We have received a number of e-mails asking for more information on the KC-X Tanker Recompete Act. Below is a summary of the Act, and you may also view the full text of HR 6426 on our documents site.
The bill introduced by Representative Todd Tiahrt (KS) in the House and by U.S. Senators Pat Roberts (KS) and Sam Brownback (KS) in the Senate, seeks to prohibit the use of any funds by DoD on the KC-X Tanker unless the Department of Defense chooses to outright award the KC-X tanker to the bidder whose protest of the February 29, 2008, was upheld or DoD decides to recomplete the KC-X contract using the KC-135 criteria.
This legislation would ensure that the following areas be considered in a recompetition:
Independent Cost Estimate - Ensures that an independent cost estimate is completed. The cost estimate shall include an estimate of (1) all costs borne by the suppliers; (2) all costs borne by foreign governments; (3) all costs borne by domestic suppliers (if the proposal involves any domestic suppliers); and (4) all costs covered by cost accounting standards under the Federal Acquisition Regulation.
Requirement to offset Illegal Subsidization – When conducting the cost or price evaluation of any proposal submitted by a subsidized person, increase the cost or price of the proposal by the amount of illegal subsidization.
Ensuring Fair Competition - Ensures that any covered contractor, foreign or domestic, for the contract, as part of the cost criteria, is evaluated both on the cost borne by the supplier and any cost borne by a foreign government that is not borne by a government (local, State, or Federal) in the United States.
National Security Considerations - It is the responsibility of the DoD to take into consideration the national security impacts, the industrial base impacts, and the economic impact to the United States of awarding contracts for critical capabilities to foreign entities.
Industrial Base Considerations - It is the responsibility of the DoD to take into consideration the industrial base impacts and the economic impact to the United States of awarding contracts involving critical jobs to foreign entities.
Loss of Employee Tax Revenue - It is the responsibility of the DoD to take into consideration the impact of lost personal income tax revenues to the United States, as a result of awarding defense contracts to foreign entities.
Loss of Corporate Tax Revenue - It is the responsibility of the DoD to take into consideration the impact of lost corporate tax revenues to the United States, as a result of awarding defense contracts to foreign entities.
Regulatory Burden - It is the responsibility of the DoD to take into consideration the impact of all regulations waived or that are not applicable with respect to foreign entities. These regulations include cost accounting standards, Buy America provisions, specialty metal provisions, the Foreign Corrupt Practices Acts, and compliance with the International Traffic in Arms Regulation.
Foreign Corrupt Practices Act - Requires that any contractor or subcontractor described in paragraph (2) that is not already covered by the Foreign Corrupt Practices Act shall be required, as a condition of the contract, to comply with the requirements of such Act.
Report Requirement - The Secretary of Defense shall submit to the congressional defense committees a report on compliance by the DoD with the provisions of this Act during the acquisition process for the award of a contract for a replacement for the KC-135 tanker. The report shall be submitted no later than the date of award of such contract.
[Update: Michelle Dunlop at HeraldNet beat us to the punch and reported on 27 June that Sen. Jeff Sessions (AL) put a hold on the Senate bill. This effectively stops the bill until a supermajority of 60 Senators frees it for further debate. ]