[Congressional Record (Bound Edition), Volume 147 (2001), Part 13]
[Senate]
[Pages 18004-18016]
[From the U.S. Government Publishing Office, www.gpo.gov]



    NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2002--Resumed

  The PRESIDING OFFICER. The clerk will report.
  The senior assistant bill clerk read as follows:

       A bill (S. 1438) to authorize appropriations for fiscal 
     year 2002 for military activities of the Department of 
     Defense, for military construction, and for defense 
     activities of the Department of Energy, to prescribe 
     personnel strengths for such fiscal year for the Armed 
     Services, and for other purposes.

  Mr. LEVIN. Madam President, we made good progress on this bill 
yesterday. Unfortunately, we weren't successful in reaching a unanimous 
consent agreement on a finite list of amendments to this bill which 
would allow us to move quickly to final passage.
  But we simply must complete action on this bill. President Bush has 
declared a national state of emergency. Our military forces are 
deploying around the world. We are calling the National Guard and 
Reserve units to active duty to augment our active forces.
  This bill contains critically important provisions for our national 
security. It provides much needed increases in military pay and 
benefits, including housing benefits and allowances. It contains 
authority for bonuses and special pay to retain people with critical 
skills in the military services, and it contains a number of important 
provisions to improve the efficiency of the Defense Department 
operations.
  The matter which has been keeping us from proceeding and completing 
this bill is not related to the national defense bill that is before 
us. Our leadership is working hard to try to address that issue.
  I thank our leaders, Senator Daschle, Senator Lott, and Senator Reid, 
who have been so actively involved for their efforts to move us forward 
on this critically important bill.
  I thank Senator Warner. He and his staff have worked tirelessly to 
advance the bill. But adopting this bill would send a powerful signal 
to our allies and our adversaries around the world of a strong and 
unified sense of national unity and determination and our support for 
our Armed Forces.
  So I am hopeful that we can continue to make progress. As part of 
that effort, Senator Warner and I and our staffs worked late last night 
and this morning to develop a package of about 25 cleared amendments.


               Amendments Nos. 1694 through 1718, En Bloc

  At this point, I ask unanimous consent that it be in order to send 25 
amendments to the desk for consideration en bloc, that the amendments 
be agreed to, the motion to reconsider be laid upon the table, and that 
any statements related to the amendments be printed at the appropriate 
place in the Record.
  The PRESIDING OFFICER. Is there objection?
  The Senator from Virginia.
  Mr. WARNER. Madam President, I will address in detail some of the 
remarks made earlier by my distinguished chairman, but at this point in 
time may I say this has been worked out mutually. We are in complete 
concurrence on this side with this block of amendments that we will 
adopt en bloc.
  Again, I join the Senator in crediting our staff who have worked long 
hours into last night and almost every night.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendments (Nos. 1694 through 1718), en bloc, were agreed to, as 
follows:


                           amendment no. 1694

(Purpose: To amend the Small Business Act to promote the involvement of 
 small business concerns and small business joint ventures in certain 
    types of procurement contracts, to establish the Small Business 
        Procurement Competition Program, and for other purposes)

       At the appropriate place, insert the following:

     SEC. __. SMALL BUSINESS PROCUREMENT COMPETITION.

       (a) Definition of Covered Contracts.--Section 15(e)(4) of 
     the Small Business Act (15 U.S.C. 644(e)(4)) is amended--
       (1) by inserting after ``bundled contract'' the following: 
     ``, the aggregate dollar value of which is anticipated to be 
     less than $5,000,000, or any contract, whether or not the 
     contract is a bundled contract, the aggregate dollar value of 
     which is anticipated to be $5,000,000 or more'';
       (2) by striking ``In the'' and inserting the following:
       ``(A) In general.--In the''; and

[[Page 18005]]

       (3) by adding at the end the following:
       ``(B) Contracting goals.--
       ``(i) In general.--A contract award under this paragraph to 
     a team that is comprised entirely of small business concerns 
     shall be counted toward the small business contracting goals 
     of the contracting agency, as required by this Act.
       ``(ii) Preponderance test.--The ownership of the small 
     business that conducts the preponderance of the work in a 
     contract awarded to a team described in clause (i) shall 
     determine the category or type of award for purposes of 
     meeting the contracting goals of the contracting agency.''.
       (b) Proportionate Work Requirements for Bundled 
     Contracts.--
       (1) Section 8.--Section 8(a)(14)(A) of the Small Business 
     Act (15 U.S.C. 637(a)(14)(A)) is amended--
       (A) in clause (i), by striking ``and'' at the end;
       (B) in clause (ii), by striking the period at the end and 
     inserting ``; and''; and
       (C) by adding at the end the following:
       ``(iii) notwithstanding clauses (i) and (ii), in the case 
     of a bundled contract--
       ``(I) the concern will perform work for at least 33 percent 
     of the aggregate dollar value of the anticipated award;
       ``(II) no other concern will perform a greater proportion 
     of the work on that contract; and
       ``(III) no other concern that is not a small business 
     concern will perform work on the contract.''.
       (2) Qualified hubzone small business concerns.--Section 
     3(p)(5)(A)(i)(III) of the Small Business Act (15 U.S.C. 
     632(p)(5)(A)(i)(III)) is amended--
       (A) in item (bb), by striking ``and'' at the end;
       (B) by redesignating item (cc) as item (dd); and
       (C) by inserting after item (bb) the following:
       ``(cc) notwithstanding items (aa) and (bb), in the case of 
     a bundled contract, the concern will perform work for at 
     least 33 percent of the aggregate dollar value of the 
     anticipated award, no other concern will perform a greater 
     proportion of the work on that contract, and no other concern 
     that is not a small business concern will perform work on the 
     contract; and''.
       (3) Section 15.--Section 15(o)(1) of the Small Business Act 
     (15 U.S.C. 644(o)(1)) is amended--
       (A) in subparagraph (A), by striking ``and'' at the end;
       (B) in subparagraph (B), by striking the period at the end 
     and inserting ``; and''; and
       (C) by adding at the end the following:
       ``(C) notwithstanding subparagraphs (A) and (B), in the 
     case of a bundled contract--
       ``(i) the concern will perform work for at least 33 percent 
     of the aggregate dollar value of the anticipated award;
       ``(ii) no other concern will perform a greater proportion 
     of the work on that contract; and
       ``(iii) no other concern that is not a small business 
     concern will perform work on the contract.''.
       (c) Small Business Procurement Competition Pilot Program.--
       (1) Definitions.--In this subsection--
       (A) the term ``Administrator'' means the Administrator of 
     the Small Business Administration;
       (B) the term ``Federal agency'' has the same meaning as in 
     section 3 of the Small Business Act (15 U.S.C. 632);
       (C) the term ``Program'' means the Small Business 
     Procurement Competition Program established under paragraph 
     (2);
       (D) the term ``small business concern'' has the same 
     meaning as in section 3 of the Small Business Act (15 U.S.C. 
     632); and
       (E) the term ``small business-only joint ventures'' means a 
     team described in section 15(e)(4) of the Small Business Act 
     (15 U.S.C. 644(e)(4)) comprised of only small business 
     concerns.
       (2) Establishment of program.--The Administrator shall 
     establish in the Small Business Administration a pilot 
     program to be known as the ``Small Business Procurement 
     Competition Program''.
       (3) Purposes of program.--The purposes of the Program are--
       (A) to encourage small business-only joint ventures to 
     compete for contract awards to fulfill the procurement needs 
     of Federal agencies;
       (B) to facilitate the formation of joint ventures for 
     procurement purposes among small business concerns;
       (C) to engage in outreach to small business-only joint 
     ventures for Federal agency procurement purposes; and
       (D) to engage in outreach to the Director of the Office of 
     Small and Disadvantaged Business Utilization and the 
     procurement officer within each Federal agency.
       (4) Outreach.--Under the Program, the Administrator shall 
     establish procedures to conduct outreach to small business 
     concerns interested in forming small business-only joint 
     ventures for the purpose of fulfilling procurement needs of 
     Federal agencies, subject to the rules of the Administrator, 
     in consultation with the heads of those Federal agencies.
       (5) Regulatory authority.--The Administrator shall 
     promulgate such regulations as may be necessary to carry out 
     this subsection.
       (6) Small business administration database.--The 
     Administrator shall establish and maintain a permanent 
     database that identifies small business concerns interested 
     in forming small business-only joint ventures, and shall make 
     the database available to each Federal agency and to small 
     business concerns in electronic form to facilitate the 
     formation of small business-only joint ventures.
       (7) Termination of program.--The Program (other than the 
     database established under paragraph (6)) shall terminate 3 
     years after the date of enactment of this Act.
       (8) Report to congress.--Not later than 60 days before the 
     date of termination of the Program, the Administrator shall 
     submit a report to Congress on the results of the Program, 
     together with any recommendations for improvements to the 
     Program and its potential for use Governmentwide.
       (9) Relationship to other laws.--Nothing in this subsection 
     waives or modifies the applicability of any other provision 
     of law to procurements of any Federal agency in which small 
     business-only joint ventures may participate under the 
     Program.
                                  ____



                           amendment no. 1695

 (Purpose: To make amendments with respect to small business concerns)

       On page 270, line 9, strike ``(A)'' and all that follows 
     through ``(4)'' on line 25.
       On page 271, between lines 8 and 9, insert the following:
       (c) Evaluation of Bundling Effects.--Section 15(h)(2) of 
     the Small Business Act (15 U.S.C. 644(h)(2)) is amended--
       (1) in subparagraph (C), by inserting ``, and whether 
     contract bundling played a role in the failure,'' after 
     ``agency goals''; and
       (2) by adding at the end the following:
       ``(G) The number and dollar value of consolidations of 
     contract requirements with a total value in excess of 
     $5,000,000, including the number of such consolidations that 
     were awarded to small business concerns as prime 
     contractors.''.
       (d) Reporting Requirement.--Section 15(p) of the Small 
     Business Act (15 U.S.C. 644(p)) is amended to read as 
     follows:
       ``(p) Reporting Requirement.--
       ``(1) In general.--The Administrator shall conduct a study 
     examining the best means to determine the accuracy of the 
     market research required under subsection (e)(2) for each 
     bundled contract, to determine if the anticipated benefits 
     were realized, or if they were not realized, the reasons 
     there for.
       ``(2) Provision of information.--A Federal agency shall 
     provide to the appropriate procurement center representative 
     a copy of market research required under subsection (e)(2) 
     for consolidations of contract requirements with a total 
     value in excess of $5,000,000, upon request.
       ``(3) Report.--Not later than 270 days after the date of 
     enactment of the National Defense Authorization Act for 
     Fiscal Year 2002, the Administrator shall submit a report to 
     the Committee on Small Business and Entrepreneurship of the 
     Senate and the Committee on Small Business of the House of 
     Representatives on the results of the study conducted under 
     this subsection.''.
       On page 290, between lines 3 and 4, insert the following:

     SEC. 824. HUBZONE SMALL BUSINESS CONCERNS.

