Clinton to Sign DoD Bill

President Clinton this weekend said he would sign the 1998 Defense Department authorization bill, despite his concern about a provision of the bill regarding public-private competition for Defense depot maintenance work.

In a speech at McClellan Air Force base in California on Saturday, Clinton said a compromise worked out on the issue will make competition for the depot work "fair to both sides."

Current law requires 60 percent of depot work to be performed by federal employees, allowing private contractors to compete for the remaining 40 percent. President Clinton wanted the so-called 60/40 rule struck down, allowing competition for all depot work. The defense bill would strike a compromise, dropping the 60/40 restriction to a 50/50 split.

Originally, Clinton had threatened to veto the defense bill over the depot provision because it did not eliminate the public-private restriction. But on Saturday Clinton said Defense Secretary William Cohen had assured him that the 50/50 split is flexible enough to allow fair public-private competition. That means Clinton can make good on a campaign promise to "privatize-in-place" the depot work at McClellan and at Kelly Air Force Base in Texas. Clinton also pledged funds to help retrain workers who face layoffs at the bases and promised additional money to encourage private development.

Other provisions of the bill include:

• A reduction of active-duty military personnel by 20,000 in 1998--11,000 from the Navy and 9,000 from the Air Force.
• A 25 percent reduction in DoD headquarters management and support personnel. The department's acquisition workforce would be reduced by 25,000 positions in 1998, though the secretary of Defense is given permission to waive the cut.
• An extension of buyout authority for the department from Sept. 30, 1999 to Sept. 30, 2001.
• Incentives to retain aviators, nuclear-qualified officers, dentists and others in hard-to-keep professions.
• Several family-friendly provisions to improve benefits for military personnel and their families, including higher separation allowances when service members are stationed away from home, more money for family housing, $32 million for seven child development centers and increased funding for the Defense Health Program.
• Additional money for recruitment advertising.
• Army drill sergeant selection and training reform, including psychological screenings and a revised evaluation system.
• Permission for Defense agencies to bypass the Defense Automation and Printing Service for printing work.
• A requirement that 90 percent of purchases under $2,500 be made using government purchase cards by Oct. 1, 2000.
• $11.5 billion for Energy Department military programs, down $2.1 billion from the president's request.
• A measure allowing buyouts for Panama Canal Commission employees next year.