Statement of Administration Policy: S. 2638 - National Defense Authorization Act for FY 1987

(Senate)
(Sen. Goldwater (R) Arizona)

The Administration supports Senate passage of S. 2638 at a higher authorization level than was reported by the Committee on Armed Services. The Administration also supports the adoption of amendments to:

Title II

— authorize the full request for the Rolling Airframe Missile which is an important NATO cooperative program;

— authorize the Small Intercontinental Ballistic Missile (SICBM) program at the Administration's request of $1,375.5 million because the SICBM is to be a critical component of the U.S. deterrent in the 1990's and delaying the program would significantly weaken that deterrent;

— delete the limitation and the allocated reduction for the Strategic Defense Initiative (SDI) and authorize the Initiative at the Administration's request of $5. 3 billion;

Title IV

— delete the ceiling on Department of Defense civilian end strength and the limit on obligations for civilian payroll costs both of which would infringe on the President's legal responsibility to manage the Federal workforce efficiently;

Title V

— delete the two provisions which were identified as being necessary to the implementation of Project IMPRINT (a proposed alternative to the CHAMPUS health care program) as premature and unjustified at this time. While Project IMPRINT has many positive aspects, the concept is not yet finalized; nor has it been formally coordinated within the Administration. The provisions in question need to be thoroughly clarified and reviewed before proceeding with statutory changes;

Title IX

— delete authority for a separate Department of Defense alternative personnel system for scientists, engineers, and acquisition personnel. Fragmented agency authority is unacceptable in view of the pending Administration bill that would permit an orderly expansion Government-wide of the China Lake concept to all agencies;

— delete the provision prohibiting the award of Department of Defense contracts in excess of $100,000 to firms controlled by foreign governments if the determination is made that the contract award would be inconsistent with U.S. foreign policy or national security objectives. As drafted, the provision would considerably complicate the procurement process, cause the violation of our international trade obligations and be difficult to implement;

Title X

— raise the threshold on minimum contract size for the Department of Defense under the Davis-Bacon Act from $250, 000 to $1 million in accordance with the President's recent decision, and change the word "projects" to "contracts" in the new paragraph under Section 1003 (a)(3);

Division B

— authorize 1988 and 1989 advance appropriations for the 10th Mountain Division at Ft. Drum, New York. This authorization will allow for a single construction contract award, which is anticipated to result in savings of more than $125 million;

— authorize a maintenance and support center at Andrews AFB and a support complex at the Anacostia Naval Station, both of which are vital projects of the highest priority; and

— authorize military construction at the Administration's request of $24.5 million for the Aircraft Refueling Project in Morocco in order to fulfill the United States obligations under its Memorandum of Understanding with Morocco, which was signed July 18, 1986.

In addition to the above-noted concerns, the Administration may seek to have certain features of the bill modified in conference to more closely conform to its request.