       Section 3(p) of the Small Business Act (15 U.S.C. 632(p)) 
     is amended--
       (1) by redesignating paragraphs (4) through (7) as 
     paragraphs (5) through (8), respectively; and
       (2) by inserting after paragraph (3) the following:
       ``(4) Rule of construction relating to citizenship.--
       ``(A) In general.--A small business concern described in 
     subparagraph (B) meets the United States citizenship 
     requirement of paragraph (3)(A) if, at the time of 
     application by the concern to become a qualified HUBZone 
     small business concern for purposes of any contract and at 
     such times as the Administrator shall require, no non-citizen 
     has filed a disclosure under section 13(d)(1) of the 
     Securities Exchange Act of 1934 (15 U.S.C. 78m(d)(1)) as the 
     beneficial owner of more than 10 percent of the outstanding 
     shares of that small business concern.
       ``(B) Concerns described.--A small business concern is 
     described in this subparagraph if the small business 
     concern--
       ``(i) has a class of securities registered under section 12 
     of the Securities Exchange Act of 1934 (15 U.S.C. 78l); and
       ``(ii) files reports with the Securities and Exchange 
     Commission as a small business issuer.''.
       ``(C) Non-citizens.--In this paragraph, the term `non-
     citizen' means
       ``(i) an individual that is not a United States citizen; 
     and
       ``(ii) any other person that is not organized under the 
     laws of any State or the United States.''.

[[Page 18006]]

     
                                  ____
                           amendment no. 1696

    (Purpose: To authorize, with an offset, $11,900,000 to improve 
     instrumentation and targets at Army live fire training ranges)

       At the end of subtitle A of title III, add the following:

     SEC. 306. IMPROVEMENTS IN INSTRUMENTATION AND TARGETS AT ARMY 
                   LIVE FIRE TRAINING RANGES.

       (a) Increase in Authorization of Appropriations for 
     Operation and Maintenance, Army.--The amount authorized to be 
     appropriated by section 301(1) for the Army for operation and 
     maintenance is hereby increased by $11,900,000 for 
     improvements in instrumentation and targets at Army live fire 
     training ranges.
       (b) Offset.--The amount authorized to be appropriated by 
     section 302(1) for the Department of Defense for the Defense 
     Working Capital Funds is hereby decreased by $11,900,000, 
     with the amount of the decrease to be allocated to amounts 
     available under that section for fuel purchases.
                                  ____



                           amendment no. 1697

(Purpose: To increase the amount authorized to be appropriated for the 
   Air Force for procurement of Hydra-70 rockets, and to provide an 
                                offset)

       On page 18, line 13, increase the amount by $20,000,000.
       On page 32, line 4, reduced the amount by $20,000,000.
                                  ____



                           amendment no. 1698

  (Purpose: To modify the provisions relating to financial management 
                oversight of the Department of Defense)

       In the section heading of section 1007, strike ``SENIOR 
     FINANCIAL MANAGEMENT OVERSIGHT COUNCIL'' and insert 
     ``FINANCIAL MANAGEMENT MODERNIZATION EXECUTIVE COMMITTEE''.
       In section 1007, strike the subsection caption for 
     subsection (a) and insert the following: ``Establishment of 
     Financial Management Modernization Executive Committee.--''.
       In section 1007(a)(1), strike ``Senior Financial Management 
     Oversight Council'' and insert ``Financial Management 
     Modernization Executive Committee''.
       In section 1007(a)(2), strike ``Council'' and insert 
     ``Committee''.
       In section 1007(a)(2), insert after ``(Personnel and 
     Readiness),'' the following: ``the chief information officer 
     of the Department of Defense,''.
       In section 1007(a)(3), strike ``Council'' and insert 
     ``Committee''.
       In section 1007(a), add at the end the following:
       (4) The Committee shall be accountable to the Senior 
     Executive Council composed of the Secretary of Defense, the 
     Deputy Secretary of Defense, the Under Secretary of Defense 
     for Acquisition, Technology, and Logistics, the Secretary of 
     the Army, the Secretary of the Navy, and the Secretary of the 
     Air Force.
       In section 1007(b), in the matter preceding paragraph (1), 
     strike ``Senior Financial Management Oversight Council'' and 
     insert ``Financial Management Modernization Executive 
     Committee''.
       In section 1007(b), add at the end the following:
       (4) To ensure that a Department of Defense financial 
     management enterprise architecture is development and 
     maintained in accordance with--
       (A) the overall business process transformation strategy of 
     the Department; and
       (B) the Command, Control, Communications, Computers, 
     Intelligence, Surveillance, and Reconnaissance Architecture 
     Framework of the Department.
       (5) To ensure that investments in existing or proposed 
     financial management systems for the Department comply with 
     the overall business practice transformation strategy of the 
     Department and the financial management enterprise 
     architecture developed under paragraph (4).
       (6) To provide an annual accounting of all financial and 
     feeder system investment technology projects to ensure that 
     such projects are being implemented at acceptable cost and 
     within a reasonable schedule, and are contributing to 
     tangible, observable improvements in mission performance.
       In section 1007(c)(1), strike ``of all'' and all that 
     follows through the end and insert ``of all budgetary, 
     accounting, finance, and feeder systems that support the 
     transformed business processes of the Department and produce 
     financial statements.''.
       In section 1007(c)(2), strike ``to financial statements 
     before other actions are initiated.'' and insert ``to 
     cognizant Department business functions (as part of the 
     overall business process transformation strategy of the 
     Department) and financial statements before other actions are 
     initiated.''.
       In section 1007(c), strike paragraphs (3), (4), and (5) and 
     insert the following:
       (3) Periodic submittal to the Secretary of Defense, the 
     Deputy Secretary of Defense, the Senior Executive Council, or 
     any combination thereof, of reports on the progress being 
     made in achieving financial management transformation goals 
     and milestone included in the annual financial management 
     improvement plan in 2002 in accordance with subsection (e).
       (4) Documentation of the completion of each phase--
     Awareness, Evaluation, Renovation, Validation, and 
     Compliance--of improvements made to each accounting, finance, 
     and feeder system.
       (5) Independent audit by the Inspector General of the 
     Department, the audit agencies of the military department, 
     private sector firms contracted to conduct validation audits, 
     or any combination thereof, at the validation phase for each 
     accounting, finance, and feeder system.
       In section 1007, strike subsection (d) and insert the 
     following:
       (d) Annual Financial Management Improvement Plan.--(1) 
     Subsection (a) of section 2222 of title 10, United States 
     Code, is amended to read as follows:
       ``(a) Annual Plan Required.--The Secretary of Defense shall 
     submit to Congress an annual strategic plan for the 
     improvement of financial management within the Department of 
     Defense. The plan shall be submitted not later than September 
     30 each year.''.
       (2)(A) The section heading of such section is amended to 
     read as follows:

     ``Sec. 2222. Annual financial management improvement plan''.

       (B) The table of sections at the beginning of chapter 131 
     of such title is amended by striking the item relating to 
     section 2222 and inserting the following new item:

``2222. Annual financial management improvement plan.''.

       (e) Additional Elements for Financial Management 
     Improvement Plan in 2002.--In the annual financial management 
     improvement plan submitted under section 2222 of title 10, 
     United States Code (as amended by subsection (d)), in 2002, 
     the Secretary shall include the following:
       (1) Measurable annual performance goals for improvement of 
     the financial management of the Department.
       (2) Performance milestones for initiatives under the plan 
     for transforming the financial management operations of the 
     Department and for implementing a financial management 
     architecture for the Department.
       (3) An assessment of the anticipated annual cost of any 
     plans for transforming the financial management operations of 
     the Department and for implementing a financial management 
     architecture for the Department.
       (4) A discussion of the following:
       (A) The roles and responsibilities of appropriate 
     Department officials to ensure the supervision and monitoring 
     of the compliance of each accounting, finance, and feeder 
     system of the Department with the business practice 
     transformation strategy of the Department, the financial 
     management architecture of the Department, and applicable 
     Federal financial management systems and reporting 
     requirements.
       (B) A summary of the actions taken by the Financial 
     Management Modernization Executive Committee to ensure that 
     such systems comply with the business practice transformation 
     strategy of the Department, the financial management 
     architecture of the Department, and applicable Federal 
     financial management systems and reporting requirements.
       (f) Additional Elements for Financial Management 
     Improvement Plan After 2002.--In each annual financial 
     management improvement plan submitted under section 2222 of 
     title 10, United States Code (as amended by subsection (d)), 
     after 2002, the Secretary shall include the following:
       (1) A description of the actions to be taken in the fiscal 
     year beginning in the year in which the plan is submitted to 
     implement the goals and milestones included in the financial 
     management improvement plan in 2002 under paragraphs (1) and 
     (2) of subsection (e).
       (2) An estimate of the amount expended in the fiscal year 
     ending in the year in which the plan is submitted to 
     implement the financial management improvement plan in such 
     preceding calendar year, set forth by system.
       (3) If an element of the financial management improvement 
     plan submitted in the fiscal year ending in the year in which 
     the plan is submitted was not implemented, a justification 
     for the lack of implementation of such element.
                                  ____



                           amendment no. 1699

 (Purpose: To require a determination on the advisability of amending 
the Federal Acquisition Regulation to authorize treatment of financing 
costs as an allowable expense under contracts for utility services from 
 utility systems privatized under the utility privatization initiative)

       At the end of subtitle A of title XXVIII, add the 
     following:

     SEC. 2806. AMENDMENT OF FEDERAL ACQUISITION REGULATION TO 
                   TREAT FINANCING COSTS AS ALLOWABLE EXPENSES 
                   UNDER CONTRACTS FOR UTILITY SERVICES FROM 
                   UTILITY SYSTEMS CONVEYED UNDER PRIVATIZATION 
                   INITIATIVE.

       (a) Determination of Advisability of Amendment.--Not later 
     than 90 days after the date of the enactment of this Act, the 
     Secretary of Defense shall determine whether or not it is 
     advisable to modify the Federal Acquisition Regulation in 
     order to provide that a contract for utility services from

[[Page 18007]]

     a utility system conveyed under section 2688(a) of title 10, 
     United States Code, may include terms and conditions that 
     recognize financing costs, such as return on equity and 
     interest on debt, as an allowable expense when incurred by 
     the conveyee of the utility system to acquire, operate, 
     renovate, replace, upgrade, repair, and expand the utility 
     system.
       (b) Report.--If as of the date that is 180 days after the 
     date of the enactment of this Act, the Federal Acquisition 
     Regulatory Council has not modified the Federal Acquisition 
     Regulation to provide that a contract described in subsection 
     (a) may include terms and conditions described in that 
     subsection, or otherwise taken action to provide that a 
     contract referred to in that subsection may include terms and 
     conditions described in that subsection, the Secretary shall 
     submit to Congress on that date a report setting forth a 
     justification for the failure to take such actions.
                                  ____



                           amendment no. 1700

(Purpose: Relating to chemical and biological protective equipment for 
     military and civilian personnel of the Department of Defense)

       At the end of subtitle E of title X, add the following:

     SEC. 1066. CHEMICAL AND BIOLOGICAL PROTECTIVE EQUIPMENT FOR 
                   MILITARY AND CIVILIAN PERSONNEL OF THE 
                   DEPARTMENT OF DEFENSE.

