned and operated depot maintenance and repair 
     facilities, together with management plans for changing 
     administrative and missions processes to achieve productivity 
     gains, a discussion of any barriers to achieving desired 
     productivity gains at the depots, and any necessary changes 
     in civilian personnel policies that are necessary to improve 
     productivity.
       (12) The criteria used to make decisions on whether to 
     convert to contractor performance of depot-level maintenance 
     and repair, the officials responsible for making the decision 
     to convert, and any depot-level maintenance and repair 
     workloads that are proposed to be converted to contractor 
     performance before the end of fiscal year 2001.
       (13) A detailed analysis of savings proposed to be achieved 
     by contracting for the performance of depot-level maintenance 
     and repair workload by private sector sources, together with 
     the report on the review of the analysis (and the assumptions 
     underlying the analysis) provided for under subsection (c).
       (c) Independent Review of Savings Analysis.--The Secretary 
     shall provide for a public accounting firm (independent of 
     Department of Defense influence) to review the analysis 
     referred to in subsection (b)(13) and the assumptions 
     underlying the analysis for submission to the committees 
     referred to in subsection (a) and to the Comptroller General.
       (d) Review By Comptroller General.--(1) At the same time 
     that the Secretary of Defense transmits the strategic plan 
     under subsection (a), the Secretary shall transmit a copy of 
     the plan (including the report of the public accounting firm 
     provided for under subsection (c)) to the Comptroller General 
     of the United States and make available to the Comptroller 
     General all information used by the Department of Defense in 
     preparing the plan and analysis.
       (2) Not later than 60 days after the date on which the 
     Secretary submits the strategic plan required by subsection 
     (a), the Comptroller General shall transmit to Congress a 
     report containing a detailed analysis of the strategic plan.
       (e) Additional Reporting Requirement for Comptroller 
     General.--Not later than February 1, 1997, the Comptroller 
     General shall submit to the committees referred to in 
     subsection (a) a report on the effectiveness of the oversight 
     by the Department of Defense of the management of existing 
     contracts with private sector sources of depot-level 
     maintenance and repair of weapon systems, the adequacy of 
     Department of Defense financial and information systems to 
     support effective decisions to contract for private sector 
     performance of depot-level maintenance and repair workloads 
     that are being or have been performed by Government 
     personnel, the status of reengineering efforts at depots 
     owned and operated by the United States, and any overall 
     management weaknesses within the Department of Defense that 
     would hinder effective use of contracting for the performance 
     of depot-level maintenance and repair.

     SEC. 206. ANNUAL REPORT ON COMPETITIVE PROCEDURES.

       (a) Annual Report.--Section 2469 of title 10, United States 
     Code, is amended by adding at the end the following:
       ``(d) Annual Report.--Not later than March 31 of each year, 
     the Secretary of Defense shall submit to the Committee on 
     Armed Services of the Senate and the Committee on National 
     Security of the House of Representatives a report describing 
     the competitive procedures used during the preceding fiscal 
     year for competitions referred to in subsection (a).''.
       (b) First Report.--The first report under subsection (d) of 
     section 2469 of title 10, United States Code (as added by 
     subsection (a)), shall be submitted not later than March 31, 
     1997.

     SEC. 207. ANNUAL RISK ASSESSMENTS REGARDING PRIVATE 
                   PERFORMANCE OF DEPOT-LEVEL MAINTENANCE WORK.

       (a) Reports.--Chapter 146 of title 10, United States Code, 
     is amended by adding at the end the following:

