C-17 AIRCRAFT PROGRAM PROGRESS PAYMENTS AND REPORTS.

SEC. 134. C-17 AIRCRAFT PROGRAM PROGRESS PAYMENTS AND REPORTS. (a) Withholding of Payments for Software Noncompliance.—In accepting further delivery of C-17 aircraft that in accordance with existing C-17 contracts require a waiver for software noncompliance, the Secretary of Defense shall withhold from the unliquidated portion of the progress payments for such aircraft an amount not less than 1 percent of the total cost of such aircraft. The withholding shall continue until the Secretary submits to each of the congressional committees named in subsection (e) a report in which the Secretary certifies each of the following: (1) That C-17 software testing and avionics integration have been completed. (2) That the costs of waivers for software noncompliance have been identified and are in accordance with the terms of existing C-17 contracts. (b) Correction of Wing Defects.—Within 120 days after the date of the enactment of this Act, the Secretary of Defense shall submit to each of the congressional committees named in subsection (e) a report in which the Secretary certifies that, in accordance with the terms of existing C-17 contracts, the contractor has identified and is bearing each of the following: (1) The costs related to wing structural deficiencies (including the costs of redesign, static wing failure repair, and retrofit for existing wing sets). (2) The costs for required redesign, retesting, and manufacture of C-17 slats and flaps to correct identified deficiencies. (c) Analysis of Range/Payload Deficiency.—Within 180 days after the date of the enactment of this Act, the Secretary of Defense shall submit to each of the congressional committees named in subsection (e) a report containing the following: (1) An analysis of the operational impacts caused by deficiencies in the range/payload specification, as defined by the C-17 Lot III production contract, including projected operational and maintenance costs, such as the costs of required airborne refueling due to range shortfalls. (2) A schedule for securing from the contractor, in accordance with the terms of existing C-17 contracts, an equitable recovery for the operational impacts caused by deficiencies in the range/payload specification identified in the analysis required by this section. (d) Report Contents.—Each report required by this section shall include an itemization of the estimated effect on total production costs caused by software noncompliance, wing defects, or range/payload deficiency, as applicable. 107 STAT. 1573 (e) Congressional Committees.—The committees of Congress to which a report required by this section is to be submitted are the following: (1) The Committees on Armed Services of the Senate and the House of Representatives. (2) The Committees on Appropriations of the Senate and the House of Representatives. (3) The Committee on Governmental Affairs of the Senate and the Committee on Government Operations of the House of Representatives.