       (a) Report Required.--(1) Not later than 120 days after the 
     date of the enactment of this Act, the Secretary of Defense 
     shall submit to Congress a report on the requirements of the 
     Department of Defense, including the reserve components, for 
     chemical and biological protective equipment.
       (2) The report shall set forth the following:
       (A) A description of any current shortfalls in requirements 
     for chemical and biological protective equipment, whether for 
     individuals or units, for military personnel.
       (B) A plan for providing appropriate chemical and 
     biological protective equipment for all military personnel 
     and for all civilian personnel of the Department of Defense.
       (C) An assessment of the costs associated with carrying out 
     the plan under subparagraph (B).
       (b) Sense of Congress.--It is the sense of Congress that 
     the Secretary of Defense should consider utilizing funds 
     available to the Secretary for chemical and biological 
     defense programs, including funds available for such program 
     under this Act and funds available for such programs under 
     the 2001 Emergency Supplemental Appropriations Act for 
     Recovery from and Response to Terrorist Attacks on the United 
     States, to provide an appropriate level of protection from 
     chemical and biological attack, including protective 
     equipment, for all military personnel and for all civilian 
     personnel of the Department of Defense who are not currently 
     protected from chemical or biological attack.
                                  ____



                           Amendment No. 1701

    (Purpose: To improve the provisions relating to the Rocky Flats 
                       National Wildlife Refuge)

  (The text of the amendment is printed in the Record under 
``Amendments Submitted.'')
                                  ____



                           amendment no. 1702

(Purpose: To repeal the limitation on number of officers on active duty 
                  in the grades of general or admiral)

       At the end of section 501 add the following:
       (e) Repeal of Limitation on Number of Officers on Active 
     Duty in the Grades of General or Admiral.--(1) Section 528 of 
     title 10, United States Code, is repealed.
       (2) The table of sections at the beginning of chapter 32 of 
     such title is amended by striking the item relating to 
     section 528.
                                  ____



                           Amendment No. 1703

(Purpose: To improve the organization and management of the Department 
       of Defense with respect to space programs and activities)

  (The text of the amendment is printed in the Record under 
``Amendments Submitted.'')
                                  ____



                           amendment no. 1704

 (Purpose: To modify certain provisions relating to Cooperative Threat 
                          Reduction programs)

       In section 1202(c)(1), strike ``Subject to paragraphs (2) 
     and (3),'' and insert ``Subject to paragraph (2),''.
       In section 1202(c)(3), strike ``in any of the paragraphs'' 
     and insert ``in paragraph (7), (10) or (11)''.
       Strike section 1203 and insert the following:

     SEC. 1203. CHEMICAL WEAPONS DESTRUCTION.

       Section 1305 of the National Defense Authorization Act for 
     Fiscal Year 2000 (Public Law 106-65; 113 Stat. 794; 22 U.S.C. 
     5952 note) is amended--
       (1) by inserting ``(a) Limitation.--'' before ``No fiscal 
     year'';
       (2) in subsection (a), as so designated, by inserting 
     before the period at the end the following: ``until the 
     Secretary of Defense submits to Congress a certification that 
     there has been--
       ``(1) full and accurate disclosure by Russia of the size of 
     its existing chemical weapons stockpile;
       ``(2) a demonstrated annual commitment by Russia to 
     allocate at least $25,000,000 to chemical weapons 
     elimination;
       ``(3) development by Russia of a practical plan for 
     destroying its stockpile of nerve agents;
       ``(4) enactment of a law by Russia that provides for the 
     elimination of all nerve agents at a single site;
       ``(5) an agreement by Russia to destroy or convert its 
     chemical weapons production facilities at Volgograd and 
     Novocheboksark; and
       ``(6) a demonstrated commitment from the international 
     community to fund and build infrastructure needed to support 
     and operate the facility.''; and
       (3) by adding at the end the following new subsection:
       ``(b) Omission of Certain Information.--The Secretary may 
     omit from the certification under subsection (a) the matter 
     specified in paragraph (1) of that subsection, and the 
     certification with the matter so omitted shall be effective 
     for purposes of that subsection, if the Secretary includes 
     with the certification notice to Congress of a determination 
     by the Secretary that it is not in the national security 
     interests of the United States for the matter specified in 
     that paragraph to be included in the certification, together 
     with a justification of the determination.''.
       In section 1204(b), strike ``Executive'' in the subsection 
     caption and insert ``Implementing''.
       In section 1204(b), strike ``executive'' and insert 
     ``implementing''.
                                  ____



                           amendment no. 1705

            (Purpose: Relating to the V-22 Osprey aircraft)

       At the end of subtitle C of title I, add the following:

     SEC. 124. ADDITIONAL MATTER RELATING TO V-22 OSPREY AIRCRAFT.

       Not later than 30 days before the recommencement of flights 
     of the V-22 Osprey aircraft, the Secretary of Defense shall 
     submit to Congress notice of the waiver, if any, of any item 
     capability or any other requirement specified in the Joint 
     Operational Requirements Document for the V-22 Osprey 
     aircraft, including a justification of each such waiver.
                                  ____



                           amendment no. 1706

  (Purpose: To authorize the appropriation of an additional amount of 
 $1,000,000 for fiscal year 2001 that was previously appropriated for 
 that fiscal year for RDT&E, Defense-wide, for the Intelligent Spatial 
  Technologies for Smart Maps Initiative of the National Imagery and 
                     Mapping Agency (PE0305102BQ))

       On page 31, between lines 15 and 16, insert the following:

     SEC. 233. SUPPLEMENTAL AUTHORIZATION OF APPROPRIATIONS FOR 
                   FISCAL YEAR 2001 FOR RESEARCH, DEVELOPMENT, 
                   TEST, AND EVALUATION DEFENSE-WIDE.

       Section 201(4) of Floyd D. Spence National Defense 
     Authorization Act for Fiscal Year 2001 (as enacted into law 
     by Public Law 106-398; 114 Stat. 1654A-32) is amended by 
     striking ``$10,873,712,000'' and inserting 
     ``$10,874,712,000''.
                                  ____



                           amendment no. 1707

(Purpose: To modify the land conveyance at Mukilteo Tank Farm, Everett, 
                              Washington)

       At the end of subtitle C of title XXVIII, add the 
     following:

     SEC. __. MODIFICATION OF LAND CONVEYANCE, MUKILTEO TANK FARM, 
                   EVERETT, WASHINGTON.

       (a) Modification.--Section 2866 of the Military 
     Construction Authorization Act for Fiscal Year 2001 (division 
     B of the Floyd D. Spence National Defense Authorization Act 
     for Fiscal Year 2001 (as enacted by Public Law 106-398); 114 
     Stat. 436) is amended--
       (1) in subsection (a), by striking ``22 acres'' and 
     inserting ``20.9 acres'';
       (2) by redesignating subsections (b), (c), (d), and (e) as 
     subsections (c), (d), (e), and (f), respectively; and
       (3) by inserting after subsection (a) the following new 
     subsection (b):
       ``(b) Transfer of Jurisdiction.--(1) At the same time the 
     Secretary of the Air Force makes the conveyance authorized by 
     subsection (a), the Secretary shall transfer to the Secretary 
     of Commerce administrative jurisdiction over a parcel of real 
     property, including improvements thereon, consisting of 
     approximately 1.1 acres located at the Mukilteo Tank Farm and 
     including the National Marine Fisheries Service Mukilteo 
     Research Center facility.
       ``(2) The Secretary of Commerce may, with the consent of 
     the Port, exchange with the Port all or any portion of the 
     property received under paragraph (1) for a parcel of real 
     property of equal area at the Mukilteo Tank Farm that is 
     owned by the Port.
       ``(3) The Secretary of Commerce shall administer the 
     property under the jurisdiction of the Secretary under this 
     subsection through the Administrator of the National Oceanic 
     and Atmospheric Administration as part of the Administration.

[[Page 18008]]

       ``(4) The Administrator shall use the property under the 
     jurisdiction of the Secretary of Commerce under this 
     subsection as the location of a research facility, and may 
     construct a new facility on the property for such research 
     purposes as the Administrator considers appropriate.
       ``(5)(A) If after the 12-year period beginning on the date 
     of the enactment of the National Defense Authorization Act 
     for Fiscal Year 2002, the Administrator is not using any 
     portion of the real property under the jurisdiction of the 
     Secretary of Commerce under this subsection, the 
     Administrator shall convey, without consideration, to the 
     Port all right, title, and interest in and to such portion of 
     the real property, including improvements thereon.
       ``(B) The Port shall use any real property conveyed to the 
     Port under this paragraph for the purpose specified in 
     subsection (a).''.
       (b) Conforming Amendment.--The section heading for that 
     section is amended to read as follows:

     ``SEC. 2866. LAND CONVEYANCE AND TRANSFER, MUKILTEO TANK 
                   FARM, EVERETT, WASHINGTON.''.
                                  ____



                           AMENDMENT NO. 1708

   (Purpose: To modify the authorization for a military construction 
                    project at Fort Sill, Oklahoma)

       The table in section 2101(a) is amended in the item 
     relating to Fort Sill, Oklahoma, by striking ``$18,600,000'' 
     in the amount column and inserting ``$40,100,000''.
       The table in section 2101(a) is amended by striking the 
     amount identified as the total in the amount column and 
     inserting ``$1,279,500,000''.
       Section 2104(b)(4) is amended by striking ``and'' at the 
     end.
       Section 2104(b)(5) is amended by striking the period at the 
     end and inserting ``; and''.
       Section 2104(b) is amended by inserting after paragraph (5) 
     the following:
       (6) $21,500,000 (the balance of the amount authorized under 
     section 2101(a) for Consolidated Logistics Complex (Phase I) 
     at Fort Sill, Oklahoma).
                                  ____



                           AMENDMENT NO. 1709

 (Purpose: To authorize, with an offset, $2,400,000 for procurement of 
               additional M291 skin decontamination kits)

       At the end of subtitle E of title I, add the following:

     SEC. 142. PROCUREMENT OF ADDITIONAL M291 SKIN DECONTAMINATION 
                   KITS.

       (a) Increase in Authorization of Appropriations for 
     Defense-Wide Procurement.--(1) The amount authorized to be 
     appropriated by section 104 for Defense-wide procurement is 
     hereby increased by $2,400,000, with the amount of the 
     increase available for the Navy for procurement of M291 skin 
     decontamination kits.
       (2) The amount available under paragraph (1) for 
     procurement of M291 skin decontamination kits is in addition 
     to any other amounts available under this Act for procurement 
     of M291 skin decontamination kits.
       (b) Offset.--The amount authorized to be appropriated by 
     section 201(4) for research, development, test, and 
     evaluation, Defense-wide, is hereby decreased by $2,400,000, 
     with the amount to be derived from the amount available for 
     the Technical Studies, Support and Analysis program.
                                  ____



                           AMENDMENT NO. 1710

   (Purpose: To reauthorize a warranty claims recovery pilot program)

       At the end of subtitle D of title III, add the following:

     SEC. 335. REAUTHORIZATION OF WARRANTY CLAIMS RECOVERY PILOT 
                   PROGRAM.

       (a) Extension of Authority.--Subsection (f) of section 391 
     of the National Defense Authorization Act for Fiscal Year 
     1998 (Public Law 105-85; 111 Stat. 1716; 10 U.S.C. 2304 note) 
     is amended by striking ``September 30, 1999'' and inserting 
     ``September 30, 2003''.
       (b) Reporting Requirements.--Subsection (g) of such section 
     is amended--
       (1) in paragraph (1), by striking ``January 1, 2000'' and 
     inserting ``January 1, 2003''; and
       (2) in paragraph (2), by striking ``March 1, 2000'' and 
     inserting ``March 1, 2003''.
                                  ____



                           AMENDMENT NO. 1711

 (Purpose: To authorize land conveyances at Charleston Air Force Base, 
                            South Carolina)

       At the end of subtitle C of title XXVIII, add the 
     following:

     SEC. 2827. LAND CONVEYANCES, CHARLESTON AIR FORCE BASE, SOUTH 
                   CAROLINA.

