November 6, 1979
Page 31107
Mr. MUSKIE. Mr. President, during debate on H.R. 5359, the Defense appropriation bill for fiscal year 1980, an amendment was offered to the bill which had the effect of striking the so-called Maybank provision which precludes the award of defense contracts on a basis of relieving local economic problems.
I agree with the need for the Federal Government to use its economic influence to assist local areas in creating economic stability. For this purpose, we have the Small Business Administration, the Economic Development Administration, and various economic opportunity provisions in numerous Federal laws. I support all of these endeavors as they were specifically created to address the economic problems in question.
I could not support the attempt to repeal the Maybank provision because I believe repeal would do more harm than good to overall defense procurement policy and also increase defense costs.
Repeal of this provision would increase defense costs because no longer would a low bid for an item or services be a basis for award of contracts. Further, the ability of the Department of Defense to procure the best equipment and contractual services for the dollar could be severely restricted because the capability of contractors to perform work satisfactorily would not be a basis for contract award.
Mr. President, since price and contractor performance would no longer determine how defense contracts are awarded, the foundation of the competitive procurement process would be eroded. Further, the import of denying price and performance as a basis for awarding contracts could have a severe damaging effect on Maine's defense industry. Although Maine has a high unemployment rate, the repeal of the Maybank provision would not help areas of greatest unemployment in the State because those areas do not possess a high level of potential defense activity.
It is my view, and I believe a view shared by many in my State, that Maine's defense industry has repeatedly demonstrated the capability to obtain defense work on the basis of sound cost control and management capability and superior contractor performance. This should be the basis that determines award of defense activity.