Defense

October 21, 2013

Shutdown cost DOD $600 million in productivity

Claudette Roulo
American Forces Press Service

Furloughs of civilian employees as a result of the government shutdown cost the Defense Department at least $600 million in productivity, the Pentagons top financial officer said Oct. 17.

During a Pentagon news conference, DOD Comptroller Robert F. Hale said that in addition to the lost productivity, the shutdown generated a number of other costs that have yet to be calculated.

We built up interest payments, because we were forced to pay vendors late, Hale said. We had to cancel training classes, so we had to bring the people home on orders and then send them right back again.

The short-term deal signed by President Barack Obama late yesterday doesnt put the department on firm budgetary ground, Hale noted. With no flexibility to move funds between accounts, and accounts frozen at 2012 levels, he said, the department will have to be as fiscally watchful as it can.

If that’s a vague answer, it’s because things are kind of vague, he said. It’s not a good way to run a railroad.

The temporary funding measure that allowed the government to reopen prevents DOD from starting new projects, Hale said. And one of the biggest problems, he added, is that it requires the department to buy the same ships it bought last year, because Congress appropriates by ship.

Its a ëGroundhog Day approach to budgeting, the comptroller said.

The budget uncertainty will have an impact on staffing levels and morale, he added. If the budget stays at the level authorized under the Budget Control Act of 2011, he said, were going to have to get smaller. Hale added that the department will try to meet the staffing goals through attrition, but that either way, it will mean fewer civilian employees.

I’m a lot more worried about the morale effects, Hale said. We need some stability, and we need to keep telling [employees] they’re important, and then we need to show it through things like pay raises and no more furloughs, etc.

Without a change to the budget, there will also be military force reductions, Hale said.

I think all of us are aware that it will be a somewhat different, smaller military if we have to go through with those cuts, he added. We will be as prepared as we can, within the limits of time that we have, to be ready for a wide range of contingencies, because we know that’s what we face.




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


 
 

 

Headlines March 27, 2015

News General Dynamics withdraws as T-100 prime contractor General Dynamics Information Systems and Technology has withdrawn itself as the prime contractor on the T-100, the offering for the T-X trainer replacement program based on the Alenia Aermacchi M-346 design.   Business SpaceX’s fight with U.S. Air Force called a clash of perceptions Billionaire Elon Musk’s...
 
 

News Briefs March 27, 2015

Contractor extradited from Iraq pleads guilty in bribes case A man extradited from Iraq in a military contract bribery case has pleaded guilty to three charges in an agreement with federal prosecutors. U.S. District Judge Thomas Rose has scheduled sentencing for July 1 for Metin Atilan. His attorney, Nick Gounaris, says the two sides agreed...
 
 

Ninth Boeing GPS IIF reaches orbit, sends first signals

Boeing Global Positioning System (GPS) IIF satellites are steadily replenishing the orbiting constellation, continuing to improve reliability and accuracy for users around the world. The ninth GPS IIF reached orbit about three hours, 20 minutes after launching today aboard a United Launch Alliance (ULA) Delta IV rocket from Cape Canaveral Air Force Station, Fla., and...
 

 

F-35 Lightning II costs drop, report shows

A recent account of F-35 Lightning II aircraft program costs shows decreases, the Air Force’s F-35 program executive officer told reporters in a media roundtable March 24, 2015. Lt. Gen. Christopher C. Bogdan, citing this year’s selected acquisition report on the aircraft, called the roundtable to clarify cost and performance facts. He also acknowledged the...
 
 
NG-growler2

Northrop Grumman delivers center/aft ‘shipset’ for first international EA-18G Growler

Northrop Grumman photograph Northrop Grumman mechanics perform final quality inspections on the center/aft fuselage shipset produced by the company for the first Australian EA-18G Growler. The subassembly will be delivered to B...
 
 
Navy photograph by Monica McCoy

Navy conducts production acceptance test of Tomahawk missile

Navy photograph by Monica McCoy Members of the Explosive Ordnance Disposal Technology Division team at Naval Surface Warfare Center, Indian Head prepare a Tomahawk missile for a functional ground test at the Large Motor Test Fa...
 




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=""> <strike> <strong>