       (a) Conveyance to State of South Carolina Authorized.--The 
     Secretary of the Air Force may convey, without consideration, 
     to the State of South Carolina (in this section referred to 
     as the ``State''), all right, title, and interest of the 
     United States in and to a portion (as determined under 
     subsection (c)) of the real property, including any 
     improvements thereon, consisting of approximately 24 acres at 
     Charleston Air Force Base, South Carolina, and comprising the 
     Air Force Family Housing Annex. The purpose of the conveyance 
     is to facilitate the Remount Road Project.
       (b) Conveyance to City of North Charleston Authorized.--The 
     Secretary may convey, without consideration, to the City of 
     North Charleston, South Carolina (in this section referred to 
     as the ``City''), all right, title, and interest of the 
     United States in and to a portion (as determined under 
     subsection (c)) of the real property, including any 
     improvements thereon, referred to in subsection (a). The 
     purpose of the conveyance is to permit the use of the 
     property by the City for municipal purposes.
       (c) Determination of Portions of Property To Be Conveyed.--
     (1) Subject to paragraph (2), the Secretary, the State, and 
     the City shall jointly determine the portion of the property 
     referred to in subsection (a) that is to be conveyed to the 
     State under subsection (a) and the portion of the property 
     that is to be conveyed to the City under subsection (b).
       (2) In determining under paragraph (1) the portions of 
     property to be conveyed under this section, the portion to be 
     conveyed to the State shall be the minimum portion of the 
     property required by the State for the purpose specified in 
     subsection (a), and the portion to be conveyed to the City 
     shall be the balance of the property.
       (d) Limitation on Conveyances.--The Secretary may not carry 
     out the conveyance of property authorized by subsection (a) 
     or subsection (b) until the completion of an assessment of 
     environmental contamination of the property authorized to be 
     conveyed by such subsection for purposes of determining 
     responsibility for environmental remediation of such 
     property.
       (e) Description of Property.--The exact acreage and legal 
     description of the real property to be conveyed under 
     subsections (a) and (b) shall be determined by surveys 
     satisfactory to the Secretary. The cost of the survey for the 
     property to be conveyed under subsection (a) shall be borne 
     by the State, and the cost of the survey for the property to 
     be conveyed under subsection (b) shall be borne by the City.
       (f) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyances under subsections (a) and (b) as the 
     Secretary considers appropriate to protect the interests of 
     the United States.
                                  ____



                           AMENDMENT NO. 1712

  (Purpose: To authorize the sale of goods and services that are not 
    available from any United States commercial source by the Naval 
                        Magazine, Indian Island)

       Insert at the appropriate place in the bill the following 
     new item:
       The Secretary of the Navy may sell to a person outside the 
     Department of Defense articles and services provided by the 
     Naval Magazine, Indian Island facility that are not available 
     from any United States commercial source; Provided, That a 
     sale pursuant to this section shall conform to the 
     requirements of 10 U.S.C. section 2563 (c) and (d); and 
     Provided further, That the proceeds from the sales of 
     articles and services under this section shall be credited to 
     operation and maintenance funds of the Navy, that are current 
     when the proceeds are received.
                                  ____



                           AMENDMENT NO. 1713

    (Purpose: To authorize a land conveyance, Fort Des Moines, Iowa)

       At the end of subtitle C of title XXVIII, add the 
     following:

     SEC. 2827. LAND CONVEYANCE, FORT DES MOINES, IOWA.

       (a) Conveyance Authorized.--The Secretary of the Army may 
     convey, without consideration, to Fort Des Moines Memorial 
     Park, Inc., a nonprofit organization (in this section 
     referred to as the ``Memorial Park''), all right, title, and 
     interest of the United States in and to a parcel of real 
     property, including improvements thereon, consisting of 
     approximately 4.6 acres located at Fort Des Moines United 
     States Army Reserve Center, Des Moines, Iowa, for the purpose 
     of the establishment of the Fort Des Moines Memorial Park and 
     Education Center.
       (b) Condition of Conveyance.--The conveyance under 
     subsection (a) shall be subject to the condition that the 
     Memorial Park use the property for museum and park purposes.
       (c) Reversion.--If the Secretary determines at any time 
     that the real property conveyed under subsection (a) is not 
     being used for museum and park purposes, all right, title, 
     and interest in and to the real property, including any 
     improvements thereon, shall revert to the United States, and 
     the United States shall have the right of immediate entry 
     thereon.
       (d) Reimbursement for Costs of Conveyance.--(1) The 
     Memorial Park shall reimburse the Secretary for the costs 
     incurred by the Secretary for any environmental assessment, 
     study, or analysis, or for any other expenses incurred by the 
     Secretary, for the conveyance authorized in (a).
       (2) The amount of the reimbursement under paragraph (1) for 
     any activity shall be determined by the Secretary, but may 
     not exceed the cost of such activity.
       (3) Section 2695(c) of title 10 United States Code, shall 
     apply to any amount received under this subsection.
       (e) Description of Property.--The exact acreage and legal 
     description of the real property to be conveyed under 
     subsection (a) shall be determined by survey satisfactory to 
     the Secretary. The cost of the survey shall be borne by the 
     Memorial Park.
       (f) Additional Terms and Conditions.--The Secretary may 
     require such additional

[[Page 18009]]

     terms and conditions in connection with the conveyance under 
     subsection (a) as the Secretary considers appropriate to 
     protect the interests of the United States.
                                  ____



                           AMENDMENT NO. 1714

 (Purpose: To authorize participation of regular members of the Armed 
                         Forces in Senior ROTC)

       At the end of subtitle C of title V, add the following:

     SEC. 540. PARTICIPATION OF REGULAR MEMBERS OF THE ARMED 
                   FORCES IN THE SENIOR RESERVE OFFICERS' TRAINING 
                   CORPS.

       (a) Eligibility.--Section 2104(b)(3) of title 10, United 
     States Code, is amended by inserting ``the regular component 
     or'' after ``enlist in''.
       (b) Pay Rate While on Field Training or Practice Cruise.--
     Section 209(c) of title 37, United States Code, is amended by 
     inserting before the period at the end the following: ``, 
     except that the rate for a cadet or midshipmen who is a 
     member of the regular component of an armed force shall be 
     the rate of basic pay applicable to the member under section 
     203 of this title''.
       (c) Effective Date.--This section and the amendments made 
     by this section shall take effect on October 1, 2001.
                                  ____



                           AMENDMENT NO. 1715

 (Purpose: To repeal certain limitations on the exercise of voluntary 
   separation incentive pay authority and voluntary early retirement 
                               authority)

       Strike section 1113 and insert the following:

     SEC. 1113. REPEAL OF LIMITATIONS ON EXERCISE OF VOLUNTARY 
                   SEPARATION INCENTIVE PAY AUTHORITY AND 
                   VOLUNTARY EARLY RETIREMENT AUTHORITY.

       Section 1153(b) of the Floyd D. Spence National Defense 
     Authorization Act for Fiscal Year 2001 (as enacted into law 
     by Public Law 106-398; 114 Stat. 1654A-323) is amended--
       (1) in paragraph (1), by striking ``Subject to paragraph 
     (2), the'' and inserting ``The'';
       (2) by striking paragraph (2); and
       (3) by redesignating subparagraphs (A) and (B) as 
     paragraphs (1) and (2), respectively.
                                  ____



                           AMENDMENT NO. 1716

  (Purpose: To make additional modifications to the Energy Employees 
                     Occupational Illness Program)

       In section 3151(d), strike paragraphs (1) and (2) and 
     insert the following:
       (1) In general.--Subsection (e) of section 3628 of that Act 
     (114 Stat. 1654A-506) is amended to read as follows:
       ``(e) Survivors.--(1) If a covered employee dies before 
     accepting payment of compensation under this section, whether 
     or not the death is the result of the covered employee's 
     occupational illness, the survivors of the covered employee 
     who are living at the time of payment of compensation under 
     this section shall receive payment of compensation under this 
     section in lieu of the covered employee as follows:
       ``(A) If such living survivors of the covered employee 
     include a spouse and one or more children--
       ``(i) the spouse shall receive one-half of the amount of 
     compensation provided for the covered employee under this 
     section; and
       ``(ii) each child shall receive an equal share of the 
     remaining one-half of the amount of the compensation provided 
     for the covered employee under this section.
       ``(B) If such living survivors of the covered employee 
     include a spouse or one or more children, but not both a 
     spouse and one or more children--
       ``(i) the spouse shall receive the amount of compensation 
     provided for the covered employee under this section; or
       ``(ii) each child shall receive an equal share of the 
     amount of the compensation provided for the covered employee 
     under this section.
       ``(C) If such living survivors of the covered employee do 
     not include a spouse or any children, but do include one or 
     both parents, one or more grandparents, one or more 
     grandchildren, or any combination of such individuals, each 
     such individual shall receive an equal share of the amount of 
     the compensation provided for the covered employee under this 
     section.
       ``(2) For purposes of this subsection, the term `child', in 
     the case of a covered employee, means any child of the 
     covered employee, including a natural child, adopted child, 
     or step-child who lived with the covered employee in a 
     parent-child relationship.''.
       (2) Uranium employees.--Subsection (e) of section 3630 of 
     that Act (114 Stat. 1654A-507) is amended to read as follows:
       ``(e) Survivors.--(1) If a covered uranium employee dies 
     before accepting payment of compensation under this section, 
     whether or not the death is the result of the covered uranium 
     employee's occupational illness, the survivors of the covered 
     uranium employee who are living at the time of payment of 
     compensation under this section shall receive payment of 
     compensation under this section in lieu of the covered 
     uranium employee as follows:
       ``(A) If such living survivors of the covered uranium 
     employee include a spouse and one or more children--
       ``(i) the spouse shall receive one-half of the amount of 
     compensation provided for the covered uranium employee under 
     this section; and
       ``(ii) each child shall receive an equal share of the 
     remaining one-half of the amount of the compensation provided 
     for the covered uranium employee under this section.
       ``(B) If such living survivors of the covered uranium 
     employee include a spouse or one or more children, but not 
     both a spouse and one or more children--
       ``(i) the spouse shall receive the amount of compensation 
     provided for the covered uranium employee under this section; 
     or
       ``(ii) each child shall receive an equal share of the 
     amount of the compensation provided for the covered uranium 
     employee under this section.
       ``(C) If such living survivors of the covered uranium 
     employee do not include a spouse or any children, but do 
     include one or both parents, one or more grandparents, one or 
     more grandchildren, or any combination of such individuals, 
     each such individual shall receive an equal share of the 
     amount of the compensation provided for the covered uranium 
     employee under this section.
       ``(2) For purposes of this subsection, the term `child', in 
     the case of a covered uranium employee, means any child of 
     the covered employee, including a natural child, adopted 
     child, or step-child who lived with the covered employee in a 
     parent-child relationship.''.
       In section 3151(g)(1) in the matter preceding subparagraph 
     (A), insert ``, with the cooperation of the Department of 
     Energy and the Department of Labor,'' after ``shall''.
       In section 3151(g), strike paragraph (2) and insert the 
     following:
       (2)(A) Not later than 180 days after the date of the 
     enactment of this Act, the National Institute for 
     Occupational Safety and Health shall submit to the 
     congressional defense committees a report on the progress 
     made as of the date of the report on the study under 
     paragraph (1).
       (B) Not later than one year after the date of the enactment 
     of this Act, the National Institute shall submit to the 
     congressional defense committees a final report on the study 
     under paragraph (1).
                                  ____



                           AMENDMENT NO. 1717

(Purpose: To set aside for land forces readiness-information operations 
 sustainment (PE 19640) $5,000,000 of the amount provided for the Army 
                 Reserve for operation and maintenance)

       At the end of subtitle D of title III, add the following:

     SEC. 335. FUNDING FOR LAND FORCES READINESS-INFORMATION 
                   OPERATIONS SUSTAINMENT.

