A bill to authorize multiyear contracting for the C-17 aircraft program, and for other purposes.

Authorizes the Secretary of the Air Force to enter into one or more multiyear contracts for the procurement of not more than 80 C-17 aircraft. Permits the duration of such contracts to exceed five, but not seven, years.

Directs the Secretary, in deciding to enter into a multiyear contract for a period of less than seven years, to consider whether, within the shorter period: (1) sufficient procurement funding is provided; and (2) the contractor is capable of delivering the aircraft.

Requires that each contract include a clause that permits the Secretary to: (1) terminate the contract as of September 30, 1998, without a modification in the price of each aircraft and without incurring any obligation to pay the contractor termination costs; and (2) then enter into follow-on one-year contracts with the contractor for the procurement of C-17 aircraft at a negotiated price not exceeding the price negotiated before such date, for the annual production contract for the C-17 aircraft in lot VIII and subsequent lots.