Conferees nearing an agreement on defense authorization

House and Senate conferees continue to trade proposals this week on the fiscal 2005 defense authorization conference report and are expected to file an agreement by Friday, according to aides.

Conferees are considering a compromise on a House proposal to delay by two years the upcoming round of military base closures. The Senate opposes the delay, which probably will not survive conference, though a compromise is being considered that would change the procedures the Pentagon uses for the base closure process.

Conferees also are working to strike a deal on House language that would require the Air Force to renegotiate a multi-billion contract with the Boeing for KC-767 tankers by March 1 next year. An aide said that deadline is likely to be pushed back or scrapped.

Sen. John McCain, R-Ariz., said the sentencing last Friday of a former top Air Force procurement official who approved an inflated price for the Boeing tankers in exchange for an executive job at the company "puts to rest any idea about completing a tanker deal," at least until the Pentagon reports on alternatives for the tanker and the military's aerial refueling needs.

McCain is a senior member of the Armed Services Committee and an opponent of the Air Force's plan to lease Boeing tankers. House Armed Services Chairman Duncan Hunter, R-Calif., supports the Pentagon's study of tanker alternatives beyond the first 100 KC-767s, but asserts the lease proposal for the first 100 planes would allow the Air Force to replace its aging fleet of KC-135 tankers more quickly and with less money up front -- money that he says could be spent on other weapons.