       Of the amount authorized to be appropriated by section 
     301(6), $5,000,000 may be available for land forces 
     readiness-information operations sustainment.
                                  ____



                           AMENDMENT NO. 1718

  (Purpose: To require the conveyance of certain former Minuteman III 
                            ICBM facilities)

       At the end of subtitle C of title III, add the following:

     SEC. 2827. LAND CONVEYANCES, CERTAIN FORMER MINUTEMAN III 
                   ICBM FACILITIES IN NORTH DAKOTA.

       (a) Conveyances Required.--(1) The Secretary of the Air 
     Force may convey, without consideration, to the State 
     Historical Society of North Dakota (in this section referred 
     to as the ``Historical Society'') all right, title, and 
     interest of the United States in and to parcels of real 
     property, together with any improvements thereon, of the 
     Minuteman III ICBM facilities of the former 321st Missile 
     Group at Grand Forks Air Force Base, North Dakota, as 
     follows:
       (A) The parcel consisting of the launch facility designated 
     ``November-33''.
       (B) The parcel consisting of the missile alert facility and 
     launch control center designated ``Oscar-O''.
       (2) The purpose of the conveyance of the facilities is to 
     provide for the establishment of an historical site allowing 
     for the preservation, protection, and interpretation of the 
     facilities.
       (b) Consultation.--The Secretary shall consult with the 
     Secretary of State and the Secretary of Defense in order to 
     ensure that the conveyances required by subsection (a) are 
     carried out in accordance with applicable treaties.
       (c) Historic Site.--The Secretary may, in cooperation with 
     the Historical Society, enter into one or more cooperative 
     agreements with appropriate public or private entities or 
     individuals in order to provide for the establishment and 
     maintenance of the historic site referred to in subsection 
     (a)(2).


                           Amendment No. 1694

  Mr. BOND. Mr. President, I commend Chairman Kerry for his proposal to 
improve access for small business to participate in joint ventures. In 
the 1997 Small Business Reauthorization Act, we adopted provisions to 
allow small businesses to join together to compete for bundled 
contracts that otherwise would be too large for them to perform. 
However, current law requires the lead contractor to perform

[[Page 18010]]

50 percent of the value of the contract. This is still a significant 
obstacle. The Kerry/Bond amendment would allow the prime contractor to 
perform 33 percent of the contract if no other participant performs a 
greater proportion and if all other participants in the joint venture 
are small businesses.
  Mr. KERRY. Mr. President, I would like to thank Armed Services 
Committee Chairman Levin and Ranking Member Warner for their assistance 
on this amendment to the National Defense Authorization Act for Fiscal 
Year 2002. My amendment, cosponsored by Senator Bond, will help small 
businesses more effectively compete for large and/or bundled contracts.
  Everyone knows that small businesses are vital to the U.S. economy, 
accounting for 99 percent of all private sector employers, providing 75 
percent of all net new jobs, and accounting for 51 percent of private-
sector output. But what many of my colleagues may not realize is the 
vital role small businesses play in providing competition and 
innovation to our Federal procurement system. In fact, a major reason 
for the creation of the Small Business Administration was to ensure an 
adequate private sector base for the Department of Defense. It was 
actually deemed in our national security interests to have a thriving 
small business sector. And this has not changed, it is actually more 
important than ever, not just to our national security, but to our 
economic security as well.
  The amendment is based on our legislation, the ``Small Business 
Procurement Competition Act of 2001,'' and begins with one simple 
premise that has been proven time and again, when it comes to large 
Federal contracts, small businesses are at a competitive disadvantage 
because of the amounts of money involved and the large geographic areas 
these contracts may serve. The practice known as contract bundling, 
whereby separate procurement contracts are combined into one contract, 
has resulted in small businesses that do business with the Federal 
Government being placed at an even greater disadvantage. Unfortunately, 
procurement streamlining has resulted in the practice of contract 
bundling becoming more and more common.
  In fact, for Fiscal Year 2000, the Federal Government failed to meet 
its goal of 23 percent of Federal prime contracts being awarded to 
small businesses. Many experts blame the inability of small businesses 
to compete on large bundled contracts as a key factor in this decline. 
For example, the Small Business Administration's Office of Advocacy 
believes that for every $100 awarded on a bundled contract, there was a 
decrease of $33 to small businesses.
  The Small Business Procurement Competition Act that has been included 
in this bill will address this decline in two ways. First, it draws on 
an existing principle known as ``joint ventures'' and expands the 
ability of small businesses to form them. Second, it raises the 
percentage of contracts that a small business can subcontract to other 
small businesses.
  Joint ventures, whereby small businesses can team together to bid on 
a bundled contract, even if the combined entity is too large to be 
considered a small business, is not a new concept. In fact, the Clinton 
Administration began to remove some of the obstacles to the formation 
of joint ventures. Our amendment takes this initiative, cements it into 
law, and makes several improvements to help and encourage the formation 
of joint ventures.
  Many small businesses have said that they like the idea of being able 
to team with other small businesses to compete on bundled contracts, 
but they often don't know where to begin. Worse, many small businesses 
have said that, despite U.S. law, many contracts that should be 
considered bundled contracts are not, which has limited their ability 
to form joint ventures.
  To combat these deficiencies, our amendment allows for the formation 
of a small business-only joint venture to bid on any contract over the 
amount of $5 million, regardless of whether or not the contract is 
bundled. To combat the knowledge gap on this issue, our legislation 
requires that the Small Business Administration, SBA, set up a database 
of companies that are actively seeking to form joint ventures. The 
legislation also sets up a pilot program requiring the SBA to conduct 
outreach and education efforts to small businesses that want to form 
joint ventures.
  Joint ventures are not the only means to help small businesses 
compete for bundled contracts. Our amendment also changes the 
subcontracting requirements for small businesses. Under current law, a 
small business must perform at least 51 percent of the work on a 
contract to maintain its small business eligibility. Under our 
provision, a small business can subcontract up to 2/3 of the work to 
other small businesses on bundled contract, provided the prime small 
business contractor performs the greatest proportion of the work. In 
this way, small businesses can bid on larger contracts that they do not 
have the capacity to perform on their own.
  Small businesses are vital to the economic growth of the U.S. 
economy. Their innovations, the competition they provide and the jobs 
they create are just some of the reasons we must ensure the success of 
our small businesses. Taken together, these provisions will help small 
businesses by providing them with more opportunities to compete for 
Federal contracts and help maintain the national supply chain.
  As the Chairman of the Senate Committee on Small Business and 
Entrepreneurship, I have made it a priority to ensure small businesses 
receive their fair share of Federal procurement contracts. This 
legislation is an important step in fulfilling that promise.
  I would also like to thank Senator Bond for his work on another 
amendment to the National Defense Authorization Act, which I am a 
cosponsor of, to make some changes to the procurement provisions 
pertaining to small business in this legislation. I believe it is an 
important amendment and I am pleased we were able to get it included in 
the bill.
  Once again, I would like to thank Senator Bond for joining me in this 
effort, as well as Senator Levin and Senator Warner for their 
assistance and their courtesy.


                           Amendment No. 1695

  Mr. BOND. Mr. President, I appreciate the opportunity to work with 
Chairman Kerry of the Small Business Committee to improve certain 
provisions of the Small Business Act relating to Federal procurement 
policy. These provisions will enable us to do a better job of tracking 
the small business impact of contract bundling without imposing 
burdensome new reporting requirements on the Defense Department. The 
amendment will also help a new class of firm participate in our HUBZone 
program to expand contracting opportunities to small businesses that 
locate in and hire from the nation's most chronically distressed 
communities.
  The amendment revises current burdensome reporting requirements of 
the Small Business Act with respect to contract bundling, and 
eliminates corresponding provisions--which would now be moot--of the 
Defense Authorization that seek to guard DoD against those burdensome 
requirements. A new report requirement would be imposed on the SBA 
Administrator on how to improve the market analyses currently required 
by law, to make them more systematic and meaningful. DoD would not be 
required to collect new data under the revised provisions, which 
threatens to be the case under current law.
  The amendment also alters the HUBZone Act to allow small businesses 
to participate if their stock is publicly traded. Currently, the 
HUBZone law requires all HUBZone owners to be U.S. citizens. A company 
whose stock is publicly traded can never meet this requirement. The 
company does not know the citizenship of all its stockholders, and even 
if it did, it might change at any moment if someone decides to sell or 
buy shares.
  The amendment piggybacks on current Securities Exchange Act 
disclosures to meet the citizenship requirement. The law requires 
people who own 5 percent or more of a company to file

[[Page 18011]]

disclosure reports, and to file subsequent amendments if that amount 
materially changes. Under the HUBZone language proposed here, a firm 
would be deemed to meet the HUBZone citizenship requirement if no non-
citizen (individual or corporate entity organized under the laws of a 
State or the United States) has filed a disclosure indicating ownership 
of more than 10 percent of the small business concern's stock. Because 
ownership can change at any moment, the language would provide that 
this must be true at the time of application and at such other 
subsequent times as the SBA Administrator prescribes.
  One of the principal hurdles faced by small business is lack of 
access to capital. It makes no sense to exclude small businesses that 
have overcome this obstacle and gained access to the securities 
markets. This language would allow a publicly traded firm to rely 
reasonably on the disclosures they have received, so that they can 
participate in the HUBZone program. This will help stimulate new 
investment in our nation's most blighted inner cities, rural counties 
and Indian reservations, the areas targeted by the HUBZone Act.


