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TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED MATTERS

P. L. 108-375

House Conference Report 108-767

SEC. 855. REQUIREMENTS RELATING TO SOURCE SELECTION FOR INTEGRATED SUPPORT OF AERIAL REFUELING AIRCRAFT FLEET FOR THE AIR FORCE.

For the selection of a provider of integrated support for the aerial refueling aircraft fleet in any acquisition of aerial refueling aircraft for the Air Force, the Secretary of the Air Force shall —

(1) before selecting the provider, perform all analyses required by law of —

     (A) the costs and benefits of —

(i) the alternative of using Federal Government personnel to provide such support; and

(ii) the alternative of using contractor personnel to provide such support;

     (B) the core logistics requirements;

     (C) use of performance-based logistics; and

     (D) the length of contract period; and

(2) select the provider in accordance with the procedures under the provisions of law referred to as the Competition in Contracting Act.  

The Senate amendment contained a provision (sec. 871) that would require the Secretary of Defense to prevent the Secretary of the Air Force from proceeding with the acquisition of aerial refueling aircraft, by lease or other contract, either with full and open competition or under section 135 of the national Defense Authorization Act for Fiscal Year 2004 (Public Law 108-136) until 60 days after the Secretary of Defense has reviewed applicable documentation and submitted a determination to the congressional defense committees that the acquisition is in compliance with all currently applicable laws, Office of management and Budget circulars, and regulations.  The provision would also require an independent review of the acquisition by the Comptroller general and the Inspector General of the Department of Defense.  The provision would also require operational testing prior to proceeding beyond low-rate initial production of the aircraft.  The provision would also require a competition for the integrated support of the aircraft, and require pricing information with respect to commercial items covered by the lease or contract.  The provision would also require the Secretary of the Air Force to contact the Inspector General of the Department of Defense to review and approve any Air Force use of non-Federal audit services for any lease or other contract for the acquisition of aerial refueling aircraft.

The House bill contained no similar provision. 

The House recedes with an amendment to require the Department to review the costs and benefits of using federal employees or contractors for the logistics support of any new tanker aircraft and, if the Air Force chooses to use a contractor for this support, that any such contract be conducted under the procedures of the Competition in Contracting Act.

The conferees understand that the Department is working on a new aerial refueling validated capabilities document in accordance with applicable Chairman of Joint Chiefs Instructions.  The conferees also note that on February 24, 2004, the Acting Undersecretary of Defense for Acquisition, Technology and Logistics directed the Secretary of the Air Force to conduct an analysis of alternatives (AOA) for recapitalizing the KC-135 fleet as required by section 134(b) of the national Defense Authorization Act for Fiscal Year 2004 (Public law 108-136), and that the Secretary of Defense has directed that this analysis, along with a completed aerial refueling portion of the mobility capabilities study be accelerated.  In addition, at the direction of the Secretary, the National Defense University, the Defense Science Board and the Department of Defense Inspector general prepared independent evaluations on various aspects of the aerial tanker refueling issue.  The conferees expect that the Secretary of Defense will fully consider all of the recommendations from these studies and reports prior to proceeding with the acquisition of aerial refueling aircraft for the Air Force.