Administration warns against base closing, outsourcing add-ons

As the Senate continues debate on the fiscal 2005 defense authorization bill, the White House released a Statement of Administration Policy Wednesday that raises the possibility of a veto if the bill delays the Pentagon's 2005 base closure process or contains any restrictions on competitive sourcing.

The Senate narrowly defeated an amendment Tuesday that would have delayed the next round of the base closure and realignment process until the Pentagon closes military installations overseas. The House version, awaiting floor action, would delay the next round. The White House statement said if the president "is presented a bill that weakens, delays, or repeals the BRAC authority, the secretary of Defense, joining with other senior advisors, would recommend that the president veto the bill."

The House version also calls for a pilot program to allow Pentagon employees to compete against contractors for new projects and for work now performed by private companies. It also extends competitive sourcing provisions in the fiscal 2004 Defense appropriations bill that force the Pentagon to let in-house employees form teams to compete when more than 10 jobs are at stake in a public-private contest. The White House statement threatened a veto recommendation if the bill includes provisions that would limit the Pentagon's flexibility on competitive sourcing, including mandates that department employees compete for work performed by contractors.

Sens. Edward Kennedy, D-Mass., and Saxby Chambliss, R-Ga., are considering offering an amendment to the Senate Defense authorization bill containing competitive sourcing language similar to that in the House version.

Senate Democrats prepared amendments aimed at improving healthcare and other benefits for National Guard and reserve members, although the White House policy statement indicated the administration would oppose some expanded benefits that could drain resources needed for wartime operations.

Democrats, led by Senate Minority Leader Tom Daschle, Sen. Patty Murray of Washington and Sen. Bill Nelson of Florida, said they plan to offer amendments that would ensure non-working spouses of National Guard and reservists do not incur prohibitive child care costs. Murray said they also will pursue language to provide pay equity for federal employees called to duty and tax credits to employers to encourage support for activated Guard and reserve members. Another provision would ensure that activated Guard and reserve troops can defer student loans during an extended deployment.

Murray added that the Family and Medical Leave Act must be extended to military families during long deployments, and that the GI Bill must be extended and updated to benefit Guard and reserve members to keep pace with the rising cost of education.

The Democratic proposals also would give permanent access for Guard and reserve members to the military's TRICARE health insurance program and ensure the families of Guard and reserve members deployed for extended periods could maintain their private healthcare plans. The Defense Department would be required to pay for the premiums associated with this coverage.

The White House statement urged lawmakers to oppose language that "would have the effect of restricting the department's flexibility and resources essential to successfully prosecute the war."

-- Amelia Gruber contributed to this report.