                           amendment no. 1698

  Mr. BYRD. Mr. President, I rise to offer an amendment to address the 
serious accounting and financial management problems in the Department 
of Defense. These problems have been exhaustively detailed in reports 
by the General Accounting Office, the Department of Defense Inspector 
General's Office, and numerous independent reports on the Pentagon's 
books.
  The problems with the Department of Defense's books is not a new one. 
In 1990, Congress passed the Chief Financial Officers Act, which 
required the departments and agencies of the Federal Government to 
prepare annual audited financial statements. Eleven years later, the 
Pentagon has yet to prepare a single financial statement that can pass 
an audit. In fact, the books are so poorly kept that the folks with the 
green eye shades can't even begin to make an informed opinion on the 
Department's ledgers. As a result, no one has a clue how much the 
Department spends or what it owns.
  I first brought this issue to the attention of Secretary Rumsfeld 
during his confirmation hearing before the Armed Services Committee on 
January 11, 2001. He said at that time that he would take action on 
financial management, and he has since completed work on an important, 
comprehensive review of our military's bookkeeping. These are good 
steps, but sustained interest is needed to make progress on this issue. 
Until the problems are straightened out, this issue will need the 
personal attention of the Secretary of Defense, the secretaries of the 
military services, and many other high-level managers. The alternative 
is to have a financial management system that diverts the taxpayer's 
money from important budget items, such as training, procurement, and 
our fight against terrorism, to simply generating more waste, fraud, 
and abuse.
  My amendment capitalizes on the work done by the Armed Services 
Committee by strengthening the Senior Financial Management Oversight 
Council that is created by this bill. My amendment creates the 
Financial Management Modernization Executive Committee to establish 
guidelines for improvement of the computer systems that generate 
unreliable financial data, and makes the Executive Committee 
accountable directly to the Secretary of Defense, the Deputy Secretary, 
and the secretaries of the military services. It directs the Executive 
Committee to focus investments on improved financial systems, rather 
than continuing to spend money on systems that are hopelessly outdated.
  In this amendment, I also strengthen the reporting requirements to 
Congress. The Armed Services Committee and the Appropriations Committee 
needs to know how long it will take to implement financial reform, and 
how much it will cost. We also need to know if the Department is making 
progress in reform, or if it is falling behind. The reporting 
requirements in this amendment will allow Congress to exercise better 
oversight of the Department's financial management reforms, and they 
are an integral part of this amendment.
  I thank my colleague, Senator Grassley, for working with me on this 
important issue. He has long been an advocate of improving accounting 
and business practices in the Pentagon, and his knowledge and 
experience in financial management issues contributed greatly to the 
text of this amendment. I look forward to working with him in the 
future to see that the Department effectively implements the needed 
reforms.
  I ask my colleagues to support this important amendment.
  Mr. GRASSLEY. Mr. President, I come to the floor today to cosponsor 
an amendment with the very distinguished gentleman from West Virginia, 
Senator Byrd.
  Senator Byrd has crafted a very important and thoughtful piece of 
legislation designed to help the new Secretary of Defense bring some 
financial management reform to the Pentagon.
  This legislation is the end result of a series of questions Senator 
Byrd raised at a hearing before the Armed Services Committee on January 
11th. This was the hearing on the nomination of Mr. Rumsfeld to be the 
next Secretary of Defense.
  Senator Byrd's questions pertained to the Pentagon's continuing 
inability to earn a passing grade, or ``clean'' audit opinion, on its 
annual financial statements.
  Under the Chief Financial Officers or CFO Act, the Pentagon must 
prepare financial statements each year. These are supposed to be an 
accurate reflection of all the department's assets and liabilities. The 
financial statements are then subjected to an independent audit by 
either the General Accounting Office or the Inspector General.
  Senator Byrd's questions pertained to the department's poor 
performance on the latest audit.
  Senator Byrd questioning with this telling point: ``DOD's own 
auditors say the department cannot account for $2.3 trillion, I repeat 
$2.3 trillion, in transactions in one year alone.''
  I believe that Senator Byrd's question had a profound effect on Mr. 
Rumsfeld. I think they sent shock waves through the whole department.
  Since that time, Senator Byrd's staff and my staff have been working 
together to find a remedy.
  Our amendment is a byproduct of that process, and Senator Byrd 
deserves most of the credit for advancing this initiative through the 
committee review process.
  It is a great honor and privilege for the Senator from Iowa to work 
with someone of Senator Byrd's stature. Senator Byrd is a highly 
respected leader in this body and throughout our government. And when 
he tells the Pentagon, or any other agency for that matter, to shape up 
and fly right, they pay attention. They do what he asks.
  As many of my colleagues know, I have been wrestling with this 
problem for a number of years. And quite frankly, I have not had a 
whole lot of success in getting the job done.
  With Senator Byrd's leadership, I am now confident of success. With 
his leadership, I believe that meaningful reform is possible.
  And my confidence is further reinforced by the attitude of the new 
leadership across the river over in the Pentagon.
  My gut sense is that Mr. Rumsfeld was truly shocked by Senator Byrd's 
assessment.
  As a former chief executive officer in a large corporation, Mr. 
Rumsfeld knows and understands the importance of having accurate 
financial information at his fingertips. It's absolutely essential for 
making informed decisions. It is essential for success.
  He understands that the financial statement audits are a valuable 
diagnostic tool. They allow us to examine the patient's vital signs. 
It's kind of like doing a cat-scan on the government bookkeeping 
operation. If the books are in order and the numbers add up, it's so 
easy to roll them all up into a top-line financial statement that can 
stand up to scrutiny by auditors.
  Mr. Rumsfeld grasped the magnitude of the problem immediately. He 
knows

[[Page 18012]]

that the Secretary of Defense cannot possibly make good decisions with 
lousy information.
  Having accurate, up-to-date financial information at his fingertips 
is mandatory--especially today when we appear to be on the brink of 
war.
  The demand for financial resources is starting to escalate rapidly. 
If DOD does not know what it has in the inventory today and how much it 
is spending from one day to the next, then how could it possibly know 
what it needs?
  I want to be certain that my colleagues understand the goal of the 
CFO Act. The key to this process is not passing some audit with flying 
colors. That's not it at all. This is no mickey mouse bean-counter 
exercise.
  The goal is to have accurate financial information in the hands of 
those responsible for making decisions. A ``clean'' opinion tells us 
that they will have it when they need it. A ``clean'' opinion will tell 
us that they are in a position to make informed decisions about what 
needs to be done.
  A disclaimer of opinion, by comparison, says they don't have it and 
can't make informed decisions. That's bad, but that's exactly where DOD 
is today.
  Secretary Rumsfeld's response to Senator Byrd's questions was so 
encouraging. It was music to my ears.
  Secretary Rumsfeld's response tells me that he understands the 
problem completely, and he wants to solve it. He knows he has to solve 
it, if he is to be a successful and effective secretary.
  Secretary Rumsfeld made a personal commitment to me to clean up the 
department's books.
  His Chief Financial Officer, Mr. Dov Zakheim, has made a personal 
commitment to me to fix the books.
  And Mr. Zakheim's senior deputies, like Mr. Larry Lanzillotta, have 
made a personal commitment to me to fix the books.
  So, I now see a willingness in the Pentagon to get a handle on this 
problem. That's half the battle right there, the will to get the job 
done.
  To my knowledge, that attitude never existed at the Pentagon in the 
past.
  In the past, I fought endlessly with Mr. Hamre and his predecessors. 
They denied the problem even existed. Clearly, we have moved way beyond 
that stage.
  Mr. Rumsfeld and his team understand the problem and want to fix it. 
If the will is there, as I think it is, I think we can succeed this 
time.
  I would like to assure my colleagues that this is not an attempt to 
legislate a solution. So long as the Secretary is committed to reform, 
a legislative solution is unnecessary.
  I see our amendment more as a device to help the Secretary get the 
job done.
  Our only objective is to help the department acquire the tools it 
needs to put accurate, up-to-date financial information at the 
secretary's fingertips.
  First, our amendment establishes a Senior Financial Management 
Modernization Executive Committee.
  This group will supervise the acquisition of highly integrated 
accounting systems and computer technology.
  These systems will be designed to produce reliable financial 
statements. Those capabilities simply do not exist today.
  This group will report directly to Secretary Rumsfeld.
  Second, the amendment provides some much needed relief. Right now, 
the Inspector General is pouring audit resources down a rat hole. It 
makes no sense whatsoever to audit financial statements that are 
notoriously unreliable. It's a total waste. That practice will be 
suspended temporarily.
  Third, while some audits are suspended, the Secretary must provide an 
estimate of when reliable financial statements will be available for 
audit.
  Fourth, the department is put on notice that it has four years to get 
the new systems up and running.
  Mr. President, every member of this body understands that the 
elimination of the terrorist threat to this country is the top defense 
priority for the foreseeable future. We understand and accept that .
  Countering this terrible threat must take priority over everything 
else.
  At the same time, I hope that efforts to ferret out fraud, waste, 
abuse and mismanagement are not left behind in a cloud of dust. They 
have a place, even in the current environment.
  It will be up to Secretary Rumsfeld to decide how and where reform 
fits into the new priorities.
  We have been repeatedly told that the coming campaign against 
terrorism will be long and difficult. If it is long and difficult as 
predicted, then we will need to be certain that we don't waste precious 
resources. Waste and mismanagement could get in the way of our efforts 
to win the war against terrorism.


                           Amendment No. 1703

  Mr. ALLARD. Mr. President, I am pleased to be introducing with 
Senator Bob Smith an amendment to improve the organization and 
management of the Department of Defense with respect to space programs 
and activities.
  This amendment is more important than ever. We are about to engage in 
an extraordinary struggle against the forces of terrorism. This will be 
a far-flung and difficult fight. Good intelligence will be at a premium 
and our space assets play a key role in achieving that.
  We must do whatever we can to be sure that all our military assets 
are managed as efficiently and effectively as possible. This amendment, 
which is based on the recommendations of the Commission to Assess 
United States National Security Space Management and Organization, 
(also known as the Space Commission), is intended to do just that for 
our space assets.
  The Commission looked at current DOD organization and management as 
it pertains to the development and implementation of national-level 
guidance, establishing requirements, acquiring and operating systems, 
and planning, programming and budgeting for national security space 
capabilities. The Commission found that the United States is dependent 
on space, creating vulnerabilities and demands on our space systems 
requiring space to be recognized as a top national security priority. 
The Commission also concluded that these new vulnerabilities and 
demands are not adequately addressed by the current management 
structure at the Department. The Commission found that a number of 
space activities should be merged, chains of command adjusted, lines of 
communications opened and policies modified to achieve greater 
responsibility and accountability. Senator Smith and I agree, and 
believe that space assets will be critical in the coming conflict with 
the forces of terrorism. That is why we are introducing this amendment.
  The Department is making some of these changes today. However, we 
believe Congress should show its support to our military men and women 
by providing the Secretary with authority to realign his Department to 
make it more effective.
  This legislation will provide the Secretary of Defense with the tools 
he needs for more effective management and organization of space 
program and activities. Specifically the legislation will:
  Provide discretionary authority for the Secretary of Defense to 
establish an Under Secretary of Defense for Space, Intelligence and 
Information. Right now, the Secretary does not have this authority. 
While he has decided for the moment not to adopt this Commission 
recommendation, the amendment would provide him the authority to do so 
if he so chooses;
  It would establish the Air Force as the Executive Agent for DOD space 
programs for DOD functions designated by the Secretary of Defense;
  It would assign the Under Secretary of the Air Force as the Director 
of the NRO and directs the Under Secretary of the Air Force to 
coordinate the space activities of DOD and the NRO;
  It would establish a budget mechanism to provide a better 
understanding of the resources we dedicate to space programs;
  It would direct the Under Secretary of the Air Force to establish a 
space career field to promote the growth of specialists in space 
programs, doctrine, and operations. A budget mechanism and space career 
field will both help

