Defense

January 11, 2013

Memo tells DOD components to plan for budget uncertainties

Jim Garamone
American Forces Press Service

Deputy Defense Secretary Ashton B. Carter has released a memo directing the services and defense agencies to begin planning for possible upcoming budget challenges.

The memo allows defense components to freeze civilian hiring, terminate temporary hires and reduce base operating funds. It also allows components to curtail travel, training and conferences and to curtail administrative expenses.

The memo – dated Jan. 10 – points to the threat of sequestration and the continued use of a continuing resolution as a way to fund the department. Sequestration was to have become effective Jan. 2, but Congress delayed its activation until March 1 to give lawmakers more time to come up with an alternative. It would impose major across-the-board spending cuts.

Since Congress did not approve an appropriations act for fiscal 2013, the Defense Department has been operating under a continuing resolution and will continue to do so at least through March 27. Because most operating funding was planned to increase from fiscal 2012 to fiscal 2013, but instead is being held at fiscal 2012 levels under the continuing resolution, funds will run short at current rates of expenditure if the continuing resolution continues through the end of the fiscal year in its current form, Carter wrote in the memo.

Given this budgetary uncertainty, the department must take steps now, the deputy secretary said.

I therefore authorize all Defense components to begin implementing measures that will help mitigate execution risks,î the memo reads. ìFor now, and to the extent possible, any actions taken must be reversible at a later date in the event that Congress acts to remove the risks. Ö The actions should be structured to minimize harmful effects on our people and on operations and unit readiness.

The memo allows components to review contracts and studies for possible cost savings, to cancel third- and fourth-quarter ship maintenance, and to examine ground and aviation depot-level maintenance. This last must be finished by Feb. 15.

It also calls on all research and development and production and contract modifications that obligate more than $500 million to be cleared with the undersecretary of defense for acquisition, technology and logistics before being awarded.

For science and technology accounts, the components must provide the undersecretary and the assistant secretary of defense for research and engineering with an assessment of the budgetary impacts that the budgetary uncertainty will cause to research priorities.




All of this week's top headlines to your email every Friday.


 
 

 

Headlines July 31, 2015

News: Carter: Military leaders could arm more troops at home – Following the recent fatal shooting of four Marines and a sailor in Tennessee, Defense Secretary Ash Carter is ordering the military services to consider new policies that would enhance security for troops at home, including potentially arming more personnel.   Business: DOD weighs supplier base,...
 
 

News Briefs July 31, 2015

U.S. delivering eight newer F-16 warplanes to Egypt The United States Embassy in Cairo says the U.S. is delivering eight newer F-16 warplanes to Egypt as part of an ongoing military support package. It says in a July 30 statement that the aircraft, of the current Block 52 production variant, will be flown in from...
 
 
Lockheed Martin photograph

Lockheed Martin successfully tests design changes for Orion spacecraft’s fairing separation system

Lockheed Martin photograph A protective panel for Orion’s service module is jettisoned during testing at Lockheed Martin’s Sunnyvale, California facility. This test series evaluated design changes to the spacecraft’s fair...
 

 

Australian company to provide parts for initial production of Triton UAS

Northrop Grumman has awarded the first Australian supplier contract for the U.S. Navy’s MQ-4C Triton unmanned aircraft system initial production lot to Ferra Engineering. Brisbane-based Ferra Engineering will manufacture mechanical sub-assemblies for the first four Triton air vehicles including structural components. “At Northrop Grumman it’s very important to not only develop...
 
 
Boeing photograph

CH-46 ‘Phrog’ makes its last hop

Boeing photograph The CH-46 Sea Knight helicopter commonly known as the “Phrog,” is set to retire and to be flown one last time by Reserve Marine Medium Helicopter Squadron (HMM) 774 on Aug. 1. The CH-46 Sea Knight is a med...
 
 

Insitu awarded LRIP Lot IV RQ-21A Blackjack Systems contract

Under the terms of its latest contract, Insitu will build six RQ-21A Blackjack systems for the U.S. Navy and Marine Corps. The $78-million Small Tactical Unmanned Aircraft Systems Lot IV Low Rate Initial Production contract is the latest event in the program’s progression toward the Initial Operational Test and Evaluation phase.   “This award will...
 




0 Comments


Be the first to comment!


Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>