Durbin and Harkin serve on the Senate Appropriations Committee.
The Illinois and Iowa Senators said funding would strengthen the Arsenal by lowering overhead rates and offsetting drastic fluctuations in workload levels, putting the Arsenal in a stronger position to bid for government contracts.
The senators said that over the last couple of years the Arsenal has cut costs by reducing its workforce, consolidating its manufacturing facilities and selling excess equipment. However, this year the Arsenal's workload is only 24 percent, making it difficult for the arsenal to compete against other bidders for contracts.
"The Rock Island Arsenal is a unique contractor that guarantees military readiness in times of need, but in times of peace the federal government must step up to help the arsenal remain competitive," said Durbin, a member of the Senate Defense Appropriations Subcommittee, said. "I applaud the work of our bipartisan group to ensure the Rock Island Arsenal remain competitive in the years to come."
"By helping to level the playing field for the Rock Island Arsenal to compete with private firms, our bipartisan plan will aid the long-term viability of the Arsenal and help save jobs in the Quad Cities," said Fitzgerald.
"This funding is good news for the Rock Island Arsenal and the people the Arsenal employs in the Quad Cities," said Harkin, a member of the Senate Defense Appropriations Subcommittee. "This will help the Arsenal compete on a level playing field."
"This is a positive first step towards leveling the playing field so that the Arsenal can accomplish its mission," said Grassley. "It is also a signal to the Administration that the bipartisan delegations are serious about preserving the Arsenal."
The senators, who worked with U.S. Reps. Lane Evans (D-IL) and Jim Leach (R-IA) in the U.S. House of Representatives and the Quad City Development group locally, said the Rock Island Arsenal is an important part of the nation's defense system because the Arsenal can respond quickly to specialty weapons and production needs that cannot be satisfied by private industry.
Last year the senators included a provision in the Fiscal Year (FY) 2000 defense appropriations bill to provide UPC funding for Rock Island in the future. Earlier this year, in a letter to President Clinton, they requested he include funding in his budget for the program. The President's budget provided $4.3 million.