Letter in Support of S. 2400

Honorable John Warner
United States Senate
Chairman
Senate Armed Services Committee
SR-228 Russell Senate Office Building
Washington, D.C. 20510

Dear Chairman Warner:

The U.S. Chamber of Commerce, the world's largest business federation, representing more than three million organizations of every size, sector, and region, strongly supports S. 2400, the National Defense Authorization Act for FY2005. We believe this $422.2 billion bipartisan measure is a positive step in the continuing efforts to address systemic quality of life, readiness, and modernization shortfalls confronting the services.

However, we strongly oppose any attempts to include language that would severely limit the ability of the Department of Defense to purchase products or services in a timely, costeffective manner. Protectionist measures, such as prohibiting or limiting the performance of government contracts at an overseas location or expanding Buy American laws, would dramatically increase costs and limit access to innovative solutions for our nation's military, and adversely impact the U.S. economy, American jobs and relationships with our trading partners. We also oppose any attempt to amend the A-76 process to limit the Defense Department's ability to make sound management decisions or place the private sector at a competitive disadvantage. It is critical that the government have the ability to conduct fair competitions and swiftly procure products and services as they see fit to improve performance, safety, security and efficiency.

In addition, S. 2400 addresses serious personnel issues by providing an across-the-board 3.5 percent military pay-raise. Military Quality of Life issues are a top priority of the Chamber and business community. This bill authorizes extensive health care improvements to take care of service members and their families and makes available an opportunity for all members of the Selected Reserve and their families to participate in TRICARE. In addition, this bill increases and makes permanent the family separation allowance to $250 a month, and increases and makes permanent the special rate of pay for duty subject to hostile fire or imminent danger to $225 a month.

To fix fundamental funding shortfalls in procurement and research and development areas, S. 2400 increases procurement accounts to $76.5 billion and it increases research and development accounts to $68.6 billion, which is $0.8 billion more than the President's request. These provisions are paramount for 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 $76.5 billion.

This bill authorizes $10.2 billion for ballistic missile defense research and development and procurement so that the Pentagon can 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 send a clear signal to our friends and allies that we are serious about protecting our national security interests.

It is essential that we ensure our armed forces are able to protect and preserve America's global economic and political interests well into the 21st Century. Your continued support of this bipartisan measure will help ensure America's military capabilities are prepared for the ongoing global war on terrorism. Because of the importance of this issue to America's businesses, the U.S. Chamber of Commerce may consider using votes on S. 2400 in our annual "How They Voted" 2004 ratings.

Sincerely,

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