[[Page 18013]]

provide the needed focus on space and space activities;
  And finally, the amendment would provide for joint service management 
of space programs to the maximum extent practicable, to assure that the 
Army, Navy, and Marine Corps stay actively involved in space programs.
  This amendment will provide DOD the authority and flexibility to move 
faster and more efficiently in its reorganization and help provide the 
focus and attention that space programs and activities deserve. This is 
imperative in this dangerous world, in which our forces need the best 
technology, training, and support.
  I want to thank my colleague for joining with me in this effort to 
provide the Department the tools it needs to make space a top national 
security priority. We welcome all Senators to join us in support of 
this important legislation.
  Mr. SMITH of New Hampshire. Mr. President, I am glad that the Space 
Management Organization Amendment to this year's National Defense 
Authorization Act has been approved. As you all know, space issues have 
long been a keen interest of mine, even long before I served as the 
Strategic Forces Subcommittee Chairman. My interest is not derived from 
my New Hampshire industry constituents, because there is very little 
space business in my State. Rather, my interest in space is derived 
from my firm belief that whoever controls space will win the next war. 
More and more our deployed forces are relying on the ``reach'' that 
space communications provide and the ``high ground'' that space 
surveillance affords. Space is absolutely critical to future war 
fighting! That is why I feel proper management and operations of our 
space assets is absolutely critical. I look forward to working with 
Senator Reed as the Chairman of the Strategic Forces Subcommittee to 
further the role of space in our strategic planning. This amendment is 
intended to capitalize on the expertise the Space Commission brought 
together, the Nation's greatest national security space experts from 
the military and civilian world. Ironically, military space operations 
are not usually run by senior officers with any space experience. 
Surely this lack of experience has some impact on their ability to 
leverage, to the maximum extent, the very complex high-technology 
military space assets under their command. In researching this issue, I 
found that the reason many of these officers don't have space 
experience is that they are required to be pilots in the ``dual-
hatted'' relationship that U.S. Space Command has with the North 
American Aerospace Defense Command, NORAD. Because of the complexity of 
training to fly aircraft and maintain satellites, you rarely find 
officers with experience in both to staff appropriately U.S. Space 
Command, with space experts, and simultaneously meet the NORAD 
requirement for pilots. I think this current situation impacts our 
ability to leverage our space assets, precludes our best space officers 
from holding the highest positions, and perpetuates a culture in the 
Air Force that SPACE is secondary to AIR, despite the rhetoric to the 
contrary. This amendment is not intended to be an affront to the 
current or past Commanders of the U.S. Space Command or the officers 
who have served honorably under them. Rather, this amendment is 
intended to acknowledge that we have a defense space management issue 
and to seize the opportunity to correct it. Space is growing in 
importance as shown in the Gulf War, the Balkans and as will be 
demonstrated in the upcoming war against terrorism. It will be critical 
to winning the next war, and we need to establish the best space 
management and operations system that this Nation can bring to bear.


                           Amendment No. 1705

  Mr. FEINGOLD. Mr. President, I have two amendments regarding the V-22 
Osprey program. I understand that these amendments have been accepted, 
and I thank the managers, the Chairman and the Ranking Member of the 
Armed Services Committee, for their cooperation on these important 
amendments.
  The Osprey program has a troubled history and an uncertain future. 
Serious allegations and serious questions continue to cloud this 
program. Thirty Marines have died in Osprey crashes since 1991. Many 
questions regarding the accuracy of maintenance records and the safety 
and viability of this aircraft remain unanswered. We should proceed 
with caution, and we should have all the facts on this program.
  I share the Armed Services Committee's concern about ``how the Marine 
Corps and the Air Force are going to meet the requirements established 
for the V-22 program,'' and I commend the Committee for including 
language in the underlying bill that directs the Department of Defense 
to conduct a review of potential alternatives to this troubled 
aircraft.
  One of my amendments will require the Defense Department to submit a 
report to Congress regarding the status of the Osprey program. This 
report will be submitted to the Congress no later than 30 days before a 
decision to resume test flights of the Osprey. The report will include 
a description of how the Department is implementing or plans to 
implement the recommendations of the Panel to Review the V-22 Program. 
This Panel, which was formed by former Secretary of Defense William 
Cohen following the December 2000 Osprey crash that killed four 
Marines, has recommended that the program be restructured and enter a 
new ``Development Maturity Phase'' during which the Panel's design and 
testing recommendations would be implemented.
  In addition, the Department will be required to provide a full 
analysis of the deficiencies in the V-22's hydraulic system components 
and flight control software and the steps that have been taken to 
correct these deficiencies. There are many questions about specific 
components of this experimental tilt-rotor aircraft, including the 
hydraulic system and the flight control software. Extensive problems 
with the Osprey's hydraulic system components is one of the principal 
concerns that has been cited in numerous reports, including the report 
of the Panel to Review the V-22 Program; the report of the Judge 
Advocate General Manual investigation into the December 2000 Osprey 
crash; reports by the General Accounting Office and the Defense Science 
Board; and the November 2000 report of the Director of Operational 
Testing and Evaluation. Further, the Panel recommended that no further 
test flights of the Osprey take place until the flight control software 
has been redesigned. The hydraulic system and the flight control 
software have been blamed for the December 2000 crash.
  In addition, there are a number of concerns regarding the 
aeromechanics of the Osprey, including the so-called ``vortex ring 
state'' phenomenon that caused the April 2000 crash that killed 19 
Marines. The Navy commissioned the National Aeronautics and Space 
Administration, NASA, to conduct a study of the tilt-rotor 
aeromechanics, including the vortex ring state and autorotation. The 
Department also will be required to include in its report to Congress 
an assessment of NASA's recommendations on tilt-rotor aeromechanics.
  My second amendment would require the Department of Defense to 
provide notification to Congress thirty days before the resumption of 
V-22 test flights of all waivers of any item, capability, or other 
requirement specified in the Joint Operational Requirements Document, 
JORD, for the V-22, including the justification for such waivers.
  As has been noted in reports including the final report of the Panel 
to Review the V-22, the November 2000 report of the Director of 
Operational Testing and Evaluation, and the Armed Services Committee 
report accompanying this bill, there are a number of concerns regarding 
the items that were waived during operational testing of the V-22. 
These include: the aircraft flight envelope and clearance for air 
combat maneuvering; defensive weapons systems; flight testing in bad 
weather conditions such as icing; nuclear, chemical, and biological 
weapons pressure protection; and the cargo handling system. The 
November 2000 report of the Director of Operational Testing and 
Evaluation states that

[[Page 18014]]

``several of these waived capabilities impact the operational 
effectiveness and suitability of the MV-22.''
  My amendment will help to provide Congress with a more complete 
picture of the V-22 testing program by requiring the Department of 
Defense to provide a notification of all waivers and the justification 
for these waivers prior to a resumption of V-22 test flights.
  Again, I thank the Chairman and the Ranking Member for accepting 
these amendments.
  Mr. BUNNING. Mr. President, the Armed Services Committee approved an 
authorization increase of $10 million over the budget request for 
Combat Vehicle and Automotive Advanced Technology ``to support the 
goals of Army transformation''. The report states that ``of this 
amount, $5 million would be used for research into lightweight steels, 
vehicle weight and cost reduction, corrosion control, and vehicle 
architecture optimization. The committee notes that novel light truck 
architectures combined with advanced structural materials could reduce 
vehicle weight without degrading performance or increasing costs, and 
could support the Army's transformation into a lighter, more lethal, 
survivable and tactically mobile force.''
  This increase refers to the research effort, competitively selected 
by the Army in fiscal year 1999, titled ``Improved Materials and 
Powertrain Architectures for 21th Century Trucks'' (IMPACT). The IMPACT 
program will cover light/medium military payloads up to 5 tons, 
including applications with an open or closed bed configuration.
  Kentucky is a large commercial producer and Army Base user of such 
vehicles, and through the University of Louisville's involvement in 
this effort, plays an important research role in their design and 
testing. The military will realize significant procurement and O&M cost 
savings as a result.
  Mr. LIEBERMAN. Mr. President, it is with great regret that I am come 
to the floor today to discuss Senator Inhofe's amendment to this 
legislation. We are a nation poised for battle against a shadowy enemy 
that has as its aim the destruction of America and all that we stand 
for. Our President has prepared us for a sustained military campaign. 
At this time, there can be no higher priority than to pass this 
critically important legislation to support our armed services and the 
men and women who we will send into this battle to defend our freedom. 
Let us join together as Americans to provide our military with the 
funds they need, unencumbered by the distractions of debates better 
argued on another day.
  Senator Inhofe is right to be concerned about our national energy 
policy. I think all of us in this Chamber share with the American 
people a sense of concern that we lack a comprehensive national energy 
plan for the future; one that combines the promises of new technologies 
and conservation with the important contribution of traditional fossil 
fuels in a responsible, efficient and clean manner.
  But the time to debate the merits of the energy policy proposed by 
the White House and passed by our colleagues in the House is not today, 
and certainly not as an amendment to the defense authorization bill. We 
are talking about a debate of a 500-page, $40 billion energy package. 
The Joint Tax Committee has estimated that it will give $33.5 billion 
in tax breaks to industry over the next ten years. We cannot afford to 
be that fiscally irresponsible as we take on the new challenges of our 
war on terrorism.
  More controversially, Senator Inhofe's amendment would open the 
Arctic National Wildlife Refuge for oil production. In the view of 
many, myself included, opening the refuge is not just bad environmental 
policy, it is bad energy policy and would do little to reduce our 
dependence on foreign oil. Most importantly, the refuge would not 
provide a drop of oil for at least a decade. This 10-year figure is a 
conservative estimate that was made by the Department of Interior under 
President Bush's father. Hopefully, our current crisis will have passed 
ten years from now.
  Debating the merits of these, and other, provisions will take time. 
There will be deep divisions and much disagreement. As Senator 
Murkowski said just last week, consideration of energy legislation on 
the defense bill is ``inappropriate. [T]here is a place for the 
consideration of domestic energy development. * * * That belongs in the 
energy bill where it should be debated by all individual members.''
  The security of our energy supply is an essential question as we 
enter this phase in our history, and we will have that debate. But this 
is not the time nor place. We have just lost nearly seven thousand of 
our citizens to terrible attacks, and the Senate must put its 
differences aside. Now is the time for unity of purpose. Let us leave 
this debate for another day and focus with moon-shot intensity on the 
task at hand: supporting our armed forces. We cannot afford the 
distraction that this amendment would create.
  Mr. CLELAND. Mr. President, as Chair of the Senate Armed Services 
Personnel Subcommittee, I am very pleased to have joined with Senator 
Tim Hutchinson to introduce an important change to the current method 
for hiring Department of Defense physicians, pharmacists, nurses, and 
other health care professionals.
  Like the private sector, the Department of Defense has been beginning 
to experience difficulties in recruiting certain health care 
professionals. At both the June 14, 2001, Senate Veterans' Affairs 
Committee hearing on the looming nursing shortage and the June 27, 
2001, Governmental Affairs Subcommittee hearing on the Federal 
Government's role in retaining nurses for delivery of federally funded 
health care services, I emphasized an alarming statistic that the 
Federal health sector, employing approximately 45,000 nurses, may be 
the hardest hit in the near future with an estimated 47 percent of its 
nursing workforce eligible for retirement by the year 2004.
  The need for military health care workers will be further intensified 
with the increased need for action by our national security forces in 
light of last week's terrorist attacks on America. Currently, the 
Office of Personnel Management, OPM, must process all applications and 
the response times range from 115 to 161 days. This protracted 
processing time contributes to the shortage of needed staff and 
sometimes losing a qualified applicant. The Department of Veterans 
Affairs, VA, already has this authority and has reported an advantage 
over other Federal agencies and a more equal playing field with the 
highly competitive private sector in recruiting needed health care 
staff.
  I urge my colleagues to support our amendment to the Defense 
Authorization bill to give the DoD this needed change in their 
regulations for hiring the health care staff needed to care for our 
servicemen, women and families. Now, more than ever we need to give 
them all the tools they need to fulfill their vital mission.
  Ms. COLLINS. Mr. President, I rise today to discuss the importance of 
energy policy to our national security and to urge my colleagues to 
speed passage of the Department of Defense Authorization bill.
  A sound energy policy is critical to our Nation's security. The 
United States is currently 56 percent dependent on foreign oil. By 
2020, this number could rise to 70 percent. At that time, over 64 
percent of the world's oil exports will come from Persian Gulf nations. 
I shudder to think what could happen if we allow ourselves to not only 
become so dependent on foreign oil, but also for our nation to become 
so dependent on such an unstable part of the world.
  Senator Chuck Schumer and I have spent a great deal of time 
developing a balanced, bipartisan energy plan which both increases 
supply and decreases demand. Our plan would increase American self 
reliance by reducing the need for energy imports. Our plan would also 
benefit consumers by reducing energy prices. We have a lot of good 
ideas, and, at the right time and on the right vehicle, we would like 
the opportunity to have them considered by the Senate.
  However, now is not the right time and the Defense Authorization bill 
is

