Extending Multi-Year Procurement Authority for F-18 Aircraft

Floor Speech

Mr. TAYLOR. Madam Speaker, I move to suspend the rules and pass the bill (H.R. 6102) to amend the National Defense Authorization Act for Fiscal Year 2010 to extend the authority of the Secretary of the Navy to enter into multiyear contracts for F/A-18E, F/A-18F, and EA-18G aircraft.

BREAK IN TRANSCRIPT

Mr. TAYLOR. I ask unanimous consent that all Members have 5 legislative days within which to revise and extend their remarks on the bill under consideration.

BREAK IN TRANSCRIPT

Mr. TAYLOR. Madam Speaker, I yield myself such time as I may consume.

Madam Speaker, I rise today in support of H.R. 6102, a necessary amendment to section 128 of the Fiscal Year 2010 National Defense Authorization Act which granted permission for the Secretary of the Navy to enter into a multiyear procurement contract for F/A-18 series aircraft.

Madam Speaker, I mention this is a necessary amendment, and I ask the patience of the House as I briefly explain the technical issue in law which will prevent the Navy from entering into this cost-saving contract unless the House passes this bill and it is taken up in the Senate and passed before the end of this month.

In the 2010 National Defense Authorization Act, Congress granted permission to the Navy for a multiyear contract if they could meet the intent of the requirements contained in title 10 of the United States Code for projected cost savings. The authority granted the Navy one-time permission to miss the title 10 reporting timelines as long as they submitted the required reports by March of this year. The Navy subsequently reported the significant cost savings this type of contract would achieve but missed the reporting requirement by a month, due to a variety of factors.

As a result of the missing of this reporting requirement, the letter of the law prevents them from entering into this cost-savings contract. To fix this new problem, this House subsequently agreed to the exact language contained in this bill when H.R. 5136, the Fiscal Year 2011 National Defense Authorization Act, passed the House in May.

This stand-alone bill is necessary because the Senate has yet to take up the Fiscal Year 2011 National Defense Authorization Act, which means we may not have an authorization act signed into law by the end of this fiscal year.

Madam Speaker, this is not an argument about the number of strike fighters the Navy needs. That is a debate for another day. This is an argument that we know that we can save hundreds of millions of dollars by using a multiyear contract to purchase the remaining 84 aircraft that are scheduled to be built.

The majority of economic savings in a multiyear contract come from savings in the cost of materiel and equipment. As any businessman or -woman who has been successful will tell you, the more of any item you order, the lower the per-unit cost will be. In this case, a multiyear contract will allow the prime vendor, in this case the Boeing Company, to contract with their vendor supply base for the materiel and equipment for the remaining 84 aircraft all at once instead of contracting for 25 to 30 per year. They will get a much better price with the larger order and save our Nation $590 million. Madam Speaker, with just the savings on this contract alone the Navy will be able to purchase an additional Littoral Combat Ship.

Madam Speaker, an almost $600 million savings is too large a figure just to sweep under the rug. The bill that I offer today along with my cosponsor, the gentleman from Missouri (Mr. Akin), and, I must add, strongly supported by the Chief of Naval Operations, Admiral Gary Roughead, and the Secretary of the Navy, Ray Mabus, will allow the Navy to enter into this contract by the end of this month. I am assured by Assistant Secretary of the Navy Stackley that all the contracting negotiations are complete, and, as soon as this bill is passed by the House and Senate and signed into law by the President, the Navy and the Boeing Company will complete the contract.

Madam Speaker, to use a phrase popular today, this is a ``no-brainer.'' I urge my colleagues to support this bill which will result in an almost $600 million savings to the taxpayers.

I reserve the balance of my time.

BREAK IN TRANSCRIPT

Source