Defense acquisition reform bill makes strides on Capitol Hill

Measure threatens to cancel poorly performing weapons programs.

Bipartisan legislation to address the ballooning cost of Defense Department weapons system acquisitions is making progress in both chambers of Congress.

The Senate Armed Services Committee on Thursday unanimously sent the 2009 Weapon Systems Acquisition Reform Act (S. 454) with only minor changes to the floor for a vote. Reps. Ellen Tauscher, D-Calif., and John Spratt, D-S.C., got the ball rolling in the House by introducing companion legislation on Tuesday.

The measure -- originally drafted and introduced by Sens. Carl Levin, D-Mich., and John McCain, R-Ariz -- would require Defense to conduct preliminary design reviews before approving new acquisition programs, use more prototypes and install a new, independent director of cost assessment.

President Obama endorsed the bill on March 4, while ordering a governmentwide review of contracting practices. He said he wanted the measure passed quickly and asked Defense Secretary Robert Gates and Deputy Secretary William Lynn to work with Levin and McCain.

The bill also would tighten the requirements of the 1982 Nunn-McCurdy provision, which asks the Pentagon to cancel any weapons program experiencing cost overruns of more than 25 percent unless the department can prove the program is critical to national security and is the least expensive alternative available. Revised costs also must be reasonable.

During the Senate committee markup of the bill on Thursday, Levin said cost growth under Defense's major acquisition programs has "reached levels we cannot afford." He pointed to Government Accountability Office reports indicating that cumulative cost overruns on the largest defense contracts are nearing $300 billion.

"At a time when we are trying to restore the economy and find ways to reduce spending, or spend more efficiently, we have to rework how the Pentagon awards and monitors contracts," Tauscher said.

Levin acknowledged that some of the provisions will be "tough medicine," but said far-reaching action was necessary to combat the growing problem.