[[Page 18015]]

not the right vehicle. Our first priorities must be to provide 
assistance to victims, to prevent future attacks, and to punish those 
responsible for the horrible acts of terror that occurred on September 
11. A sound energy policy is critically important to the long-term 
viability of our national defense, as well as to virtually every 
segment of society. We cannot, however, respond to terrorist attacks by 
rushing through a controversial energy bill that will affect the course 
of domestic policy in the United States for decades to come.
  Indeed, California has shown us what can happen when poor energy 
policies are hastily adopted. Californians will suffer from excessive 
energy prices for years upon years as a result of a poorly conceived 
energy plan. We should not risk similarly burdening all Americans by 
hastily attaching energy legislation to a defense bill.
  Issues of timing and appropriateness aside, some of the energy 
proposals that have been heralded as necessary in the wake of the 
terrorist attacks of September 11 are in fact poor energy policy and 
poor environmental policy. I find particularly disingenuous the 
argument that we need to make an immediate decision on opening the 
coastal plain of the Arctic National Wildlife Refuge to oil drilling.
  Drilling in ANWR will not provide any oil in time to help fuel our 
forces fighting the scourge of terrorism. If we were to open ANWR to 
oil drilling today, it would still take up to 10 years for the oil to 
make it to market. Furthermore, according to a report by the US 
Geological Survey, there is only about a 6-month supply of economically 
recoverable oil in ANWR. Clearly, 6 months of oil 10 years from now 
won't do much to help America respond to the terrible tragedies of 
September 11.
  We can achieve greater and more immediate energy security by 
increasing our energy efficiency. According to one scientist who 
testified before the Senate Government Affairs Committee last year, the 
United States could cut reliance on foreign oil by more than 50 percent 
by increasing energy efficiency by 2.2 percent per year. This is a much 
greater benefit than the few percent improvement that drilling in ANWR 
would provide, and the benefits could start almost immediately--not in 
10 years. I note that the United States has a tremendous record of 
increasing energy efficiency when we put our minds to it: following the 
1979 OPEC energy shock, the United States increased its energy 
efficiency by 3.2 percent per year for several years. With today's 
improvements in technology, 2.2 percent is easily attainable.
  In addition, Senators Feinstein, Snowe, Schumer and I introduced 
legislation earlier this year that would save consumers a million 
barrels of oil per day and billions of dollars by increasing CAFE 
standards for SUVs. That legislation would do far more to increase our 
energy security than would drilling in the Arctic.
  We should also do more to promote alternative fuels. According to an 
analysis prepared by the Department of Energy, if only 10 percent of 
the gasoline in American cars were replaced with alternative fuels, the 
price of oil would fall by $3 per barrel and Americans would save over 
$20 billion a year, in addition to greatly improving our energy 
security.
  The chair and ranking members of the Energy Committee, Senators 
Bingaman and Murkowski, have put a tremendous amount of effort into 
developing comprehensive energy proposals. Each of their proposals 
contain many, many excellent provisions. I would like to thank them and 
all members of the energy committee for their hard work. However, I 
must emphasize that their work is too important, and the implications 
for the entire Nation too significant, to be hurriedly attached to 
another bill without adequate time for debate.
  We need to adopt balanced legislation to increase our energy 
security, but we need to do so in a rational manner. Energy security is 
too important not to be addressed on its own merits by the full Senate. 
Furthermore, our defense needs are too important not to allow the 
Defense Authorization bill to go forward. Senators Levin and Warner 
have worked extremely hard on that bill, and have put together a bill 
that is critical for the defense of our Nation. I implore all of my 
colleagues, please, for the good of America, speed passage of the 
Defense Authorization bill.
  Mr. BINGAMAN. Mr. President, I rise in support of an amendment to S. 
1438, the fiscal year 2002 National Defense Authorization Act, to 
provide funds badly needed for two vital test support activities in the 
Department of Defense. The Big Crow program provides DoD with highly 
sophisticated airborne electronic warfare capabilities that enable us 
to test our newest weapon systems and technologies in a realistic 
battle environment in which electronic warfare is likely to be used. 
The system can also be used operationally if a requirement suddenly 
occurs. The Defense Systems Evaluation, DSE, program provides aircraft 
to replicate enemy and friendly aircraft in testing Army air defense 
programs and technology. Both of these programs provide vital test 
support assets used by all the military services. Unfortunately, it is 
typical for programs that provide cross-service support to be 
inadequately funded by their parent service organization. This year's 
President's budget request did not seek any funding for these programs, 
perhaps relying on the Congress, once again, to provide the emergency 
funds needed to keep them operating.
  Thus we find ourselves again this year, seeking the funding needed 
for these two programs in order for them to continue to provide vital 
test support activities for all of the military services. The 
amendment, which Senator Domenici and I offer, will provide the minimum 
necessary funding to enable Big Crow and DSE to operate during fiscal 
year 2002.
  There are other test support programs in the DoD that suffer the same 
circumstance as the two for which I am seeking funding. They refer to 
them in the Pentagon as ``the orphans.'' The Defense Science Board, 
DSB, recently completed a review of operational testing and evaluation 
in the Department of Defense and published a report containing a number 
of significant recommendations about how to improve that process to 
make it more effective and efficient. The DSB recommended that DoD seek 
ways to encourage and implement joint service testing. Among their 
recommendations, the DSB endorsed budget oversight responsibility for 
orphan programs such as Big Crow and DSE to the Director, Operational 
Test and Evaluation in the Office of the Secretary of Defense. Actual 
test and evaluation activities would remain the province of the 
military services.
  This year's Defense Authorization bill reported out by the Armed 
Services Committee contains a provision requesting the Secretary of 
Defense to review the DSB report and to submit recommendations 
regarding its implementation with the budget request submission for 
fiscal year 2003. I am hopeful that the Secretary will endorse the DSB 
findings so that the Department will finally exercise appropriate 
oversight and support for cross-service test activities. In the 
meantime, the amendment I am introducing is necessary to keep those 
essential test activities underway. I urge my colleagues to support its 
adoption.
  Mr. LEVIN. I thank the Chair.
  Mr. WARNER. Madam President, I urge the adoption of the amendments.
  The PRESIDING OFFICER. The amendments have been agreed to by 
unanimous consent.
  Mr. WARNER. Madam President, I am not hearing.
  The PRESIDING OFFICER. The amendments were agreed to by unanimous 
consent.
  Mr. WARNER. Fine.
  If it requires that I now move to reconsider the vote and to lay that 
motion on the table, I do that.
  The PRESIDING OFFICER. That was part of the unanimous consent 
agreement.
  Mr. WARNER. Fine.
  Now, Madam President, first, the chairman and I, together with the 
two senior appropriators of the Senate and our counterparts in the 
House, started today at the Pentagon, with the Secretary of Defense, 
his senior staff, and

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the designated new Chairman of the Joint Chiefs of Staff.
  The chairman and I open every day expressing our profound gratitude 
to the men and women of the Armed Forces and their families, and 
particularly our concerns are everlasting for those who suffered loss 
of life and injury, and the families associated with those victims on 
September 11.
  After this meeting, I walked around again to that site where that 
plane committed a terrorist act against the symbol of the U.S. military 
strength, the Department of Defense.
  I am pleased to report that, in my judgment, the Secretary is moving 
forward on a broad range of fronts to address all issues that the 
President, in his memorable speech, raised before the Congress.
  Expressing for myself, and I think all others, we have tremendous 
confidence in the men and women of the Armed Forces in their ability to 
carry out the diverse set of missions, any one of which may face them 
at any time as we address the terrorist acts inflicted on the country, 
and to take every step to prepare that it shall not be repeated.
  I commend our President and, indeed, the Secretaries of Defense and 
State, who were here yesterday and briefed almost 90 Senators on a wide 
range of issues.
  So the consultation between the executive branch and the legislative 
branch, particularly those of us who have the oversight responsibility, 
I think is more than adequate and certainly within the spirit of all 
the various laws, beginning with our Constitution, which says that the 
Senate and the House, as a congress, are a coequal branch of the 
Government.
  I join with my distinguished chairman in saying how important this 
bill is for the men and women of the Armed Forces. As we sat there at 
our breakfast this morning, there were further announcements on callups 
and movements of these individuals in uniform and the impact on their 
families.
  It is absolutely imperative we move forward with this bill. On the 
matters that were addressed last night, which for a period of time held 
up consideration of this bill, those Senators were acting within their 
rights as Senators on matters which are of great concern. I am hopeful 
that those two issues can be resolved.
  As our chairman said, Senator Daschle, Senator Lott, and Senator Reid 
are around the clock working on these issues, together with other 
Senators.
  So I am optimistic that we can move forward and continue to work on 
this bill on Monday and proceed to a resolution and passage in a timely 
way to show that the Senate of the United States, in joining the House 
of Representatives, is prepared to have a bill to go to the President 
shortly, authorizing the very special needs we have at this time in our 
history.
  Mr. President, I yield the floor and I thank my chairman. We have 
been working together for at least 23 years. We have more work to do.
  Mr. LEVIN. Neither of us shows it in terms of the youthful visage we 
present.
  Mr. WARNER. Whatever you say.
  I thank my chairman. And I hope he has a safe journey wherever he is 
traveling on this important observance of the religious holiday.
  Mr. LEVIN. We not only want to thank our good friend from Virginia 
for those thoughts about the religious holiday--which I am now going to 
leave here to celebrate--but I want to thank him for the sensitivity 
which he has shown to that issue and to every other issue that involves 
personal lives. He has consistently done that for 23 years. It is part 
of his makeup. He has very much worried whether I would be able to 
leave here in time today to get to synagogue. I very much appreciate 
his consideration.
  Mr. WARNER. Madam President, I thank my colleague for his remarks.
  I believe we would be able to say to the Senate, having consulted 
with the distinguished majority leader and Republican leader, that in 
due course they may come to this Chamber with regard to certain 
procedural situations which would address our return to this bill on 
Monday. I do not want to prejudge their final statement, but I am 
optimistic they will be forthcoming and we can reach resolution 
procedurally on some of our matters.
  Mr. LEVIN. Talking about optimism, as I mentioned to my friend from 
Virginia, I have been optimistic since last night that we were going to 
be able to work out the issue which temporarily held us up yesterday. 
That one now seems very resolvable.
  There is one big problem relative to a matter that is not related to 
this bill. That is the only problem that I see in the way. But our 
leaders will have more to say about that in a few minutes.
  Mr. WARNER. I yield the floor and suggest the absence of a quorum.
  The PRESIDING OFFICER (Mr. Dayton). The clerk will call the roll.
  The senior assistant bill clerk proceeded to call the roll.
  Mr. TORRICELLI. Mr. President, I ask unanimous consent that the order 
for the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.

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