Air Force tanker lease deal approved at lower price

The House Armed Services Committee has changed the price tag for the controversial lease of Boeing 767 refueling tankers as part of the $425 billion fiscal 2005 defense authorization bill marked up Wednesday night.

Under an amendment by Rep. Jeff Miller, R-Fla., the committee rescored the lease proposal, giving the panel more budget authority for other programs. One of those programs would allow -- beginning in September 2005 -- survivors of deceased military personnel to benefit from 40 percent of the service member's salary after the age of 62. The amount would gradually increase to 55 percent after March 2008. Survivors currently benefit from 35 percent of the deceased's salary after the age of 62. The panel also would raise the cap on military private housing construction spending.

Another provision would add nearly $100 million and give a "fresh start" to the tanker program, House Armed Services Chairman Duncan Hunter, R-Calif., said.

Language in the bill reasserts the need for the Air Force to replace its aging fleet of KC-135 refueling tankers. The language would direct the Pentagon to establish an independent panel to observe renewed tanker negotiations and ensure the Air Force strikes a good deal. The bill also asserts that ongoing probes into allegations of wrongdoing in the Boeing tanker negotiations should not delay the deal. The Air Force proposal has been stalled by the investigations. The Defense Science Board, an advisory body to the Pentagon, reported this week that the need to replace the fleet is not as urgent as the Air Force claims.

Although the House committee's tanker language could breathe new life into the Air Force proposal, it likely sets the stage for a fight with the Senate Armed Services Committee in conference.

"The House language ignores an analysis of alternatives called for in last year's authorizing language and by Pentagon Acquisition Director Michael Wynne and the DSB," a Senate aide said. "It precludes such an analysis and predetermines the outcome in favor of the Boeing 767 before the study is even initiated."