Support for the National Defense Authorization Act for FY2003 (S 2514)

June 17, 2002

To Members of the United States Senate:

The U.S. Chamber of Commerce, the world's largest business federation, representing more than 3 million organizations of every size, sector, and region, urges you to support S. 2514, the National Defense Authorization Act for FY2003. We strongly believe this bipartisan measure is a positive step in the continuing efforts to address systemic quality of life, readiness, and modernization shortfalls confronting the services.

S.2514 addresses serious personnel issues by providing an across-the-board 4.1% military pay raise, with targeted increases of up to 6.5 percent for mid-grade and senior noncommissioned officers and mid-grade officers — as well as authorizing extensive health care improvements to take care of service members and their families. It also reduces out-of-pocket housing costs for military personnel by increasing housing allowances to cover 92.5 percent of all housing costs with the goal of completely eliminating costs by 2005.

To fix fundamental funding shortfalls in procurement and research and development areas, S. 2514 increases procurement accounts to $73.4 billion and it increases research and development accounts to $56.5 billion, which is $649 million more than the President's request. Both of these provisions are vital keystones to preserving U.S. military technological superiority. We applaud these needed increases, but agree with many military experts that procurement funding levels should be set far above the proposed $73.4 billion.

This bill reduces funding for ballistic missile defense by $812 million over the President's request to $6.8 billion. The Chamber supported H.R. 4546, the House passed authorization bill that called for spending $21 million more than the President's request for a total of $7.8 billion. The Pentagon must continue the national policy of implementing a missile defense system. Currently the United States remains defenseless against ballistic missiles and the rapidly evolving missile threats from rogue nations and terrorists. Fully funding ballistic missile defense sends a clear signal to our friends and allies that we are serious about protecting our national security interests.

The bill includes a provision we oppose that would expand the statutory definition of core logistics capabilities by adding acquisition logistics, supply management, system engineering and modification management to the current definition. This expansion would mandate that only government personnel on government-owned facilities could perform these functions, dramatically reducing thousands of private sector jobs and adversely impacting military readiness and weapon support programs.

In addition, we would strongly oppose any attempts to include language that would impose restraints and excessive reporting requirements on the contracting process within DoD. Just last month, the General Accounting Office Commercial Activities Panel presented to Congress its findings and recommendations on the current process used by the government to make sourcing decisions. While we understand the current process is in need of repair, including restrictive language before Congress has had a chance to properly review the panel report would be premature and counterproductive.

It is essential that we ensure our armed forces are able to protect America's global economic and political interests well into the 21st Century. Your support of this bipartisan measure will help ensure America's military capabilities are proportionate to its superpower responsibilities. Because of the importance of this issue to America's businesses, the U.S. Chamber of Commerce may consider using votes on S. 2514 in our annual "How They Voted" 2002 ratings.

Sincerely,

R. Bruce Josten
Executive Vice President, Government Affairs
U.S. Chamber of Commerce