     ``Sec. 2473. Reports on privatization of depot-level 
       maintenance work

       ``(a) Annual Risk Assessments.--(1) Not later than January 
     1 of each year, the Joint Chiefs of Staff shall submit to the 
     Secretary of Defense a report on the privatization of the 
     performance of the various depot-level maintenance workloads 
     of the Department of Defense.
       ``(2) The report shall include with respect to each depot-
     level maintenance workload the following:
       ``(A) An assessment of the risk to the readiness, 
     sustainability, and technology of the Armed Forces in a full 
     range of anticipated scenarios for peacetime and for wartime 
     of--
       ``(i) using public entities to perform the workload;
       ``(ii) using private entities to perform the workload; and
       ``(iii) using a combination of public entities and private 
     entities to perform the workload.
       ``(B) The recommendation of the Joint Chiefs as to whether 
     public entities, private entities, or a combination of public 
     entities and private entities could perform the workload 
     without jeopardizing military readiness.
       ``(3) Not later than 30 days after receiving the report 
     under paragraph (2)(B), the Secretary shall transmit the 
     report to Congress. If the Secretary does not concur in the 
     recommendation made by the Joint Chiefs pursuant to paragraph 
     (2)(B), the Secretary shall include in the report under 
     this paragraph--
       ``(A) the recommendation of the Secretary; and
       ``(B) a justification for the differences between the 
     recommendation of the Joint Chiefs and the recommendation of 
     the Secretary.
       ``(b) Annual Report on Proposed Privatization.--(1) Not 
     later than February 28 of each year, the Joint Chiefs of 
     Staff shall submit to the Secretary of Defense a report on 
     each depot-level maintenance workload of the Department of 
     Defense that the Joint Chiefs believe could be converted to 
     performance by private entities during the next fiscal year 
     without jeopardizing military readiness.
       ``(2) Not later than 30 days after receiving a report under 
     paragraph (1), the Secretary shall transmit the report to 
     Congress. If the Secretary does not concur in the proposal of 
     the Joint Chiefs in the report, the Secretary shall include 
     in the report under this paragraph--
       ``(A) each depot-level maintenance workload of the 
     Department that the Secretary proposes to be performed by 
     private entities during the fiscal year concerned; and
       ``(B) a justification for the differences between the 
     proposal of the Joint Chiefs and the proposal of the 
     Secretary.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following:

``2473. Reports on privatization of depot-level maintenance work.''.

     SEC. 208. EXTENSION OF AUTHORITY FOR NAVAL SHIPYARDS AND 
                   AVIATION DEPOTS TO ENGAGE IN DEFENSE-RELATED 
                   PRODUCTION AND SERVICES.

       (a) Extension of Authority.--Section 1425(e) of the 
     National Defense Authorization Act for Fiscal Year 1991 
     (Public Law 101-510) is amended by striking out ``expires on 
     September 30, 1995'' and inserting in lieu thereof ``may not 
     be exercised after September 30, 1997''.
       (b) Revival of Expired Authority.--The authority provided 
     in section 1425 of the National Defense Authorization Act for 
     Fiscal Year 1991 may be exercised after September 30, 1995, 
     subject to the limitation in subsection (e) of such section 
     as amended by subsection (a) of this section.

     SEC. 209. LIMITATION ON USE OF FUNDS FOR F-18 AIRCRAFT DEPOT 
                   MAINTENANCE.

       Of the amounts authorized to be appropriated by section 
     301(2) of the National Defense Authorization Act for Fiscal 
     Year 1997 (Public Law 104-201), not more than $5,000,000 may 
     be used for the performance of depot maintenance on F-18 
     aircraft until 30 days after the date on which the Secretary 
     of Defense submits to the congressional defense committees a 
     report on aviation depot maintenance. The report shall 
     contain the following:
       (1) The results of a competition which the Secretary shall 
     conduct between all Department of Defense aviation depots for 
     selection for the performance of depot maintenance on F-18 
     aircraft.
       (2) An analysis of the total cost of transferring the F-18 
     aircraft depot maintenance workload to an aviation depot not 
     performing such workload as of the date of the enactment of 
     this Act.

     SEC. 210. DEPOT MAINTENANCE AND REPAIR AT FACILITIES CLOSED 
                   BY BRAC.

       The Secretary may not contract for the performance by a 
     private sector source of any of the depot maintenance 
     workload performed as of the date of the enactment of this 
     Act at Sacramento Air Logistics Center

[[Page S12003]]

     or the San Antonio Air Logistics Center until the Secretary--
       (1) publishes criteria for the evaluation of bids and 
     proposals to perform such workload;
       (2) conducts a competition for the workload between public 
     and private entities;
       (3) pursuant to the competition, determines in accordance 
     with the criteria published under paragraph (1) that an offer 
     submitted by a private sector source to perform the workload 
     is the best value for the United States; and
       (4) submits to Congress the following--
       (A) a detailed comparison of the cost of the performance of 
     the workload by civilian employees of the Department of 
     Defense with the cost of the performance of the workload by 
     that source; and
       (B) an analysis which demonstrates that the performance of 
     the workload by that source will provide the best value for 
     the United States over the life of the contract.

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