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 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>